WORKFORCE INVESTMENT ACT OF 1998
Public Law 105-220--Aug. 7, 1998 112 Stat. 936
Public Law 105-220
105th Congress
An Act
To consolidate, coordinate, and improve employment, training, literacy,
and vocational rehabilitation programs in the United States, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
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.
Chapter 1--State Provisions
Sec. 111. State workforce investment boards.
Sec. 112. State plan.
Chapter 2--Local Provisions
Sec. 116. Local workforce investment areas.
Sec. 117. Local workforce investment boards.
Sec. 118. Local plan.
Chapter 3--Workforce Investment Activities Providers
Sec. 121. Establishment of one-stop delivery systems.
Sec. 122. Identification of eligible providers of training services.
Sec. 123. Identification of eligible providers of youth activities.
Chapter 4--Youth Activities
Sec. 126. General authorization.
Sec. 127. State allotments.
Sec. 128. Within State allocations.
Sec. 129. Use of funds for youth activities.
Chapter 5--Adult and Dislocated Worker Employment and Training Activities
Sec. 131. General authorization.
Sec. 132. State allotments.
Sec. 133. Within State allocations.
Sec. 134. Use of funds for employment and training activities.
Chapter 6--General Provisions
Sec. 136. Performance accountability system.
Sec. 137. Authorization of appropriations.
Subtitle C--Job Corps
Sec. 141. Purposes.
Sec. 142. Definitions.
Sec. 143. Establishment.
Sec. 144. Individuals eligible for the Job Corps.
Sec. 145. Recruitment, screening, selection, and assignment of
enrollees.
Sec. 146. Enrollment.
Sec. 147. Job Corps centers.
Sec. 148. Program activities.
Sec. 149. Counseling and job placement.
Sec. 150. Support.
Sec. 151. Operating plan.
Sec. 152. Standards of conduct.
Sec. 153. Community participation.
Sec. 154. Industry councils.
Sec. 155. Advisory committees.
Sec. 156. Experimental, research, and demonstration projects.
Sec. 157. Application of provisions of Federal law.
Sec. 158. Special provisions.
Sec. 159. Management information.
Sec. 160. General provisions.
Sec. 161. Authorization of appropriations.
Subtitle D--National Programs
Sec. 166. Native American programs.
Sec. 167. Migrant and seasonal farmworker programs.
Sec. 168. Veterans' workforce investment programs.
Sec. 169. Youth opportunity grants.
Sec. 170. Technical assistance.
Sec. 171. Demonstration, pilot, multiservice, research, and multistate
projects.
Sec. 172. Evaluations.
Sec. 173. National emergency grants.
Sec. 174. Authorization of appropriations.
Subtitle E--Administration
Sec. 181. Requirements and restrictions.
Sec. 182. Prompt allocation of funds.
Sec. 183. Monitoring.
Sec. 184. Fiscal controls; sanctions.
Sec. 185. Reports; recordkeeping; investigations.
Sec. 186. Administrative adjudication.
Sec. 187. Judicial review.
Sec. 188. Nondiscrimination.
Sec. 189. Administrative provisions.
Sec. 190. Reference.
Sec. 191. State legislative authority.
Sec. 192. Workforce flexibility plans.
Sec. 193. Use of certain real property.
Sec. 194. Continuation of State activities and policies.
Sec. 195. General program requirements.
Subtitle F--Repeals and Conforming Amendments
Sec. 199. Repeals.
Sec. 199A. Conforming amendments.
TITLE II--ADULT EDUCATION AND LITERACY
Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Sec. 204. Home schools.
Sec. 205. Authorization of appropriations.
Subtitle A--Adult Education and Literacy Programs
Chapter 1--Federal Provisions
Sec. 211. Reservation; grants to eligible agencies; allotments.
Sec. 212. Performance accountability system.
Chapter 2--State Provisions
Sec. 221. State administration.
Sec. 222. State distribution of funds; matching requirement.
Sec. 223. State leadership activities.
Sec. 224. State plan.
Sec. 225. Programs for corrections education and other institutionalized
individuals.
Chapter 3--Local Provisions
Sec. 231. Grants and contracts for eligible providers.
Sec. 232. Local application.
Sec. 233. Local administrative cost limits.
Chapter 4--General Provisions
Sec. 241. Administrative provisions.
Sec. 242. National Institute for Literacy.
Sec. 243. National leadership activities.
Subtitle B--Repeals
Sec. 251. Repeals.
TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES
Subtitle A--Wagner-Peyser Act
Sec. 301. Definitions.
Sec. 302. Functions.
Sec. 303. Designation of State agencies.
Sec. 304. Appropriations.
Sec. 305. Disposition of allotted funds.
Sec. 306. State plans.
Sec. 307. Repeal of Federal advisory council.
Sec. 308. Regulations.
Sec. 309. Employment statistics.
Sec. 310. Technical amendments.
Sec. 311. Effective date.
Subtitle B--Linkages With Other Programs
Sec. 321. Trade Act of 1974.
Sec. 322. Veterans' employment programs.
Sec. 323. Older Americans Act of 1965.
Subtitle C--Twenty-First Century Workforce Commission
Sec. 331. Short title.
Sec. 332. Findings.
Sec. 333. Definitions.
Sec. 334. Establishment of Twenty-First Century Workforce Commission.
Sec. 335. Duties of the Commission.
Sec. 336. Powers of the Commission.
Sec. 337. Commission personnel matters.
Sec. 338. Termination of the Commission.
Sec. 339. Authorization of appropriations.
Subtitle D--Application of Civil Rights and Labor-Management Laws to the
Smithsonian Institution
Sec. 341. Application of civil rights and labor-management laws to the
Smithsonian Institution.
TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998
Sec. 401. Short title.
Sec. 402. Title.
Sec. 403. General provisions.
Sec. 404. Vocational rehabilitation services.
Sec. 405. Research and training.
Sec. 406. Professional development and special projects and
demonstrations.
Sec. 407. National Council on Disability.
Sec. 408. Rights and advocacy.
Sec. 409. Employment opportunities for individuals with disabilities.
Sec. 410. Independent living services and centers for independent living.
Sec. 411. Repeal.
Sec. 412. Helen Keller National Center Act.
Sec. 413. President's Committee on Employment of People With Disabilities.
Sec. 414. Conforming amendments.
TITLE V--GENERAL PROVISIONS
Sec. 501. State unified plan.
Sec. 502. Definitions for indicators of performance.
Sec. 503. Incentive grants.
Sec. 504. Privacy.
Sec. 505. Buy-American requirements.
Sec. 506. Transition provisions.
Sec. 507. Effective date.
TITLE I--WORKFORCE INVESTMENT SYSTEMS
Subtitle A--Workforce Investment Definitions
SEC. 101. DEFINITIONS.
In this title:
(1) Adult.--Except in sections 127 and 132, the term ``adult''
means an individual who is age 18 or older.
(2) Adult education; adult education and literacy activities.--
The terms ``adult education'' and ``adult education and literacy
activities'' have the meanings given the terms in section 203.
(3) Area vocational education school.--The term ``area
vocational education school'' has the meaning given the term in
section 521 of the Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2471).
(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) 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 program
participation and after job placement.
(6) 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) Community-based organization.--The term ``community-based
organization'' means a private nonprofit organization that is
representative of a community or a significant segment of a
community and that has demonstrated expertise and effectiveness in
the field of workforce investment.
(8) 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.
(9) Dislocated worker.--The term ``dislocated worker'' means an
individual who--
(A)(i) has been terminated or laid off, or who has received
a notice of termination or layoff, from employment;
(ii)(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), 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) has been terminated or laid off, or has received a
notice of termination or layoff, from employment as a result of
any permanent closure of, or any substantial layoff at, a
plant, facility, or enterprise;
(ii) is employed at a facility at which the employer has
made a general announcement that such facility will close
within 180 days; or
(iii) for purposes of eligibility to receive services other
than training services described in section 134(d)(4),
intensive services described in section 134(d)(3), or
supportive services, is employed at a facility at which the
employer has made a general announcement that such facility
will close;
(C) was self-employed (including employment as a farmer, a
rancher, or a fisherman) but is unemployed as a result of
general economic conditions in the community in which the
individual resides or because of natural disasters; or
(D) is a displaced homemaker.
(10) Displaced homemaker.--The term ``displaced homemaker''
means an individual who has been providing unpaid services to
family members in the home and who--
(A) has been dependent on the income of another family
member but is no longer supported by that income; and
(B) is unemployed or underemployed and is experiencing
difficulty in obtaining or upgrading employment.
(11) Economic development agencies.--The term ``economic
development agencies'' includes local planning and zoning
commissions or boards, community development agencies, and other
local agencies and institutions responsible for regulating,
promoting, or assisting in local economic development.
(12) 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);
(B) intensive services, means a provider who is identified
or awarded a contract as described in section 134(d)(3)(B);
(C) youth activities, means a provider who is awarded a
grant or contract in accordance with section 123; or
(D) other workforce investment activities, means a public
or private entity selected to be responsible for such
activities, such as a one-stop operator designated or certified
under section 121(d).
(13) Eligible youth.--Except as provided in subtitles C and D,
the term ``eligible youth'' means an individual who--
(A) is not less than age 14 and not more than age 21;
(B) is a low-income individual; and
(C) is an individual who is one or more of the following:
(i) Deficient in basic literacy skills.
(ii) A school dropout.
(iii) Homeless, a runaway, or a foster child.
(iv) Pregnant or a parent.
(v) An offender.
(vi) An individual who requires additional assistance
to complete an educational program, or to secure and hold
employment.
(14) 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) 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) Governor.--The term ``Governor'' means the chief executive
of a State.
(17) 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.
(18) Labor market area.--The term ``labor market area'' means
an economically integrated geographic area within which individuals
can reside and find employment within a reasonable distance or can
readily change employment without changing their place of
residence. Such an area shall be identified in accordance with
criteria used by the Bureau of Labor Statistics of the Department
of Labor in defining such areas or similar criteria established by
a Governor.
(19) Literacy.--The term ``literacy'' has the meaning given the
term in section 203.
(20) Local area.--The term ``local area'' means a local
workforce investment area designated under section 116.
(21) Local board.--The term ``local board'' means a local
workforce investment board established under section 117.
(22) Local performance measure.--The term ``local performance
measure'' means a performance measure established under section
136(c).
(23) Local educational agency.--The term ``local educational
agency'' has the meaning given the term in section 14101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
(24) Lower living standard income level.--The term ``lower
living standard income level'' means that income level (adjusted
for regional, metropolitan, urban, and rural differences and family
size) determined annually by the Secretary based on the most recent
lower living family budget issued by the Secretary.
(25) Low-income individual.--The term ``low-income individual''
means an individual who--
(A) receives, or is a member of a family that receives,
cash payments under a Federal, State, or local income-based
public assistance program;
(B) received an income, or is a member of a family that
received a total family income, for the 6-month period prior to
application for the program involved (exclusive of unemployment
compensation, child support payments, payments described in
subparagraph (A), and old-age and survivors insurance benefits
received under section 202 of the Social Security Act (42
U.S.C. 402)) that, in relation to family size, does not exceed
the higher of--
(i) the poverty line, for an equivalent period; or
(ii) 70 percent of the lower living standard income
level, for an equivalent period;
(C) is a member of a household that receives (or has been
determined within the 6-month period prior to application for
the program involved to be eligible to receive) food stamps
pursuant to the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
(D) qualifies as a homeless individual, as defined in
subsections (a) and (c) of section 103 of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11302);
(E) is a foster child on behalf of whom State or local
government payments are made; or
(F) 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) 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) 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) Older individual.--The term ``older individual'' means an
individual age 55 or older.
(29) One-stop operator.--The term ``one-stop operator'' means 1
or more entities designated or certified under section 121(d).
(30) One-stop partner.--The term ``one-stop partner'' means--
(A) an entity described in section 121(b)(1); 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) On-the-job training.--The term ``on-the-job training''
means training by an employer that is provided to a paid
participant while engaged in productive work in a job that--
(A) provides knowledge or skills essential to the full and
adequate performance of the job;
(B) provides reimbursement to the employer of up to 50
percent of the wage rate of the participant, for the
extraordinary costs of providing the training and additional
supervision related to the training; and
(C) is limited in duration as appropriate to the occupation
for which the participant is being trained, taking into account
the content of the training, the prior work experience of the
participant, and the service strategy of the participant, as
appropriate.
(32) Outlying area.--The term ``outlying area'' means the
United States Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, the Republic of the
Marshall Islands, the Federated States of Micronesia, and the
Republic of Palau.
(33) Out-of-school youth.--The term ``out-of-school youth''
means--
(A) an eligible youth who is a school dropout; or
(B) an eligible youth who has received a secondary school
diploma or its equivalent but is basic skills deficient,
unemployed, or underemployed.
(34) 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) Postsecondary educational institution.--The term
``postsecondary educational institution'' means an institution of
higher education, as defined in section 481 of the Higher Education
Act of 1965 (20 U.S.C. 1088).
(36) 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(2))) applicable to a
family of the size involved.
(37) Public assistance.--The term ``public assistance'' means
Federal, State, or local government cash payments for which
eligibility is determined by a needs or income test.
(38) Rapid response activity.--The term ``rapid response
activity'' means an activity provided by a State, or by an entity
designated by a State, with funds provided by the State under
section 134(a)(1)(A), in the case of a permanent closure or mass
layoff at a plant, facility, or enterprise, or a natural or other
disaster, that results in mass job dislocation, in order to assist
dislocated workers in obtaining reemployment as soon as possible,
with services including--
(A) the establishment of onsite contact with employers and
employee representatives--
(i) immediately after the State is notified of a
current or projected permanent closure or mass layoff; or
(ii) in the case of a disaster, immediately after the
State is made aware of mass job dislocation as a result of
such disaster;
(B) the provision of information and access to available
employment and training activities;
(C) assistance in establishing a labor-management
committee, voluntarily agreed to by labor and management, with
the ability to devise and implement a strategy for assessing
the employment and training needs of dislocated workers and
obtaining services to meet such needs;
(D) the provision of emergency assistance adapted to the
particular closure, layoff, or disaster; and
(E) the provision of assistance to the local community in
developing a coordinated response and in obtaining access to
State economic development assistance.
(39) 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) Secondary school.--The term ``secondary school'' has the
meaning given the term in section 14101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8801).
(41) Secretary.--The term ``Secretary'' means the Secretary of
Labor, and the term means such Secretary for purposes of section
503.
(42) 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) 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).
(44) State board.--The term ``State board'' means a State
workforce investment board established under section 111.
(45) State performance measure.--The term ``State performance
measure'' means a performance measure established under section
136(b).
(46) 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) 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) Unit of general local government.--The term ``unit of
general local 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) Veteran; related definition.--
(A) Veteran.--The term ``veteran'' means an individual who
served in the active military, naval, or air service, and who
was discharged or released from such service under conditions
other than dishonorable.
(B) Recently separated veteran.--The term ``recently
separated veteran'' means any veteran who applies for
participation under this title within 48 months after the
discharge or release from active military, naval, or air
service.
(50) Vocational education.--The term ``vocational education''
has the meaning given the term in section 521 of the Carl D.
Perkins Vocational and Applied Technology Education Act (20 U.S.C.
2471).
(51) Workforce investment activity.--The term ``workforce
investment activity'' means an employment and training activity,
and a youth activity.
(52) Youth activity.--The term ``youth activity'' means an
activity described in section 129 that is carried out for eligible
youth (or as described in section 129(c)(5)).
(53) Youth council.--The term ``youth council'' means a council
established under section 117(h).
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.
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 policymaking 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.
(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).
(c) Chairman.--The Governor shall select a chairperson for the
State Board from among the representatives described in subsection
(b)(1)(C)(i).
(d) Functions.--The State Board shall assist the Governor in--
(1) development of the State plan;
(2) development and continuous improvement of a statewide
system of activities that are funded under this subtitle or carried
out through a one-stop delivery system described in section 134(c)
that receives funds under this subtitle (referred to in this title
as a ``statewide workforce investment system''), including--
(A) development of linkages in order to assure coordination
and nonduplication among the programs and activities described
in section 121(b); and
(B) review of local plans;
(3) commenting at least once annually on the measures taken
pursuant to section 113(b)(14) of the Carl D. Perkins Vocational
and Applied Technology Education Act (20 U.S.C 2323(b)(14));
(4) designation of local areas as required in section 116;
(5) development of allocation formulas for the distribution of
funds for adult employment and training activities and youth
activities to local areas as permitted under sections 128(b)(3)(B)
and 133(b)(3)(B);
(6) development and continuous improvement of comprehensive
State performance measures, including State adjusted levels of
performance, to assess the effectiveness of the workforce
investment activities in the State as required under section
136(b);
(7) preparation of the annual report to the Secretary described
in section 136(d);
(8) development of the statewide employment statistics system
described in section 15(e) of the Wagner-Peyser Act; and
(9) development of an application for an incentive grant under
section 503.
(e) Alternative Entity.--
(1) In general.--For purposes of complying with subsections
(a), (b), and (c), a State may use any State entity (including a
State council, State workforce development board, combination of
regional workforce development boards, or similar entity) that--
(A) was in existence on December 31, 1997;
(B)(i) was established pursuant to section 122 or title VII
of the Job Training Partnership Act, as in effect on December
31, 1997; or
(ii) is substantially similar to the State board described
in subsections (a), (b), and (c); and
(C) includes representatives of business in the State and
representatives of labor organizations in the State.
(2) References.--References in this Act to a State board shall
be considered to include such an entity.
(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 prior to submission of the plan, information
regarding membership, and, on request, minutes of formal meetings of
the State board.
SEC. 112. STATE PLAN.
(a) In General.--For a State to be eligible to receive an allotment
under section 127 or 132, or to receive financial assistance under the
Wagner-Peyser Act (29 U.S.C. 49 et seq.), the Governor of the State
shall submit to the Secretary for consideration by the Secretary, a
single State plan (referred to in this title as the ``State plan'')
that outlines a 5-year strategy for the statewide workforce investment
system of the State and that meets the requirements of section 111 and
this section.
(b) Contents.--The State plan shall include--
(1) 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);
(2) a description of State-imposed requirements for the
statewide workforce investment system;
(3) a description of the State performance accountability
system developed for the workforce investment activities to be
carried out through the statewide workforce investment system, that
includes information identifying State performance measures as
described in section 136(b)(3)(A)(ii);
(4) information describing--
(A) the needs of the State with regard to current and
projected employment opportunities, by occupation;
(B) the job skills necessary to obtain such employment
opportunities;
(C) the skills and economic development needs of the State;
and
(D) the type and availability of workforce investment
activities in the State;
(5) an identification of local areas designated in the State,
including a description of the process used for the designation of
such areas;
(6) an identification of criteria to be used by chief elected
officials for the appointment of members of local boards based on
the requirements of section 117;
(7) the detailed plans required under section 8 of the Wagner-Peyser
Act (29 U.S.C. 49g);
(8)(A) a description of the procedures that will be taken by
the State to assure coordination of and avoid duplication among--
(i) workforce investment activities authorized under this
title;
(ii) other activities authorized under this title;
(iii) programs authorized under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.), title II of this Act, title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.),
and section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(4)), activities authorized under title V of the
Older Americans Act of 1965 (42 U.S.C. 3056 et seq.), and
postsecondary vocational education activities authorized under
the Carl D. Perkins Vocational and Applied Technology Education
Act (20 U.S.C. 2301 et seq.);
(iv) work programs authorized under section 6(o) of the
Food Stamp Act of 1977 (7 U.S.C. 2015(o));
(v) activities authorized under chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
(vi) activities authorized under chapter 41 of title 38,
United States Code;
(vii) employment and training activities carried out under
the Community Services Block Grant Act (42 U.S.C. 9901 et
seq.);
(viii) activities authorized under the National and
Community Service Act of 1990 (42 U.S.C. 12501 et seq.);
(ix) employment and training activities carried out by the
Department of Housing and Urban Development; and
(x) programs authorized under State unemployment
compensation laws (in accordance with applicable Federal law);
and
(B) a description of the common data collection and reporting
processes used for the programs and activities described in
subparagraph (A);
(9) a description of the process used by the State, consistent
with section 111(g), to provide an opportunity for public comment,
including comment by representatives of businesses and
representatives of labor organizations, and input into development
of the plan, prior to submission of the plan;
(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;
(11) assurances that the State will provide, in accordance with
section 184 for fiscal control and fund accounting procedures that
may be necessary to ensure the proper disbursement of, and
accounting for, funds paid to the State through the allotments made
under sections 127 and 132;
(12)(A) a description of the methods and factors the State will
use in distributing funds to local areas for youth activities and
adult employment and training activities under sections
128(b)(3)(B) and 133(b)(3)(B), including--
(i) a description of how the individuals and entities
represented on the State board were involved in determining
such methods and factors of distribution; and
(ii) a description of how the State consulted with chief
elected officials in local areas throughout the State in
determining such distribution;
(B) assurances that the funds will be distributed equitably
throughout the State, and that no local areas will suffer
significant shifts in funding from year to year; and
(C) a description of the formula prescribed by the Governor
pursuant to section 133(b)(2)(B) for the allocation of funds to
local areas for dislocated worker employment and training
activities;
(13) information specifying the actions that constitute a
conflict of interest prohibited in the State for purposes of
sections 111(f) and 117(g);
(14) with respect to the one-stop delivery systems described in
section 134(c) (referred to individually in this title as a ``one-
stop delivery system''), a description of the strategy of the State
for assisting local areas in development and implementation of
fully operational one-stop delivery systems in the State;
(15) 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 customized training), as required under section
122; and
(iv) how the State will serve the employment and
training needs of dislocated workers (including displaced
homemakers), low-income individuals (including recipients
of public assistance), individuals training for
nontraditional employment, and other individuals with
multiple barriers to employment (including older
individuals and individuals with disabilities); and
(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;
(B) identifying the criteria to be used by local boards in
awarding grants for youth activities, including criteria that
the Governor and local boards will use to identify effective
and ineffective youth activities and providers of such activities;
(C) describing how the State will coordinate the youth
activities carried out in the State under section 129 with the
services provided by Job Corps centers in the State (where such
centers exist); and
(D) describing how the State will coordinate youth activities
described in subparagraph (C) with activities carried out
through the youth opportunity grants under section 169.
(c) Plan Submission and Approval.--A State plan submitted to the
Secretary under this section by a Governor shall be considered to be
approved by the Secretary at the end of the 90-day period beginning on
the day the Secretary receives the plan, unless the Secretary makes a
written determination, during the 90-day period, that--
(1) the plan is inconsistent with the provisions of this title; and
(2) in the case of the portion of the plan described in section 8(a) of
the Wagner-Peyser Act (29 U.S.C. 49g(a)), the portion does not satisfy
the criteria for approval provided in section 8(d) of such Act.
(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 covered by the plan.
CHAPTER 2--LOCAL PROVISIONS
SEC. 116. LOCAL WORKFORCE INVESTMENT AREAS.
(a) Designation of Areas.--
(1) In general.--
(A) Process.--Except as provided in subsection (b), and
consistent with paragraphs (2), (3), and (4), in 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.
(2) Automatic designation.--The Governor shall approve any
request for designation as a local area--
(A) from any unit of general local government with a
population of 500,000 or more;
(B) of the area served by a rural concentrated employment
program grant recipient of demonstrated effectiveness that
served as a service delivery area or substate area under the
Job Training Partnership Act, if the grant recipient has
submitted the request; and
(C) of an area that served as a service delivery area under
section 101(a)(4)(A)(ii) of the Job Training Partnership Act
(as in effect on the day before the date of enactment of this Act)
in a State that has a population of not more than 1,100,000
and a population density greater than 900 persons per
square mile.
(3) Temporary and subsequent designation.--
(A) Criteria.--Notwithstanding paragraph (2)(A), the
Governor shall approve any request, made not later than the
date of submission of the initial State plan under this
subtitle, for temporary designation as a local area from any
unit of general local government (including a combination of
such units) with a population of 200,000 or more that was a
service delivery area under the Job Training Partnership Act on
the day before the date of enactment of this Act if the
Governor determines that the area--
(i) performed successfully, in each of the last 2 years
prior to the request for which data are available, in the
delivery of services to participants under part A of title
II and title III of the Job Training Partnership Act (as in
effect on such day); and
(ii) has sustained the fiscal integrity of the funds
used by the area to carry out activities under such part
and title.
(B) Duration and subsequent designation.--A temporary
designation under this paragraph shall be for a period of not
more than 2 years, after which the designation shall be
extended until the end of the period covered by the State plan
if the Governor determines that, during the temporary
designation period, the area substantially met (as defined by
the State board) the local performance measures for the local
area and sustained the fiscal integrity of the funds used by
the area to carry out activities under this subtitle.
(C) Technical assistance.--The Secretary shall provide the
States with technical assistance in making the determinations
required by this paragraph. The Secretary shall not issue
regulations governing determinations to be made under this
paragraph.
(D) Performed successfully.--In this paragraph, the term
``performed successfully'' means that the area involved met or
exceeded the performance standards for activities administered
in the area that--
(i) are established by the Secretary for each year and
modified by the adjustment methodology of the State (used
to account for differences in economic conditions,
participant characteristics, and combination of services
provided from the combination assumed for purposes of the
established standards of the Secretary); and
(ii)(I) if the area was designated as both a service
delivery area and a substate area under the Job Training
Partnership Act (as in effect on the day before the date of
enactment of this Act)--
(aa) relate to job retention and earnings, with respect
to activities carried out under part A of title II of
such Act (as in effect on such day); or
(bb) relate to entry into employment, with respect
to activities carried out under title III of such Act
(as in effect on such day);
(II) if the area was designated only as a service
delivery area under such Act (as in effect on such day),
relate to the standards described in subclause (I)(aa); or
(III) if the area was only designated as a substate
area under such Act (as in effect on such day), relate to
the standards described in subclause (I)(bb).
(E) Sustained the fiscal integrity.--In this paragraph, the
term ``sustained the fiscal integrity'', used with respect to
funds used by a service delivery area or local area, means that
the Secretary has not made a final determination during any of
the last 3 years for which data are available, prior to the
date of the designation request involved, that either the grant
recipient or the administrative entity of the area misexpended
the funds due to willful disregard of the requirements of the Act
involved, gross negligence, or failure to observe accepted
standards of administration.
(4) Designation on recommendation of state board.--The Governor
may approve a request from any unit of general local government
(including a combination of such units) for designation (including
temporary designation) as a local area if the State board
determines, taking into account the factors described in clauses
(i) through (v) of paragraph (1)(B), and recommends to the
Governor, that such area should be so designated.
(5) Appeals.--A unit of general local government (including a
combination of such units) or grant recipient that requests but is
not granted designation of an area as a local area under paragraph
(2) or (3) may submit an appeal to the State board under an appeal
process established in the State plan. If the appeal does not
result in such a designation, the Secretary, after receiving a
request for review from the unit or grant recipient and on
determining that the unit or grant recipient was not accorded
procedural rights under the appeal process established in the State
plan or that the area meets the requirements of paragraph (2) or
(3), as appropriate, may require that the area be designated as a
local area under such paragraph.
(b) Small States.--The Governor of any State that was a single
State service delivery area under the Job Training Partnership Act as
of July 1, 1998, may designate the State as a single State local area
for the purposes of this title. In the case of such a designation, the
Governor shall identify the State as a local area under section 112(b)(5).
(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.
(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, 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.
(4) Interstate regions.--Two or more States that contain an
interstate region that is a labor market area, economic development
region, or other appropriate contiguous subarea of the States may
designate the area as a designated region for purposes of this
subsection, and jointly exercise the State functions described in
paragraphs (1) through (3).
(5) Definitions.--In this subsection:
(A) Designated region.--The term ``designated region''
means a combination of local areas that are partly or
completely in a single labor market area, economic development
region, or other appropriate contiguous subarea of a State, that is
designated by the State, except as provided in paragraph (4).
(B) Local board for a designated region.--The term ``local
board for a designated region'' means a local board for a local
area in a designated region.
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 policymaking or
hiring authority;
(II) represent businesses with employment
opportunities that reflect the employment opportunities
of 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;
(iii) representatives of labor organizations (for a
local area in which employees are represented by labor
organizations), nominated by local labor federations, or
(for a local area in which no employees are represented by
such organizations), other representatives of employees;
(iv) representatives of community-based organizations
(including organizations representing individuals with
disabilities and veterans, for a local area in which such
organizations are present);
(v) representatives of economic development agencies,
including private sector economic development entities; and
(vi) representatives of each of the one-stop partners;
and
(B) may include such other individuals or representatives
of entities as the chief elected official in the local area may
determine to be appropriate.
(3) Authority 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.
(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).
(c) Appointment and Certification of Board.--
(1) Appointment of board members and assignment of
responsibilities.--
(A) In general.--The chief elected official in a local area
is authorized to appoint the members of the local board for
such area, in accordance with the State criteria established
under subsection (b).
(B) Multiple units of local government in area.--
(i) In general.--In a case in which a local area
includes more than 1 unit of general local government, the
chief elected officials of such units may execute an
agreement that specifies the respective roles of the
individual chief elected officials--
(I) in the appointment of the members of the local
board from the individuals nominated or recommended to
be such members in accordance with the criteria
established under subsection (b); and
(II) in carrying out any other responsibilities
assigned to such officials under this subtitle.
(ii) Lack of agreement.--If, after a reasonable effort,
the chief elected officials are unable to reach agreement
as provided under clause (i), the Governor may appoint the
members of the local board from individuals so nominated or
recommended.
(C) Concentrated employment programs.--In the case of a
local area designated in accordance with section 116(a)(2)(B),
the governing body of the concentrated employment program
involved shall act in consultation with the chief elected
official in the local area to appoint members of the local
board, in accordance with the State criteria established under
subsection (b), and to carry out any other responsibility
relating to workforce investment activities assigned to such
official under this Act.
(2) Certification.--
(A) In general.--The Governor shall, once every 2 years,
certify 1 local board for each local area in the State.
(B) Criteria.--Such certification shall be based on
criteria established under subsection (b) and, for a second or
subsequent certification, the extent to which the local board
has ensured that workforce investment activities carried out in
the local area have enabled the local area to meet the local
performance measures.
(C) Failure to achieve certification.--Failure of a local
board to achieve certification shall result in reappointment
and certification of another local board for the local area
pursuant to the process described in paragraph (1) and this
paragraph.
(3) Decertification.--
(A) Fraud, abuse, failure to carry out functions.--
Notwithstanding paragraph (2), the Governor may decertify a
local board, at any time after providing notice and an
opportunity for comment, for--
(i) fraud or abuse; or
(ii) failure to carry out the functions specified for
the local board in any of paragraphs (1) through (7) of
subsection (d).
(B) Nonperformance.--Notwithstanding paragraph (2), the
Governor may decertify a local board if a local area fails to
meet the local performance measures for such local area for 2
consecutive program years (in accordance with section 136(h)).
(C) Plan.--If the Governor decertifies a local board for a
local area under subparagraph (A) or (B), the Governor may
require that a new local board be appointed and certified for
the local area pursuant to a reorganization plan developed by
the Governor, in consultation with the chief elected official
in the local area, and in accordance with the criteria
established under subsection (b).
(4) Single state area.--Notwithstanding subsection (b) and
paragraphs (1) and (2), if a State described in section 116(b)
indicates in the State plan that the State will be treated as a
local area for purposes of the application of this title, the
Governor may designate the State board to carry out any of the
functions described in subsection (d).
(d) Functions of Local Board.--The functions of the local board
shall include the following:
(1) Local plan.--Consistent with section 118, each local board,
in partnership with the chief elected official for the local area
involved, shall develop and submit a local plan to the Governor.
(2) Selection of operators and providers.--
(A) Selection of one-stop operators.--Consistent with
section 121(d), the local board, with the agreement of the
chief elected official--
(i) shall designate or certify one-stop operators as
described in section 121(d)(2)(A); and
(ii) may terminate for cause the eligibility of such
operators.
(B) Selection of youth providers.--Consistent with section
123, the local board shall identify eligible providers of youth
activities in the local area by awarding grants or contracts on
a competitive basis, based on the recommendations of the youth
council.
(C) Identification of eligible providers of training
services.--Consistent with section 122, the local board shall
identify eligible providers of training services described in
section 134(d)(4) in the local area.
(D) Identification of eligible providers of intensive
services.--If the one-stop operator does not provide intensive
services in a local area, the local board shall identify
eligible providers of intensive services described in section
134(d)(3) in the local area by awarding contracts.
(3) Budget and administration.--
(A) Budget.--The local board shall develop a budget for the
purpose of carrying out the duties of the local board under
this section, subject to the approval of the chief elected
official.
(B) Administration.--
(i) Grant recipient.--
(I) In general.--The chief elected official in a
local area shall serve as the local grant recipient
for, and shall be liable for any misuse of, the grant
funds allocated to the local area under sections 128
and 133, unless the chief elected official reaches an
agreement with the Governor for the Governor to act as
the local grant recipient and bear such liability.
(II) Designation.--In order to assist in the
administration of the grant funds, the chief elected
official or the Governor, where the Governor serves as
the local grant recipient for a local area, may
designate an entity to serve as a local grant
subrecipient for such funds or as a local fiscal agent.
Such designation shall not relieve the chief elected
official or the Governor of the liability for any
misuse of grant funds as described in subclause (I).
(III) Disbursal.--The local grant recipient or an
entity designated under subclause (II) shall disburse
such funds for workforce investment activities at the
direction of the local board, pursuant to the
requirements of this title, if the direction does not
violate a provision of this Act. The local grant
recipient or entity designated under subclause (II)
shall disburse the funds immediately on receiving such
direction from the local board.
(ii) Staff.--The local board may employ staff.
(iii) Grants and donations.--The local board may
solicit and accept grants and donations from sources other
than Federal funds made available under this Act.
(4) Program oversight.--The local board, in partnership with
the chief elected official, shall conduct oversight with respect to
local programs of youth activities authorized under section 129,
local employment and training activities authorized under section
134, and the one-stop delivery system in the local area.
(5) Negotiation of local performance measures.--The local
board, the chief elected official, and the Governor shall negotiate
and reach agreement on local performance measures as described in
section 136(c).
(6) Employment statistics system.--The local board shall assist
the Governor in developing the statewide employment statistics
system described in section 15(e) of the Wagner-Peyser Act.
(7) Employer linkages.--The local board shall coordinate the
workforce investment activities authorized under this subtitle and
carried out in the local area with economic development strategies
and develop other employer linkages with such activities.
(8) Connecting, brokering, and coaching.--The local board shall
promote the participation of private sector employers in the
statewide workforce investment system and ensure the effective
provision, through the system, of connecting, brokering, and
coaching activities, through intermediaries such as the one-stop
operator in the local area or through other organizations, to
assist such employers in meeting hiring needs.
(e) Sunshine Provision.--The local board shall make available to
the public, on a regular basis through open meetings, information
regarding the activities of the local board, including information
regarding the local plan prior to submission of the plan, and regarding
membership, the designation and certification of one-stop operators,
and the award of grants or contracts to eligible providers of youth
activities, and on request, minutes of formal meetings of the local
board.
(f) Limitations.--
(1) Training services.--
(A) In general.--Except as provided in subparagraph (B), no
local board may provide training services described in section
134(d)(4).
(B) Waivers of training prohibition.--The Governor of the
State in which a local board is located may, pursuant to a
request from the local board, grant a written waiver of the
prohibition set forth in subparagraph (A) (relating to the
provision of training services) for a program of training
services, if the local board--
(i) submits to the Governor a proposed request for the
waiver that includes--
(I) satisfactory evidence that there is an
insufficient number of eligible providers of such a
program of training services to meet local demand in
the local area;
(II) information demonstrating that the board meets
the requirements for an eligible provider of training
services under section 122; and
(III) information demonstrating that the program of
training services prepares participants for an
occupation that is in demand in the local area;
(ii) makes the proposed request available to eligible
providers of training services and other interested members
of the public for a public comment period of not less than
30 days; and
(iii) includes, in the final request for the waiver,
the evidence and information described in clause (i) and
the comments received pursuant to clause (ii).
(C) Duration.--A waiver granted to a local board under
subparagraph (B) shall apply for a period of not to exceed 1
year. The waiver may be renewed for additional periods of not
to exceed 1 year, pursuant to requests from the local board, if
the board meets the requirements of subparagraph (B) in making
the requests.
(D) Revocation.--The Governor may revoke a waiver granted
under this paragraph during the appropriate period described in
subparagraph (C) if the State determines that the local board
involved has engaged in a pattern of inappropriate referrals to
training services operated by the local board.
(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.
(3) Limitation on authority.--Nothing in this Act shall be
construed to provide a local board with the authority to mandate
curricula for schools.
(g) Conflict of Interest.--A member of a local board may not--
(1) vote on a matter under consideration by the local 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.
(h) Youth Council.--
(1) Establishment.--There shall be established, as a subgroup
within each local board, a youth council appointed by the local
board, in cooperation with the chief elected official for the local
area.
(2) Membership.--The membership of each youth council--
(A) shall include--
(i) members of the local board described in
subparagraph (A) or (B) of subsection (b)(2) with special
interest or expertise in youth policy;
(ii) representatives of youth service agencies,
including juvenile justice and local law enforcement
agencies;
(iii) representatives of local public housing
authorities;
(iv) parents of eligible youth seeking assistance under
this subtitle;
(v) individuals, including former participants, and
representatives of organizations, that have experience
relating to youth activities; and
(vi) representatives of the Job Corps, as appropriate;
and
(B) may include such other individuals as the chairperson
of the local board, in cooperation with the chief elected
official, determines to be appropriate.
(3) Relationship to local board.--Members of the youth council
who are not members of the local board described in subparagraphs
(A) and (B) of subsection (b)(2) shall be voting members of the
youth council and nonvoting members of the board.
(4) Duties.--The duties of the youth council include--
(A) developing the portions of the local plan relating to
eligible youth, as determined by the chairperson of the local
board;
(B) subject to the approval of the local board and
consistent with section 123--
(i) recommending eligible providers of youth
activities, to be awarded grants or contracts on a
competitive basis by the local board to carry out the youth
activities; and
(ii) conducting oversight with respect to the eligible
providers of youth activities, in the local area;
(C) coordinating youth activities authorized under section
129 in the local area; and
(D) other duties determined to be appropriate by the
chairperson of the local board.
(i) Alternative Entity.--
(1) In general.--For purposes of complying with subsections
(a), (b), and (c), and paragraphs (1) and (2) of subsection (h), a
State may use any local entity (including a local council, regional
workforce development board, or similar entity) that--
(A) is established to serve the local area (or the service
delivery area that most closely corresponds to the local area);
(B) is in existence on December 31, 1997;
(C)(i) is established pursuant to section 102 of the Job Training
Partnership Act, as in effect on December 31, 1997; or
(ii) is substantially similar to the local board described
in subsections (a), (b), and (c), and paragraphs (1) and (2) of
subsection (h); and
(D) includes--
(i) representatives of business in the local area; and
(ii)(I) representatives of labor organizations (for a
local area in which employees are represented by labor
organizations), nominated by local labor federations; or
(II) (for a local area in which no employees are
represented by such organizations), other representatives
of employees in the local area.
(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 local plan (referred to in this title
as the ``local plan''), in partnership with the appropriate chief
elected official. The plan shall be consistent with the State plan.
(b) Contents.--The local plan shall include--
(1) an identification of--
(A) the workforce investment needs of businesses,
jobseekers, and workers in the local area;
(B) the current and projected employment opportunities in
the local area; and
(C) the job skills necessary to obtain such employment
opportunities;
(2) a description of the one-stop delivery system to be
established or designated in the local area, including--
(A) a description of how the local board will ensure the
continuous improvement of eligible providers of services
through the system and ensure that such providers meet the
employment needs of local employers and participants; and
(B) a copy of each memorandum of understanding described in
section 121(c) (between the local board and each of the one-
stop partners) concerning the operation of the one-stop
delivery system in the local area;
(3) a description of the local levels of performance negotiated
with the Governor and chief elected official pursuant to section
136(c), to be used to measure the performance of the local area and
to be used by the local board for measuring the performance of the
local fiscal agent (where appropriate), eligible providers, and the
one-stop delivery system, in the local area;
(4) a description and assessment of the type and availability
of adult and dislocated worker employment and training activities
in the local area;
(5) a description of how the local board will coordinate
workforce investment activities carried out in the local area with
statewide rapid response activities, as appropriate;
(6) a description and assessment of the type and availability
of youth activities in the local area, including an identification
of successful providers of such activities;
(7) a description of the process used by the local board,
consistent with subsection (c), to provide an opportunity for
public comment, including comment by representatives of businesses
and comment by representatives of labor organizations, and input
into the development of the local plan, prior to submission of the
plan;
(8) an identification of the entity responsible for the
disbursal of grant funds described in section 117(d)(3)(B)(i)(III),
as determined by the chief elected official or the Governor under
section 117(d)(3)(B)(i);
(9) a description of the competitive process to be used to
award the grants and contracts in the local area for activities
carried out under this subtitle; and
(10) such other information as the Governor may require.
(c) Process.--Prior to the date on which the local board submits a
local plan under this section, the local board shall--
(1) make available copies of a proposed local plan to the
public through such means as public hearings and local news media;
(2) allow members of the local board and members of the public,
including representatives of business and representatives of labor
organizations, to submit comments on the proposed local plan to the
local board, not later than the end of the 30-day period beginning
on the date on which the proposed local plan is made available; and
(3) include with the local plan submitted to the Governor under
this section any such comments that represent disagreement with the
plan.
(d) Plan Submission and Approval.--A local plan submitted to the
Governor under this section shall be considered to be approved by the
Governor 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--
(1) deficiencies in activities carried out under this subtitle
have been identified, through audits conducted under section 184 or
otherwise, and the local area has not made acceptable progress in
implementing corrective measures to address the deficiencies; or
(2) the plan does not comply with this title.
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) develop and enter into the memorandum of understanding
described in subsection (c) with one-stop partners;
(2) designate or certify one-stop operators under subsection
(d); and
(3) conduct oversight with respect to the one-stop delivery
system in the local area.
(b) One-Stop Partners.--
(1) Required partners.--
(A) In general.--Each entity that carries out a program or
activities described in subparagraph (B) shall--
(i) make available to participants, through a one-stop
delivery system, the services described in section
134(d)(2) that are applicable to such program or
activities; and
(ii) participate in the operation of such system
consistent with the terms of the memorandum described in
subsection (c), and with the requirements of the Federal
law in which the program or activities are authorized.
(B) Programs and activities.--The programs and activities
referred to in subparagraph (A) consist of--
(i) programs authorized under this title;
(ii) programs authorized under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.);
(iii) adult education and literacy activities
authorized under title II;
(iv) programs authorized under title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.);
(v) programs authorized under section 403(a)(5) of the
Social Security Act (42 U.S.C. 603(a)(5)) (as added by
section 5001 of the Balanced Budget Act of 1997);
(vi) activities authorized under title V of the Older
Americans Act of 1965 (42 U.S.C. 3056 et seq.);
(vii) postsecondary vocational education activities
authorized under the Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2301 et seq.);
(viii) activities authorized under chapter 2 of title
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
(ix) activities authorized under chapter 41 of title
38, United States Code;
(x) employment and training activities carried out
under the Community Services Block Grant Act (42 U.S.C.
9901 et seq.);
(xi) employment and training activities carried out by
the Department of Housing and Urban Development; and
(xii) programs authorized under State unemployment
compensation laws (in accordance with applicable Federal
law).
(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.
(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));
(iv) programs authorized under the National and Community
Service Act of 1990 (42 U.S.C. 12501 et seq.); and
(v) other appropriate Federal, State, or local
programs, including programs in the private sector.
(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
(B) such other provisions, consistent with the requirements
of this title, as the parties to the agreement determine to be
appropriate.
(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), an entity (which may be a consortium of
entities)--
(A) shall be designated or certified as a one-stop
operator--
(i) through a competitive process; or
(ii) in accordance with an agreement reached between
the local board and a consortium of entities that, at a
minimum, includes 3 or more of the one-stop partners
described in subsection (b)(1); and
(B) may be a public or private entity, or consortium of
entities, of demonstrated effectiveness, located in the local
area, which may include--
(i) a postsecondary educational institution;
(ii) an employment service agency established under the
Wagner-Peyser Act (29 U.S.C. 49 et seq.), on behalf of the
local office of the agency;
(iii) a private, nonprofit organization (including a
community-based organization);
(iv) a private for-profit entity;
(v) a government agency; and
(vi) another interested organization or entity, which
may include a local chamber of commerce or other business
organization.
(3) Exception.--Elementary schools and secondary schools shall
not be eligible for designation or certification as one-stop
operators, except that nontraditional public secondary schools and
area vocational education schools shall be eligible for such
designation or certification.
(e) Established One-Stop Delivery System.--If a one-stop delivery
system has been established in a local area prior to the date of
enactment of this Act, the local board, the chief elected official, and
the Governor involved may agree to certify an entity carrying out
activities through the system as a one-stop operator for purposes of
subsection (d), consistent with the requirements of subsection (b), of
the memorandum of understanding, and of section 134(c).
SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.
(a) Eligibility Requirements.--
(1) In general.--Except as provided in subsection (h), to be
identified as an eligible provider of training services described
in section 134(d)(4) (referred to in this section as ``training
services'') in a local area and to be eligible to receive funds
made available under section 133(b) for the provision of training
services, a provider of such services shall meet the requirements
of this section.
(2) Providers.--Subject to the provisions of this section, to
be eligible to receive the funds, the provider shall be--
(A) a postsecondary educational institution that--
(i) is eligible to receive Federal funds under title IV
of the Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.); and
(ii) provides a program that leads to an associate
degree, baccalaureate degree, or certificate;
(B) an entity that carries out programs under the Act of
August 16, 1937 (commonly known as the ``National
Apprenticeship Act''; 50 Stat. 664, chapter 663; 29 U.S.C. 50
et seq.); or
(C) another public or private provider of a program of
training services.
(b) Initial Eligibility Determination.--
(1) Postsecondary educational institutions and entities
carrying out apprenticeship programs.--To be initially eligible to
receive funds as described in subsection (a) to carry out a program
described in subparagraph (A) or (B) of subsection (a)(2), a
provider described in subparagraph (A) or (B), respectively, of
subsection (a)(2) shall submit an application, to the local board
for the local area in which the provider desires to provide
training services, at such time, in such manner, and containing
such information as the local board may require.
(2) Other eligible providers.--
(A) Procedure.--Each Governor of a State shall establish a
procedure for use by local boards in the State in determining
the initial eligibility of a provider described in subsection
(a)(2)(C) to receive funds as described in subsection (a) for a
program of training services, including the initial eligibility
of--
(i) a postsecondary educational institution to receive
such funds for a program not described in subsection
(a)(2)(A); and
(ii) a provider described in subsection (a)(2)(B) to
receive such funds for a program not described in
subsection (a)(2)(B).
(B) Recommendations.--In developing such procedure, the
Governor shall solicit and take into consideration the
recommendations of local boards and providers of training
services within the State.
(C) Opportunity to submit comments.--The Governor shall
provide an opportunity, during the development of the
procedure, for interested members of the public, including
representatives of business and labor organizations, to submit
comments on such procedure.
(D) Requirements.--In establishing the procedure, the
Governor shall require that, to be initially eligible to
receive funds as described in subsection (a) for a program, a
provider described in subsection (a)(2)(C)--
(i) shall submit an application, to the local board for
the local area in which the provider desires to provide
training services, at such time and in such manner as may
be required, and containing a description of the program;
(ii) if the provider provides training services through
a program on the date of application, shall include in the
application an appropriate portion of the performance
information and program cost information described in
subsection (d) for the program, as specified in the
procedure, and shall meet appropriate levels of performance
for the program, as specified in the procedure; and
(iii) if the provider does not provide training
services on such date, shall meet appropriate requirements,
as specified in the procedure.
(c) Subsequent Eligibility Determination.--
(1) Procedure.--Each Governor of a State shall establish a
procedure for use by local boards in the State in determining the
eligibility of a provider described in subsection (a)(2) to
continue to receive funds as described in subsection (a) for a
program after an initial period of eligibility under subsection (b)
(referred to in this section as ``subsequent eligibility'').
(2) Recommendations.--In developing such procedure, the
Governor shall solicit and take into consideration the
recommendations of local boards and providers of training services
within the State.
(3) Opportunity to submit comments.--The Governor shall provide
an opportunity, during the development of the procedure, for
interested members of the public, including representatives of
business and labor organizations, to submit comments on such
procedure.
(4) Considerations.--In developing such procedure, the Governor
shall ensure that the procedure requires the local boards to take
into consideration, in making the determinations of subsequent
eligibility--
(A) the specific economic, geographic, and demographic
factors in the local areas in which providers seeking
eligibility are located; and
(B) the characteristics of the populations served by
providers seeking eligibility, including the demonstrated
difficulties in serving such populations, where applicable.
(5) Requirements.--In establishing the procedure, the Governor
shall require that, to be eligible to continue to receive funds as
described in subsection (a) for a program after the initial period
of eligibility, a provider described in subsection (a)(2) shall--
(A) submit the performance information and program cost
information described in subsection (d)(1) for the program and
any additional information required to be submitted in
accordance with subsection (d)(2) for the program annually to
the appropriate local board at such time and in such manner as
may be required; and
(B) annually meet the performance levels described in
paragraph (6) for the program, as demonstrated utilizing
quarterly records described in section 136, in a manner
consistent with section 136.
(6) Levels of performance.--
(A) In general.--At a minimum, the procedure described in
paragraph (1) shall require the provider to meet minimum
acceptable levels of performance based on the performance
information referred to in paragraph (5)(A).
(B) Higher levels of performance eligibility.--The local
board may require higher levels of performance than the levels
referred to in subparagraph (A) for subsequent eligibility to
receive funds as described in subsection (a).
(d) Performance and Cost Information.--
(1) Required information.--For a provider of training services
to be determined to be subsequently eligible under subsection (c)
to receive funds as described in subsection (a), such provider
shall, under subsection (c), submit--
(A) verifiable program-specific performance information
consisting of--
(i) program information, including--
(I) the program completion rates for all
individuals participating in the applicable program
conducted by the provider;
(II) the percentage of all individuals
participating in the applicable program who obtain
unsubsidized employment, which may also include
information specifying the percentage of the
individuals who obtain unsubsidized employment in an
occupation related to the program conducted; and
(III) the wages at placement in employment of all
individuals participating in the applicable program;
and
(ii) training services information for all participants
who received assistance under section 134 to participate in
the applicable program, including--
(I) the percentage of participants who have
completed the applicable program and who are placed in
unsubsidized employment;
(II) the retention rates in unsubsidized employment
of participants who have completed the applicable
program, 6 months after the first day of the
employment;
(III) the wages received by participants who have
completed the applicable program, 6 months after the
first day of the employment involved; and
(IV) where appropriate, the rates of licensure or
certification, attainment of academic degrees or
equivalents, or attainment of other measures of skills,
of the graduates of the applicable program; and
(B) information on program costs (such as tuition and fees)
for participants in the applicable program.
(2) Additional information.--Subject to paragraph (3), in
addition to the performance information described in paragraph
(1)--
(A) the Governor may require that a provider submit, under
subsection (c), such other verifiable program-specific
performance information as the Governor determines to be
appropriate to obtain such subsequent eligibility, which may
include information relating to--
(i) retention rates in employment and the subsequent
wages of all individuals who complete the applicable
program;
(ii) where appropriate, the rates of licensure or
certification of all individuals who complete the program;
and
(iii) the percentage of individuals who complete the
program who attain industry-recognized occupational skills
in the subject, occupation, or industry for which training
is provided through the program, where applicable; and
(B) the Governor, or the local board, may require a
provider to submit, under subsection (c), other verifiable
program-specific performance information to obtain such
subsequent eligibility.
(3) Conditions.--
(A) In general.--If the Governor or a local board requests
additional information under paragraph (2) that imposes
extraordinary costs on providers, or if providers experience
extraordinary costs in the collection of information required
under paragraph (1)(A)(ii), the Governor or the local board
shall provide access to cost-effective methods for the
collection of the information involved, or the Governor shall
provide additional resources to assist providers in the
collection of such information from funds made available as
described in sections 128(a) and 133(a)(1), as appropriate.
(B) Higher education eligibility requirements.--The local
board and the designated State agency described in subsection
(i) may accept program-specific performance information
consistent with the requirements for eligibility under title IV
of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.)
from a provider for purposes of enabling the provider to
fulfill the applicable requirements of this subsection, if such
information is substantially similar to the information
otherwise required under this subsection.
(e) Local Identification.--
(1) In general.--The local board shall place on a list
providers submitting an application under subsection (b)(1) and
providers determined to be initially eligible under subsection
(b)(2), and retain on the list providers determined to be
subsequently eligible under subsection (c), to receive funds as
described in subsection (a) for the provision of training services
in the local area served by the local board. The list of providers
shall be accompanied by any performance information and program
cost information submitted under subsection (b) or (c) by the
provider.
(2) Submission to state agency.--On placing or retaining a
provider on the list, the local board shall submit, to the
designated State agency described in subsection (i), the list and
the performance information and program cost information referred
to in paragraph (1). If the agency determines, within 30 days after
the date of the submission, that the provider does not meet the
performance levels described in subsection (c)(6) for the program
(where applicable), the agency may remove the provider from the
list for the program. The agency may not remove from the list an
agency submitting an application under subsection (b)(1).
(3) Identification of eligible providers.--A provider who is
placed or retained on the list under paragraph (1), and is not
removed by the designated State agency under paragraph (2), for a
program, shall be considered to be identified as an eligible
provider of training services for the program.
(4) Availability.--
(A) State list.--The designated State agency shall compile
a single list of the providers identified under paragraph (3)
from all local areas in the State and disseminate such list,
and the performance information and program cost information
described in paragraph (1), to the one-stop delivery systems
within the State. Such list and information shall be made
widely available to participants in employment and training
activities authorized under section 134 and others through the
one-stop delivery system.
(B) Selection from state list.--Individuals eligible to
receive training services under section 134(d)(4) shall have
the opportunity to select any of the eligible providers, from
any of the local areas in the State, that are included on the
list described in subparagraph (A) to provide the services,
consistent with the requirements of section 134.
(5) Acceptance of individual training accounts by other
states.--States may enter into agreements, on a reciprocal basis,
to permit eligible providers of training services in a State to
accept individual training accounts provided in another State.
(f) Enforcement.--
(1) Accuracy of information.--If the designated State agency,
after consultation with the local board involved, determines that
an eligible provider or individual supplying information on behalf
of the provider intentionally supplies inaccurate information under
this section, the agency shall terminate the eligibility of the
provider to receive funds described in subsection (a) for any
program for a period of time, but not less than 2 years.
(2) Noncompliance.--If the designated State agency, or the
local board working with the State agency, determines that an
eligible provider described in subsection (a) substantially
violates any requirement under this Act, the agency, or the local
board working with the State agency, may terminate the eligibility
of such provider to receive funds described in subsection (a) for
the program involved or take such other action as the agency or
local board determines to be appropriate.
(3) Repayment.--A provider whose eligibility is terminated
under paragraph (1) or (2) for a program shall be liable for
repayment of all funds described in subsection (a) received for the
program during any period of noncompliance described in such
paragraph.
(4) Construction.--This subsection and subsection (g) shall be
construed to provide remedies and penalties that supplement, but do
not supplant, other civil and criminal remedies and penalties.
(g) Appeal.--The Governor shall establish procedures for providers
of training services to appeal a denial of eligibility by the local
board or the designated State agency under subsection (b), (c), or (e),
a termination of eligibility or other action by the board or agency
under subsection (f), or a denial of eligibility by a one-stop operator
under subsection (h). Such procedures shall provide an opportunity for
a hearing and prescribe appropriate time limits to ensure prompt
resolution of the appeal.
(h) On-the-Job Training or Customized Training Exception.--
(1) In general.--Providers of on-the-job training or customized
training shall not be subject to the requirements of subsections
(a) through (e).
(2) Collection and dissemination of information.--A one-stop
operator in a local area shall collect such performance information
from on-the-job training and customized training providers as the
Governor may require, determine whether the providers meet such
performance criteria as the Governor may require, and disseminate
information identifying providers that meet the criteria as
eligible providers, and the performance information, through the
one-stop delivery system. Providers determined to meet the criteria
shall be considered to be identified as eligible providers of
training services.
(i) Administration.--The Governor shall designate a State agency to
make the determinations described in subsection (e)(2), take the
enforcement actions described in subsection (f), and carry out other
duties described in this section.
SEC. 123. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
From funds allocated under paragraph (2)(A) or (3) of section
128(b) to a local area, the local board for such area shall identify
eligible providers of youth activities by awarding grants or contracts
on a competitive basis, based on the recommendations of the youth
council and on the criteria contained in the State plan, to the
providers to carry out the activities, and shall conduct oversight with
respect to the providers, in the local area.
CHAPTER 4--YOUTH ACTIVITIES
SEC. 126. GENERAL AUTHORIZATION.
The Secretary shall make an allotment under section 127(b)(1)(C) to
each State that meets the requirements of section 112 and a grant to
each outlying area that complies with the requirements of this title,
to assist the State or outlying area, and to enable the State or
outlying area to assist local areas, for the purpose of providing
workforce investment activities for eligible youth in the State or
outlying area and in the local areas.
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
grants); and
(2) use the remainder of the amount appropriated under section
137(a) for a fiscal year to make allotments and grants in
accordance with subparagraphs (B) and (C) of subsection (b)(1) and
make funds available for use under section 166 (relating to Native
American programs).
(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 sections 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 Islands, the
Federated States of Micronesia, and the Republic of Palau.
(c) Reallotment.--
(1) In general.--The Secretary shall, in accordance with this
subsection, reallot to eligible States amounts that are allotted
under this section for youth activities and statewide workforce
investment activities and that are available for 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.
(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, as compared to the total
amount allotted to all eligible States under this section for such
activities for such prior 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.
(5) Procedures.--The Governor of each State shall prescribe
uniform procedures for the obligation 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).
(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.
(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.
(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.
(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.
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.
(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)(II) 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.
(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
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) preparation for postsecondary educational
opportunities, in appropriate cases;
(ii) strong linkages between academic and occupational
learning;
(iii) preparation for unsubsidized employment
opportunities, in appropriate cases; and
(iv) effective connections to intermediaries with
strong links to--
(I) the job market; and
(II) local and regional employers.
(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;
(B) alternative secondary school services, as appropriate;
(C) summer employment opportunities that are directly
linked to academic and occupational learning;
(D) as appropriate, paid and unpaid work experiences,
including internships and job shadowing;
(E) occupational skill training, as appropriate;
(F) leadership development opportunities, which may include
community service and peer-centered activities encouraging
responsibility and other positive social behaviors during non-
school hours, as appropriate;
(G) supportive services;
(H) adult mentoring for the period of participation and a
subsequent period, for a total of not less than 12 months;
(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.
(3) Additional requirements.--
(A) Information and referrals.--Each local board shall
ensure that each participant or applicant who meets the minimum
income criteria to be considered an eligible youth shall be
provided--
(i) information on the full array of applicable or
appropriate services that are available through the local
board or other eligible providers or one-stop partners,
including those receiving funds under this subtitle; and
(ii) referral to appropriate training and educational
programs that have the capacity to serve the participant or
applicant either on a sequential or concurrent basis.
(B) Applicants not meeting enrollment requirements.--Each
eligible provider of a program of youth activities shall ensure
that an eligible applicant who does not meet the enrollment
requirements of the particular program or who cannot be served
shall be referred for further assessment, as necessary, and
referred to appropriate programs in accordance with
subparagraph (A) to meet the basic skills and training needs of
the applicant.
(C) Involvement in design and implementation.--The local
board shall ensure that parents, participants, and other
members of the community with experience relating to programs
for youth are involved in the design and implementation of the
programs described in paragraph (1).
(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) 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) 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) Linkages.--In coordinating the programs authorized under
this section, youth councils shall establish linkages with
educational agencies responsible for services to participants as
appropriate.
(8) 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. GENERAL AUTHORIZATION.
The Secretary shall make allotments under paragraphs (1)(B) and
(2)(B) of section 132(b) to each State that meets the requirements of
section 112 and a grant to each outlying area that complies with the
requirements of this title, to assist the State or outlying area, and
to enable the State or outlying area to assist local areas, for the
purpose of providing workforce investment activities for adults, and
dislocated workers, in the State or outlying area and in the local
areas.
SEC. 132. STATE ALLOTMENTS.
(a) In General.--The Secretary shall--
(1) make allotments and grants from the total amount
appropriated under section 137(b) for a fiscal year in accordance
with subsection (b)(1); and
(2)(A) reserve 20 percent of the amount appropriated under
section 137(c) for a fiscal year for use under subsection
(b)(2)(A), and under sections 170(b) (relating to dislocated worker
technical assistance), 171(d) (relating to dislocated worker
projects), and 173 (relating to national emergency grants); and
(B) make allotments from 80 percent of the amount appropriated
under section 137(c) for a fiscal year in accordance with
subsection (b)(2)(B).
(b) Allotment Among States.--
(1) Adult employment and training activities.--
(A) Reservation for outlying areas.--
(i) In general.--From the amount made available under
subsection (a)(1) for a fiscal year, the Secretary shall
reserve not more than 1/4 of 1 percent to provide
assistance to the outlying areas.
(ii) Applicability of additional requirements.--From
the amount reserved under clause (i), the Secretary shall
provide assistance to the outlying areas for adult
employment and training activities and statewide workforce
investment activities in accordance with the requirements
of section 127(b)(1)(B), except that the reference in
section 127(b)(1)(B)(i)(II) to sections 252(d) and
262(a)(1) of the Job Training Partnership Act shall be
deemed to be a reference to section 202(a)(1) of the Job
Training Partnership Act (as in effect on the day before
the date of enactment of this Act).
(B) States.--
(i) In general.--After determining the amount to be
reserved under subparagraph (A), the Secretary shall allot
the remainder of the amount referred to in subsection
(a)(1) for a fiscal year to the States pursuant to clause
(ii) for adult employment and training activities and
statewide workforce investment activities.
(ii) Formula.--Subject to clauses (iii) and (iv), of
the remainder--
(I) 33 1/3 percent shall be allotted on the basis
of the relative number of unemployed individuals in
areas of substantial unemployment in each State,
compared to the total number of unemployed individuals
in areas of substantial unemployment in all States;
(II) 33 1/3 percent shall be allotted on the basis
of the relative excess number of unemployed individuals
in each State, compared to the total excess number of
unemployed individuals in all States; and
(III) 33 1/3 percent shall be allotted on the
basis of the relative number of disadvantaged adults in
each State, compared to the total number of
disadvantaged adults in all States, except as described
in clause (iii).
(iii) Calculation.--In determining an allotment under
clause (ii)(III) for any State in which there is a local
area designated under section 116(a)(2)(B), the allotment
shall be based on the higher of--
(I) the number of adults in families with an income
below the low-income level in such area; or
(II) the number of disadvantaged adults in such
area.
(iv) Minimum and maximum percentages and minimum
allotments.--In making allotments under this subparagraph,
the Secretary shall ensure the following:
(I) Minimum percentage and allotment.--Subject to
subclause (IV), the Secretary shall ensure that no
State shall receive an allotment for a fiscal year that
is less than the greater of--
(aa) an amount based on 90 percent of the
allotment percentage of the State for the preceding
fiscal year; or
(bb) 100 percent of the allotment of the State
under section 202 of the Job Training Partnership Act
(as in effect on the day before the date of enactment
of this Act) for fiscal year 1998.
(II) Small state minimum allotment.--Subject to
subclauses (I), (III), and (IV), the Secretary shall
ensure that no State shall receive an allotment under
this subparagraph that is less than the total of--
(aa) 3/10 of 1 percent of $960,000,000 of the
remainder described in clause (i) for the fiscal
year; and
(bb) if the remainder described in clause (i)
for the fiscal year exceeds $960,000,000, 2/5 of
1 percent of the excess.
(III) Maximum percentage.--Subject to subclause
(I), the Secretary shall ensure that no State shall
receive an allotment percentage for a fiscal year that
is more than 130 percent of the allotment percentage of
the State for the preceding fiscal year.
(IV) Minimum funding.--In any fiscal year in which
the remainder described in clause (i) does not exceed
$960,000,000, the minimum allotments under subclauses
(I) and (II) shall be calculated by the methodology for
calculating the corresponding allotments under part A
of title II of the Job Training Partnership Act, as in
effect on July 1, 1998.
(v) Definitions.--For the purpose of the formula
specified in this subparagraph:
(I) Adult.--The term ``adult'' means an individual
who is not less than age 22 and not more than age 72.
(II) Allotment percentage.--The term ``allotment
percentage'', used with respect to fiscal year 2000 or
a subsequent fiscal year, means a percentage of the
remainder described in clause (i) that is received
through an allotment made under this subparagraph for
the fiscal year. The term, used with respect to fiscal
year 1998 or 1999, means the percentage of the amounts
allotted to States under section 202(a) of the Job
Training Partnership Act (as in effect on the day
before the date of enactment of this Act) that is
received under such section by the State involved for
fiscal year 1998 or 1999.
(III) Area of substantial unemployment.--The term
``area of substantial unemployment'' means any area
that is of sufficient size and scope to sustain a
program of workforce investment activities carried out
under this subtitle and that has an average rate of
unemployment of at least 6.5 percent for the most
recent 12 months, as determined by the Secretary. For
purposes of this subclause, determinations of areas of
substantial unemployment shall be made once each fiscal
year.
(IV) Disadvantaged adult.--Subject to subclause
(V), the term ``disadvantaged adult'' means an adult
who received an income, or is a member of a family that
received a total family income, that, in relation to
family size, does not exceed the higher of--
(aa) the poverty line; or
(bb) 70 percent of the lower living standard
income level.
(V) Disadvantaged adult special rule.--The
Secretary shall, as appropriate and to the extent
practicable, exclude college students and members of
the Armed Forces from the determination of the number
of disadvantaged adults.
(VI) Excess number.--The term ``excess number''
means, used with respect to the excess number of
unemployed individuals within a State, the higher of--
(aa) the number that represents the number of
unemployed individuals in excess of 4.5 percent of
the civilian labor force in the State; or
(bb) the number that represents the number of
unemployed individuals in excess of 4.5 percent of
the civilian labor force in areas of substantial
unemployment in such State.
(2) Dislocated worker employment and training.--
(A) Reservation for outlying areas.--
(i) In general.--From the amount made available under
subsection (a)(2)(A) for a fiscal year, the Secretary shall
reserve not more than 1/4 of 1 percent of the amount
appropriated under section 137(c) for the fiscal year to
provide assistance to the outlying areas.
(ii) Applicability of additional requirements.--From
the amount reserved under clause (i), the Secretary shall
provide assistance to the outlying areas for dislocated
worker employment and training activities and statewide
workforce investment activities in accordance with the
requirements of section 127(b)(1)(B), except that the
reference in section 127(b)(1)(B)(i)(II) to sections 252(a)
and 262(a)(1) of the Job Training Partnership Act shall be
deemed to be a reference to section 302(e) of the Job
Training Partnership Act (as in effect on the day before
the date of enactment of this Act).
(B) States.--
(i) In general.--The Secretary shall allot the amount
referred to in subsection (a)(2)(B) for a fiscal year to
the States pursuant to clause (ii) for dislocated worker
employment and training activities and statewide workforce
investment activities.
(ii) Formula.--Of the amount--
(I) 33 1/3 percent shall be allotted on the basis
of the relative number of unemployed individuals in
each State, compared to the total number of unemployed
individuals in all States;
(II) 33 1/3 percent shall be allotted on the basis
of the relative excess number of unemployed individuals
in each State, compared to the total excess number of
unemployed individuals in all States; and
(III) 33 1/3 percent shall be allotted on the
basis of the relative number of individuals in each
State who have been unemployed for 15 weeks or more,
compared to the total number of individuals in all
States who have been unemployed for 15 weeks or more.
(iii) Definition.--In this subparagraph, the term
``excess number'' means, used with respect to the excess
number of unemployed individuals within a State, the number
that represents the number of unemployed individuals in
excess of 4.5 percent of the civilian labor force in the
State.
(3) Definitions.--For the purpose of the formulas specified in
this subsection:
(A) Freely associated states.--The term ``Freely Associated
States'' means the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau.
(B) Low-income level.--The term ``low-income level'' means
$7,000 with respect to income in 1969, and for any later year
means that amount that bears the same relationship to $7,000 as
the Consumer Price Index for that year bears to the Consumer
Price Index for 1969, rounded to the nearest $1,000.
(c) Reallotment.--
(1) In general.--The Secretary shall, in accordance with this
subsection, reallot to eligible States amounts that are allotted
under this section for employment and training activities and
statewide workforce investment activities and that are available
for 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 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.
(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, as compared to the total
amount allotted to all eligible States under this section for such
activities for such prior 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.
(5) Procedures.--The Governor of each State shall prescribe
uniform procedures for the obligation 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.--The Governor of
a State shall make the reservation required under section 128(a).
(2) Statewide rapid response activities.--The Governor of the
State shall reserve not more than 25 percent of the total amount
allotted to the State under section 132(b)(2)(B) for a fiscal year
for statewide rapid response activities described in section
134(a)(2)(A).
(b) Within State Allocation.--
(1) Methods.--The Governor, acting in accordance with the State
plan, and after consulting with chief elected officials in the
local areas, shall allocate--
(A) the funds that are allotted to the State for adult
employment and training activities and statewide workforce
investment activities under section 132(b)(1)(B) and are not
reserved under subsection (a)(1), in accordance with paragraph
(2) or (3); and
(B) the funds that are allotted to the State for dislocated
worker employment and training activities under section
132(b)(2)(B) and are not reserved under paragraph (1) or (2) of
subsection (a), in accordance with paragraph (2).
(2) Formula allocations.--
(A) Adult employment and training activities.--
(i) Allocation.--In allocating the funds described in
paragraph (1)(A) to local areas, a State may allocate--
(I) 33 1/3 percent of the funds on the basis
described in section 132(b)(1)(B)(ii)(I);
(II) 33 1/3 percent of the funds on the basis
described in section 132(b)(1)(B)(ii)(II); and
(III) 33 1/3 percent of the funds on the basis
described in clauses (ii)(III) and (iii) of section
132(b)(1)(B).
(ii) Minimum percentage.--Effective at the end of the
second full fiscal year after the date on which a local
area is designated under section 116, the local area shall
not receive an allocation percentage for a fiscal year that
is less than 90 percent of the average allocation
percentage of the local area for the 2 preceding fiscal
years. Amounts necessary for increasing such allocations to
local areas to comply with the preceding sentence shall be
obtained by ratably reducing the allocations to be made to
other local areas under this subparagraph.
(iii) Definition.--The term ``allocation percentage'',
used with respect to fiscal year 2000 or a subsequent
fiscal year, means a percentage of the funds referred to in
clause (i), received through an allocation made under this
subparagraph, for the fiscal year.
(B) Dislocated worker employment and training activities.--
(i) Formula.--In allocating the funds described in
paragraph (1)(B) to local areas, a State shall allocate the
funds based on an allocation formula prescribed by the
Governor of the State. Such formula may be amended by the
Governor not more than once for each program year. Such
formula shall utilize the most appropriate information
available to the Governor to distribute amounts to address
the State's worker readjustment assistance needs.
(ii) Information.--The information described in clause
(i) shall include insured unemployment data, unemployment
concentrations, plant closing and mass layoff data,
declining industries data, farmer-rancher economic hardship
data, and long-term unemployment data.
(C) Application.--For purposes of carrying out subparagraph
(A)--
(i) references in section 132(b) to a State shall be
deemed to be references to a local area;
(ii) references in section 132(b) to all States shall
be deemed to be references to all local areas in the State
involved; and
(iii) except as described in clause (i), references in
section 132(b)(1) to the term ``excess number'' shall be
considered to be references to the term as defined in
section 132(b)(1).
(3) Adult employment and training discretionary allocations.--
In lieu of making the allocation described in paragraph (2)(A), in
allocating the funds described in paragraph (1)(A) to local areas,
a State may distribute--
(A) a portion equal to not less than 70 percent of the
funds in accordance with paragraph (2)(A); and
(B) the remaining portion of the funds on the basis of a
formula that--
(i) incorporates additional factors (other than the
factors described in paragraph (2)(A)) relating to--
(I) excess poverty in urban, rural, and suburban
local areas; and
(II) excess unemployment above the State average in
urban, rural, and suburban local areas; and
(ii) was developed by the State board and approved by
the Secretary as part of the State plan.
(4) Transfer authority.--A local board may transfer, if such a
transfer is approved by the Governor, not more than 20 percent of
the funds allocated to the local area under paragraph (2)(A) or
(3), and 20 percent of the funds allocated to the local area under
paragraph (2)(B), for a fiscal year between--
(A) adult employment and training activities; and
(B) dislocated worker employment and training activities.
(5) Allocation.--
(A) In general.--The Governor of the State shall allocate
the funds described in paragraph (1) to local areas under
paragraphs (2) and (3) for the purpose of providing a single
system of employment and training activities for adults and
dislocated workers in accordance with subsections (d) and (e)
of section 134.
(B) Additional requirements.--
(i) Adults.--Funds allocated under paragraph (2)(A) or
(3) shall be used by a local area to contribute
proportionately to the costs of the one-stop delivery
system described in section 134(c) in the local area, and
to pay for employment and training activities provided to
adults in the local area, consistent with section 134.
(ii) Dislocated workers.--Funds allocated under
paragraph (2)(B) shall be used by a local area to
contribute proportionately to the costs of the one-stop
delivery system described in section 134(c) in the local
area, and to pay for employment and training activities
provided to dislocated workers in the local area,
consistent with section 134.
(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
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.
(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.
(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.
SEC. 134. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.
(a) Statewide Employment and Training Activities.--
(1) In general.--Funds reserved by a Governor for a State--
(A) as described in section 133(a)(2) shall be used to
carry out the statewide rapid response activities described in
paragraph (2)(A); and
(B) as described in sections 128(a) and 133(a)(1)--
(i) shall be used to carry out the statewide employment
and training activities described in paragraph (2)(B); and
(ii) may be used to carry out any of the statewide
employment and training 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 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.
(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).
(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.
(B) Limitation.--
(i) In general.--Of the funds allotted to a State under
sections 127(b) and 132(b) and reserved as described in
sections 128(a) and 133(a)(1) for a fiscal year--
(I) not more than 5 percent of the amount allotted
under section 127(b)(1);
(II) not more than 5 percent of the amount allotted
under section 132(b)(1); and
(III) not more than 5 percent of the amount
allotted under section 132(b)(2),
may be used by the State for the administration of youth
activities carried out under section 129 and employment and
training activities carried out under this section.
(ii) Use of funds.--Funds made available for
administrative costs under clause (i) may be used for the
administrative cost of any of the statewide youth
activities or statewide employment and training activities,
regardless of whether the funds were allotted to the State
under section 127(b)(1) or paragraph (1) or (2) of section
132(b).
(b) Local Employment and Training 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 a local area for dislocated
workers under section 133(b)(2)(B)--
(1) shall be used to carry out employment and training
activities described in subsection (d) for adults or dislocated
workers, respectively; and
(2) may be used to carry out employment and training activities
described in subsection (e) for adults or dislocated workers,
respectively.
(c) 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);
(B) shall provide access to intensive services and training
services as described in paragraphs (3) and (4) of subsection
(d), including serving as the point of access to individual
training accounts for training services to participants in
accordance with subsection (d)(4)(G);
(C) shall provide access to the activities carried out
under subsection (e), if any;
(D) shall provide access to programs and activities carried
out by one-stop partners and described in section 121(b); and
(E) shall provide access to the information described in
section 15 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.
(d) Required Local Employment and Training Activities.--
(1) In general.--
(A) Allocated funds.--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--
(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.
(B) Other funds.--A portion of the funds made available
under Federal law authorizing the programs and activities
described in section 121(b)(1)(B), including the Wagner-Peyser
Act (29 U.S.C. 49 et seq.), shall be used as described in
clauses (i) and (ii) of subparagraph (A), to the extent not
inconsistent with the Federal law involved.
(2) Core services.--Funds described in paragraph (1)(A) 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) determinations of whether the individuals are eligible
to receive assistance under this subtitle;
(B) outreach, intake (which may include worker profiling),
and orientation to the information and other services available
through the one-stop delivery system;
(C) initial assessment of skill levels, aptitudes,
abilities, and supportive service needs;
(D) job search and placement assistance, and where
appropriate, career counseling;
(E) provision of employment statistics information,
including the provision of accurate information relating to
local, regional, and national labor market areas, including--
(i) job vacancy listings in such labor market areas;
(ii) information on job skills necessary to obtain the
jobs described in clause (i); and
(iii) information relating to local occupations in
demand and the earnings 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.);
(G) provision of information regarding how the local area
is performing on the local performance measures and any
additional performance information with respect to the one-stop
delivery system in the local area;
(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;
(I) provision of information regarding filing claims for
unemployment compensation;
(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 of financial aid assistance for training
and education programs that are not funded under this Act
and are available in the local area; and
(K) followup services, including counseling regarding the
workplace, for participants in workforce investment activities
authorized under this subtitle who are placed in unsubsidized
employment, for not less than 12 months after the first day of
the employment, as appropriate.
(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.
(B) Delivery of services.--Such intensive services shall be
provided through the one-stop delivery system--
(i) directly through one-stop operators identified
pursuant to section 121(d); or
(ii) through contracts with service providers, which
may include contracts with public, private for-profit, and
private nonprofit service providers, approved by the local
board.
(C) Types of services.--Such intensive services may include
the following:
(i) Comprehensive and specialized assessments of the
skill levels and service needs of adults and dislocated
workers, which may include--
(I) diagnostic testing and use of other assessment
tools; and
(II) in-depth interviewing and evaluation to
identify employment barriers and appropriate employment
goals.
(ii) Development of an individual employment plan, to
identify the employment goals, appropriate achievement
objectives, and appropriate combination of services for the
participant to achieve the employment goals.
(iii) Group counseling.
(iv) Individual counseling and career planning.
(v) Case management for participants seeking training
services under paragraph (4).
(vi) Short-term prevocational services, including
development of learning skills, communication skills,
interviewing skills, punctuality, personal maintenance
skills, and professional conduct, to prepare individuals
for unsubsidized employment or training.
(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).
(B) Qualification.--
(i) Requirement.--Except as provided in clause (ii),
provision of such training services shall be limited to
individuals who--
(I) are unable to obtain other grant assistance for
such services, including Federal Pell Grants
established under title IV of the Higher Education Act
of 1965 (20 U.S.C. 1070 et seq.); or
(II) require assistance beyond the assistance made
available under other grant assistance programs,
including Federal Pell Grants.
(ii) Reimbursements.--Training services may be provided
under this paragraph to an individual who otherwise meets
the requirements of this paragraph while an application for
a Federal Pell Grant is pending, except that if such
individual is subsequently awarded a Federal Pell Grant,
appropriate reimbursement shall be made to the local area
from such Federal Pell Grant.
(C) Provider qualification.--Training services shall be
provided through providers identified in accordance with
section 122.
(D) Training services.--Training services may include--
(i) occupational skills training, including training
for nontraditional employment;
(ii) on-the-job training;
(iii) programs that combine workplace training with
related instruction, which may include cooperative
education programs;
(iv) training programs operated by the private sector;
(v) skill upgrading and retraining;
(vi) entrepreneurial training;
(vii) job readiness training;
(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.
(E) Priority.--In the event that funds allocated to a local
area for adult employment and training activities under
paragraph (2)(A) or (3) of section 133(b) are limited, priority
shall be given to recipients of public assistance and other
low-income individuals for intensive services and training
services. The appropriate local board and the Governor shall
direct the one-stop operators in the local area with regard to
making determinations related to such priority.
(F) Consumer choice requirements.--
(i) In general.--Training services provided under this
paragraph shall be provided in a manner that maximizes
consumer choice in the selection of an eligible provider of
such services.
(ii) Eligible providers.--Each local board, through
one-stop centers 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.
(G) Use of individual training 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 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 an individual training 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; 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.
(iii) Linkage to occupations in demand.--Training
services provided under this paragraph shall be directly
linked to occupations that are in demand in the local area,
or in another area to which an adult or dislocated worker
receiving such services is willing to relocate, except that
a local board may approve training services for occupations
determined by the local board to be in sectors of the
economy that have a high potential for sustained demand or
growth in the local area.
(iv) Definition.--In this subparagraph, the term
``special participant population that faces multiple
barriers to employment'' means a population of low-income
individuals that is included in one or more of the
following categories:
(I) Individuals with substantial language or
cultural barriers.
(II) Offenders.
(III) Homeless individuals.
(IV) Other hard-to-serve populations as defined by
the Governor involved.
(e) Permissible Local Employment and Training Activities.--
(1) 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.
(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--
(A) who are participating in programs with activities
authorized in any of paragraphs (2), (3), or (4) of subsection
(d); and
(B) who are unable to obtain such supportive services
through other programs providing such services.
(3) Needs-related payments.--
(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), may be used to provide
needs-related payments to adults and dislocated workers,
respectively, who are unemployed and do not qualify for (or
have ceased to qualify for) unemployment compensation for the
purpose of enabling such individuals to participate in programs
of training services under subsection (d)(4).
(B) Additional eligibility requirements.--In addition to
the requirements contained in subparagraph (A), a dislocated
worker who has ceased to qualify for unemployment compensation
may be eligible to receive needs-related payments under this
paragraph only if such worker was enrolled in the training
services--
(i) by the end of the 13th week after the most recent
layoff that resulted in a determination of the worker's
eligibility for employment and training activities for
dislocated workers under this subtitle; or
(ii) if later, by the end of the 8th week after the
worker is informed that a short-term layoff will exceed 6
months.
(C) Level of payments.--The level of a needs-related
payment made to a dislocated worker under this paragraph shall
not exceed the greater of--
(i) the applicable level of unemployment compensation;
or
(ii) if such worker did not qualify for unemployment
compensation, an amount equal to the poverty line, for an
equivalent period, which amount shall be adjusted to
reflect changes in total family income.
CHAPTER 6--GENERAL PROVISIONS
SEC. 136. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) Purpose.--The purpose of this section is to establish a
comprehensive performance accountability system, comprised of the
activities described in this section, to assess the effectiveness of
States and local areas in achieving continuous improvement of workforce
investment activities funded under this subtitle, in order to optimize
the return on investment of Federal funds in statewide and local
workforce investment activities.
(b) State Performance Measures.--
(1) In general.--For each State, the State performance measures
shall consist of--
(A)(i) the core indicators of performance described in
paragraph (2)(A) and the customer satisfaction indicator of
performance described in paragraph (2)(B); and
(ii) additional indicators of performance (if any)
identified by the State under paragraph (2)(C); and
(B) a State adjusted level of performance for each
indicator described in subparagraph (A).
(2) Indicators of performance.--
(A) Core indicators of performance.--
(i) In general.--The core indicators of performance for
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) entry into unsubsidized employment;
(II) retention in unsubsidized employment 6 months
after entry into the employment;
(III) earnings received in unsubsidized employment
6 months after entry into the 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 and
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.
(B) Customer satisfaction indicators.--The customer
satisfaction indicator of performance shall consist of customer
satisfaction of employers and participants with services
received from the workforce investment activities authorized
under this subtitle. Customer satisfaction may be measured
through surveys conducted after the conclusion of participation
in the workforce investment activities.
(C) Additional indicators.--A State may identify in the
State plan additional indicators for workforce investment
activities authorized under this subtitle.
(3) Levels of performance.--
(A) State adjusted levels of performance for core
indicators and customer satisfaction indicator.--
(i) In general.--For each State submitting a State
plan, there shall be established, in accordance with this
subparagraph, levels of performance for each of the core
indicators of performance described in paragraph (2)(A) and
the customer satisfaction indicator described in paragraph
(2)(B) for workforce investment activities authorized under
this subtitle. The levels of performance established under
this subparagraph shall, at a minimum--
(I) be expressed in an objective, quantifiable, and
measurable form; and
(II) show the progress of the State toward
continuously improving in performance.
(ii) Identification in state plan.--Each State shall
identify, in the State plan submitted under section 112,
expected levels of performance for each of the core
indicators of performance and the customer satisfaction
indicator of performance, for the first 3 program years
covered by the State plan.
(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 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.
(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 factors including
differences in economic conditions, the characteristics
of participants when the participants entered the
program, 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.
(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.
(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), shall issue objective criteria and methods
for making such revisions.
(B) Levels of performance for additional indicators.--The
State may identify, in the State plan, State levels of
performance for each of the additional indicators described in
paragraph (2)(C). Such levels shall be considered to be State
adjusted levels of performance for purposes of this title.
(c) Local Performance Measures.--
(1) In general.--For each local area in a State, the local
performance measures shall consist of--
(A)(i) the core indicators of performance described in
subsection (b)(2)(A), and the customer satisfaction indicator
of performance described in subsection (b)(2)(B), for
activities described in such subsections, other than statewide
workforce investment activities; and
(ii) additional indicators of performance (if any)
identified by the State under subsection (b)(2)(C) for
activities described in such subsection, other than statewide
workforce investment activities; and
(B) a local level of performance for each indicator
described in subparagraph (A).
(2) Local level of performance.--The local board, the chief
elected official, and the Governor shall negotiate and reach
agreement on the local levels of performance based on the State
adjusted levels of performance established under subsection (b).
(3) Determinations.--In determining such local levels of
performance, the local board, the chief elected official, and the
Governor shall take into account the specific economic,
demographic, and other characteristics of the populations to be
served in the local area.
(d) Report.--
(1) In general.--Each State that receives an allotment under
section 127 or 132 shall annually prepare and submit to the
Secretary a report on the progress of the State in achieving State
performance measures, including information on the levels of
performance achieved by the State with respect to the core
indicators of performance and the customer satisfaction indicator.
The annual report also shall include information regarding the
progress of local areas in the State in achieving local performance
measures, including information on the levels of performance
achieved by the areas with respect to the core indicators of
performance and the customer satisfaction indicator. The report
also shall include information on the status of State evaluations
of workforce investment activities described in subsection (e).
(2) Additional information.--In preparing such report, the
State shall include, at a minimum, information on participants in
workforce investment activities authorized under this subtitle
relating to--
(A) entry by participants who have completed training
services provided under section 134(d)(4) into unsubsidized
employment related to the training received;
(B) wages at entry into employment for participants in
workforce investment activities who entered unsubsidized
employment, including the rate of wage replacement for such
participants who are dislocated workers;
(C) cost of workforce investment activities relative to the
effect of the activities on the performance of participants;
(D) retention and earnings received in unsubsidized
employment 12 months after entry into the employment;
(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, and older individuals.
(3) Information dissemination.--The Secretary--
(A) shall make the information contained in such reports
available to the general public through publication and other
appropriate methods;
(B) shall disseminate State-by-State comparisons of the
information; and
(C) shall provide the appropriate congressional committees
with copies of such reports.
(e) Evaluation of State Programs.--
(1) In general.--Using funds made available under this
subtitle, the State, in coordination with local boards in the
State, shall conduct ongoing evaluation studies of workforce
investment activities carried out in the State under this subtitle
in order to promote, establish, implement, and utilize methods for
continuously improving the activities in order to achieve high-
level performance within, and high-level outcomes from, the
statewide workforce investment system. To the maximum extent
practicable, the State shall coordinate the evaluations with the
evaluations provided for by the Secretary under section 172.
(2) Design.--The evaluation studies conducted under this
subsection shall be designed in conjunction with the State board
and local boards and shall include analysis of customer feedback
and outcome and process measures in the statewide workforce
investment system. The studies may include use of control groups.
(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.
(f) Fiscal and Management Accountability Information Systems.--
(1) In general.--Using funds made available under this
subtitle, the Governor, in coordination with local boards and chief
elected officials in the State, shall establish and operate a
fiscal and management accountability information system based on
guidelines established by the Secretary after consultation with the
Governors, local elected officials, and one-stop partners. Such
guidelines shall promote efficient collection and use of fiscal and
management information for reporting and monitoring the use of
funds made available under this subtitle and for preparing the
annual report described in subsection (d).
(2) Wage records.--In measuring the progress of the State on
State and local performance measures, a State shall utilize
quarterly wage records, consistent with State law. The Secretary
shall make arrangements, consistent with State law, to ensure that
the wage records of any State are available to any other State to
the extent that such wage records are required by the State in
carrying out the State plan of the State or completing the annual
report described in subsection (d).
(3) Confidentiality.--In carrying out the requirements of this
Act, the State shall comply with section 444 of the General
Education Provisions Act (20 U.S.C. 1232g) (as added by the Family
Educational Rights and Privacy Act of 1974).
(g) Sanctions for State Failure To Meet State Performance
Measures.--
(1) States.--
(A) Technical assistance.--If a State fails to meet State
adjusted levels of performance relating to indicators described
in subparagraph (A) or (B) of subsection (b)(2) for a program
for any program year, the Secretary shall, upon request,
provide technical assistance in accordance with section 170,
including assistance in the development of a performance
improvement plan.
(B) Reduction in amount of grant.--If such failure
continues for a second consecutive year, 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.
(h) Sanctions for Local Area Failure To Meet Local Performance
Measures.--
(1) Technical assistance.--If a local area fails to meet levels
of performance relating to indicators described in subparagraph (A)
or (B) of subsection (b)(2) for a program for any program year, the
Governor, or upon request by the Governor, the Secretary, shall
provide technical assistance, which may include assistance in the
development of a performance improvement plan, or the development
of a modified local plan.
(2) Corrective actions.--
(A) In general.--If such failure continues for a second
consecutive year, the Governor shall take corrective actions,
which may include development of a reorganization plan through
which the Governor may--
(i) require the appointment and certification of a new
local board (consistent with the criteria established under
section 117(b));
(ii) prohibit the use of eligible providers and one-
stop partners identified as achieving a poor level of
performance; or
(iii) take such other actions as the Governor
determines are appropriate.
(B) Appeal by local area.--
(i) Appeal to governor.--A local area that is subject
to a reorganization plan under subparagraph (A) may, not
later than 30 days after receiving notice of the
reorganization plan, appeal to the Governor to rescind or
revise such plan. In such case, the Governor shall make a
final decision not later then 30 days after the receipt of
the appeal.
(ii) Subsequent action.--The local area may, not later
than 30 days after receiving a decision from the Governor
pursuant to clause (i), appeal such decision to the
Secretary. In such case, the Secretary shall make a final
decision not later than 30 days after the receipt of the
appeal.
(C) Effective date.--The decision made by the Governor
under clause (i) of subparagraph (B) shall become effective at
the time the Governor issues the decision pursuant to such
clause. Such decision shall remain effective unless the
Secretary rescinds or revises such plan pursuant to clause (ii)
of subparagraph (B).
(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 in 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.
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.
(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.
(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.
Subtitle C--Job Corps
SEC. 141. PURPOSES.
The purposes of this subtitle are--
(1) to maintain a national Job Corps program, carried out in
partnership with States and communities, to assist eligible youth
who need and can benefit from an intensive program, operated in a
group setting in residential and nonresidential centers, to become
more responsible, employable, and productive citizens;
(2) to set forth standards and procedures for selecting
individuals as enrollees in the Job Corps;
(3) to authorize the establishment of Job Corps centers in
which enrollees will participate in intensive programs of
activities described in this subtitle; and
(4) to prescribe various other powers, duties, and
responsibilities incident to the operation and continuing
development of the Job Corps.
SEC. 142. DEFINITIONS.
In this subtitle:
(1) Applicable local board.--The term ``applicable local
board'' means a local board--
(A) that provides information for a Job Corps center on
local employment opportunities and the job skills needed to
obtain the opportunities; and
(B) that serves communities in which the graduates of the
Job Corps center seek employment.
(2) Applicable one-stop center.--The term ``applicable one-stop
center'' means a one-stop customer service center that provides
services, such as referral, intake, recruitment, and placement, to
a Job Corps center.
(3) Enrollee.--The term ``enrollee'' means an individual who
has voluntarily applied for, been selected for, and enrolled in the
Job Corps program, and remains with the program, but has not yet
become a graduate.
(4) Former enrollee.--The term ``former enrollee'' means an
individual who has voluntarily applied for, been selected for, and
enrolled in the Job Corps program, but left the program before
completing the requirements of a vocational training program, or
receiving a secondary school diploma or recognized equivalent, as a
result of participation in the Job Corps program.
(5) Graduate.--The term ``graduate'' means an individual who
has voluntarily applied for, been selected for, and enrolled in the
Job Corps program and has completed the requirements of a
vocational training program, or received a secondary school diploma
or recognized equivalent, as a result of participation in the Job
Corps program.
(6) Job corps.--The term ``Job Corps'' means the Job Corps
described in section 143.
(7) Job corps center.--The term ``Job Corps center'' means a
center described in section 147.
(8) Operator.--The term ``operator'' means an entity selected
under this subtitle to operate a Job Corps center.
(9) Region.--The term ``region'' means an area served by a
regional office of the Employment and Training Administration.
(10) Service provider.--The term ``service provider'' means an
entity selected under this subtitle to provide services described
in this subtitle to a Job Corps center.
SEC. 143. ESTABLISHMENT.
There shall be within the Department of Labor a ``Job Corps''.
SEC. 144. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.
To be eligible to become an enrollee, an individual shall be--
(1) not less than age 16 and not more than age 21 on the date
of enrollment, except that--
(A) not more than 20 percent of the individuals enrolled in
the Job Corps may be not less than age 22 and not more than age
24 on the date of enrollment; and
(B) either such maximum age limitation may be waived by the
Secretary, in accordance with regulations of the Secretary, in
the case of an individual with a disability;
(2) a low-income individual; and
(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.
SEC. 145. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT OF ENROLLEES.
(a) Standards and Procedures.--
(1) In general.--The Secretary shall prescribe specific
standards and procedures for the recruitment, screening, and
selection of eligible applicants for the Job Corps, after
considering recommendations from the Governors, local boards, and
other interested parties.
(2) Methods.--In prescribing standards and procedures under
paragraph (1), the Secretary, at a minimum, shall--
(A) prescribe procedures for informing enrollees that drug
tests will be administered to the enrollees and the results
received within 45 days after the enrollees enroll in the Job
Corps;
(B) establish standards for recruitment of Job Corps
applicants;
(C) establish standards and procedures for--
(i) determining, for each applicant, whether the
educational and vocational needs of the applicant can best
be met through the Job Corps program or an alternative
program in the community in which the applicant resides;
and
(ii) obtaining from each applicant pertinent data
relating to background, needs, and interests for
determining eligibility and potential assignment;
(D) where appropriate, take measures to improve the
professional capability of the individuals conducting screening
of the applicants; and
(E) assure that an appropriate number of enrollees are from
rural areas.
(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.
(4) Consultation.--The standards and procedures shall provide
for necessary consultation with individuals and organizations,
including court, probation, parole, law enforcement, education,
welfare, and medical authorities and advisers.
(5) Reimbursement.--The Secretary is authorized to enter into
contracts with and make payments to individuals and organizations
for the cost of conducting recruitment, screening, and selection of
eligible applicants for the Job Corps, as provided for in this
section. The Secretary shall make no payment to any individual or
organization solely as compensation for referring the names of
applicants for the Job Corps.
(b) Special Limitations on Selection.--
(1) In general.--No individual shall be selected as an enrollee
unless the individual or organization implementing the standards
and procedures described in subsection (a) determines that--
(A) there is a reasonable expectation that the individual
considered for selection can participate successfully in group
situations and activities, and is not likely to engage in
behavior that would prevent other enrollees from receiving the
benefit of the Job Corps program or be incompatible with the
maintenance of sound discipline and satisfactory relationships
between the Job Corps center to which the individual might be
assigned and communities surrounding the Job Corps center;
(B) the individual manifests a basic understanding of both
the rules to which the individual will be subject and of the
consequences of failure to observe the rules; and
(C) the individual has passed a background check conducted
in accordance with procedures established by the Secretary.
(2) Individuals on probation, parole, or supervised release.--
An individual on probation, parole, or supervised release may be
selected as an enrollee only if release from the supervision of the
probation or parole official involved is satisfactory to the
official and the Secretary and does not violate applicable laws
(including regulations). No individual shall be denied a position
in the Job Corps solely on the basis of individual contact with the
criminal justice system.
(c) Assignment Plan.--
(1) In general.--Every 2 years, the Secretary shall develop and
implement an assignment plan for assigning enrollees to Job Corps
centers. In developing the plan, the Secretary shall, based on the
analysis described in paragraph (2), establish targets, applicable
to each Job Corps center, for--
(A) the maximum attainable percentage of enrollees at the
Job Corps center that reside in the State in which the center
is located; and
(B) the maximum attainable percentage of enrollees at the
Job Corps center that reside in the region in which the center
is located, and in surrounding regions.
(2) Analysis.--In order to develop the plan described in
paragraph (1), the Secretary shall, every 2 years, analyze, for the
Job Corps center--
(A) the size of the population of individuals eligible to
participate in Job Corps in the State and region in which the
Job Corps center is located, and in surrounding regions;
(B) the relative demand for participation in the Job Corps
in the State and region, and in surrounding regions; and
(C) the capacity and utilization of the Job Corps center,
including services provided through the center.
(d) Assignment of Individual Enrollees.--
(1) In general.--After an individual has been selected for the
Job Corps in accordance with the standards and procedures of the
Secretary under subsection (a), the enrollee shall be assigned to
the Job Corps center that is closest to the home of the enrollee,
except that the Secretary may waive this requirement if--
(A) the enrollee chooses a vocational training program, or
requires an English literacy program, that is not available at
such center;
(B) the enrollee would be unduly delayed in participating
in the Job Corps program because the closest center is
operating at full capacity; or
(C) the parent or guardian of the enrollee requests
assignment of the enrollee to another Job Corps center due to
circumstances in the community of the enrollee that would
impair prospects for successful participation in the Job Corps
program.
(2) Enrollees who are younger than 18.--An enrollee who is
younger than 18 shall not be assigned to a Job Corps center other
than the center closest to the home of the enrollee pursuant to
paragraph (1) if the parent or guardian of the enrollee objects to
the assignment.
SEC. 146. ENROLLMENT.
(a) Relationship Between Enrollment and Military Obligations.--
Enrollment in the Job Corps shall not relieve any individual of
obligations under the Military Selective Service Act (50 U.S.C. App.
451 et seq.).
(b) Period of Enrollment.--No individual may be enrolled in the Job
Corps for more than 2 years, except--
(1) in a case in which completion of an advanced career
training program under section 148(c) would require an individual
to participate in the Job Corps for not more than one additional
year; or
(2) as the Secretary may authorize in a special case.
SEC. 147. JOB CORPS CENTERS.
(a) Operators and Service Providers.--
(1) Eligible entities.--
(A) Operators.--The Secretary shall enter into an agreement
with a Federal, State, or local agency, an area vocational
education school or residential vocational school, or a private
organization, for the operation of each Job Corps center.
(B) Providers.--The Secretary may enter into an agreement
with a local entity to provide activities described in this
subtitle to the Job Corps center.
(2) Selection process.--
(A) Competitive basis.--Except as provided in subsections
(c) and (d) of section 303 of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253), the
Secretary shall select on a competitive basis an entity to
operate a Job Corps center and entities to provide activities
described in this subtitle to the Job Corps center. In
developing a solicitation for an operator or service provider,
the Secretary shall consult with the Governor of the State in
which the center is located, the industry council for the Job
Corps center (if established), and the applicable local board
regarding the contents of such solicitation, including elements
that will promote the consistency of the activities carried out
through the center with the objectives set forth in the State
plan or in a local plan.
(B) Recommendations and considerations.--
(i) Operators.--In selecting an entity to operate a Job
Corps center, the Secretary shall consider--
(I) the ability of the entity to coordinate the
activities carried out through the Job Corps center
with activities carried out under the appropriate State
plan and local plans;
(II) the degree to which the vocational training
that the entity proposes for the center reflects local
employment opportunities in the local areas in which
enrollees at the center intend to seek employment;
(III) the degree to which the entity is familiar
with the surrounding communities, applicable one-stop
centers, and the State and region in which the center
is located; and
(IV) the past performance of the entity, if any,
relating to operating or providing activities described
in this subtitle to a Job Corps center.
(ii) Providers.--In selecting a service provider for a
Job Corps center, the Secretary shall consider the factors
described in subclauses (I) through (IV) of clause (i), as
appropriate.
(b) Character and Activities.--Job Corps centers may be residential
or nonresidential in character, and shall be designed and operated so
as to provide enrollees, in a well-supervised setting, with access to
activities described in this subtitle. In any year, no more than 20
percent of the individuals enrolled in the Job Corps may be
nonresidential participants in the Job Corps.
(c) Civilian Conservation Centers.--
(1) In general.--The Job Corps centers may include Civilian
Conservation Centers operated under agreements with the Secretary
of Agriculture or the Secretary of the Interior, located primarily
in rural areas, which shall provide, in addition to other
vocational training and assistance, programs of work experience to
conserve, develop, or manage public natural resources or public
recreational areas or to develop community projects in the public
interest.
(2) Selection process.--The Secretary may select an entity to
operate a Civilian Conservation Center on a competitive basis, as
provided in subsection (a), if the center fails to meet such
national performance standards as the Secretary shall establish.
(d) Indian Tribes.--
(1) General authority.--The Secretary may enter into agreements
with Indian tribes to operate Job Corps centers for Indians.
(2) Definitions.--In this subsection, the terms ``Indian'' and
``Indian tribe'', have the meanings given such terms in subsections
(d) and (e), respectively, of section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
SEC. 148. PROGRAM ACTIVITIES.
(a) Activities Provided by Job Corps Centers.--
(1) In general.--Each Job Corps center shall provide enrollees
with an intensive, well organized, and fully supervised program of
education, vocational training, work experience, recreational
activities, physical rehabilitation and development, and
counseling. Each Job Corps center shall provide enrollees assigned
to the center with access to core services described in section
134(d)(2) and the intensive services described in section
134(d)(3).
(2) Relationship to opportunities.--
(A) In general.--The activities provided under this
subsection shall provide work-based learning throughout the
enrollment of the enrollees and assist the enrollees in
obtaining meaningful unsubsidized employment, participating in
secondary education or postsecondary education programs,
enrolling in other suitable vocational training programs, or
satisfying Armed Forces requirements, on completion of their
enrollment.
(B) Link to employment opportunities.--The vocational
training provided shall be linked to the employment
opportunities in the local area in which the enrollee intends
to seek employment after graduation.
(b) Education and Vocational Training.--The Secretary may arrange
for education and vocational training of enrollees through local public
or private educational agencies, vocational educational institutions,
or technical institutes, whenever such entities provide education and
training substantially equivalent in cost and quality to that which the
Secretary could provide through other means.
(c) Advanced Career Training Programs.--
(1) In general.--The Secretary may arrange for programs of
advanced career training for selected enrollees in which the
enrollees may continue to participate for a period of not to exceed
1 year in addition to the period of participation to which the
enrollees would otherwise be limited. The advanced career training
may be provided through the eligible providers of training services
identified under section 122.
(2) Benefits.--
(A) In general.--During the period of participation in an
advanced career training program, an enrollee shall be eligible
for full Job Corps benefits, or a monthly stipend equal to the
average value of the residential support, food, allowances, and
other benefits provided to enrollees assigned to residential
Job Corps centers.
(B) Calculation.--The total amount for which an enrollee
shall be eligible under subparagraph (A) shall be reduced by
the amount of any scholarship or other educational grant
assistance received by such enrollee for advanced career
training.
(3) Demonstration.--Each year, any operator seeking to enroll
additional enrollees in an advanced career training program shall
demonstrate that participants in such program have achieved a
satisfactory rate of completion and placement in training-related
jobs before the operator may carry out such additional enrollment.
(d) Continued Services.--The Secretary shall also provide continued
services to graduates, including providing counseling regarding the
workplace for 12 months after the date of graduation of the graduates.
In selecting a provider for such services, the Secretary shall give
priority to one-stop partners.
(e) Child Care.--The Secretary shall, to the extent practicable,
provide child care at or near Job Corps centers, for individuals who
require child care for their children in order to participate in the
Job Corps.
SEC. 149. COUNSELING AND JOB PLACEMENT.
(a) Counseling and Testing.--The Secretary shall arrange for
counseling and testing for each enrollee at regular intervals to
measure progress in the education and vocational training programs
carried out through the Job Corps.
(b) Placement.--The Secretary shall arrange for counseling and
testing for enrollees prior to their scheduled graduations to determine
their capabilities and, based on their capabilities, shall make every
effort to arrange to place the enrollees in jobs in the vocations for
which the enrollees are trained or to assist the enrollees in obtaining
further activities described in this subtitle. In arranging for the
placement of graduates in jobs, the Secretary shall utilize the one-
stop delivery system to the fullest extent possible.
(c) Status and Progress.--The Secretary shall determine the status
and progress of enrollees scheduled for graduation and make every
effort to assure that their needs for further activities described in
this subtitle are met.
(d) Services to Former Enrollees.--The Secretary may provide such
services as the Secretary determines to be appropriate under this
subtitle to former enrollees.
SEC. 150. SUPPORT.
(a) Personal Allowances.--The Secretary may provide enrollees
assigned to Job Corps centers with such personal allowances as the
Secretary may determine to be necessary or appropriate to meet the
needs of the enrollees.
(b) Readjustment Allowances.--
(1) Graduates.--The Secretary shall arrange for a readjustment
allowance to be paid to graduates. The Secretary shall arrange for
the allowance to be paid at the one-stop center nearest to the home
of the graduate who is returning home, or at the one-stop center
nearest to the location where the graduate has indicated an intent
to seek employment. If the Secretary uses any organization, in lieu
of a one-stop center, to provide placement services under this Act,
the Secretary shall arrange for that organization to pay the
readjustment allowance.
(2) Former enrollees.--The Secretary may provide for a
readjustment allowance to be paid to former enrollees. The
provision of the readjustment allowance shall be subject to the
same requirements as are applicable to the provision of the
readjustment allowance paid to graduates under paragraph (1).
SEC. 151. OPERATING PLAN.
(a) In General.--The provisions of the contract between the
Secretary and an entity selected to operate a Job Corps center shall,
at a minimum, serve as an operating plan for the Job Corps center.
(b) Additional Information.--The Secretary may require the
operator, in order to remain eligible to operate the Job Corps center,
to submit such additional information as the Secretary may require,
which shall be considered part of the operating plan.
(c) Availability.--The Secretary shall make the operating plan
described in subsections (a) and (b), excluding any proprietary
information, available to the public.
SEC. 152. STANDARDS OF CONDUCT.
(a) Provision and Enforcement.--The Secretary shall provide, and
directors of Job Corps centers shall stringently enforce, standards of
conduct within the centers. Such standards of conduct shall include
provisions forbidding the actions described in subsection (b)(2)(A).
(b) Disciplinary Measures.--
(1) In general.--To promote the proper moral and disciplinary
conditions in the Job Corps, the directors of Job Corps centers
shall take appropriate disciplinary measures against enrollees. If
such a director determines that an enrollee has committed a
violation of the standards of conduct, the director shall dismiss
the enrollee from the Job Corps if the director determines that the
retention of the enrollee in the Job Corps will jeopardize the
enforcement of such standards or diminish the opportunities of
other enrollees.
(2) Zero tolerance policy and drug testing.--
(A) Guidelines.--The Secretary shall adopt guidelines
establishing a zero tolerance policy for an act of violence,
for use, sale, or possession of a controlled substance, for
abuse of alcohol, or for other illegal or disruptive activity.
(B) Drug testing.--The Secretary shall require drug testing
of all enrollees for controlled substances in accordance with
procedures prescribed by the Secretary under section 145(a).
(C) Definitions.--In this paragraph:
(i) Controlled substance.--The term ``controlled
substance'' has the meaning given the term in section 102
of the Controlled Substances Act (21 U.S.C. 802).
(ii) Zero tolerance policy.--The term ``zero tolerance
policy'' means a policy under which an enrollee shall be
automatically dismissed from the Job Corps after a
determination by the director that the enrollee has carried
out an action described in subparagraph (A).
(c) Appeal.--A disciplinary measure taken by a director under this
section shall be subject to expeditious appeal in accordance with
procedures established by the Secretary.
SEC. 153. COMMUNITY PARTICIPATION.
(a) Business and Community Liaison.--Each Job Corps center shall
have a Business and Community Liaison (referred to in this Act as a
``Liaison''), designated by the director of the center.
(b) Responsibilities.--The responsibilities of the Liaison shall
include--
(1) establishing and developing relationships and networks
with--
(A) local and distant employers; and
(B) applicable one-stop centers and applicable local
boards,
for the purpose of providing job opportunities for Job Corps
graduates; and
(2) establishing and developing relationships with members of
the community in which the Job Corps center is located, informing
members of the community about the projects of the Job Corps center
and changes in the rules, procedures, or activities of the center
that may affect the community, and planning events of mutual
interest to the community and the Job Corps center.
(c) New Centers.--The Liaison for a Job Corps center that is not
yet operating shall establish and develop the relationships and
networks described in subsection (b) at least 3 months prior to the
date on which the center accepts the first enrollee at the center.
SEC. 154. INDUSTRY COUNCILS.
(a) In General.--Each Job Corps center shall have an industry
council, appointed by the director of the center after consultation
with the Liaison, in accordance with procedures established by the
Secretary.
(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--
(i) have substantial management, hiring, or policy
responsibility; and
(ii) represent businesses with employment opportunities
that reflect the employment opportunities of the applicable
local area;
(B) representatives of labor organizations (where present)
and representatives of employees; and
(C) enrollees and graduates of the Job Corps.
(2) Local board.--The industry council may include members of
the applicable local boards who meet the requirements described in
paragraph (1).
(c) Responsibilities.--The responsibilities of the industry council
shall be--
(1) to work closely with all applicable local boards in order
to determine, and recommend to the Secretary, appropriate
vocational training for the center;
(2) to review all the relevant labor market information to--
(A) determine the employment opportunities in the local
areas in which the enrollees intend to seek employment after
graduation;
(B) determine the skills and education that are necessary
to obtain the employment opportunities; and
(C) recommend to the Secretary the type of vocational
training that should be implemented at the center to enable the
enrollees to obtain the employment opportunities; and
(3) to meet at least once every 6 months to reevaluate the
labor market information, and other relevant information, to
determine, and recommend to the Secretary, any necessary changes in
the vocational training provided at the center.
(d) New Centers.--The industry council for a Job Corps center that
is not yet operating shall carry out the responsibilities described in
subsection (c) at least 3 months prior to the date on which the center
accepts the first enrollee at the center.
SEC. 155. ADVISORY COMMITTEES.
The Secretary may establish and use advisory committees in
connection with the operation of the Job Corps program, and the
operation of Job Corps centers, whenever the Secretary determines that
the availability of outside advice and counsel on a regular basis would
be of substantial benefit in identifying and overcoming problems, in
planning program or center development, or in strengthening
relationships between the Job Corps and agencies, institutions, or
groups engaged in related activities.
SEC. 156. EXPERIMENTAL, RESEARCH, AND DEMONSTRATION PROJECTS.
The Secretary may carry out experimental, research, or
demonstration projects relating to carrying out the Job Corps program
and may waive any provisions of this subtitle that the Secretary finds
would prevent the Secretary from carrying out the projects.
SEC. 157. APPLICATION OF PROVISIONS OF FEDERAL LAW.
(a) Enrollees Not Considered To Be Federal Employees.--
(1) In general.--Except as otherwise provided in this
subsection and in section 8143(a) of title 5, United States Code,
enrollees shall not be considered to be Federal employees and shall
not be subject to the provisions of law relating to Federal
employment, including such provisions regarding hours of work,
rates of compensation, leave, unemployment compensation, and
Federal employee benefits.
(2) Provisions relating to taxes and social security
benefits.--For purposes of the Internal Revenue Code of 1986 and
title II of the Social Security Act (42 U.S.C. 401 et seq.),
enrollees shall be deemed to be employees of the United States and
any service performed by an individual as an enrollee shall be
deemed to be performed in the employ of the United States.
(3) Provisions relating to compensation to federal employees
for work injuries.--For purposes of subchapter I of chapter 81 of
title 5, United States Code (relating to compensation to Federal
employees for work injuries), enrollees shall be deemed to be civil
employees of the Government of the United States within the meaning
of the term ``employee'' as defined in section 8101 of title 5,
United States Code, and the provisions of such subchapter shall
apply as specified in section 8143(a) of title 5, United States
Code.
(4) Federal tort claims provisions.--For purposes of the
Federal tort claims provisions in title 28, United States Code,
enrollees shall be considered to be employees of the Government.
(b) Adjustments and Settlements.--Whenever the Secretary finds a
claim for damages to a person or property resulting from the operation
of the Job Corps to be a proper charge against the United States, and
the claim is not cognizable under section 2672 of title 28, United
States Code, the Secretary may adjust and settle the claim in an amount
not exceeding $1,500.
(c) Personnel of the Uniformed Services.--Personnel of the
uniformed services who are detailed or assigned to duty in the
performance of agreements made by the Secretary for the support of the
Job Corps shall not be counted in computing strength under any law
limiting the strength of such services or in computing the percentage
authorized by law for any grade in such services.
SEC. 158. SPECIAL PROVISIONS.
(a) Enrollment.--The Secretary shall ensure that women and men have
an equal opportunity to participate in the Job Corps program,
consistent with section 145.
(b) Studies, Evaluations, Proposals, and Data.--The Secretary shall
assure that all studies, evaluations, proposals, and data produced or
developed with Federal funds in the course of carrying out the Job
Corps program shall become the property of the United States.
(c) Transfer of Property.--
(1) In general.--Notwithstanding title II of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C. 481 et
seq.) and any other provision of law, the Secretary and the
Secretary of Education shall receive priority by the Secretary of
Defense for the direct transfer, on a nonreimbursable basis, of the
property described in paragraph (2) for use in carrying out
programs under this Act or under any other Act.
(2) Property.--The property described in this paragraph is real
and personal property under the control of the Department of
Defense that is not used by such Department, including property
that the Secretary of Defense determines is in excess of current
and projected requirements of such Department.
(d) Gross Receipts.--Transactions conducted by a private for-profit
or nonprofit entity that is an operator or service provider for a Job
Corps center shall not be considered to be generating gross receipts.
Such an operator or service provider shall not be liable, directly or
indirectly, to any State or subdivision of a State (nor to any person
acting on behalf of such a State or subdivision) for any gross receipts
taxes, business privilege taxes measured by gross receipts, or any
similar taxes imposed on, or measured by, gross receipts in connection
with any payments made to or by such entity for operating or providing
services to a Job Corps center. Such an operator or service provider
shall not be liable to any State or subdivision of a State to collect
or pay any sales, excise, use, or similar tax imposed on the sale to or
use by such operator or service provider of any property, service, or
other item in connection with the operation of or provision of services
to a Job Corps center.
(e) Management Fee.--The Secretary shall provide each operator and
(in an appropriate case, as determined by the Secretary) service
provider with an equitable and negotiated management fee of not less
than 1 percent of the amount of the funding provided under the
appropriate agreement specified in section 147.
(f) Donations.--The Secretary may accept on behalf of the Job Corps
or individual Job Corps centers charitable donations of cash or other
assistance, including equipment and materials, if such donations are
available for appropriate use for the purposes set forth in this
subtitle.
(g) Sale of Property.--Notwithstanding any other provision of law,
if the Administrator of General Services sells a Job Corps center
facility, the Administrator shall transfer the proceeds from the sale
to the Secretary, who shall use the proceeds to carry out the Job Corps
program.
SEC. 159. MANAGEMENT INFORMATION.
(a) Financial Management Information System.--
(1) In general.--The Secretary shall establish procedures to
ensure that each operator, and each service provider, maintains a
financial management information system that will provide--
(A) accurate, complete, and current disclosures of the
costs of Job Corps operations; and
(B) sufficient data for the effective evaluation of
activities carried out through the Job Corps program.
(2) Accounts.--Each operator and service provider shall
maintain funds received under this subtitle in accounts in a manner
that ensures timely and accurate reporting as required by the
Secretary.
(3) Fiscal responsibility.--Operators shall remain fiscally
responsible and control costs, regardless of whether the funds made
available for Job Corps centers are incrementally increased or
decreased between fiscal years.
(b) Audit.--
(1) Access.--The Secretary, the Inspector General of the
Department of Labor, the Comptroller General of the United States,
and any of their duly authorized representatives, shall have access
to any books, documents, papers, and records of the operators and
service providers described in subsection (a) that are pertinent to
the Job Corps program, for purposes of conducting surveys, audits,
and evaluations of the operators and service providers.
(2) Surveys, audits, and evaluations.--The Secretary shall
survey, audit, or evaluate, or arrange for the survey, audit, or
evaluation of, the operators and service providers, using Federal
auditors or independent public accountants. The Secretary shall
conduct such surveys, audits, or evaluations not less often than
once every 3 years.
(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 post- secondary
education or advanced training programs, including
apprenticeship programs, as appropriate; and
(H) the number of graduates who attained job readiness and
employment skills.
(2) Performance of recruiters.--The Secretary shall also
establish performance measures, and expected performance levels on
the performance measures, for local and national recruitment
service providers serving the Job Corps program. The performance
measures 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. The
report shall also contain information on the performance of the
service providers described in paragraph (2) on the performance
measures established under such paragraph, as compared to the
expected performance levels for the performance measures.
(d) Additional Information.--The Secretary shall also collect, and
submit in the report described in subsection (c), information on the
performance of each Job Corps center, and the Job Corps program,
regarding--
(1) the number of enrollees served;
(2) the average level of learning gains for graduates and
former enrollees;
(3) the number of former enrollees and graduates who entered
the Armed Forces;
(4) the number of former enrollees who entered post- secondary
education;
(5) the number of former enrollees 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;
(6) the number of former enrollees and graduates who obtained a
secondary school diploma or its recognized equivalent;
(7) the number and percentage of dropouts from the Job Corps
program including the number dismissed under the zero tolerance
policy described in section 152(b); and
(8) any additional information required by the Secretary.
(e) Methods.--The Secretary may collect the information described
in subsections (c) and (d) using methods described in section 136(f)(2)
consistent with State law.
(f) Performance Assessments and Improvements.--
(1) Assessments.--The Secretary shall conduct an annual
assessment of the performance of each Job Corps center. Based on
the assessment, the Secretary shall take measures to continuously
improve the performance of the Job Corps program.
(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 specified in subsection
(c), the Secretary shall develop and implement a performance
improvement plan. Such a plan shall require action including--
(A) providing technical assistance to the center;
(B) changing the vocational training offered at the center;
(C) changing the management staff of the center;
(D) replacing the operator of the center;
(E) reducing the capacity of the center;
(F) relocating the center; or
(G) closing the center.
(3) Additional performance improvement plans.--In addition to
the performance improvement plans required under paragraph (2), the
Secretary may develop and implement additional performance
improvement plans. Such a plan shall require improvements,
including the actions described in paragraph (2), for a Job Corps
center that fails to meet criteria established by the Secretary
other than the expected levels of performance described in
paragraph (2).
(g) Closure of Job Corps Center.--Prior to the closure of any Job
Corps center, the Secretary shall ensure--
(1) that the proposed decision to close the center is announced
in advance to the general public through publication in the Federal
Register or other appropriate means;
(2) the establishment of a reasonable comment period, not to
exceed 30 days, for interested individuals to submit written
comments to the Secretary; and
(3) that the Member of Congress who represents the district in
which such center is located is notified within a reasonable period
of time in advance of any final decision to close the center.
SEC. 160. GENERAL PROVISIONS.
The Secretary is authorized to--
(1) disseminate, with regard to the provisions of section 3204
of title 39, United States Code, data and information in such forms
as the Secretary shall determine to be appropriate, to public
agencies, private organizations, and the general public;
(2) subject to section 157(b), collect or compromise all
obligations to or held by the Secretary and exercise all legal or
equitable rights accruing to the Secretary in connection with the
payment of obligations until such time as such obligations may be
referred to the Attorney General for suit or collection; and
(3) expend funds made available for purposes of this subtitle--
(A) for printing and binding, in accordance with applicable
law (including regulation); and
(B) without regard to any other law (including regulation),
for rent of buildings and space in buildings and for repair,
alteration, and improvement of buildings and space in buildings
rented by the Secretary, except that the Secretary shall not
expend funds under the authority of this subparagraph--
(i) except when necessary to obtain an item, service,
or facility, that is required in the proper administration
of this subtitle, and that otherwise could not be obtained,
or could not be obtained in the quantity or quality needed,
or at the time, in the form, or under the conditions in
which the item, service, or facility is needed; and
(ii) prior to having given written notification to the
Administrator of General Services (if the expenditure would
affect an activity that otherwise would be under the
jurisdiction of the General Services Administration) of the
intention of the Secretary to make the expenditure, and the
reasons and justifications for the expenditure.
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.
Subtitle D--National Programs
SEC. 166. NATIVE AMERICAN PROGRAMS.
(a) Purpose.--
(1) In general.--The purpose of this section is to support
employment and training activities for Indian, Alaska Native, and
Native Hawaiian individuals in order--
(A) to develop more fully the academic, occupational, and
literacy skills of such individuals;
(B) to make such individuals more competitive in the
workforce; and
(C) to promote the economic and social development of
Indian, Alaska Native, and Native Hawaiian communities in
accordance with the goals and values of such communities.
(2) Indian policy.--All programs assisted under this section
shall be administered in a manner consistent with the principles of
the Indian Self-Determination and Education Assistance Act (25
U.S.C. 450 et seq.) and the government-to-government relationship
between the Federal Government and Indian tribal governments.
(b) Definitions.--As used in this section:
(1) Alaska native.--The term ``Alaska Native'' means a Native
as such term is defined in section 3(b) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(b)).
(2) Indian, indian tribe, and tribal organization.--The terms
``Indian'', ``Indian tribe'', and ``tribal organization'' have the
meanings given such terms in subsections (d), (e), and (l),
respectively, of section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b).
(3) Native hawaiian and native hawaiian organization.--The
terms ``Native Hawaiian'' and ``Native Hawaiian organization'' have
the meanings given such terms in paragraphs (1) and (3),
respectively, of section 9212 of the Native Hawaiian Education Act
(20 U.S.C. 7912).
(c) Program Authorized.--
(1) In general.--The Secretary shall, on a competitive basis,
make grants to, or enter into contracts or cooperative agreements
with, Indian tribes, tribal organizations, Alaska Native entities,
Indian-controlled organizations serving Indians, or Native Hawaiian
organizations to carry out the authorized activities described in
subsection (d).
(2) Exception.--The competition for grants, contracts, or
cooperative agreements conducted under paragraph (1) shall be
conducted every 2 years, except that if a recipient of such a
grant, contract, or agreement has performed satisfactorily, the
Secretary may waive the requirements for such competition on
receipt from the recipient of a satisfactory 2-year program plan
for the succeeding 2-year period of the grant, contract, or
agreement.
(d) Authorized Activities.--
(1) In general.--Funds made available under subsection (c)
shall be used to carry out the activities described in paragraph
(2) that--
(A) are consistent with this section; and
(B) are necessary to meet the needs of Indians or Native
Hawaiians preparing to enter, reenter, or retain unsubsidized
employment.
(2) Workforce investment activities and supplemental
services.--
(A) In general.--Funds made available under subsection (c)
shall be used for--
(i) comprehensive workforce investment activities for
Indians or Native Hawaiians; or
(ii) supplemental services for Indian or Native
Hawaiian youth on or near Indian reservations and in
Oklahoma, Alaska, or Hawaii.
(B) Special rule.--Notwithstanding any other provision of
this section, individuals who were eligible to participate in
programs under section 401 of the Job Training Partnership Act
(29 U.S.C. 1671) (as such section was in effect on the day
before the date of enactment of this Act) shall be eligible to
participate in an activity assisted under this section.
(e) Program Plan.--In order to receive a grant or enter into a
contract or cooperative agreement under this section an entity
described in subsection (c) shall submit to the Secretary a program
plan that describes a 2-year strategy for meeting the needs of Indian,
Alaska Native, or Native Hawaiian individuals, as appropriate, in the
area served by such entity. Such plan shall--
(1) be consistent with the purpose of this section;
(2) identify the population to be served;
(3) identify the education and employment needs of the
population to be served and the manner in which the activities to
be provided will strengthen the ability of the individuals served
to obtain or retain unsubsidized employment;
(4) describe the activities to be provided and the manner in
which such activities are to be integrated with other appropriate
activities; and
(5) describe, after the entity submitting the plan consults
with the Secretary, the performance measures to be used to assess
the performance of entities in carrying out the activities assisted
under this section.
(f) Consolidation of Funds.--Each entity receiving assistance under
subsection (c) may consolidate such assistance with assistance received
from related programs in accordance with the provisions of the Indian
Employment, Training and Related Services Demonstration Act of 1992 (25
U.S.C. 3401 et seq.).
(g) Nonduplicative and Nonexclusive Services.--Nothing in this
section shall be construed--
(1) to limit the eligibility of any entity described in
subsection (c) to participate in any activity offered by a State or
local entity under this Act; or
(2) to preclude or discourage any agreement, between any entity
described in subsection (c) and any State or local entity, to
facilitate the provision of services by such entity or to the
population served by such entity.
(h) Administrative Provisions.--
(1) Organizational unit established.--The Secretary shall
designate a single organizational unit within the Department of
Labor that shall have primary responsibility for the administration
of the activities authorized under this section.
(2) Regulations.--The Secretary shall consult with the entities
described in subsection (c) in--
(A) establishing regulations to carry out this section,
including performance measures for entities receiving
assistance under such subsection, taking into account the
economic circumstances of such entities; and
(B) developing a funding distribution plan that takes into
consideration previous levels of funding (prior to the date of
enactment of this Act) to such entities.
(3) Waivers.--
(A) In general.--With respect to an entity described in
subsection (c), the Secretary, notwithstanding any other
provision of law, may, pursuant to a request submitted by such
entity that meets the requirements established under paragraph
(2), waive any of the statutory or regulatory requirements of
this title that are inconsistent with the specific needs of the
entities described in such subsection, except that the
Secretary may not waive requirements relating to wage and labor
standards, worker rights, participation and protection of
workers and participants, grievance procedures, and judicial
review.
(B) Request and approval.--An entity described in
subsection (c) that requests a waiver under subparagraph (A)
shall submit a plan to the Secretary to improve the program of
workforce investment activities carried out by the entity,
which plan shall meet the requirements established by the
Secretary and shall be generally consistent with the
requirements of section 189(i)(4)(B).
(4) Advisory council.--
(A) In general.--Using funds made available to carry out
this section, the Secretary shall establish a Native American
Employment and Training Council to facilitate the consultation
described in paragraph (2).
(B) Composition.--The Council shall be composed of
individuals, appointed by the Secretary, who are
representatives of the entities described in subsection (c).
(C) Duties.--The Council shall advise the Secretary on all
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).
(D) Personnel matters.--
(i) Compensation of members.--Members of the Council
shall serve without compensation.
(ii) Travel expenses.--The members of the Council shall
be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of
business in the performance of services for the Council.
(iii) Administrative support.--The Secretary shall
provide the Council with such administrative support as may
be necessary to perform the functions of the Council.
(E) Chairperson.--The Council shall select a chairperson
from among its members.
(F) Meetings.--The Council shall meet not less than twice
each year.
(G) Application.--Section 14 of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the Council.
(5) Technical assistance.--The Secretary, acting through the
unit established under paragraph (1), is authorized to provide
technical assistance to entities described in subsection (c) that
receive assistance under subsection (c) to enable such entities to
improve the activities authorized under this section that are
provided by such entities.
(6) Agreement for certain federally recognized indian tribes to
transfer funds to the program.--A federally recognized Indian tribe
that administers funds provided under this section and funds
provided by more than one State under other sections of this title
may enter into an agreement with the Secretary and the Governors of
the affected States to transfer the funds provided by the States to
the program administered by the tribe under this section.
(i) Compliance With Single Audit Requirements; Related
Requirement.--Grants, contracts, and cooperative agreements entered
into under this section shall be subject to the requirements of chapter
75 of subtitle V of title 31, United States Code (enacted by the Single
Audit Act of 1984) and charging of costs under this section shall be
subject to appropriate circulars issued by the Office of Management and
Budget.
(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 authorized to
be appropriated for fiscal year 1999 such sums as may be necessary
to carry out this subsection.
SEC. 167. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.
(a) In General.--Every 2 years, the Secretary shall, on a
competitive basis, make grants to, or enter into contracts with,
eligible entities to carry out the activities described in subsection
(d).
(b) Eligible Entities.--To be eligible to receive a grant or enter
into a contract under this section, an entity shall have an
understanding of the problems of eligible migrant and seasonal
farmworkers (including dependents), a familiarity with the area to be
served, and the ability to demonstrate a capacity to administer
effectively a diversified program of workforce investment activities
(including youth activities) and related assistance for eligible
migrant and seasonal farmworkers.
(c) Program Plan.--
(1) In general.--To be eligible to receive a grant or enter
into a contract under this section, an entity described in
subsection (b) shall submit to the Secretary a plan that describes
a 2-year strategy for meeting the needs of eligible migrant and
seasonal farmworkers in the area to be served by such entity.
(2) Contents.--Such plan shall--
(A) identify the education and employment needs of the
population to be served and the manner in which the services to
be provided will strengthen the ability of the eligible migrant
and seasonal farmworkers and dependents to obtain or retain
unsubsidized employment or stabilize their unsubsidized
employment;
(B) describe the related assistance and supportive services
to be provided and the manner in which such assistance and
services are to be integrated and coordinated with other
appropriate services; and
(C) describe the indicators of performance to be used to
assess the performance of such entity in carrying out the
activities assisted under this section.
(3) Administration.--Grants and contracts awarded under this
section shall be centrally administered by the Department of Labor
and competitively awarded by the Secretary using procedures
consistent with standard Federal Government competitive procurement
policies.
(4) Competition.--
(A) In general.--The competition for grants made and
contracts entered into under this section shall be conducted
every 2 years.
(B) Exception.--Notwithstanding subparagraph (A), if a
recipient of such a grant or contract has performed
satisfactorily under the terms of the grant agreement or
contract, the Secretary may waive the requirement for such
competition for such recipient upon receipt from the recipient
of a satisfactory 2-year plan described in paragraph (1) for
the succeeding 2-year grant or contract period. The Secretary
may exercise the waiver authority of the preceding sentence not
more than once during any 4-year period with respect to any
single recipient.
(d) Authorized Activities.--Funds made available under this section
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, 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.
(e) Consultation With Governors and Local Boards.--In making grants
and entering into contracts under this section, the Secretary shall
consult with the Governors and local boards of the States in which the
eligible entities will carry out the activities described in subsection
(d).
(f) Regulations.--The Secretary shall consult with eligible migrant
and seasonal farmworkers groups and States in establishing regulations
to carry out this section, including performance measures for eligible
entities that take into account the economic circumstances and
demographics of eligible migrant and seasonal farmworkers.
(g) Compliance With Single Audit Requirements; Related
Requirement.--Grants and contracts entered into under this section
shall be subject to the requirements of chapter 75 of subtitle V of
title 31, United States Code (enacted by the Single Audit Act of 1984)
and charging of costs under this section shall be subject to
appropriate circulars issued by the Office of Management and Budget.
(h) Definitions.--In this section:
(1) Disadvantaged.--The term ``disadvantaged'', used with
respect to a farmworker, means a farmworker whose income, for 12
consecutive months out of the 24 months prior to application for
the program involved, does not exceed the higher of--
(A) the poverty line (as defined in section 334(a)(2)(B))
for an equivalent period; or
(B) 70 percent of the lower living standard income level,
for an equivalent period.
(2) Eligible migrant and seasonal farmworkers.--The term
``eligible migrant and seasonal farmworkers'' means individuals who
are eligible migrant farmworkers or are eligible seasonal
farmworkers.
(3) Eligible migrant farmworker.--The term ``eligible migrant
farmworker'' means--
(A) an eligible seasonal farmworker described in paragraph
(4)(A) whose agricultural labor requires travel to a job site
such that the farmworker is unable to return to a permanent
place of residence within the same day; and
(B) a dependent of the farmworker described in subparagraph
(A).
(4) Eligible seasonal farmworker.--The term ``eligible seasonal
farmworker'' means--
(A) a disadvantaged person who, for 12 consecutive months
out of the 24 months prior to application for the program
involved, has been primarily employed in agricultural labor
that is characterized by chronic unemployment or
underemployment; and
(B) a dependent of the person described in subparagraph (A).
SEC. 168. VETERANS' WORKFORCE INVESTMENT PROGRAMS.
(a) Authorization.--
(1) In general.--The Secretary shall conduct, directly or
through grants or contracts, programs to meet the needs for
workforce investment activities of veterans with service-connected
disabilities, veterans who have significant barriers to employment,
veterans who served on active duty in the armed forces during a war
or in a campaign or expedition for which a campaign badge has been
authorized, and recently separated veterans.
(2) Conduct of programs.--Programs supported under this section
may be conducted through grants and contracts with public agencies
and private nonprofit organizations, including recipients of
Federal assistance under other provisions of this title, that the
Secretary determines have an understanding of the unemployment
problems of veterans described in paragraph (1), familiarity with
the area to be served, and the capability to administer effectively
a program of workforce investment activities for such veterans.
(3) Required activities.--Programs supported under this section
shall include--
(A) activities to enhance services provided to veterans by
other providers of workforce investment activities funded by
Federal, State, or local government;
(B) activities to provide workforce investment activities
to such veterans that are not adequately provided by other
public providers of workforce investment activities; and
(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).
(b) Administration of Programs.--
(1) In general.--The Secretary shall administer programs
supported under this section through the Assistant Secretary for
Veterans' Employment and Training.
(2) Additional responsibilities.--In carrying out
responsibilities under this section, the Assistant Secretary for
Veterans' Employment and Training shall--
(A) be responsible for the awarding of grants and contracts
and the distribution of funds under this section and for the
establishment of appropriate fiscal controls, accountability,
and program performance measures for recipients of grants and
contracts under this section; and
(B) consult with the Secretary of Veterans Affairs and take
steps to ensure that programs supported under this section are
coordinated, to the maximum extent feasible, with related
programs and activities conducted under title 38, United States
Code, including programs and activities conducted under
subchapter II of chapter 77 of such title, chapters 30, 31, 32,
and 34 of such title, and sections 1712A, 1720A, 3687, and
4103A of such title.
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 areas 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
this 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 Native villages or Native groups (as such
terms are defined in section 3 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602)).
(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 a 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 realignments 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. 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, and, in particular, to assist States in
making transitions from carrying out activities under the
provisions of law repealed under section 199 to carry out
activities under this title.
(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.
(3) Limitation.--Grants or contracts awarded under paragraph
(1) to entities other than States or local units of government that
are for amounts in excess of $100,000 shall only be awarded on a
competitive basis.
(b) Dislocated Worker Technical Assistance.--
(1) Authority.--Of the amounts available pursuant to section
132(a)(2), the Secretary shall reserve not more than 5 percent of
such amounts to provide technical assistance to States that do not
meet the State performance measures described in section 136 with
respect to employment and training activities for dislocated
workers. Using such reserved funds, the Secretary may provide such
assistance to other States, local areas, and other entities
involved in providing assistance to dislocated workers, to promote
the continuous improvement of assistance provided to dislocated
workers, under this title.
(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 174(b).
SEC. 171. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH, AND MULTISTATE PROJECTS.
(a) Strategic Plan.--
(1) In general.--After consultation with States, localities,
and other interested parties, the Secretary shall, every 2 years,
publish in the Federal Register, a plan that describes the
demonstration and pilot (including dislocated worker demonstration
and pilot), multiservice, research, and multistate project
priorities of the Department of Labor concerning employment and
training for the 5-year period following the submission of the
plan. Copies of the plan shall be transmitted to the appropriate
committees of Congress.
(2) Factors.--The plan published under paragraph (1) shall
contain strategies to address national employment and training
problems and take into account factors such as--
(A) the availability of existing research (as of the date
of the publication);
(B) the need to ensure results that have interstate
validity;
(C) the benefits of economies of scale and the efficiency
of proposed projects; and
(D) the likelihood that the results of the projects will be
useful to policymakers and stakeholders in addressing
employment and training problems.
(b) Demonstration and Pilot Projects.--
(1) In general.--Under a 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 computer-based
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;
(F) the establishment of partnerships with national
organizations with special expertise in developing, organizing,
and administering employment and training services, for
individuals with disabilities, at the national, State, and
local levels;
(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.
(2) Limitations.--
(A) Competitive awards.--Grants or contracts awarded for
carrying out demonstration and pilot projects under this
subsection shall be awarded only on a competitive basis, except
that a noncompetitive award may be made in the case of a
project that is funded jointly with other public or private
sector entities that provide a portion of the funding for the
project.
(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) 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.--Under a plan published under
subsection (a), the Secretary shall, through grants or contracts,
carry out multiservice projects--
(A) that will test an array of approaches to the provision
of employment and training services to a variety of targeted
populations;
(B) in which the entity carrying out the project, in
conjunction with employers, organized labor, and other groups
such as the disability community, will design, develop, and
test various training approaches in order to determine
effective practices; and
(C) that will assist in the development and replication of
effective service delivery strategies for targeted populations
for the national employment and training system as a whole.
(2) Research projects.--
(A) In general.--Under a plan published under subsection
(a), the Secretary shall, through grants or contracts, carry
out research projects that will contribute to the solution of
employment and training problems in the United States.
(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.
(3) Multistate projects.--
(A) In general.--
(i) Authority.--Under a plan published under subsection
(a), the Secretary may, through grants or contracts, carry
out multistate projects that require demonstrated expertise
that is available at the national level to effectively
disseminate best practices and models for implementing
employment and training services, address the specialized
employment and training needs of particular service
populations, or address industry-wide skill shortages.
(ii) Design of grants.--Grants or contracts awarded
under this subsection shall be designed to obtain
information relating to the provision of services under
different economic conditions or to various demographic
groups in order to provide guidance at the national and
State levels about how best to administer specific
employment and training services.
(4) Limitations.--
(A) Competitive awards.--Grants or contracts awarded for
carrying out projects under this subsection in amounts that
exceed $100,000 shall be awarded only on a competitive basis,
except that a noncompetitive award may be made in the case of a
project that is funded jointly with other public or private
sector entities that provide a substantial portion of
assistance under the grant or contract for the project.
(B) Time limits.--A grant or contract shall not be awarded
under this subsection to the same organization for more than 3
consecutive years unless such grant or contract is
competitively reevaluated within such period.
(C) Peer review.--
(i) In general.--The Secretary shall utilize a peer
review process--
(I) to review and evaluate all applications for
grants in amounts that exceed $500,000 that are
submitted under this section; and
(II) to review and designate exemplary and
promising programs under this section.
(ii) Availability of funds.--The Secretary is
authorized to use funds provided under this section to
carry out peer review activities under this subparagraph.
(D) Priority.--In awarding grants or contracts under this
subsection, priority shall be provided to entities with
nationally recognized expertise in the methods, techniques, and
knowledge of workforce investment activities and shall include
appropriate time limits, established by the Secretary, for the
duration of such projects.
(d) Dislocated Worker Projects.--Of the amount made available
pursuant to section 132(a)(2)(A) for any program year, the Secretary
shall use not more than 10 percent of such amount to carry out
demonstration and pilot projects, multiservice projects, and multistate
projects, relating to the employment and training needs of dislocated
workers. Of the requirements of this section, such projects shall be
subject only to the provisions relating to review and evaluation of
applications under subsection (c)(4)(C). Such projects may include
demonstration and pilot projects relating to promoting self-employment,
promoting job creation, averting dislocations, assisting dislocated
farmers, assisting dislocated fishermen, and promoting public works.
Such projects shall be administered through the dislocated worker
office described in section 173(b).
SEC. 172. EVALUATIONS.
(a) Programs and Activities Carried Out Under This Title.--For the
purpose of improving the management and effectiveness of programs and
activities carried out under this title, the Secretary shall provide
for the continuing evaluation of the programs and activities, including
those programs and activities carried out under section 171. Such
evaluations shall address--
(1) the general effectiveness of such programs and activities
in relation to their cost, including the extent to which the
programs and activities--
(A) improve the employment competencies of participants in
comparison to comparably-situated individuals who did not
participate in such programs and activities; and
(B) to the extent feasible, increase the level of total
employment over the level that would have existed in the
absence of such programs and activities;
(2) the effectiveness of the performance measures relating to
such programs and activities;
(3) the effectiveness of the structure and mechanisms for
delivery of services through such programs and activities;
(4) the impact of the programs and activities on the community
and participants involved;
(5) the impact of such programs and activities on related
programs and activities;
(6) the extent to which such programs and activities meet the
needs of various demographic groups; and
(7) such other factors as may be appropriate.
(b) Other Programs and Activities.--The Secretary may conduct
evaluations of other federally funded employment-related programs and
activities under other provisions of law.
(c) Techniques.--Evaluations conducted under this section shall
utilize appropriate methodology and research designs, including the use
of control groups chosen by scientific random assignment methodologies.
The Secretary shall conduct as least 1 multisite control group
evaluation under this section by the end of fiscal year 2005.
(d) Reports.--The entity carrying out an evaluation described in
subsection (a) or (b) shall prepare and submit to the Secretary a draft
report and a final report containing the results of the evaluation.
(e) Reports to Congress.--Not later than 30 days after the
completion of such a draft report, the Secretary shall transmit the
draft report to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Labor and Human Resources
of the Senate. Not later than 60 days after the completion of such a
final report, the Secretary shall transmit the final report to such
committees of the Congress.
(f) Coordination.--The Secretary shall ensure the coordination of
evaluations carried out by States pursuant to section 136(e) with the
evaluations carried out under this section.
SEC. 173. NATIONAL EMERGENCY GRANTS.
(a) In General.--The Secretary is authorized to award national
emergency grants in a timely manner--
(1) to an entity described in subsection (c) 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;
(2) to provide assistance to the Governor of any State within
the boundaries of which is an area that has suffered an emergency
or a major disaster as defined in paragraphs (1) and (2),
respectively, of section 102 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5122 (1) and (2))
(referred to in this section as the ``disaster area'') to provide
disaster relief employment in the area; and
(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.
(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) Employment and Training Assistance Requirements.--
(1) Grant recipient eligibility.--
(A) Application.--To be eligible to receive a grant under
subsection (a)(1), an entity shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
(B) Eligible entity.--In this paragraph, the term
``entity'' means a State, a local board, an entity described in
section 166(c), entities determined to be eligible by the
Governor of the State involved, and other entities that
demonstrate to the Secretary the capability to effectively
respond to the circumstances relating to particular
dislocations.
(2) Participant eligibility.--
(A) In general.--In order to be eligible to receive
employment and training assistance under a national emergency
grant awarded pursuant to subsection (a)(1), an individual
shall be--
(i) a dislocated worker;
(ii) a civilian employee of the Department of Defense
or the Department of Energy employed at a military
installation that is being closed, or that will undergo
realignment, within the next 24 months after the date of
the determination of eligibility;
(iii) an individual who is employed in a nonmanagerial
position with a Department of Defense contractor, who is
determined by the Secretary of Defense to be at-risk of
termination from employment as a result of reductions in
defense expenditures, and whose employer is converting
operations from defense to nondefense applications in order
to prevent worker layoffs; or
(iv) a member of the Armed Forces who--
(I) was on active duty or full-time National Guard
duty;
(II)(aa) is involuntarily separated (as defined in
section 1141 of title 10, United States Code) from
active duty or full-time National Guard duty; or
(bb) is separated from active duty or full-time
National Guard duty pursuant to a special separation
benefits program under section 1174a of title 10,
United States Code, or the voluntary separation
incentive program under section 1175 of that title;
(III) is not entitled to retired or retained pay
incident to the separation described in subclause (II);
and
(IV) applies for such employment and training
assistance before the end of the 180-day period
beginning on the date of that separation.
(B) Retraining assistance.--The individuals described in
subparagraph (A)(iii) shall be eligible for retraining
assistance to upgrade skills by obtaining marketable skills
needed to support the conversion described in subparagraph
(A)(iii).
(C) Additional requirements.--The Secretary shall establish
and publish additional requirements related to eligibility for
employment and training assistance under the national emergency
grants to ensure effective use of the funds available for this
purpose.
(D) Definitions.--In this paragraph, the terms ``military
institution'' and ``realignment'' have the meanings given the
terms in section 2910 of the Defense Base Closure and
Realignment Act of 1990 (Public Law 101-510; 10 U.S.C. 2687
note).
(d) Disaster Relief Employment Assistance Requirements.--
(1) In general.--Funds made available under subsection (a)(2)--
(A) shall be used to provide disaster relief employment on
projects that provide food, clothing, shelter, and other
humanitarian assistance for disaster victims, and projects
regarding demolition, cleaning, repair, renovation, and
reconstruction of damaged and destroyed structures, facilities,
and lands located within the disaster area;
(B) may be expended through public and private agencies and
organizations engaged in such projects; and
(C) may be expended to provide employment and training
activities.
(2) Eligibility.--An individual shall be eligible to be offered
disaster relief employment under subsection (a)(2) if such
individual is a dislocated worker, is a long-term unemployed
individual, or is temporarily or permanently laid off as a
consequence of the disaster.
(3) Limitations on disaster relief employment.--No individual
shall be employed under subsection (a)(2) for more than 6 months
for work related to recovery from a single natural disaster.
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.
(2) Reservations.--Of the amount appropriated pursuant to the
authorization of appropriations under paragraph (1) for a fiscal
year, the Secretary shall--
(A) reserve not less than $55,000,000 for carrying out
section 166;
(B) reserve not less than $70,000,000 for carrying out
section 167; and
(C) reserve not less than $7,300,000 for carrying out
section 168.
(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.
Subtitle E--Administration
SEC. 181. REQUIREMENTS AND RESTRICTIONS.
(a) Benefits.--
(1) Wages.--
(A) In general.--Individuals in on-the-job training or
individuals employed in activities under this title shall be
compensated at the same rates, including periodic increases, as
trainees or employees who are similarly situated in similar
occupations by the same employer and who have similar training,
experience, and skills, and such rates shall be in accordance
with applicable law, but in no event less than the higher of
the rate specified in section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the applicable
State or local minimum wage law.
(B) Rule of construction.--The reference in subparagraph
(A) to section 6(a)(1) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(1))--
(i) shall be deemed to be a reference to section
6(a)(3) of that Act for individuals in American Samoa; and
(ii) shall not be applicable for individuals in other
territorial jurisdictions in which section 6 of the Fair
Labor Standards Act of 1938 does not apply.
(2) Treatment of allowances, earnings, and payments.--
Allowances, earnings, and payments to individuals participating in
programs under this title shall not be considered as income for the
purposes of determining eligibility for and the amount of income
transfer and in-kind aid furnished under any Federal or federally
assisted program based on need, other than as provided under the
Social Security Act (42 U.S.C. 301 et seq.).
(b) Labor Standards.--
(1) Limitations on activities that impact wages of employees.--
No funds provided under this title shall be used to pay the wages
of incumbent employees during their participation in economic
development activities provided through a statewide workforce
investment system.
(2) Displacement.--
(A) Prohibition.--A participant in a program or activity
authorized under this title (referred to in this section as a
``specified activity'') shall not displace (including a partial
displacement, such as a reduction in the hours of nonovertime
work, wages, or employment benefits) any currently employed
employee (as of the date of the participation).
(B) Prohibition on impairment of contracts.--A specified
activity shall not impair an existing contract for services or
collective bargaining agreement, and no such activity that
would be inconsistent with the terms of a collective bargaining
agreement shall be undertaken without the written concurrence
of the labor organization and employer concerned.
(3) Other prohibitions.--A participant in a specified activity
shall not be employed in a job if--
(A) any other individual is on layoff from the same or any
substantially equivalent job;
(B) the employer has terminated the employment of any
regular employee or otherwise reduced the workforce of the
employer with the intention of filling the vacancy so created
with the participant; or
(C) the job is created in a promotional line that will
infringe in any way upon the promotional opportunities of
currently employed individuals (as of the date of the
participation).
(4) Health and safety.--Health and safety standards established
under Federal and State law otherwise applicable to working
conditions of employees shall be equally applicable to working
conditions of participants engaged in specified activities. To the
extent that a State workers' compensation law applies, workers'
compensation shall be provided to participants on the same basis as
the compensation is provided to other individuals in the State in
similar employment.
(5) Employment conditions.--Individuals in on-the-job training
or individuals employed in programs and activities under this
title, shall be provided benefits and working conditions at the
same level and to the same extent as other trainees or employees
working a similar length of time and doing the same type of work.
(6) Opportunity to submit comments.--Interested members of the
public, including representatives of businesses and of labor
organizations, shall be provided an opportunity to submit comments
to the Secretary with respect to programs and activities proposed
to be funded under subtitle B.
(7) No impact on union organizing.--Each recipient of funds
under this title shall provide to the Secretary assurances that
none of such funds will be used to assist, promote, or deter union
organizing.
(c) Grievance Procedure.--
(1) In general.--Each State and local area receiving an
allotment under this title shall establish and maintain a procedure
for grievances or complaints alleging violations of the
requirements of this title from participants and other interested
or affected parties. Such procedure shall include an opportunity
for a hearing and be completed within 60 days after the filing of
the grievance or complaint.
(2) Investigation.--
(A) In general.--The Secretary shall investigate an
allegation of a violation described in paragraph (1) if--
(i) a decision relating to such violation has not been
reached within 60 days after the date of the filing of the
grievance or complaint and either party appeals to the
Secretary; or
(ii) a decision relating to such violation has been
reached within such 60 days and the party to which such
decision is adverse appeals such decision to the Secretary.
(B) Additional requirement.--The Secretary shall make a
final determination relating to an appeal made under
subparagraph (A) no later than 120 days after receiving such
appeal.
(3) Remedies.--Remedies that may be imposed under this section
for a violation of any requirement of this title shall be limited--
(A) to suspension or termination of payments under this
title;
(B) to prohibition of placement of a participant with an
employer that has violated any requirement under this title;
(C) where applicable, to reinstatement of an employee,
payment of lost wages and benefits, and reestablishment of
other relevant terms, conditions, and privileges of employment;
and
(D) where appropriate, to other equitable relief.
(4) Rule of construction.--Nothing in paragraph (3) shall be
construed to prohibit a grievant or complainant from pursuing a
remedy authorized under another Federal, State, or local law for a
violation of this title.
(d) Relocation.--
(1) Prohibition on use of funds to encourage or induce
relocation.--No funds provided under this title shall be used, or
proposed for use, to encourage or induce the relocation of a
business or part of a business if such relocation would result in a
loss of employment for any employee of such business at the
original location and such original location is within the United
States.
(2) Prohibition on use of funds for customized or skill
training and related activities after relocation.--No funds
provided under this title for an employment and training activity
shall be used for customized or skill training, on-the-job
training, or company-specific assessments of job applicants or
employees, for any business or part of a business that has
relocated, until the date that is 120 days after the date on which
such business commences operations at the new location, if the
relocation of such business or part of a business results in a loss
of employment for any employee of such business at the original
location and such original location is within the United States.
(3) Repayment.--If the Secretary determines that a violation of
paragraph (1) or (2) has occurred, the Secretary shall require the
State that has violated such paragraph to repay to the United
States an amount equal to the amount expended in violation of such
paragraph.
(e) 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.
(f) Testing and Sanctioning for Use of Controlled Substances.--
(1) In general.--Notwithstanding any other provision of law, a
State shall not be prohibited by the Federal Government from--
(A) testing participants in programs under subtitle B for
the use of controlled substances; and
(B) sanctioning such participants who test positive for the
use of such controlled substances.
(2) Additional requirements.--
(A) Period of sanction.--In sanctioning participants in
programs under subtitle B who test positive for the use of
controlled substances--
(i) with respect to the first occurrence for which a
participant tests positive, a State may exclude the
participant from the program for a period not to exceed 6
months; and
(ii) with respect to the second occurrence and each
subsequent occurrence for which a participant tests
positive, a State may exclude the participant from the
program for a period not to exceed 2 years.
(B) Appeal.--The testing of participants and the imposition
of sanctions under this subsection shall be subject to
expeditious appeal in accordance with due process procedures
established by the State.
(C) Privacy.--A State shall establish procedures for
testing participants for the use of controlled substances that
ensure a maximum degree of privacy for the participants.
(4) Funding requirement.--In testing and sanctioning of
participants for the use of controlled substances in accordance
with this subsection, the only Federal funds that a State may use
are the amounts made available for the administration of statewide
workforce investment activities under section 134(a)(3)(B).
SEC. 182. PROMPT ALLOCATION OF FUNDS.
(a) Allotments Based on Latest Available Data.--All allotments to
States and grants to outlying areas under this title shall be based on
the latest available data and estimates satisfactory to the Secretary.
All data relating to disadvantaged adults and disadvantaged youth shall
be based on the most recent satisfactory data from the Bureau of the
Census.
(b) Publication in Federal Register Relating to Formula Funds.--
Whenever the Secretary allots funds required to be allotted under this
title, the Secretary shall publish in a timely fashion in the Federal
Register the proposed amount to be distributed to each recipient of the
funds.
(c) Requirement for Funds Distributed by Formula.--All funds
required to be allotted under section 127 or 132 shall be allotted
within 45 days after the date of enactment of the Act appropriating the
funds, except that, if such funds are appropriated in advance as
authorized by section 189(g), such funds shall be allotted or allocated
not later than the March 31 preceding the program year for which such
funds are to be available for obligation.
(d) Publication in Federal Register Relating to Discretionary
Funds.--Whenever the Secretary utilizes a formula to allot or allocate
funds made available for distribution at the Secretary's discretion
under this title, the Secretary shall, not later than 30 days prior to
such allotment or allocation, publish such formula in the Federal
Register for comments along with the rationale for the formula and the
proposed amounts to be distributed to each State and local area. After
consideration of any comments received, the Secretary shall publish
final allotments and allocations in the Federal Register.
(e) Availability of Funds.--Funds shall be made available under
sections 128 and 133 for a local area not later than 30 days after the
date the funds are made available to the Governor involved, under
section 127 or 132 (as the case may be), or 7 days after the date the
local plan for the area is approved, whichever is later.
SEC. 183. MONITORING.
(a) In General.--The Secretary is authorized to monitor all
recipients of financial assistance under this title to determine
whether the recipients are complying with the provisions of this title,
including the regulations issued under this title.
(b) Investigations.--The Secretary may investigate any matter the
Secretary determines to be necessary to determine the compliance of the
recipients with this title, including the regulations issued under this
title. The investigations authorized by this subsection may include
examining records (including making certified copies of the records),
questioning employees, and entering any premises or onto any site in
which any part of a program or activity of such a recipient is
conducted or in which any of the records of the recipient are kept.
(c) Additional Requirement.--For the purpose of any investigation
or hearing conducted under this title by the Secretary, the provisions
of section 9 of the Federal Trade Commission Act (15 U.S.C. 49)
(relating to the attendance of witnesses and the production of
documents) apply to the Secretary, in the same manner and to the same
extent as the provisions apply to the Federal Trade Commission.
SEC. 184. FISCAL CONTROLS; SANCTIONS.
(a) Establishment of Fiscal Controls by States.--
(1) In general.--Each State shall establish such fiscal control
and fund accounting procedures as may be necessary to assure the
proper disbursal of, and accounting for, Federal funds allocated to
local areas under subtitle B. Such procedures shall ensure that all
financial transactions carried out under subtitle B are conducted
and records maintained in accordance with generally accepted
accounting principles applicable in each State.
(2) Cost principles.--
(A) In general.--Each State (including the Governor of the
State), local area (including the chief elected official for
the area), and provider receiving funds under this title shall
comply with the applicable uniform cost principles included in
the appropriate circulars of the Office of Management and
Budget for the type of entity receiving the funds.
(B) Exception.--The funds made available to a State for
administration of statewide workforce investment activities in
accordance with section 134(a)(3)(B) shall be allocable to the
overall administration of workforce investment activities, but
need not be specifically allocable to--
(i) the administration of adult employment and training
activities;
(ii) the administration of dislocated worker employment
and training activities; or
(iii) the administration of youth activities.
(3) Uniform administrative requirements.--
(A) In general.--Each State (including the Governor of the
State), local area (including the chief elected official for
the area), and provider receiving funds under this title shall
comply with the appropriate uniform administrative requirements
for grants and agreements applicable for the type of entity
receiving the funds, as promulgated in circulars or rules of
the Office of Management and Budget.
(B) Additional requirement.--Procurement transactions under
this title between local boards and units of State or local
governments shall be conducted only on a cost-reimbursable
basis.
(4) Monitoring.--Each Governor of a State shall conduct on an
annual basis onsite monitoring of each local area within the State
to ensure compliance with the uniform administrative requirements
referred to in paragraph (3).
(5) Action by governor.--If the Governor determines that a
local area is not in compliance with the uniform administrative
requirements referred to in paragraph (3), the Governor shall--
(A) require corrective action to secure prompt compliance;
and
(B) impose the sanctions provided under subsection (b) in
the event of failure to take the required corrective action.
(6) Certification.--The Governor shall, every 2 years, certify
to the Secretary that--
(A) the State has implemented the uniform administrative
requirements referred to in paragraph (3);
(B) the State has monitored local areas to ensure
compliance with the uniform administrative requirements as
required under paragraph (4); and
(C) the State has taken appropriate action to secure
compliance pursuant to paragraph (5).
(7) Action by the secretary.--If the Secretary determines that
the Governor has not fulfilled the requirements of this subsection,
the Secretary shall--
(A) require corrective action to secure prompt compliance;
and
(B) impose the sanctions provided under subsection (e) in
the event of failure of the Governor to take the required
appropriate action to secure compliance.
(b) Substantial Violation.--
(1) Action by governor.--If, as a result of financial and
compliance audits or otherwise, the Governor determines that there
is a substantial violation of a specific provision of this title,
and corrective action has not been taken, the Governor shall--
(A) issue a notice of intent to revoke approval of all or
part of the local plan affected; or
(B) impose a reorganization plan, which may include--
(i) decertifying the local board involved;
(ii) prohibiting the use of eligible providers;
(iii) selecting an alternative entity to administer the
program for the local area involved;
(iv) merging the local area into one or more other
local areas; or
(v) making other such changes as the Secretary or
Governor determines necessary to secure compliance.
(2) Appeal.--
(A) In general.--The actions taken by the Governor pursuant
to subparagraphs (A) and (B) of paragraph (1) may be appealed
to the Secretary and shall not become effective until--
(i) the time for appeal has expired; or
(ii) the Secretary has issued a decision.
(B) Additional requirement.--The Secretary shall make a
final decision under subparagraph (A) not later than 45 days
after the receipt of the appeal.
(3) Action by the secretary.--If the Governor fails to promptly
take the actions required under paragraph (1), the Secretary shall
take such actions.
(c) Repayment of Certain Amounts to the United States.--
(1) In general.--Every recipient of funds under this title
shall repay to the United States amounts found not to have been
expended in accordance with this title.
(2) Offset of repayment.--If the Secretary determines that a
State has expended funds made available under this title in a
manner contrary to the requirements of this title, the Secretary
may offset repayment of such expenditures against any other amount
to which the State is or may be entitled, except as provided under
subsection (d)(1).
(3) Repayment from deduction by state.--If the Secretary
requires a State to repay funds as a result of a determination that
a local area of the State has expended funds contrary to the
requirements of this title, the Governor of the State may use an
amount deducted under paragraph (4) to repay the funds, except as
provided under subsection (e)(1).
(4) Deduction by state.--The Governor may deduct an amount
equal to the misexpenditure described in paragraph (3) from
subsequent program year allocations to the local area from funds
reserved for the administrative costs of the local programs
involved, as appropriate.
(5) Limitations.--A deduction made by a State as described in
paragraph (4) shall not be made until such time as the Governor has
taken appropriate corrective action to ensure full compliance
within such local area with regard to appropriate expenditures of
funds under this title.
(d) Repayment of Amounts.--
(1) In general.--Each recipient of funds under this title shall
be liable to repay the amounts described in subsection (c)(1), from
funds other than funds received under this title, upon a
determination by the Secretary that the misexpenditure of funds was
due to willful disregard of the requirements of this title, gross
negligence, failure to observe accepted standards of
administration, or a pattern of misexpenditure as described in
paragraphs (2) and (3) of subsection (c). No such determination
shall be made under this subsection or subsection (c) until notice
and opportunity for a fair hearing has been given to the recipient.
(2) Factors in imposing sanctions.--In determining whether to
impose any sanction authorized by this section against a recipient
for violations by a subgrantee or contractor of such recipient
under this title (including the regulations issued under this
title), the Secretary shall first determine whether such recipient
has adequately demonstrated that the recipient has--
(A) established and adhered to an appropriate system for
the award and monitoring of grants and contracts with
subgrantees and contractors that contains acceptable standards
for ensuring accountability;
(B) entered into a written grant agreement or contract with
such subgrantee or contractor that established clear goals and
obligations in unambiguous terms;
(C) acted with due diligence to monitor the implementation
of the grant agreement or contract, including the carrying out
of the appropriate monitoring activities (including audits) at
reasonable intervals; and
(D) taken prompt and appropriate corrective action upon
becoming aware of any evidence of a violation of this title,
including regulations issued under this title, by such
subgrantee or contractor.
(3) Waiver.--If the Secretary determines that the recipient has
demonstrated substantial compliance with the requirements of
paragraph (2), the Secretary may waive the imposition of sanctions
authorized by this section upon such recipient. The Secretary is
authorized to impose any sanction consistent with the provisions of
this title and any applicable Federal or State law directly against
any subgrantee or contractor for violation of this title, including
regulations issued under this title.
(e) Immediate Termination or Suspension of Assistance in Emergency
Situations.--In emergency situations, if the Secretary determines it is
necessary to protect the integrity of the funds or ensure the proper
operation of the program or activity involved, the Secretary may
immediately terminate or suspend financial assistance, in whole or in
part, to the recipient if the recipient is given prompt notice and the
opportunity for a subsequent hearing within 30 days after such
termination or suspension. The Secretary shall not delegate any of the
functions or authority specified in this subsection, other than to an
officer whose appointment is required to be made by and with the advice
and consent of the Senate.
(f) Discrimination Against Participants.--If the Secretary
determines that any recipient under this title has discharged or in any
other manner discriminated against a participant or against any
individual in connection with the administration of the program
involved, or against any individual because such individual has filed
any complaint or instituted or caused to be instituted any proceeding
under or related to this title, or has testified or is about to testify
in any such proceeding or investigation under or related to this title,
or otherwise unlawfully denied to any individual a benefit to which
that individual is entitled under the provisions of this title or the
Secretary's regulations, the Secretary shall, within 30 days, take such
action or order such corrective measures, as necessary, with respect to
the recipient or the aggrieved individual, or both.
(g) Remedies.--The remedies described in this section shall not be
construed to be the exclusive remedies available for violations
described in this section.
SEC. 185. REPORTS; RECORDKEEPING; INVESTIGATIONS.
(a) Reports.--
(1) In general.--Recipients of funds under this title shall
keep records that are sufficient to permit the preparation of
reports required by this title and to permit the tracing of funds
to a level of expenditure adequate to ensure that the funds have
not been spent unlawfully.
(2) Submission to the secretary.--Every such recipient shall
maintain such records and submit such reports, in such form and
containing such information, as the Secretary may require regarding
the performance of programs and activities carried out under this
title. Such records and reports shall be submitted to the Secretary
but shall not be required to be submitted more than once each
quarter unless specifically requested by Congress or a committee of
Congress, in which case an estimate may be provided.
(3) Maintenance of standardized records.--In order to allow for
the preparation of the reports required under subsection (c), such
recipients shall maintain standardized records for all individual
participants and provide to the Secretary a sufficient number of
such records to provide for an adequate analysis of the records.
(4) Availability to the public.--
(A) In general.--Except as provided in subparagraph (B),
records maintained by such recipients pursuant to this
subsection shall be made available to the public upon request.
(B) Exception.--Subparagraph (A) shall not apply to--
(i) information, the disclosure of which would
constitute a clearly unwarranted invasion of personal
privacy; and
(ii) trade secrets, or commercial or financial
information, that is obtained from a person and privileged
or confidential.
(C) Fees to recover costs.--Such recipients may charge fees
sufficient to recover costs applicable to the processing of
requests for records under subparagraph (A).
(b) Investigations of Use of Funds.--
(1) In general.--
(A) Secretary.--In order to evaluate compliance with the
provisions of this title, the Secretary shall conduct, in
several States, in each fiscal year, investigations of the use
of funds received by recipients under this title.
(B) Comptroller general of the united states.--In order to
ensure compliance with the provisions of this title, the
Comptroller General of the United States may conduct
investigations of the use of funds received under this title by
any recipient.
(2) Prohibition.--In conducting any investigation under this
title, the Secretary or the Comptroller General of the United
States may not request the compilation of any information that the
recipient is not otherwise required to compile and that is not
readily available to such recipient.
(3) Audits.--
(A) In general.--In carrying out any audit under this title
(other than any initial audit survey or any audit investigating
possible criminal or fraudulent conduct), either directly or
through grant or contract, the Secretary, the Inspector General
of the Department of Labor, or the Comptroller General of the
United States shall furnish to the State, recipient, or other
entity to be audited, advance notification of the overall
objectives and purposes of the audit, and any extensive
recordkeeping or data requirements to be met, not later than 14
days (or as soon as practicable), prior to the commencement of
the audit.
(B) Notification requirement.--If the scope, objectives, or
purposes of the audit change substantially during the course of
the audit, the entity being audited shall be notified of the
change as soon as practicable.
(C) Additional requirement.--The reports on the results of
such audits shall cite the law, regulation, policy, or other
criteria applicable to any finding contained in the reports.
(D) Rule of construction.--Nothing contained in this title
shall be construed so as to be inconsistent with the Inspector
General Act of 1978 (5 U.S.C. App.) or government auditing
standards issued by the Comptroller General of the United
States.
(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.
(d) Information To Be Included in Reports.--
(1) In general.--The reports required in subsection (c) shall
include information regarding programs and activities carried out
under this title pertaining to--
(A) the relevant demographic characteristics (including
race, ethnicity, sex, and age) and other related information
regarding participants;
(B) the programs and activities in which participants are
enrolled, and the length of time that participants are engaged
in such programs and activities;
(C) outcomes of the programs and activities for
participants, including the occupations of participants, and
placement for participants in nontraditional employment;
(D) specified costs of the programs and activities; and
(E) information necessary to prepare reports to comply with
section 188.
(2) Additional requirement.--The Secretary shall ensure that
all elements of the information required for the reports described
in paragraph (1) are defined and reported uniformly.
(e) Quarterly Financial Reports.--
(1) In general.--Each local board in the State shall submit
quarterly financial reports to the Governor with respect to
programs and activities carried out under this title. Such reports
shall include information identifying all program and activity
costs by cost category in accordance with generally accepted
accounting principles and by year of the appropriation involved.
(2) Additional requirement.--Each State shall submit to the
Secretary, on a quarterly basis, a summary of the reports submitted
to the Governor pursuant to paragraph (1).
(f) Maintenance of Additional Records.--Each State and local board
shall maintain records with respect to programs and activities carried
out under this title that identify--
(1) any income or profits earned, including such income or
profits earned by subrecipients; and
(2) any costs incurred (such as stand-in costs) that are
otherwise allowable except for funding limitations.
(g) Cost Categories.--In requiring entities to maintain records of
costs by category under this title, the Secretary shall require only
that the costs be categorized as administrative or programmatic costs.
SEC. 186. ADMINISTRATIVE ADJUDICATION.
(a) In General.--Whenever any applicant for financial assistance
under this title is dissatisfied because the Secretary has made a
determination not to award financial assistance in whole or in part to
such applicant, the applicant may request a hearing before an
administrative law judge of the Department of Labor. A similar hearing
may also be requested by any recipient for whom a corrective action has
been required or a sanction has been imposed by the Secretary under
section 184.
(b) Appeal.--The decision of the administrative law judge shall
constitute final action by the Secretary unless, within 20 days after
receipt of the decision of the administrative law judge, a party
dissatisfied with the decision or any part of the decision has filed
exceptions with the Secretary specifically identifying the procedure,
fact, law, or policy to which exception is taken. Any exception not
specifically urged shall be deemed to have been waived. After the 20-
day period the decision of the administrative law judge shall become
the final decision of the Secretary unless the Secretary, within 30
days after such filing, has notified the parties that the case involved
has been accepted for review.
(c) Time Limit.--Any case accepted for review by the Secretary
under subsection (b) shall be decided within 180 days after such
acceptance. If the case is not decided within the 180-day period, the
decision of the administrative law judge shall become the final
decision of the Secretary at the end of the 180-day period.
(d) Additional Requirement.--The provisions of section 187 shall
apply to any final action of the Secretary under this section.
SEC. 187. JUDICIAL REVIEW.
(a) Review.--
(1) Petition.--With respect to any final order by the Secretary
under section 186 by which the Secretary awards, declines to award,
or only conditionally awards, financial assistance under his title,
or any final order of the Secretary under section 186 with respect
to a corrective action or sanction imposed under section 184, any
party to a proceeding which resulted in such final order may obtain
review of such final order in the United States Court of Appeals
having jurisdiction over the applicant or recipient of funds
involved, by filing a review petition within 30 days after the date
of issuance of such final order.
(2) Action on petition.--The clerk of the court shall transmit
a copy of the review petition to the Secretary who shall file the
record on which the final order was entered as provided in section
2112 of title 28, United States Code. The filing of a review
petition shall not stay the order of the Secretary, unless the
court orders a stay. Petitions filed under this subsection shall be
heard expeditiously, if possible within 10 days after the date of
filing of a reply to the petition.
(3) Standard and scope of review.--No objection to the order of
the Secretary shall be considered by the court unless the objection
was specifically urged, in a timely manner, before the Secretary.
The review shall be limited to questions of law and the findings of
fact of the Secretary shall be conclusive if supported by
substantial evidence.
(b) Judgment.--The court shall have jurisdiction to make and enter
a decree affirming, modifying, or setting aside the order of the
Secretary in whole or in part. The judgment of the court regarding the
order shall be final, subject to certiorari review by the Supreme Court
as provided in section 1254(1) of title 28, United States Code.
SEC. 188. NONDISCRIMINATION.
(a) In General.--
(1) Federal financial assistance.--For the purpose of applying
the prohibitions against discrimination on the basis of age under
the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), on the
basis of disability under section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794), on the basis of sex under title IX of the
Education Amendments of 1972 (20 U.S.C. 1681 et seq.), or on the
basis of race, color, or national origin under title VI of the
Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), programs and
activities funded or otherwise financially assisted in whole or in
part under this Act are considered to be programs and activities
receiving Federal financial assistance.
(2) Prohibition of discrimination regarding participation,
benefits, and employment.--No individual shall be excluded from
participation in, denied the benefits of, subjected to
discrimination under, or denied employment in the administration of
or in connection with, any such program or activity because of
race, color, religion, sex (except as otherwise permitted under
title IX of the Education Amendments of 1972), national origin,
age, disability, or political affiliation or belief.
(3) Prohibition on assistance for facilities for sectarian
instruction or religious worship.--Participants shall not be
employed under this title to carry out the construction, operation,
or maintenance of any part of any facility that is used or to be
used for sectarian instruction or as a place for religious worship
(except with respect to the maintenance of a facility that is not
primarily or inherently devoted to sectarian instruction or
religious worship, in a case in which the organization operating
the facility is part of a program or activity providing services to
participants).
(4) Prohibition on discrimination on basis of participant
status.--No person may discriminate against an individual who is a
participant in a program or activity that receives funds under this
title, with respect to the terms and conditions affecting, or
rights provided to, the individual, solely because of the status of
the individual as a participant.
(5) Prohibition on discrimination against certain
noncitizens.--Participation in programs and activities or receiving
funds under this title shall be available to citizens and nationals
of the United States, lawfully admitted permanent resident aliens,
refugees, asylees, and parolees, and other immigrants authorized by
the Attorney General to work in the United States.
(b) Action of Secretary.--Whenever the Secretary finds that a State
or other recipient of funds under this title has failed to comply with
a provision of law referred to in subsection (a)(1), or with paragraph
(2), (3), (4), or (5) of subsection (a), including an applicable
regulation prescribed to carry out such provision or paragraph, the
Secretary shall notify such State or recipient and shall request that
the State or recipient comply. If within a reasonable period of time,
not to exceed 60 days, the State or recipient fails or refuses to
comply, the Secretary may--
(1) refer the matter to the Attorney General with a
recommendation that an appropriate civil action be instituted;
or
(2) take such other action as may be provided by law.
(c) Action of Attorney General.--When a matter is referred to the
Attorney General pursuant to subsection (b)(1), or whenever the
Attorney General has reason to believe that a State or other recipient
of funds under this title is engaged in a pattern or practice of
discrimination in violation of a provision of law referred to in
subsection (a)(1) or in violation of paragraph (2), (3), (4), or (5) of
subsection (a), the Attorney General may bring a civil action in any
appropriate district court of the United States for such relief as may
be appropriate, including injunctive relief.
(d) Job Corps.--For the purposes of this section, Job Corps members
shall be considered as the ultimate beneficiaries of Federal financial
assistance.
(e) Regulations.--The Secretary shall issue regulations necessary
to implement this section not later than one year after the date of the
enactment of the Workforce Investment Act of 1998. Such regulations
shall adopt standards for determining discrimination and procedures for
enforcement that are consistent with the Acts referred to in a
subsection (a)(1), as well as procedures to ensure that complaints
filed under this section and such Acts are processed in a manner that
avoids duplication of effort.
SEC. 189. ADMINISTRATIVE PROVISIONS.
(a) In General.--The Secretary may, in accordance with chapter 5 of
title 5, United States Code, prescribe rules and regulations to carry
out this title only to the extent necessary to administer and ensure
compliance with the requirements of this title. Such rules and
regulations may include provisions making adjustments authorized by
section 204 of the Intergovernmental Cooperation Act of 1968. All such
rules and regulations shall be published in the Federal Register at
least 30 days prior to their effective dates. Copies of each such rule
or regulation shall be transmitted to the appropriate committees of
Congress on the date of such publication and shall contain, with
respect to each material provision of such rule or regulation, a
citation to the particular substantive section of law that is the basis
for the provision.
(b) Acquisition of Certain Property and Services.--The Secretary is
authorized, in carrying out this title, to accept, purchase, or lease
in the name of the Department of Labor, and employ or dispose of in
furtherance of the purposes of this title, any money or property, real,
personal, or mixed, tangible or intangible, received by gift, devise,
bequest, or otherwise, and to accept voluntary and uncompensated
services notwithstanding the provisions of section 1342 of title 31,
United States Code.
(c) Authority To Enter Into Certain Agreements and To Make Certain
Expenditures.--The Secretary may make such grants, enter into such
contracts or agreements, establish such procedures, and make such
payments, in installments and in advance or by way of reimbursement, or
otherwise allocate or expend such funds under this title, as may be
necessary to carry out this title, including making expenditures for
construction, repairs, and capital improvements, and including making
necessary adjustments in payments on account of over-payments or
underpayments.
(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--
(1) a summary of the achievements, failures, and problems of
the programs and activities in meeting the objectives of this
title;
(2) a summary of major findings from research, evaluations,
pilot projects, and experiments conducted under this title in the
fiscal year prior to the submission of the report;
(3) recommendations for modifications in the programs and
activities based on analysis of such findings; and
(4) such other recommendations for legislative or
administrative action as the Secretary determines to be
appropriate.
(e) Utilization of Services and Facilities.--The Secretary is
authorized, in carrying out this title, under the same procedures as
are applicable under subsection (c) or to the extent permitted by law
other than this title, to accept and use the services and facilities of
departments, agencies, and establishments of the United States. The
Secretary is also authorized, in carrying out this title, to accept and
use the services and facilities of the agencies of any State or
political subdivision of a State, with the consent of the State or
political subdivision.
(f) Obligational Authority.--Notwithstanding any other provision of
this title, the Secretary shall have no authority to enter into
contracts, grant agreements, or other financial assistance agreements
under this title except to such extent and in such amounts as are
provided in advance in appropriations Acts.
(g) Program Year.--
(1) In general.--
(A) Program year.--Except as provided in subparagraph (B),
appropriations for any fiscal year for programs and activities
carried out under this title shall be available for obligation
only on the basis of a program year. The program year shall
begin on July 1 in the fiscal year for which the appropriation
is made.
(B) Youth activities.--The Secretary may make available for
obligation, beginning April 1 of any fiscal year, funds
appropriated for such fiscal year to carry out youth activities
under subtitle B.
(2) Availability.--Funds obligated for any program year for a
program or activity carried out under this title may be expended by
each State receiving 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.
(h) Enforcement of Military Selective Service Act.--The Secretary
shall ensure that each individual participating in any program or
activity established under this title, or receiving any assistance or
benefit under this title, has not violated section 3 of the Military
Selective Service Act (50 U.S.C. App. 453) by not presenting and
submitting to registration as required pursuant to such section. The
Director of the Selective Service System shall cooperate with the
Secretary to enable the Secretary to carry out this subsection.
(i) Waivers and Special Rules.--
(1) Existing waivers.--With respect to a State that has been
granted a waiver under the provisions relating to training and
employment services of the Department of Labor in title I of the
Departments of Labor, Health and Human Services, and Education, and
Related Agencies Appropriations Act, 1997 (Public Law 104-208; 110
Stat. 3009-234), the authority provided under such waiver shall
continue in effect and apply, and include a waiver of the related
provisions of subtitle B and this subtitle, for the duration of the
initial waiver.
(2) Special rule regarding designated areas.--A State that has
enacted, not later than December 31, 1997, a State law providing
for the designation of service delivery areas for the delivery of
workforce investment activities, may use such areas as local areas
under this title, notwithstanding section 116.
(3) Special rule regarding sanctions.--A State that enacts, not
later than December 31, 1997, a State law providing for the
sanctioning of such service delivery areas for failure to meet
performance measures for workforce investment activities, may use
the State law to sanction local areas for failure to meet State
performance measures under this title.
(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, and procedures for review
and approval of plans); and
(ii) any of the statutory or regulatory requirements of
sections 8 through 10 of the Wagner-Peyser Act (29 U.S.C.
49g through 49i) (excluding requirements relating to the
provision of services to unemployment insurance claimants
and veterans, and requirements relating to universal access
to basic labor exchange services without cost to jobseekers).
(B) Requests.--A Governor requesting a waiver under
subparagraph (A) shall submit a plan to the Secretary to
improve the statewide workforce investment system that--
(i) identifies the statutory or regulatory requirements
that are requested to be waived and the goals that the
State or local area in the State, as appropriate, intends
to achieve as a result of the waiver;
(ii) describes the actions that the State or local
area, as appropriate, has undertaken to remove State or
local statutory or regulatory barriers;
(iii) describes the goals of the waiver and the
expected programmatic outcomes if the request is granted;
(iv) describes the individuals impacted by the waiver; and
(v) describes the process used to monitor the progress
in implementing such a waiver, and the process by which
notice and an opportunity to comment on such request has
been provided to the local board.
(C) Conditions.--Not later than 90 days after the date of
the original submission of a request for a waiver under
subparagraph (A), the Secretary shall provide a waiver under
this paragraph if and only to the extent that--
(i) the Secretary determines that the requirements
requested to be waived impede the ability of the State or
local area, as appropriate, to implement the plan described
in subparagraph (B); and
(ii) the State has executed a memorandum of
understanding with the Secretary requiring such State to
meet, or ensure that the local area meets, agreed-upon
outcomes and to implement other appropriate measures to
ensure accountability.
SEC. 190. REFERENCE.
Effective on the date of the enactment of the Workforce Investment
Act of 1998, all references in any other provision of law (other than
section 665 of title 18, United States Code) to the Comprehensive Employment
and Training Act, or to the Job Training Partnership Act, as the case may be,
shall be deemed to refer to the ``Workforce Investment Act of 1998.''.
SEC. 191. STATE LEGISLATIVE AUTHORITY.
(a) Authority of State Legislature.--Nothing in this title shall be
interpreted to preclude the enactment of State legislation providing
for the implementation, consistent with the provisions of this title,
of the activities assisted under this title. Any funds received by a
State under this title shall be subject to appropriation by the State
legislature, consistent with the terms and conditions required under
this title.
(b) Interstate Compacts and Cooperative Agreements.--In the event
that compliance with provisions of this title would be enhanced by
compacts and cooperative agreements between States, the consent of
Congress is given to States to enter into such compacts and agreements
to facilitate such compliance, subject to the approval of the
Secretary.
SEC. 192. WORKFORCE FLEXIBILITY PLANS.
(a) Plans.--A State may submit to the Secretary, and the Secretary
may approve, a workforce flexibility plan under which the State is
authorized to waive, in accordance with the plan--
(1) any of the statutory or regulatory requirements applicable
under this title to local areas, pursuant to applications for such
waivers from the local areas, except for requirements relating to
the basic purposes of this title, wage and labor standards,
grievance procedures and judicial review, nondiscrimination,
eligibility of participants, allocation of funds to local areas,
establishment and functions of local areas and local boards, review
and approval of local plans, and worker rights, participation, and
protection;
(2) any of the statutory or regulatory requirements applicable
under sections 8 through 10 of the Wagner-Peyser Act (29 U.S.C. 49g
through 49i), to the State, except for requirements relating to the
provision of services to unemployment insurance claimants and
veterans, and to universal access to basic labor exchange services
without cost to jobseekers; and
(3) any of the statutory or regulatory requirements applicable
under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.), to
State agencies on aging with respect to activities carried out
using funds allotted under section 506(a)(3) of such Act (42 U.S.C.
3056d(a)(3)), except for requirements relating to the basic
purposes of such Act, wage and labor standards, eligibility of
participants in the activities, and standards for agreements.
(b) Content of Plans.--A workforce flexibility plan implemented by
a State under subsection (a) shall include descriptions of--
(1)(A) the process by which local areas in the State may submit
and obtain approval by the State of applications for waivers of
requirements applicable under this title; and
(B) the requirements described in subparagraph (A) that are
likely to be waived by the State under the plan;
(2) the requirements applicable under sections 8 through 10 of
the Wagner-Peyser Act that are proposed to be waived, if any;
(3) the requirements applicable under the Older Americans Act
of 1965 that are proposed to be waived, if any;
(4) the outcomes to be achieved by the waivers described in
paragraphs (1) through (3); and
(5) other measures to be taken to ensure appropriate
accountability for Federal funds in connection with the waivers.
(c) Periods.--The Secretary may approve a workforce flexibility
plan for a period of not more than 5 years.
(d) Opportunity for Public Comments.--Prior to submitting a
workforce flexibility plan to the Secretary for approval, the State
shall provide to all interested parties and to the general public
adequate notice and a reasonable opportunity for comment on the waiver
requests proposed to be implemented pursuant to such plan.
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. 194. CONTINUATION OF STATE ACTIVITIES AND POLICIES.
(a) In General.--Notwithstanding any other provision of this title,
the Secretary may not deny approval of a State plan for a covered
State, or an application of a covered State for financial assistance,
under this title or find a covered State (including a State board or
Governor), or a local area (including a local board or chief elected
official) in a covered State, in violation of a provision of this
title, on the basis that--
(1)(A) the State proposes to allocate or disburse, allocates,
or disburses, within the State, funds made available to the State
under section 127 or 132 in accordance with the allocation formula
for the type of activities involved, or in accordance with a
disbursal procedure or process, used by the State under prior
consistent State laws; or
(B) a local board in the State proposes to disburse, or
disburses, within the local area, funds made available to a State
under section 127 or 132 in accordance with a disbursal procedure
or process used by a private industry council under prior
consistent State law;
(2) the State proposes to carry out or carries out a State
procedure through which local areas use, as fiscal agents for funds
made available to the State under section 127 or 132 and allocated
within the State, fiscal agents selected in accordance with a
process established under prior consistent State laws;
(3) the State proposes to carry out or carries out a State
procedure through which the local board in the State (or the local
boards, the chief elected officials in the State, and the Governor)
designate or select the one-stop partners and one-stop operators of
the statewide system in the State under prior consistent State
laws, in lieu of making the designation, or certification described
in section 121 (regardless of the date the one-stop delivery
systems involved have been established);
(4) the State proposes to carry out or carries out a State
procedure through which the persons responsible for selecting
eligible providers for purposes of subtitle B are permitted to
determine that a provider shall not be selected to provide both
intake services under section 134(d)(2) and training services under
section 134(d)(4), under prior consistent State laws;
(5) the State proposes to designate or designates a State
board, or proposes to assign or assigns functions and roles of the
State board (including determining the time periods for development
and submission of a State plan required under section 112), for
purposes of subtitle B in accordance with prior consistent State
laws; or
(6) a local board in the State proposes to use or carry out,
uses, or carries out a local plan (including assigning functions
and roles of the local board) for purposes of subtitle B in
accordance with the authorities and requirements applicable to
local plans and private industry councils under prior consistent
State laws.
(b) Definition.--In this section:
(1) Covered state.--The term ``covered State'' means a State
that enacted State laws described in paragraph (2).
(2) Prior consistent state laws.--The term ``prior consistent
State laws'' means State laws, not inconsistent with the Job Training
Partnership Act or any other applicable Federal law, that took effect
on September 1, 1993, September 1, 1995, and September 1, 1997.
SEC. 195. GENERAL PROGRAM REQUIREMENTS.
Except as otherwise provided in this title, the following
conditions are applicable to all programs under this title:
(1) Each program under this title shall provide employment and
training opportunities to those who can benefit from, and who are
most in need of, such opportunities. In addition, efforts shall be
made to develop programs which contribute to occupational
development, upward mobility, development of new careers, and
opportunities for nontraditional employment.
(2) Funds provided under this title shall only be used for
activities that are in addition to those that would otherwise be
available in the local area in the absence of such funds.
(3)(A) Any local area may enter into an agreement with another
local area (including a local area that is a city or county within
the same labor market) to pay or share the cost of educating,
training, or placing individuals participating in programs assisted
under this title, including the provision of supportive services.
(B) Such agreement shall be approved by each local board
providing guidance to the local area and shall be described in the
local plan under section 118.
(4) On-the-job training contracts under this title shall not be
entered into with employers who have received payments under
previous contracts and have exhibited a pattern of failing to
provide on-the-job training participants with continued long-term
employment as regular employees with wages and employment benefits
(including health benefits) and working conditions at the same
level and to the same extent as other employees working a similar
length of time and doing the same type of work.
(5) No person or organization may charge an individual a fee
for the placement or referral of the individual in or to a
workforce investment activity under this title.
(6) The Secretary shall not provide financial assistance for
any program under this title that involves political activities.
(7)(A) Income under any program administered by a public or
private nonprofit entity may be retained by such entity only if
such income is used to continue to carry out the program.
(B) Income subject to the requirements of subparagraph (A)
shall include--
(i) receipts from goods or services (including conferences)
provided as a result of activities funded under this title;
(ii) funds provided to a service provider under this title
that are in excess of the costs associated with the services
provided; and
(iii) interest income earned on funds received under this
title.
(C) For purposes of this paragraph, each entity receiving
financial assistance under this title shall maintain records
sufficient to determine the amount of such income received and the
purposes for which such income is expended.
(8)(A) The Secretary shall notify the Governor and the
appropriate local board and chief elected official of, and consult
with the Governor and such board and official concerning, any
activity to be funded by the Secretary under this title within the
corresponding State or local area.
(B) The Governor shall notify the appropriate local board and
chief elected official of, and consult with such board and official
concerning, any activity to be funded by the Governor under this
title within the corresponding local area.
(9)(A) All education programs for youth supported with funds
provided under chapter 4 of subtitle B shall be consistent with
applicable State and local educational standards.
(B) Standards and procedures with respect to awarding academic
credit and certifying educational attainment in programs conducted
under such chapter shall be consistent with the requirements of
applicable State and local law, including regulation.
(10) No funds available under this title may be used for public
service employment except as specifically authorized under this
title.
(11) The Federal requirements governing the title, use, and
disposition of real property, equipment, and supplies purchased
with funds provided under this title shall be the Federal
requirements generally applicable to Federal grants to States and
local governments.
(12) Nothing in this title shall be construed to provide an
individual with an entitlement to a service under this title.
(13) Services, facilities, or equipment funded under this title
may be used, as appropriate, on a fee-for-service basis, by
employers in a local area in order to provide employment and
training activities to incumbent workers--
(A) when such services, facilities, or equipment are not in
use for the provision of services for eligible participants
under this title;
(B) if such use for incumbent workers would not have an
adverse affect on the provision of services to eligible
participants under this title; and
(C) if the income derived from such fees is used to carry
out the programs authorized under this title.
Subtitle F--Repeals and Conforming Amendments
SEC. 199. REPEALS.
(a) General Immediate Repeals.--The following provisions are
repealed:
(1) Section 204 of the Immigration Reform and Control Act of
1986 (8 U.S.C. 1255a note).
(2) Title II of Public Law 95-250 (92 Stat. 172).
(3) The Displaced Homemakers Self-Sufficiency Assistance Act
(29 U.S.C. 2301 et seq.).
(4) Section 211 of the Appalachian Regional Development Act of
1965 (40 U.S.C. App. 211).
(5) Subtitle C of title VII of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11441 et seq.), except section 738 of
such title (42 U.S.C. 11448).
(6) Subchapter I of chapter 421 of title 49, United States
Code.
(b) Subsequent Repeals.--The following provisions are repealed:
(1) Title VII of the Stewart B. McKinney Homeless Assistance
Act (42 U.S.C. 11421 et seq.), except subtitle B and section 738 of
such title (42 U.S.C. 11431 et seq. and 11448).
(2) The Job Training Partnership Act (29 U.S.C. 1501 et seq.).
(c) Effective Dates.--
(1) Immediate repeals.--The repeals made by subsection (a)
shall take effect on the date of enactment of this Act.
(2) Subsequent repeals.--
(A) Stewart B. McKinney Homeless Assistance Act.--The repeal
made by subsection (b)(1) shall take effect on July 1, 1999.
(B) Job Training Partnership Act.--The repeal made by
subsection (b)(2) shall take effect on July 1, 2000.
SEC. 199A. CONFORMING AMENDMENTS.
(a) Preparation.--After consultation with the appropriate
committees of Congress and the Director of the Office of Management and
Budget, the Secretary shall prepare recommended legislation containing
technical and conforming amendments to reflect the changes made by this
subtitle.
(b) Submission to Congress.--Not later than 6 months after the date
of enactment of this Act, the Secretary shall submit to Congress the
recommended legislation referred to under subsection (a).
(c) References.--All references in any other provision of law to a
provision of the Comprehensive Employment and Training Act, or of the
Job Training Partnership Act, as the case may be, shall be deemed to
refer to the corresponding provision of this title.
TITLE II--ADULT EDUCATION AND LITERACY
SEC. 201. SHORT TITLE.
This title may be cited as the ``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.
SEC. 203. DEFINITIONS.
In this subtitle:
(1) Adult education.--The term ``adult education'' means
services or instruction below the postsecondary level for
individuals--
(A) who have attained 16 years of age;
(B) who are not enrolled or required to be enrolled in
secondary school under State law; and
(C) who--
(i) lack sufficient mastery of basic educational skills
to enable the individuals to function effectively in
society;
(ii) do not have a secondary school diploma or its
recognized equivalent, and have not achieved an equivalent
level of education; or
(iii) are unable to speak, read, or write the English
language.
(2) Adult education and literacy activities.--The term ``adult
education and literacy activities'' means activities described in
section 231(b).
(3) Educational service agency.--The term ``educational service
agency'' means a regional public multiservice agency authorized by
State statute to develop and manage a service or program, and to
provide the service or program to a local educational agency.
(4) Eligible agency.--The term ``eligible agency'' means the
sole entity or agency in a State or an outlying area responsible
for administering or supervising policy for adult education and
literacy in the State or outlying area, respectively, consistent
with the law of the State or outlying area, respectively.
(5) Eligible provider.--The term ``eligible provider'' means--
(A) a local educational agency;
(B) a community-based organization of demonstrated
effectiveness;
(C) a volunteer literacy organization of demonstrated
effectiveness;
(D) an institution of higher education;
(E) a public or private nonprofit agency;
(F) a library;
(G) a public housing authority;
(H) a nonprofit institution that is not described in any of
subparagraphs (A) through (G) and has the ability to provide
literacy services to adults and families; and
(I) a consortium of the agencies, organizations,
institutions, libraries, or authorities described in any of
subparagraphs (A) through (H).
(6) English literacy program.--The term ``English literacy
program'' means a program of instruction designed to help
individuals of limited English proficiency achieve competence in
the English language.
(7) 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) Governor.--The term ``Governor'' means the chief executive
officer of a State or outlying area.
(9) 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) 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) Institution of higher education.--The term ``institution
of higher education'' has the meaning given the term in section
1201 of the Higher Education Act of 1965 (20 U.S.C. 1141).
(12) 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) Local educational agency.--The term ``local educational
agency'' has the meaning given the term in section 14101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
(14) Outlying area.--The term ``outlying area'' has the meaning
given the term in section 101.
(15) 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) Secretary.--The term ``Secretary'' means the Secretary of
Education.
(17) 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) 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.
SEC. 204. HOME SCHOOLS.
Nothing in this subtitle 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. 205. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this subtitle
such sums as may be necessary for each of the fiscal years 1999 through
2003.
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.
(b) Grants to Eligible Agencies.--
(1) In general.--From the sum appropriated under section 205
and not reserved under subsection (a) for a fiscal year, the
Secretary shall award a grant to each eligible agency having a
State plan approved under section 224 in an amount equal to the sum
of the initial allotment under subsection (c)(1) and the additional
allotment under subsection (c)(2) for the eligible agency for the
fiscal year, subject to subsections (f) and (g), to enable the
eligible agency to carry out the activities assisted under this
subtitle.
(2) Purpose of grants.--The Secretary may award a grant under
paragraph (1) only if the eligible entity involved agrees to expend
the grant for adult education and literacy activities in accordance
with the provisions of this subtitle.
(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, in the case of any other eligible agency.
(2) Additional allotments.--From the sum appropriated under
section 205, not reserved under subsection (a), and not allotted
under paragraph (1), for a fiscal year, the Secretary shall allot
to each eligible agency that receives an initial allotment under
paragraph (1) an additional amount that bears the same relationship
to such sum as the number of qualifying adults in the State or
outlying area served by the eligible agency bears to the number of
such adults in all States and outlying areas.
(d) Qualifying Adult.--For the purpose of subsection (c)(2), the
term ``qualifying adult'' means an adult who--
(1) is at least 16 years of age, but less than 61 years of age;
(2) is beyond the age of compulsory school attendance under the
law of the State or outlying area;
(3) does not have a secondary school diploma or its recognized
equivalent; and
(4) is not enrolled in secondary school.
(e) Special Rule.--
(1) In general.--From amounts made available under subsection
(c) for the Republic of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau, the Secretary shall award
grants to Guam, American Samoa, the Commonwealth of the Northern
Mariana Islands, the Republic of the Marshall Islands, the
Federated States of Micronesia, or the Republic of Palau to carry
out activities described in this subtitle in accordance with the
provisions of this subtitle that the Secretary determines are not
inconsistent with this subsection.
(2) Award basis.--The Secretary shall award grants pursuant to
paragraph (1) on a competitive basis and pursuant to
recommendations from the Pacific Region Educational Laboratory in
Honolulu, Hawaii.
(3) Termination of eligibility.--Notwithstanding any other
provision of law, the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau shall not
receive any funds under this subtitle for any fiscal year that
begins after September 30, 2001.
(4) Administrative costs.--The Secretary may provide not more
than 5 percent of the funds made available for grants under this
subsection to pay the administrative costs of the Pacific Region
Educational Laboratory regarding activities assisted under this
subsection.
(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.
(g) Reallotment.--The portion of any eligible agency's allotment
under this subtitle for a fiscal year that the Secretary determines
will not be required for the period such allotment is available for
carrying out activities under this subtitle, shall be available for
reallotment from time to time, on such dates during such period as the
Secretary shall fix, to other eligible agencies in proportion to the
original allotments to such agencies under this subtitle for such year.
SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) Purpose.--The purpose of this section is to establish a
comprehensive performance accountability system, comprised of the
activities described in this section, to assess the effectiveness of
eligible agencies in achieving continuous improvement of adult
education and literacy activities funded under this subtitle, in order
to optimize the return on investment of Federal funds in adult
education and literacy activities.
(b) Eligible Agency Performance Measures.--
(1) In general.--For each eligible agency, the eligible agency
performance measures shall consist of--
(A)(i) the core indicators of performance described in
paragraph (2)(A); and
(ii) additional indicators of performance (if any)
identified by the eligible agency under paragraph (2)(B); and
(B) an eligible agency adjusted level of performance for
each indicator described in subparagraph (A).
(2) Indicators of performance.--
(A) Core indicators of performance.--The core indicators of
performance shall include the following:
(i) Demonstrated 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.
(iii) Receipt of a secondary school diploma or its
recognized equivalent.
(B) Additional indicators.--An eligible agency may identify
in the State plan additional indicators for adult education and
literacy activities authorized under this subtitle.
(3) Levels of performance.--
(A) Eligible agency adjusted levels of performance for core
indicators.--
(i) In general.--For each eligible agency submitting a
State plan, there shall be established, in accordance with
this subparagraph, levels of performance for each of the
core indicators of performance described in paragraph
(2)(A) for adult education and literacy activities
authorized under this subtitle. The levels of performance
established under this subparagraph shall, at a minimum--
(I) be expressed in an objective, quantifiable, and
measurable form; and
(II) show the progress of the eligible agency
toward continuously improving in performance.
(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 covered by the State plan.
(iii) Agreement on eligible agency adjusted levels of
performance for first 3 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 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.
(iv) Factors.--The agreement described in clause (iii)
or (v) shall take into account--
(I) how the levels involved compare with the
eligible agency adjusted levels of performance
established for other eligible agencies, taking into
account factors including the characteristics of
participants when the participants entered the program,
and the services or instruction to be provided; and
(II) the extent to which such levels involved
promote continuous improvement in performance on the
performance measures by such eligible agency and ensure
optimal return on the investment of Federal funds.
(v) Agreement on eligible agency adjusted levels of
performance for 4th and 5th years.--Prior to the fourth
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 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), 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(j), shall issue objective criteria
and methods for making such revisions.
(B) Levels of performance for additional indicators.--The
eligible agency may identify, in the State plan, eligible
agency levels of performance for each of the additional
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) Report.--
(1) In general.--Each eligible agency that receives a grant
under section 211(b) shall annually prepare and submit to the
Secretary 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.
(2) Information dissemination.--The Secretary--
(A) shall make the information contained in such reports
available to the general public through publication and other
appropriate methods;
(B) shall disseminate State-by-State comparisons of the
information; and
(C) shall provide the appropriate committees of Congress
with copies of such reports.
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 of the
State plan;
(2) consultation with other appropriate agencies, groups, and
individuals that are involved in, or interested in, the development
and implementation of activities assisted under this subtitle; and
(3) coordination and nonduplication with other Federal and
State education, training, corrections, public housing, and social
service programs.
SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.
(a) State Distribution of Funds.--Each eligible agency receiving a
grant under this subtitle for a fiscal year--
(1) shall use not less than 82.5 percent of the grant funds to
award grants and contracts under section 231 and to carry out
section 225, of which not more than 10 percent of the 82.5 percent
shall be available to carry out section 225;
(2) shall use not more than 12.5 percent of the grant funds to
carry out State leadership activities under section 223; and
(3) shall use not more than 5 percent of the grant funds, or
$65,000, whichever is greater, for the administrative expenses of
the eligible agency.
(b) Matching Requirement.--
(1) In general.--In order to receive a grant from the Secretary
under section 211(b) each eligible agency shall provide, for the
costs to be incurred by the eligible agency in carrying out the
adult education and literacy activities for which the grant is
awarded, a non-Federal contribution in an amount equal to--
(A) in the case of an eligible agency serving an outlying
area, 12 percent of the total amount of funds expended for
adult education and literacy activities in the outlying area,
except that the Secretary may decrease the amount of funds
required under this subparagraph for an eligible agency; and
(B) in the case of an eligible agency serving a State, 25
percent of the total amount of funds expended for adult
education and literacy activities in the State.
(2) Non-Federal contribution.--An eligible agency's non-Federal
contribution required under paragraph (1) may be provided in cash
or in kind, fairly evaluated, and shall include only non-Federal
funds that are used for adult education and literacy activities in
a manner that is consistent with the purpose of this subtitle.
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:
(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.
(2) The provision of technical assistance to eligible providers
of adult education and literacy activities.
(3) The provision of technology assistance, including staff
training, to eligible providers of adult education and literacy
activities to enable the eligible providers to improve the quality
of such activities.
(4) The support of State or regional networks of literacy
resource centers.
(5) The monitoring and evaluation of the quality of, and the
improvement in, adult education and literacy activities.
(6) Incentives for--
(A) program coordination and integration; and
(B) performance awards.
(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.
(b) Collaboration.--In carrying out this section, eligible agencies
shall collaborate where possible, and avoid duplicating efforts, in
order to maximize the impact of the activities described in subsection
(a).
(c) State-Imposed Requirements.--Whenever a State or outlying area
implements any rule or policy relating to the administration or
operation of a program authorized under this 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.
SEC. 224. STATE PLAN.
(a) 5-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-year State plan.
(2) Comprehensive plan or application.--The eligible agency may
submit the State plan as part of a comprehensive plan or
application for Federal education assistance.
(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;
(2) a description of the adult education and literacy
activities that will be carried out with any funds received under
this subtitle;
(3) a description of how the eligible agency will evaluate
annually the effectiveness of the adult education and literacy
activities based on the performance measures described in section
212;
(4) a description of the performance measures described in
section 212 and how such performance measures will ensure the
improvement of adult education and literacy activities in the State
or outlying area;
(5) 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;
(6) an assurance that the funds received under this subtitle
will not be expended for any purpose other than for activities
under this subtitle;
(7) a description of how the eligible agency will fund local
activities in accordance with the considerations described in
section 231(e);
(8) 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) a description of the process that will be used for public
participation and comment with respect to the State plan;
(10) a description of how the eligible agency will develop
program strategies for populations that include, at a minimum--
(A) low-income students;
(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;
(11) 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
(12) a description of the steps the eligible agency will take
to ensure direct and equitable access, as required in section
231(c)(1).
(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.
(d) Consultation.--The eligible agency shall--
(1) submit the State plan, and any revisions to the State plan,
to the Governor 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.
(e) Peer Review.--The Secretary shall establish a peer review
process to make recommendations regarding the approval of State plans.
(f) Plan Approval.--A State plan submitted to the Secretary shall
be approved by the Secretary unless the Secretary makes a written
determination, within 90 days after receiving the plan, that the plan
is inconsistent with the specific provisions of this subtitle.
SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.
(a) Program Authorized.--From funds made available under section
222(a)(1) for a fiscal year, each eligible agency shall carry out
corrections education or education for other institutionalized
individuals.
(b) Uses of Funds.--The funds described in subsection (a) shall be
used for the cost of educational programs for criminal offenders in
correctional institutions and for other institutionalized individuals,
including academic programs for--
(1) basic education;
(2) special education programs as determined by the eligible
agency;
(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 in a correctional institution shall give priority to serving
individuals who are likely to leave the correctional institution with 5
years of participation in the program.
(d) Definition of Criminal Offender.--
(1) Criminal offender.--The term ``criminal offender'' means
any individual who is charged with or convicted of any criminal
offense.
(2) Correctional institution.--The term ``correctional
institution'' means any--
(A) prison;
(B) jail;
(C) reformatory;
(D) work farm;
(E) detention center; or
(F) halfway house, community-based rehabilitation center,
or any other similar institution designed for the confinement
or rehabilitation of criminal offenders.
CHAPTER 3--LOCAL PROVISIONS
SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.
(a) Grants and Contracts.--From grant funds made available under
section 211(b), each eligible agency shall award multiyear grants or
contracts, on a competitive basis, to eligible providers within the
State or outlying area to enable the eligible providers to develop,
implement, and improve adult education and literacy activities within
the State.
(b) Required Local Activities.--The eligible agency shall require
that each eligible provider receiving a grant or contract under
subsection (a) use the grant or contract to establish or operate one or
more programs that provide services or instruction in one or more of
the following categories:
(1) Adult education and literacy services, including workplace
literacy services.
(2) Family literacy services.
(3) English literacy programs.
(c) Direct and Equitable Access; Same Process.--Each eligible
agency receiving funds under this subtitle shall ensure that--
(1) all eligible providers have direct and equitable access to
apply for grants or contracts under this section; and
(2) the same grant or contract announcement process and
application process is used for all eligible providers in the State
or outlying area.
(d) Special Rule.--Each eligible agency awarding a grant or
contract under this section shall not use any funds made available
under this subtitle for adult education and literacy activities for the
purpose of supporting or providing programs, services, or activities
for individuals who are not individuals described in subparagraphs (A)
and (B) of section 203(1), except that such agency may use such funds
for such purpose if such programs, services, or activities are related
to family literacy services. In providing family literacy services
under this subtitle, an eligible provider shall attempt to coordinate
with programs and services that are not assisted under this subtitle
prior to using funds for adult education and literacy activities under
this subtitle for activities other than adult education activities.
(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;
(2) the past effectiveness of an eligible provider in improving
the literacy skills of adults and families, and, after the 1-year
period beginning with the adoption of an eligible agency's
performance measures under section 212, the success of an eligible
provider receiving funding under this subtitle in meeting or
exceeding such performance measures, especially with respect to
those adults with the lowest levels of literacy;
(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;
(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;
(5) whether the activities are built on a strong foundation of
research and effective educational practice;
(6) whether the activities effectively employ advances in
technology, as appropriate, including the use of computers;
(7) whether the activities provide learning in real life
contexts to ensure that an individual has the skills needed to
compete in the workplace and exercise the rights and
responsibilities of citizenship;
(8) whether the activities are staffed by well-trained
instructors, counselors, and administrators;
(9) whether the activities coordinate with other available
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
support services (such as child care and transportation) that are
necessary to enable individuals, including individuals with
disabilities or other special needs, to attend and complete
programs;
(11) whether the activities maintain a high-quality information
management system that has the capacity to report participant
outcomes and to monitor program performance against the eligible
agency performance measures; and
(12) whether the local communities have a demonstrated need for
additional English literacy programs.
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; 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.
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 development, and
interagency coordination.
(b) Special Rule.--In cases where the cost limits described in
subsection (a) are too restrictive to allow for adequate planning,
administration, personnel development, and interagency coordination,
the eligible provider 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, in the second preceding fiscal year, was
not less than 90 percent of the fiscal effort per student or
the aggregate expenditures of such eligible agency for adult
education and literacy activities, in the third preceding
fiscal year.
(B) Proportionate reduction.--Subject to paragraphs (2),
(3), and (4), for any fiscal year with respect to which the
Secretary determines under subparagraph (A) that the fiscal
effort or the aggregate expenditures of an eligible agency for
the preceding program year were less than such effort or
expenditures for the second preceding program year, the
Secretary--
(i) shall determine the percentage decreases in such
effort or in such expenditures; and
(ii) shall decrease the payment made under this
subtitle for such program year to the agency for adult
education and literacy activities by the lesser of such
percentages.
(2) Computation.--In computing the fiscal effort and aggregate
expenditures under paragraph (1), the Secretary shall exclude
capital expenditures and special one-time project costs.
(3) Decrease in federal support.--If the amount made available
for adult education and literacy activities under this subtitle for
a fiscal year is less than the amount made available for adult
education and literacy activities under this subtitle for the
preceding fiscal year, then the fiscal effort per student and the
aggregate expenditures of an eligible agency required in order to
avoid a reduction under paragraph (1)(B) shall be decreased by the
same percentage as the percentage decrease in the amount so made
available.
(4) Waiver.--The Secretary may waive the requirements of this
subsection for 1 fiscal year only, if the Secretary determines that
a waiver would be equitable due to exceptional or uncontrollable
circumstances, such as a natural disaster or an unforeseen and
precipitous decline in the financial resources of the State 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;
(2) coordinates 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
(B) supporting the creation of new ways to offer services
of proven effectiveness.
(b) Establishment.--
(1) In general.--There is established the National Institute
for Literacy (in this section referred to as the ``Institute'').
The Institute shall be administered under the terms of an
interagency agreement entered into by the Secretary of Education
with the Secretary of Labor and the Secretary of Health and Human
Services (in this section referred to as the ``Interagency
Group''). The Interagency Group may include in the Institute any
research and development center, institute, or clearinghouse
established within the Department of Education, the Department of
Labor, or the Department of Health and Human Services the purpose
of which is determined by the Interagency Group to be related to
the purpose of the Institute.
(2) Offices.--The Institute shall have offices separate from
the offices of the Department of Education, the Department of
Labor, and the Department of Health and Human Services.
(3) 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.
(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 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, and the integration of literacy and
basic skills instruction with occupational skills training;
(ii) public and private literacy and basic skills
programs, and Federal, State, and local policies, affecting
the provision of literacy services at the national, State,
and local levels;
(iii) opportunities for technical assistance, meetings,
conferences, and other opportunities that lead to the
improvement of literacy and basic skills services; and
(iv) a communication network for literacy programs,
providers, social service agencies, and students;
(B) to coordinate support for the provision of literacy and
basic skills services across Federal agencies and at the State
and local levels;
(C) to coordinate the support of reliable and replicable
research and development on literacy and basic skills in
families and adults across Federal agencies, especially with
the Office of Educational Research and Improvement in the
Department of Education, and to carry out basic and applied
research and development on topics that are not being
investigated by other organizations or agencies, 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 work of the National Institute of
Child Health and Human Development;
(E) to provide policy and technical assistance to Federal,
State, and local entities for the improvement of policy and
programs relating to literacy;
(F) to fund a network of State or regional adult literacy
resource centers to assist State and local public and private
nonprofit efforts to improve literacy by--
(i) encouraging the coordination of literacy services;
(ii) enhancing the capacity of State and local
organizations to provide literacy services; and
(iii) serving as a link between the Institute and
providers of adult education and literacy activities for
the purpose of sharing information, data, research,
expertise, and literacy resources;
(G) to coordinate and share information with national
organizations and associations that are interested in literacy
and workforce investment activities;
(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.
(2) Grants, contracts, and cooperative agreements.--The
Institute may award grants to, or enter into contracts or
cooperative agreements with, individuals, public or private
institutions, agencies, organizations, or consortia of such
institutions, agencies, or organizations to carry out the
activities of the Institute.
(d) Literacy Leadership.--
(1) In general.--The Institute, in consultation with the Board,
may award fellowships, with such stipends and allowances that the
Director considers necessary, to outstanding individuals pursuing
careers in adult education or literacy in the areas of instruction,
management, research, or innovation.
(2) Fellowships.--Fellowships awarded under this subsection
shall be used, under the auspices of the Institute, to engage in
research, education, training, technical assistance, or other
activities to advance the field of adult education or literacy,
including the training of volunteer literacy providers at the
national, State, or local level.
(3) Interns and volunteers.--The Institute, in consultation
with the Board, may award paid and unpaid internships to
individuals seeking to assist the Institute in carrying out its
mission. Notwithstanding section 1342 of title 31, United States
Code, the Institute may accept and use voluntary and uncompensated
services as the Institute determines necessary.
(e) National Institute for Literacy Advisory Board.--
(1) Establishment.--
(A) In general.--There shall be a National Institute for
Literacy Advisory Board (in this section referred to as the
``Board''), which shall consist of 10 individuals appointed by
the President with the advice and consent of the Senate.
(B) Composition.--The Board shall be comprised of
individuals who are not otherwise officers or employees of the
Federal Government and who are representative of entities such
as--
(i) literacy organizations and providers of literacy
services, including nonprofit providers, providers of
English literacy programs and services, social service
organizations, and eligible providers receiving assistance
under this subtitle;
(ii) businesses that have demonstrated interest in
literacy programs;
(iii) literacy students, including literacy students
with disabilities;
(iv) experts in the area of literacy research;
(v) State and local governments;
(vi) State Directors of adult education; and
(vii) representatives of employees, including
representatives of labor organizations.
(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.
(3) Federal Advisory Committee Act.--Except as otherwise
provided, the Board established by this subsection shall be subject
to the provisions of the Federal Advisory Committee Act (5 U.S.C.
App.).
(4) Appointments.--
(A) In general.--Each member of the Board shall be
appointed for a term of 3 years, except that the initial terms
for members may be 1, 2, or 3 years in order to establish a
rotation in which one-third of the members are selected each
year. Any such member may be appointed for not more than 2
consecutive terms.
(B) Vacancies.--Any member appointed to fill a vacancy
occurring before the expiration of the term for which the
member's predecessor was appointed shall be appointed only for
the remainder of that term. A member may serve after the
expiration of that member's term until a successor has taken
office.
(5) Quorum.--A majority of the members of the Board shall
constitute a quorum but a lesser number may hold hearings. Any
recommendation of the Board may be passed only by a majority of the
Board's members present.
(6) Election of officers.--The Chairperson and Vice Chairperson
of the Board shall be elected by the members of the Board. The term
of office of the Chairperson and Vice Chairperson shall be 2 years.
(7) Meetings.--The Board shall meet at the call of the
Chairperson or a majority of the members of the Board.
(f) Gifts, Bequests, and Devises.--
(1) In general.--The Institute may accept, administer, and use
gifts or donations of services, money, or property, whether real or
personal, tangible or intangible.
(2) Rules.--The Board shall establish written rules setting
forth the criteria to be used by the Institute in determining
whether the acceptance of contributions of services, money, or
property whether real or personal, tangible or intangible, would
reflect unfavorably upon the ability of the Institute or any
employee to carry out the responsibilities of the Institute or
employee, or official duties, in a fair and objective manner, or
would compromise the integrity or the appearance of the integrity
of the Institute's programs or any official involved in those
programs.
(g) Mails.--The Board and the Institute may use the United States
mails in the same manner and under the same conditions as other
departments and agencies of the United States.
(h) Staff.--The Interagency Group, after considering
recommendations made by the Board, shall appoint and fix the pay of a
Director.
(i) Applicability of Certain Civil Service Laws.--The Director and
staff of the Institute may be appointed without regard to the
provisions of title 5, United States Code, governing appointments in
the competitive service, and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of that title
relating to classification and General Schedule pay rates, except that
an individual so appointed may not receive pay in excess of the annual
rate of basic pay payable for level IV of the Executive Schedule.
(j) Experts and Consultants.--The Institute may procure temporary
and intermittent services under section 3109(b) of title 5, United
States Code.
(k) Report.--The Institute shall submit a report biennially to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Labor and Human Resources of the
Senate. Each report submitted under this subsection shall include--
(1) a comprehensive and detailed description of the Institute's
operations, activities, financial condition, and accomplishments in
the field of literacy for the period covered by the report;
(2) a description of how plans for the operation of the
Institute for the succeeding 2 fiscal years will facilitate
achievement of the goals of the Institute and the goals of the
literacy programs within the Department of Education, the
Department of Labor, and the Department of Health and Human
Services; and
(3) any additional minority, or dissenting views submitted by
members of the Board.
(l) Funding.--Any amounts appropriated to the Secretary, the
Secretary of Labor, the Secretary of Health and Human Services, or any
other department that participates in the Institute for purposes that
the Institute is authorized to perform under this section may be
provided to the Institute for such purposes.
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
qualify 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 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; and
(H) other activities designed to enhance the quality of
adult education and literacy activities nationwide.
Subtitle B--Repeals
SEC. 251. REPEALS.
(a) Repeals.--
(1) Adult Education Act.--The Adult Education Act (20 U.S.C.
1201 et seq.) is repealed.
(2) National Literacy Act of 1991.--The National Literacy Act
of 1991 (20 U.S.C. 1201 note) is repealed.
(b) Conforming Amendments.--
(1) Refugee Education Assistance Act.--Subsection (b) of
section 402 of the Refugee Education Assistance Act of 1980 (8
U.S.C. 1522 note) is repealed.
(2) Elementary and Secondary Education Act of 1965.--
(A) Section 1202 of esea.--Section 1202(c)(1) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6362(c)(1)) is amended by striking ``Adult Education Act'' and
inserting ``Adult Education and Family Literacy Act''.
(B) Section 1205 of ESEA.--Section 1205(8)(B) of such Act
(20 U.S.C. 6365(8)(B)) is amended by striking ``Adult Education
Act'' and inserting ``Adult Education and Family Literacy
Act''.
(C) Section 1206 of esea.--Section 1206(a)(1)(A) of such
Act (20 U.S.C. 6366(a)(1)(A)) is amended by striking ``an adult
basic education program under the Adult Education Act'' and
inserting ``adult education and literacy activities under the
Adult Education and Family Literacy Act''.
(D) Section 3113 of esea.--Section 3113(1) of such Act (20
U.S.C. 6813(1)) is amended by striking ``section 312 of the
Adult Education Act'' and inserting ``section 203 of the Adult
Education and Family Literacy Act''.
(E) Section 9161 of esea.--Section 9161(2) of such Act (20
U.S.C. 7881(2)) is amended by striking ``section 312(2) of the
Adult Education Act'' and inserting ``section 203 of the Adult
Education and Family Literacy Act''.
(3) Older Americans Act of 1965.--Section 203(b)(8) of the
Older Americans Act of 1965 (42 U.S.C. 3013(b)(8)) is amended by
striking ``Adult Education Act'' and inserting ``Adult Education
and Family Literacy Act''.
TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES
Subtitle A--Wagner-Peyser Act
SEC. 301. DEFINITIONS.
Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is amended--
(1) in paragraph (1)--
(A) by striking ``or officials''; and
(B) by striking ``Job Training Partnership Act'' and
inserting ``Workforce Investment Act of 1998'';
(2) by striking paragraphs (2) and (4);
(3) by redesignating paragraph (3) as paragraph (4);
(4) by inserting after paragraph (1) the following:
``(2) the term `local workforce investment board' means a local
workforce investment board established under section 117 of the
Workforce Investment Act of 1998;
``(3) the term `one-stop delivery system' means a one-stop
delivery system described in section 134(c) of the Workforce
Investment Act of 1998;'';
and
(5) in paragraph (4) (as redesignated in paragraph (3)), by
striking the semicolon and inserting ``; and''.
SEC. 302. FUNCTIONS.
(a) In General.--Section 3 of the Wagner-Peyser Act (29 U.S.C. 49b)
is amended--
(1) in subsection (a), by striking ``United States Employment
Service'' and inserting ``Secretary''; and
(2) by adding at the end the following:
``(c) The Secretary shall--
``(1) assist in the coordination and development of a
nationwide system of public labor exchange services, provided as
part of the one-stop customer service systems of the States;
``(2) assist in the development of continuous improvement
models for such nationwide system that ensure private sector
satisfaction with the system and meet the demands of jobseekers
relating to the system; and
``(3) ensure, for individuals otherwise eligible to receive
unemployment compensation, the provision of reemployment services
and other activities in which the individuals are required to
participate to receive the compensation.''.
(b) Conforming Amendments.--Section 508(b)(1) of the Unemployment
Compensation Amendments of 1976 (42 U.S.C. 603a(b)(1)) is amended--
(1) by striking ``the third sentence of section 3(a)'' and
inserting ``section 3(b)''; and
(2) by striking ``49b(a)'' and inserting ``49b(b)''.
SEC. 303. DESIGNATION OF STATE AGENCIES.
Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c) is amended--
(1) by striking ``, through its legislature,'' and inserting
``, pursuant to State statute,'';
(2) by inserting after ``the provisions of this Act and'' the
following: ``, in accordance with such State statute, the Governor
shall''; and
(3) by striking ``United States Employment Service'' and
inserting ``Secretary''.
SEC. 304. APPROPRIATIONS.
Section 5(c) of the Wagner-Peyser Act (29 U.S.C. 49d(c)) is amended
by striking paragraph (3).
SEC. 305. DISPOSITION OF ALLOTTED FUNDS.
Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is amended--
(1) in subsection (b)(2), by striking ``private industry
council'' and inserting ``local workforce investment board'';
(2) in subsection (c)(2), by striking ``any program under'' and
all that follows and inserting ``any workforce investment activity
carried out under the Workforce Investment Act of 1998.'';
(3) in subsection (d)--
(A) by striking ``United States Employment Service'' and
inserting ``Secretary''; and
(B) by striking ``Job Training Partnership Act'' and
inserting ``Workforce Investment Act of 1998''; and
(4) by adding at the end the following:
``(e) All job search, placement, recruitment, labor employment
statistics, and other labor exchange services authorized under
subsection (a) shall be provided, consistent with the other
requirements of this Act, as part of the one-stop delivery system
established by the State.''.
SEC. 306. STATE PLANS.
Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is amended--
(1) in subsection (a) to read as follows:
``(a) Any State desiring to receive assistance under this Act shall
submit to the Secretary, as part of the State plan submitted under
section 112 of the Workforce Investment Act of 1998, detailed plans for
carrying out the provisions of this Act within such State.'';
(2) by striking subsections (b) and (c);
(3) by redesignating subsection (d) as subsection (b);
(4) by inserting after subsection (b) (as redesignated by
paragraph (3)) the following:
``(c) The part of the State plan described in subsection (a) shall
include the information described in paragraphs (8) and (14) of section
112(b) of the Workforce Investment Act of 1998.'';
(5) by redesignating subsection (e) as subsection (d); and
(6) in subsection (d) (as redesignated in paragraph (5)), by
striking ``such plans'' and inserting ``such detailed plans''.
SEC. 307. REPEAL OF FEDERAL ADVISORY COUNCIL.
Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j) is amended--
(1) by striking ``11.'' and all that follows through ``(b) In''
and inserting ``11. In''; and
(2) by striking ``Director'' and inserting ``Secretary''.
SEC. 308. REGULATIONS.
Section 12 of the Wagner-Peyser Act (29 U.S.C. 49k) is amended by
striking ``The Director, with the approval of the Secretary of Labor,''
and inserting ``The Secretary''.
SEC. 309. EMPLOYMENT STATISTICS.
The Wagner-Peyser Act is amended--
(1) by redesignating section 15 (29 U.S.C. 49 note) as section
16; and
(2) by inserting after section 14 (29 U.S.C. 49l-1) the
following:
``SEC. 15. EMPLOYMENT STATISTICS.
``(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 of employment statistics that includes--
``(A) statistical data from cooperative statistical survey
and projection programs and data from administrative reporting
systems that, taken together, enumerate, estimate, and project
employment opportunities and conditions at national, State, and
local levels in a timely manner, including statistics on--
``(i) employment and unemployment status of national,
State, and local populations, including self-employed,
part-time, and seasonal workers;
``(ii) industrial distribution of occupations, as well
as current and projected employment opportunities, wages,
benefits (where data is available), and skill trends by
occupation and industry, with particular attention paid to
State and local conditions;
``(iii) the incidence of, industrial and geographical
location of, and number of workers displaced by, permanent
layoffs and plant closings; and
``(iv) employment and earnings information maintained
in a longitudinal manner to be used for research and
program evaluation;
``(B) information on State and local employment
opportunities, and other appropriate statistical data related
to labor market dynamics, which--
``(i) shall be current and comprehensive;
``(ii) shall meet the needs identified through the
consultations described in subparagraphs (A) and (B) of
subsection (e)(2); and
``(iii) shall meet the needs for the information
identified in section 134(d);
``(C) technical standards (which the Secretary shall
publish annually) for data and information described in
subparagraphs (A) and (B) that, at a minimum, meet the criteria
of chapter 35 of title 44, United States Code;
``(D) procedures to ensure compatibility and additivity of
the data and information described in subparagraphs (A) and (B)
from national, State, and local levels;
``(E) procedures to support standardization and aggregation
of data from administrative reporting systems described in
subparagraph (A) of employment-related programs;
``(F) analysis of data and information described in
subparagraphs (A) and (B) for uses such as--
``(i) national, State, and local policymaking;
``(ii) implementation of Federal policies (including
allocation formulas);
``(iii) program planning and evaluation; and
``(iv) researching labor market dynamics;
``(G) wide dissemination of such data, information, and
analysis in a user-friendly manner and voluntary technical
standards for dissemination mechanisms; and
``(H) programs of--
``(i) training for effective data dissemination;
``(ii) research and demonstration; and
``(iii) programs and technical assistance.
``(2) Information to be confidential.--
``(A) In general.--No officer or employee of the Federal
Government or agent of the Federal Government may--
``(i) use any submission that is furnished for
exclusively statistical purposes under the provisions of
this section for any purpose other than the statistical
purposes of this section for which the submission is
furnished;
``(ii) make any publication or media transmittal of the
data contained in the submission described in clause (i)
that permits information concerning individual subjects to
be reasonably inferred by either direct or indirect means;
or
``(iii) permit anyone other than a sworn officer,
employee, or agent of any Federal department or agency, or
a contractor (including an employee of a contractor) of
such department or agency, to examine an individual
submission described in clause (i);
without the consent of the individual, agency, or other person
who is the subject of the submission or provides that
submission.
``(B) Immunity from legal process.--Any submission
(including any data derived from the submission) that is
collected and retained by a Federal department or agency, or an
officer, employee, agent, or contractor of such a department or
agency, for exclusively statistical purposes under this section
shall be immune from the legal process and shall not, without
the consent of the individual, agency, or other person who is
the subject of the submission or provides that submission, be
admitted as evidence or used for any purpose in any action,
suit, or other judicial or administrative proceeding.
``(C) Rule of construction.--Nothing in this section shall
be construed to provide immunity from the legal process for
such submission (including any data derived from the
submission) if the submission is in the possession of any
person, agency, or entity other than the Federal Government or
an officer, employee, agent, or contractor of the Federal
Government, or if the submission is independently collected,
retained, or produced for purposes other than the purposes of
this Act.
``(b) System Responsibilities.--
``(1) In general.--The employment statistics 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
described in subsection (a) to ensure that all statistical and
administrative data collected is consistent with appropriate
Bureau of Labor Statistics standards and definitions.
``(B) Actively seek the cooperation of other Federal
agencies to establish and maintain mechanisms for ensuring
complementarity and nonduplication in the development and
operation of statistical and administrative data collection
activities.
``(C) Eliminate gaps and duplication in statistical
undertakings, with the systemization of wage surveys as an
early priority.
``(D) In collaboration with the Bureau of Labor Statistics
and States, develop and maintain the elements of the employment
statistics system described in subsection (a), including the
development of consistent procedures and definitions for use by
the States in collecting the data and information described in
subparagraphs (A) and (B) of subsection (a)(1).
``(E) Establish procedures for the system to ensure that--
``(i) such data and information are timely;
``(ii) paperwork and reporting for the system are
reduced to a minimum; and
``(iii) States and localities are fully involved in the
development and continuous improvement of the system at all
levels, 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 described in
subsection (a) and the statewide employment statistics systems 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; 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 affiliated with the State
agencies that perform the duties described in subsection (e)(2).
``(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 described in subsection (a) that comprise a statewide
employment statistics system and for the State's participation
in the development of the annual plan; and
``(B) establish a process for the oversight of such system.
``(2) Duties.--In order to receive Federal financial assistance
under this section, the State agency shall--
``(A) consult with State and local employers, participants,
and local workforce investment boards about the labor market
relevance of the data to be collected and disseminated through
the statewide employment statistics system;
``(B) consult with State educational agencies and local
educational agencies concerning the provision of employment
statistics in order to meet the needs of secondary school and
postsecondary school students who seek such information;
``(C) collect and disseminate for the system, on behalf of
the State and localities in the State, the information and data
described in subparagraphs (A) and (B) of subsection (a)(1);
``(D) maintain and continuously improve the statewide
employment statistics system in accordance with this section;
``(E) perform contract and grant responsibilities for data
collection, analysis, and dissemination for such system;
``(F) conduct such other data collection, analysis, and
dissemination activities as will ensure an effective statewide
employment statistics system;
``(G) actively seek the participation of other State and
local agencies in data collection, analysis, and dissemination
activities in order to ensure complementary, compatibility, and
usefulness of data;
``(H) participate in the development of the annual plan
described in subsection (c); and
``(I) utilize the quarterly records described in section
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.
``(3) Rule of construction.--Nothing in this section shall be
construed as limiting the ability of a State agency to conduct additional
data collection, analysis, and dissemination activities with State
funds or with Federal funds from sources other than this section.
``(f) Nonduplication Requirement.--None of the functions and
activities carried out pursuant to this section shall duplicate the
functions and activities carried out under the Carl D. Perkins
Vocational and Applied Technology Education Act (20 U.S.C. 2301 et seq.).
``(g) 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 2004.
``(h) Definition.--In this section, the term `local area' means the
smallest geographical area for which data can be produced with
statistical reliability.''.
SEC. 310. TECHNICAL AMENDMENTS.
Sections 3(b), 6(b)(1), and 7(d) of the Wagner-Peyser Act (29
U.S.C. 49b(b), 49e(b)(1), and 49f(d)) are amended by striking
``Secretary of Labor'' and inserting ``Secretary''.
SEC. 311. EFFECTIVE DATE.
The amendments made by this subtitle shall take effect on July 1, 1999.
Subtitle B--Linkages With Other Programs
SEC. 321. TRADE ACT OF 1974.
Section 239 of the Trade Act of 1974 (19 U.S.C. 2311) is amended by
adding at the end the following:
``(g) In order to promote the coordination of workforce investment
activities in each State with activities carried out under this
chapter, any agreement entered into under this section shall provide
that the State shall submit to the Secretary, in such form as the
Secretary may require, the description and information described in
paragraphs (8) and (14) of section 112(b) of the Workforce Investment
Act of 1998.''.
SEC. 322. VETERANS' EMPLOYMENT PROGRAMS.
Chapter 41 of title 38, United States Code, is amended by adding at
the end the following:
``Sec. 4110B. Coordination and nonduplication
``In carrying out this chapter, the Secretary shall require that an
appropriate administrative entity in each State enter into an agreement
with the Secretary regarding the implementation of this Act that
includes the description and information described in paragraphs (8)
and (14) of section 112(b) of the Workforce Investment Act of 1998.''.
SEC. 323. OLDER AMERICANS ACT OF 1965.
Section 502(b)(1) of the Older Americans Act of 1965 (42 U.S.C.
3056(b)(1)) is amended--
(1) in subparagraph (O), by striking ``; and'' and inserting a
semicolon;
(2) in subparagraph (P), by striking the period and inserting
``; and''; and
(3) by adding at the end the following subparagraph:
``(Q) will provide to the Secretary the description and
information described in paragraphs (8) and (14) of section
112(b) of the Workforce Investment Act of 1998.''.
Subtitle C--Twenty-First Century Workforce Commission
SEC. 331. SHORT TITLE.
This subtitle may be cited as the ``Twenty-First Century Workforce
Commission Act''.
SEC. 332. FINDINGS.
Congress finds that--
(1) information technology is one of the fastest growing areas
in the United States economy;
(2) the United States is a world leader in the information
technology industry;
(3) the continued growth and prosperity of the information
technology industry is important to the continued prosperity of the
United States economy;
(4) highly skilled employees are essential for the success of
business entities in the information technology industry and other
business entities that use information technology;
(5) employees in information technology jobs are highly paid;
(6) as of the date of enactment of this Act, these employees
are in high demand in all industries and all regions of the United
States; and
(7) through a concerted effort by business entities, the
Federal Government, the governments of States and political
subdivisions of States, and educational institutions, more
individuals will gain the skills necessary to enter into a
technology-based job market, ensuring that the United States
remains the world leader in the information technology industry.
SEC. 333. DEFINITIONS.
In this subtitle:
(1) Business entity.--The term ``business entity'' means a
firm, corporation, association, partnership, consortium, joint
venture, or other form of enterprise.
(2) Commission.--The term ``Commission'' means the Twenty-First
Century Workforce Commission established under section 334.
(3) Information technology.--The term ``information
technology'' has the meaning given that term in section 5002 of the
Information Technology Management Reform Act of 1996 (110 Stat.
679).
(4) State.--The term ``State'' means each of the several States
of the United States and the District of Columbia.
SEC. 334. ESTABLISHMENT OF TWENTY-FIRST CENTURY WORKFORCE COMMISSION.
(a) Establishment.--There is established a commission to be known
as the Twenty-First Century Workforce Commission.
(b) Membership.--
(1) Composition.--
(A) In general.--The Commission shall be composed of 15
voting members, of which--
(i) five members shall be appointed by the President;
(ii) five members shall be appointed by the Majority
Leader of the Senate; and
(iii) five members shall be appointed by the Speaker of
the House of Representatives.
(B) Governmental representatives.--Of the members appointed
under this subsection, three members shall be representatives
of the governments of States and political subdivisions of
States, one of whom shall be appointed by the President, one of
whom shall be appointed by the Majority Leader of the Senate,
and one of whom shall be appointed by the Speaker of the House
of Representatives.
(C) Educators.--Of the members appointed under this
subsection, three shall be educators who are selected from
among elementary, secondary, vocational, and postsecondary
educators--
(i) one of whom shall be appointed by the President;
(ii) one of whom shall be appointed by the Majority
Leader of the Senate; and
(iii) one of whom shall be appointed by the Speaker of
the House of Representatives.
(D) Business representatives.--
(i) In general.--Of the members appointed under this
subsection, eight shall be representatives of business
entities (at least three of which shall be individuals who
are employed by noninformation technology business
entities), two of whom shall be appointed by the President,
three of whom shall be appointed by the Majority Leader of
the Senate, and three of whom shall be appointed by the
Speaker of the House of Representatives.
(ii) Size.--Members appointed under this subsection in
accordance with clause (i) shall, to the extent
practicable, include individuals from business entities of
a size that is small or average.
(E) Labor representative.--Of the members appointed under
this subsection, one shall be a representative of a labor
organization who has been nominated by a national labor
federation and who shall be appointed by the President.
(F) Ex officio members.--The Commission shall include two
nonvoting members, of which--
(i) one member shall be an officer or employee of the
Department of Labor, who shall be appointed by the
President; and
(ii) one member shall be an officer or employee of the
Department of Education, who shall be appointed by the
President.
(2) Date.--The appointments of the members of the Commission
shall be made by the later of--
(A) October 31, 1998; or
(B) the date that is 45 days after the date of enactment of
this Act.
(c) Period of Appointment; Vacancies.--Members shall be appointed
for the life of the Commission. Any vacancy in the Commission shall not
affect its powers, but shall be filled in the same manner as the
original appointment.
(d) Initial Meeting.--No later than 30 days after the date on which
all members of the Commission have been appointed, the Commission shall
hold its first meeting.
(e) Meetings.--The Commission shall meet at the call of the
Chairperson.
(f) Quorum.--A majority of the members of the Commission shall
constitute a quorum, but a lesser number of members may hold hearings.
(g) Chairperson and Vice Chairperson.--The Commission shall select
by vote a chairperson and vice chairperson from among its voting
members.
SEC. 335. DUTIES OF THE COMMISSION.
(a) Study.--
(1) In general.--The Commission shall conduct a thorough study
of all matters relating to the information technology workforce in
the United States.
(2) Matters studied.--The matters studied by the Commission
shall include an examination of--
(A) the skills necessary to enter the information
technology workforce;
(B) ways to expand the number of skilled information
technology workers; and
(C) the relative efficacy of programs in the United States
and foreign countries to train information technology workers,
with special emphasis on programs that provide for secondary
education or postsecondary education in a program other than a
4-year baccalaureate program (including associate degree
programs and graduate degree programs).
(3) Public hearings.--As part of the study conducted under this
subsection, the Commission shall hold public hearings in each
region of the United States concerning the issues referred to in
subparagraphs (A) and (B) of paragraph (2).
(4) Existing information.--To the extent practicable, in
carrying out the study under this subsection, the Commission shall
identify and use existing information related to the issues
referred to in subparagraphs (A) and (B) of paragraph (2).
(5) Consultation with chief information officers council.--In
carrying out the study under this subsection, the Commission shall
consult with the Chief Information Officers Council established
under Executive Order No. 13011.
(b) Report.--Not later than 6 months after the first meeting of the
Commission, the Commission shall submit a report to the President and
the Congress that shall contain a detailed statement of the findings
and conclusions of the Commission resulting from the study, together
with its recommendations for such legislation and administrative
actions as the Commission considers to be appropriate.
(c) Facilitation of Exchange of Information.--In carrying out the
study under subsection (a), the Commission shall, to the extent
practicable, facilitate the exchange of information concerning the
issues that are the subject of the study among--
(1) officials of the Federal Government and the governments of
States and political subdivisions of States;
and
(2) educators from Federal, State, and local institutions of
higher education and secondary schools.
SEC. 336. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission may hold such hearings, sit and act
at such times and places, take such testimony, and receive such
evidence as the Commission considers advisable to carry out the
purposes of this subtitle.
(b) Information From Federal Agencies.--The Commission may secure
directly from any Federal department or agency such information as the
Commission considers necessary to carry out the provisions of this
subtitle. Upon request of the Chairperson of the Commission, the head
of such department or agency shall furnish such information to the
Commission.
(c) Postal Services.--The Commission may use the United States
mails in the same manner and under the same conditions as other
departments and agencies of the Federal Government.
(d) Gifts.--The Commission may accept, use, and dispose of gifts or
donations of services or property.
SEC. 337. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--Except as provided in subsection (b),
each member of the Commission who is not an officer or employee of the
Federal Government shall serve without compensation. All members of the
Commission who are officers or employees of the United States shall
serve without compensation in addition to that received for their
services as officers or employees of the United States.
(b) Travel Expenses.--The members of the Commission shall be
allowed travel expenses, including per diem in lieu of subsistence, at
rates authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from their homes
or regular places of business in the performance of services for the
Commission.
(c) Staff.--
(1) In general.--The Chairperson of the Commission may, without
regard to the civil service laws and regulations, appoint and
terminate an executive director and such other additional personnel
as may be necessary to enable the Commission to perform its duties.
The employment of an executive director shall be subject to
confirmation by the Commission.
(2) Compensation.--The Chairperson of the Commission may fix
the compensation of the executive director and other personnel
without regard to the provisions of chapter 51 and subchapter III
of chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay rates, except
that the rate of pay for the executive director and other personnel
may not exceed the rate payable for level V of the Executive
Schedule under section 5316 of such title.
(d) Detail of Government Employees.--Any Federal Government
employee may be detailed to the Commission without reimbursement, and
such detail shall be without interruption or loss of civil service
status or privilege.
(e) Procurement of Temporary and Intermittent Services.--The
Chairperson of the Commission may procure temporary and intermittent
services under section 3109(b) of title 5, United States Code, at rates
for individuals that do not exceed the daily equivalent of the annual
rate of basic pay prescribed for level V of the Executive Schedule
under section 5316 of such title.
SEC. 338. TERMINATION OF THE COMMISSION.
The Commission shall terminate on the date that is 90 days after
the date on which the Commission submits its report under section 335(b).
SEC. 339. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated such sums
as may be necessary for fiscal year 1999 to the Commission to carry out
the purposes of this subtitle.
(b) Availability.--Any sums appropriated under the authorization
contained in this section shall remain available, without fiscal year
limitation, until expended.
Subtitle D--Application of Civil Rights and Labor-Management Laws to
the Smithsonian Institution
SEC. 341. APPLICATION OF CIVIL RIGHTS AND LABOR-MANAGEMENT LAWS TO THE
SMITHSONIAN INSTITUTION.
(a) Prohibition on Employment Discrimination on Basis of Race,
Color, Religion, Sex, and National Origin.--Section 717(a) of the Civil
Rights Act of 1964 (42 U.S.C. 2000e-16(a)) is amended by inserting ``in
the Smithsonian Institution,'' before ``and in the Government Printing
Office,''.
(b) Prohibition on Employment Discrimination on Basis of Age.--
Section 15(a) of the Age Discrimination in Employment Act of 1967 (29
U.S.C. 633a(a)) is amended by inserting ``in the Smithsonian
Institution,'' before ``and in the Government Printing Office,''.
(c) Prohibition on Employment Discrimination on Basis of Disability.--
Section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 791) is amended--
(1) in the fourth sentence of subsection (a), in paragraph (1),
by inserting ``and the Smithsonian Institution'' after
``Government'';
(2) in the first sentence of subsection (b)--
(A) by inserting ``and the Smithsonian Institution'' after
``in the executive branch''; and
(B) by striking ``such department, agency, or
instrumentality'' and inserting ``such department, agency,
instrumentality, or Institution''; and
(3) in subsection (d), by inserting ``and the Smithsonian
Institution'' after ``instrumentality''.
(d) Application.--The amendments made by subsections (a), (b), and
(c) shall take effect on the date of enactment of this Act and shall
apply to and may be raised in any administrative or judicial claim or
action brought before such date of enactment but pending on such date,
and any administrative or judicial claim or action brought after such
date regardless of whether the claim or action arose prior to such
date, if the claim or action was brought within the applicable statute
of limitations.
(e) Labor-Management Laws.--Section 7103(a)(3) of title 5, United
States Code, is amended--
(1) by striking ``and'' after ``Library of Congress,''; and
(2) by inserting ``and the Smithsonian Institution'' after
``Government Printing Office,''.
TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998
SEC. 401. SHORT TITLE.
This title may be cited as the ``Rehabilitation Act Amendments of 1998''.
SEC. 402. TITLE.
The title of the Rehabilitation Act of 1973 is amended by striking
``to establish special responsibilities'' and all that follows and
inserting the following: ``to create linkage between State vocational
rehabilitation programs and workforce investment activities carried out
under title I of the Workforce Investment Act of 1998, to establish
special responsibilities for the Secretary of Education for
coordination of all activities with respect to individuals with
disabilities within and across programs administered by the Federal
Government, and for other purposes.''.
SEC. 403. GENERAL PROVISIONS.
The Rehabilitation Act of 1973 is amended by striking the matter
preceding title I and inserting the following:
``Short Title; Table of Contents
``Sec. 1. (a) Short Title.--This Act may be cited as the
`Rehabilitation Act of 1973'.
``(b) Table of Contents.--The table of contents for this Act is as
follows:
``Sec. 1. Short title; table of contents.
``Sec. 2. Findings; purpose; policy.
``Sec. 3. Rehabilitation Services Administration.
``Sec. 4. Advance funding.
``Sec. 5. Joint funding.
``Sec. 6. Definitions.
``Sec. 7. Allotment percentage.
``Sec. 8. Nonduplication.
``Sec. 9. Application of other laws.
``Sec. 10. Administration of the Act.
``Sec. 11. Reports.
``Sec. 12. Evaluation.
``Sec. 13. Information clearinghouse.
``Sec. 14. Transfer of funds.
``Sec. 15. State administration.
``Sec. 16. Review of applications.
``Sec. 17. Carryover.
``Sec. 18. Client assistance information.
``Sec. 19. Traditionally underserved populations.
``TITLE I--VOCATIONAL REHABILITATION SERVICES
``Part A--General Provisions
``Sec. 100. Declaration of policy; authorization of appropriations.
``Sec. 101. State plans.
``Sec. 102. Eligibility and individualized plan for employment.
``Sec. 103. Vocational rehabilitation services.
``Sec. 104. Non-Federal share for establishment of program.
``Sec. 105. State Rehabilitation Council.
``Sec. 106. Evaluation standards and performance indicators.
``Sec. 107. Monitoring and review.
``Sec. 108. Expenditure of certain amounts.
``Sec. 109. Training of employers with respect to Americans with
Disabilities Act of 1990.
``Part B--Basic Vocational Rehabilitation Services
``Sec. 110. State allotments.
``Sec. 111. Payments to States.
``Sec. 112. Client assistance program.
``Part C--American Indian Vocational Rehabilitation Services
``Sec. 121. Vocational rehabilitation services grants.
``Part D--Vocational Rehabilitation Services Client Information
``Sec. 131. Data sharing.
``TITLE II--RESEARCH AND TRAINING
``Sec. 200. Declaration of purpose.
``Sec. 201. Authorization of appropriations.
``Sec. 202. National Institute on Disability and Rehabilitation
Research.
``Sec. 203. Interagency Committee.
``Sec. 204. Research and other covered activities.
``Sec. 205. Rehabilitation Research Advisory Council.
``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND
DEMONSTRATIONS
``Sec. 301. Declaration of purpose and competitive basis of grants and
contracts.
``Sec. 302. Training.
``Sec. 303. Demonstration and training programs.
``Sec. 304. Migrant and seasonal farmworkers.
``Sec. 305. Recreational programs.
``Sec. 306. Measuring of project outcomes and performance.
``TITLE IV--NATIONAL COUNCIL ON DISABILITY
``Sec. 400. Establishment of National Council on Disability.
``Sec. 401. Duties of National Council.
``Sec. 402. Compensation of National Council members.
``Sec. 403. Staff of National Council.
``Sec. 404. Administrative powers of National Council.
``Sec. 405. Authorization of Appropriations.
``TITLE V--RIGHTS AND ADVOCACY
``Sec. 501. Employment of individuals with disabilities.
``Sec. 502. Architectural and Transportation Barriers Compliance Board.
``Sec. 503. Employment under Federal contracts.
``Sec. 504. Nondiscrimination under Federal grants and programs.
``Sec. 505. Remedies and attorneys' fees.
``Sec. 506. Secretarial responsibilities.
``Sec. 507. Interagency Disability Coordinating Council.
``Sec. 508. Electronic and information technology regulations.
``Sec. 509. Protection and advocacy of individual rights.
``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES
``Sec. 601. Short title.
``Part A--Projects With Industry
``Sec. 611. Projects with industry.
``Sec. 612. Authorization of appropriations.
``Part B--Supported Employment Services for Individuals With the Most
Significant Disabilities
``Sec. 621. Purpose.
``Sec. 622. Allotments.
``Sec. 623. Availability of services.
``Sec. 624. Eligibility.
``Sec. 625. State plan.
``Sec. 626. Restriction.
``Sec. 627. Savings provision.
``Sec. 628. Authorization of appropriations.
``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT
LIVING
``Chapter 1--Individuals With Significant Disabilities
``Part A--General Provisions
``Sec. 701. Purpose.
``Sec. 702. Definitions.
``Sec. 703. Eligibility for receipt of services.
``Sec. 704. State plan.
``Sec. 705. Statewide Independent Living Council.
``Sec. 706. Responsibilities of the Commissioner.
``Part B--Independent Living Services
``Sec. 711. Allotments.
``Sec. 712. Payments to States from allotments.
``Sec. 713. Authorized uses of funds.
``Sec. 714. Authorization of appropriations.
``Part C--Centers for Independent Living
``Sec. 721. Program authorization.
``Sec. 722. Grants to centers for independent living in States in which
Federal funding exceeds State funding.
``Sec. 723. Grants to centers for independent living in States in which
State funding equals or exceeds Federal funding.
``Sec. 724. Centers operated by State agencies.
``Sec. 725. Standards and assurances for centers for independent living.
``Sec. 726. Definitions.
``Sec. 727. Authorization of appropriations.
``Chapter 2--Independent Living Services for Older Individuals Who Are
Blind
``Sec. 751. Definition.
``Sec. 752. Program of grants.
``Sec. 753. Authorization of appropriations.
``Findings; Purpose; Policy
``Sec. 2. (a) Findings.--Congress finds that--
``(1) millions of Americans have one or more physical or mental
disabilities and the number of Americans with such disabilities is
increasing;
``(2) individuals with disabilities constitute one of the most
disadvantaged groups in society;
``(3) disability is a natural part of the human experience and
in no way diminishes the right of individuals to--
``(A) live independently;
``(B) enjoy self-determination;
``(C) make choices;
``(D) contribute to society;
``(E) pursue meaningful careers; and
``(F) enjoy full inclusion and integration in the economic,
political, social, cultural, and educational mainstream of
American society;
``(4) increased employment of individuals with disabilities can
be achieved through implementation of statewide workforce
investment systems under title I of the Workforce Investment Act of
1998 that provide meaningful and effective participation for
individuals with disabilities in workforce investment activities
and activities carried out under the vocational rehabilitation
program established under title I, and through the provision of
independent living services, support services, and meaningful
opportunities for employment in integrated work settings through
the provision of reasonable accommodations;
``(5) individuals with disabilities continually encounter
various forms of discrimination in such critical areas as
employment, housing, public accommodations, education,
transportation, communication, recreation, institutionalization,
health services, voting, and public services; and
``(6) the goals of the Nation properly include the goal of
providing individuals with disabilities with the tools necessary
to--
``(A) make informed choices and decisions; and
``(B) achieve equality of opportunity, full inclusion and
integration in society, employment, independent living, and
economic and social self-sufficiency, for such individuals.
``(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) statewide workforce investment systems implemented in
accordance with title I of the Workforce Investment Act of 1998
that include, as integral components, comprehensive and
coordinated state-of-the-art programs of vocational
rehabilitation;
``(B) independent living centers and services;
``(C) research;
``(D) training;
``(E) demonstration projects; and
``(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.
``(c) Policy.--It is the policy of the United States that all
programs, projects, and activities receiving assistance under this Act
shall be carried out in a manner consistent with the principles of--
``(1) respect for individual dignity, personal responsibility,
self-determination, and pursuit of meaningful careers, based on
informed choice, of individuals with disabilities;
``(2) respect for the privacy, rights, and equal access
(including the use of accessible formats), of the individuals;
``(3) inclusion, integration, and full participation of the
individuals;
``(4) support for the involvement of an individual's
representative if an individual with a disability requests,
desires, or needs such support; and
``(5) support for individual and systemic advocacy and
community involvement.
``Rehabilitation Services Administration
``Sec. 3. (a) There is established in the Office of the Secretary a
Rehabilitation Services Administration which shall be headed by a
Commissioner (hereinafter in this Act referred to as the
`Commissioner') appointed by the President by and with the advice and
consent of the Senate. Except for titles IV and V and as otherwise
specifically provided in this Act, such Administration shall be the
principal agency, and the Commissioner shall be the principal officer,
of such Department for carrying out this Act. The Commissioner shall be
an individual with substantial experience in rehabilitation and in
rehabilitation program management. In the performance of the functions
of the office, the Commissioner shall be directly responsible to the
Secretary or to the Under Secretary or an appropriate Assistant
Secretary of such Department, as designated by the Secretary. The
functions of the Commissioner shall not be delegated to any officer not
directly responsible, both with respect to program operation and
administration, to the Commissioner. Any reference in this Act to
duties to be carried out by the Commissioner shall be considered to be
a reference to duties to be carried out by the Secretary acting through
the Commissioner. In carrying out any of the functions of the office
under this Act, the Commissioner shall be guided by general policies of
the National Council on Disability established under title IV of this Act.
``(b) The Secretary shall take whatever action is necessary to
ensure that funds appropriated pursuant to this Act are expended only
for the programs, personnel, and administration of programs carried out
under this Act.
``Advance Funding
``Sec. 4. (a) For the purpose of affording adequate notice of
funding available under this Act, appropriations under this Act are
authorized to be included in the appropriation Act for the fiscal year
preceding the fiscal year for which they are available for obligation.
``(b) In order to effect a transition to the advance funding method
of timing appropriation action, the authority provided by subsection
(a) of this section shall apply notwithstanding that its initial
application will result in the enactment in the same year (whether in
the same appropriation Act or otherwise) of two separate
appropriations, one for the then current fiscal year and one for the
succeeding fiscal year.
``Joint Funding
``Sec. 5. Pursuant to regulations prescribed by the President, and
to the extent consistent with the other provisions of this Act, where
funds are provided for a single project by more than one Federal agency
to an agency or organization assisted under this Act, the Federal
agency principally involved may be designated to act for all in
administering the funds provided, and, in such cases, a single non-
Federal share requirement may be established according to the
proportion of funds advanced by each agency. When the principal agency
involved is the Rehabilitation Services Administration, it may waive
any grant or contract requirement (as defined by such regulations)
under or pursuant to any law other than this Act, which requirement is
inconsistent with the similar requirements of the administering agency
under or pursuant to this Act.
``Definitions
``Sec. 6. For the purposes of this Act:
``(1) The term `administrative costs' means expenditures
incurred in the performance of administrative functions under the
vocational rehabilitation program carried out under title I,
including expenses related to program planning, development,
monitoring, and evaluation, including expenses for--
``(A) quality assurance;
``(B) budgeting, accounting, financial management,
information systems, and related data processing;
``(C) providing information about the program to the
public;
``(D) technical assistance and support services to other
State agencies, private nonprofit organizations, and businesses
and industries, except for technical assistance and support
services described in section 103(b)(5);
``(E) the State Rehabilitation Council and other advisory
committees;
``(F) professional organization membership dues for
designated State unit employees;
``(G) the removal of architectural barriers in State
vocational rehabilitation agency offices and State operated
rehabilitation facilities;
``(H) operating and maintaining designated State unit
facilities, equipment, and grounds;
``(I) supplies;
``(J) administration of the comprehensive system of
personnel development described in section 101(a)(7), including
personnel administration, administration of affirmative action
plans, and training and staff development;
``(K) administrative salaries, including clerical and other
support staff salaries, in support of these administrative
functions;
``(L) travel costs related to carrying out the program,
other than travel costs related to the provision of services;
``(M) costs incurred in conducting reviews of
rehabilitation counselor or coordinator determinations under
section 102(c); and
``(N) legal expenses required in the administration of the
program.
``(2) Assessment for determining eligibility and vocational
rehabilitation needs.--The term `assessment for determining
eligibility and vocational rehabilitation needs' means, as
appropriate in each case--
``(A)(i) a review of existing data--
``(I) to determine whether an individual is eligible
for vocational rehabilitation services; and
``(II) to assign priority for an order of selection
described in section 101(a)(5)(A) in the States that use an
order of selection pursuant to section 101(a)(5)(A); and
``(ii) to the extent necessary, the provision of
appropriate assessment activities to obtain necessary
additional data to make such determination and assignment;
``(B) to the extent additional data is necessary to make a
determination of the employment outcomes, and the objectives,
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, of the eligible
individual, which comprehensive assessment--
``(i) is limited to information that is necessary to
identify the rehabilitation needs of the individual and to
develop the individualized plan for employment of the
eligible individual;
``(ii) uses, as a primary source of such information,
to the maximum extent possible and appropriate and in
accordance with confidentiality requirements--
``(I) existing information obtained for the
purposes of determining the eligibility of the
individual and assigning priority for an order of
selection described in section 101(a)(5)(A) for the
individual; and
``(II) such information as can be provided by the
individual and, where appropriate, by the family of the
individual;
``(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, 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
``(iv) may include, to the degree needed, an appraisal
of the patterns of work behavior of the individual and
services needed for the individual to acquire occupational
skills, and to develop work attitudes, work habits, work
tolerance, and social and behavior patterns necessary for
successful job performance, including the utilization of
work in real job situations to assess and develop the
capacities of the individual to perform adequately in a
work environment;
``(C) referral, for the provision of rehabilitation
technology services to the individual, to assess and develop
the capacities of the individual to perform in a work
environment; and
``(D) an exploration of the individual's abilities,
capabilities, and capacity to perform in work situations, which
shall be assessed periodically during trial work experiences,
including experiences in which the individual is provided
appropriate supports and training.
``(3) Assistive technology device.--The term `assistive
technology device' has the meaning given such term in section 3(2)
of the Technology-Related Assistance for Individuals With
Disabilities Act of 1988 (29 U.S.C. 2202(2)), except that the
reference in such section to the term `individuals with
disabilities' shall be deemed to mean more than one individual with
a disability as defined in paragraph (20)(A).
``(4) Assistive technology service.--The term `assistive
technology service' has the meaning given such term in section 3(3)
of the Technology-Related Assistance for Individuals With
Disabilities Act of 1988 (29 U.S.C. 2202(3)), except that the
reference in such section--
``(A) to the term `individual with a disability' shall be
deemed to mean an individual with a disability, as defined in
paragraph (20)(A); and
``(B) to the term `individuals with disabilities' shall be
deemed to mean more than one such individual.
``(5) Community rehabilitation program.--The term `community
rehabilitation program' means a program that provides directly or
facilitates the provision of vocational rehabilitation services to
individuals with disabilities, and that provides, singly or in
combination, for an individual with a disability to enable the
individual to maximize opportunities for employment, including
career advancement--
``(A) medical, psychiatric, psychological, social, and
vocational services that are provided under one management;
``(B) testing, fitting, or training in the use of
prosthetic and orthotic devices;
``(C) recreational therapy;
``(D) physical and occupational therapy;
``(E) speech, language, and hearing therapy;
``(F) psychiatric, psychological, and social services,
including positive behavior management;
``(G) assessment for determining eligibility and vocational
rehabilitation needs;
``(H) rehabilitation technology;
``(I) job development, placement, and retention services;
``(J) evaluation or control of specific disabilities;
``(K) orientation and mobility services for individuals who
are blind;
``(L) extended employment;
``(M) psychosocial rehabilitation services;
``(N) supported employment services and extended services;
``(O) services to family members when necessary to the
vocational rehabilitation of the individual;
``(P) personal assistance services; or
``(Q) services similar to the services described in one of
subparagraphs (A) through (P).
``(6) Construction; cost of construction.--
``(A) Construction.--The term `construction' means--
``(i) the construction of new buildings;
``(ii) the acquisition, expansion, remodeling,
alteration, and renovation of existing buildings; and
``(iii) initial equipment of buildings described in
clauses (i) and (ii).
``(B) Cost of construction.--The term `cost of
construction' includes architects' fees and the cost of
acquisition of land in connection with construction but does
not include the cost of offsite improvements.
``(7) Criminal act.--The term `criminal act' means any crime,
including an act, omission, or possession under the laws of the
United States or a State or unit of general local government, which
poses a substantial threat of personal injury, notwithstanding that
by reason of age, insanity, or intoxication or otherwise the person
engaging in the act, omission, or possession was legally incapable
of committing a crime.
``(8) Designated state agency; designated state unit.--
``(A) Designated state agency.--The term `designated State
agency' means an agency designated under section 101(a)(2)(A).
``(B) Designated state unit.--The term `designated State
unit' means--
``(i) any State agency unit required under section
101(a)(2)(B)(ii); or
``(ii) in cases in which no such unit is so required,
the State agency described in section 101(a)(2)(B)(i).
``(9) Disability.--The term `disability' means--
``(A) except as otherwise provided in subparagraph (B), a
physical or mental impairment that constitutes or results in a
substantial impediment to employment; or
``(B) for purposes of sections 2, 14, and 15, and titles
II, IV, V, and VII, a physical or mental impairment that
substantially limits one or more major life activities.
``(10) Drug and illegal use of drugs.--
``(A) Drug.--The term `drug' means a controlled substance,
as defined in schedules I through V of section 202 of the
Controlled Substances Act (21 U.S.C. 812).
``(B) Illegal use of drugs.--The term `illegal use of
drugs' means the use of drugs, the possession or distribution
of which is unlawful under the Controlled Substances Act. Such
term does not include the use of a drug taken under supervision
by a licensed health care professional, or other uses
authorized by the Controlled Substances Act or other provisions
of Federal law.
``(11) Employment outcome.--The term `employment outcome'
means, with respect to an individual--
``(A) entering or retaining full-time or, if appropriate,
part-time competitive employment in the integrated labor
market;
``(B) satisfying the vocational outcome of supported
employment; or
``(C) satisfying any other vocational outcome the Secretary
may determine to be appropriate (including satisfying the
vocational outcome of self-employment, telecommuting, or
business ownership),
in a manner consistent with this Act.
``(12) Establishment of a community rehabilitation program.--
The term `establishment of a community rehabilitation program'
includes the acquisition, expansion, remodeling, or alteration of
existing buildings necessary to adapt them to community
rehabilitation program purposes or to increase their effectiveness
for such purposes (subject, however, to such limitations as the
Secretary may determine, in accordance with regulations the
Secretary shall prescribe, in order to prevent impairment of the
objectives of, or duplication of, other Federal laws providing
Federal assistance in the construction of facilities for community
rehabilitation programs), and may include such additional equipment
and staffing as the Commissioner considers appropriate.
``(13) Extended services.--The term `extended 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 in maintaining supported 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 a State agency, a nonprofit private
organization, employer, or any other appropriate resource,
after an individual has made the transition from support
provided by the designated State unit.
``(14) Federal share.--
``(A) In general.--Subject to subparagraph (B), the term
`Federal share' means 78.7 percent.
``(B) Exception.--The term `Federal share' means the share
specifically set forth in section 111(a)(3), except that with
respect to payments pursuant to part B of title I to any State
that are used to meet the costs of construction of those
rehabilitation facilities identified in section 103(b)(2) in
such State, the Federal share shall be the percentages
determined in accordance with the provisions of section
111(a)(3) applicable with respect to the State.
``(C) Relationship to expenditures by a political
subdivision.--For the purpose of determining the non-Federal
share with respect to a State, expenditures by a political
subdivision thereof or by a local agency shall be regarded as
expenditures by such State, subject to such limitations and
conditions as the Secretary shall by regulation prescribe.
``(15) Governor.--The term `Governor' means a chief executive
officer of a State.
``(16) Impartial hearing officer.--
``(A) In general.--The term `impartial hearing officer'
means an individual--
``(i) who is not an employee of a public agency (other
than an administrative law judge, hearing examiner, or
employee of an institution of higher education);
``(ii) who is not a member of the State Rehabilitation
Council described in section 105;
``(iii) who has not been involved previously in the
vocational rehabilitation of the applicant or client;
``(iv) who has knowledge of the delivery of vocational
rehabilitation services, the State plan under section 101,
and the Federal and State rules governing the provision of
such services and training with respect to the performance
of official duties; and
``(v) who has no personal or financial interest that
would be in conflict with the objectivity of the
individual.
``(B) Construction.--An individual shall not be considered
to be an employee of a public agency for purposes of
subparagraph (A)(i) solely because the individual is paid by
the agency to serve as a hearing officer.
``(17) Independent living core services.--The term `independent
living core services' means--
``(A) information and referral services;
``(B) independent living skills training;
``(C) peer counseling (including cross-disability peer
counseling); and
``(D) individual and systems advocacy.
``(18) Independent living services.--The term `inde- pendent
living services' includes--
``(A) independent living core services; and
``(B)(i) counseling services, including psychological,
psychotherapeutic, and related services;
``(ii) services related to securing housing or shelter,
including services related to community group living, and
supportive of the purposes of this Act and of the titles of
this Act, and adaptive housing services (including appropriate
accommodations to and modifications of any space used to serve,
or occupied by, individuals with disabilities);
``(iii) rehabilitation technology;
``(iv) mobility training;
``(v) services and training for individuals with cognitive
and sensory disabilities, including life skills training, and
interpreter and reader services;
``(vi) personal assistance services, including attendant
care and the training of personnel providing such services;
``(vii) surveys, directories, and other activities to
identify appropriate housing, recreation opportunities, and
accessible transportation, and other support services;
``(viii) consumer information programs on rehabilitation
and independent living services available under this Act,
especially for minorities and other individuals with
disabilities who have traditionally been unserved or
underserved by programs under this Act;
``(ix) education and training necessary for living in a
community and participating in community activities;
``(x) supported living;
``(xi) transportation, including referral and assistance
for such transportation and training in the use of public
transportation vehicles and systems;
``(xii) physical rehabilitation;
``(xiii) therapeutic treatment;
``(xiv) provision of needed prostheses and other appliances
and devices;
``(xv) individual and group social and recreational
services;
``(xvi) training to develop skills specifically designed
for youths who are individuals with disabilities to promote
self-awareness and esteem, develop advocacy and self-
empowerment skills, and explore career options;
``(xvii) services for children;
``(xviii) services under other Federal, State, or local
programs designed to provide resources, training, counseling,
or other assistance, of substantial benefit in enhancing the
independence, productivity, and quality of life of individuals
with disabilities;
``(xix) appropriate preventive services to decrease the
need of individuals assisted under this Act for similar
services in the future;
``(xx) community awareness programs to enhance the
understanding and integration into society of individuals with
disabilities; and
``(xxi) such other services as may be necessary and not
inconsistent with the provisions of this Act.
``(19) Indian; american indian; indian american; indian
tribe.--
``(A) In general.--The terms `Indian', `American Indian',
and `Indian American' mean an individual who is a member of an
Indian tribe.
``(B) Indian tribe.--The term `Indian tribe' means any
Federal or State Indian tribe, band, rancheria, pueblo, colony,
or community, including any Alaskan native village or regional
village corporation (as defined in or established pursuant to
the Alaska Native Claims Settlement Act).
``(20) Individual with a disability.--
``(A) In general.--Except as otherwise provided in
subparagraph (B), the term `individual with a disability' means
any individual who--
``(i) has a physical or mental impairment which for
such individual constitutes or results in a substantial
impediment to employment; and
``(ii) can benefit in terms of an employment outcome
from vocational rehabilitation services provided pursuant
to title I, III, or VI.
``(B) Certain programs; limitations on major life
activities.--Subject to subparagraphs (C), (D), (E), and (F),
the term `individual with a disability' means, for purposes of
sections 2, 14, and 15, and titles II, IV, V, and VII of this Act,
any person who--
``(i) has a physical or mental impairment which
substantially limits one or more of such person's major
life activities;
``(ii) has a record of such an impairment; or
``(iii) is regarded as having such an impairment.
``(C) Rights and advocacy provisions.--
``(i) In general; exclusion of individuals engaging in
drug use.--For purposes of title V, the term `individual
with a disability' does not include an individual who is
currently engaging in the illegal use of drugs, when a
covered entity acts on the basis of such use.
``(ii) Exception for individuals no longer engaging in
drug use.--Nothing in clause (i) shall be construed to
exclude as an individual with a disability an individual
who--
``(I) has successfully completed a supervised drug
rehabilitation program and is no longer engaging in the
illegal use of drugs, or has otherwise been
rehabilitated successfully and is no longer engaging in
such use;
``(II) is participating in a supervised
rehabilitation program and is no longer engaging in
such use; or
``(III) is erroneously regarded as engaging in such
use, but is not engaging in such use;
except that it shall not be a violation of this Act for a
covered entity to adopt or administer reasonable policies
or procedures, including but not limited to drug testing,
designed to ensure that an individual described in
subclause (I) or (II) is no longer engaging in the illegal
use of drugs.
``(iii) Exclusion for certain services.--
Notwithstanding clause (i), for purposes of programs and
activities providing health services and services provided
under titles I, II, and III, an individual shall not be
excluded from the benefits of such programs or activities
on the basis of his or her current illegal use of drugs if
he or she is otherwise entitled to such services.
``(iv) Disciplinary action.--For purposes of programs
and activities providing educational services, local
educational agencies may take disciplinary action
pertaining to the use or possession of illegal drugs or
alcohol against any student who is an individual with a
disability and who currently is engaging in the illegal use
of drugs or in the use of alcohol to the same extent that
such disciplinary action is taken against students who are
not individuals with disabilities. Furthermore, the due
process procedures at section 104.36 of title 34, Code of
Federal Regulations (or any corresponding similar
regulation or ruling) shall not apply to such disciplinary
actions.
``(v) Employment; exclusion of alcoholics.--For
purposes of sections 503 and 504 as such sections relate to
employment, the term `individual with a disability' does
not include any individual who is an alcoholic whose
current use of alcohol prevents such individual from
performing the duties of the job in question or whose
employment, by reason of such current alcohol abuse, would
constitute a direct threat to property or the safety of
others.
``(D) Employment; exclusion of individuals with certain
diseases or infections.--For the purposes of sections 503 and
504, as such sections relate to employment, such term does not
include an individual who has a currently contagious disease or
infection and who, by reason of such disease or infection,
would constitute a direct threat to the health or safety of
other individuals or who, by reason of the currently contagious
disease or infection, is unable to perform the duties of the
job.
``(E) Rights provisions; exclusion of individuals on basis
of homosexuality or bisexuality.--For the purposes of sections
501, 503, and 504--
``(i) for purposes of the application of subparagraph
(B) to such sections, the term `impairment' does not
include homosexuality or bisexuality; and
``(ii) therefore the term `individual with a
disability' does not include an individual on the basis of
homosexuality or bisexuality.
``(F) Rights provisions; exclusion of individuals on basis
of certain disorders.--For the purposes of sections 501, 503,
and 504, the term `individual with a disability' does not
include an individual on the basis of--
``(i) transvestism, transsexualism, pedophilia,
exhibitionism, voyeurism, gender identity disorders not
resulting from physical impairments, or other sexual
behavior disorders;
``(ii) compulsive gambling, kleptomania, or pyromania;
or
``(iii) psychoactive substance use disorders resulting
from current illegal use of drugs.
``(G) Individuals with disabilities.--The term `individuals
with disabilities' means more than one individual with a
disability.
``(21) Individual with a significant disability.--
``(A) In general.--Except as provided in subparagraph (B)
or (C), the term `individual with a significant disability'
means an individual with a disability--
``(i) who has a severe physical or mental impairment
which seriously limits one or more functional capacities
(such as mobility, communication, self-care, self-
direction, interpersonal skills, work tolerance, or work
skills) in terms of an employment outcome;
``(ii) whose vocational rehabilitation can be expected
to require multiple vocational rehabilitation services over
an extended period of time; and
``(iii) who has one or more physical or mental
disabilities resulting from amputation, arthritis, autism,
blindness, burn injury, cancer, cerebral palsy, cystic
fibrosis, deafness, head injury, heart disease, hemiplegia,
hemophilia, respiratory or pulmonary dysfunction, mental
retardation, mental illness, multiple sclerosis, muscular
dystrophy, musculo-skeletal disorders, neurological
disorders (including stroke and epilepsy), paraplegia,
quadriplegia, and other spinal cord conditions, sickle cell
anemia, specific learning disability, end-stage renal
disease, or another disability or combination of
disabilities determined on the basis of an assessment for
determining eligibility and vocational rehabilitation needs
described in subparagraphs (A) and (B) of paragraph (2) to
cause comparable substantial functional limitation.
``(B) Independent living services and centers for
independent living.--For purposes of title VII, the term
`individual with a significant disability' means an individual
with a severe physical or mental impairment whose ability to
function independently in the family or community or whose
ability to obtain, maintain, or advance in employment is
substantially limited and for whom the delivery of independent
living services will improve the ability to function, continue
functioning, or move toward functioning independently in the
family or community or to continue in employment, respectively.
``(C) Research and training.--For purposes of title II, the
term `individual with a significant disability' includes an
individual described in subparagraph (A) or (B).
``(D) Individuals with significant disabilities.--The term
`individuals with significant disabilities' means more than one
individual with a significant disability.
``(E) Individual with a most significant disability.--
``(i) In general.--The term `individual with a most
significant disability', used with respect to an individual
in a State, means an individual with a significant
disability who meets criteria established by the State
under section 101(a)(5)(C).
``(ii) Individuals with the most significant
disabilities.--The term `individuals with the most
significant disabilities' means more than one individual
with a most significant disability.
``(22) Individual's representative; applicant's
representative.--The terms `individual's representative' and
`applicant's representative' mean a parent, a family member, a
guardian, an advocate, or an authorized representative of an
individual or applicant, respectively.
``(23) Institution of higher education.--The term `institution
of higher education' has the meaning given the term in section
1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a)).
``(24) 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) Local workforce investment board.--The term `local
workforce investment board' means a local workforce investment
board established under section 117 of the Workforce Investment Act
of 1998.
``(26) 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) 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
worksite;
``(viii) any other service identified in section 103;
or
``(ix) a service similar to another service described
in this subparagraph.
``(28) 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.
``(29) Public or nonprofit.--The term `public or nonprofit',
used with respect to an agency or organization, includes an Indian
tribe.
``(30) 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) Secretary.--The term `Secretary', except when the
context otherwise requires, means the Secretary of Education.
``(32) 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) 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) 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.
``(35) 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) 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) 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 rehabilitation
objectives identified in the individualized plan for
employment.
``(37) 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) 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) 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.
``Allotment Percentage
``Sec. 7. (a)(1) For purposes of section 110, the allotment
percentage for any State shall be 100 per centum less that percentage
which bears the same ratio to 50 per centum as the per capita income of
such State bears to the per capita income of the United States, except
that--
``(A) the allotment percentage shall in no case be more than 75
per centum or less than 33 1/3 per centum; and
``(B) the allotment percentage for the District of Columbia,
Puerto Rico, Guam, the Virgin Islands, American Samoa, and the
Commonwealth of the Northern Mariana Islands shall be 75 per
centum.
``(2) The allotment percentages shall be promulgated by the
Secretary between October 1 and December 31 of each even-numbered year,
on the basis of the average of the per capita incomes of the States and
of the United States for the three most recent consecutive years for
which satisfactory data are available from the Department of Commerce.
Such promulgation shall be conclusive for each of the 2 fiscal years in
the period beginning on the October 1 next succeeding such
promulgation.
``(3) The term `United States' means (but only for purposes of this
subsection) the 50 States and the District of Columbia.
``(b) The population of the several States and of the United States
shall be determined on the basis of the most recent data available, to
be furnished by the Department of Commerce by October 1 of the year
preceding the fiscal year for which funds are appropriated pursuant to
statutory authorizations.
``Nonduplication
``Sec. 8. In determining the amount of any State's Federal share of
expenditures for planning, administration, and services incurred by it
under a State plan approved in accordance with section 101, there shall
be disregarded: (1) any portion of such expenditures which are financed
by Federal funds provided under any other provision of law; and (2) the
amount of any non-Federal funds required to be expended as a condition
of receipt of such Federal funds. No payment may be made from funds
provided under one provision of this Act relating to any cost with respect
to which any payment is made under any other provision of this Act,
except that this section shall not be construed to limit or reduce
fees for services rendered by community rehabilitation programs.
``Application of Other Laws
``Sec. 9. The provisions of the Act of December 5, 1974 (Public Law 93-510)
and of title V of the Act of October 15, 1977 (Public Law 95-134) shall not
apply to the administration of the provisions of this Act or to the
administration of any program or activity under this Act.
``Administration of the Act
``Sec. 10. (a) In carrying out the purposes of this Act, the
Commissioner may--
``(1) 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;
``(2) provide short-term training and technical instruction,
including training for the personnel of community rehabilitation
programs, centers for independent living, and other providers of
services (including job coaches);
``(3) conduct special projects and demonstrations;
``(4) collect, prepare, publish, and disseminate special
educational or informational materials, including reports of the
projects for which funds are provided under this Act; and
``(5) provide monitoring and conduct evaluations.
``(b)(1) In carrying out the duties under this Act, the
Commissioner may utilize the services and facilities of any agency of
the Federal Government and of any other public or nonprofit agency or
organization, in accordance with agreements between the Commissioner
and the head thereof, and may pay therefor, in advance or by way of
reimbursement, as may be provided in the agreement.
``(2) In carrying out the provisions of this Act, the Commissioner
shall appoint such task forces as may be necessary to collect and
disseminate information in order to improve the ability of the
Commissioner to carry out the provisions of this Act.
``(c) The Commissioner may promulgate such regulations as are considered
appropriate to carry out the Commissioner's duties under this Act.
``(d) The Secretary shall promulgate regulations regarding the
requirements for the implementation of an order of selection for
vocational rehabilitation services under section 101(a)(5)(A) if such
services cannot be provided to all eligible individuals with
disabilities who apply for such services.
``(e) Not later than 180 days after the date of enactment of the
Rehabilitation Act Amendments of 1998, the Secretary shall receive
public comment and promulgate regulations to implement the amendments
made by the Rehabilitation Act Amendments of 1998.
``(f) In promulgating regulations to carry out this Act, the Secretary
shall promulgate only regulations that are necessary to administer and
ensure compliance with the specific requirements of this Act.
``(g) There are authorized to be appropriated to carry out this
section such sums as may be necessary.
``Reports
``Sec. 11. (a) Not later than one hundred and eighty days after the
close of each fiscal year, the Commissioner shall prepare and submit to
the President and to the Congress a full and complete report on the
activities carried out under this Act, including the activities and
staffing of the information clearinghouse under section 15.
``(b) The Commissioner shall collect information to determine
whether the purposes of this Act are being met and to assess the
performance of programs carried out under this Act. The Commissioner
shall take whatever action is necessary to assure that the identity of
each individual for which information is supplied under this section is
kept confidential, except as otherwise required by law (including
regulation).
``(c) In preparing the report, the Commissioner shall annually
collect and include in the report information based on the information
submitted by States in accordance with section 101(a)(10), including
information on administrative costs as required by section
101(a)(10)(D). The Commissioner shall, to the maximum extent
appropriate, include in the report all information that is required to
be submitted in the reports described in section 136(d) of the
Workforce Investment Act of 1998 and that pertains to the employment of
individuals with disabilities.
``Evaluation
``Sec. 12. (a) For the purpose of improving program management and
effectiveness, the Secretary, in consultation with the Commissioner,
shall evaluate all the programs authorized by this Act, their general
effectiveness in relation to their cost, their impact on related
programs, and their structure and mechanisms for delivery of services,
using appropriate methodology and evaluative research designs. The
Secretary shall establish and use standards for the evaluations
required by this subsection. Such an evaluation shall be conducted by a
person not immediately involved in the administration of the program
evaluated.
``(b) In carrying out evaluations under this section, the Secretary
shall obtain the opinions of program and project participants about the
strengths and weaknesses of the programs and projects.
``(c) The Secretary shall take the necessary action to assure that
all studies, evaluations, proposals, and data produced or developed
with Federal funds under this Act shall become the property of the
United States.
``(d) Such information as the Secretary may determine to be
necessary for purposes of the evaluations conducted under this section
shall be made available upon request of the Secretary, by the
departments and agencies of the executive branch.
``(e)(1) To assess the linkages between vocational rehabilitation
services and economic and noneconomic outcomes, the Secretary shall
continue to conduct a longitudinal study of a national sample of
applicants for the services.
``(2) The study shall address factors related to attrition and
completion of the program through which the services are provided and
factors within and outside the program affecting results. Appropriate
comparisons shall be used to contrast the experiences of similar
persons who do not obtain the services.
``(3) The study shall be planned to cover the period beginning on
the application of individuals with disabilities for the services,
through the eligibility determination and provision of services for the
individuals, and a further period of not less than 2 years after the
termination of services.
``(f)(1) The Commissioner shall identify and disseminate
information on exemplary practices concerning vocational
rehabilitation.
``(2) To facilitate compliance with paragraph (1), the Commissioner
shall conduct studies and analyses that identify exemplary practices
concerning vocational rehabilitation, including studies in areas
relating to providing informed choice in the rehabilitation process,
promoting consumer satisfaction, promoting job placement and retention,
providing supported employment, providing services to particular
disability populations, financing personal assistance services,
providing assistive technology devices and assistive technology
services, entering into cooperative agreements, establishing standards
and certification for community rehabilitation programs, converting
from nonintegrated to integrated employment, and providing caseload
management.
``(g) There are authorized to be appropriated to carry out this
section such sums as may be necessary.
``Information Clearinghouse
``Sec. 13. (a) The Secretary shall establish a central
clearinghouse for information and resource availability for individuals
with disabilities which shall provide information and data regarding--
``(1) the location, provision, and availability of services and
programs for individuals with disabilities, including such
information and data provided by State workforce investment boards
regarding such services and programs authorized under title I of
such Act;
``(2) research and recent medical and scientific developments
bearing on disabilities (and their prevention, amelioration,
causes, and cures); and
``(3) the current numbers of individuals with disabilities and
their needs.
The clearinghouse shall also provide any other relevant information and
data which the Secretary considers appropriate.
``(b) The Commissioner may assist the Secretary to develop within
the Department of Education a coordinated system of information and
data retrieval, which will have the capacity and responsibility to
provide information regarding the information and data referred to in
subsection (a) of this section to the Congress, public and private
agencies and organizations, individuals with disabilities and their
families, professionals in fields serving such individuals, and the
general public.
``(c) The office established to carry out the provisions of this
section shall be known as the `Office of Information and Resources for
Individuals with Disabilities'.
``(d) There are authorized to be appropriated to carry out this
section such sums as may be necessary.
``Transfer of Funds
``Sec. 14. (a) Except as provided in subsection (b) of this
section, no funds appropriated under this Act for any program or
activity may be used for any purpose other than that for which the
funds were specifically authorized.
``(b) No more than 1 percent of funds appropriated for
discretionary grants, contracts, or cooperative agreements authorized
by this Act may be used for the purpose of providing non-Federal panels
of experts to review applications for such grants, contracts, or
cooperative agreements.
``State Administration
``Sec. 15. The application of any State rule or policy relating to
the administration or operation of programs funded by this Act
(including any rule or policy based on State interpretation of any
Federal law, regulation, or guideline) shall be identified as a State
imposed requirement.
``Review of Applications
``Sec. 16. Applications for grants in excess of $100,000 in the
aggregate authorized to be funded under this Act, other than grants
primarily for the purpose of conducting dissemination or conferences,
shall be reviewed by panels of experts which shall include a majority
of non-Federal members. Non-Federal members may be provided travel, per
diem, and consultant fees not to exceed the daily equivalent of the
rate of pay for level 4 of the Senior Executive Service Schedule under
section 5382 of title 5, United States Code.
``Carryover
``Sec. 17. (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)), 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
``(2) any amounts of program income, including reimbursement
payments under the Social Security Act (42 U.S.C. 301 et seq.),
received by recipients under any grant program specified in
paragraph (1) that are not obligated and expended by recipients
prior to the beginning of the fiscal year succeeding the fiscal
year in which such amounts were received,
shall remain available for obligation and expenditure by such
recipients during such succeeding fiscal year.
``(b) Non-Federal Share.--Such funds shall remain available for
obligation and expenditure by a recipient as provided in subsection (a)
only to the extent that the recipient complied with any Federal share
requirements applicable to the program for the fiscal year for which
the funds were appropriated.
``Client Assistance Information
``Sec. 18. All programs, including community rehabilitation
programs, and projects, that provide services to individuals with
disabilities under this Act shall advise such individuals who are
applicants for or recipients of the services, or the applicants'
representatives or individuals' representatives, of the availability
and purposes of the client assistance program under section 112,
including information on means of seeking assistance under such
program.
``Traditionally Underserved Populations
``Sec. 19. (a) Findings.--With respect to the programs authorized
in titles II through VII, the Congress finds as follows:
``(1) Racial profile.--The racial profile of America is rapidly
changing. While the rate of increase for white Americans is 3.2
percent, the rate of increase for racial and ethnic minorities is
much higher: 38.6 percent for Latinos, 14.6 percent for African-
Americans, and 40.1 percent for Asian-Americans and other ethnic
groups. By the year 2000, the Nation will have 260,000,000 people,
one of every three of whom will be either African-American, Latino,
or Asian-American.
``(2) Rate of disability.--Ethnic and racial minorities tend to
have disabling conditions at a disproportionately high rate. The
rate of work-related disability for American Indians is about one
and one-half times that of the general population. African-
Americans are also one and one-half times more likely to be
disabled than whites and twice as likely to be significantly
disabled.
``(3) Inequitable treatment.--Patterns of inequitable treatment
of minorities have been documented in all major junctures of the
vocational rehabilitation process. As compared to white Americans,
a larger percentage of African-American applicants to the
vocational rehabilitation system are denied acceptance. Of
applicants accepted for service, a larger percentage of African-
American cases are closed without being rehabilitated. Minorities
are provided less training than their white counterparts.
Consistently, less money is spent on minorities than on their white
counterparts.
``(4) Recruitment.--Recruitment efforts within vocational
rehabilitation at the level of preservice training, continuing
education, and in-service training must focus on bringing larger
numbers of minorities into the profession in order to provide
appropriate practitioner knowledge, role models, and sufficient
manpower to address the clearly changing demography of vocational
rehabilitation.
``(b) Outreach to Minorities.--
``(1) In general.--For each fiscal year, the Commissioner and
the Director of the National Institute on Disability and
Rehabilitation Research (referred to in this subsection as the
`Director') shall reserve 1 percent of the funds appropriated for
the fiscal year for programs authorized under titles II, III, VI,
and VII to carry out this subsection. The Commissioner and the
Director shall use the reserved funds to carry out one or more of
the activities described in paragraph (2) through a grant,
contract, or cooperative agreement.
``(2) Activities.--The activities carried out by the
Commissioner and the Director shall include one or more of the
following:
``(A) Making awards to minority entities and Indian tribes
to carry out activities under the programs authorized under
titles II, III, VI, and VII.
``(B) Making awards to minority entities and Indian tribes
to conduct research, training, technical assistance, or a
related activity, to improve services provided under this Act,
especially services provided to individuals from minority
backgrounds.
``(C) Making awards to entities described in paragraph (3)
to provide outreach and technical assistance to minority
entities and Indian tribes to promote their participation in
activities funded under this Act, including assistance to
enhance their capacity to carry out such activities.
``(3) Eligibility.--To be eligible to receive an award under
paragraph (2)(C), an entity shall be a State or a public or private
nonprofit agency or organization, such as an institution of higher
education or an Indian tribe.
``(4) Report.--In each fiscal year, the Commissioner and the
Director shall prepare and submit to Congress a report that
describes the activities funded under this subsection for the
preceding fiscal year.
``(5) Definitions.--In this subsection:
``(A) Historically black college or university.--The term
`historically Black college or university' means a part B institution,
as defined in section 322(2) of the Higher Education Act of 1965
(20 U.S.C. 1061(2)).
``(B) Minority entity.--The term `minority entity' means an
entity that is a historically Black college or university, a
Hispanic-serving institution of higher education, an American
Indian tribal college or university, or another institution of
higher education whose minority student enrollment is at least
50 percent.
``(c) Demonstration.--In awarding grants, or entering into
contracts or cooperative agreements under titles I, II, III, VI, and
VII, and section 509, the Commissioner and the Director, in appropriate
cases, shall require applicants to demonstrate how the applicants will
address, in whole or in part, the needs of individuals with
disabilities from minority backgrounds.''.
SEC. 404. VOCATIONAL REHABILITATION SERVICES.
Title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.)
is amended to read as follows:
``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--
``(A) work--
``(i) is a valued activity, both for individuals and
society; and
``(ii) fulfills the need of an individual to be
productive, promotes independence, enhances self-esteem,
and allows for participation in the mainstream of life in
the United States;
``(B) as a group, individuals with disabilities experience
staggering levels of unemployment and poverty;
``(C) individuals with disabilities, including individuals
with the most significant disabilities, have demonstrated their
ability to achieve gainful employment in integrated settings if
appropriate services and supports are provided;
``(D) reasons for significant numbers of individuals with
disabilities not working, or working at levels not commensurate
with their abilities and capabilities, include--
``(i) discrimination;
``(ii) lack of accessible and available transportation;
``(iii) fear of losing health coverage under the
medicare and medicaid programs carried out under titles
XVIII and XIX of the Social Security Act (42 U.S.C. 1395 et
seq. and 1396 et seq.) or fear of losing private health
insurance; and
``(iv) lack of education, training, and supports to
meet job qualification standards necessary to secure,
retain, regain, or advance in employment;
``(E) enforcement of title V and of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) holds the
promise of ending discrimination for individuals with
disabilities;
``(F) the provision of workforce investment activities and
vocational rehabilitation services can enable individuals with
disabilities, including individuals with the most significant
disabilities, to pursue meaningful careers by securing gainful
employment commensurate with their abilities and capabilities;
and
``(G) linkages between the vocational rehabilitation
programs established under this title and other components of
the statewide workforce investment systems are critical to
ensure effective and meaningful participation by individuals
with disabilities in workforce investment activities.
``(2) Purpose.--The purpose of this title is to assist States
in operating statewide comprehensive, coordinated, effective,
efficient, and accountable programs of vocational rehabilitation,
each of which is--
``(A) an integral part of a statewide workforce investment
system; and
``(B) designed to assess, plan, develop, and provide
vocational rehabilitation services for individuals with
disabilities, consistent with their strengths, resources,
priorities, concerns, abilities, capabilities, interests, and
informed choice, so that such individuals may prepare for and
engage in gainful employment.
``(3) Policy.--It is the policy of the United States that such
a program shall be carried out in a manner consistent with the
following principles:
``(A) Individuals with disabilities, including individuals
with the most significant disabilities, are generally presumed
to be capable of engaging in gainful employment and the
provision of individualized vocational rehabilitation services
can improve their ability to become gainfully employed.
``(B) Individuals with disabilities must be provided the
opportunities to obtain gainful employment in integrated
settings.
``(C) Individuals who are applicants for such programs or
eligible to participate in such programs must be active and
full partners in the vocational rehabilitation process, making
meaningful and informed choices--
``(i) during assessments for determining eligibility
and vocational rehabilitation needs; and
``(ii) in the selection of employment outcomes for the
individuals, services needed to achieve the outcomes,
entities providing such services, and the methods used to
secure such services.
``(D) Families and other natural supports can play
important roles in the success of a vocational rehabilitation
program, if the individual with a disability involved requests,
desires, or needs such supports.
``(E) Vocational rehabilitation counselors that are trained
and prepared in accordance with State policies and procedures
as described in section 101(a)(7)(B) (referred to individually
in this title as a `qualified vocational rehabilitation
counselor'), other qualified rehabilitation personnel, and
other qualified personnel facilitate the accomplishment of the
employment outcomes and objectives of an individual.
``(F) Individuals with disabilities and the individuals'
representatives are full partners in a vocational
rehabilitation program and must be involved on a regular basis
and in a meaningful manner with respect to policy development
and implementation.
``(G) Accountability measures must facilitate the
accomplishment of the goals and objectives of the program,
including providing vocational rehabilitation services to,
among others, individuals with the most significant
disabilities.
``(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, 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.
``(2) Reference.--The reference in paragraph (1) to grants to
States under part B shall not be considered to refer to grants
under section 112.
``(c) Consumer Price Index.--
``(1) Percentage change.--No later than November 15 of each
fiscal year (beginning with fiscal year 1979), the Secretary of
Labor shall publish in the Federal Register the percentage change
in the Consumer Price Index published for October of the preceding
fiscal year and October of the fiscal year in which such
publication is made.
``(2) Application.--
``(A) Increase.--If in any fiscal year the percentage
change published under paragraph (1) indicates an increase in
the Consumer Price Index, then the amount to be appropriated
under subsection (b)(1) for the subsequent fiscal year shall be
at least the amount appropriated under subsection (b)(1) for
the fiscal year in which the publication is made under
paragraph (1) increased by such percentage change.
``(B) No increase or decrease.--If in any fiscal year the
percentage change published under paragraph (1) does not
indicate an increase in the Consumer Price Index, then the
amount to be appropriated under subsection (b)(1) for the
subsequent fiscal year shall be at least the amount
appropriated under subsection (b)(1) for the fiscal year in
which the publication is made under paragraph (1).
``(3) Definition.--For purposes of this section, the term
`Consumer Price Index' means the Consumer Price Index for All Urban
Consumers, published monthly by the Bureau of Labor Statistics.
``(d) Extension.--
``(1) In general.--
``(A) Authorization or duration of program.--Unless the
Congress in the regular session which ends prior to the
beginning of the terminal fiscal year--
``(i) of the authorization of appropriations for the
program authorized by the State grant program under part B
of this title; or
``(ii) of the duration of the program authorized by the
State grant program under part B of this title;
has passed legislation which would have the effect of extending
the authorization or duration (as the case may be) of such
program, such authorization or duration is automatically
extended for 1 additional year for the program authorized by
this title.
``(B) Calculation.--The amount authorized to be
appropriated for the additional fiscal year described in
subparagraph (A) shall be an amount equal to the amount
appropriated for such program for fiscal year 2003, increased
by the percentage change in the Consumer Price Index determined
under subsection (c) for the immediately preceding fiscal year,
if the percentage change indicates an increase.
``(2) Construction.--
``(A) Passage of legislation.--For the purposes of
paragraph (1)(A), Congress shall not be deemed to have passed
legislation unless such legislation becomes law.
``(B) Acts or determinations of commissioner.--In any case
where the Commissioner is required under an applicable statute
to carry out certain acts or make certain determinations which
are necessary for the continuation of the program authorized by
this title, if such acts or determinations are required during
the terminal year of such program, such acts and determinations
shall be required during any fiscal year in which the extension
described in that part of paragraph (1) that follows clause
(ii) of paragraph (1)(A) is in effect.
``SEC. 101. STATE PLANS.
``(a) Plan Requirements.--
``(1) In general.--
``(A) Submission.--To be eligible to participate in
programs under this title, a State shall submit to the
Commissioner a State plan for vocational rehabilitation
services that meets the requirements of this section, on the
same date that the State submits a State plan under section 112
of the Workforce Investment Act of 1998.
``(B) Nonduplication.--The State shall not be required to
submit, in the State plan for vocational rehabilitation
services, policies, procedures, or descriptions required under
this title that have been previously submitted to the
Commissioner and that demonstrate that such State meets the
requirements of this title, including any policies, procedures,
or descriptions submitted under this title as in effect on the
day before the effective date of the Rehabilitation Act
Amendments of 1998.
``(C) Duration.--The State plan shall remain in effect
subject to the submission of such modifications as the State
determines to be necessary or as the Commissioner may require
based on a change in State policy, a change in Federal law
(including regulations), an interpretation of this Act by a
Federal court or the highest court of the State, or a finding
by the Commissioner of State noncompliance with the
requirements of this Act, until the State submits and receives
approval of a new State plan.
``(2) Designated state agency; designated state unit.--
``(A) Designated state agency.--The State plan shall
designate a State agency as the sole State agency to administer
the plan, or to supervise the administration of the plan by a
local agency, except that--
``(i) where, under State law, the State agency for
individuals who are blind or another agency that provides
assistance or services to adults who are blind is
authorized to provide vocational rehabilitation services to
individuals who are blind, that agency may be designated as
the sole State agency to administer the part of the plan
under which vocational rehabilitation services are provided
for individuals who are blind (or to supervise the
administration of such part by a local agency) and a
separate State agency may be designated as the sole State
agency to administer or supervise the administration of the
rest of the State plan;
``(ii) the Commissioner, on the request of a State, may
authorize the designated State agency to share funding and
administrative responsibility with another agency of the
State or with a local agency in order to permit the
agencies to carry out a joint program to provide services
to individuals with disabilities, and may waive compliance,
with respect to vocational rehabilitation services
furnished under the joint program, with the requirement of
paragraph (4) that the plan be in effect in all political
subdivisions of the State; and
``(iii) in the case of American Samoa, the appropriate
State agency shall be the Governor of American Samoa.
``(B) Designated state unit.--The State agency designated
under subparagraph (A) shall be--
``(i) a State agency primarily concerned with
vocational rehabilitation, or vocational and other
rehabilitation, of individuals with disabilities; or
``(ii) if not such an agency, the State agency (or each
State agency if 2 are so designated) shall include a
vocational rehabilitation bureau, division, or other
organizational unit that--
``(I) is primarily concerned with vocational
rehabilitation, or vocational and other rehabilitation,
of individuals with disabilities, and is responsible
for the vocational rehabilitation program of the
designated State agency;
``(II) has a full-time director;
``(III) has a staff employed on the rehabilitation
work of the organizational unit all or substantially
all of whom are employed full time on such work; and
``(IV) is located at an organizational level and
has an organizational status within the designated
State agency comparable to that of other major
organizational units of the designated State agency.
``(C) Responsibility for services for the blind.--If the
State has designated only 1 State agency pursuant to
subparagraph (A), the State may assign responsibility for the
part of the plan under which vocational rehabilitation services
are provided for individuals who are blind to an organizational
unit of the designated State agency and assign responsibility
for the rest of the plan to another organizational unit of the
designated State agency, with the provisions of subparagraph
(B) applying separately to each of the designated State units.
``(3) Non-federal share.--The State plan shall provide for
financial participation by the State, or if the State so elects, by
the State and local agencies, to provide the amount of the non-
Federal share of the cost of carrying out part B.
``(4) Statewideness.--The State plan shall provide that the
plan shall be in effect in all political subdivisions of the State,
except that--
``(A) in the case of any activity that, in the judgment of
the Commissioner, is likely to assist in promoting the
vocational rehabilitation of substantially larger numbers of
individuals with disabilities or groups of individuals with
disabilities, the Commissioner may waive compliance with the
requirement that the plan be in effect in all political
subdivisions of the State to the extent and for such period as
may be provided in accordance with regulations prescribed by
the Commissioner, but only if the non-Federal share of the cost
of the vocational rehabilitation services involved is met from
funds made available by a local agency (including funds
contributed to such agency by a private agency, organization,
or individual); and
``(B) in a case in which earmarked funds are used toward
the non-Federal share and such funds are earmarked for
particular geographic areas within the State, the earmarked
funds may be used in such areas if the State notifies the
Commissioner that the State cannot provide the full non-Federal
share without such funds.
``(5) Order of selection for vocational rehabilitation
services.--In the event that vocational rehabilitation services
cannot be provided to all eligible individuals with disabilities in
the State who apply for the services, the State plan shall--
``(A) show the order to be followed in selecting eligible
individuals to be provided vocational rehabilitation services;
``(B) provide the justification for the order of selection;
``(C) include an assurance that, in accordance with
criteria established by the State for the order of selection,
individuals with the most significant disabilities will be
selected first for the provision of vocational rehabilitation
services; and
``(D) provide that eligible individuals, who do not meet
the order of selection criteria, shall have access to services
provided through the information and referral system
implemented under paragraph (20).
``(6) Methods for administration.--
``(A) In general.--The State plan shall provide for such
methods of administration as are found by the Commissioner to
be necessary for the proper and efficient administration of the
plan.
``(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
qualified individuals with disabilities covered under, and on
the same terms and conditions as set forth in, section 503.
``(C) Facilities.--The State plan shall provide that
facilities used in connection with the delivery of services
assisted under the State plan shall comply with the Act
entitled `An Act to insure that certain buildings financed with
Federal funds are so designed and constructed as to be
accessible to the physically handicapped', approved on August
12, 1968 (commonly known as the `Architectural Barriers Act of
1968'), with section 504, and with the Americans with Disabilities
Act of 1990.
``(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) a description of the procedures and activities
the designated State agency will undertake to ensure an
adequate supply of qualified State rehabilitation
professionals and paraprofessionals for the designated
State unit, including the development and maintenance of a
system for determining, on an annual basis--
``(I) the number and type of personnel that are
employed by the designated State unit in the provision
of vocational rehabilitation services, including ratios
of qualified vocational rehabilitation counselors to
clients; and
``(II) the number and type of personnel needed by
the State, and a projection of the numbers of such
personnel that will be needed in 5 years, based on
projections of the number of individuals to be served,
the number of such personnel who are expected to retire
or leave the vocational rehabilitation field, and other
relevant factors;
``(ii) where appropriate, a description of the manner
in which activities will be undertaken under this section
to coordinate the system of personnel development with
personnel development activities under the Individuals with
Disabilities Education Act (20 U.S.C. 1400 et seq.);
``(iii) a description of the development and
maintenance of a system of determining, on an annual basis,
information on the programs of institutions of higher
education within the State that are preparing
rehabilitation professionals, including--
``(I) the numbers of students enrolled in such
programs; and
``(II) the number of such students who graduated
with certification or licensure, or with credentials to
qualify for certification or licensure, as a
rehabilitation professional during the past year;
``(iv) a description of the development, updating, and
implementation of a plan that--
``(I) will address the current and projected
vocational rehabilitation services personnel training
needs for the designated State unit; and
``(II) provides for the coordination and
facilitation of efforts between the designated State
unit, institutions of higher education, and
professional associations to recruit, prepare, and
retain qualified personnel, including personnel from
minority backgrounds, and personnel who are individuals
with disabilities; and
``(v) a description of the procedures and activities
the designated State agency will undertake to ensure that
all personnel employed by the designated State unit are
appropriately and adequately trained and prepared,
including--
``(I) a system for the continuing education of
rehabilitation professionals and paraprofessionals
within the designated State unit, particularly with
respect to rehabilitation technology; and
``(II) procedures for acquiring and disseminating
to rehabilitation professionals and paraprofessionals
within the designated State unit significant knowledge
from research and other sources, including procedures
for providing training regarding the amendments to this
Act made by the Rehabilitation Act Amendments of 1998;
``(B) set forth policies and procedures relating to the
establishment and maintenance of standards to ensure that
personnel, including rehabilitation professionals and
paraprofessionals, needed within the designated State unit to
carry out this part are appropriately and adequately prepared
and trained, including--
``(i) the establishment and maintenance of standards
that are consistent with any national or State approved or
recognized certification, licensing, registration, or other
comparable requirements that apply to the area in which
such personnel are providing vocational rehabilitation
services; and
``(ii) to the extent that such standards are not based
on the highest requirements in the State applicable to a
specific profession or discipline, the steps the State is
taking to require the retraining or hiring of personnel
within the designated State unit that meet appropriate
professional requirements in the State; and
``(C) contain provisions relating to the establishment and
maintenance of minimum standards to ensure the availability of
personnel within the designated State unit, to the maximum
extent feasible, trained to communicate in the native language
or mode of communication of an applicant or eligible
individual.
``(8) Comparable services and benefits.--
``(A) Determination of availability.--
``(i) In general.--The State plan shall include an
assurance that, prior to providing any vocational
rehabilitation service to an eligible individual, except
those services specified in paragraph (5)(D) and in
paragraphs (1) through (4) and (14) of section 103(a), the
designated State unit will determine whether comparable
services and benefits are available under any other program
(other than a program carried out under this title) unless
such a determination would interrupt or delay--
``(I) the progress of the individual toward
achieving the employment outcome identified in the
individualized plan for employment of the individual in
accordance with section 102(b);
``(II) an immediate job placement; or
``(III) the provision of such service to any
individual at extreme medical risk.
``(ii) Awards and scholarships.--For purposes of clause
(i), comparable benefits do not include awards and
scholarships based on merit.
``(B) Interagency agreement.--The State plan shall include
an assurance that the Governor of the State, in consultation
with the entity in the State responsible for the vocational
rehabilitation program and other appropriate agencies, will
ensure that an interagency agreement or other mechanism for
interagency coordination takes effect between any appropriate
public entity, including the State entity responsible for
administering the State medicaid program, a public institution
of higher education, and a component of the statewide workforce
investment system, and the designated State unit, in order to
ensure the provision of vocational rehabilitation services
described in subparagraph (A) (other than those services
specified in paragraph (5)(D), and in paragraphs (1) through
(4) and (14) of section 103(a)), that are included in the
individualized plan for employment of an eligible individual,
including the provision of such vocational rehabilitation
services during the pendency of any dispute described in clause
(iii). Such agreement or mechanism shall include the following:
``(i) Agency financial responsibility.--An
identification of, or a description of a method for
defining, the financial responsibility of such public
entity for providing such services, and a provision stating
the financial responsibility of such public entity for
providing such services.
``(ii) Conditions, terms, and procedures of
reimbursement.--Information specifying the conditions,
terms, and procedures under which a designated State unit
shall be reimbursed by other public entities for providing
such services, based on the provisions of such agreement or
mechanism.
``(iii) Interagency disputes.--Information specifying
procedures for resolving interagency disputes under the
agreement or other mechanism (including procedures under
which the designated State unit may initiate proceedings to
secure reimbursement from other public entities or
otherwise implement the provisions of the agreement or
mechanism).
``(iv) Coordination of services procedures.--
Information specifying policies and procedures for public
entities to determine and identify the interagency
coordination responsibilities of each public entity to
promote the coordination and timely delivery of vocational
rehabilitation services (except those services specified in
paragraph (5)(D) and in paragraphs (1) through (4) and (14)
of section 103(a)).
``(C) Responsibilities of other public entities.--
``(i) Responsibilities under other law.--
Notwithstanding subparagraph (B), if any public entity
other than a designated State unit is obligated under
Federal or State law, or assigned responsibility under
State policy or under this paragraph, to provide or pay for
any services that are also considered to be vocational
rehabilitation services (other than those specified in
paragraph (5)(D) and in paragraphs (1) through (4) and (14)
of section 103(a)), such public entity shall fulfill that
obligation or responsibility, either directly or by
contract or other arrangement.
``(ii) Reimbursement.--If a public entity other than
the designated State unit fails to provide or pay for the
services described in clause (i) for an eligible
individual, the designated State unit shall provide or pay
for such services to the individual. Such designated State
unit may claim reimbursement for the services from the
public entity that failed to provide or pay for such
services. Such public entity shall reimburse the designated
State unit pursuant to the terms of the interagency
agreement or other mechanism described in this paragraph
according to the procedures established in such agreement
or mechanism pursuant to subparagraph (B)(ii).
``(D) Methods.--The Governor of a State may meet the
requirements of subparagraph (B) through--
``(i) a State statute or regulation;
``(ii) a signed agreement between the respective
officials of the public entities that clearly identifies
the responsibilities of each public entity relating to the
provision of services; or
``(iii) another appropriate method, as determined by
the designated State unit.
``(9) Individualized plan for employment.--
``(A) Development and implementation.--The State plan shall
include an assurance that an individualized plan for employment
meeting the requirements of section 102(b) will be developed
and implemented in a timely manner for an individual subsequent
to the determination of the eligibility of the individual for
services under this title, except that in a State operating
under an order of selection described in paragraph (5), the
plan will be developed and implemented only for individuals
meeting the order of selection criteria of the State.
``(B) Provision of services.--The State plan shall include
an assurance that such services will be provided in accordance
with the provisions of the individualized plan for employment.
``(10) Reporting requirements.--
``(A) In general.--The State plan shall include an
assurance that the designated State agency will submit reports
in the form and level of detail and at the time required by the
Commissioner regarding applicants for, and eligible individuals
receiving, services under this title.
``(B) Annual reporting.--In specifying the information to
be submitted in the reports, the Commissioner shall require
annual reporting on the eligible individuals receiving the
services, on those specific data elements described in section
136(d)(2) 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.
``(C) Additional data.--In specifying the information
required to be submitted in the reports, the Commissioner shall
require additional data with regard to applicants and eligible
individuals related to--
``(i) the number of applicants and the number of
individuals determined to be eligible or ineligible for the
program carried out under this title, including--
``(I) the number of individuals determined to be
ineligible because they did not require vocational
rehabilitation services, as provided in section 102(a);
and
``(II) the number of individuals determined, on the
basis of clear and convincing evidence, to be too
severely disabled to benefit in terms of an employment
outcome from vocational rehabilitation services;
``(ii) the number of individuals who received
vocational rehabilitation services through the program,
including--
``(I) the number who received services under
paragraph (5)(D), but not assistance under an
individualized plan for employment;
``(II) of those recipients who are individuals with
significant disabilities, the number who received
assistance under an individualized plan for employment
consistent with section 102(b); and
``(III) of those recipients who are not individuals
with significant disabilities, the number who received
assistance under an individualized plan for employment
consistent with section 102(b);
``(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.
``(D) Costs and results.--The Commissioner shall also
require that the designated State agency include in the reports
information on--
``(i) the costs under this title of conducting
administration, providing assessment services, counseling
and guidance, and other direct services provided by
designated State agency staff, providing services purchased
under individualized plans for employment, supporting small
business enterprises, establishing, developing, and
improving community rehabilitation programs, providing
other services to groups, and facilitating use of other
programs under this Act and title I of the Workforce
Investment Act of 1998 by eligible individuals; and
``(ii) the results of annual evaluation by the State of
program effectiveness under paragraph (15)(E).
``(E) Additional information.--The Commissioner shall
require that each designated State unit include in the reports
additional information related to the applicants and eligible
individuals, obtained either through a complete count or
sampling, including--
``(i) information on--
``(I) age, gender, race, ethnicity, education,
category of impairment, severity of disability, and
whether the individuals are students with disabilities;
``(II) dates of application, determination of
eligibility or ineligibility, initiation of the
individualized plan for employment, and termination of
participation in the program;
``(III) earnings at the time of application for the
program and termination of participation in the
program;
``(IV) work status and occupation;
``(V) types of services, including assistive
technology services and assistive technology devices,
provided under the program;
``(VI) types of public or private programs or
agencies that furnished services under the program; and
``(VII) the reasons for individuals terminating
participation in the program without achieving an
employment outcome; and
``(ii) information necessary to determine the success
of the State in meeting--
``(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.
``(F) Completeness and confidentiality.--The State plan
shall include an assurance that the information submitted in
the reports will include a complete count, except as provided
in subparagraph (E), of the applicants and eligible
individuals, in a manner permitting the greatest possible
cross-classification of data and that the identity of each
individual for which information is supplied under this
paragraph will be kept confidential.
``(11) Cooperation, collaboration, and coordination.--
``(A) Cooperative agreements with other components of
statewide workforce investment systems.--The State plan shall
provide that the designated State unit or designated State
agency shall enter into a cooperative agreement with other
entities that are components of the statewide workforce
investment system of the State, regarding the system, which
agreement may provide for--
``(i) provision of intercomponent staff training and
technical assistance with regard to--
``(I) the availability and benefits of, and
information on eligibility standards for, vocational
rehabilitation services; and
``(II) the promotion of equal, effective, and
meaningful participation by individuals with
disabilities in workforce investment activities in the
State through the promotion of program accessibility,
the use of nondiscriminatory policies and procedures,
and the provision of reasonable accommodations,
auxiliary aids and services, and rehabilitation
technology, for individuals with disabilities;
``(ii) use of information and financial management
systems that link all components of the statewide workforce
investment system, that link the components to other
electronic networks, including nonvisual electronic
networks, and that relate to such subjects as employment
statistics, and information on job vacancies, career
planning, and workforce investment activities;
``(iii) use of customer service features such as common
intake and referral procedures, customer databases,
resource information, and human services hotlines;
``(iv) establishment of cooperative efforts with
employers to--
``(I) facilitate job placement; and
``(II) carry out any other activities that the
designated State unit and the employers determine to be
appropriate;
``(v) identification of staff roles, responsibilities,
and available resources, and specification of the financial
responsibility of each component of the statewide workforce
investment system with regard to paying for necessary
services (consistent with State law and Federal
requirements); and
``(vi) specification of procedures for resolving
disputes among such components.
``(B) Replication of cooperative agreements.--The State
plan shall provide for the replication of such cooperative
agreements at the local level between individual offices of the
designated State unit and local entities 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 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.--The State
plan shall contain plans, policies, and procedures for
coordination between the designated State agency and education
officials responsible for the public education of students with
disabilities, that are designed to facilitate the transition of
the students with disabilities from the receipt of educational
services in school to the receipt of vocational rehabilitation
services under this title, including information on a formal
interagency agreement with the State educational agency that,
at a minimum, provides for--
``(i) consultation and technical assistance to assist
educational agencies in planning for the transition of
students with disabilities from school to post-school
activities, including vocational rehabilitation services;
``(ii) transition planning by personnel of the
designated State agency and educational agency personnel
for students with disabilities that facilitates the
development and completion of their individualized
education programs under section 614(d) of the Individuals
with Disabilities Education Act (as added by section 101 of
Public Law 105-17);
``(iii) the roles and responsibilities, including
financial responsibilities, of each agency, including
provisions for determining State lead agencies and
qualified personnel responsible for transition services;
and
``(iv) procedures for outreach to and identification of
students with disabilities who need the transition
services.
``(E) Coordination with statewide independent living
councils and independent living centers.--The State plan shall
include an assurance that the designated State unit, the
Statewide Independent Living Council established under section
705, and the independent living centers described in part C of
title VII within the State have developed working relationships
and coordinate their activities.
``(F) Cooperative agreement with recipients of grants for
services to american indians.--In applicable cases, the State
plan shall include an assurance that the State has entered into
a formal cooperative agreement with each grant recipient in the
State that receives funds under part C. The agreement shall
describe strategies for collaboration and coordination in
providing vocational rehabilitation services to American
Indians who are individuals with disabilities, including--
``(i) strategies for interagency referral and
information sharing that will assist in eligibility
determinations and the development of individualized plans
for employment;
``(ii) procedures for ensuring that American Indians
who are individuals with disabilities and are living near a
reservation or tribal service area are provided vocational
rehabilitation services; and
``(iii) provisions for sharing resources in cooperative
studies and assessments, joint training activities, and
other collaborative activities designed to improve the
provision of services to American Indians who are
individuals with disabilities.
``(12) Residency.--The State plan shall include an assurance
that the State will not impose a residence requirement that
excludes from services provided under the plan any individual who
is present in the State.
``(13) Services to american indians.--The State plan shall
include an assurance that, except as otherwise provided in part C,
the designated State agency will provide vocational rehabilitation
services to American Indians who are individuals with disabilities
residing in the State to the same extent as the designated State
agency provides such services to other significant populations of
individuals with disabilities residing in the State.
``(14) Annual review of individuals in extended employment or
other employment under special certificate provisions of the Fair
Labor Standards Act of 1938.--The State plan shall provide for--
``(A) an annual review and reevaluation of the status of
each individual with a disability served under this title who
has achieved an employment outcome either in an extended
employment setting in a community rehabilitation program or any
other employment under section 14(c) of the Fair Labor
Standards Act (29 U.S.C. 214(c)) for 2 years after the
achievement of the outcome (and thereafter if requested by the
individual or, if appropriate, the individual's
representative), to determine the interests, priorities, and
needs of the individual with respect to competitive employment
or training for competitive employment;
``(B) input into the review and reevaluation, and a signed
acknowledgment that such review and reevaluation have been
conducted, by the individual with a disability, or, if
appropriate, the individual's representative; and
``(C) maximum efforts, including the identification and
provision of vocational rehabilitation services, reasonable
accommodations, and other necessary support services, to assist
the individuals described in subparagraph (A) in engaging in
competitive employment.
``(15) Annual state goals and reports of progress.--
``(A) Assessments and estimates.--The State plan shall--
``(i) include the results of a comprehensive, statewide
assessment, jointly conducted by the designated State unit
and the State Rehabilitation Council (if the State has such
a Council) every 3 years, describing the rehabilitation
needs of individuals with disabilities residing within the
State, particularly the vocational rehabilitation services
needs of--
``(I) individuals with the most significant
disabilities, including their need for supported
employment services;
``(II) individuals with disabilities who are
minorities and individuals with disabilities who have
been unserved or underserved by the vocational
rehabilitation program carried out under this title;
and
``(III) individuals with disabilities served
through other components of the statewide workforce
investment system (other than the vocational
rehabilitation program), as identified by such
individuals and personnel assisting such individuals
through the components;
``(ii) include an assessment of the need to establish,
develop, or improve community rehabilitation programs
within the State; and
``(iii) provide that the State shall submit to the
Commissioner a report containing information regarding
updates to the assessments, for any year in which the State
updates the assessments.
``(B) Annual estimates.--The State plan shall include, and
shall provide that the State shall annually submit a report to
the Commissioner that includes, State estimates of--
``(i) the number of individuals in the State who are
eligible for services under this title;
``(ii) the number of such individuals who will receive
services provided with funds provided under part B and
under part B of title VI, including, if the designated
State agency uses an order of selection in accordance with
paragraph (5), estimates of the number of individuals to be
served under each priority category within the order; and
``(iii) the costs of the services described in clause
(i), including, if the designated State agency uses an
order of selection in accordance with paragraph (5), the
service costs for each priority category within the order.
``(C) Goals and priorities.--
``(i) In general.--The State plan shall identify the
goals and priorities of the State in carrying out the
program. The goals and priorities shall be jointly
developed, agreed to, and reviewed annually by the
designated State unit and the State Rehabilitation Council,
if the State has such a Council. Any revisions to the goals
and priorities shall be jointly agreed to by the designated
State unit and the State Rehabilitation Council, if the
State has such a Council. The State plan shall provide that
the State shall submit to the Commissioner a report
containing information regarding revisions in the goals and
priorities, for any year in which the State revises the
goals and priorities.
``(ii) Basis.--The State goals and priorities shall be
based on an analysis of--
``(I) the comprehensive assessment described in
subparagraph (A), including any updates to the
assessment;
``(II) the performance of the State on the
standards and indicators established under section 106;
and
``(III) other available information on the
operation and the effectiveness of the vocational
rehabilitation program carried out in the State,
including any reports received from the State
Rehabilitation Council, under section 105(c) and the
findings and recommendations from monitoring activities
conducted under section 107.
``(iii) Service and outcome goals for categories in
order of selection.--If the designated State agency uses an
order of selection in accordance with paragraph (5), the
State shall also identify in the State plan service and
outcome goals and the time within which these goals may be
achieved for individuals in each priority category within
the order.
``(D) Strategies.--The State plan shall contain a
description of the strategies the State will use to address the
needs identified in the assessment conducted under subparagraph
(A) and achieve the goals and priorities identified in
subparagraph (C), including--
``(i) the methods to be used to expand and improve
services to individuals with disabilities, including how a
broad range of assistive technology services and assistive
technology devices will be provided to such individuals at
each stage of the rehabilitation process and how such
services and devices will be provided to such individuals
on a statewide basis;
``(ii) outreach procedures to identify and serve
individuals with disabilities who are minorities and
individuals with disabilities who have been unserved or
underserved by the vocational rehabilitation program;
``(iii) where necessary, the plan of the State for
establishing, developing, or improving community
rehabilitation programs;
``(iv) strategies to improve the performance of the
State with respect to the evaluation standards and
performance indicators established pursuant to section 106;
and
``(v) strategies for assisting entities carrying out
other components of the statewide workforce investment
system (other than the vocational rehabilitation program)
in assisting individuals with disabilities.
``(E) Evaluation and reports of progress.--The State plan
shall--
``(i) include the results of an evaluation of the
effectiveness of the vocational rehabilitation program, and
a joint report by the designated State unit and the State
Rehabilitation Council, if the State has such a Council, to
the Commissioner on the progress made in improving the
effectiveness from the previous year, which evaluation and
report shall include--
``(I) an evaluation of the extent to which the
goals identified in subparagraph (C) were achieved;
``(II) a description of strategies that contributed
to achieving the goals;
``(III) to the extent to which the goals were not
achieved, a description of the factors that impeded
that achievement; and
``(IV) an assessment of the performance of the
State on the standards and indicators established
pursuant to section 106; and
``(ii) provide that the designated State unit and the
State Rehabilitation Council, if the State has such a
Council, shall jointly submit to the Commissioner an annual
report that contains the information described in clause
(i).
``(16) Public comment.--The State plan shall--
``(A) provide that the designated State agency, prior to
the adoption of any policies or procedures governing the
provision of vocational rehabilitation services under the State
plan (including making any amendment to such policies and
procedures), shall conduct public meetings throughout the
State, after providing adequate notice of the meetings, to
provide the public, including individuals with disabilities, an
opportunity to comment on the policies or procedures, and
actively consult with the Director of the client assistance
program carried out under section 112, and, as appropriate,
Indian tribes, tribal organizations, and Native Hawaiian
organizations on the policies or procedures; and
``(B) provide that the designated State agency (or each
designated State agency if two agencies are designated) and any
sole agency administering the plan in a political subdivision
of the State, shall take into account, in connection with
matters of general policy arising in the administration of the
plan, the views of--
``(i) individuals and groups of individuals who are
recipients of vocational rehabilitation services, or in
appropriate cases, the individuals' representatives;
``(ii) personnel working in programs that provide
vocational rehabilitation services to individuals with
disabilities;
``(iii) providers of vocational rehabilitation services
to individuals with disabilities;
``(iv) the director of the client assistance program;
and
``(v) the State Rehabilitation Council, if the State
has such a Council.
``(17) Use of funds for construction of facilities.--The State
plan shall provide that if, under special circumstances, the State
plan includes provisions for the construction of facilities for
community rehabilitation programs--
``(A) the Federal share of the cost of construction for the
facilities for a fiscal year will not exceed an amount equal to
10 percent of the State's allotment under section 110 for such
year;
``(B) the provisions of section 306 (as in effect on the
day before the date of enactment of the Rehabilitation Act
Amendments of 1998) shall be applicable to such construction
and such provisions shall be deemed to apply to such
construction; and
``(C) there shall be compliance with regulations the
Commissioner shall prescribe designed to assure that no State
will reduce its efforts in providing other vocational
rehabilitation services (other than for the establishment of
facilities for community rehabilitation programs) because the
plan includes such provisions for construction.
``(18) Innovation and expansion activities.--The State plan
shall--
``(A) include an assurance that the State will reserve and
use a portion of the funds allotted to the State under section
110--
``(i) for the development and implementation of
innovative approaches to expand and improve the provision
of vocational rehabilitation services to individuals with
disabilities under this title, particularly individuals
with the most significant disabilities, consistent with the
findings of the statewide assessment and goals and
priorities of the State as described in paragraph (15); and
``(ii) to support the funding of--
``(I) the State Rehabilitation Council, if the
State has such a Council, consistent with the plan
prepared under section 105(d)(1); and
``(II) the Statewide Independent Living Council,
consistent with the plan prepared under section
705(e)(1);
``(B) include a description of how the reserved funds will
be utilized; and
``(C) provide that the State shall submit to the
Commissioner an annual report containing a description of how
the reserved funds will be utilized.
``(19) Choice.--The State plan shall include an assurance that
applicants and eligible individuals or, as appropriate, the
applicants' representatives or individuals' representatives, will
be provided information and support services to assist the
applicants and individuals in exercising informed choice throughout
the rehabilitation process, consistent with the provisions of
section 102(d).
``(20) Information and referral services.--
``(A) In general.--The State plan shall include an
assurance that the designated State agency will implement an
information and referral system adequate to ensure that
individuals with disabilities will be provided accurate
vocational rehabilitation information and guidance, using
appropriate modes of communication, to assist such individuals
in preparing for, securing, retaining, or regaining employment,
and will be appropriately referred to Federal and State
programs (other than the vocational rehabilitation program
carried out under this title), including other components of
the statewide workforce investment system in the State.
``(B) Referrals.--An appropriate referral made through the
system shall--
``(i) be to the Federal or State programs, including
programs carried out by other components of the statewide
workforce investment system in the State, best suited to
address the specific employment needs of an individual with
a disability; and
``(ii) include, for each of these programs, provision
to the individual of--
``(I) a notice of the referral by the designated
State agency to the agency carrying out the program;
``(II) information identifying a specific point of
contact 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 employment.
``(21) State independent consumer-controlled commission; state
rehabilitation council.--
``(A) Commission or council.--The State plan shall provide
that either--
``(i) the designated State agency is an independent
commission that--
``(I) is responsible under State law for operating,
or overseeing the operation of, the vocational
rehabilitation program in the State;
``(II) is consumer-controlled by persons who--
``(aa) are individuals with physical or mental
impairments that substantially limit major life
activities; and
``(bb) represent individuals with a broad range
of disabilities, unless the designated State unit
under the direction of the Commission is the State
agency for individuals who are blind;
``(III) includes family members, advocates, or
other representatives, of individuals with mental
impairments; and
``(IV) undertakes the functions set forth in
section 105(c)(4); or
``(ii) the State has established a State Rehabilitation
Council that meets the criteria set forth in section 105
and the designated State unit--
``(I) in accordance with paragraph (15), jointly
develops, agrees to, and reviews annually State goals
and priorities, and jointly submits annual reports of
progress with the Council;
``(II) regularly consults with the Council
regarding the development, implementation, and revision
of State policies and procedures of general
applicability pertaining to the provision of vocational
rehabilitation services;
``(III) includes in the State plan and in any
revision to the State plan, a summary of input provided
by the Council, including recommendations from the
annual report of the Council described in section
105(c)(5), the review and analysis of consumer
satisfaction described in section 105(c)(4), and other
reports prepared by the Council, and the response of
the designated State unit to such input and
recommendations, including explanations for rejecting
any input or recommendation; and
``(IV) transmits to the Council--
``(aa) all plans, reports, and other
information required under this title to be
submitted to the Secretary;
``(bb) all policies, and information on all
practices and procedures, of general applicability
provided to or used by rehabilitation personnel in
carrying out this title; and
``(cc) copies of due process hearing decisions
issued under this title, which shall be transmitted
in such a manner as to ensure that the identity of
the participants in the hearings is kept
confidential.
``(B) More than one designated state agency.--In the case
of a State that, under section 101(a)(2), designates a State
agency to administer the part of the State plan under which
vocational rehabilitation services are provided for individuals
who are blind (or to supervise the administration of such part
by a local agency) and designates a separate State agency to
administer the rest of the State plan, the State shall either
establish a State Rehabilitation Council for each of the two
agencies that does not meet the requirements in subparagraph
(A)(i), or establish one State Rehabilitation Council for both
agencies if neither agency meets the requirements of
subparagraph (A)(i).
``(22) Supported employment state plan supplement.--The State
plan shall include an assurance that the State has an acceptable
plan for carrying out part B of title VI, including the use of
funds under that part to supplement funds made available under part
B of this title to pay for the cost of services leading to
supported employment.
``(23) Annual updates.--The plan shall include an assurance
that the State will submit to the Commissioner reports containing
annual updates of the information required under paragraph (7)
(relating to a comprehensive system of personnel development) and
any other updates of the information required under this section
that are requested by the Commissioner, and annual reports as
provided in paragraphs (15) (relating to assessments, estimates,
goals and priorities, and reports of progress) and (18) (relating
to innovation and expansion), at such time and in such manner as
the Secretary may determine to be appropriate.
``(24) Certain contracts and cooperative agreements.--
``(A) Contracts with for-profit organizations.--The State
plan shall provide that the designated State agency has the
authority to enter into contracts with for-profit organizations
for the purpose of providing, as vocational rehabilitation
services, on-the-job training and related programs for
individuals with disabilities under part A of title VI, upon a
determination by such agency that such for-profit organizations
are better qualified to provide such rehabilitation services
than nonprofit agencies and organizations.
``(B) Cooperative agreements with private nonprofit
organizations.--The State plan shall describe the manner in
which cooperative agreements with private nonprofit vocational
rehabilitation service providers will be established.
``(b) Approval; Disapproval of the State Plan.--
``(1) Approval.--The Commissioner shall approve any plan that
the Commissioner finds fulfills the conditions specified in this
section, and shall disapprove any plan that does not fulfill such
conditions.
``(2) Disapproval.--Prior to disapproval of the State plan, the
Commissioner shall notify the State of the intention to disapprove
the plan and shall afford the State reasonable notice and
opportunity for a hearing.
``SEC. 102. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR EMPLOYMENT.
``(a) Eligibility.--
``(1) Criterion for eligibility.--An individual is eligible for
assistance under this title if the individual--
``(A) is an individual with a disability under section
7(20)(A); and
``(B) requires vocational rehabilitation services to
prepare for, secure, retain, or regain employment.
``(2) Presumption of benefit.--
``(A) Demonstration.--For purposes of this section, an
individual shall be presumed to be an individual that can
benefit in terms of an employment outcome from vocational
rehabilitation services under section 7(20)(A), unless the
designated State unit involved can demonstrate by clear and
convincing evidence that such individual is incapable of
benefiting in terms of an employment outcome from vocational
rehabilitation services due to the severity of the disability
of the individual.
``(B) Methods.--In making the demonstration required under
subparagraph (A), the designated State unit shall explore the
individual's abilities, capabilities, and capacity to perform
in work situations, through the use of trial work experiences,
as described in section 7(2)(D), with appropriate supports
provided through the designated State unit, except under
limited circumstances when an individual cannot take advantage
of such experiences. Such experiences shall be of sufficient
variety and over a sufficient period of time to determine the
eligibility of the individual or to determine the existence of
clear and convincing evidence that the individual is incapable
of benefiting in terms of an employment outcome from vocational
rehabilitation services due to the severity of the disability
of the individual.
``(3) Presumption of eligibility.--
``(A) In general.--For purposes of this section, an
individual who has a disability or is blind as determined
pursuant to title II or title XVI of the Social Security Act
(42 U.S.C. 401 et seq. and 1381 et seq.) shall be--
``(i) considered to be an individual with a significant
disability under section 7(21)(A); and
``(ii) presumed to be eligible for vocational
rehabilitation services under this title (provided that the
individual intends to achieve an employment outcome
consistent with the unique strengths, resources,
priorities, concerns, abilities, capabilities, interests,
and informed choice of the individual) unless the
designated State unit involved can demonstrate by clear and
convincing evidence that such individual is incapable of
benefiting in terms of an employment outcome from
vocational rehabilitation services due to the severity of
the disability of the individual in accordance with
paragraph (2).
``(B) Construction.--Nothing in this paragraph shall be
construed to create an entitlement to any vocational
rehabilitation service.
``(4) Use of existing information.--
``(A) In general.--To the maximum extent appropriate and
consistent with the requirements of this part, for purposes of
determining the eligibility of an individual for vocational
rehabilitation services under this title and developing the
individualized plan for employment described in subsection (b)
for the individual, the designated State unit shall use
information that is existing and current (as of the date of the
determination of eligibility or of the development of the
individualized plan for employment), including information
available from other programs and providers, particularly
information used by education officials and the Social Security
Administration, information provided by the individual and the
family of the individual, and information obtained under the
assessment for determining eligibility and vocational
rehabilitation needs.
``(B) Determinations by officials of other agencies.--
Determinations made by officials of other agencies,
particularly education officials described in section
101(a)(11)(D), regarding whether an individual satisfies one or
more factors relating to whether an individual is an individual
with a disability under section 7(20)(A) or an individual with
a significant disability under section 7(21)(A) shall be used,
to the extent appropriate and consistent with the requirements
of this part, in assisting the designated State unit in making
such determinations.
``(C) Basis.--The determination of eligibility for
vocational rehabilitation services shall be based on--
``(i) the review of existing data described in section
7(2)(A)(i); and
``(ii) to the extent that such data is unavailable or
insufficient for determining eligibility, the provision of
assessment activities described in section 7(2)(A)(ii).
``(5) Determination of ineligibility.--If an individual who
applies for services under this title is determined, based on the
review of existing data and, to the extent necessary, the
assessment activities described in section 7(2)(A)(ii), not to be
eligible for the services, or if an eligible individual receiving
services under an individualized plan for employment is determined
to be no longer eligible for the services--
``(A) the ineligibility determination involved shall be
made only after providing an opportunity for full consultation
with the individual or, as appropriate, the individual's
representative;
``(B) the individual or, as appropriate, the individual's
representative, shall be informed in writing (supplemented as
necessary by other appropriate modes of communication
consistent with the informed choice of the individual) of the
ineligibility determination, including--
``(i) the reasons for the determination; and
``(ii) a description of the means by which the
individual may express, and seek a remedy for, any
dissatisfaction with the determination, including the
procedures for review by an impartial hearing officer under
subsection (c);
``(C) the individual shall be provided with a description
of services available from the client assistance program under
section 112 and information on how to contact that program; and
``(D) any ineligibility determination that is based on a
finding that the individual is incapable of benefiting in terms
of an employment outcome shall be reviewed--
``(i) within 12 months; and
``(ii) thereafter, if such a review is requested by the
individual or, if appropriate, by the individual's
representative.
``(6) Timeframe for making an eligibility determination.--The
designated State unit shall determine whether an individual is
eligible for vocational rehabilitation services under this title
within a reasonable period of time, not to exceed 60 days, after
the individual has submitted an application for the services
unless--
``(A) exceptional and unforeseen circumstances beyond the
control of the designated State unit preclude making an
eligibility determination within 60 days and the designated
State unit and the individual agree to a specific extension of
time; or
``(B) the designated State unit is exploring an
individual's abilities, capabilities, and capacity to perform
in work situations under paragraph (2)(B).
``(b) Development of an Individualized Plan for Employment.--
``(1) Options for developing an individualized plan for
employment.--If an individual is determined to be eligible for
vocational rehabilitation services as described in subsection (a),
the designated State unit shall complete the assessment for
determining eligibility and vocational rehabilitation needs, as
appropriate, and shall provide the eligible individual or the
individual's representative, in writing and in an appropriate mode
of communication, with information on the individual's options for
developing an individualized plan for employment, including--
``(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;
``(B) a description of the full range of components that
shall be included in an individualized plan for employment;
``(C) as appropriate--
``(i) an explanation of agency guidelines and criteria
associated with financial commitments concerning an
individualized plan for employment;
``(ii) additional information the eligible individual
requests or the designated State unit determines to be
necessary; and
``(iii) information on the availability of assistance
in completing designated State agency forms required in
developing an individualized plan for employment; and
``(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.
``(2) Mandatory procedures.--
``(A) Written document.--An individualized plan for
employment shall be a written document prepared on forms
provided by the designated State unit.
``(B) Informed choice.--An individualized plan for
employment shall be developed and implemented in a manner that
affords eligible individuals the opportunity to exercise
informed choice in selecting an employment outcome, the
specific vocational rehabilitation services to be provided
under the plan, the entity that will provide the vocational
rehabilitation services, and the methods used to procure the
services, consistent with subsection (d).
``(C) Signatories.--An individualized plan for employment
shall be--
``(i) agreed to, and signed by, such eligible
individual or, as appropriate, the individual's
representative; and
``(ii) approved and signed by a qualified vocational
rehabilitation counselor employed by the designated State
unit.
``(D) Copy.--A copy of the individualized plan for
employment for an eligible individual shall be provided to the
individual or, as appropriate, to the individual's
representative, in writing and, if appropriate, in the native
language or mode of communication of the individual or, as
appropriate, of the individual's representative.
``(E) Review and amendment.--The individualized plan for
employment shall be--
``(i) reviewed at least annually by--
``(I) a qualified vocational rehabilitation
counselor; and
``(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).
``(3) Mandatory components of an individualized plan for
employment.--Regardless of the approach selected by an eligible
individual to develop an individualized plan for employment, an
individualized plan for employment shall, at a minimum, contain
mandatory components consisting of--
``(A) a description of the specific employment outcome that
is chosen by the eligible individual, consistent with the
unique strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice of the eligible
individual, and, to the maximum extent appropriate, results in
employment in an integrated setting;
``(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 technology services, and
personal assistance services, including training in the
management of such services; and
``(II) provided in the most integrated setting that is
appropriate for the service involved and is consistent with
the informed choice of the eligible individual; and
``(ii) timelines for the achievement of the employment
outcome and for the initiation of the services;
``(C) a description of the entity chosen by the eligible
individual or, as appropriate, the individual's representative,
that will provide the vocational rehabilitation services, and
the methods used to procure such services;
``(D) a description of criteria to evaluate progress toward
achievement of the employment outcome;
``(E) the terms and conditions of the individualized plan
for employment, including, as appropriate, information
describing--
``(i) the responsibilities of the designated State
unit;
``(ii) the responsibilities of the eligible individual,
including--
``(I) the responsibilities the eligible individual
will assume in relation to the employment outcome of
the individual;
``(II) if applicable, the participation of the
eligible individual in paying for the costs of the
plan; and
``(III) the responsibility of the eligible
individual with regard to applying for and securing
comparable benefits as described in section 101(a)(8);
and
``(iii) the responsibilities of other entities as the
result of arrangements made pursuant to comparable services
or benefits requirements as described in section 101(a)(8);
``(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--
``(i) the extended services needed by the eligible
individual; and
``(ii) the source of extended services or, to the
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.
``(c) Procedures.--
``(1) In general.--Each State shall establish procedures for
mediation of, and procedures for review through an impartial due
process hearing of, determinations made by personnel of the
designated State unit that affect the provision of vocational
rehabilitation services to applicants or eligible individuals.
``(2) Notification.--
``(A) Rights and assistance.--The procedures shall provide
that an applicant or an eligible individual or, as appropriate,
the applicant's representative or individual's representative
shall be notified of--
``(i) the right to obtain review of determinations
described in paragraph (1) in an impartial due process
hearing under paragraph (5);
``(ii) the right to pursue mediation with respect to
the determinations under paragraph (4); and
``(iii) the availability of assistance from the client
assistance program under section 112.
``(B) Timing.--Such notification shall be provided in
writing--
``(i) at the time an individual applies for vocational
rehabilitation services provided under this title;
``(ii) at the time the individualized plan for
employment for the individual is developed; and
``(iii) upon reduction, suspension, or cessation of
vocational rehabilitation services for the individual.
``(3) Evidence and representation.--The procedures required
under this subsection shall, at a minimum--
``(A) provide an opportunity for an applicant or an
eligible individual, or, as appropriate, the applicant's
representative or individual's representative, to submit at the
mediation session or hearing evidence and information to
support the position of the applicant or eligible individual;
and
``(B) include provisions to allow an applicant or an
eligible individual to be represented in the mediation session
or hearing by a person selected by the applicant or eligible
individual.
``(4) Mediation.--
``(A) Procedures.--Each State shall ensure that procedures
are established and implemented under this subsection to allow
parties described in paragraph (1) to disputes involving any
determination described in paragraph (1) to resolve such
disputes through a mediation process that, at a minimum, shall
be available whenever a hearing is requested under this
subsection.
``(B) Requirements.--Such procedures shall ensure that the
mediation process--
``(i) is voluntary on the part of the parties;
``(ii) is not used to deny or delay the right of an
individual to a hearing under this subsection, or to deny
any other right afforded under this title; and
``(iii) is conducted by a qualified and impartial
mediator who is trained in effective mediation techniques.
``(C) List of mediators.--The State shall maintain a list
of individuals who are qualified mediators and knowledgeable in
laws (including regulations) relating to the provision of
vocational rehabilitation services under this title, from which
the mediators described in subparagraph (B) shall be selected.
``(D) Cost.--The State shall bear the cost of the mediation
process.
``(E) Scheduling.--Each session in the mediation process
shall be scheduled in a timely manner and shall be held in a
location that is convenient to the parties to the dispute.
``(F) Agreement.--An agreement reached by the parties to
the dispute in the mediation process shall be set forth in a
written mediation agreement.
``(G) Confidentiality.--Discussions that occur during the
mediation process shall be confidential and may not be used as
evidence in any subsequent due process hearing or civil
proceeding. The parties to the mediation process may be
required to sign a confidentiality pledge prior to the
commencement of such process.
``(H) Construction.--Nothing in this subsection shall be
construed to preclude the parties to such a dispute from
informally resolving the dispute prior to proceedings under
this paragraph or paragraph (5), if the informal process used
is not used to deny or delay the right of the applicant or
eligible individual to a hearing under this subsection or to
deny any other right afforded under this title.
``(5) Hearings.--
``(A) Officer.--A due process hearing described in
paragraph (2) shall be conducted by an impartial hearing
officer who shall issue a decision based on the provisions of
the approved State plan, this Act (including regulations
implementing this Act), and State regulations and policies that
are consistent with the Federal requirements specified in this
title. The officer shall provide the decision in writing to the
applicant or eligible individual, or, as appropriate, the
applicant's representative or individual's representative, and
to the designated State unit.
``(B) List.--The designated State unit shall maintain a
list of qualified impartial hearing officers who are
knowledgeable in laws (including regulations) relating to the
provision of vocational rehabilitation services under this
title from which the officer described in subparagraph (A)
shall be selected. For the purposes of maintaining such list,
impartial hearing officers shall be identified jointly by--
``(i) the designated State unit; and
``(ii) members of the Council or commission, as
appropriate, described in section 101(a)(21).
``(C) Selection.--Such an impartial hearing officer shall
be selected to hear a particular case relating to a
determination--
``(i) on a random basis; or
``(ii) by agreement between--
``(I) the Director of the designated State unit and
the individual with a disability; or
``(II) in appropriate cases, the Director and the
individual's representative.
``(D) Procedures for seeking review.--A State may establish
procedures to enable a party involved in a hearing under this
paragraph to seek an impartial review of the decision of the
hearing officer under subparagraph (A) by--
``(i) the chief official of the designated State agency
if the State has established both a designated State agency
and a designated State unit under section 101(a)(2); or
``(ii) an official from the office of the Governor.
``(E) Review request.--If the State establishes impartial
review procedures under subparagraph (D), either party may
request the review of the decision of the hearing officer
within 20 days after the decision.
``(F) Reviewing official.--The reviewing official described
in subparagraph (D) shall--
``(i) in conducting the review, provide an opportunity
for the submission of additional evidence and information
relevant to a final decision concerning the matter under
review;
``(ii) not overturn or modify the decision of the
hearing officer, or part of the decision, that supports the
position of the applicant or eligible individual unless the
reviewing official concludes, based on clear and convincing
evidence, that the decision of the impartial hearing
officer is clearly erroneous on the basis of being contrary
to the approved State plan, this Act (including regulations
implementing this Act) or any State regulation or policy
that is consistent with the Federal requirements specified
in this title; and
``(iii) make a final decision with respect to the
matter in a timely manner and provide such decision in
writing to the applicant or eligible individual, or, as
appropriate, the applicant's representative or individual's
representative, and to the designated State unit, including
a full report of the findings and the grounds for such
decision.
``(G) Finality of hearing decision.--A decision made after
a hearing under subparagraph (A) shall be final, except that a
party may request an impartial review if the State has
established procedures for such review under subparagraph (D)
and a party involved in a hearing may bring a civil action
under subparagraph (J).
``(H) Finality of review.--A decision made under
subparagraph (F) shall be final unless such a party brings a
civil action under subparagraph (J).
``(I) Implementation.--If a party brings a civil action
under subparagraph (J) to challenge a final decision of a
hearing officer under subparagraph (A) or to challenge a final
decision of a State reviewing official under subparagraph (F),
the final decision involved shall be implemented pending review
by the court.
``(J) Civil action.--
``(i) In general.--Any party aggrieved by a final
decision described in subparagraph (I), may bring a civil
action for review of such decision. The action may be
brought in any State court of competent jurisdiction or in
a district court of the United States of competent
jurisdiction without regard to the amount in controversy.
``(ii) Procedure.--In any action brought under this
subparagraph, the court--
``(I) shall receive the records relating to the
hearing under subparagraph (A) and the records relating
to the State review under subparagraphs (D) through
(F), if applicable;
``(II) shall hear additional evidence at the
request of a party to the action; and
``(III) basing the decision of the court on the
preponderance of the evidence, shall grant such relief
as the court determines to be appropriate.
``(6) Hearing board.--
``(A) In general.--A fair hearing board, established by a
State before January 1, 1985, and authorized under State law to
review determinations or decisions under this Act, is
authorized to carry out the responsibilities of the impartial
hearing officer under this subsection.
``(B) Application.--The provisions of paragraphs (1), (2),
and (3) that relate to due process hearings do not apply, and
paragraph (5) (other than subparagraph (J)) does not apply, to
any State to which subparagraph (A) applies.
``(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, unless such services have been obtained
through misrepresentation, fraud, collusion, or criminal conduct on
the part of the individual, or the individual's representative.
``(8) Information collection and report.--
``(A) In general.--The Director of the designated State
unit shall collect information described in subparagraph (B)
and prepare and submit to the Commissioner a report containing
such information. The Commissioner shall prepare a summary of
the information furnished under this paragraph and include the
summary in the annual report submitted under section 13. The
Commissioner shall also collect copies of the final decisions
of impartial hearing officers conducting hearings under this
subsection and State officials conducting reviews under this
subsection.
``(B) Information.--The information required to be
collected under this subsection includes--
``(i) a copy of the standards used by State reviewing
officials for reviewing decisions made by impartial hearing
officers under this subsection;
``(ii) information on the number of hearings and
reviews sought from the impartial hearing officers and the
State reviewing officials, including the type of complaints
and the issues involved;
``(iii) information on the number of hearing decisions
made under this subsection that were not reviewed by the
State reviewing officials; and
``(iv) information on the number of the hearing
decisions that were reviewed by the State reviewing
officials, and, based on such reviews, the number of
hearing decisions that were--
``(I) sustained in favor of an applicant or
eligible individual;
``(II) sustained in favor of the designated State
unit;
``(III) reversed in whole or in part in favor of
the applicant or eligible individual; and
``(IV) reversed in whole or in part in favor of the
designated State unit.
``(C) Confidentiality.--The confidentiality of records of
applicants and eligible individuals maintained by the
designated State unit shall not preclude the access of the
Commissioner to those records for the purposes described in
subparagraph (A).
``(d) Policies and Procedures.--Each designated State agency, in
consultation with the State Rehabilitation Council, if the State has
such a council, shall, consistent with section 100(a)(3)(C), develop
and implement written policies and procedures that enable each
individual who is an applicant for or eligible to receive vocational
rehabilitation services under this title to exercise informed choice
throughout the vocational rehabilitation process carried out under this
title, including policies and procedures that require the designated
State agency--
``(1) to inform each such applicant and eligible individual
(including students with disabilities who are making the transition
from programs under the responsibility of an educational agency to
programs under the responsibility of the designated State unit),
through appropriate modes of communication, about the availability
of, and opportunities to exercise, informed choice, including the
availability of support services for individuals with cognitive or
other disabilities who require assistance in exercising informed
choice, throughout the vocational rehabilitation process;
``(2) to assist applicants and eligible individuals in
exercising informed choice in decisions related to the provision of
assessment services under this title;
``(3) to develop and implement flexible procurement policies
and methods that facilitate the provision of services, and that
afford eligible individuals meaningful choices among the methods
used to procure services, under this title;
``(4) to provide or assist eligible individuals in acquiring
information that enables those individuals to exercise informed
choice under this title in the selection of--
``(A) the employment outcome;
``(B) the specific vocational rehabilitation services
needed to achieve the employment outcome;
``(C) the entity that will provide the services;
``(D) the employment setting and the settings in which the
services will be provided; and
``(E) the methods available for procuring the services; and
``(5) to ensure that the availability and scope of informed
choice provided under this section is consistent with the
obligations of the designated State agency under this title.
``SEC. 103. VOCATIONAL REHABILITATION SERVICES.
``(a) Vocational Rehabilitation Services for Individuals.--
Vocational rehabilitation services provided under this title are any
services described in an individualized plan for employment necessary
to assist an individual with a disability in preparing for, securing,
retaining, or regaining an employment outcome that is consistent with
the strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice of the individual,
including--
``(1) an assessment for determining eligibility and vocational
rehabilitation needs by qualified personnel, including, if
appropriate, an assessment by personnel skilled in rehabilitation
technology;
``(2) counseling and guidance, including information and
support services to assist an individual in exercising informed
choice consistent with the provisions of section 102(d);
``(3) referral and other services to secure needed services
from other agencies through agreements developed under section
101(a)(11), if such services are not available under this title;
``(4) job-related services, including job search and placement
assistance, job retention services, followup services, and follow-
along services;
``(5) vocational and other training services, including the
provision of personal and vocational adjustment 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;
``(6) to the extent that financial support is not readily
available from a source (such as through health insurance of the
individual or through comparable services and benefits consistent
with section 101(a)(8)(A)), other than the designated State unit,
diagnosis and treatment of physical and mental impairments,
including--
``(A) corrective surgery or therapeutic treatment necessary
to correct or substantially modify a physical or mental
condition that constitutes a substantial impediment to
employment, but is of such a nature that such correction or
modification may reasonably be expected to eliminate or reduce
such impediment to employment within a reasonable length of
time;
``(B) necessary hospitalization in connection with surgery
or treatment;
``(C) prosthetic and orthotic devices;
``(D) eyeglasses and visual services as prescribed by
qualified personnel who meet State licensure laws and who are
selected by the individual;
``(E) special services (including transplantation and
dialysis), artificial kidneys, and supplies necessary for the
treatment of individuals with end-stage renal disease; and
``(F) diagnosis and treatment for mental and emotional
disorders by qualified personnel who meet State licensure laws;
``(7) maintenance for additional costs incurred while
participating in an assessment for determining eligibility and
vocational rehabilitation needs or while receiving services under
an individualized plan for employment;
``(8) transportation, including adequate training in the use of
public transportation vehicles and systems, that is provided in
connection with the provision of any other service described in
this section and needed by the individual to achieve an employment
outcome;
``(9) on-the-job or other related personal assistance services
provided while an individual is receiving other services described
in this section;
``(10) interpreter services provided by qualified personnel for
individuals who are deaf or hard of hearing, and reader services
for individuals who are determined to be blind, after an
examination by qualified personnel who meet State licensure laws;
``(11) rehabilitation teaching services, and orientation and
mobility services, for individuals who are blind;
``(12) occupational licenses, tools, equipment, and initial
stocks and supplies;
``(13) technical assistance and other consultation services to
conduct market analyses, develop business plans, and otherwise
provide resources, to the extent such resources are authorized to
be provided through the statewide workforce investment system, to
eligible individuals who are pursuing self-employment or
telecommuting or establishing a small business operation as an
employment outcome;
``(14) rehabilitation technology, including telecommunications,
sensory, and other technological aids and devices;
``(15) transition services for students with disabilities, that
facilitate the achievement of the employment outcome identified in
the individualized plan for employment;
``(16) supported employment services;
``(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.
``(b) Vocational Rehabilitation Services for Groups of
Individuals.--Vocational rehabilitation services provided for the
benefit of groups of individuals with disabilities may also include the
following:
``(1) In the case of any type of small business operated by
individuals with significant disabilities the operation of which
can be improved by management services and supervision provided by
the designated State agency, the provision of such services and
supervision, along or together with the acquisition by the
designated State agency of vending facilities or other equipment
and initial stocks and supplies.
``(2)(A) The establishment, development, or improvement of
community rehabilitation programs, including, under special
circumstances, the construction of a facility. Such programs shall
be used to provide services that promote integration and
competitive employment.
``(B) The provision of other services, that promise to
contribute substantially to the rehabilitation of a group of
individuals but that are not related directly to the individualized
plan for employment of any 1 individual with a disability.
``(3) The use of telecommunications systems (including
telephone, television, satellite, radio, and other similar systems)
that have the potential for substantially improving delivery
methods of activities described in this section and developing
appropriate programming to meet the particular needs of individuals
with disabilities.
``(4)(A) Special services to provide nonvisual access to
information for individuals who are blind, including the use of
telecommunications, Braille, sound recordings, or other appropriate
media.
``(B) Captioned television, films, or video cassettes for
individuals who are deaf or hard of hearing.
``(C) Tactile materials for individuals who are deaf-blind.
``(D) Other special services that provide information through
tactile, vibratory, auditory, and visual media.
``(5) Technical assistance and support services to businesses
that are not subject to title I of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12111 et seq.) and that are seeking to
employ individuals with disabilities.
``(6) Consultative and technical assistance services to assist
educational agencies in planning for the transition of students
with disabilities from school to post-school activities, including
employment.
``SEC. 104. NON-FEDERAL SHARE FOR ESTABLISHMENT OF PROGRAM OR CONSTRUCTION.
``For the purpose of determining the amount of payments to States
for carrying out part B (or to an Indian tribe under part C), the non-
Federal share, subject to such limitations and conditions as may be
prescribed in regulations by the Commissioner, shall include
contributions of funds made by any private agency, organization, or
individual to a State or local agency to assist in meeting the costs of
establishment of a community rehabilitation program or construction,
under special circumstances, of a facility for such a program, which
would be regarded as State or local funds except for the condition,
imposed by the contributor, limiting use of such funds to establishment
of such a program or construction of such a facility.
``SEC. 105. STATE REHABILITATION COUNCIL.
``(a) Establishment.--
``(1) In general.--Except as provided in section
101(a)(21)(A)(i), to be eligible to receive financial assistance
under this title a State shall establish a State Rehabilitation
Council (referred to in this section as the `Council') in
accordance with this section.
``(2) Separate agency for individuals who are blind.--A State
that designates a State agency to administer the part of the State
plan under which vocational rehabilitation services are provided
for individuals who are blind under section 101(a)(2)(A)(i) may
establish a separate Council in accordance with this section to
perform the duties of such a Council with respect to such State
agency.
``(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) at least one representative of the Statewide
Independent Living Council established under section 705,
which representative may be the chairperson or other
designee of the Council;
``(ii) at least one representative of a parent training
and information center established pursuant to section
682(a) of the Individuals with Disabilities Education Act
(as added by section 101 of the Individuals with Disabilities
Education Act Amendments of 1997; Public Law 105-17);
``(iii) at least one representative of the client
assistance program established under section 112;
``(iv) at least one qualified vocational rehabilitation
counselor, with knowledge of and experience with vocational
rehabilitation programs, who shall serve as an ex officio,
nonvoting member of the Council if the counselor is an
employee of the designated State agency;
``(v) at least one representative of community
rehabilitation program service providers;
``(vi) four representatives of business, industry, and
labor;
``(vii) representatives of disability advocacy groups
representing a cross section of--
``(I) individuals with physical, cognitive,
sensory, and mental disabilities; and
``(II) individuals' representatives of individuals
with disabilities who have difficulty in representing
themselves or are unable due to their disabilities to
represent themselves;
``(viii) current or former applicants for, or
recipients of, vocational rehabilitation services;
``(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;
``(x) at least one representative of the State
educational agency responsible for the public education of
students with disabilities who are eligible to receive
services under this title and part B of the Individuals
with Disabilities Education Act; and
``(xi) at least one representative of the State
workforce investment board.
``(B) Separate council.--In the case of a separate Council
established under subsection (a)(2), the Council shall be
composed of--
``(i) at least one representative described in
subparagraph (A)(i);
``(ii) at least one representative described in
subparagraph (A)(ii);
``(iii) at least one representative described in
subparagraph (A)(iii);
``(iv) at least one vocational rehabilitation counselor
described in subparagraph (A)(iv), who shall serve as
described in such subparagraph;
``(v) at least one representative described in
subparagraph (A)(v);
``(vi) four representatives described in subparagraph
(A)(vi);
``(vii) at least one representative of a disability
advocacy group representing individuals who are blind;
``(viii) at least one individual's representative, of
an individual who--
``(I) is an individual who is blind and has
multiple disabilities; and
``(II) has difficulty in representing himself or
herself or is unable due to disabilities to represent
himself or herself;
``(ix) applicants or recipients described in
subparagraph (A)(viii);
``(x) in a State described in subparagraph (A)(ix), at
least one representative described in such subparagraph;
``(xi) at least one representative described in
subparagraph (A)(x); and
``(xii) at least one representative described in
subparagraph (A)(xi).
``(C) Exception.--In the case of a separate Council
established under subsection (a)(2), any Council that is
required by State law, as in effect on the date of enactment of
the Rehabilitation Act Amendments of 1992, to have fewer than
15 members shall be deemed to be in compliance with
subparagraph (B) if the Council--
``(i) meets the requirements of subparagraph (B), other
than the requirements of clauses (vi) and (ix) of such
subparagraph; and
``(ii) includes at least--
``(I) one representative described in subparagraph
(B)(vi); and
``(II) one applicant or recipient described in
subparagraph (B)(ix).
``(2) Ex officio member.--The Director of the designated State
unit shall be an ex officio, nonvoting member of the Council.
``(3) Appointment.--Members of the Council shall be appointed
by the Governor. The Governor shall select members after soliciting
recommendations from representatives of organizations representing
a broad range of individuals with disabilities and organizations
interested in individuals with disabilities. In selecting members,
the Governor shall consider, to the greatest extent practicable,
the extent to which minority populations are represented on the
Council.
``(4) Qualifications.--
``(A) In general.--A majority of Council members shall be
persons who are--
``(i) individuals with disabilities described in
section 7(20)(A); and
``(ii) not employed by the designated State unit.
``(B) Separate council.--In the case of a separate Council
established under subsection (a)(2), a majority of Council
members shall be persons who are--
``(i) blind; and
``(ii) not employed by the designated State unit.
``(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 governor.--In States in which the
chief executive officer does not have veto power pursuant to
State law, the Governor 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.
``(6) Terms of appointment.--
``(A) Length of term.--Each member of the Council shall
serve for a term of not more than 3 years, except that--
``(i) a member appointed to fill a vacancy occurring
prior to the expiration of the term for which a predecessor
was appointed, shall be appointed for the remainder of such
term; and
``(ii) the terms of service of the members initially
appointed shall be (as specified by the Governor) for such
fewer number of years as will provide for the expiration of
terms on a staggered basis.
``(B) Number of terms.--No member of the Council, other
than a representative described in clause (iii) or (ix) of
paragraph (1)(A), or clause (iii) or (x) of paragraph (1)(B),
may serve more than two consecutive full terms.
``(7) Vacancies.--
``(A) In general.--Except as provided in subparagraph (B),
any vacancy occurring in the membership of the Council shall be
filled in the same manner as the original appointment. The
vacancy shall not affect the power of the remaining members to
execute the duties of the Council.
``(B) Delegation.--The Governor may delegate the authority
to fill such a vacancy to the remaining members of the Council
after making the original appointment.
``(c) Functions of Council.--The Council shall, after consulting
with the State workforce investment board--
``(1) review, analyze, and advise the designated State unit
regarding the performance of the responsibilities of the unit under
this title, particularly responsibilities relating to--
``(A) eligibility (including order of selection);
``(B) the extent, scope, and effectiveness of services
provided; and
``(C) functions performed by State agencies that affect or
that potentially affect the ability of individuals with
disabilities in achieving employment outcomes under this title;
``(2) in partnership with the designated State unit--
``(A) develop, agree to, and review State goals and
priorities in accordance with section 101(a)(15)(C); and
``(B) evaluate the effectiveness of the vocational
rehabilitation program and submit reports of progress to the
Commissioner in accordance with section 101(a)(15)(E);
``(3) advise the designated State agency and the designated
State unit regarding activities authorized to be carried out under
this title, and assist in the preparation of the State plan and
amendments to the plan, applications, reports, needs assessments,
and evaluations required by this title;
``(4) to the extent feasible, conduct a review and analysis of
the effectiveness of, and consumer satisfaction with--
``(A) the functions performed by the designated State
agency;
``(B) vocational rehabilitation services provided by State
agencies and other public and private entities responsible for
providing vocational rehabilitation services to individuals
with disabilities under this Act; and
``(C) employment outcomes achieved by eligible individuals
receiving services under this title, including the availability
of health and other employment benefits in connection with such
employment outcomes;
``(5) prepare and submit an annual report to the Governor and
the Commissioner on the status of vocational rehabilitation
programs operated within the State, and make the report available
to the public;
``(6) to avoid duplication of efforts and enhance the number of
individuals served, coordinate activities with the activities of
other councils within the State, including the Statewide
Independent Living Council established under section 705, the
advisory panel established under section 612(a)(21) of the
Individual with Disabilities Education Act (as amended by section
101 of the Individuals with Disabilities Education Act Amendments
of 1997; Public Law 105-17), the State Developmental Disabilities
Council described in section 124 of the Developmental Disabilities
Assistance and Bill of Rights Act (42 U.S.C. 6024), the State
mental health planning council established under section 1914(a) of
the Public Health Service Act (42 U.S.C. 300x-4(a)), and the State
workforce investment board;
``(7) provide for coordination and the establishment of working
relationships between the designated State agency and the Statewide
Independent Living Council and centers for independent living
within the State; and
``(8) perform such other functions, consistent with the purpose
of this title, as the State Rehabilitation Council determines to be
appropriate, that are comparable to the other functions performed
by the Council.
``(d) Resources.--
``(1) Plan.--The Council shall prepare, in conjunction with the
designated State unit, a plan for the provision of such resources,
including such staff and other personnel, as may be necessary and
sufficient to carry out the functions of the Council under this
section. The resource plan shall, to the maximum extent possible,
rely on the use of resources in existence during the period of
implementation of the plan.
``(2) Resolution of disagreements.--To the extent that there is
a disagreement between the Council and the designated State unit in
regard to the resources necessary to carry out the functions of the
Council as set forth in this section, the disagreement shall be
resolved by the Governor consistent with paragraph (1).
``(3) Supervision and evaluation.--Each Council shall,
consistent with State law, supervise and evaluate such staff and
other personnel as may be necessary to carry out its functions
under this section.
``(4) Personnel conflict of interest.--While assisting the
Council in carrying out its duties, staff and other personnel shall
not be assigned duties by the designated State unit or any other
agency or office of the State, that would create a conflict of
interest.
``(e) Conflict of Interest.--No member of the Council shall cast a
vote on any matter that would provide direct financial benefit to the
member or otherwise give the appearance of a conflict of interest under
State law.
``(f) Meetings.--The Council shall convene at least four meetings a
year in such places as it determines to be necessary to conduct Council
business and conduct such forums or hearings as the Council considers
appropriate. The meetings, hearings, and forums shall be publicly
announced. The meetings shall be open and accessible to the general
public unless there is a valid reason for an executive session.
``(g) Compensation and Expenses.--The Council may use funds
allocated to the Council by the designated State unit under this title
(except for funds appropriated to carry out the client assistance
program under section 112 and funds reserved pursuant to section 110(c)
to carry out part C) to reimburse members of the Council for reasonable
and necessary expenses of attending Council meetings and performing
Council duties (including child care and personal assistance services),
and to pay compensation to a member of the Council, if such member is
not employed or must forfeit wages from other employment, for each day
the member is engaged in performing the duties of the Council.
``(h) Hearings and Forums.--The Council is authorized to hold such
hearings and forums as the Council may determine to be necessary to
carry out the duties of the Council.
``SEC. 106. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.
``(a) Establishment.--
``(1) In general.--
``(A) Establishment of standards and indicators.--The
Commissioner shall, not later than July 1, 1999, establish and
publish evaluation standards and performance indicators for the
vocational rehabilitation program carried out under this title.
``(B) Review and revision.--Effective July 1, 1999, the
Commissioner shall review and, if necessary, revise the
evaluation standards and performance indicators every 3 years.
Any revisions of the standards and indicators shall be
developed with input from State vocational rehabilitation
agencies, related professional and consumer organizations,
recipients of vocational rehabilitation services, and other
interested parties. Any revisions of the standards and
indicators shall be subject to the publication, review, and
comment provisions of paragraph (3).
``(C) Bases.--Effective July 1, 1999, to the maximum extent
practicable, the standards and indicators shall be consistent
with the core indicators of performance established under
section 136(b) of the Workforce Investment Act of 1998.
``(2) Measures.--The standards and indicators shall include
outcome and related measures of program performance that facilitate
the accomplishment of the purpose and policy of this title.
``(3) Comment.--The standards and indicators shall be developed
with input from State vocational rehabilitation agencies, related
professional and consumer organizations, recipients of vocational
rehabilitation services, and other interested parties. The
Commissioner shall publish in the Federal Register a notice of
intent to regulate regarding the development of proposed standards
and indicators. Proposed standards and indicators shall be
published in the Federal Register for review and comment. Final
standards and indicators shall be published in the Federal
Register.
``(b) Compliance.--
``(1) State reports.--In accordance with regulations
established by the Secretary, each State shall report to the
Commissioner after the end of each fiscal year the extent to which
the State is in compliance with the standards and indicators.
``(2) Program improvement.--
``(A) Plan.--If the Commissioner determines that the
performance of any State is below established standards, the
Commissioner shall provide technical assistance to the State,
and the State and the Commissioner shall jointly develop a
program improvement plan outlining the specific actions to be
taken by the State to improve program performance.
``(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; and
``(ii) continue to conduct such reviews and request
such revisions until the State sustains satisfactory
performance over a period of more than 1 year.
``(c) Withholding.--If the Commissioner determines that a State
whose performance falls below the established standards has failed to
enter into a program improvement plan, or is not complying
substantially with the terms and conditions of such a program
improvement plan, the Commissioner shall, consistent with subsections
(c) and (d) of section 107, reduce or make no further payments to the
State under this program, until the State has entered into an approved
program improvement plan, or satisfies the Commissioner that the State
is complying substantially with the terms and conditions of such a
program improvement plan, as appropriate.
``(d) Report to Congress.--Beginning in fiscal year 1999, the
Commissioner shall include in each annual report to the Congress under
section 13 an analysis of program performance, including relative State
performance, based on the standards and indicators.
``SEC. 107. MONITORING AND REVIEW.
``(a) In General.--
``(1) Duties.--In carrying out the duties of the Commissioner
under this title, the Commissioner shall--
``(A) provide for the annual review and periodic onsite
monitoring of programs under this title; and
``(B) determine whether, in the administration of the State
plan, a State is complying substantially with the provisions of
such plan and with evaluation standards and performance
indicators established under section 106.
``(2) Procedures for reviews.--In conducting reviews under this
section the Commissioner shall consider, at a minimum--
``(A) State policies and procedures;
``(B) guidance materials;
``(C) decisions resulting from hearings conducted in
accordance with due process;
``(D) State goals established under section 101(a)(15) and
the extent to which the State has achieved such goals;
``(E) plans and reports prepared under section 106(b);
``(F) consumer satisfaction reviews and analyses described
in section 105(c)(4);
``(G) information provided by the State Rehabilitation
Council established under section 105, if the State has such a
Council, or by the commission described in section
101(a)(21)(A)(i), if the State has such a commission;
``(H) reports; and
``(I) budget and financial management data.
``(3) Procedures for monitoring.--In conducting monitoring
under this section the Commissioner shall conduct--
``(A) onsite visits, including onsite reviews of records to
verify that the State is following requirements regarding the
order of selection set forth in section 101(a)(5)(A);
``(B) public hearings and other strategies for collecting
information from the public;
``(C) meetings with the State Rehabilitation Council, if
the State has such a Council or with the commission described
in section 101(a)(21)(A)(i), if the State has such a
commission;
``(D) reviews of individual case files, including
individualized plans for employment and ineligibility
determinations; and
``(E) meetings with qualified vocational rehabilitation
counselors and other personnel.
``(4) Areas of inquiry.--In conducting the review and
monitoring, the Commissioner shall examine--
``(A) the eligibility process;
``(B) the provision of services, including, if applicable,
the order of selection;
``(C) such other areas as may be identified by the public
or through meetings with the State Rehabilitation Council, if
the State has such a Council or with the commission described
in section 101(a)(21)(A)(i), if the State has such a
commission; and
``(D) such other areas of inquiry as the Commissioner may
consider appropriate.
``(5) Reports.--If the Commissioner issues a report detailing
the findings of an annual review or onsite monitoring conducted
under this section, the report shall be made available to the State
Rehabilitation Council, if the State has such a Council, for use in
the development and modification of the State plan described in
section 101.
``(b) Technical Assistance.--The Commissioner shall--
``(1) provide technical assistance to programs under this title
regarding improving the quality of vocational rehabilitation
services provided; and
``(2) provide technical assistance and establish a corrective
action plan for a program under this title if the Commissioner
finds that the program fails to comply substantially with the
provisions of the State plan, or with evaluation standards or
performance indicators established under section 106, in order to
ensure that such failure is corrected as soon as practicable.
``(c) Failure To Comply With Plan.--
``(1) Withholding payments.--Whenever the Commissioner, after
providing reasonable notice and an opportunity for a hearing to the
State agency administering or supervising the administration of the
State plan approved under section 101, finds that--
``(A) the plan has been so changed that it no longer
complies with the requirements of section 101(a); or
``(B) in the administration of the plan there is a failure
to comply substantially with any provision of such plan or with
an evaluation standard or performance indicator established
under section 106,
the Commissioner shall notify such State agency that no further
payments will be made to the State under this title (or, in the
discretion of the Commissioner, that such further payments will be
reduced, in accordance with regulations the Commissioner shall
prescribe, or that further payments will not be made to the State
only for the projects under the parts of the State plan affected by
such failure), until the Commissioner is satisfied there is no
longer any such failure.
``(2) Period.--Until the Commissioner is so satisfied, the
Commissioner shall make no further payments to such State under
this title (or shall reduce payments or limit payments to projects
under those parts of the State plan in which there is no such
failure).
``(3) Disbursal of withheld funds.--The Commissioner may, in
accordance with regulations the Secretary shall prescribe, disburse
any funds withheld from a State under paragraph (1) to any public
or nonprofit private organization or agency within such State or to
any political subdivision of such State submitting a plan meeting
the requirements of section 101(a). The Commissioner may not make
any payment under this paragraph unless the entity to which such
payment is made has provided assurances to the Commissioner that
such entity will contribute, for purposes of carrying out such
plan, the same amount as the State would have been obligated to
contribute if the State received such payment.
``(d) Review.--
``(1) Petition.--Any State that is dissatisfied with a final
determination of the Commissioner under section 101(b) or
subsection (c) may file a petition for judicial review of such
determination in the United States Court of Appeals for the circuit
in which the State is located. Such a petition may be filed only
within the 30-day period beginning on the date that notice of such
final determination was received by the State. The clerk of the
court shall transmit a copy of the petition to the Commissioner or
to any officer designated by the Commissioner for that purpose. In
accordance with section 2112 of title 28, United States Code, the
Commissioner shall file with the court a record of the proceeding
on which the Commissioner based the determination being appealed by
the State. Until a record is so filed, the Commissioner may modify
or set aside any determination made under such proceedings.
``(2) Submissions and determinations.--If, in an action under
this subsection to review a final determination of the Commissioner
under section 101(b) or subsection (c), the petitioner or the
Commissioner applies to the court for leave to have additional oral
submissions or written presentations made respecting such
determination, the court may, for good cause shown, order the
Commissioner to provide within 30 days an additional opportunity to
make such submissions and presentations. Within such period, the
Commissioner may revise any findings of fact, modify or set aside
the determination being reviewed, or make a new determination by
reason of the additional submissions and presentations, and shall
file such modified or new determination, and any revised findings
of fact, with the return of such submissions and presentations. The
court shall thereafter review such new or modified determination.
``(3) Standards of review.--
``(A) In general.--Upon the filing of a petition under
paragraph (1) for judicial review of a determination, the court
shall have jurisdiction--
``(i) to grant appropriate relief as provided in
chapter 7 of title 5, United States Code, except for
interim relief with respect to a determination under
subsection (c); and
``(ii) except as otherwise provided in subparagraph
(B), to review such determination in accordance with
chapter 7 of title 5, United States Code.
``(B) Substantial evidence.--Section 706 of title 5, United
States Code, shall apply to the review of any determination
under this subsection, except that the standard for review
prescribed by paragraph (2)(E) of such section 706 shall not
apply and the court shall hold unlawful and set aside such
determination if the court finds that the determination is not
supported by substantial evidence in the record of the
proceeding submitted pursuant to paragraph (1), as supplemented
by any additional submissions and presentations filed under
paragraph (2).
``SEC. 108. EXPENDITURE OF CERTAIN AMOUNTS.
``(a) Expenditure.--Amounts described in subsection (b) may not be
expended by a State for any purpose other than carrying out programs
for which the State receives financial assistance under this title,
under part B of title VI, or under title VII.
``(b) Amounts.--The amounts referred to in subsection (a) are
amounts provided to a State under the Social Security Act (42 U.S.C.
301 et seq.) as reimbursement for the expenditure of payments received
by the State from allotments under section 110 of this Act.
``SEC. 109. TRAINING OF EMPLOYERS WITH RESPECT TO AMERICANS WITH
DISABILITIES ACT OF 1990.
``A State may expend payments received under section 111--
``(1) to carry out a program to train employers with respect to
compliance with the requirements of title I of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12111 et seq.); and
``(2) to inform employers of the existence of the program and
the availability of the services of the program.
``Part B--Basic Vocational Rehabilitation Services
``SEC. 110. STATE ALLOTMENTS.
``(a)(1) Subject to the provisions of subsection (c), for each
fiscal year beginning before October 1, 1978, each State shall be
entitled to an allotment of an amount bearing the same ratio to the
amount authorized to be appropriated under section 100(b)(1) for
allotment under this section as the product of--
``(A) the population of the State; and
``(B) the square of its allotment percentage,
bears to the sum of the corresponding products for all the States.
``(2)(A) For each fiscal year beginning on or after October 1,
1978, each State shall be entitled to an allotment in an amount equal
to the amount such State received under paragraph (1) for the fiscal
year ending September 30, 1978, and an additional amount determined
pursuant to subparagraph (B) of this paragraph.
``(B) For each fiscal year beginning on or after October 1, 1978,
each State shall be entitled to an allotment, from any amount
authorized to be appropriated for such fiscal year under section
100(b)(1) for allotment under this section in excess of the amount
appropriated under section 100(b)(1)(A) for the fiscal year ending
September 30, 1978, in an amount equal to the sum of--
``(i) an amount bearing the same ratio to 50 percent of such
excess amount as the product of the population of the State and the
square of its allotment percentage bears to the sum of the
corresponding products for all the States; and
``(ii) an amount bearing the same ratio to 50 percent of such
excess amount as the product of the population of the State and its
allotment percentage bears to the sum of the corresponding products
for all the States.
``(3) The sum of the payment to any State (other than Guam,
American Samoa, the Virgin Islands, and the Commonwealth of the
Northern Mariana Islands) under this subsection for any fiscal year
which is less than \1/3\ of 1 percent of the amount appropriated under
section 100(b)(1), or $3,000,000, whichever is greater, shall be
increased to that amount, the total of the increases thereby required
being derived by proportionately reducing the allotment to each of the
remaining such States under this subsection, but with such adjustments
as may be necessary to prevent the sum of the allotments made under
this subsection to any such remaining State from being thereby reduced
to less than that amount.
``(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.
``(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.
``SEC. 111. PAYMENTS TO STATES.
``(a)(1) Except as provided in paragraph (2), from each State's
allotment under this part for any fiscal year, the Commissioner shall
pay to a State an amount equal to the Federal share of the cost of
vocational rehabilitation services under the plan for that State
approved under section 101, including expenditures for the
administration of the State plan.
``(2)(A) The total of payments under paragraph (1) to a State for a
fiscal year may not exceed its allotment under subsection (a) of
section 110 for such year.
``(B) For fiscal year 1994 and each fiscal year thereafter, the
amount otherwise payable to a State for a fiscal year under this
section shall be reduced by the amount by which expenditures from non-
Federal sources under the State plan under this title for the previous
fiscal year are less than the total of such expenditures for the second
fiscal year preceding the previous fiscal year.
``(C) The Commissioner may waive or modify any requirement or
limitation under subparagraph (B) or section 101(a)(17) if the
Commissioner determines that a waiver or modification is an equitable
response to exceptional or uncontrollable circumstances affecting the
State.
``(3)(A) Except as provided in subparagraph (B), the amount of a
payment under this section with respect to any construction project in
any State shall be equal to the same percentage of the cost of such
project as the Federal share that is applicable in the case of
rehabilitation facilities (as defined in section 645(g) of the Public
Health Service Act (42 U.S.C. 291o(a))), in such State.
``(B) If the Federal share with respect to rehabilitation
facilities in such State is determined pursuant to section 645(b)(2) of
such Act (42 U.S.C. 291o(b)(2)), the percentage of the cost for
purposes of this section shall be determined in accordance with
regulations prescribed by the Commissioner designed to achieve as
nearly as practicable results comparable to the results obtained under
such section.
``(b) The method of computing and paying amounts pursuant to
subsection (a) shall be as follows:
``(1) The Commissioner shall, prior to the beginning of each
calendar quarter or other period prescribed by the Commissioner,
estimate the amount to be paid to each State under the provisions
of such subsection for such period, such estimate to be based on
such records of the State and information furnished by it, and such
other investigation as the Commissioner may find necessary.
``(2) The Commissioner shall pay, from the allotment available
therefor, the amount so estimated by the Commissioner for such
period, reduced or increased, as the case may be, by any sum (not
previously adjusted under this paragraph) by which the Commissioner
finds that the estimate of the amount to be paid the State for any
prior period under such subsection was greater or less than the
amount which should have been paid to the State for such prior
period under such subsection. Such payment shall be made prior to
audit or settlement by the General Accounting Office, shall be made
through the disbursing facilities of the Treasury Department, and
shall be made in such installments as the Commissioner may
determine.
``SEC. 112. CLIENT ASSISTANCE PROGRAM.
``(a) From funds appropriated under subsection (h), the Secretary
shall, in accordance with this section, make grants to States 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.
``(b) No State may receive payments from its allotment under this Act
in any fiscal year unless the State has in effect not later than October 1, 1984,
a client assistance program which--
``(1) has the authority to pursue legal, administrative, and
other appropriate remedies to ensure the protection of rights of
individuals with disabilities who are receiving treatments,
services, or rehabilitation under this Act within the State; and
``(2) meets the requirements of designation under subsection (c).
``(c)(1)(A) The Governor shall designate a public or private agency
to conduct the client assistance program under this section. Except as
provided in the last sentence of this subparagraph, the Governor shall
designate an agency which is independent of any agency which provides
treatment, services, or rehabilitation to individuals under this Act.
If there is an agency in the State which has, or had, prior to the date
of enactment of the Rehabilitation Amendments of 1984, served as a
client assistance agency under this section and which received Federal
financial assistance under this Act, the Governor may, in the initial
designation, designate an agency which provides treatment, services, or
rehabilitation to individuals with disabilities under this Act.
``(B)(i) The Governor may not redesignate the agency designated
under subparagraph (A) without good cause and unless--
``(I) the Governor has given the agency 30 days notice of the
intention to make such redesignation, including specification of
the good cause for such redesignation and an opportunity to respond
to the assertion that good cause has been shown;
``(II) individuals with disabilities or the individuals'
representatives have timely notice of the redesignation and
opportunity for public comment; and
``(III) the agency has the opportunity to appeal to the
Commissioner on the basis that the redesignation was not for good
cause.
``(ii) If, after the date of enactment of the Rehabilitation Act
Amendments of 1998--
``(I) a designated State agency undergoes any change in the
organizational structure of the agency that results in the creation
of one or more new State agencies or departments or results in the
merger of the designated State agency with one or more other State
agencies or departments; and
``(II) an agency (including an office or other unit) within the
designated State agency was conducting a client assistance program
before the change under the last sentence of subparagraph (A),
the Governor shall redesignate the agency conducting the program. In
conducting the redesignation, the Governor shall designate to conduct
the program an agency that is independent of any agency that provides
treatment, services, or rehabilitation to individuals with disabilities
under this Act.
``(2) In carrying out the provisions of this section, the Governor
shall consult with the director of the State vocational rehabilitation
agency, the head of the developmental disability protection and
advocacy agency, and with representatives of professional and consumer
organizations serving individuals with disabilities in the State.
``(3) The agency designated under this subsection shall be
accountable for the proper use of funds made available to the agency.
``(d) The agency designated under subsection (c) of this section
may not bring any class action in carrying out its responsibilities
under this section.
``(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.
``(B) The Secretary shall allot $30,000 each to American Samoa,
Guam, the Virgin Islands, and the Commonwealth of the Northern Mariana
Islands.
``(C) For the purpose of this paragraph, the term `State' does not
include 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 States and $45,000 for territories.
``(ii) For any fiscal year in which the total amount appropriated
under subsection (h) exceeds the total amount appropriated under such
subsection for the preceding fiscal year, the Secretary shall increase
each of the minimum allotments under clause (i) by a percentage that
shall not exceed the percentage increase in the total amount
appropriated under such subsection between the preceding fiscal year
and the fiscal year involved.
``(2) The amount of an allotment to a State for a fiscal year which
the Secretary determines will not be required by the State during the
period for which it is available for the purpose for which allotted
shall be available for reallotment by the Secretary at appropriate
times to other States with respect to which such a determination has
not been made, in proportion to the original allotments of such States
for such fiscal year, but with such proportionate amount for any of
such other States being reduced to the extent it exceeds the sum the
Secretary estimates such State needs and will be able to use during
such period, and the total of such reduction shall be similarly
reallotted among the States whose proportionate amounts were not so
reduced. Any such amount so reallotted to a State 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 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
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.
``(g) The Secretary shall prescribe regulations applicable to the
client assistance program which shall include the following
requirements:
``(1) No employees of such programs shall, while so employed,
serve as staff or consultants of any rehabilitation project,
program, or facility receiving assistance under this Act in the
State.
``(2) Each program shall be afforded reasonable access to
policymaking and administrative personnel in the State and local
rehabilitation programs, projects, or facilities.
``(3)(A) Each program shall contain provisions designed to
assure that to the maximum extent possible alternative means of
dispute resolution are available for use at the discretion of an
applicant or client of the program prior to resorting to litigation
or formal adjudication to resolve a dispute arising under this
section.
``(B) In subparagraph (A), the term `alternative means of
dispute resolution' means any procedure, including good faith
negotiation, conciliation, facilitation, mediation, factfinding,
and arbitration, and any combination of procedures, that is used in
lieu of litigation in a court or formal adjudication in an
administrative forum, to resolve a dispute arising under this
section.
``(4) For purposes of any periodic audit, report, or evaluation
of the performance of a client assistance program under this
section, the Secretary shall not require such a program to disclose
the identity of, or any other personally identifiable information
related to, any individual requesting assistance under such
program.
``(h) There are authorized to be appropriated such sums as may be
necessary for fiscal years 1999 through 2003 to carry out the
provisions of this section.
``Part C--American Indian Vocational Rehabilitation Services
``SEC. 121. VOCATIONAL REHABILITATION SERVICES GRANTS.
``(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 consortia 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. 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)(1) No grant may be made under this part for any fiscal year
unless an application therefor has been submitted to and approved by
the Commissioner. The Commissioner may not approve an application
unless the application--
``(A) is made at such time, in such manner, and contains such
information as the Commissioner may require;
``(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.
``(2) The provisions of sections 5, 6, 7, and 102(a) of the Indian
Self-Determination and Education Assistance Act shall be applicable to
any application submitted under this part. For purposes of this
paragraph, any reference in any such provision to the Secretary of
Education or to the Secretary of the Interior shall be considered to be
a reference to the Commissioner.
``(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. 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.
``(5) Nothing in this section may be construed to authorize a
separate service delivery system for Indian residents of a State who
reside in non-reservation areas.
``(c) The term `reservation' includes Indian reservations, public
domain Indian allotments, former Indian reservations in Oklahoma, and
land held by incorporated Native groups, regional corporations, and
village corporations under the provisions of the Alaska Native Claims
Settlement Act.
``Part D--Vocational Rehabilitation Services Client Information
``SEC. 131. DATA SHARING.
``(a) In General.--
``(1) Memorandum of understanding.--The Secretary of Education
and the Secretary of Health and Human Services shall enter into a
memorandum of understanding for the purposes of exchanging data of
mutual importance--
``(A) that concern clients of designated State agencies;
and
``(B) that are data maintained either by--
``(i) the Rehabilitation Services Administration, as
required by section 13; or
``(ii) the Social Security Administration, from its
Summary Earnings and Records and Master Beneficiary
Records.
``(2) Employment statistics.--The Secretary of Labor shall
provide the Commissioner with employment statistics specified in
section 15 of the Wagner-Peyser Act, that facilitate evaluation by
the Commissioner of the program carried out under part B, and allow
the Commissioner to compare the progress of individuals with
disabilities who are assisted under the program in securing,
retaining, regaining, and advancing in employment with the progress
made by individuals who are assisted under title I of the Workforce
Investment Act of 1998.
``(b) Treatment of Information.--For purposes of the exchange
described in subsection (a)(1), the data described in subsection
(a)(1)(B)(ii) shall not be considered return information (as defined in
section 6103(b)(2) of the Internal Revenue Code of 1986) and, as
appropriate, the confidentiality of all client information shall be
maintained by the Rehabilitation Services Administration and the Social
Security Administration.''.
SEC. 405. RESEARCH AND TRAINING.
Title II of the Rehabilitation Act of 1973 (29 U.S.C. 760 et seq.),
is amended to read as follows:
``TITLE II--RESEARCH AND TRAINING
``Declaration of Purpose
``Sec. 200. The purpose of this title is to--
``(1) provide for research, demonstration projects, training,
and related activities to maximize the full inclusion and
integration into society, employment, independent living, family
support, and economic and social self-sufficiency of individuals
with disabilities of all ages, with particular emphasis on
improving the effectiveness of services authorized under this Act;
``(2) provide for a comprehensive and coordinated approach to
the support and conduct of such research, demonstration projects,
training, and related activities and to ensure that the approach is
in accordance with the 5-year plan developed under section 202(h);
``(3) promote the transfer of rehabilitation technology to
individuals with disabilities through research and demonstration
projects relating to--
``(A) the procurement process for the purchase of
rehabilitation technology;
``(B) the utilization of rehabilitation technology on a
national basis;
``(C) specific adaptations or customizations of products to
enable individuals with disabilities to live more
independently; and
``(D) the development or transfer of assistive technology;
``(4) ensure the widespread distribution, in usable formats, of
practical scientific and technological information--
``(A) generated by research, demonstration projects,
training, and related activities; and
``(B) regarding state-of-the-art practices, improvements in
the services authorized under this Act, rehabilitation
technology, and new knowledge regarding disabilities,
to rehabilitation professionals, individuals with disabilities, and
other interested parties, including the general public;
``(5) identify effective strategies that enhance the
opportunities of individuals with disabilities to engage in
employment, including employment involving telecommuting and self-
employment; and
``(6) increase opportunities for researchers who are members of
traditionally underserved populations, including researchers who
are members of minority groups and researchers who are individuals
with disabilities.
``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; and
``(2) to carry out section 204, such sums as may be necessary
for each of fiscal years 1999 through 2003.
``(b) Funds appropriated under this title shall remain available
until expended.
``National Institute on Disability and Rehabilitation Research
``Sec. 202. (a)(1) There is established within the Department of
Education a National Institute on Disability and Rehabilitation
Research (hereinafter in this title referred to as the `Institute'),
which shall be headed by a Director (hereinafter in this title referred
to as the `Director'), in order to--
``(A) promote, coordinate, and provide for--
``(i) research;
``(ii) demonstration projects and training; and
``(iii) related activities,
with respect to individuals with disabilities;
``(B) more effectively carry out activities through the
programs under section 204 and activities under this section;
``(C) widely disseminate information from the activities
described in subparagraphs (A) and (B); and
``(D) provide leadership in advancing the quality of life of
individuals with disabilities.
``(2) In the performance of the functions of the office, the
Director shall be directly responsible to the Secretary or to the same
Under Secretary or Assistant Secretary of the Department of Education
to whom the Commissioner is responsible under section 3(a).
``(b) The Director, through the Institute, shall be responsible
for--
``(1) administering the programs described in section 204 and
activities under this section;
``(2) widely disseminating findings, conclusions, and
recommendations, resulting from research, demonstration projects,
training, and related activities (referred to in this title as
`covered activities') funded by the Institute, to--
``(A) other Federal, State, tribal, and local public
agencies;
``(B) private organizations engaged in research relating to
rehabilitation or providing rehabilitation services;
``(C) rehabilitation practitioners; and
``(D) individuals with disabilities and the individuals'
representatives;
``(3) coordinating, through the Interagency Committee
established by section 203 of this Act, all Federal programs and
policies relating to research in rehabilitation;
``(4) widely disseminating educational materials and research
results, concerning ways to maximize the full inclusion and
integration into society, employment, independent living, family
support, and economic and social self-sufficiency of individuals
with disabilities, to--
``(A) public and private entities, including--
``(i) elementary and secondary schools (as defined in
section 14101 of the Elementary and Secondary Education Act
of 1965; and
``(ii) institutions of higher education;
``(B) rehabilitation practitioners;
``(C) individuals with disabilities (especially such
individuals who are members of minority groups or of
populations that are unserved or underserved by programs under
this Act); and
``(D) the individuals' representatives for the individuals
described in subparagraph (C);
``(5)(A) conducting an education program to inform the public
about ways of providing for the rehabilitation of individuals with
disabilities, including information relating to--
``(i) family care;
``(ii) self-care; and
``(iii) assistive technology devices and assistive
technology services; and
``(B) as part of the program, disseminating engineering
information about assistive technology devices;
``(6) conducting conferences, seminars, and workshops
(including in-service training programs and programs for
individuals with disabilities) concerning advances in
rehabilitation research and rehabilitation technology (including
advances concerning the selection and use of assistive technology
devices and assistive technology services), pertinent to the full
inclusion and integration into society, employment, independent
living, family support, and economic and social self-sufficiency of
individuals with disabilities;
``(7) taking whatever action is necessary to keep the Congress
fully and currently informed with respect to the implementation and
conduct of programs and activities carried out under this title,
including dissemination activities;
``(8) producing, in conjunction with the Department of Labor,
the National Center for Health Statistics, the Bureau of the
Census, the Health Care Financing Administration, the Social
Security Administration, the Bureau of Indian Affairs, the Indian
Health Service, and other Federal departments and agencies, as may
be appropriate, statistical reports and studies on the employment,
self-employment, telecommuting, health, income, and other
demographic characteristics of individuals with disabilities,
including information on individuals with disabilities who live in
rural or inner-city settings, with particular attention given to
underserved populations, and widely disseminating such reports and
studies to rehabilitation professionals, individuals with
disabilities, the individuals' representatives, and others to
assist in the planning, assessment, and evaluation of vocational
and other rehabilitation services for individuals with
disabilities;
``(9) conducting research on consumer satisfaction with
vocational rehabilitation services for the purpose of identifying
effective rehabilitation programs and policies that promote the
independence of individuals with disabilities and achievement of
long-term vocational goals;
``(10) conducting research to examine the relationship between
the provision of specific services and successful, sustained
employment outcomes, including employment outcomes involving self-
employment and telecommuting; and
``(11) coordinating activities with the Attorney General
regarding the provision of information, training, or technical
assistance regarding the Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.) to ensure consistency with the plan for
technical assistance required under section 506 of such Act (42
U.S.C. 12206).
``(c)(1) The Director, acting through the Institute or one or more
entities funded by the Institute, shall provide for the development and
dissemination of models to address consumer-driven information needs
related to assistive technology devices and assistive technology
services.
``(2) The development and dissemination of models may include--
``(A) convening groups of individuals with disabilities, family
members and advocates of such individuals, commercial producers of
assistive technology, and entities funded by the Institute to
develop, assess, and disseminate knowledge about information needs
related to assistive technology;
``(B) identifying the types of information regarding assistive
technology devices and assistive technology services that
individuals with disabilities find especially useful;
``(C) evaluating current models, and developing new models, for
transmitting the information described in subparagraph (B) to
consumers and to commercial producers of assistive technology; and
``(D) disseminating through one or more entities funded by the
Institute, the models described in subparagraph (C) and findings
regarding the information described in subparagraph (B) to
consumers and commercial producers of assistive technology.
``(d)(1) The Director of the Institute shall be appointed by the
Secretary. The Director shall be an individual with substantial
experience in rehabilitation and in research administration.
``(2) The Director, subject to the approval of the President, may
appoint, for terms not to exceed three years, without regard to the
provisions of title 5, United States Code, governing appointment in the
competitive service, and may compensate, without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of such title
relating to classification and General Schedule pay rates, such
technical and professional employees of the Institute as the Director
determines to be necessary to accomplish the functions of the Institute
and also appoint and compensate without regard to such provisions, in a
number not to exceed one-fifth of the number of full-time, regular
technical and professional employees of the Institute.
``(3) The Director may obtain the services of consultants, without
regard to the provisions of title 5, United States Code, governing
appointments in the competitive service.
``(e) The Director, pursuant to regulations which the Secretary
shall prescribe, may establish and maintain fellowships with such
stipends and allowances, including travel and subsistence expenses
provided for under title 5, United States Code, as the Director
considers necessary to procure the assistance of highly qualified
research fellows, including individuals with disabilities, from the
United States and foreign countries.
``(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, 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.
``(2) In providing for such scientific peer review, the Secretary
shall provide for training, as necessary and appropriate, to facilitate
the effective participation of those individuals selected to
participate in such review.
``(g) Not less than 90 percent of the funds appropriated under this
title for any fiscal year shall be expended by the Director to carry
out activities under this title through grants, contracts, or
cooperative agreements. Up to 10 percent of the funds appropriated
under this title for any fiscal year may be expended directly for the
purpose of carrying out the functions of the Director under this
section.
``(h)(1) The Director shall--
``(A) by October 1, 1998, and every fifth October 1 thereafter,
prepare and publish in the Federal Register for public comment a
draft of a 5-year plan that outlines priorities for rehabilitation
research, demonstration projects, training, and related activities
and explains the basis for such priorities;
``(B) by June 1, 1999, and every fifth June 1 thereafter, after
considering public comments, submit the plan in final form to the
appropriate committees of Congress;
``(C) at appropriate intervals, prepare and submit revisions in
the plan to the appropriate committees of Congress; and
``(D) annually prepare and submit progress reports on the plan
to the appropriate committees of Congress.
``(2) Such plan shall--
``(A) identify any covered activity that should be conducted
under this section and section 204 respecting the full inclusion
and integration into society of individuals with disabilities,
especially in the area of employment;
``(B) determine the funding priorities for covered activities
to be conducted under this section and section 204;
``(C) specify appropriate goals and timetables for covered
activities to be conducted under this section and section 204;
``(D) be developed by the Director--
``(i) after consultation with the Rehabilitation Research
Advisory Council established under section 205;
``(ii) in coordination with the Commissioner;
``(iii) after consultation with the National Council on
Disability established under title IV, the Secretary of
Education, officials responsible for the administration of the
Developmental Disabilities Assistance and Bill of Rights Act
(42 U.S.C. 6000 et seq.), and the Interagency Committee on
Disability Research established under section 203; and
``(iv) after full consideration of the input of individuals
with disabilities and the individuals' representatives,
organizations representing individuals with disabilities,
providers of services furnished under this Act, researchers in
the rehabilitation field, and any other persons or entities the
Director considers to be appropriate;
``(E) specify plans for widespread dissemination of the results
of covered activities, in accessible formats, to rehabilitation
practitioners, individuals with disabilities, and the individuals'
representatives; and
``(F) specify plans for widespread dissemination of the results
of covered activities that concern individuals with disabilities
who are members of minority groups or of populations that are
unserved or underserved by programs carried out under this Act.
``(i) In order to promote cooperation among Federal departments and
agencies conducting research programs, the Director shall consult with
the administrators of such programs, and with the Interagency Committee
established by section 203, regarding the design of research projects
conducted by such entities and the results and applications of such
research.
``(j)(1) The Director shall take appropriate actions to provide for
a comprehensive and coordinated research program under this title. In
providing such a program, the Director may undertake joint activities
with other Federal entities engaged in research and with appropriate
private entities. Any Federal entity proposing to establish any
research project related to the purposes of this Act shall consult,
through the Interagency Committee established by section 203, with the
Director as Chairperson of such Committee and provide the Director with
sufficient prior opportunity to comment on such project.
``(2) Any person responsible for administering any program of the
National Institutes of Health, the Department of Veterans Affairs, the
National Science Foundation, the National Aeronautics and Space
Administration, the Office of Special Education and Rehabilitative
Services, or of any other Federal entity, shall, through the
Interagency Committee established by section 203, consult and cooperate
with the Director in carrying out such program if the program is
related to the purposes of this title.
``(3) The Director shall support, directly or by grant or contract,
a center associated with an institution of higher education, for
research and training concerning the delivery of vocational
rehabilitation services to rural areas.
``(k) The Director shall make grants to institutions of higher
education for the training of rehabilitation researchers, including
individuals with disabilities, with particular attention to research
areas that support the implementation and objectives of this Act and
that improve the effectiveness of services authorized under this Act.
``Interagency Committee
``Sec. 203. (a)(1) In order to promote coordination and cooperation
among Federal departments and agencies conducting rehabilitation
research programs, there is established within the Federal Government
an Interagency Committee on Disability Research (hereinafter in this
section referred to as the `Committee'), chaired by the Director and
comprised of such members as the President may designate, including the
following (or their designees): the Director, the Commissioner of the
Rehabilitation Services Administration, the Assistant Secretary for
Special Education and Rehabilitative Services, the Secretary of
Education, the Secretary of Veterans Affairs, the Director of the
National Institutes of Health, the Director of the National Institute
of Mental Health, the Administrator of the National Aeronautics and
Space Administration, the Secretary of Transportation, the Assistant
Secretary of the Interior for Indian Affairs, the Director of the
Indian Health Service, and the Director of the National Science
Foundation.
``(2) The Committee shall meet not less than four times each year.
``(b) After receiving input from individuals with disabilities and
the individuals' representatives, the Committee shall identify, assess,
and seek to coordinate all Federal programs, activities, and projects,
and plans for such programs, activities, and projects with respect to
the conduct of research related to rehabilitation of individuals with
disabilities.
``(c) The Committee shall annually submit to the President and to
the appropriate committees of the Congress a report making such
recommendations as the Committee deems appropriate with respect to
coordination of policy and development of objectives and priorities for
all Federal programs relating to the conduct of research related to
rehabilitation of individuals with disabilities.
``Research and Other Covered Activities
``Sec. 204. (a)(1) To the extent consistent with priorities
established in the 5-year plan described in section 202(h), the
Director may make grants to and contracts with States and public or
private agencies and organizations, including institutions of higher
education, Indian tribes, and tribal organizations, to pay part of the
cost of projects for the purpose of planning and conducting research,
demonstration projects, training, and related activities, the purposes
of which are to develop methods, procedures, and rehabilitation
technology, that maximize the full inclusion and integration into
society, employment, independent living, family support, and economic
and social self-sufficiency of individuals with disabilities,
especially individuals with the most significant disabilities, and
improve the effectiveness of services authorized under this Act.
``(2)(A) In carrying out this section, the Director shall emphasize
projects that support the implementation of titles I, III, V, VI, and
VII, including projects addressing the needs described in the State
plans submitted under section 101 or 704 by State agencies.
``(B) Such projects, as described in the State plans submitted by
State agencies, may include--
``(i) medical and other scientific, technical, methodological,
and other investigations into the nature of disability, methods of
analyzing it, and restorative techniques, including basic research
where related to rehabilitation techniques or services;
``(ii) studies and analysis of industrial, vocational, social,
recreational, psychiatric, psychological, economic, and other
factors affecting rehabilitation of individuals with disabilities;
``(iii) studies and analysis of special problems of individuals
who are homebound and individuals who are institutionalized;
``(iv) studies, analyses, and demonstrations of architectural
and engineering design adapted to meet the special needs of
individuals with disabilities;
``(v) studies, analyses, and other activities related to
supported employment;
``(vi) related activities which hold promise of increasing
knowledge and improving methods in the rehabilitation of
individuals with disabilities and individuals with the most
significant disabilities, particularly individuals with
disabilities, and individuals with the most significant
disabilities, who are members of populations that are unserved or
underserved by programs under this Act; and
``(vii) studies, analyses, and other activities related to job
accommodations, including the use of rehabilitation engineering and
assistive technology.
``(b)(1) In addition to carrying out projects under subsection (a),
the Director may make grants under this subsection (referred to in this
subsection as `research grants') to pay part or all of the cost of the
research or other specialized covered activities described in
paragraphs (2) through (18). A research grant made under any of
paragraphs (2) through (18) may only be used in a manner consistent
with priorities established in the 5-year plan described in section
202(h).
``(2)(A) Research grants may be used for the establishment and
support of Rehabilitation Research and Training Centers, for the
purpose of providing an integrated program of research, which Centers
shall--
``(i) be operated in collaboration with institutions of higher
education or providers of rehabilitation services or other
appropriate services; and
``(ii) serve as centers of national excellence and national or
regional resources for providers and individuals with disabilities
and the individuals' representatives.
``(B) The Centers shall conduct research and training activities
by--
``(i) conducting coordinated and advanced programs of research
in rehabilitation targeted toward the production of new knowledge
that will improve rehabilitation methodology and service delivery
systems, alleviate or stabilize disabling conditions, and promote
maximum social and economic independence of individuals with
disabilities, especially promoting the ability of the individuals
to prepare for, secure, retain, regain, or advance in employment;
``(ii) providing training (including graduate, pre-service, and
in-service training) to assist individuals to more effectively
provide rehabilitation services;
``(iii) providing training (including graduate, pre-service,
and in-service training) for rehabilitation research personnel and
other rehabilitation personnel; and
``(iv) serving as an informational and technical assistance
resource to providers, individuals with disabilities, and the
individuals' representatives, through conferences, workshops,
public education programs, in-service training programs, and
similar activities.
``(C) The research to be carried out at each such Center may
include--
``(i) basic or applied medical rehabilitation research;
``(ii) research regarding the psychological and social aspects
of rehabilitation, including disability policy;
``(iii) research related to vocational rehabilitation;
``(iv) continuation of research that promotes the emotional,
social, educational, and functional growth of children who are
individuals with disabilities;
``(v) continuation of research to develop and evaluate
interventions, policies, and services that support families of
those children and adults who are individuals with disabilities;
and
``(vi) continuation of research that will improve services and
policies that foster the productivity, independence, and social
integration of individuals with disabilities, and enable
individuals with disabilities, including individuals with mental
retardation and other developmental disabilities, to live in their
communities.
``(D) Training of students preparing to be rehabilitation personnel
shall be an important priority for such a Center.
``(E) The Director shall make grants under this paragraph to
establish and support both comprehensive centers dealing with multiple
disabilities and centers primarily focused on particular disabilities.
``(F) Grants made under this paragraph may be used to provide funds
for services rendered by such a Center to individuals with disabilities
in connection with the research and training activities.
``(G) Grants made under this paragraph may be used to provide
faculty support for teaching--
``(i) rehabilitation-related courses of study for credit; and
``(ii) other courses offered by the Centers, either directly or
through another entity.
``(H) The research and training activities conducted by such a
Center shall be conducted in a manner that is accessible to and usable
by individuals with disabilities.
``(I) The Director shall encourage the Centers to develop practical
applications for the findings of the research of the Centers.
``(J) In awarding grants under this paragraph, the Director shall
take into consideration the location of any proposed Center and the
appropriate geographic and regional allocation of such Centers.
``(K) To be eligible to receive a grant under this paragraph, each
such institution or provider described in subparagraph (A) shall--
``(i) be of sufficient size, scope, and quality to effectively
carry out the activities in an efficient manner consistent with
appropriate Federal and State law; and
``(ii) demonstrate the ability to carry out the training
activities either directly or through another entity that can
provide such training.
``(L) The Director shall make grants under this paragraph for
periods of 5 years, except that the Director may make a grant for a
period of less than 5 years if--
``(i) the grant is made to a new recipient; or
``(ii) the grant supports new or innovative research.
``(M) Grants made under this paragraph shall be made on a
competitive basis. To be eligible to receive a grant under this
paragraph, a prospective grant recipient shall submit an application to
the Director at such time, in such manner, and containing such
information as the Director may require.
``(N) In conducting scientific peer review under section 202(f) of
an application for the renewal of a grant made under this paragraph,
the peer review panel shall take into account the past performance of
the applicant in carrying out the grant and input from individuals with
disabilities and the individuals' representatives.
``(O) An institution or provider that receives a grant under this
paragraph to establish such a Center may not collect more than 15
percent of the amount of the grant received by the Center in indirect
cost charges.
``(3)(A) Research grants may be used for the establishment and
support of Rehabilitation Engineering Research Centers, operated by or
in collaboration with institutions of higher education or nonprofit
organizations, to conduct research or demonstration activities, and
training activities, regarding rehabilitation technology, including
rehabilitation engineering, assistive technology devices, and assistive
technology services, for the purposes of enhancing opportunities for
better meeting the needs of, and addressing the barriers confronted by,
individuals with disabilities in all aspects of their lives.
``(B) In order to carry out the purposes set forth in subparagraph
(A), such a Center shall carry out the research or demonstration
activities by--
``(i) developing and disseminating innovative methods of
applying advanced technology, scientific achievement, and
psychological and social knowledge to--
``(I) solve rehabilitation problems and remove
environmental barriers through planning and conducting
research, including cooperative research with public or private
agencies and organizations, designed to produce new scientific
knowledge, and new or improved methods, equipment, and devices;
and
``(II) study new or emerging technologies, products, or
environments, and the effectiveness and benefits of such
technologies, products, or environments;
``(ii) demonstrating and disseminating--
``(I) innovative models for the delivery, to rural and
urban areas, of cost-effective rehabilitation technology
services that promote utilization of assistive technology
devices; and
``(II) other scientific research to assist in meeting the
employment and independent living needs of individuals with
significant disabilities; or
``(iii) conducting research or demonstration activities that
facilitate service delivery systems change by demonstrating,
evaluating, documenting, and disseminating--
``(I) consumer responsive and individual and family-
centered innovative models for the delivery to both rural and
urban areas, of innovative cost-effective rehabilitation
technology services that promote utilization of rehabilitation
technology; and
``(II) other scientific research to assist in meeting the
employment and independent living needs of, and addressing the
barriers confronted by, individuals with disabilities,
including individuals with significant disabilities.
``(C) To the extent consistent with the nature and type of research
or demonstration activities described in subparagraph (B), each Center
established or supported through a grant made available under this
paragraph shall--
``(i) cooperate with programs established under the Technology-
Related Assistance for Individuals With Disabilities Act of 1988
(29 U.S.C. 2201 et seq.) and other regional and local programs to
provide information to individuals with disabilities and the
individuals' representatives to--
``(I) increase awareness and understanding of how
rehabilitation technology can address their needs; and
``(II) increase awareness and understanding of the range of
options, programs, services, and resources available, including
financing options for the technology and services covered by
the area of focus of the Center;
``(ii) provide training opportunities to individuals, including
individuals with disabilities, to become researchers of
rehabilitation technology and practitioners of rehabilitation
technology in conjunction with institutions of higher education and
nonprofit organizations; and
``(iii) respond, through research or demonstration activities,
to the needs of individuals with all types of disabilities who may
benefit from the application of technology within the area of focus
of the Center.
``(D)(i) In establishing Centers to conduct the research or
demonstration activities described in subparagraph (B)(iii), the
Director may establish one Center in each of the following areas of
focus:
``(I) Early childhood services, including early intervention
and family support.
``(II) Education at the elementary and secondary levels,
including transition from school to postschool activities.
``(III) Employment, including supported employment, and
reasonable accommodations and the reduction of environmental
barriers as required by the Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.) and title V.
``(IV) Independent living, including transition from
institutional to community living, maintenance of community living
on leaving the workforce, self-help skills, and activities of daily
living.
``(ii) Each Center conducting the research or demonstration
activities described in subparagraph (B)(iii) shall have an advisory
committee, of which the majority of members are individuals with
disabilities who are users of rehabilitation technology, and the
individuals' representatives.
``(E) Grants made under this paragraph shall be made on a
competitive basis and shall be for a period of 5 years, except that the
Director may make a grant for a period of less than 5 years if--
``(i) the grant is made to a new recipient; or
``(ii) the grant supports new or innovative research.
``(F) To be eligible to receive a grant under this paragraph, a
prospective grant recipient shall submit an application to the Director
at such time, in such manner, and containing such information as the
Director may require.
``(G) Each Center established or supported through a grant made
available under this paragraph shall--
``(i) cooperate with State agencies and other local, State,
regional, and national programs and organizations developing or
delivering rehabilitation technology, including State programs
funded under the Technology-Related Assistance for Individuals With
Disabilities Act of 1988 (29 U.S.C. 2201 et seq.); and
``(ii) prepare and submit to the Director as part of an
application for continuation of a grant, or as a final report, a
report that documents the outcomes of the program of the Center in
terms of both short- and long-term impact on the lives of
individuals with disabilities, and such other information as may be
requested by the Director.
``(4)(A) Research grants may be used to conduct a program for
spinal cord injury research, including conducting such a program by
making grants to public or private agencies and organizations to pay
part or all of the costs of special projects and demonstration projects
for spinal cord injuries, that will--
``(i) ensure widespread dissemination of research findings
among all Spinal Cord Injury Centers, to rehabilitation
practitioners, individuals with spinal cord injury, the
individuals' representatives, and organizations receiving financial
assistance under this paragraph;
``(ii) provide encouragement and support for initiatives and
new approaches by individual and institutional investigators; and
``(iii) establish and maintain close working relationships with
other governmental and voluntary institutions and organizations
engaged in similar efforts in order to unify and coordinate
scientific efforts, encourage joint planning, and promote the
interchange of data and reports among spinal cord injury
investigations.
``(B) Any agency or organization carrying out a project or
demonstration project assisted by a grant under this paragraph that
provides services to individuals with spinal cord injuries shall--
``(i) establish, on an appropriate regional basis, a
multidisciplinary system of providing vocational and other
rehabilitation services, specifically designed to meet the special
needs of individuals with spinal cord injuries, including acute
care as well as periodic inpatient or outpatient followup and
services;
``(ii) demonstrate and evaluate the benefits to individuals
with spinal cord injuries served in, and the degree of cost-
effectiveness of, such a regional system;
``(iii) demonstrate and evaluate existing, new, and improved
methods and rehabilitation technology essential to the care,
management, and rehabilitation of individuals with spinal cord
injuries; and
``(iv) demonstrate and evaluate methods of community outreach
for individuals with spinal cord injuries and community education
in connection with the problems of such individuals in areas such
as housing, transportation, recreation, employment, and community
activities.
``(C) In awarding grants under this paragraph, the Director shall
take into account the location of any proposed Spinal Cord Injury
Center and the appropriate geographic and regional allocation of such
Centers.
``(5) Research grants may be used to conduct a program for end-
stage renal disease research, to include support of projects and
demonstrations for providing special services (including
transplantation and dialysis), artificial kidneys, and supplies
necessary for the rehabilitation of individuals with such disease and
which will--
``(A) ensure dissemination of research findings;
``(B) provide encouragement and support for initiatives and new
approaches by individuals and institutional investigators; and
``(C) establish and maintain close working relationships with
other governmental and voluntary institutions and organizations
engaged in similar efforts,
in order to unify and coordinate scientific efforts, encourage joint
planning, and promote the interchange of data and reports among
investigators in the field of end-stage renal disease. No person shall
be selected to participate in such program who is eligible for services
for such disease under any other provision of law.
``(6) Research grants may be used to conduct a program for
international rehabilitation research, demonstration, and training for
the purpose of developing new knowledge and methods in the
rehabilitation of individuals with disabilities in the United States,
cooperating with and assisting in developing and sharing information
found useful in other nations in the rehabilitation of individuals with
disabilities, and initiating a program to exchange experts and
technical assistance in the field of rehabilitation of individuals with
disabilities with other nations as a means of increasing the levels of
skill of rehabilitation personnel.
``(7) Research grants may be used to conduct a research program
concerning the use of existing telecommunications systems (including
telephone, television, satellite, radio, and other similar systems)
which have the potential for substantially improving service delivery
methods, and the development of appropriate programming to meet the
particular needs of individuals with disabilities.
``(8) Research grants may be used to conduct a program of joint
projects with the National Institutes of Health, the National Institute
of Mental Health, the Health Services Administration, the
Administration on Aging, the National Science Foundation, the Veterans'
Administration, the Department of Health and Human Services, the
National Aeronautics and Space Administration, other Federal agencies,
and private industry in areas of joint interest involving
rehabilitation.
``(9) Research grants may be used to conduct a program of research
related to the rehabilitation of children, or older individuals, who
are individuals with disabilities, including older American Indians who
are individuals with disabilities. Such research program may include
projects designed to assist the adjustment of, or maintain as residents
in the community, older workers who are individuals with disabilities
on leaving the workforce.
``(10) Research grants may be used to conduct a research program to
develop and demonstrate innovative methods to attract and retain
professionals to serve in rural areas in the rehabilitation of
individuals with disabilities, including individuals with significant
disabilities.
``(11) Research grants may be used to conduct a model research and
demonstration project designed to assess the feasibility of
establishing a center for producing and distributing to individuals who
are deaf or hard of hearing captioned video cassettes providing a broad
range of educational, cultural, scientific, and vocational programming.
``(12) Research grants may be used to conduct a model research and
demonstration program to develop innovative methods of providing
services for preschool age children who are individuals with
disabilities, including--
``(A) early intervention, assessment, parent counseling, infant
stimulation, early identification, diagnosis, and evaluation of
children who are individuals with significant disabilities up to
the age of five, with a special emphasis on children who are
individuals with significant disabilities up to the age of three;
``(B) such physical therapy, language development, pediatric,
nursing, psychological, and psychiatric services as are necessary
for such children; and
``(C) appropriate services for the parents of such children,
including psychological and psychiatric services, parent
counseling, and training.
``(13) Research grants may be used to conduct a model research and
training program under which model training centers shall be
established to develop and use more advanced and effective methods of
evaluating and addressing the employment needs of individuals with
disabilities, including programs that--
``(A) provide training and continuing education for personnel
involved with the employment of individuals with disabilities;
``(B) develop model procedures for testing and evaluating the
employment needs of individuals with disabilities;
``(C) develop model training programs to teach individuals with
disabilities skills which will lead to appropriate employment;
``(D) develop new approaches for job placement of individuals
with disabilities, including new followup procedures relating to
such placement;
``(E) provide information services regarding education,
training, employment, and job placement for individuals with
disabilities; and
``(F) develop new approaches and provide information regarding
job accommodations, including the use of rehabilitation engineering
and assistive technology.
``(14) Research grants may be used to conduct a rehabilitation
research program under which financial assistance is provided in order
to--
``(A) test new concepts and innovative ideas;
``(B) demonstrate research results of high potential benefits;
``(C) purchase prototype aids and devices for evaluation;
``(D) develop unique rehabilitation training curricula; and
``(E) be responsive to special initiatives of the Director.
No single grant under this paragraph may exceed $50,000 in any fiscal
year and all payments made under this paragraph in any fiscal year may
not exceed 5 percent of the amount available for this section to the
National Institute on Disability and Rehabilitation Research in any
fiscal year. Regulations and administrative procedures with respect to
financial assistance under this paragraph shall, to the maximum extent
possible, be expedited.
``(15) Research grants may be used to conduct studies of the
rehabilitation needs of American Indian populations and of effective
mechanisms for the delivery of rehabilitation services to Indians
residing on and off reservations.
``(16) Research grants may be used to conduct a demonstration
program under which one or more projects national in scope shall be
established to develop procedures to provide incentives for the
development, manufacturing, and marketing of orphan technological
devices, including technology transfer concerning such devices,
designed to enable individuals with disabilities to achieve
independence and access to gainful employment.
``(17)(A) Research grants may be used to conduct a research program
related to quality assurance in the area of rehabilitation technology.
``(B) Activities carried out under the research program may
include--
``(i) the development of methodologies to evaluate
rehabilitation technology products and services and the
dissemination of the methodologies to consumers and other
interested parties;
``(ii) identification of models for service provider training
and evaluation and certification of the effectiveness of the
models;
``(iii) identification and dissemination of outcome measurement
models for the assessment of rehabilitation technology products and
services; and
``(iv) development and testing of research-based tools to
enhance consumer decisionmaking about rehabilitation technology
products and services.
``(18) Research grants may be used to provide for research and
demonstration projects and related activities that explore the use and
effectiveness of specific alternative or complementary medical
practices for individuals with disabilities. Such projects and
activities may include projects and activities designed to--
``(A) determine the use of specific alternative or
complementary medical practices among individuals with disabilities
and the perceived effectiveness of the practices;
``(B) determine the specific information sources,
decisionmaking methods, and methods of payment used by individuals
with disabilities who access alternative or complementary medical
services;
``(C) develop criteria to screen and assess the validity of
research studies of such practices for individuals with
disabilities; and
``(D) determine the effectiveness of specific alternative or
complementary medical practices that show promise for promoting
increased functioning, prevention of secondary disabilities, or
other positive outcomes for individuals with certain types of
disabilities, by conducting controlled research studies.
``(c)(1) In carrying out evaluations of covered activities under
this section, the Director is authorized to make arrangements for site
visits to obtain information on the accomplishments of the projects.
``(2) The Director shall not make a grant under this section that
exceeds $500,000 unless the peer review of the grant application has
included a site visit.
``Rehabilitation Research Advisory Council
``Sec. 205. (a) Establishment.--Subject to the availability of
appropriations, the Secretary shall establish in the Department of
Education a Rehabilitation Research Advisory Council (referred to in
this section as the `Council') composed of 12 members appointed by the
Secretary.
``(b) Duties.--The Council shall advise the Director with respect
to research priorities and the development and revision of the 5-year
plan required by section 202(h).
``(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.
``(d) Terms of Appointment.--
``(1) Length of term.--Each member of the Council shall serve
for a term of up to 3 years, determined by the Secretary, except
that--
``(A) a member appointed to fill a vacancy occurring prior
to the expiration of the term for which a predecessor was
appointed, shall be appointed for the remainder of such term;
and
``(B) the terms of service of the members initially
appointed shall be (as specified by the Secretary) for such
fewer number of years as will provide for the expiration of
terms on a staggered basis.
``(2) Number of terms.--No member of the Council may serve more
than two consecutive full terms. Members may serve after the
expiration of their terms until their successors have taken office.
``(e) Vacancies.--Any vacancy occurring in the membership of the
Council shall be filled in the same manner as the original appointment
for the position being vacated. The vacancy shall not affect the power
of the remaining members to execute the duties of the Council.
``(f) Payment and Expenses.--
``(1) Payment.--Each member of the Council who is not an
officer or full-time employee of the Federal Government shall
receive a payment of $150 for each day (including travel time)
during which the member is engaged in the performance of duties for
the Council. All members of the Council who are officers or full-
time employees of the United States shall serve without
compensation in addition to compensation received for their
services as officers or employees of the United States.
``(2) Travel expenses.--Each member of the Council may receive
travel expenses, including per diem in lieu of subsistence, as
authorized by section 5703 of title 5, United States Code, for
employees serving intermittently in the Government service, for
each day the member is engaged in the performance of duties away
from the home or regular place of business of the member.
``(g) Detail of Federal Employees.--On the request of the Council,
the Secretary may detail, with or without reimbursement, any of the
personnel of the Department of Education to the Council to assist the
Council in carrying out its duties. Any detail shall not interrupt or
otherwise affect the civil service status or privileges of the Federal
employee.
``(h) Technical Assistance.--On the request of the Council, the
Secretary shall provide such technical assistance to the Council as the
Council determines to be necessary to carry out its duties.
``(i) Termination.--Section 14 of the Federal Advisory Committee Act
(5 U.S.C. App.) shall not apply with respect to the Council.''.
SEC. 406. PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND DEMONSTRATIONS.
Title III of the Rehabilitation Act of 1973 (29 U.S.C. 770 et seq.)
is amended to read as follows:
``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND DEMONSTRATIONS
``SEC. 301. DECLARATION OF PURPOSE AND COMPETITIVE BASIS OF GRANTS AND
CONTRACTS.
``(a) Purpose.--It is the purpose of this title to authorize grants
and contracts to--
``(1)(A) provide academic training to ensure that skilled
personnel are available to provide rehabilitation services to
individuals with disabilities through vocational, medical, social,
and psychological rehabilitation programs (including supported
employment programs), through economic and business development
programs, through independent living services programs, and through
client assistance programs; and
``(B) provide training to maintain and upgrade basic skills and
knowledge of personnel (including personnel specifically trained to
deliver services to individuals with disabilities whose employment
outcome is self-employment or telecommuting) employed to provide
state-of-the-art service delivery and rehabilitation technology
services;
``(2) conduct special projects and demonstrations that expand
and improve the provision of rehabilitation and other services
(including those services provided through community rehabilitation
programs) authorized under this Act, or that otherwise further the
purposes of this Act, including related research and evaluation;
``(3) provide vocational rehabilitation services to individuals
with disabilities who are migrant or seasonal farmworkers;
``(4) initiate recreational programs to provide recreational
activities and related experiences for individuals with
disabilities to aid such individuals in employment, mobility,
socialization, independence, and community integration; and
``(5) provide training and information to individuals with
disabilities and the individuals' representatives, and other
appropriate parties to develop the skills necessary for individuals
with disabilities to gain access to the rehabilitation system and
statewide workforce investment systems and to become active
decisionmakers in the rehabilitation process.
``(b) Competitive Basis of Grants and Contracts.--The Secretary
shall ensure that all grants and contracts are awarded under this title
on a competitive basis.
``SEC. 302. TRAINING.
``(a) Grants and Contracts for Personnel Training.--
``(1) Authority.--The Commissioner shall make grants to, and
enter into contracts with, States and public or nonprofit agencies
and organizations (including institutions of higher education) to
pay part of the cost of projects to provide training, traineeships,
and related activities, including the provision of technical
assistance, that are designed to assist in increasing the numbers
of, and upgrading the skills of, qualified personnel (especially
rehabilitation counselors) who are trained in providing vocational,
medical, social, and psychological rehabilitation services, who are
trained to assist individuals with communication and related
disorders, who are trained to provide other services provided under
this Act, to individuals with disabilities, and who may include--
``(A) personnel specifically trained in providing
employment assistance to individuals with disabilities through
job development and job placement services;
``(B) personnel specifically trained to identify, assess,
and meet the individual rehabilitation needs of individuals
with disabilities, including needs for rehabilitation
technology;
``(C) personnel specifically trained to deliver services to
individuals who may benefit from receiving independent living
services;
``(D) personnel specifically trained to deliver services in
the client assistance programs;
``(E) personnel specifically trained to deliver services,
through supported employment programs, to individuals with a
most significant disability; and
``(F) personnel specifically trained to deliver services to
individuals with disabilities pursuing self-employment,
business ownership, and telecommuting; and
``(G) personnel trained in performing other functions
necessary to the provision of vocational, medical, social, and
psychological rehabilitation services, and other services
provided under this Act.
``(2) Authority to provide scholarships.--Grants and contracts
under paragraph (1) may be expended for scholarships and may
include necessary stipends and allowances.
``(3) Related federal statutes.--In carrying out this
subsection, the Commissioner may make grants to and enter into
contracts with States and public or nonprofit agencies and
organizations, including institutions of higher education, to
furnish training regarding provisions of Federal statutes,
including section 504, title I of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12111 et seq.), and the provisions of titles
II and XVI of the Social Security Act (42 U.S.C. 401 et seq. and
1381 et seq.), that are related to work incentives for individuals
with disabilities.
``(4) Training for statewide workforce systems personnel.--The
Commissioner may make grants to and enter into contracts under this
subsection with States and public or nonprofit agencies and
organizations, including institutions of higher education, to
furnish training to personnel providing services to individuals
with disabilities under title I of the Workforce Investment Act of
1998. Under this paragraph, personnel may be trained--
``(A) in evaluative skills to determine whether an
individual with a disability may be served by the State
vocational rehabilitation program or another component of a
statewide workforce investment system; or
``(B) to assist individuals with disabilities seeking
assistance through one-stop delivery systems described in
section 134(c) of the Workforce Investment Act of 1998.
``(5) Joint funding.--Training and other activities provided
under paragraph (4) for personnel may be jointly funded with the
Department of Labor, using funds made available under title I of
the Workforce Investment Act of 1998.
``(b) Grants and Contracts for Academic Degrees and Academic
Certificate Granting Training Projects.--
``(1) Authority.--
``(A) In general.--The Commissioner may make grants to, and
enter into contracts with, States and public or nonprofit
agencies and organizations (including institutions of higher
education) to pay part of the costs of academic training
projects to provide training that leads to an academic degree
or academic certificate. In making such grants or entering into
such contracts, the Commissioner shall target funds to areas
determined under subsection (e) to have shortages of qualified
personnel.
``(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;
``(ii) projects to train personnel to provide--
``(I) services to individuals with specific
disabilities or individuals with disabilities who have
specific impediments to rehabilitation, including
individuals who are members of populations that are
unserved or underserved by programs under this Act;
``(II) job development and job placement services
to individuals with disabilities;
``(III) supported employment services, including
services of employment specialists for individuals with
disabilities;
``(IV) specialized services for individuals with
significant disabilities; or
``(V) recreation for individuals with disabilities;
``(iii) projects to train personnel in other fields
contributing to the rehabilitation of individuals with
disabilities; and
``(iv) projects to train personnel in the use,
applications, and benefits of rehabilitation technology.
``(2) Application.--No grant shall be awarded or contract
entered into under this subsection unless the applicant has
submitted to the Commissioner an application at such time, in such
form, in accordance with such procedures, and including such
information as the Secretary may require, including--
``(A) a description of how the designated State unit or
units will participate in the project to be funded under the
grant or contract, including, as appropriate, participation on
advisory committees, as practicum sites, in curriculum
development, and in other ways so as to build closer
relationships between the applicant and the designated State
unit and to encourage students to pursue careers in public
vocational rehabilitation programs;
``(B) the identification of potential employers that
provide employment that meets the requirements of paragraph
(5)(A)(i); and
``(C) an assurance that data on the employment of graduates
or trainees who participate in the project is accurate.
``(3) Limitation.--
``(A) In general.--Except as provided in subparagraph (B),
no grant or contract under this subsection may be used to
provide any one course of study to an individual for a period
of more than 4 years.
``(B) Exception.--If a grant or contract recipient under
this subsection determines that an individual has a disability
which seriously affects the completion of training under this
subsection, the grant or contract recipient may extend the
period referred to in subparagraph (A).
``(4) Authority to provide scholarships.--Grants and contracts
under paragraph (1) may be expanded to provide services that
include the provision of scholarships and necessary stipends and
allowances.
``(5) Agreements.--
``(A) Contents.--A recipient of a grant or contract under
this subsection shall provide assurances to the Commissioner
that each individual who receives a scholarship, for any
academic year beginning after June 1, 1992, utilizing funds
provided under such grant or contract shall enter into an
agreement with the recipient under which the individual shall--
``(i) maintain employment--
``(I) in a nonprofit rehabilitation agency or
related agency or in a State rehabilitation agency or
related agency, including a professional corporation or
professional practice group through which the
individual has a service arrangement with the
designated State agency;
``(II) on a full- or part-time basis; and
``(III) for a period of not less than the full-time
equivalent of 2 years for each year for which
assistance under this section was received by the
individual,
within a period, beginning after the recipient completes
the training for which the scholarship was awarded, of not
more than the sum of the number of years in the period
described in subclause (III) and 2 additional years; and
``(ii) repay all or part of any scholarship received,
plus interest, if the individual does not fulfill the
requirements of clause (i),
except as the Commissioner by regulation may provide for
repayment exceptions and deferrals.
``(B) Enforcement.--The Commissioner shall be responsible
for the enforcement of each agreement entered into under
subparagraph (A) upon completion of the training involved under
such subparagraph.
``(c) Grants to Historically Black Colleges and Universities.--The
Commissioner, in carrying out this section, shall make grants to
historically Black colleges and universities and other institutions of
higher education whose minority student enrollment is at least 50
percent of the total enrollment of the institution.
``(d) Application.--A grant may not be awarded to a State or other
organization under this section unless the State or organization has
submitted an application to the Commissioner at such time, in such
form, in accordance with such procedures, and containing such
information as the Commissioner may require. Any such application shall
include a detailed description of strategies that will be utilized to
recruit and train individuals so as to reflect the diverse populations
of the United States as part of the effort to increase the number of
individuals with disabilities, and individuals who are from
linguistically and culturally diverse backgrounds, who are available to
provide rehabilitation services.
``(e) Evaluation and Collection of Data.--The Commissioner shall
evaluate the impact of the training programs conducted under this
section, and collect information on the training needs of, and data on
shortages of qualified personnel necessary to provide services to
individuals with disabilities. The Commissioner shall prepare and
submit to Congress, by September 30 of each fiscal year, a report
setting forth and justifying in detail how the funds made available for
training under this section for the fiscal year prior to such
submission are allocated by professional discipline and other program
areas. The report shall also contain findings on such personnel
shortages, how funds proposed for the succeeding fiscal year will be
allocated under the President's budget proposal, and how the findings
on personnel shortages justify the allocations.
``(f) Grants for the Training of Interpreters.--
``(1) Authority.--
``(A) In general.--For the purpose of training a sufficient
number of qualified interpreters to meet the communications
needs of individuals who are deaf or hard of hearing, and
individuals who are deaf-blind, the Commissioner, acting
through a Federal office responsible for deafness and
communicative disorders, may award grants to public or private
nonprofit agencies or organizations to pay part of the costs--
``(i) for the establishment of interpreter training
programs; or
``(ii) to enable such agencies or organizations to
provide financial assistance for ongoing interpreter
training programs.
``(B) Geographic areas.--The Commissioner shall award
grants under this subsection for programs in geographic areas
throughout the United States that the Commissioner considers
appropriate to best carry out the objectives of this section.
``(C) Priority.--In awarding grants under this subsection,
the Commissioner shall give priority to public or private
nonprofit agencies or organizations with existing programs that
have a demonstrated capacity for providing interpreter training
services.
``(D) Funding.--The Commissioner may award grants under
this subsection through the use of--
``(i) amounts appropriated to carry out this section;
or
``(ii) pursuant to an agreement with the Director of
the Office of the Special Education Program (established
under section 603 of the Individuals with Disabilities
Education Act (as amended by section 101 of the Individuals
with Disabilities Education Act Amendments of 1997 (Public
Law 105-17))), amounts appropriated under section 686 of
the Individuals with Disabilities Education Act.
``(2) Application.--A grant may not be awarded to an agency or
organization under paragraph (1) unless the agency or organization
has submitted an application to the Commissioner at such time, in
such form, in accordance with such procedures, and containing such
information as the Commissioner may require, including--
``(A) a description of the manner in which an interpreter
training program will be developed and operated during the 5-
year period following the date on which a grant is received by
the applicant under this subsection;
``(B) a demonstration of the applicant's capacity or
potential for providing training for interpreters for
individuals who are deaf or hard of hearing, and individuals
who are deaf-blind;
``(C) assurances that any interpreter trained or retrained
under a program funded under the grant will meet such minimum
standards of competency as the Commissioner may establish for
purposes of this subsection; and
``(D) such other information as the Commissioner may
require.
``(g) Technical Assistance and In-Service Training.--
``(1) Technical assistance.--The Commissioner is authorized to
provide technical assistance to State designated agencies and
community rehabilitation programs, directly or through contracts
with State designated agencies or nonprofit organizations.
``(2) Compensation.--An expert or consultant appointed or
serving under contract pursuant to this section shall be
compensated at a rate, subject to approval of the Commissioner,
that shall not exceed the daily equivalent of the rate of pay for
level 4 of the Senior Executive Service Schedule under section 5382
of title 5, United States Code. Such an expert or consultant may be
allowed travel and transportation expenses in accordance with
section 5703 of title 5, United States Code.
``(3) In-service training of rehabilitation personnel.--
``(A) Projects.--Subject to subparagraph (B), at least 15
percent of the sums appropriated to carry out this section
shall be allocated to designated State agencies to be used,
directly or indirectly, for projects for in-service training
for rehabilitation personnel, consistent with the needs
identified through the comprehensive system for personnel
development required by section 101(a)(7), including projects
designed--
``(i) to address recruitment and retention of qualified
rehabilitation professionals;
``(ii) to provide for succession planning;
``(iii) to provide for leadership development and
capacity building; and
``(iv) for fiscal years 1999 and 2000, to provide
training regarding the Workforce Investment Act of 1998 and
the amendments to this Act made by the Rehabilitation Act
Amendments of 1998.
``(B) Limitation.--If the allocation to designated State
agencies required by subparagraph (A) would result in a lower
level of funding for projects being carried out on the date of
enactment of the Rehabilitation Act Amendments of 1998 by other
recipients of funds under this section, the Commissioner may
allocate less than 15 percent of the sums described in
subparagraph (A) to designated State agencies for such in-
service training.
``(h) Provision of Information.--The Commissioner, subject to the
provisions of section 306, may require that recipients of grants or
contracts under this section provide information, including data, with
regard to the impact of activities funded under this section.
``(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.
``SEC. 303. DEMONSTRATION AND TRAINING PROGRAMS.
``(a) Demonstration Projects To Increase Client Choice.--
``(1) Grants.--The Commissioner may make grants to States and
public or nonprofit agencies and organizations to pay all or part
of the costs of projects to demonstrate ways to increase client
choice in the rehabilitation process, including the selection of
providers of vocational rehabilitation services.
``(2) Use of funds.--An entity that receives a grant under this
subsection shall use the grant only--
``(A) for activities that are directly related to planning,
operating, and evaluating the demonstration projects; and
``(B) to supplement, and not supplant, funds made available
from Federal and non-Federal sources for such projects.
``(3) Application.--Any eligible entity that desires to receive
a grant under this subsection shall submit an application at such
time, in such manner, and containing such information and
assurances as the Commissioner may require, including--
``(A) a description of--
``(i) how the entity intends to promote increased
client choice in the rehabilitation process, including a
description, if appropriate, of how an applicant will
determine the cost of any service or product offered to an
eligible client;
``(ii) how the entity intends to ensure that any
vocational rehabilitation service or related service is
provided by a qualified provider who is accredited or meets
such other quality assurance and cost-control criteria as
the State may establish; and
``(iii) the outreach activities to be conducted by the
applicant to obtain eligible clients; and
``(B) assurances that a written plan will be established
with the full participation of the client, which plan shall, at
a minimum, include--
``(i) a statement of the vocational rehabilitation
goals to be achieved;
``(ii) a statement of the specific vocational
rehabilitation services to be provided, the projected dates
for their initiation, and the anticipated duration of each
such service; and
``(iii) objective criteria, an evaluation procedure,
and a schedule, for determining whether such goals are
being achieved.
``(4) Award of grants.--In selecting entities to receive grants
under paragraph (1), the Commissioner shall take into
consideration--
``(A) the diversity of strategies used to increase client
choice, including selection among qualified service providers;
``(B) the geographic distribution of projects; and
``(C) the diversity of clients to be served.
``(5) Records.--Entities that receive grants under paragraph
(1) shall maintain such records as the Commissioner may require and
comply with any request from the Commissioner for such records.
``(6) Direct services.--At least 80 percent of the funds
awarded for any project under this subsection shall be used for
direct services, as specifically chosen by eligible clients.
``(7) Evaluation.--The Commissioner may conduct an evaluation
of the demonstration projects with respect to the services
provided, clients served, client outcomes obtained, implementation
issues addressed, the cost-effectiveness of the project, and the
effects of increased choice on clients and service providers. The
Commissioner may reserve funds for the evaluation for a fiscal year
from the amounts appropriated to carry out projects under this
section for the fiscal year.
``(8) Definitions.--For the purposes of this subsection:
``(A) Direct services.--The term `direct services' means
vocational rehabilitation services, as described in section
103(a).
``(B) Eligible client.--The term `eligible client' means an
individual with a disability, as defined in section 7(20)(A),
who is not currently receiving services under an individualized
plan for employment established through a designated State
unit.
``(b) Special Demonstration Programs.--
``(1) Grants; contracts.--The Commissioner, subject to the
provisions of section 306, may provide grants to, or enter into
contracts with, eligible entities to pay all or part of the cost of
programs that expand and improve the provision of rehabilitation
and other services authorized under this Act or that further the
purposes of the Act, including related research and evaluation
activities.
``(2) Eligible entities; terms and conditions.--
``(A) Eligible entities.--To be eligible to receive a
grant, or enter into a contract, under paragraph (1), an entity
shall be a State vocational rehabilitation agency, community
rehabilitation program, Indian tribe or tribal organization, or
other public or nonprofit agency or organization, or as the
Commissioner determines appropriate, a for-profit organization.
The Commissioner may limit competitions to one or more types of
organizations described in this subparagraph.
``(B) Terms and conditions.--A grant or contract under
paragraph (1) shall contain such terms and conditions as the
Commissioner may require.
``(3) Application.--An eligible entity that desires to receive
a grant, or enter into a contract, under paragraph (1) shall submit
an application to the Secretary at such time, in such form, and
containing such information and assurances as the Commissioner may
require, including, if the Commissioner determines appropriate, a
description of how the proposed project or demonstration program--
``(A) is based on current research findings, which may
include research conducted by the National Institute on
Disability and Rehabilitation Research, the National Institutes
of Health, and other public or private organizations; and
``(B) is of national significance.
``(4) Types of projects.--The programs that may be funded under
this subsection may include--
``(A) special projects and demonstrations of service
delivery;
``(B) model demonstration projects;
``(C) technical assistance projects;
``(D) systems change projects;
``(E) special studies and evaluations; and
``(F) dissemination and utilization activities.
``(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 and demonstration programs of
service delivery for adults who are either low-functioning
and deaf or low-functioning and hard of hearing;
``(ii) supported employment, including community-based
supported employment programs to meet the needs of
individuals with the most significant disabilities or to
provide technical assistance to States and community
organizations to improve and expand the provision of
supported employment services; and
``(iii) model transitional planning services for youths
with disabilities.
``(B) Additional competitions.--In announcing competitions
for grants and contracts under this subsection, the
Commissioner may require that applicants address one or more of
the following:
``(i) Age ranges.
``(ii) Types of disabilities.
``(iii) Types of services.
``(iv) Models of service delivery.
``(v) Stage of the rehabilitation process.
``(vi) The needs of underserved populations, unserved
and underserved areas, individuals with significant
disabilities, low-incidence disability population or
individuals residing in federally designated empowerment
zones and enterprise communities.
``(vii) Expansion of employment opportunities for
individuals with disabilities.
``(viii) Systems change projects to promote meaningful
access of individuals with disabilities to employment-
related services under title I of the Workforce Investment
Act of 1998 and under other Federal laws.
``(ix) Innovative methods of promoting achievement of
high-quality employment outcomes.
``(x) The demonstration of the effectiveness of early
intervention activities in improving employment outcomes.
``(xi) Alternative methods of providing affordable
transportation services to individuals with disabilities
who are employed, seeking employment, or receiving
vocational rehabilitation services from public or private
organizations and who reside in geographic areas in which
public transportation or paratransit service is not
available.
``(6) Use of funds for continuation awards.--The Commissioner
may use funds made available to carry out this section for
continuation awards for projects that were funded under sections 12
and 311 (as such sections were in effect on the day before the date
of the enactment of the Rehabilitation Act Amendments of 1998).
``(c) Parent Information and Training Program.--
``(1) Grants.--The Commissioner is authorized to make grants to
private nonprofit organizations for the purpose of establishing
programs to provide training and information to enable individuals
with disabilities, and the parents, family members, guardians,
advocates, or other authorized representatives of the individuals
to participate more effectively with professionals in meeting the
vocational, independent living, and rehabilitation needs of
individuals with disabilities. Such grants shall be designed to
meet the unique training and information needs of the individuals
described in the preceding sentence, who live in the area to be
served, particularly those who are members of populations that have
been unserved or underserved by programs under this Act.
``(2) Use of grants.--An organization that receives a grant to
establish training and information programs under this subsection
shall use the grant to assist individuals with disabilities, and
the parents, family members, guardians, advocates, or authorized
representatives of the individuals--
``(A) to better understand vocational rehabilitation and
independent living programs and services;
``(B) to provide followup support for transition and
employment programs;
``(C) to communicate more effectively with transition and
rehabilitation personnel and other relevant professionals;
``(D) to provide support in the development of the
individualized plan for employment;
``(E) to provide support and expertise in obtaining
information about rehabilitation and independent living
programs, services, and resources that are appropriate; and
``(F) to understand the provisions of this Act,
particularly provisions relating to employment, supported
employment, and independent living.
``(3) Award of grants.--The Commissioner shall ensure that
grants under this subsection--
``(A) shall be distributed geographically to the greatest
extent possible throughout all States; and
``(B) shall be targeted to individuals with disabilities,
and the parents, family members, guardians, advocates, or
authorized representatives of the individuals, in both urban
and rural areas or on a State or regional basis.
``(4) Eligible organizations.--In order to receive a grant
under this subsection, an organization--
``(A) shall submit an application to the Commissioner at
such time, in such manner, and containing such information as
the Commissioner may require, including information
demonstrating the capacity and expertise of the organization--
``(i) to coordinate training and information activities
with Centers for Independent Living;
``(ii) to coordinate and work closely with parent
training and information centers established pursuant to
section 682(a) of the Individuals with Disabilities
Education Act (as added by section 101 of the Individuals
with Disabilities Education Act Amendments of 1997; Public
Law 105-17); and
``(iii) to effectively conduct the training and
information activities authorized under this subsection;
``(B)(i) shall be governed by a board of directors--
``(I) that includes professionals in the field of
vocational rehabilitation; and
``(II) on which a majority of the members are
individuals with disabilities or the parents, family
members, guardians, advocates, or authorized
representatives of the individuals; or
``(ii)(I) shall have a membership that represents the
interests of individuals with disabilities; and
``(II) shall establish a special governing committee that
meets the requirements specified in subclauses (I) and (II) of
clause (i) to operate a training and information program under
this subsection; and
``(C) shall serve individuals with a full range of
disabilities, and the parents, family members, guardians,
advocates, or authorized representatives of the individuals.
``(5) Consultation.--Each organization carrying out a program
receiving assistance under this subsection shall consult with
appropriate agencies that serve or assist individuals with
disabilities, and the parents, family members, guardians,
advocates, or authorized representatives of the individuals,
located in the jurisdiction served by the program.
``(6) Coordination.--The Commissioner shall provide
coordination and technical assistance by grant or cooperative
agreement for establishing, developing, and coordinating the
training and information programs. To the extent practicable, such
assistance shall be provided by the parent training and information
centers established pursuant to section 682(a) of the Individuals
with Disabilities Education Act (as added by section 101 of the
Individuals with Disabilities Education Act Amendments of 1997;
Public Law 105-17).
``(7) Review.--
``(A) Quarterly review.--The board of directors or special
governing committee of an organization receiving a grant under
this subsection shall meet at least once in each calendar
quarter to review the training and information program, and
each such committee shall directly advise the governing board
regarding the views and recommendations of the committee.
``(B) Review for grant renewal.--If a nonprofit private
organization requests the renewal of a grant under this
subsection, the board of directors or the special governing
committee shall prepare and submit to the Commissioner a
written review of the training and information program
conducted by the organization during the preceding fiscal year.
``(d) Braille Training Programs.--
``(1) Establishment.--The Commissioner shall make grants to,
and enter into contracts with, States and public or nonprofit
agencies and organizations, including institutions of higher
education, to pay all or part of the cost of training in the use of
braille for personnel providing vocational rehabilitation services
or educational services to youth and adults who are blind.
``(2) Projects.--Such grants shall be used for the
establishment or continuation of projects that may provide--
``(A) development of braille training materials;
``(B) in-service or pre-service training in the use of
braille, the importance of braille literacy, and methods of
teaching braille to youth and adults who are blind; and
``(C) activities to promote knowledge and use of braille
and nonvisual access technology for blind youth and adults
through a program of training, demonstration, and evaluation
conducted with leadership of experienced blind individuals,
including the use of comprehensive, state-of-the-art
technology.
``(3) Application.--To be eligible to receive a grant, or enter
into a contract, under paragraph (1), an agency or organization
shall submit an application to the Commissioner at such time, in
such manner, and containing such information as the Commissioner
may require.
``(e) 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.
``SEC. 304. MIGRANT AND SEASONAL FARMWORKERS.
``(a) Grants.--
``(1) Authority.--The Commissioner, subject to the provisions
of section 306, may make grants to eligible entities to pay up to
90 percent of the cost of projects or demonstration programs for
the provision of vocational rehabilitation services to individuals
with disabilities who are migrant or seasonal farmworkers, as
determined in accordance with rules prescribed by the Secretary of
Labor, and to the family members who are residing with such
individuals (whether or not such family members are individuals
with disabilities).
``(2) Eligible entities.--To be eligible to receive a grant
under paragraph (1), an entity shall be--
``(A) a State designated agency;
``(B) a nonprofit agency working in collaboration with a
State agency described in subparagraph (A); or
``(C) a local agency working in collaboration with a State
agency described in subparagraph (A).
``(3) Maintenance and transportation.--
``(A) In general.--Amounts provided under a grant under
this section may be used to provide for the maintenance of and
transportation for individuals and family members described in
paragraph (1) as necessary for the rehabilitation of such
individuals.
``(B) Requirement.--Maintenance payments under this
paragraph shall be provided in a manner consistent with any
maintenance payments provided to other individuals with
disabilities in the State under this Act.
``(4) Assurance of cooperation.--To be eligible to receive a
grant under this section an entity shall provide assurances
(satisfactory to the Commissioner) that in the provision of
services under the grant there will be appropriate cooperation
between the grantee and other public or nonprofit agencies and
organizations having special skills and experience in the provision
of services to migrant or seasonal farmworkers or their families.
``(5) Coordination with other programs.--The Commissioner shall
administer this section in coordination with other programs serving
migrant and seasonal farmworkers, including programs under title I
of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6301 et seq.), section 330 of the Public Health Service Act (42
U.S.C. 254b), the Migrant and Seasonal Agricultural Worker
Protection Act (29 U.S.C. 1801 et seq.), and the Workforce
Investment Act of 1998.
``(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.
``SEC. 305. RECREATIONAL PROGRAMS.
``(a) Grants.--
``(1) Authority.--
``(A) In general.--The Commissioner, subject to the
provisions of section 306, shall make grants to States, public
agencies, and nonprofit private organizations to pay the
Federal share of the cost of the establishment and operation of
recreation programs to provide individuals with disabilities
with recreational activities and related experiences to aid in
the employment, mobility, socialization, independence, and
community integration of such individuals.
``(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.
``(C) Design of program.--Programs and activities carried
out under this section shall be designed to demonstrate ways in
which such programs assist in maximizing the independence and
integration of individuals with disabilities.
``(2) Maximum term of grant.--A grant under this section shall
be made for a period of not more than 3 years.
``(3) Availability of nongrant resources.--
``(A) In general.--A grant may not be made to an applicant
under this section unless the applicant provides assurances
that, with respect to costs of the recreation program to be
carried out under the grant, the applicant, to the maximum
extent practicable, will make available non-Federal resources
(in cash or in-kind) to pay the non-Federal share of such
costs.
``(B) Federal share.--The Federal share of the costs of the
recreation programs carried out under this section shall be--
``(i) with respect to the first year in which
assistance is provided under a grant under this section,
100 percent;
``(ii) with respect to the second year in which
assistance is provided under a grant under this section, 75
percent; and
``(iii) with respect to the third year in which
assistance is provided under a grant under this section, 50
percent.
``(4) Application.--To be eligible to receive a grant under
this section, a State, agency, or organization shall submit an
application to the Commissioner at such time, in such manner, and
containing such information as the Commissioner may require,
including a description of--
``(A) the manner in which the findings and results of the
project to be funded under the grant, particularly information
that facilitates the replication of the results of such
projects, will be made generally available; and
``(B) the manner in which the service program funded under
the grant will be continued after Federal assistance ends.
``(5) Level of services.--Recreation programs funded under this
section shall maintain, at a minimum, the same level of services
over a 3-year project period.
``(6) Reports by grantees.--
``(A) Requirement.--The Commissioner shall require that
each recipient of a grant under this section annually prepare
and submit to the Commissioner a report concerning the results
of the activities funded under the grant.
``(B) Limitation.--The Commissioner may not make financial
assistance available to a grant recipient for a subsequent year
until the Commissioner has received and evaluated the annual
report of the recipient under subparagraph (A) for the current
year.
``(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.
``SEC. 306. MEASURING OF PROJECT OUTCOMES AND PERFORMANCE.
``The Commissioner may require that recipients of grants under this
title submit information, including data, as determined by the
Commissioner to be necessary to measure project outcomes and
performance, including any data needed to comply with the Government
Performance and Results Act.''.
SEC. 407. NATIONAL COUNCIL ON DISABILITY.
Title IV of the Rehabilitation Act of 1973 (29 U.S.C. 780 et seq.)
is amended to read as follows:
``TITLE IV--NATIONAL COUNCIL ON DISABILITY
``Establishment of National Council on Disability
``Sec. 400. (a)(1)(A) There is established within the Federal
Government a National Council on Disability (hereinafter in this title
referred to as the `National Council'), which shall be composed of
fifteen members appointed by the President, by and with the advice and
consent of the Senate.
``(B) The President shall select members of the National Council
after soliciting recommendations from representatives of--
``(i) organizations representing a broad range of individuals
with disabilities; and
``(ii) organizations interested in individuals with
disabilities.
``(C) The members of the National Council shall be individuals with
disabilities, parents or guardians of individuals with disabilities, or
other individuals who have substantial knowledge or experience relating
to disability policy or programs. The members of the National Council
shall be appointed so as to be representative of individuals with
disabilities, national organizations concerned with individuals with
disabilities, providers and administrators of services to individuals
with disabilities, individuals engaged in conducting medical or
scientific research relating to individuals with disabilities, business
concerns, and labor organizations. A majority of the members of the
National Council shall be individuals with disabilities. The members of
the National Council shall be broadly representative of minority and
other individuals and groups.
``(2) The purpose of the National Council is to promote policies,
programs, practices, and procedures that--
``(A) guarantee equal opportunity for all individuals with
disabilities, regardless of the nature or severity of the
disability; and
``(B) empower individuals with disabilities to achieve economic
self-sufficiency, independent living, and inclusion and integration
into all aspects of society.
``(b)(1) Each member of the National Council shall serve for a term
of 3 years, except that the terms of service of the members initially
appointed after the date of enactment of the Rehabilitation,
Comprehensive Services, and Developmental Disabilities Amendments of
1978 shall be (as specified by the President) for such fewer number of
years as will provide for the expiration of terms on a staggered basis.
``(2)(A) No member of the National Council may serve more than two
consecutive full terms beginning on the date of commencement of the
first full term on the Council. Members may serve after the expiration
of their terms until their successors have taken office.
``(B) As used in this paragraph, the term `full term' means a term
of 3 years.
``(3) Any member appointed to fill a vacancy occurring before the
expiration of the term for which such member's predecessor was
appointed shall be appointed only for the remainder of such term.
``(c) The President shall designate the Chairperson from among the
members appointed to the National Council. The National Council shall
meet at the call of the Chairperson, but not less often than four times
each year.
``(d) Eight members of the National Council shall constitute a
quorum and any vacancy in the National Council shall not affect its
power to function.
``Duties of National Council
``Sec. 401. (a) The National Council shall--
``(1) provide advice to the Director with respect to the
policies and conduct of the National Institute on Disability and
Rehabilitation Research, including ways to improve research
concerning individuals with disabilities and the methods of
collecting and disseminating findings of such research;
``(2) provide advice to the Commissioner with respect to the
policies of and conduct of the Rehabilitation Services
Administration;
``(3) advise the President, the Congress, the Commissioner, the
appropriate Assistant Secretary of the Department of Education, and
the Director of the National Institute on Disability and
Rehabilitation Research on the development of the programs to be
carried out under this Act;
``(4) provide advice regarding priorities for the activities of
the Interagency Disability Coordinating Council and review the
recommendations of such Council for legislative and administrative
changes to ensure that such recommendations are consistent with the
purposes of the Council to promote the full integration,
independence, and productivity of individuals with disabilities;
``(5) review and evaluate on a continuing basis--
``(A) policies, programs, practices, and procedures
concerning individuals with disabilities conducted or assisted
by Federal departments and agencies, including programs
established or assisted under this Act or under the
Developmental Disabilities Assistance and Bill of Rights Act;
and
``(B) all statutes and regulations pertaining to Federal
programs which assist such individuals with disabilities;
in order to assess the effectiveness of such policies, programs,
practices, procedures, statutes, and regulations in meeting the
needs of individuals with disabilities;
``(6) assess the extent to which such policies, programs,
practices, and procedures facilitate or impede the promotion of the
policies set forth in subparagraphs (A) and (B) of section
400(a)(2);
``(7) gather information about the implementation, effectiveness,
and impact of the Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.);
``(8) make recommendations to the President, the Congress, the
Secretary, the Director of the National Institute on Disability and
Rehabilitation Research, and other officials of Federal agencies or
other Federal entities, respecting ways to better promote the
policies set forth in section 400(a)(2);
``(9) provide to the Congress on a continuing basis advice,
recommendations, legislative proposals, and any additional
information that the National Council or the Congress deems
appropriate; and
``(10) review and evaluate on a continuing basis new and
emerging disability policy issues affecting individuals with
disabilities at the Federal, State, and local levels, and in the
private sector, including the need for and coordination of adult
services, access to personal assistance services, school reform
efforts and the impact of such efforts on individuals with
disabilities, access to health care, and policies that operate as
disincentives for the individuals to seek and retain employment.
``(b)(1) Not later than October 31, 1998, and annually thereafter,
the National Council shall prepare and submit to the President and the
appropriate committees of the Congress a report entitled `National
Disability Policy: A Progress Report'.
``(2) The report shall assess the status of the Nation in achieving
the policies set forth in section 400(a)(2), with particular focus on
the new and emerging issues impacting on the lives of individuals with
disabilities. The report shall present, as appropriate, available data
on health, housing, employment, insurance, transportation, recreation,
training, prevention, early intervention, and education. The report
shall include recommendations for policy change.
``(3) In determining the issues to focus on and the findings,
conclusions, and recommendations to include in the report, the National
Council shall seek input from the public, particularly individuals with
disabilities, representatives of organizations representing a broad
range of individuals with disabilities, and organizations and agencies
interested in individuals with disabilities.
``Compensation of National Council Members
``Sec. 402. (a) Members of the National Council shall be entitled
to receive compensation at a rate equal to the rate of pay for level 4
of the Senior Executive Service Schedule under section 5382 of title 5,
United States Code, including travel time, for each day they are
engaged in the performance of their duties as members of the National
Council.
``(b) Members of the National Council who are full-time officers or
employees of the United States shall receive no additional pay on
account of their service on the National Council except for
compensation for travel expenses as provided under subsection (c) of
this section.
``(c) While away from their homes or regular places of business in
the performance of services for the National Council, members of the
National Council shall be allowed travel expenses, including per diem
in lieu of subsistence, in the same manner as persons employed
intermittently in the Government service are allowed expenses under
section 5703 of title 5, United States Code.
``Staff of National Council
``Sec. 403. (a)(1) The Chairperson of the National Council may
appoint and remove, without regard to the provisions of title 5, United
States Code, governing appointments, the provisions of chapter 75 of
such title (relating to adverse actions), the provisions of chapter 77
of such title (relating to appeals), or the provisions of chapter 51
and subchapter III of chapter 53 of such title (relating to
classification and General Schedule pay rates), an Executive Director
to assist the National Council to carry out its duties. The Executive
Director shall be appointed from among individuals who are experienced
in the planning or operation of programs for individuals with
disabilities.
``(2) The Executive Director is authorized to hire technical and
professional employees to assist the National Council to carry out its
duties.
``(b)(1) The National Council may procure temporary and
intermittent services to the same extent as is authorized by section
3109(b) of title 5, United States Code (but at rates for individuals
not to exceed the daily equivalent of the rate of pay for level 4 of
the Senior Executive Service Schedule under section 5382 of title 5,
United States Code).
``(2) The National Council may--
``(A) accept voluntary and uncompensated services,
notwithstanding the provisions of section 1342 of title 31, United
States Code;
``(B) in the name of the Council, solicit, accept, employ, and
dispose of, in furtherance of this Act, any money or property, real
or personal, or mixed, tangible or nontangible, received by gift,
devise, bequest, or otherwise; and
``(C) enter into contracts and cooperative agreements with
Federal and State agencies, private firms, institutions, and
individuals for the conduct of research and surveys, preparation of
reports and other activities necessary to the discharge of the
Council's duties and responsibilities.
``(3) Not more than 10 per centum of the total amounts available to
the National Council in each fiscal year may be used for official
representation and reception.
``(c) The Administrator of General Services shall provide to the
National Council on a reimbursable basis such administrative support
services as the Council may request.
``(d)(1) It shall be the duty of the Secretary of the Treasury to
invest such portion of the amounts made available under subsection
(a)(2)(B) as is not, in the Secretary's judgment, required to meet
current withdrawals. Such investments may be made only in interest-
bearing obligations of the United States or in obligations guaranteed
as to both principal and interest by the United States.
``(2) The amounts described in paragraph (1), and the interest on,
and the proceeds from the sale or redemption of, the obligations
described in paragraph (1) shall be available to the National Council
to carry out this title.
``Administrative Powers of National Council
``Sec. 404. (a) The National Council may prescribe such bylaws and
rules as may be necessary to carry out its duties under this title.
``(b) The National Council may hold such hearings, sit and act at
such times and places, take such testimony, and receive such evidence
as it deems advisable.
``(c) The National Council may appoint advisory committees to
assist the National Council in carrying out its duties. The members
thereof shall serve without compensation.
``(d) The National Council may use the United States mails in the
same manner and upon the same conditions as other departments and
agencies of the United States.
``(e) The National Council may use, with the consent of the
agencies represented on the Interagency Disability Coordinating
Council, and as authorized in title V, such services, personnel,
information, and facilities as may be needed to carry out its duties
under this title, with or without reimbursement to such agencies.
``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.''.
SEC. 408. RIGHTS AND ADVOCACY.
(a) Conforming Amendments to Rights and Advocacy Provisions.--
(1) Employment.--Section 501 (29 U.S.C. 791) is amended--
(A) in the third sentence of subsection (a), by striking
``President's Committees on Employment of the Handicapped'' and
inserting ``President's Committees on Employment of People With
Disabilities''; and
(B) in subsection (e), by striking ``individualized written
rehabilitation program'' and inserting ``individualized plan
for employment''.
(2) Access board.--Section 502 (29 U.S.C. 792) is amended--
(A) in subsection (a)(1), in the sentence following
subparagraph (B), by striking ``Chairperson'' and inserting
``chairperson'';
(B) in subsection (b)--
(i) in paragraph (2), by striking ``guidelines'' and
inserting ``information'';
(ii) by striking paragraph (3) and inserting the
following:
``(3) establish and maintain--
``(A) minimum guidelines and requirements for the standards
issued pursuant to the Act commonly known as the Architectural
Barriers Act of 1968;
``(B) minimum guidelines and requirements for the standards
issued pursuant to titles II and III of the Americans with
Disabilities Act of 1990;
``(C) guidelines for accessibility of telecommunications
equipment and customer premises equipment under section 255 of
the Telecommunications Act of 1934 (47 U.S.C. 255); and
``(D) standards for accessible electronic and information
technology under section 508;'';
(iii) in paragraph (9), by striking ``; and'' and
inserting a semicolon;
(iv) in paragraph (10), by striking the period and
inserting ``; and''; and
(v) by adding at the end the following:
``(11) carry out the responsibilities specified for the Access
Board in section 508.'';
(C) in subsection (d)(1), by striking ``procedures under
this section'' and inserting ``procedures under this
subsection'';
(D) in subsection (g)(2), by striking ``Committee on
Education and Labor'' and inserting ``Committee on Education
and the Workforce'';
(E) in subsection (h)(2)(A), by striking ``paragraphs (5)
and (7)'' and inserting ``paragraphs (2) and (4)''; and
(F) in subsection (i), by striking ``fiscal years 1993
through 1997'' and inserting ``fiscal years 1999 through
2003''.
(3) Federal grants and contracts.--Section 504(a) (29 U.S.C.
794(a)) is amended in the first sentence by striking ``section
7(8)'' and inserting ``section 7(20)''.
(4) Secretarial responsibilities.--Section 506(a) (29 U.S.C.
794b(a)) is amended--
(A) by striking the second sentence and inserting the
following: ``Any concurrence of the Access Board under
paragraph (2) shall reflect its consideration of cost studies
carried out by States.''; and
(B) in the second sentence of subsection (c), by striking
``provided under this paragraph'' and inserting ``provided
under this subsection''.
(b) Electronic and Information Technology Regulations.--Section 508
(29 U.S.C. 794d) is amended to read as follows:
``SEC. 508. ELECTRONIC AND INFORMATION TECHNOLOGY.
``(a) Requirements for Federal Departments and Agencies.--
``(1) Accessibility.--
``(A) Development, procurement, maintenance, or use of
electronic and information technology.--When developing,
procuring, maintaining, or using electronic and information
technology, each Federal department or agency, including the
United States Postal Service, shall ensure, unless an undue
burden would be imposed on the department or agency, that the
electronic and information technology allows, regardless of the
type of medium of the technology--
``(i) individuals with disabilities who are Federal
employees to have access to and use of information and data
that is comparable to the access to and use of the
information and data by Federal employees who are not
individuals with disabilities; and
``(ii) individuals with disabilities who are members of
the public seeking information or services from a Federal
department or agency to have access to and use of
information and data that is comparable to the access to
and use of the information and data by such members of the
public who are not individuals with disabilities.
``(B) Alternative means efforts.--When development,
procurement, maintenance, or use of electronic and information
technology that meets the standards published by the Access
Board under paragraph (2) would impose an undue burden, the
Federal department or agency shall provide individuals with
disabilities covered by paragraph (1) with the information and
data involved by an alternative means of access that allows the
individual to use the information and data.
``(2) Electronic and information technology standards.--
``(A) In general.--Not later than 18 months after the date
of enactment of the Rehabilitation Act Amendments of 1998, the
Architectural and Transportation Barriers Compliance Board
(referred to in this section as the `Access Board'), after
consultation with the Secretary of Education, the Administrator
of General Services, the Secretary of Commerce, the Chairman of
the Federal Communications Commission, the Secretary of
Defense, and the head of any other Federal department or agency
that the Access Board determines to be appropriate, including
consultation on relevant research findings, and after
consultation with the electronic and information technology
industry and appropriate public or nonprofit agencies or
organizations, including organizations representing individuals
with disabilities, shall issue and publish standards setting
forth--
``(i) for purposes of this section, a definition of
electronic and information technology that is consistent
with the definition of information technology specified in
section 5002(3) of the Clinger-Cohen Act of 1996 (40 U.S.C.
1401(3)); and
``(ii) the technical and functional performance
criteria necessary to implement the requirements set forth
in paragraph (1).
``(B) Review and amendment.--The Access Board shall
periodically review and, as appropriate, amend the standards
required under subparagraph (A) to reflect technological
advances or changes in electronic and information technology.
``(3) Incorporation of standards.--Not later than 6 months
after the Access Board publishes the standards required under
paragraph (2), the Federal Acquisition Regulatory Council shall
revise the Federal Acquisition Regulation and each Federal
department or agency shall revise the Federal procurement policies
and directives under the control of the department or agency to
incorporate those standards. Not later than 6 months after the
Access Board revises any standards required under paragraph (2),
the Council shall revise the Federal Acquisition Regulation and
each appropriate Federal department or agency shall revise the
procurement policies and directives, as necessary, to incorporate
the revisions.
``(4) Acquisition planning.--In the event that a Federal
department or agency determines that compliance with the standards
issued by the Access Board under paragraph (2) relating to
procurement imposes an undue burden, the documentation by the
department or agency supporting the procurement shall explain why
compliance creates an undue burden.
``(5) Exemption for national security systems.--This section
shall not apply to national security systems, as that term is
defined in section 5142 of the Clinger-Cohen Act of 1996 (40 U.S.C.
1452).
``(6) Construction.--
``(A) Equipment.--In a case in which the Federal Government
provides access to the public to information or data through
electronic and information technology, nothing in this section
shall be construed to require a Federal department or agency--
``(i) to make equipment owned by the Federal Government
available for access and use by individuals with
disabilities covered by paragraph (1) at a location other
than that where the electronic and information technology
is provided to the public; or
``(ii) to purchase equipment for access and use by
individuals with disabilities covered by paragraph (1) at a
location other than that where the electronic and
information technology is provided to the public.
``(B) Software and peripheral devices.--Except as required
to comply with standards issued by the Access Board under
paragraph (2), nothing in paragraph (1) requires the
installation of specific accessibility-related software or the
attachment of a specific accessibility-related peripheral
device at a workstation of a Federal employee who is not an
individual with a disability.
``(b) Technical Assistance.--The Administrator of General Services
and the Access Board shall provide technical assistance to individuals
and Federal departments and agencies concerning the requirements of
this section.
``(c) Agency Evaluations.--Not later than 6 months after the date
of enactment of the Rehabilitation Act Amendments of 1998, the head of
each Federal department or agency shall evaluate the extent to which
the electronic and information technology of the department or agency
is accessible to and usable by individuals with disabilities described
in subsection (a)(1), compared to the access to and use of the
technology by individuals described in such subsection who are not
individuals with disabilities, and submit a report containing the
evaluation to the Attorney General.
``(d) Reports.--
``(1) Interim report.--Not later than 18 months after the date
of enactment of the Rehabilitation Act Amendments of 1998, the
Attorney General shall prepare and submit to the President a report
containing information on and recommendations regarding the extent
to which the electronic and information technology of the Federal
Government is accessible to and usable by individuals with
disabilities described in subsection (a)(1).
``(2) Biennial reports.--Not later than 3 years after the date
of enactment of the Rehabilitation Act Amendments of 1998, and
every 2 years thereafter, the Attorney General shall prepare and
submit to the President and Congress a report containing
information on and recommendations regarding the state of Federal
department and agency compliance with the requirements of this
section, including actions regarding individual complaints under
subsection (f).
``(e) Cooperation.--Each head of a Federal department or agency
(including the Access Board, the Equal Employment Opportunity
Commission, and the General Services Administration) shall provide to
the Attorney General such information as the Attorney General
determines is necessary to conduct the evaluations under subsection (c)
and prepare the reports under subsection (d).
``(f) Enforcement.--
``(1) General.--
``(A) Complaints.--Effective 2 years after the date of
enactment of the Rehabilitation Act Amendments of 1998, any
individual with a disability may file a complaint alleging that
a Federal department or agency fails to comply with subsection
(a)(1) in providing electronic and information technology.
``(B) Application.--This subsection shall apply only to
electronic and information technology that is procured by a
Federal department or agency not less than 2 years after the
date of enactment of the Rehabilitation Act Amendments of 1998.
``(2) Administrative complaints.--Complaints filed under
paragraph (1) shall be filed with the Federal department or agency
alleged to be in noncompliance. The Federal department or agency
receiving the complaint shall apply the complaint procedures
established to implement section 504 for resolving allegations of
discrimination in a federally conducted program or activity.
``(3) Civil actions.--The remedies, procedures, and rights set
forth in sections 505(a)(2) and 505(b) shall be the remedies,
procedures, and rights available to any individual with a
disability filing a complaint under paragraph (1).
``(g) Application to Other Federal Laws.--This section shall not be
construed to limit any right, remedy, or procedure otherwise available
under any provision of Federal law (including sections 501 through 505)
that provides greater or equal protection for the rights of individuals
with disabilities than this section.''.
(c) Protection and Advocacy of Individual Rights.--Section 509 (29
U.S.C. 794e) is amended to read as follows:
``SEC. 509. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.
``(a) Purpose and Construction.--
``(1) Purpose.--The purpose of this section is to support a
system in each State to protect the legal and human rights of
individuals with disabilities who--
``(A) need services that are beyond the scope of services
authorized to be provided by the client assistance program
under section 112; and
``(B)(i) are ineligible for protection and advocacy
programs under part C of the Developmental Disabilities
Assistance and Bill of Rights Act (42 U.S.C. 6041 et seq.)
because the individuals do not have a developmental disability,
as defined in section 102 of such Act (42 U.S.C. 6002); and
``(ii) are ineligible for services under the Protection and
Advocacy for Mentally Ill Individuals Act of 1986 (42 U.S.C.
10801 et seq.) because the individuals are not individuals
with mental illness, as defined in section 102 of such Act
(42 U.S.C. 10802).
``(2) Construction.--This section shall not be construed to
require the provision of protection and advocacy services that can
be provided under the Technology-Related Assistance for Individuals
With Disabilities Act of 1988 (42 U.S.C. 2201 et seq.).
``(b) Appropriations Less Than $5,500,000.--For any fiscal year in
which the amount appropriated to carry out this section is less than
$5,500,000, the Commissioner may make grants from such amount to
eligible systems within States to plan for, develop outreach strategies
for, and carry out protection and advocacy programs authorized under
this section for individuals with disabilities who meet the
requirements of subparagraphs (A) and (B) of subsection (a)(1).
``(c) Appropriations of $5,500,000 or More.--
``(1) Reservations.--
``(A) Technical assistance.--For any fiscal year in which
the amount appropriated to carry out this section equals or
exceeds $5,500,000, the Commissioner shall set aside not less
than 1.8 percent and not more than 2.2 percent of the amount to
provide training and technical assistance to the systems
established under this section.
``(B) Grant for the eligible system serving the american
indian consortium.--For any fiscal year in which the amount
appropriated to carry out this section equals or exceeds
$10,500,000, the Commissioner shall reserve a portion, and use
the portion to make a grant for the eligible system serving the
American Indian consortium. The Commission shall make the grant
in an amount of not less than $50,000 for the fiscal year.
``(2) Allotments.--For any such fiscal year, after the
reservations required by paragraph (1) have been made, the
Commissioner shall make allotments from the remainder of such
amount in accordance with paragraph (3) to eligible systems within
States to enable such systems to carry out protection and advocacy
programs authorized under this section for individuals referred to
in subsection (b).
``(3) Systems within states.--
``(A) Population basis.--Except as provided in subparagraph
(B), from such remainder for each such fiscal year, the
Commissioner shall make an allotment to the eligible system
within a State of an amount bearing the same ratio to such
remainder as the population of the State bears to the
population of all States.
``(B) Minimums.--Subject to the availability of
appropriations to carry out this section, and except as
provided in paragraph (4), the allotment to any system under
subparagraph (A) shall be not less than $100,000 or \1/3\ of 1
percent of the remainder for the fiscal year for which the
allotment is made, whichever is greater, and the allotment to
any system under this section for any fiscal year that is less
than $100,000 or \1/3\ of 1 percent of such remainder shall be
increased to the greater of the two amounts.
``(4) Systems within other jurisdictions.--
``(A) In general.--For the purposes of paragraph (3)(B),
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.--The eligible system within a jurisdiction
described in subparagraph (A) shall be allotted under paragraph
(3)(A) not less than $50,000 for the fiscal year for which the
allotment is made.
``(5) Adjustment for inflation.--For any fiscal year, beginning
in fiscal year 1999, in which the total amount appropriated to
carry out this section exceeds the total amount appropriated to
carry out this section for the preceding fiscal year, the
Commissioner shall increase each of the minimum grants or
allotments under paragraphs (1)(B), (3)(B), and (4)(B) by a
percentage that shall not exceed the percentage increase in the
total amount appropriated to carry out this section between the
preceding fiscal year and the fiscal year involved.
``(d) Proportional Reduction.--To provide minimum allotments to
systems within States (as increased under subsection (c)(5)) under
subsection (c)(3)(B), or to provide minimum allotments to systems
within States (as increased under subsection (c)(5)) under subsection
(c)(4)(B), the Commissioner shall proportionately reduce the allotments
of the remaining systems within States under subsection (c)(3), with
such adjustments as may be necessary to prevent the allotment of any
such remaining system within a State from being reduced to less than
the minimum allotment for a system within a State (as increased under
subsection (c)(5)) under subsection (c)(3)(B), or the minimum allotment
for a State (as increased under subsection (c)(5)) under subsection
(c)(4)(B), as appropriate.
``(e) Reallotment.--Whenever the Commissioner determines that any
amount of an allotment to a system within a State for any fiscal year
described in subsection (c)(1) will not be expended by such system in
carrying out the provisions of this section, the Commissioner shall
make such amount available for carrying out the provisions of this
section to one or more of the systems that the Commissioner determines
will be able to use additional amounts during such year for carrying
out such provisions. Any amount made available to a system for any
fiscal year pursuant to the preceding sentence shall, for the purposes
of this section, be regarded as an increase in the allotment of the
system (as determined under the preceding provisions of this section)
for such year.
``(f) Application.--In order to receive assistance under this
section, an eligible system shall submit an application to the
Commissioner, at such time, in such form and manner, and containing
such information and assurances as the Commissioner determines
necessary to meet the requirements of this section, including
assurances that the eligible system will--
``(1) have in effect a system to protect and advocate the
rights of individuals with disabilities;
``(2) have the same general authorities, including access to
records and program income, as are set forth in part C of the
Developmental Disabilities Assistance and Bill of Rights Act (42
U.S.C. 6041 et seq.);
``(3) have the authority to pursue legal, administrative, and
other appropriate remedies or approaches to ensure the protection
of, and advocacy for, the rights of such individuals within the
State or the American Indian consortium who are individuals
described in subsection (a)(1);
``(4) provide information on and make referrals to programs and
services addressing the needs of individuals with disabilities in
the State or the American Indian consortium;
``(5) develop a statement of objectives and priorities on an
annual basis, and provide to the public, including individuals with
disabilities and, as appropriate, the individuals' representatives,
an opportunity to comment on the objectives and priorities
established by, and activities of, the system including--
``(A) the objectives and priorities for the activities of
the system for each year and the rationale for the
establishment of such objectives and priorities; and
``(B) the coordination of programs provided through the
system under this section with the advocacy programs of the
client assistance program under section 112, the State long-
term care ombudsman program established under the Older
Americans Act of 1965 (42 U.S.C. 3001 et seq.), the
Developmental Disabilities Assistance and Bill of Rights Act
(42 U.S.C. 6000 et seq.), and the Protection and Advocacy for
Mentally Ill Individuals Act of 1986 (42 U.S.C. 10801 et seq.);
``(6) establish a grievance procedure for clients or
prospective clients of the system to ensure that individuals with
disabilities are afforded equal opportunity to access the services
of the system; and
``(7) provide assurances to the Commissioner that funds made
available under this section will be used to supplement and not
supplant the non-Federal funds that would otherwise be made
available for the purpose for which Federal funds are provided.
``(g) Carryover and Direct Payment.--
``(1) Direct payment.--Notwithstanding any other provision of
law, the Commissioner shall pay directly to any system that
complies with the provisions of this section, the amount of the
allotment of the State or the grant for the eligible system that
serves the American Indian consortium involved under this section,
unless the State or American Indian consortium provides otherwise.
``(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.
``(h) Limitation on Disclosure Requirements.--For purposes of any
audit, report, or evaluation of the performance of the program
established under this section, the Commissioner shall not require such
a program to disclose the identity of, or any other personally
identifiable information related to, any individual requesting
assistance under such program.
``(i) Administrative Cost.--In any State in which an eligible
system is located within a State agency, a State may use a portion of
any allotment under subsection (c) for the cost of the administration
of the system required by this section. Such portion may not exceed 5
percent of the allotment.
``(j) Delegation.--The Commissioner may delegate the administration
of this program to the Commissioner of the Administration on
Developmental Disabilities within the Department of Health and Human
Services.
``(k) Report.--The Commissioner shall annually prepare and submit
to the Committee on Education and the Workforce of the House of
Representatives and the Committee on Labor and Human Resources of the
Senate a report describing the types of services and activities being
undertaken by programs funded under this section, the total number of
individuals served under this section, the types of disabilities
represented by such individuals, and the types of issues being
addressed on behalf of such individuals.
``(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.
``(m) Definitions.--As used in this section:
``(1) Eligible system.--The term `eligible system' means a
protection and advocacy system that is established under part C of
the Developmental Disabilities Assistance and Bill of Rights Act
(42 U.S.C. 6041 et seq.) and that meets the requirements of
subsection (f).
``(2) American indian consortium.--The term `American Indian
consortium' means a consortium established as described in section 142
of the Developmental Disabilities Assistance and Bill of Rights Act
(42 U.S.C. 6042).''.
SEC. 409. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES.
Title VI of the Rehabilitation Act of 1973 (29 U.S.C. 795 et seq.)
is amended to read as follows:
``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES
``Short Title
``Sec. 601. This title may be cited as the `Employment
Opportunities for Individuals With Disabilities Act'.
``Part A--Projects With Industry
``Projects With Industry
``Sec. 611. (a)(1) The purpose of this part is to create and expand
job and career opportunities for individuals with disabilities in the
competitive labor market by engaging the talent and leadership of
private industry as partners in the rehabilitation process, to identify
competitive job and career opportunities and the skills needed to
perform such jobs, to create practical job and career readiness and
training programs, and to provide job placements and career
advancement.
``(2) The Commissioner, in consultation with the Secretary of Labor
and with designated State units, may award grants to individual
employers, community rehabilitation program providers, labor unions,
trade associations, Indian tribes, tribal organizations, designated
State units, and other entities to establish jointly financed Projects
With Industry to create and expand job and career opportunities for
individuals with disabilities, which projects shall--
``(A) provide for the establishment of business advisory
councils, that shall--
``(i) be comprised of--
``(I) representatives of private industry, business
concerns, and organized labor;
``(II) individuals with disabilities and
representatives of individuals with disabilities; and
``(III) a representative of the appropriate designated
State unit;
``(ii) identify job and career availability within the
community, consistent with the current and projected local
employment opportunities identified by the local workforce
investment board for the community under section 118(b)(1)(B)
of the Workforce Investment Act of 1998;
``(iii) identify the skills necessary to perform the jobs
and careers identified; and
``(iv) prescribe training programs designed to develop
appropriate job and career skills, or job placement programs
designed to identify and develop job placement and career
advancement opportunities, for individuals with disabilities in
fields related to the job and career availability identified
under clause (ii);
``(B) provide job development, job placement, and career
advancement services;
``(C) to the extent appropriate, provide for--
``(i) training in realistic work settings in order to
prepare individuals with disabilities for employment and career
advancement in the competitive market; and
``(ii) to the extent practicable, the modification of any
facilities or equipment of the employer involved that are used
primarily by individuals with disabilities, except that a
project shall not be required to provide for such modification
if the modification is required as a reasonable accommodation
under the Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.); and
``(D) provide individuals with disabilities with such support
services as may be required in order to maintain the employment and
career advancement for which the individuals have received training
under this part.
``(3)(A) An individual shall be eligible for services described in
paragraph (2) if the individual is determined to be an individual
described in section 102(a)(1), and if the determination is made in a
manner consistent with section 102(a).
``(B) Such a determination may be made by the recipient of a grant
under this part, to the extent the determination is appropriate and
available and consistent with the requirements of section 102(a).
``(4) The Commissioner shall enter into an agreement with the grant
recipient regarding the establishment of the project. Any agreement
shall be jointly developed by the Commissioner, the grant recipient,
and, to the extent practicable, the appropriate designated State unit
and the individuals with disabilities (or the individuals'
representatives) involved. Such agreements shall specify the terms of
training and employment under the project, provide for the payment by
the Commissioner of part of the costs of the project (in accordance
with subsection (c)), and contain the items required under subsection
(b) and such other provisions as the parties to the agreement consider
to be appropriate.
``(5) Any agreement shall include a description of a plan to
annually conduct a review and evaluation of the operation of the
project in accordance with standards developed by the Commissioner
under subsection (d), and, in conducting the review and evaluation, to
collect data and information of the type described in subparagraphs (A)
through (C) of section 101(a)(10), as determined to be appropriate by
the Commissioner.
``(6) The Commissioner may include, as part of agreements with
grant recipients, authority for such grant recipients to provide
technical assistance to--
``(A) assist employers in hiring individuals with disabilities;
or
``(B) improve or develop relationships between--
``(i) grant recipients or prospective grant recipients; and
``(ii) employers or organized labor; or
``(C) assist employers in understanding and meeting the
requirements of the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.) as the Act relates to employment of
individuals with disabilities.
``(b) No payment shall be made by the Commissioner under any
agreement with a grant recipient entered into under subsection (a)
unless such agreement--
``(1) provides an assurance that individuals with disabilities
placed under such agreement shall receive at least the applicable
minimum wage;
``(2) provides an assurance that any individual with a
disability placed under this part shall be afforded terms and
benefits of employment equal to terms and benefits that are
afforded to the similarly situated nondisabled co-workers of the
individual, and that such individuals with disabilities shall not
be segregated from their co-workers; and
``(3) provides an assurance that an annual evaluation report
containing information specified under subsection (a)(5) shall be
submitted as determined to be appropriate by the Commissioner.
``(c) Payments under this section with respect to any project may
not exceed 80 per centum of the costs of the project.
``(d)(1) The Commissioner shall develop standards for the
evaluation described in subsection (a)(5) and shall review and revise
the evaluation standards as necessary, subject to paragraph (2).
``(2) In revising the standards for evaluation to be used by the
grant recipients, the Commissioner shall obtain and consider
recommendations for such standards from State vocational rehabilitation
agencies, current and former grant recipients, professional
organizations representing business and industry, organizations
representing individuals with disabilities, individuals served by grant
recipients, organizations representing community rehabilitation program
providers, and labor organizations.
``(e)(1)(A) A grant may be awarded under this section for a period
of up to 5 years and such grant may be renewed.
``(B) Grants under this section shall be awarded on a competitive
basis. To be eligible to receive such a grant, a prospective grant
recipient shall submit an application to the Commissioner at such time,
in such manner, and containing such information as the Commissioner may
require.
``(2) The Commissioner shall, to the extent practicable, ensure an
equitable distribution of payments made under this section among the
States. To the extent funds are available, the Commissioner shall award
grants under this section to new projects that will serve individuals
with disabilities in States, portions of States, Indian tribes, or
tribal organizations, that are currently unserved or underserved by
projects.
``(f)(1) The Commissioner shall, as necessary, develop and publish
in the Federal Register, in final form, indicators of what constitutes
minimum compliance consistent with the evaluation standards under
subsection (d)(1).
``(2) Each grant recipient shall report to the Commissioner at the
end of each project year the extent to which the grant recipient is in
compliance with the evaluation standards.
``(3)(A) The Commissioner shall annually conduct onsite compliance
reviews of at least 15 percent of grant recipients. The Commissioner
shall select grant recipients for review on a random basis.
``(B) The Commissioner shall use the indicators in determining
compliance with the evaluation standards.
``(C) The Commissioner shall ensure that at least one member of a
team conducting such a review shall be an individual who--
``(i) is not an employee of the Federal Government; and
``(ii) has experience or expertise in conducting projects.
``(D) The Commissioner shall ensure that--
``(i) a representative of the appropriate designated State unit
shall participate in the review; and
``(ii) no person shall participate in the review of a grant
recipient if--
``(I) the grant recipient provides any direct financial
benefit to the reviewer; or
``(II) participation in the review would give the
appearance of a conflict of interest.
``(4) In making a determination concerning any subsequent grant
under this section, the Commissioner shall consider the past
performance of the applicant, if applicable. The Commissioner shall use
compliance indicators developed under this subsection that are
consistent with program evaluation standards developed under subsection
(d) to assess minimum project performance for purposes of making
continuation awards in the third, fourth, and fifth years.
``(5) Each fiscal year the Commissioner shall include in the annual
report to Congress required by section 13 an analysis of the extent to
which grant recipients have complied with the evaluation standards. The
Commissioner may identify individual grant recipients in the analysis.
In addition, the Commissioner shall report the results of onsite
compliance reviews, identifying individual grant recipients.
``(g) The Commissioner may provide, directly or by way of grant,
contract, or cooperative agreement, technical assistance to--
``(1) entities conducting projects for the purpose of assisting
such entities in--
``(A) the improvement of or the development of
relationships with private industry or labor; or
``(B) the improvement of relationships with State
vocational rehabilitation agencies; and
``(2) entities planning the development of new projects.
``(h) As used in this section:
``(1) The term `agreement' means an agreement described in
subsection (a)(4).
``(2) The term `project' means a Project With Industry
established under subsection (a)(2).
``(3) The term `grant recipient' means a recipient of a grant
under subsection (a)(2).
``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.
``Part B--Supported Employment Services for Individuals With the Most
Significant Disabilities
``Purpose
``Sec. 621. It is the purpose of this part to authorize allotments,
in addition to grants for vocational rehabilitation services under
title I, to assist States in developing collaborative programs with
appropriate entities to provide supported employment services for
individuals with the most significant disabilities to enable such
individuals to achieve the employment outcome of supported employment.
``Allotments
``Sec. 622. (a) In General.--
``(1) States.--The Secretary shall allot the sums appropriated
for each fiscal year to carry out this part among the States on the
basis of relative population of each State, except that--
``(A) no State shall receive less than $250,000, or \1/3\
of 1 percent of the sums appropriated for the fiscal year for
which the allotment is made, whichever is greater; and
``(B) if the sums appropriated to carry out this part for
the fiscal year exceed by $1,000,000 or more the sums
appropriated to carry out this part in fiscal year 1992, no
State shall receive less than $300,000, or \1/3\ of 1 percent
of the sums appropriated for the fiscal year for which the
allotment is made, whichever is greater.
``(2) Certain territories.--
``(A) In general.--For the purposes of this subsection,
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 not less than one-eighth of
one percent of the amounts appropriated for the fiscal year for
which the allotment is made.
``(b) Reallotment.--Whenever the Commissioner determines that any
amount of an allotment to a State for any fiscal year will not be
expended by such State for carrying out the provisions of this part,
the Commissioner shall make such amount available for carrying out the
provisions of this part to one or more of the States that the
Commissioner determines will be able to use additional amounts during
such year for carrying out such provisions. Any amount made available
to a State for any fiscal year pursuant to the preceding sentence
shall, for the purposes of this section, be regarded as an increase in
the allotment of the State (as determined under the preceding
provisions of this section) for such year.
``Availability of Services
``Sec. 623. Funds provided under this part may be used to provide
supported employment services to individuals who are eligible under
this part. Funds provided under this part, or title I, may not be used
to provide extended services to individuals who are eligible under this
part or title I.
``Eligibility
``Sec. 624. An individual shall be eligible under this part to
receive supported employment services authorized under this Act if--
``(1) the individual is eligible for vocational rehabilitation
services;
``(2) the individual is determined to be an individual with a
most significant disability; and
``(3) a comprehensive assessment of rehabilitation needs of the
individual described in section 7(2)(B), including an evaluation of
rehabilitation, career, and job needs, identifies supported
employment as the appropriate employment outcome for the
individual.
``State Plan
``Sec. 625. (a) State Plan Supplements.--To be eligible for an
allotment under this part, a State shall submit to the Commissioner, as
part of the State plan under section 101, a State plan supplement for
providing supported employment services authorized under this Act to
individuals who are eligible under this Act to receive the services.
Each State shall make such annual revisions in the plan supplement as
may be necessary.
``(b) Contents.--Each such plan supplement shall--
``(1) designate each designated State agency as the agency to
administer the program assisted under this part;
``(2) summarize the results of the comprehensive, statewide
assessment conducted under section 101(a)(15)(A)(i), with respect
to the rehabilitation needs of individuals with significant
disabilities and the need for supported employment services,
including needs related to coordination;
``(3) describe the quality, scope, and extent of supported
employment services authorized under this Act to be provided to
individuals who are eligible under this Act to receive the services
and specify the goals and plans of the State with respect to the
distribution of funds received under section 622;
``(4) demonstrate evidence of the efforts of the designated
State agency to identify and make arrangements (including entering
into cooperative agreements) with other State agencies and other
appropriate entities to assist in the provision of supported
employment services;
``(5) demonstrate evidence of the efforts of the designated
State agency to identify and make arrangements (including entering
into cooperative agreements) with other public or nonprofit
agencies or organizations within the State, employers, natural
supports, and other entities with respect to the provision of
extended services;
``(6) provide assurances that--
``(A) funds made available under this part will only be
used to provide supported employment services authorized under
this Act to individuals who are eligible under this part to
receive the services;
``(B) the comprehensive assessments of individuals with
significant disabilities conducted under section 102(b)(1) and
funded under title I will include consideration of supported
employment as an appropriate employment outcome;
``(C) an individualized plan for employment, as required by
section 102, will be developed and updated using funds under
title I in order to--
``(i) specify the supported employment services to be
provided;
``(ii) specify the expected extended services needed;
and
``(iii) identify the source of extended services, which
may include natural supports, or to the extent that it is
not possible to identify the source of extended services at
the time the individualized plan for employment is
developed, a statement describing the basis for concluding
that there is a reasonable expectation that such sources
will become available;
``(D) the State will use funds provided under this part
only to supplement, and not supplant, the funds provided under
title I, in providing supported employment services specified
in the individualized plan for employment;
``(E) services provided under an individualized plan for
employment will be coordinated with services provided under
other individualized plans established under other Federal or
State programs;
``(F) to the extent jobs skills training is provided, the
training will be provided on site; and
``(G) supported employment services will include placement
in an integrated setting for the maximum number of hours
possible based on the unique strengths, resources, priorities,
concerns, abilities, capabilities, interests, and informed
choice of individuals with the most significant disabilities;
``(7) provide assurances that the State agencies designated
under paragraph (1) will expend not more than 5 percent of the
allotment of the State under this part for administrative costs of
carrying out this part; and
``(8) contain such other information and be submitted in such
manner as the Commissioner may require.
``Restriction
``Sec. 626. Each State agency designated under section 625(b)(1)
shall collect the information required by section 101(a)(10) separately
for eligible individuals receiving supported employment services under
this part and for eligible individuals receiving supported employment
services under title I.
``Savings Provision
``Sec. 627. (a) Supported Employment Services.--Nothing in this Act
shall be construed to prohibit a State from providing supported
employment services in accordance with the State plan submitted under
section 101 by using funds made available through a State allotment
under section 110.
``(b) Postemployment Services.--Nothing in this part shall be
construed to prohibit a State from providing discrete postemployment
services in accordance with the State plan submitted under section 101
by using funds made available through a State allotment under section
110 to an individual who is eligible under this part.
``Authorization of Appropriations
``Sec. 628. 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.''.
SEC. 410. INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT LIVING.
Title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796 et seq.)
is amended to read as follows:
``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT LIVING
``CHAPTER 1--INDIVIDUALS WITH SIGNIFICANT DISABILITIES
``PART A--GENERAL PROVISIONS
``SEC. 701. PURPOSE.
``The purpose of this chapter is to promote a philosophy of
independent living, including a philosophy of consumer control, peer
support, self-help, self-determination, equal access, and individual
and system advocacy, in order to maximize the leadership, empowerment,
independence, and productivity of individuals with disabilities, and
the integration and full inclusion of individuals with disabilities
into the mainstream of American society, by--
``(1) providing financial assistance to States for providing,
expanding, and improving the provision of independent living
services;
``(2) providing financial assistance to develop and support
statewide networks of centers for independent living; and
``(3) providing financial assistance to States for improving
working relationships among State independent living rehabilitation
service programs, centers for independent living, Statewide
Independent Living Councils established under section 705, State
vocational rehabilitation programs receiving assistance under title
I, State programs of supported employment services receiving
assistance under part B of title VI, client assistance programs
receiving assistance under section 112, programs funded under other
titles of this Act, programs funded under other Federal law, and
programs funded through non-Federal sources.
``SEC. 702. DEFINITIONS.
``As used in this chapter:
``(1) Center for independent living.--The term `center for
independent living' means a consumer-controlled, community-based,
cross-disability, nonresidential private nonprofit agency that--
``(A) is designed and operated within a local community by
individuals with disabilities; and
``(B) provides an array of independent living services.
``(2) Consumer control.--The term `consumer control' means,
with respect to a center for independent living, that the center
vests power and authority in individuals with disabilities.
``SEC. 703. ELIGIBILITY FOR RECEIPT OF SERVICES.
``Services may be provided under this chapter to any individual
with a significant disability, as defined in section 7(21)(B).
``SEC. 704. STATE PLAN.
``(a) In General.--
``(1) Requirement.--To be eligible to receive financial
assistance under this chapter, a State shall submit to the
Commissioner, and obtain approval of, a State plan containing such
provisions as the Commissioner may require, including, at a
minimum, the provisions required in this section.
``(2) Joint development.--The plan under paragraph (1) shall be
jointly developed and signed by--
``(A) the director of the designated State unit; and
``(B) the chairperson of the Statewide Independent Living
Council, acting on behalf of and at the direction of the
Council.
``(3) Periodic review and revision.--The plan shall provide for
the review and revision of the plan, not less than once every 3
years, to ensure the existence of appropriate planning, financial
support and coordination, and other assistance to appropriately
address, on a statewide and comprehensive basis, needs in the State
for--
``(A) the provision of State independent living services;
``(B) the development and support of a statewide network of
centers for independent living; and
``(C) working relationships between--
``(i) programs providing independent living services
and independent living centers; and
``(ii) the vocational rehabilitation program
established under title I, and other programs providing
services for individuals with disabilities.
``(4) Date of submission.--The State shall submit the plan to
the Commissioner 90 days before the completion date of the
preceding plan. If a State fails to submit such a plan that
complies with the requirements of this section, the Commissioner
may withhold financial assistance under this chapter until such
time as the State submits such a plan.
``(b) Statewide Independent Living Council.--The plan shall provide
for the establishment of a Statewide Independent Living Council in
accordance with section 705.
``(c) Designation of State Unit.--The plan shall designate the
designated State unit of such State as the agency that, on behalf of
the State, shall--
``(1) receive, account for, and disburse funds received by the
State under this chapter based on the plan;
``(2) provide administrative support services for a program
under part B, and a program under part C in a case in which the
program is administered by the State under section 723;
``(3) keep such records and afford such access to such records
as the Commissioner finds to be necessary with respect to the
programs; and
``(4) submit such additional information or provide such
assurances as the Commissioner may require with respect to the
programs.
``(d) Objectives.--The plan shall--
``(1) specify the objectives to be achieved under the plan and
establish timelines for the achievement of the objectives; and
``(2) explain how such objectives are consistent with and
further the purpose of this chapter.
``(e) Independent Living Services.--The plan shall provide that the
State will provide independent living services under this chapter to
individuals with significant disabilities, and will provide the
services to such an individual in accordance with an independent living
plan mutually agreed upon by an appropriate staff member of the service
provider and the individual, unless the individual signs a waiver
stating that such a plan is unnecessary.
``(f) Scope and Arrangements.--The plan shall describe the extent
and scope of independent living services to be provided under this
chapter to meet such objectives. If the State makes arrangements, by
grant or contract, for providing such services, such arrangements shall
be described in the plan.
``(g) Network.--The plan shall set forth a design for the
establishment of a statewide network of centers for independent living
that comply with the standards and assurances set forth in section 725.
``(h) Centers.--In States in which State funding for centers for
independent living equals or exceeds the amount of funds allotted to
the State under part C, as provided in section 723, the plan shall
include policies, practices, and procedures governing the awarding of
grants to centers for independent living and oversight of such centers
consistent with section 723.
``(i) Cooperation, Coordination, and Working Relationships Among
Various Entities.--The plan shall set forth the steps that will be
taken to maximize the cooperation, coordination, and working
relationships among--
``(1) the independent living rehabilitation service program,
the Statewide Independent Living Council, and centers for
independent living; and
``(2) the designated State unit, other State agencies
represented on such Council, other councils that address the needs
of specific disability populations and issues, and other public and
private entities determined to be appropriate by the Council.
``(j) Coordination of Services.--The plan shall describe how
services funded under this chapter will be coordinated with, and
complement, other services, in order to avoid unnecessary duplication
with other Federal, State, and local programs.
``(k) Coordination Between Federal and State Sources.--The plan
shall describe efforts to coordinate Federal and State funding for
centers for independent living and independent living services.
``(l) Outreach.--With respect to services and centers funded under
this chapter, the plan shall set forth steps to be taken regarding
outreach to populations that are unserved or underserved by programs
under this title, including minority groups and urban and rural
populations.
``(m) Requirements.--The plan shall provide satisfactory assurances
that all recipients of financial assistance under this chapter will--
``(1) notify all individuals seeking or receiving services
under this chapter about the availability of the client assistance
program under section 112, the purposes of the services provided
under such program, and how to contact such program;
``(2) take affirmative action to employ and advance in
employment qualified individuals with disabilities on the same
terms and conditions required with respect to the employment of
such individuals under the provisions of section 503;
``(3) adopt such fiscal control and fund accounting procedures
as may be necessary to ensure the proper disbursement of and
accounting for funds paid to the State under this chapter;
``(4)(A) maintain records that fully disclose--
``(i) the amount and disposition by such recipient of the
proceeds of such financial assistance;
``(ii) the total cost of the project or undertaking in
connection with which such financial assistance is given or
used; and
``(iii) the amount of that portion of the cost of the
project or undertaking supplied by other sources;
``(B) maintain such other records as the Commissioner
determines to be appropriate to facilitate an effective audit;
``(C) afford such access to records maintained under
subparagraphs (A) and (B) as the Commissioner determines to be
appropriate; and
``(D) submit such reports with respect to such records as the
Commissioner determines to be appropriate;
``(5) provide access to the Commissioner and the Comptroller
General or any of their duly authorized representatives, for the
purpose of conducting audits and examinations, of any books,
documents, papers, and records of the recipients that are pertinent
to the financial assistance received under this chapter; and
``(6) provide for public hearings regarding the contents of the
plan during both the formulation and review of the plan.
``(n) Evaluation.--The plan shall establish a method for the
periodic evaluation of the effectiveness of the plan in meeting the
objectives established in subsection (d), including evaluation of
satisfaction by individuals with disabilities.
``SEC. 705. STATEWIDE INDEPENDENT LIVING COUNCIL.
``(a) Establishment.--To be eligible to receive financial
assistance under this chapter, each State shall establish a Statewide
Independent Living Council (referred to in this section as the
`Council'). The Council shall not be established as an entity within a
State agency.
``(b) Composition and Appointment.--
``(1) Appointment.--Members of the Council shall be appointed
by the Governor. The Governor shall select members after soliciting
recommendations from representatives of organizations representing
a broad range of individuals with disabilities and organizations
interested in individuals with disabilities.
``(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.
``(3) Additional members.--The Council may include--
``(A) other representatives from centers for independent
living;
``(B) parents and guardians of individuals with
disabilities;
``(C) advocates of and for individuals with disabilities;
``(D) representatives from private businesses;
``(E) representatives from organizations that provide
services for individuals with disabilities; and
``(F) other appropriate individuals.
``(4) Qualifications.--
``(A) In general.--The Council shall be composed of
members--
``(i) who provide statewide representation;
``(ii) who represent a broad range of individuals with
disabilities from diverse backgrounds;
``(iii) who are knowledgeable about centers for
independent living and independent living services; and
``(iv) a majority of whom are persons who are--
``(I) individuals with disabilities described in
section 7(20)(B); and
``(II) not employed by any State agency or center
for independent living.
``(B) Voting members.--A majority of the voting members of
the Council shall be--
``(i) individuals with disabilities described in
section 7(20)(B); and
``(ii) not employed by any State agency or center for
independent living.
``(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 governor.--In States in which the
Governor does not have veto power pursuant to State law, the
Governor 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.
``(6) Terms of appointment.--
``(A) Length of term.--Each member of the Council shall
serve for a term of 3 years, except that--
``(i) a member appointed to fill a vacancy occurring
prior to the expiration of the term for which a predecessor
was appointed, shall be appointed for the remainder of such
term; and
``(ii) the terms of service of the members initially
appointed shall be (as specified by the Governor) for such
fewer number of years as will provide for the expiration of
terms on a staggered basis.
``(B) Number of terms.--No member of the Council may serve
more than two consecutive full terms.
``(7) Vacancies.--
``(A) In general.--Except as provided in subparagraph (B),
any vacancy occurring in the membership of the Council shall be
filled in the same manner as the original appointment. The
vacancy shall not affect the power of the remaining members to
execute the duties of the Council.
``(B) Delegation.--The Governor may delegate the authority
to fill such a vacancy to the remaining voting members of the
Council after making the original appointment.
``(c) Duties.--The Council shall--
``(1) jointly develop and sign (in conjunction with the
designated State unit) the State plan required in section 704;
``(2) monitor, review, and evaluate the implementation of the
State plan;
``(3) coordinate activities with the State Rehabilitation
Council established under section 105, if the State has such a
Council, or the commission described in section 101(a)(21)(A), if
the State has such a commission, and councils that address the
needs of specific disability populations and issues under other
Federal law;
``(4) ensure that all regularly scheduled meetings of the
Statewide Independent Living Council are open to the public and
sufficient advance notice is provided; and
``(5) submit to the Commissioner such periodic reports as the
Commissioner may reasonably request, and keep such records, and
afford such access to such records, as the Commissioner finds
necessary to verify such reports.
``(d) Hearings and Forums.--The Council is authorized to hold such
hearings and forums as the Council may determine to be necessary to
carry out the duties of the Council.
``(e) Plan.--
``(1) In general.--The Council shall prepare, in conjunction
with the designated State unit, a plan for the provision of such
resources, including such staff and personnel, as may be necessary
and sufficient to carry out the functions of the Council under this
section, with funds made available under this chapter, and under
section 110 (consistent with section 101(a)(18)), and from other
public and private sources. The resource plan shall, to the maximum
extent possible, rely on the use of resources in existence during
the period of implementation of the plan.
``(2) Supervision and evaluation.--Each Council shall,
consistent with State law, supervise and evaluate such staff and
other personnel as may be necessary to carry out the functions of
the Council under this section.
``(3) Conflict of interest.--While assisting the Council in
carrying out its duties, staff and other personnel shall not be
assigned duties by the designated State agency or any other agency
or office of the State, that would create a conflict of interest.
``(f) Compensation and Expenses.--The Council may use such
resources to reimburse members of the Council for reasonable and
necessary expenses of attending Council meetings and performing Council
duties (including child care and personal assistance services), and to
pay compensation to a member of the Council, if such member is not
employed or must forfeit wages from other employment, for each day the
member is engaged in performing Council duties.
``SEC. 706. RESPONSIBILITIES OF THE COMMISSIONER.
``(a) Approval of State Plans.--
``(1) In general.--The Commissioner shall approve any State
plan submitted under section 704 that the Commissioner determines
meets the requirements of section 704, and shall disapprove any
such plan that does not meet such requirements, as soon as
practicable after receiving the plan. Prior to such disapproval,
the Commissioner shall notify the State of the intention to
disapprove the plan, and shall afford such State reasonable notice
and opportunity for a hearing.
``(2) Procedures.--
``(A) In general.--Except as provided in subparagraph (B),
the provisions of subsections (c) and (d) of section 107 shall
apply to any State plan submitted to the Commissioner under
section 704.
``(B) Application.--For purposes of the application
described in subparagraph (A), all references in such
provisions--
``(i) to the Secretary shall be deemed to be references
to the Commissioner; and
``(ii) to section 101 shall be deemed to be references
to section 704.
``(b) Indicators.--Not later than October 1, 1993, the Commissioner
shall develop and publish in the Federal Register indicators of minimum
compliance consistent with the standards set forth in section 725.
``(c) Onsite Compliance Reviews.--
``(1) Reviews.--The Commissioner shall annually conduct onsite
compliance reviews of at least 15 percent of the centers for
independent living that receive funds under section 722 and shall
periodically conduct such a review of each such center. The
Commissioner shall annually conduct onsite compliance reviews of at
least one-third of the designated State units that receive funding
under section 723, and, to the extent necessary to determine the
compliance of such a State unit with subsections (f) and (g) of
section 723, centers that receive funding under section 723 in such
State. The Commissioner shall select the centers and State units
described in this paragraph for review on a random basis.
``(2) Qualifications of employees conducting reviews.--The
Commissioner shall--
``(A) to the maximum extent practicable, carry out such a
review by using employees of the Department who are
knowledgeable about the provision of independent living
services;
``(B) ensure that the employee of the Department with
responsibility for supervising such a review shall have such
knowledge; and
``(C) ensure that at least one member of a team conducting
such a review shall be an individual who--
``(i) is not a government employee; and
``(ii) has experience in the operation of centers for
independent living.
``(d) Reports.--The Commissioner shall include, in the annual
report required under section 13, information on the extent to which
centers for independent living receiving funds under part C have
complied with the standards and assurances set forth in section 725.
The Commissioner may identify individual centers for independent living
in the analysis. The Commissioner shall report the results of onsite
compliance reviews, identifying individual centers for independent
living and other recipients of assistance under this chapter.
``PART B--INDEPENDENT LIVING SERVICES
``SEC. 711. ALLOTMENTS.
``(a) In General.--
``(1) States.--
``(A) Population basis.--Except as provided in
subparagraphs (B) and (C), from sums appropriated for each
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
sums 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 an
allotment made to the State for fiscal year 1992 under part A
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), the allotment to any State under
subparagraph (A) shall be not less than $275,000 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 $275,000 or \1/3\ of 1 percent of such sums
shall be increased to the greater of the two amounts.
``(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 amounts made available for
purposes of this part 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.
``(b) Proportional Reduction.--To provide allotments to States in
accordance with subsection (a)(1)(B), to provide minimum allotments to
States (as increased under subsection (a)(3)) under subsection
(a)(1)(C), or to provide minimum allotments to States under subsection
(a)(2)(B), the Commissioner shall proportionately reduce the allotments
of the remaining States under subsection (a)(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
subsection (a)(1)(B).
``(c) Reallotment.--Whenever the Commissioner determines that any
amount of an allotment to a State for any fiscal year will not be
expended by such State in carrying out the provisions of this part, the
Commissioner shall make such amount available for carrying out the
provisions of this part to one or more of the States that the
Commissioner determines will be able to use additional amounts during
such year for carrying out such provisions. Any amount made available
to a State for any fiscal year pursuant to the preceding sentence
shall, for the purposes of this section, be regarded as an increase in
the allotment of the State (as determined under the preceding
provisions of this section) for such year.
``SEC. 712. PAYMENTS TO STATES FROM ALLOTMENTS.
``(a) Payments.--From the allotment of each State for a fiscal year
under section 711, the State shall be paid the Federal share of the
expenditures incurred during such year under its State plan approved
under section 706. Such payments may be made (after necessary
adjustments on account of previously made overpayments or
underpayments) in advance or by way of reimbursement, and in such
installments and on such conditions as the Commissioner may determine.
``(b) Federal Share.--
``(1) In general.--The Federal share with respect to any State
for any fiscal year shall be 90 percent of the expenditures
incurred by the State during such year under its State plan
approved under section 706.
``(2) Non-federal share.--The non-Federal share of the cost of
any project that receives assistance through an allotment under
this part may be provided in cash or in kind, fairly evaluated,
including plant, equipment, or services.
``SEC. 713. AUTHORIZED USES OF FUNDS.
``The State may use funds received under this part to provide the
resources described in section 705(e), relating to the Statewide
Independent Living Council, and may use funds received under this
part--
``(1) to provide independent living services to individuals
with significant disabilities;
``(2) to demonstrate ways to expand and improve independent
living services;
``(3) to support the operation of centers for independent
living that are in compliance with the standards and assurances set
forth in subsections (b) and (c) of section 725;
``(4) to support activities to increase the capacities of
public or nonprofit agencies and organizations and other entities
to develop comprehensive approaches or systems for providing
independent living services;
``(5) to conduct studies and analyses, gather information,
develop model policies and procedures, and present information,
approaches, strategies, findings, conclusions, and recommendations
to Federal, State, and local policymakers in order to enhance
independent living services for individuals with disabilities;
``(6) to train individuals with disabilities and individuals
providing services to individuals with disabilities and other
persons regarding the independent living philosophy; and
``(7) to provide outreach to populations that are unserved or
underserved by programs under this title, including minority groups
and urban and rural populations.
``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.
``PART C--CENTERS FOR INDEPENDENT LIVING
``SEC. 721. PROGRAM AUTHORIZATION.
``(a) In General.--From the funds appropriated for fiscal year 1999
and for each subsequent fiscal year to carry out this part, the
Commissioner shall allot such sums as may be necessary to States and
other entities in accordance with subsections (b) through (d).
``(b) Training.--
``(1) Grants; contracts; other arrangements.--For any fiscal
year in which the funds appropriated to carry out this part exceed
the funds appropriated to carry out this part for fiscal year 1993,
the Commissioner shall first reserve from such excess, to provide
training and technical assistance to eligible agencies, centers for
independent living, and Statewide Independent Living Councils for
such fiscal year, not less than 1.8 percent, and not more than 2
percent, of the funds appropriated to carry out this part for the
fiscal year involved.
``(2) Allocation.--From the funds reserved under paragraph (1),
the Commissioner shall make grants to, and enter into contracts and
other arrangements with, entities that have experience in the
operation of centers for independent living to provide such
training and technical assistance with respect to planning,
developing, conducting, administering, and evaluating centers for
independent living.
``(3) Funding priorities.--The Commissioner shall conduct a
survey of Statewide Independent Living Councils and centers for
independent living regarding training and technical assistance
needs in order to determine funding priorities for such grants,
contracts, and other arrangements.
``(4) Review.--To be eligible to receive a grant or enter into
a contract or other arrangement under this subsection, such an
entity shall submit an application to the Commissioner at such
time, in such manner, and containing a proposal to provide such
training and technical assistance, and containing such additional
information as the Commissioner may require. The Commissioner shall
provide for peer review of grant applications by panels that
include persons who are not government employees and who have
experience in the operation of centers for independent living.
``(5) Prohibition on combined funds.--No funds reserved by the
Commissioner under this subsection 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.
``(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).
``(d) Reallotment.--Whenever the Commissioner determines that any
amount of an allotment to a State for any fiscal year will not be
expended by such State for carrying out the provisions of this part,
the Commissioner shall make such amount available for carrying out the
provisions of this part to one or more of the States that the
Commissioner determines will be able to use additional amounts during
such year for carrying out such provisions. Any amount made available
to a State for any fiscal year pursuant to the preceding sentence
shall, for the purposes of this section, be regarded as an increase in
the allotment of the State (as determined under the preceding
provisions of this section) for such year.
``SEC. 722. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH
FEDERAL FUNDING EXCEEDS STATE FUNDING.
``(a) Establishment.--
``(1) In general.--Unless the director of a designated State
unit awards grants under section 723 to eligible agencies in a
State for a fiscal year, the Commissioner shall award grants under
this section to such eligible agencies for such fiscal year from
the amount of funds allotted to the State under subsection (c) or
(d) of section 721 for such year.
``(2) Grants.--The Commissioner shall award such grants, from
the amount of funds so allotted, to such eligible agencies for the
planning, conduct, administration, and evaluation of centers for
independent living that comply with the standards and assurances
set forth in section 725.
``(b) Eligible Agencies.--In any State in which the Commissioner
has approved the State plan required by section 704, the Commissioner
may make a grant under this section to any eligible agency that--
``(1) has the power and authority to carry out the purpose of
this part and perform the functions set forth in section 725 within
a community and to receive and administer funds under this part,
funds and contributions from private or public sources that may be
used in support of a center for independent living, and funds from
other public and private programs;
``(2) is determined by the Commissioner to be able to plan,
conduct, administer, and evaluate a center for independent living
consistent with the standards and assurances set forth in section
725; and
``(3) submits an application to the Commissioner at such time,
in such manner, and containing such information as the Commissioner
may require.
``(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, unless the Commissioner makes a finding that the
agency involved fails to meet program and fiscal standards and
assurances set forth in section 725.
``(d) New Centers for Independent Living.--
``(1) In general.--If there is no center for independent living
serving a region of the State or a region is underserved, and the
increase in the allotment of the State is sufficient to support an
additional center for independent living in the State, the
Commissioner may award a grant under this section to the most
qualified applicant proposing to serve such region, consistent with
the provisions in the State plan setting forth the design of the
State for establishing a statewide network of centers for
independent living.
``(2) Selection.--In selecting from among applicants for a
grant under this section for a new center for independent living,
the Commissioner--
``(A) shall consider comments regarding the application, if
any, by the Statewide Independent Living Council in the State
in which the applicant is located;
``(B) shall consider the ability of each such applicant to
operate a center for independent living based on--
``(i) evidence of the need for such a center;
``(ii) any past performance of such applicant in
providing services comparable to independent living
services;
``(iii) the plan for satisfying or demonstrated success
in satisfying the standards and the assurances set forth in
section 725;
``(iv) the quality of key personnel and the involvement
of individuals with significant disabilities;
``(v) budgets and cost-effectiveness;
``(vi) an evaluation plan; and
``(vii) the ability of such applicant to carry out the
plans; and
``(C) shall give priority to applications from applicants
proposing to serve geographic areas within each State that are
currently unserved or underserved by independent living
programs, consistent with the provisions of the State plan
submitted under section 704 regarding establishment of a
statewide network of centers for independent living.
``(3) Current centers.--Notwithstanding paragraphs (1) and (2),
a center for independent living that receives assistance under part
B for a fiscal year shall be eligible for a grant for the
subsequent fiscal year under this subsection.
``(e) Order of Priorities.--The Commissioner shall be guided by the
following order of priorities in allocating funds among centers for
independent living within a State, to the extent funds are available:
``(1) The Commissioner shall support existing centers for
independent living, as described in subsection (c), that comply
with the standards and assurances set forth in section 725, at the
level of funding for the previous year.
``(2) The Commissioner shall provide for a cost-of-living
increase for such existing centers for independent living.
``(3) The Commissioner shall fund new centers for independent
living, as described in subsection (d), that comply with the
standards and assurances set forth in section 725.
``(f) Nonresidential Agencies.--A center that provides or manages
residential housing after October 1, 1994, shall not be considered to
be an eligible agency under this section.
``(g) Review.--
``(1) In general.--The Commissioner shall periodically review
each center receiving funds under this section to determine whether
such center is in compliance with the standards and assurances set
forth in section 725. If the Commissioner determines that any
center receiving funds under this section is not in compliance with
the standards and assurances set forth in section 725, the
Commissioner shall immediately notify such center that it is out of
compliance.
``(2) Enforcement.--The Commissioner shall terminate all funds
under this section to such center 90 days after the date of such
notification unless the center submits a plan to achieve compliance
within 90 days of such notification and such plan is approved by
the Commissioner.
``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.--The director of a designated
State unit, as provided in paragraph (2), or the
Commissioner, as provided in paragraph (3), shall award
grants under this section for an initial fiscal year if the
Commissioner determines that the amount of State funds that
were earmarked by a State for a preceding fiscal year to
support the general operation of centers for independent
living meeting the requirements of this part equaled or
exceeded the amount of funds allotted to the State under
subsection (c) or (d) of section 721 for such year.
``(ii) Grants.--The director or the Commissioner, as
appropriate, shall award such grants, from the amount of
funds so allotted for the initial fiscal year, to eligible
agencies in the State for the planning, conduct,
administration, and evaluation of centers for independent
living that comply with the standards and assurances set
forth in section 725.
``(iii) Regulation.--The Commissioner shall by
regulation specify the preceding fiscal year with respect
to which the Commissioner will make the determinations
described in clause (i) and subparagraph (B), making such
adjustments as may be necessary to accommodate State
funding cycles such as 2-year funding cycles or State
fiscal years that do not coincide with the Federal fiscal
year.
``(B) Subsequent years.--For each year subsequent to the
initial fiscal year described in subparagraph (A), the director
of the designated State unit shall continue to have the
authority to award such grants under this section if the
Commissioner determines that the State continues to earmark the
amount of State funds described in subparagraph (A)(i). If the
State does not continue to earmark such an amount for a fiscal
year, the State shall be ineligible to make grants under this
section after a final year following such fiscal year, as
defined in accordance with regulations established by the
Commissioner, and for each subsequent fiscal year.
``(2) Grants by designated state units.--In order for the
designated State unit to be eligible to award the grants described
in paragraph (1) and carry out this section for a fiscal year with
respect to a State, the designated State agency shall submit an
application to the Commissioner at such time, and in such manner as
the Commissioner may require, including information about the
amount of State funds described in paragraph (1) for the preceding
fiscal year. If the Commissioner makes a determination described in
subparagraph (A)(i) or (B), as appropriate, of paragraph (1), the
Commissioner shall approve the application and designate the
director of the designated State unit to award the grant and carry
out this section.
``(3) Grants by commissioner.--If the designated State agency
of a State described in paragraph (1) does not submit and obtain
approval of an application under paragraph (2), the Commissioner
shall award the grant described in paragraph (1) to eligible
agencies in the State in accordance with section 722.
``(b) Eligible Agencies.--In any State in which the Commissioner
has approved the State plan required by section 704, the director of
the designated State unit may award a grant under this section to any
eligible agency that--
``(1) has the power and authority to carry out the purpose of
this part and perform the functions set forth in section 725 within
a community and to receive and administer funds under this part,
funds and contributions from private or public sources that may be
used in support of a center for independent living, and funds from
other public and private programs;
``(2) is determined by the director to be able to plan,
conduct, administer, and evaluate a center for independent living,
consistent with the standards and assurances set forth in section
725; and
``(3) submits an application to the director at such time, in
such manner, and containing such information as the head of the
designated State unit may require.
``(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, unless the
director makes a finding that the agency involved fails to comply with
the standards and assurances set forth in section 725.
``(d) New Centers for Independent Living.--
``(1) In general.--If there is no center for independent living
serving a region of the State or the region is unserved or
underserved, and the increase in the allotment of the State is
sufficient to support an additional center for independent living
in the State, the director of the designated State unit may award a
grant under this section from among eligible agencies, consistent
with the provisions of the State plan under section 704 setting
forth the design of the State for establishing a statewide network
of centers for independent living.
``(2) Selection.--In selecting from among eligible agencies in
awarding a grant under this part for a new center for independent
living--
``(A) the director of the designated State unit and the
chairperson of, or other individual designated by, the
Statewide Independent Living Council acting on behalf of and at
the direction of the Council, shall jointly appoint a peer
review committee that shall rank applications in accordance
with the standards and assurances set forth in section 725 and
criteria jointly established by such director and such
chairperson or individual;
``(B) the peer review committee shall consider the ability
of each such applicant to operate a center for independent
living, and shall recommend an applicant to receive a grant
under this section, based on--
``(i) evidence of the need for a center for independent
living, consistent with the State plan;
``(ii) any past performance of such applicant in
providing services comparable to independent living
services;
``(iii) the plan for complying with, or demonstrated
success in complying with, the standards and the assurances
set forth in section 725;
``(iv) the quality of key personnel of the applicant
and the involvement of individuals with significant
disabilities by the applicant;
``(v) the budgets and cost-effectiveness of the
applicant;
``(vi) the evaluation plan of the applicant; and
``(vii) the ability of such applicant to carry out the
plans; and
``(C) the director of the designated State unit shall award
the grant on the basis of the recommendations of the peer
review committee if the actions of the committee are consistent
with Federal and State law.
``(3) Current centers.--Notwithstanding paragraphs (1) and (2),
a center for independent living that receives assistance under part
B for a fiscal year shall be eligible for a grant for the
subsequent fiscal year under this subsection.
``(e) Order of Priorities.--Unless the director of the designated
State unit and the chairperson of the Council or other individual
designated by the Council acting on behalf of and at the direction of
the Council jointly agree on another order of priority, the director
shall be guided by the following order of priorities in allocating
funds among centers for independent living within a State, to the
extent funds are available:
``(1) The director of the designated State unit shall support
existing centers for independent living, as described in subsection
(c), that comply with the standards and assurances set forth in
section 725, at the level of funding for the previous year.
``(2) The director of the designated State unit shall provide
for a cost-of-living increase for such existing centers for
independent living.
``(3) The director of the designated State unit shall fund new
centers for independent living, as described in subsection (d),
that comply with the standards and assurances set forth in section
725.
``(f) Nonresidential Agencies.--A center that provides or manages
residential housing after October 1, 1994, shall not be considered to
be an eligible agency under this section.
``(g) Review.--
``(1) In general.--The director of the designated State unit
shall periodically review each center receiving funds under this
section to determine whether such center is in compliance with the
standards and assurances set forth in section 725. If the director
of the designated State unit determines that any center receiving
funds under this section is not in compliance with the standards
and assurances set forth in section 725, the director of the
designated State unit shall immediately notify such center that it
is out of compliance.
``(2) Enforcement.--The director of the designated State unit
shall terminate all funds under this section to such center 90 days
after--
``(A) the date of such notification; or
``(B) in the case of a center that requests an appeal under
subsection (i), the date of any final decision under subsection
(i),
unless the center submits a plan to achieve compliance within 90
days and such plan is approved by the director, or if appealed, by
the Commissioner.
``(h) Onsite Compliance Review.--The director of the designated
State unit shall annually conduct onsite compliance reviews of at least
15 percent of the centers for independent living that receive funding
under this section in the State. Each team that conducts onsite
compliance review of centers for independent living shall include at
least one person who is not an employee of the designated State agency,
who has experience in the operation of centers for independent living,
and who is jointly selected by the director of the designated State
unit and the chairperson of or other individual designated by the
Council acting on behalf of and at the direction of the Council. A copy
of this review shall be provided to the Commissioner.
``(i) Adverse Actions.--If the director of the designated State
unit proposes to take a significant adverse action against a center for
independent living, the center may seek mediation and conciliation to
be provided by an individual or individuals who are free of conflicts
of interest identified by the chairperson of or other individual
designated by the Council. If the issue is not resolved through the
mediation and conciliation, the center may appeal the proposed adverse
action to the Commissioner for a final decision.
``SEC. 724. CENTERS OPERATED BY STATE AGENCIES.
``A State that receives assistance for fiscal year 1993 with
respect to a center in accordance with subsection (a) of this section
(as in effect on the day before the date of enactment of the
Rehabilitation Act Amendments of 1998) may continue to receive
assistance under this part for fiscal year 1994 or a succeeding fiscal
year if, for such fiscal year--
``(1) no nonprofit private agency--
``(A) submits an acceptable application to operate a center
for independent living for the fiscal year before a date
specified by the Commissioner; and
``(B) obtains approval of the application under section 722
or 723; or
``(2) after funding all applications so submitted and approved,
the Commissioner determines that funds remain available to provide
such assistance.
``SEC. 725. STANDARDS AND ASSURANCES FOR CENTERS FOR INDEPENDENT LIVING.
``(a) In General.--Each center for independent living that receives
assistance under this part shall comply with the standards set out in
subsection (b) and provide and comply with the assurances set out in
subsection (c) in order to ensure that all programs and activities
under this part are planned, conducted, administered, and evaluated in
a manner consistent with the purposes of this chapter and the objective
of providing assistance effectively and efficiently.
``(b) Standards.--
``(1) Philosophy.--The center shall promote and practice the
independent living philosophy of--
``(A) consumer control of the center regarding
decisionmaking, service delivery, management, and establishment
of the policy and direction of the center;
``(B) self-help and self-advocacy;
``(C) development of peer relationships and peer role
models; and
``(D) equal access of individuals with significant
disabilities to society and to all services, programs,
activities, resources, and facilities, whether public or
private and regardless of the funding source.
``(2) Provision of services.--The center shall provide services
to individuals with a range of significant disabilities. The center
shall provide services on a cross-disability basis (for individuals
with all different types of significant disabilities, including
individuals with significant disabilities who are members of
populations that are unserved or underserved by programs under this
title). Eligibility for services at any center for independent
living shall be determined by the center, and shall not be based on
the presence of any one or more specific significant disabilities.
``(3) Independent living goals.--The center shall facilitate
the development and achievement of independent living goals
selected by individuals with significant disabilities who seek such
assistance by the center.
``(4) Community options.--The center shall work to increase the
availability and improve the quality of community options for
independent living in order to facilitate the development and
achievement of independent living goals by individuals with
significant disabilities.
``(5) Independent living core services.--The center shall
provide independent living core services and, as appropriate, a
combination of any other independent living services.
``(6) Activities to increase community capacity.--The center
shall conduct activities to increase the capacity of communities
within the service area of the center to meet the needs of
individuals with significant disabilities.
``(7) Resource development activities.--The center shall
conduct resource development activities to obtain funding from
sources other than this chapter.
``(c) Assurances.--The eligible agency shall provide at such time
and in such manner as the Commissioner may require, such satisfactory
assurances as the Commissioner may require, including satisfactory
assurances that--
``(1) the applicant is an eligible agency;
``(2) the center will be designed and operated within local
communities by individuals with disabilities, including an
assurance that the center will have a Board that is the principal
governing body of the center and a majority of which shall be
composed of individuals with significant disabilities;
``(3) the applicant will comply with the standards set forth in
subsection (b);
``(4) the applicant will establish clear priorities through
annual and 3-year program and financial planning objectives for the
center, including overall goals or a mission for the center, a work
plan for achieving the goals or mission, specific objectives,
service priorities, and types of services to be provided, and a
description that shall demonstrate how the proposed activities of
the applicant are consistent with the most recent 3-year State plan
under section 704;
``(5) the applicant will use sound organizational and personnel
assignment practices, including taking affirmative action to employ
and advance in employment qualified individuals with significant
disabilities on the same terms and conditions required with respect
to the employment of individuals with disabilities under section
503;
``(6) the applicant will ensure that the majority of the staff,
and individuals in decisionmaking positions, of the applicant are
individuals with disabilities;
``(7) the applicant will practice sound fiscal management,
including making arrangements for an annual independent fiscal
audit, notwithstanding section 7502(a)(2)(A) of title 31, United
States Code;
``(8) the applicant will conduct annual self-evaluations,
prepare an annual report, and maintain records adequate to measure
performance with respect to the standards, containing information
regarding, at a minimum--
``(A) the extent to which the center is in compliance with
the standards;
``(B) the number and types of individuals with significant
disabilities receiving services through the center;
``(C) the types of services provided through the center and
the number of individuals with significant disabilities
receiving each type of service;
``(D) the sources and amounts of funding for the operation
of the center;
``(E) the number of individuals with significant
disabilities who are employed by, and the number who are in
management and decisionmaking positions in, the center; and
``(F) a comparison, when appropriate, of the activities of
the center in prior years with the activities of the center in
the most recent year;
``(9) individuals with significant disabilities who are seeking
or receiving services at the center will be notified by the center
of the existence of, the availability of, and how to contact, the
client assistance program;
``(10) aggressive outreach regarding services provided through
the center will be conducted in an effort to reach populations of
individuals with significant disabilities that are unserved or
underserved by programs under this title, especially minority
groups and urban and rural populations;
``(11) staff at centers for independent living will receive
training on how to serve such unserved and underserved populations,
including minority groups and urban and rural populations;
``(12) the center will submit to the Statewide Independent
Living Council a copy of its approved grant application and the
annual report required under paragraph (8);
``(13) the center will prepare and submit a report to the
designated State unit or the Commissioner, as the case may be, at
the end of each fiscal year that contains the information described
in paragraph (8) and information regarding the extent to which the
center is in compliance with the standards set forth in subsection
(b); and
``(14) an independent living plan described in section 704(e)
will be developed unless the individual who would receive services
under the plan signs a waiver stating that such a plan is
unnecessary.
``SEC. 726. DEFINITIONS.
``As used in this part, the term `eligible agency' means a
consumer-controlled, community-based, cross-disability, nonresidential
private nonprofit agency.
``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.
``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. PROGRAM OF GRANTS.
``(a) In General.--
``(1) Authority for grants.--Subject to subsections (b) and
(c), the Commissioner may make grants to States for the purpose of
providing the services described in subsection (d) to older
individuals who are blind.
``(2) Designated state agency.--The Commissioner may not make a
grant under subsection (a) unless the State involved agrees that
the grant will be administered solely by the agency described in
section 101(a)(2)(A)(i).
``(b) Contingent Competitive Grants.--Beginning with fiscal year
1993, in the case of any fiscal year for which the amount appropriated
under section 753 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 appropriated under section 753 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), 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).
``(d) Services Generally.--The Commissioner may not make a grant
under subsection (a) unless the State involved agrees that the grant
will be expended only for purposes of--
``(1) providing independent living services to older
individuals who are blind;
``(2) conducting activities that will improve or expand
services for such individuals; and
``(3) conducting activities to help improve public
understanding of the problems of such individuals.
``(e) Independent Living Services.--Independent living services for
purposes of subsection (d)(1) include--
``(1) services to help correct blindness, such as--
``(A) outreach services;
``(B) visual screening;
``(C) surgical or therapeutic treatment to prevent,
correct, or modify disabling eye conditions; and
``(D) hospitalization related to such services;
``(2) the provision of eyeglasses and other visual aids;
``(3) the provision of services and equipment to assist an
older individual who is blind to become more mobile and more self-
sufficient;
``(4) mobility training, braille instruction, and other
services and equipment to help an older individual who is blind
adjust to blindness;
``(5) guide services, reader services, and transportation;
``(6) any other appropriate service designed to assist an older
individual who is blind in coping with daily living activities,
including supportive services and rehabilitation teaching services;
``(7) independent living skills training, information and
referral services, peer counseling, and individual advocacy
training; and
``(8) other independent living services.
``(f) Matching Funds.--
``(1) In general.--The Commissioner may not make a grant under
subsection (a) unless the State involved agrees, with respect to
the costs of the program to be carried out by the State pursuant to
such subsection, to make available (directly or through donations
from public or private entities) non-Federal contributions toward
such costs in an amount that is not less than $1 for each $9 of
Federal funds provided in the grant.
``(2) Determination of amount contributed.--Non-Federal
contributions required in paragraph (1) may be in cash or in kind,
fairly evaluated, including plant, equipment, or services. Amounts
provided by the Federal Government, or services assisted or
subsidized to any significant extent by the Federal Government, may
not be included in determining the amount of such non-Federal
contributions.
``(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 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) 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 information
with respect to any grants under subsection (j)(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) the number and types of older individuals who are
blind and are receiving services;
``(ii) the types of services provided and the number of
older individuals who are blind and are receiving each type
of service;
``(iii) the sources and amounts of funding for the
operation of each project or program;
``(iv) the amounts and percentages of resources
committed to each type of service provided;
``(v) data on actions taken to employ, and advance in
employment, qualified individuals with significant
disabilities, including older individuals who are blind;
and
``(vi) a comparison, if appropriate, of prior year
activities with the activities of the most recent year;
``(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) 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.
``(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 and
available for allotments under subsection (a); and
``(B) a percentage equal to the quotient of--
``(i) an amount equal to the number of individuals
residing in the State who are not less than 55 years of
age; divided by
``(ii) an amount equal to the number of individuals
residing in the United States who are not less than 55
years of age.
``(4) Disposition of certain amounts.--
``(A) Grants.--From the amounts specified in subparagraph
(B), the Commissioner may make grants to States whose
population of older individuals who are blind has a substantial
need for the services specified in subsection (d) relative to
the populations in other States of older individuals who are
blind.
``(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);
``(ii) the failure of any State to prepare within a
reasonable period of time such application in compliance
with such subsection; or
``(iii) any State informing the Commissioner that the
State does not intend to expend the full amount of the
allotment made for the State under subsection (a).
``(C) Conditions.--The Commissioner may not make a grant
under subparagraph (A) unless the State involved agrees that
the grant is subject to the same conditions as grants made
under subsection (a).
``SEC. 753. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this chapter
such sums as may be necessary for each of the fiscal years 1999
through 2003.''.
SEC. 411. REPEAL.
Title VIII of the Rehabilitation Act of 1973 (29 U.S.C. 797 et
seq.) is repealed.
SEC. 412. HELEN KELLER NATIONAL CENTER ACT.
(a) General Authorization of Appropriations.--The first sentence of
section 205(a) of the Helen Keller National Center Act (29 U.S.C.
1904(a)) is amended by striking ``1993 through 1997'' and inserting
``1999 through 2003''.
(b) Helen Keller National Center Federal Endowment Fund.--The first
sentence of section 208(h) of such Act (29 U.S.C. 1907(h)) is amended
by striking ``1993 through 1997'' and inserting ``1999 through 2003''.
(c) Registry.--Such Act (29 U.S.C. 1901 et seq.) is amended by
adding at the end the following:
``SEC. 209. REGISTRY.
``(a) In General.--To assist the Center in providing services to
individuals who are deaf-blind, the Center may establish and maintain
registries of such individuals in each of the regional field offices of
the network of the Center.
``(b) Voluntary Provision of Information.--No individual who is
deaf-blind may be required to provide information to the Center for any
purpose with respect to a registry established under subsection (a).
``(c) Nondisclosure.--The Center (including the network of the
Center) may not disclose information contained in a registry
established under subsection (a) to any individual or organization that
is not affiliated with the Center, unless the individual to whom the
information relates provides specific written authorization for the
Center to disclose the information.
``(d) Privacy Rights.--The requirements of section 552a of title 5,
United States Code (commonly known as the `Privacy Act of 1974') shall
apply to personally identifiable information contained in the
registries established by the Center under subsection (a), in the same
manner and to the same extent as such requirements apply to a record of
an agency.
``(e) Removal of Information.--On the request of an individual, the
Center shall remove all information relating to the individual from any
registry established under subsection (a).''.
SEC. 413. PRESIDENT'S COMMITTEE ON EMPLOYMENT OF PEOPLE WITH DISABILITIES.
Section 2(2) of the joint resolution approved July 11, 1949 (63
Stat. 409, chapter 302; 36 U.S.C. 155b(2)) is amended by inserting
``solicit,'' before ``accept,''.
SEC. 414. CONFORMING AMENDMENTS.
(a) Randolph-Sheppard Act.--Section 2(e) of the Act of June 20,
1936 (commonly known as the ``Randolph-Sheppard Act'') (49 Stat. 1559,
chapter 638; 20 U.S.C. 107a(e)) is amended by striking ``section
101(a)(1)(A)'' and inserting ``section 101(a)(2)(A)''.
(b) Technology-Related Assistance for Individuals With Disabilities
Act of 1988.--
(1) Section 101(b) of the Technology-Related Assistance for
Individuals With Disabilities Act of 1988 (29 U.S.C. 2211(b)) is
amended--
(A) in paragraph (7)(A)(ii)(II), by striking
``individualized written rehabilitation program'' and inserting
``individualized plan for employment''; and
(B) in paragraph (9)(B), by striking ``(as defined in
section 7(25) of such Act (29 U.S.C. 706(25)))'' and inserting
``(as defined in section 7 of such Act)''.
(2) Section 102(e)(23)(A) of such Act (29 U.S.C.
2212(e)(23)(A)) is amended by striking ``the assurance provided by
the State in accordance with section 101(a)(36) of the
Rehabilitation Act of 1973 (29 U.S.C. 721(a)(36))'' and inserting
``the portion of the State plan provided by the State in accordance
with section 101(a)(21) of the Rehabilitation Act of 1973''.
(c) Title 38, United States Code.--Sections 3904(b) and 7303(b) of
title 38, United States Code, are amended by striking ``section
204(b)(2) of the Rehabilitation Act of 1973 (29 U.S.C. 762(b)(2))
(relating to the establishment and support of Rehabilitation
Engineering Research Centers)'' and inserting ``section 204(b)(3) of
the Rehabilitation Act of 1973 (relating to the establishment and
support of Rehabilitation Engineering Research Centers)''.
(d) National School Lunch Act.--Section 27(a)(1)(B) of the National
School Lunch Act (42 U.S.C. 1769h(a)(1)(B)) is amended by striking
``section 7(8) of the Rehabilitation Act of 1973 (29 U.S.C. 706(8))''
and inserting ``section 7 of the Rehabilitation Act of 1973''.
(e) Domestic Volunteer Service Act of 1973.--Section 421(11) of the
Domestic Volunteer Service Act of 1973 (42 U.S.C. 5061(11)) is amended
by striking ``section 7(8)(B) of the Rehabilitation Act of 1973 (29
U.S.C. 706(8)(B))'' and inserting ``section 7(20)(B) of the
Rehabilitation Act of 1973''.
(f) Energy Conservation and Production Act.--Section 412(5) of the
Energy Conservation and Production Act (42 U.S.C. 6862(5)) is amended
by striking ``a handicapped individual as defined in section 7(7) of
the Rehabilitation Act of 1973'' and inserting ``an individual with a
disability, as defined in section 7 of the Rehabilitation Act of 1973''.
(g) National and Community Service Act of 1990.--Section 101(12) of
the National and Community Service Act of 1990 (42 U.S.C. 12511(12)) is
amended by striking ``section 7(8)(B) of the Rehabilitation Act of 1973
(29 U.S.C. 706(8)(B))'' and inserting ``section 7(20)(B) of the
Rehabilitation Act of 1973''.
TITLE V--GENERAL PROVISIONS
SEC. 501. STATE UNIFIED PLAN.
(a) Definition of Appropriate Secretary.--In this section, the term
``appropriate Secretary'' means the head of the Federal agency who
exercises administrative authority over an activity or program
described in subsection (b).
(b) State Unified Plan.--
(1) In general.--A State may develop and submit to the
appropriate Secretaries a State unified plan for 2 or more of the
activities or programs set forth in paragraph (2), except that the
State may include in the plan the activities described in paragraph
(2)(A) only with the prior approval of the legislature of the
State. The State unified plan shall cover one or more of the
activities set forth in subparagraphs (A) through (D) of paragraph
(2) and may cover one or more of the activities set forth in
subparagraphs (E) through (O) of paragraph (2).
(2) Activities.--The activities and programs referred to in
paragraph (1) are as follows:
(A) Secondary vocational education programs authorized
under the Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2301 et seq.).
(B) Postsecondary vocational education programs authorized
under the Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2301 et seq.).
(C) Activities authorized under title I.
(D) Activities authorized under title II.
(E) Programs authorized under section 6(d) of the Food
Stamp Act of 1977 (7 U.S.C. 2015(d)).
(F) Work programs authorized under section 6(o) of the Food
Stamp Act of 1977 (7 U.S.C. 2015(o)).
(G) Activities authorized under chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.).
(H) Programs authorized under the Wagner-Peyser Act (29
U.S.C. 49 et seq.).
(I) Programs authorized under title I of the Rehabilitation
Act of 1973 (29 U.S.C. 720 et seq.), other than section 112 of
such Act (29 U.S.C. 732).
(J) Activities authorized under chapter 41 of title 38,
United States Code.
(K) Programs authorized under State unemployment
compensation laws (in accordance with applicable Federal law).
(L) Programs authorized under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).
(M) Programs authorized under title V of the Older
Americans Act of 1965 (42 U.S.C. 3056 et seq.).
(N) Training activities carried out by the Department of
Housing and Urban Development.
(O) Programs authorized under the Community Services Block
Grant Act (42 U.S.C. 9901 et seq.).
(c) Requirements.--
(1) In general.--The portion of a State unified plan covering
an activity or program described in subsection (b) shall be subject
to the requirements, if any, applicable to a plan or application
for assistance under the Federal statute authorizing the activity
or program.
(2) Additional submission not required.--A State that submits a
State unified plan covering an activity or program described in
subsection (b) that is approved under subsection (d) shall not be
required to submit any other plan or application in order to
receive Federal funds to carry out the activity or program.
(3) Coordination.--A State unified plan shall include--
(A) a description of the methods used for joint planning
and coordination of the programs and activities included in the
unified plan; and
(B) an assurance that the methods included an opportunity
for the entities responsible for planning or administering such
programs and activities to review and comment on all portions
of the unified plan.
(d) Approval by the Appropriate Secretaries.--
(1) Jurisdiction.--The appropriate Secretary shall have the
authority to approve the portion of the State unified plan relating
to the activity or program over which the appropriate Secretary
exercises administrative authority. On the approval of the
appropriate Secretary, the portion of the plan relating to the
activity or program shall be implemented by the State pursuant to
the applicable portion of the State unified plan.
(2) Approval.--
(A) In general.--A portion of the State unified plan
covering an activity or program described in subsection (b)
that is submitted to the appropriate Secretary under this
section shall be considered to be approved by the appropriate
Secretary at the end of the 90-day period beginning on the day
the appropriate Secretary receives the portion, unless the
appropriate Secretary makes a written determination, during the
90-day period, that the portion is not consistent with the
requirements of the Federal statute authorizing the activity or
program including the criteria for approval of a plan or
application, if any, under such statute or the plan is not
consistent with the requirements of subsection (c)(3).
(B) Special rule.--In subparagraph (A), the term ``criteria
for approval of a State plan'', relating to activities carried
out under title I or II or under the Carl D. Perkins Vocational
and Applied Technology Education Act (20 U.S.C. 2301 et seq.),
includes a requirement for agreement between the State and the
appropriate Secretary regarding State performance measures,
including levels of performance.
SEC. 502. DEFINITIONS FOR INDICATORS OF PERFORMANCE.
(a) In General.--In order to ensure nationwide comparability of
performance data, the Secretary of Labor and the Secretary of
Education, after consultation with the representatives described in
subsection (b), shall issue definitions for indicators of performance
and levels of performance established under titles I and II.
(b) Representatives.--The representatives referred to in subsection
(a) are representatives of States (as defined in section 101) and
political subdivisions, business and industry, employees, eligible
providers of employment and training activities (as defined in section
101), educators, participants in activities carried out under this Act,
State Directors of adult education, providers of adult education,
providers of literacy services, individuals with expertise in serving
the employment and training needs of eligible youth (as defined in
section 101), parents, and other interested parties, with expertise
regarding activities authorized under this Act.
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 expected levels of performance for title
II, and the levels of performance for programs under Public Law 88-210
(as amended; 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.
(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.--The Secretary may review an application
described in paragraph (1) only to ensure that the application
contains the following assurances:
(A) The legislature of the State was consulted with respect
to the development of the application.
(B) The application was approved by the Governor, the
eligible agency (as defined in section 203), and the State
agency responsible for programs established under Public Law
88-210 (as amended; 20 U.S.C. 2301 et seq.).
(C) The State and the eligible agency, as appropriate,
exceeded the State adjusted levels of performance for title I,
the expected levels of performance for title II, and the levels
of performance for programs under Public Law 88-210 (as
amended; 20 U.S.C. 2301 et seq.).
(c) Amount.--
(1) Minimum and maximum grant amounts.--Subject to paragraph
(2), a grant provided to a State under subsection (a) shall be
awarded in an amount that is not less than $750,000 and not more
than $3,000,000.
(2) Proportionate reduction.--If the amount available for
grants under this section for a fiscal year is insufficient to
award a grant to each State or eligible agency that is eligible for
a grant, the Secretary shall reduce the minimum and maximum grant
amount by a uniform percentage.
SEC. 504. PRIVACY.
(a) Section 144 of the General Education Provisions Act.--Nothing
in this Act shall be construed to supersede the privacy protections
afforded parents and students under section 444 of the General
Education Provisions Act (20 U.S.C. 1232g), as added by the Family
Educational Rights and Privacy Act of 1974 (section 513 of Public Law
93-380; 88 Stat. 571).
(b) Prohibition on Development of National Database.--
(1) In general.--Nothing in this Act shall be construed to
permit the development of a national database of personally
identifiable information on individuals receiving services under
title I of this Act.
(2) Limitation.--Nothing in paragraph (1) shall be construed to
prevent the proper administration of national programs under
subtitles C and D of title I of this Act or to carry out program
management activities consistent with title I of this Act.
SEC. 505. BUY-AMERICAN REQUIREMENTS.
(a) Compliance With Buy American Act.--None of the funds made
available in this Act may be expended by an entity unless the entity
agrees that in expending the funds the entity will comply with the Buy
American Act (41 U.S.C. 10a et seq.).
(b) Sense of the Congress; Requirement Regarding Notice.--
(1) Purchase of american-made equipment and products.--In the
case of any equipment or product that may be authorized to be
purchased with financial assistance provided using funds made
available under this Act, it is the sense of the Congress that
entities receiving the assistance should, in expending the
assistance, purchase only American-made equipment and products.
(2) Notice to recipients of assistance.--In providing financial
assistance using funds made available under this Act, the head of
each Federal agency shall provide to each recipient of the
assistance a notice describing the statement made in paragraph (1)
by Congress.
(c) Prohibition of Contracts With Persons Falsely Labeling Products
as Made in America.--If it has been finally determined by a court or
Federal agency that any person intentionally affixed a label bearing a
``Made in America'' inscription, or any inscription with the same
meaning, to any product sold in or shipped to the United States that is
not made in the United States, the person shall be ineligible to
receive any contract or subcontract made with funds made available in
this subtitle, pursuant to the debarment, suspension, and ineligibility
procedures described in sections 9.400 through 9.409 of title 48, Code
of Federal Regulations, as such sections are in effect on the date of
enactment of this Act, or pursuant to any successor regulations.
SEC. 506. TRANSITION PROVISIONS.
(a) Workforce Investment Systems.--The Secretary of Labor shall
take such actions as the Secretary determines to be appropriate to
provide for the orderly transition from any authority under the Job
Training Partnership Act (29 U.S.C. 1501 et seq.) to the workforce
investment systems established under title I of this Act. Such actions
shall include the provision of guidance relating to the designation of
State workforce investment boards, local workforce investment areas,
and local workforce investment boards described in such title.
(b) Adult Education and Literacy Programs.--
(1) In general.--The Secretary of Education shall take such
actions as the Secretary determines to be appropriate to provide
for the transition from any authority under the Adult Education Act
(20 U.S.C. 1201 et seq.) to any authority under the Adult Education
and Family Literacy Act (as added by title II of this Act).
(2) Limitation.--The authority to take actions under paragraph
(1) shall apply only for the 1-year period beginning on the date of
the enactment of this Act.
(c) Regulations.--
(1) Interim final regulations.--Not later than 180 days after
the date of the enactment of this Act, the Secretary of Labor shall
develop and publish in the Federal Register interim final
regulations relating to the transition to, and implementation of,
this Act.
(2) Final regulations.--Not later than December 31, 1999, the
Secretary shall develop and publish in the Federal Register final
regulations relating to the transition to, and implementation of,
this Act.
(d) Expenditure of Funds During Transition.--
(1) In general.--Subject to paragraph (2) and in accordance
with regulations developed under subsection (b), States, grant
recipients, administrative entities, and other recipients of
financial assistance under the Job Training Partnership Act (29
U.S.C. 1501 et seq.) or under this Act may expend funds received
under the Job Training Partnership Act or under this Act, prior to
July 1, 2000, in order to plan and implement programs and
activities authorized under this Act.
(2) Additional requirements.--Not to exceed 2 percent of any
allotment to any State from amounts appropriated under the Job
Training Partnership Act or under this Act for fiscal year 1998 or
1999 may be made available to carry out paragraph (1) and not less
than 50 percent of any such amount used to carry out paragraph (1)
shall be made available to local entities for the purposes
described in such paragraph.
(e) Reorganization.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of Labor shall reorganize and
align functions within the Department of Labor and within the
Employment and Training Administration in order to carry out the duties
and responsibilities required by this Act (and related laws) in an
effective and efficient manner.
SEC. 507. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and the
amendments made by this Act, shall take effect on the date of the
enactment of this Act.
