DOCUMENT RESUME ED 372 267 CE 066 891 TITLE Proposed Legislation: Reemployment Act of 1994. Message from the President of the United States Transmitting a Draft of Proposed Legislation Entitled, "Reemployment Act of 1994." 103d Congress, 2d Session. INSTITUTION Congress of the U.S., Washington, D.C. House. REPORT NO House-Doc-103-222 PUB DATE 94 NOTE 265p. PUB TYPE Legal/Legislative/Regulatory Materials (090) EDRS PRICE MF01/PC11 Plus Postage. DESCRIPTORS Dislocated Workers; Economic Development; *Educational Needs; *Employment Programs; *Federal Legislation; *Federal Programs; *Job Training; Labor Market; Postsecondary Education; *Program Improvement; Retraining; Secondary Education IDENTIFIERS Congress 103rd; Proposed Legislation ABSTRACT This document contains the text and a section-by-section analysis of the proposed Reemployment Act of 1994, along with President Clinton's message in transmitting the act to Congress. The document reports that job seekers today have a difficult time getting information about jobs and training. The underlying problem is the lack of a coherent employment and training system. The document proposes a true system of lifelong learning, the prcposed legislation being a first step in building such a system. The act reflects six key principles: (1) universal access and program consolidation; (2) high-quality reemployment services; (3) high.quality labor market information; (4) one-stop service; (5) effective retraining for dislocated workers; and (6) accountability. The text of the proposed legislation includes a short title, table of contents, findings and purpose, authorizations Of appropriations, definitions, and various titles to address the major provisions outlined by the President. (KC) *********************************************************************** * Reproductions supplied by EDRS are the best that can be made from the original document. ***********************************************************************
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DOCUMENT RESUME
ED 372 267 CE 066 891
TITLE Proposed Legislation: Reemployment Act of 1994.Message from the President of the United StatesTransmitting a Draft of Proposed LegislationEntitled, "Reemployment Act of 1994." 103d Congress,2d Session.
INSTITUTION Congress of the U.S., Washington, D.C. House.REPORT NO House-Doc-103-222PUB DATE 94NOTE 265p.PUB TYPE Legal/Legislative/Regulatory Materials (090)
EDRS PRICE MF01/PC11 Plus Postage.DESCRIPTORS Dislocated Workers; Economic Development;
section-by-section analysis of the proposed Reemployment Act of 1994,along with President Clinton's message in transmitting the act toCongress. The document reports that job seekers today have adifficult time getting information about jobs and training. Theunderlying problem is the lack of a coherent employment and trainingsystem. The document proposes a true system of lifelong learning, theprcposed legislation being a first step in building such a system.The act reflects six key principles: (1) universal access and programconsolidation; (2) high-quality reemployment services; (3)
effective retraining for dislocated workers; and (6) accountability.The text of the proposed legislation includes a short title, table ofcontents, findings and purpose, authorizations Of appropriations,definitions, and various titles to address the major provisionsoutlined by the President. (KC)
************************************************************************ Reproductions supplied by EDRS are the best that can be made
from the original document.***********************************************************************
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103d Congress, 2d Session House Document 103-222
PROPOSED LEGISLATION: REEMPLOYMENT ACTOF 1994
MESSAGE
FROM
THE PRESIDENT OF TIE UNITED STATES
TRANSMITTING
A DRAFr OF PROPOSED LEGISLATION ENTITLED,"REEMPLOYMENT ACT OF 15-M4"
U S. DEPARTMENT OF EDUCATIONOdrce of Educalional Research and ImprovementEDU 0 ATIONAL RESOURCES INFORMATION
CENTER IERICI
This documeni has been reproduced asrecen.red horn the person or organizabonongtnattng A
r &Imo? Changes have been made to improve,eoroductiOn duality
Points of view Or oPintonS Stated tn this CtOcuntent do not necessardy represent olhc.alOERI bositron 0 p31cv
MARCH 16, 1994.Message and accompanying papers referred to the Com-mittees on Education and Labor, Ways and Means, the Judiciary, andVeterans' Affairs and ordered to be printed
U.S. GOVERNMENT PRINTING OFFICE
77-011 WASHINGTON : 1994
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To the Congress of the United States:I am pleased to transmit today for your immediate consideration
and nmmpt enactment the "Reemployment Act of 1994". Alsotransmitted is a section-by-section analysis. This legislation is vitalto help Americans find new jobs and build sustainable careers.
Our current set of programs was designed to meet the differentneeds of an earlier economy. People looking for help today confronta confusing, overlapping, and duplicative tangle of programs, serv-ices, and rules. Job seekerswhether unemployed or looking forbetter jobshave a difficult time getting the information they need:What benefits and services are available to them? Where can theyget good quality training? What do they need to know to find andhold good jobs and to build sustainable careers?
The underlying problem is the lack of a coherent employmentand training system. Instead, we have many disconnected, cat-egory-based programseach with distinct eligibility requirements,operating cycles, and program standards. We need a true systemof lifelong learningnot the current hodgepodge of programs, someof which work, and some of which don't. The legislation I am trans-mitting taday is an important first step in building this system.
We need to build a reemployment system because our currentunemployment system no longer delivers what many Americanworkers need. In the past, when a worker lost a job, he or she oftenreturned to that job as soon as the business cycle picked up againand the company was ready to rehire. The unemployment systemwas designed to tide workers over during temporary dry spells.Today, when a worker loses a job, that job often is gone forever.
Our ecenomy has generated new jobs. In 1993 alone, 1.7 millionnew private sector jobs were created--more than in the previous 4years combined. While the jobs exist, the pathways to them aren'talways clear.
The Reemployment Act of 1994 strives to fix this. It is based onevidence of what works for gettirg workers into new and betterjobs. Programs that work are customer-driven, offering customizedservice, quality information, and meaningful choices. Programsthat work provide job search assistance to help dislocated workersbecome reemployed rapidly, feature skill training connected to realjob opportunities, and offer support services to make long-termtraining practical for those who need it.
The Act reflects six key principles:First is universal access and program consolidation. The current
retchwork of dislceated worker programs is categorical, inefficiei t,and confusing. The Reemployment Act of 1994 will consolidate sixseparate programs into an integrated service system that focuseson what workers need to get their next job, not the reason whythey lost their last job.
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Second is high-quality reemployment services. Most dislocatedworkers want and need only information and some basic help in as-sessing their skills and planning and conducting their job search.These services are relatively simple and inexpensive, and they havebeen shown to pay off handsomely in reducing jobless spells.
Third is high-quality labor market information, which must be akey component of any reemployment effort. The labor market infor-mation component of the Reemployment Act of 1994 will knit to-gether various job data systems and show the way to new jobsthrough expanding access to good data on where jobs are and whatskills they require.
Fourth is one-stop service. At a recent conference that I attendedon "What is Working" in reemployment efforts, a common experi-ence of workers was the difficulty of getting good information onavailable services. Instead of forcing customers to waste their timeand try their patience going from office to office, the new systemwill require States to coordinate services for dislocated workersthrough career centers. It allows States to compete for funds to de-velop a more comprehensive network of one-stop career centers toserve under one roof anyone who needs help getting a first, new,or better job, and to streamline access to a wide range of job train-ing and employment programs.
The fifth principle of the legislation is effective retraining forthose workers who need it to get a new job. Some workers need re-training. The Reemployment Act of 1994 will also provide workersfinancial support when they need it to let them complete meaning-ful retraining programs.
Sixth is accountability. The Reemployment Act of 1994 aims torestructure the incentives facing service providers to begin focusingon workers as customers. Providers who deliver high-quality serv-ices for the customer and achieve positive outcomes will prosper inthe new system. Those who fail to do so will see their funding dryup.
The Reemployment Act of 1994 will create a new comprehensivereemployment system that will enhance service, improve access,and assist Americans in finding good new jobs. This is a respon-sible proposal that is fully offset over the next 5 years.
I urge the Congress to give this legislation prompt and favorableconsideration so that Americans will have available a new, com-prehensive reemployment system that works for everyone.
WILLIAM J. CLINTON.THE WHITE HOUSE, March 15, 1994.
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A HILLTo establish a comprehensive system of reemployment services,
training and income support for permanently laid off workers, to
facilitate the establishment of one-etop career centers 'to serve
as a common point of access to employment, education and training
information and services, to deve..op an effective national labor
market information system, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of Ameri a in Congress asstimbled
SECTION 1. SHORT TITLE.
This Act may be cited as the "Reemployment Act of 1994".
SIC. 2. TABLE OF CONTENTS.
The table of contents is as follows:
Sec. 1. Short Title.Sec. 2. Table of Contents.Sec. 3. Findings and Purpose.Sec. 4. Authorization of Appropriations.Sec. 5. Definitions.
TITLE ICOMPREHENSIVE PROGRAM FOR WORKER REEMPLOYMENT
Sec. 101. Allotment of Funds.Sec. 102. Recapture and Use of Unexpended Funds.Sec. 103. Eligibility for Services.
PART A. STATE AND SUBSTATE DELIVERY SYSTEM
Sec. 111. State Administration and Oversight.
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112. Designation and Functions of State Dislocated WorkerUnit.
113. Development and Maintenance of State and Local LaborMarket Information System.
114. State Coordination with Worker Profiling and RetrainingIncuwe Support Programs.
Sec. 115. State Supplementary Grants for Areas of Special Need.Sec. 116. State Grants for Job Retention Projects.Sec. 117. Designation of Substate Adminigtrative Structure.Sec. 118. Establi3hment of Career Centers.Sec. 119. Services to be Provided to Eligible Individuals.Sec. 120. Certificates of Continuing Eligibility.
PART B. FEDERAL DELIVERY OF SERVICES
Sec. 131. National Discretionary Grant Program.Sec. 132. Disaster Relief Employment Assistance.Sec. 133. Evaluation, Research, and Demonstrations.Sec. 134. Capacity Building and Technical Assistance.Sec. 135. Federal By-Pass Authority.
PART C. PEFUORMANCE STANDARDS AND'ALIT': ASSURANCE SYSTEMS
Sec. 151. Customer Service Compact.Se. 152. Performance Standards.Sec. 153. Customer Feedback.Sec. 154. Eligibility Requirements for Service Providers.
PART D. GENERAL REQUIREMENTS
Sec. 161. General Requirements.Sec. 162. Benefits.Sec. 163. Labor Standards.Sec. 164. Grievance Procedure.
PART E. FISCAL ADMINISTRATIVE PROVISIONS
Sec. 171. Program Year.Sec. 172. Prompt Allocation of Funds.Sec. 173. Monitoring.Sec. 174. Fiscal Controls; Sanctions.Sec. 175. Reports, Recordkeeping and Investigations.Sec. 176. Administrative Adjudication.Sec. 177. Nondiscrimination.Sec. 178. Judicial Review.Sec. 179. Administrative Provisions.Sec. 180. Obligational Authority.Sec. 181. Criminal Provisions.Sec. 182. References.
PART F. MISCELLANEOUS PROVISIONS
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Sec. 191. Effective Date.Sec. 192. Repealers.Sec. 193. Transition.
TITLE IIRETRAINING INCOME SUPPORT AND FLEXIBILITYIN UNEMPLOYMENT COMPENSATION
PART ARETRAINING INCOME SUPPORT
Sec. 201. Establishment.Sec. 202. Eligibility Requirements.Sec. 203. Weekly Amounts.Sec. 204. Limitations on detraining Income Support.Sec. 205. Agreements with States.Sec. 206. Administration Absent State Agreement.Sec. 207. Liabilities of Certifying and Disbursing Officers.Sec. 208. Fraud and Recovery of Overpayments.S:tc. 209. Penalties.Sec. 210. Definitions.Sec. 211. Regulations.Sec. 212. Effective Date.
PART B--RETRAINING INCOME SUPPORT ACCOUNT
Sec. 221. Establishment of Retraining Income Support Account.Sec. 222. Funds for Administration.Sec. 223. Conforming Amendments.Sec. 224. Effective Date.
PART C--FINANCING PROVISIONS
Sec. 231. Modifications to Federal Unemployment Tax.Sec. 232. Voluntary Withholding of Federal Individual Income Tax.
PART DINTFGRATION OF TRADE-IMPACT6D WORKERS INTOTHE COMPREHENSIVE REEMPLOYMENT SYSTEM
Sec. 241. Phaseout of Trade Adjustment Assistance Program.Sec. 242. Temporary Program for the Certification of
Trade-Impacted Workers.
PART EUNEMPLOYMENT COMPENSATION FLEXIBILITY
Sec. 251. Treatment of Short-Time Compensation Programs.Sec. 252. Treatment of Reemployment Bonus Programs.Sec. 253. Extension of Self-Employment Assistance Program.Sec. 254. Effective Date.
TIME III--ONE-STOP CAREER CENTER SYSTEM
Sec. 301. Purpose.
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PART A. COMPONENTS OF VOLUNTARY ONE-STOP CAREER CENTER SYSTEM
Sec. 311. General Requirements.Sec. 312. Workforce Investment Boards.Sec. 313. Establishment of One-Stop Career Centers.Sec. 314. Services to be Provided Through One-Stop Career
methods and techniques of the behavioral and social
sciences, including methodologies that control for
self-selection, where indicated.
"(B) ANALYSIS.--Such evaluations may include cost
benefit analyses of programs, and analyses of the
impact of the programs on participants and the
community, the extent to which programs meet the needs
of various demographic groups, and the effectiveness of
the delivery systems used by the various programs.
"(c) REPORT.--Not later than 5 years after the date of
enactment of the Reemployment i.ct of 1994, the Secretary shall
submit a report to the Congress relating to the evaluation
conducted pursuant to subsection (a) and containing such
recommendations as the Secretary determines are appropriate.".
SIC. 502. KODIFICATION OF TUITION DXFINITION.
Subparagraph (B) of section 141(d) (3) of the Job Training
Partnership Act is amended to read as follows:
"(B) Tuition charges for traini-g or education provided
by an educational :Institution, including an institution of
higher education (as defined in section 1201(a) of the
Higher Education Act of 1965), a proprietary institution of
higher education (as defined in section 481(b) of such Act),
and a postsecondary vocational institution (as defined in
section 481(c) of such Act) that are not more than the
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charges for such training or education made available to the
general public, do not require a breakdown of cost
components...
SEC. 503. EFFECTIVE DATE AND SUNSET.
(a) REINVENTION LAB.--The provisions of section 501, and the
amendments made by such section, shall take effect on the date of
enactment of this Act and shall terminate on the date that is 5
years after the date of enactment of this Act.
(b) TUITION DEFINITION.--The provisions of section 502 and
the amendments made by such section, shall take effect on the
date of enactment of this Act.
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RXIMPLOYNINT ACT OF 1994
SISCTION-SY-SICTION ANALYSIS
The Reemploymant Act of 1994 is the first step in building acoherent, integrated reemployment system for the Nation. Thecurrent unemployment system, designed in a different time for afundamentally different economy,.is premised.on the expectationthat laid-off workers would'return to their former jobs followingperiodic cyclical downturns in the economy. Today, millions ofworkers are finding their jobs imperiled by global economicintegration and technological change. Many of them do pot havethe skills necessary for reemployment in good jobs to replace theones they have lost.
Workers looking for help in making workforce transitionscurrently face a duplicative tangle of programs, services andrules. Students, workers, and the unemployed have a difficulttime getting information on the benefits and services that areavailable, where they can get high-quality training, and whatthey need to know to find and hold good jobs and buildsustainable careers.
The underlying problem is the lack of a coherent employmentand training system. The Reemployment Act of 1994 will addressthis need by:
o establishing a comprehensive system for reemploymentservices, training, and income support for permanentlylaid-off workers;
o facilitating the establishment of one-stop careercenters that will serve as a common point of access toemployment, education and training information andservices;
o developing an effective national labor marketinformation system; and
o providing additional flexibility for States in paymentof unemployment insurance benefits.
Title I of the Reemployment Act of 1994 would establish acomprehensive program for reemployment of dislocated workers --those who are permanently laid off or are long-term unemployed.This title would consolidate and replace six current programathat serve various categories of dislocated workers. All workerscurrently eligible under existing programs would be covered. Theprogram would be administered through a State and substatedelivery system. State Dislocated Worker Units would carry outrapid response activities at the site of dislocations, substategrantees would receive and administer funds, and Career Centersprovide a comprehensive array of reemployment services todislocated workers. Career Centers would make available to all
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eligible dislocated workers a set of basic services, includingjob search assistance. Intensive reemployment services would bemade available to dislocated workers who are not able to findjobs through the basic services. Each worker receiving intensiveservices would have a reemployment plan developed jointly by theindividual and a career counselor which identifies an employmentgoal and a combination of services designed to achieve the goal.
Education and training services will be available to workerswho need new or higher-level skills to obtain employment. Tohelp them make decisions, workers will have information about thequality of services and the local economy, as well as anunderstanding of their career objectives. Income support beyondregular UI payments will be available for most dislocated workersto enable them to participate in long-term training. Theduration of income support payments will be based on the lengthof training needed, and on the job tenure the individual had inthe last job.
Title I also establishes performance standards and qualityassurance systems. A customer.service compact is to be developedamong the parties administering title I programs. The Secretaryis also to establish performance standards for substate granteesand career Centers, and substate grantees are to establishmethods for obtaining feedback from customers -- individuals andemployers -- On the effectiveness and quality of services theyhave received. Eligibility requirements are established forproviders of education and training services which include theprovision of performance-based information to precludeineffective service providers from receiving Federal funds and toassist customers in choosing effective services.
Title II of the Reemployment Act of 1994 extends the focusof the unemployment insurance program beyond its original purposeof ensuring a source of income to workers who were temporarilyout of work and creates new and active options which workers andemployers may avail themselves to help ease the often-rapid andunsettling pace of labor market transition and change. First andforemost, this proposal will provide income support beyondunemployment insurance benefits to permanently laid-off workerswho need and decide to retrain for new jobs and occupations whichwill offer them a more secure future. Second, this proposaloffers new flexibility in the basic unemployment insuranceprogram so that if States so chose, a short-time compensationprogram would be available for to compensate employees who areworking reduced hours for an employer who is attempting to averta layoff or closure. In addition, the proposal would offer a newunemployment insurance option to laid-off workers in the form ofreemployment bonuses for those who quickly find new jobs.
Title III of the Reemployment Act establishes a program toencourage States to develop and implement Statewide networks of
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one-stop career centers, which will provide a common point ofaccess to employment, education and training information andservices to students, workers and employers. The centers wouldmake services available under employment and training proaramsadministered by the Department of Labor and other human resourceprograms that choose to participate.
Key components of the voluntary one-stop career centerssystem are as follows: The chief local elected official in eachsubstate area designated by the Governor is to establish aworkforce investment board, which is to plan, set policy andoversee the one-stop career center system in that area (but notadminister career centers). One-stop career centers may beestablished through a consortium of the Employment Service andother employment and training programs, or through a competitiveprocess, called the multiple independent operator option. Ineither case, career centers are issued a charter by the Boardthat identifies the number and location of the centers.
One-stop career centers must make available to the publicfree of charge a set of basic services. Intensive services aremade available pursuant to an operating agreement betweenparticipating programs. The centers also provide specializedservices to employers. Programs that are to participate in theoperation of the centers are the title I comprehensive dislocatedworkers program, the Employment Service, the Veterans' EmploymentService, JTPA title II programs, unemployment insurance programs,and the Senior Community Service Employment Program. Other humanresource programs, such as JOSS, may also participate. Qualityassurance is built into the one-stop career center system throughthe establishment of performance standards and customer feedbackmechaniams.
Other components of the one-stop career center system arethe establishment of a State Human Resource Investment Councilauthorized under JTPA, and a customer service compact, involvingall parties that administer the one-stop system. States thatwish to establish one-stop career center systems may apply to theSecretary for competitive grants to assist in the planning anddevelopment of the one-stop system, and for competitive grants toassist in the implementation of the one-stop system. States mayalso apply for waivers of Federal statutory and regulatoryrequirements to implement one-stop systems.
Title IV establishes a National Labor Market Informs....konSystem that builds upon and strengthens existing capabilities atthe Federal, State and local levels.
Title V amends title II of the Job Training Partnership Actto add a new part D, "Reinvention Labs". This new part allowswaiver of Federal statutory or regulatory provisions to encourageinnovative program designs for serving economically disadvantaged
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youth and adults, and to provide service delivery areas withincreased flexibility in operating job training programs inexchange for higher levels of accountability for results.
Together, these provisions will begin to build areemployment system that is coherent, comprehensive, customer-driven, accountable, and based evidence of what works inemployment and training.
Section 1 of the bill provides that this Act is entitled the"Reemployment Act of 1994."
Section 2 contains the Table of Contents.
Section 3 contains the statement of Findings and Purpose ofthe Act. The findings are that: in recent years the nature ofjob uncertainty and job loss has changed; a substantial number ofAmericans lose jobs because of structural changes in the economyrather than cyclical downturns; job uncertainty and dislocationcarry substantial emotional and financial costs to the nation;Americans seeking first jobs, new jobs, or better jobs confrontan economy in continuous transition and must have access to newskills and better job and career information; our current workeradjustment policies were designed for an earlier economy andoften.do not equip Americans to prosper in the current andemerging ath.' 'here of constant change; the primary governmentalresponse to jc loss -- the unemployment insurance system -- isnot designed tc build re-employment security; the currentgovernmental response to dislocation is a patchwork ofcategorical programs; job search assistance and retraining arenot availale to all who need it and income support is typicallynot availa_ie to facilitate training; there is a lack of reliablelabor market information; and administrative and regulatoryobstacles hamper State and local efforts to establishcomprehensive reemployment systems.
The purpose of the Act is to: begin the transformation ofthe memployment system into a comprehensive, universal, high-quality reemployment system; consolidate current categoricaldislocated worker programs into a comprehensive program for allpermanently laid-off workers, regardless of the cause of thedislocation; facilitate long-term training for permanently laid-off workers who want and need it; provide customer-centered,high-quality employment and training services that assistdislocated workers in making informed career and trainingchoices; build on innovative State and local efforts, to begin tostreamline employment and training programs into a comprehensive,high-quality, nationwide system of one-stop career centernetworks which provide access to all Americans who want and neednew, better and first jobs; and create a National Labor MarketInformation System that gives high-quality and timely data on the
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local economy, labor market and other occupational information toemployers, employees, and training providers.
Section 4 authorizes appropriations for the Act. Theauthorization for Title I (Comprehensive Program for WorkerReemployment) ie for $1.465 billion for fiscal year 1995 and forsuch sums as may be necessary for succeeding fiscal years. ForTitle III and Title IV (One,Stop Career Center System andNational Labor Market Information System, respectively), theauthorization is for $250 million for each of fiscal years 1995through 1999, and for such sums as may be necessary for fiscalyears 2000 through 2003.
Section 5 provides definitions for basic terms used in theAct. The following terms are defined: career center; community-based organizations; economic development agencies; Governor;labor market area; local elected official; nontraditionalemployment; one-stop career center; private industry council;Secretary; service delivery area; service provider; State; Statecouncil; State Human Resource Investment Council; substate area;substate grantee; and unit of general local government.
Title I of the bill establishes the Comprehensive Programfor Worker Reemployment.
Section 101 provides for the allotment of funds. Section101(a) requires that 75 percent of the funds appropriated eachfiscal year for this title be allotted to the States. Theremaining 25 percent is reserved for the Secretary to carry outthe national activities in Part B and for allocations to theCommonwealth of the Northern Mariana Islands and the territories.
Section 101(b) requires that the allotment to the States bebased one-third on the relative number of unemployed individuals,one-third on the relative number of unemployed persons in excessof 4.5 percent, and one-third cn the relative number ofAndividuals unemployed for more than 26 weeks. This is the sameformula that is currently used under title III of the JobTraining Partnership Act, except that the long-term unemployedfactor under the new program is based on more than 26 weeks ofunemployment (to conform to the eligibility section) rather than15 weeks. Unlike JTPA, this formula contains hold-harmless andstop-gain provisions specifying that no State may receive lessthan 90 percent or more than 130 percent of the previous year'sallotment percentage.
Subsection (b) requires, as does JTPA, that as soon assatisfactory data are available, allotments to the States are tobe tased 25 percent on the relative number of dislocated workersresiding in each state and 25 percent based on each of the threeunemployment factors described above.
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Section 101(c) allows the Governor to reserve up to 30percent of the State's allotment to carry out State activitiesand responsibilities authorized under this title. Of thisamount, up to 5 perceat may be used for State Grants for JobRetention Projects under section 116, not more than 15 percentmay be used for program administration, and not more than 20percent may be used for the combined costs of programadministrtion and technical assistance.
Section 101(d) requires the Governor to allot the remainderof the State allotment (a minimum of 70% of the State allotment)to substate areas under a formula determined by the Governor,which is to include the factors described above, and additionalobjective and measurable factors that the Governor determines areappropriate. The Governor's formula may be amended only once foreach program year. Substate allocations are also subject to acost limitation of 15 percent for administration.
Section 101(e) reserves a small amount of the Secretary'sreserve fund (0.3 percent) for allocation to the Commonwealth ofthe Northern Mariana Islands and the territories.
Section 101(f) reserves the remainder of the Secretary'sfunds for national activities. For each of fiscal years 1995-1999, a minimum of 80 percent is earmarked for NationalDiscretionary Grants under section 131 and Disaster ReliefEmployment Assistance under section 132; and not more than 20percent may be expended for evaluation, research, anddemonstrations under section 133 and capacity building, staffdevelopment and training, and technical assistance under section134. In program year 2000 and succeeding program years, thedistribution of funds among national activies changes to aminimum of 85 percent for National Discretionary Grants andDisaster Relief Encloyment Assistance, and not more than 15percent for evaluation, research, demonstrations, capacitybuilding, staff development and training, and technicalassistance.
Section 102 requires the Secretary, beginning in programyear 1996, to recapture unexpended, formula-funded Stateallotments upon a determination that the unexpended balance ofthe State allotment at the end of the prior program year exceeds20 percent of the prior year's allotment. The recapture alsoincludes the unexpended balance of a State allotment from anyother previous program year. Recapture may be accomplished byreducing the State allotment for the subsequent program year byan equal amount. All recaptured funds will be used for nationaldiscretionary grants.
Section 103 provides the eligibility requirements forservices under the new worker reemployment program.
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Section 103(a) establishes that an eligible individual is aperson who: (1) has been permanently laid off from full-time,part-time or seasonal (including farmworkers and fishermen)employment within the preceding 12-month period or has receivednotice that he/she will be permanently laid off, and is eitherunlikely to obtain employment in the same or similar occupationdue to obsolete skills or a lack of job opportunities, or thelayoff was due to any permanent closure or any substantial layoffat a plant, facility or enterprise; (2) is employed at a facilitywhere the employer has given public notice that the facility willbe closeJ within one year, and the individual is unlikely toremain employed with the same employer at another location orretire frm the labor force; (3) was self-employed (includingfarmers, fishermen and ranchers) and is unemployed due to localeconomic conditions or because of a natural disaster; (4) islong-term unemployed; (5) is certified as eligible under thetransitional program for certification of trade-impacted workersunder part D of title II; or (6) was, pursuant to regulationsestablished by the Secretary, identified and referred to theprogram by a State unemployment insurance worker profilingsystem.
Section 103(b) provides that displaced homemakers who weredisplaced within the preceding 12 months, are unemployed, andmeet the other service-related requirements are eligible toreceive basic services, and may receive other title I services tothe extent the Governor determines such additional services areappropriate.
Section 103(c) defines terms for purposes of this section."Permanently laid off" is defined as a layoff under which arecall is not expected within 26 weeks. "Long-term unemployed"refers to a period of unemployment defined by the Governor of notless than 27 weeks. "Displaced homemakers" are defined the sameas in section 4(29) of the Job Training Partnership Act.
Part A of Title I establishes a State and substate deliverysystem for the worker reemployment program.
Section 111 specifies that the State is responsible fordeveloping and operating administrative and management systemsthat ensure proper fiscal control and accountability, consistentwith both the requirements of Part E and the accomplishment ofthe objectives of this title.
Section 112 contains provisions for a State dislocatedworker unit and its required functions.
Section 112(a) requires each Governor to designate orestablish a State dislocated worker unit to carry out the rapidresponse, information collection and dissemination, programsupport, and coordination functions.
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Section 112(b) describes each of the unit's functions.First, rapid response activities include: (1) receiving noticesprovided under the Worker Adjustment and Retraining NotificationAct (WARN) and collecting information on other sites wherepermanent closures and layoffs affect 50 or more workers; (2)
establishing contact with representatives of the employer,affected workers and affected unions, and affected substategrantees, within 48 hours of notice or identification of theseclosures and layoffs; (3) providing assistance on site (i.e., ator near the closure or layoff location) within 5 days (unlessrepresentatives of affected workers agree to defer start-up),including information and assistance in accessing programs andservices, providing appropriate emergency reemployment services,and providing basic reemployment services in a group setting; (4)
promoting the formation of worker-management transitionassistance committees by: first, providing immediate assistancein creation of the committee, including financial assistance forstart-up costs, providing a list of individuals from whichcommittee chairperson may be selected, and assisting in selectionof worker representatives in absence of union; and second,providing technical assistance in developing a strategy forassessing the employment and training needs of each affectedworker and obtaining necessary services and assistance, such asadvice and information on sources of assistance, and serving asliaison with public and private services and programs; and (5)preparing an action plan, which may include assisting in theprovision of reemployment and training services, including groupcounseling, preliminary assessments, and labor marketinformation, and in planning for the establishment of on-sitetransition centers described in section 115(c).
with regard to information collection and disseminationactivities, the State dislocated worker unit's specifi: role is:to provide to employers and employees Statewide information onthe WARN Act, the Act's requirements, and the eligibilityrequirements, services and benefits available under this title;to collect information related to economic dislocation--includingpotential closings and layoffs and impacts of those to which theunit has responded, and on Statewide programs and resources forservices to affected workers; to provide the economic dislocationinformation to Governor to assist in providing an informationbase for effective program management, review, and evaluation;and to disseminate information Statewide on the State dislocatedworker unit's services and activities.
The State dislocated worker unit's program support functionsare to provide technical assistance and advice to substategrantees, work with employers and representatives of employees inpromoting labor-management cooperation to achieve programobjectives, and assist each local community affected by a masslayoff or plant closing in developing and implementing an
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adjustment plan, including assistance in obtaining State economicdevelopment assistance.
The unit's coordination role is to exchange information andcoordinate programs with: economic development agencies andsection 116 job retention projects to identify potential layoffs,avert plant closings and mass layoffs and accelerate dislocatedworkers' reemployment; State education, training and socialservices programs; State labor federations; State-level generalpurpose business organizations; and all other programs availableto assist dislocated workers, including the Employment Service,UI system, one-stop career centers established under Title III ofthis Act, and student financial aid programs.
Section 112(c) requires the State dislocated worker unit tocoordinate its actions with the relevant substate grantees andcareer centers.
Section 112(d) requires that the worker-managementtransition assistance committees ordinarily include (but are notlimited to): shared and equal participation by workers and theirrepresentatives, and management, and participation from communityrepresentatives as appropriate; shared employer and Statefinancial Farticipation, using funds from this title foroperating expenses; joint selection by worker and managementrepresentatives of the committee of a chairperson to guide andoversee committee activities, provide advice and leadership, andprepare a report on committee activities (the chairperson ormembers of the chairperson's immediate family cannot be employedor under contract with labor or management at the site); andoperation under a formal agreement which may be terminated atwill by workers or management and for cause by the Governor.
Section 112(e) authorizes the Governor to provide rapidresponse activities to layoffs of less than 50 workers if theGovernor determines that the layoffs have a significant adverseeconomic impact on a local community.
Where there is an impending permanent closure or substantiallayoff and other resources are not expeditiouzly available,section 112(f) authorizes the State to provide funds for apreliminary assessment of the advisability of a buyout andcontinued operation of the plant by a company or group, includingthe workers.
Section 112(g) prohibits the State from transferring theresponsibility for the State dislocated worker unit's rapidresponse function to another entity, but permits agreements,grants, contracts, or other arrangements with a career center orother entity for rapid response assistance services.
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Section 112(h) requires Federal oversight of the Stateadministration and the quality of rapid response assistanceservices, authorizes the Secretary to establish performancestandards relating to the Stato's provision of rapid responseservices, and requires the Secretary to implement appropriatecorrective action if performance is determined to be inadequate.
Section 113 provides for the development and maintenance ofState and local labor market information (Lill) systems. Section113(a) requints the Governor to identify, or develop and maintaina comprehensive LMI system in the State that (1) promotes thecollection, use, exchange and dissemination of quality MI thatwill enhance the employment opportunities available topermanently laid off workers and other individuals seekingemployment; and (2) provides support for needed improvements inMI systems.
Section 113(b) and (c) link the contents of and standardsfor LMI in this section to those prescribed in title IV of thisAct.
Section 113(d) requires the Governor to ensure, to theextent feasible, that automated technology will be used in datacollection and dissemination; the State dislocated worker unit,the substate grantee, and career centers have timely access toquality LHI; administrative records are designed to reducepaperwork; and available administrative data and surveys areshared or consolidated to reduce duplication of record keeping.
Section 113(e) requires the Governor to designate an agentwithin the State to be responsible for oversight and managementof a Statewide comprehensive labor market and occupationalinformation system. This agent is to be responsible forproviding training and technical assistance to collect anddisseminate information through programs under this title,providing funding for the State share of the cooperativeagreements authorized in title IV to implement the national LMIstrategy, and funding research, evaluation and demonstrationprojects to improve the Statewide LMI system.
Section 113(f) provides that the Governor is to coordinatethe activities carried out under title I with LMI carried out inthe State pursuant to other Federal laws, and with the nationalLMI program in title IV. The Governor is authorized to use LMIfunds under other Federal laws to maintain the State LMI system.
Section 113(g) requires the Governor to identify and utilizecost-effective methods for obtaining the labor market informationand data. This may include access to earnings records, State'employment security records, AFDC records, education records, andsimilar records, with appropriate safeguards to protect theconfidentiality of the information obtained. The Governor is
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also t9 publish and make available labor market and occupationalsupply and demand information and individualized careerinfotmation to public agencies, employers, and other users ofthis information.
Section 114 requires the Governor to coordinate workerreemployment programs with the retraining income support programauthorized under title II and the State worker profiling system.Coordination with the profiling system is to include methods forensuring the prompt referral, in accordance with the Secretary'sregulations, of UI claimants profiled as dislocated workers tocareer centers, and the sharing of information.
Soction 115 authorizes State supplementary grants for areasof special need. In areas of a State experiencing substantialincreases in the number of eligible dislocated workers due toplant or base closures and mass layoffs, State grants may beawarded to provide to workers the full range of servicesauthorized under section 119. Entities eligible to receive thesegrants include substate grantees in the affected areas, employersand employer associations, transition assistance committees andother employer-employee groups, representatives of employees,industry consortia, and State agencies. The Governor may, afterformal consultation with the area substate grantee, also usegrant funds to establish an on-site centers, including on-sitetransition centers specified below, to provide services.Operations of any on-site center must be coordinated with areacareer centers. Specific authority is provided for grants fortemporary on-site transition centers at plant and base closure ormass layoff sites that meet certain conditions. These includethat such centers would: be operated with the approval andparticipation of employers and workers and their representa-tives, including worker-management transition assistancecommittees; include substantial funding from non-public sources;and provide the full range of reemployment services directly orthrough contracts, such as contracts with outplacement agencies.Center activities would be coordinated with the local careercenters and workers could receive services at either thetransition or career centers.
Section 116 authorizes State grants for job retentionprojects. The Governor, after consultation with unionsrepresenting affected workers, may award grants to projectsproviding services to upgrade the skills of employed workers whoare at risk of being permanently laid off, and projects assistingthe retraining of employed workers to facilitate businessconversion or restructuring (e.g., to utilize new manufacturingtechnology or transform to a high-performance workplace) to avertsubstantial layoffs or plant closings. A 100 percent match ofthe grant is required, and in to be provided by a combination ofState funds (from funds other than federal funds) and fundsprovided by the affected employers or businesses. As indicated
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above, a maximum of 5 percent of the State reserve funds may beused for these projects.
Section 117 establishes the substate administrativestructure for the program.
Section 117(a) provides for the designation of substateareas for the delivery of program services. It requires theGovernor, after consultation with the State council and localelected officials, to designate substate areas. It also requiresthat each service delivery area under the Job TrainingPartnership Act be included in a substate area and prohibits thedivision of a service delivery area among substate areas. Thedesignation proceas must also take into consideration theStatewide availability of services, the capability to coordinateservice delivery with other job training, human services andeconomic development programs, and the geographic boundaries oflabor market areas in the State. Subject to the aboverequirements, a service delivery area with a population of200,000 or more that requests designation, any two or morecontiguous service delivery areas with an aggregate population of200,000 or more that request designation, and any concentratedemployment program grantee for a rural area authorized undersection 101 of the Job Training Partnership Act must bedesignated as a substate area, except that a request from thecontiguous service delivery areas may be denied if the Governordetermines the designation would be inconsistent with theeffective delivery of services to workers in State labor marketareas or would not otherwise be appropriate to carry out thisprogram. Substate areas established under the EDWAA program,which is one the programs this title replaces, could bedesignated if they otherwise meet the requirements of thissection. The section prohibits the designation of any area witha population under 200,000 as a substate area unless it is a JTPArural concentrated employment program grantee. The Governor isauthorized to award incentive grants to encourage the formationof substate areas based on labor market areas. Substate areadesignations may not be revised more than once every 4 years.
Section 117(b) provides for the designation of a substategrantee for each substate area for a 4-year period. Thedesignation is based on agreement among the Governor, area localelected official(s), and area private industry council(s).Absent agreement, the Governor selects the substate grantee,Entities eligible for designation as substate grantee include:area PICa; SDA grant recipients or administrative entities;private nonprofit organizations; units of local government, oragencies thereof, in the substate area; local offices of Stateagencies; other public agencies, such as community colleges andarea vocational schools; and consortia of the above.
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Section 117(c) establishes the functions of substategrantees. Substate grantees are to receive and administer fundsallocated to the substate area, including administration ofpayments to service providers of education and training servicesin accordance with section 119(d) (2); administer the process forselection of career center operators established in section 118;oversee and monitor the area program and coordinate the operationof career centers in the substate area; and prepare and publishbiennially a plan describing proposed program activities andobjectives in the substate area.
When a substate grantee desires to be selected to operate acareer center, the process for selecting career center operatorsin that area must be administered by the PIC(s). If the substategrantee is the PIC, the Governor administers the selectionprocess. Where substate grantees operate career centers, thecareer center oversight function is to be performed by theGovernor.
Section 118 provides for the ,stablishment of careercenters. The substate grantee is required to establish one ormore career centers in the substate area. The career center isto be the point of access for eligible individuals to theservices provided under section 119.
Section 118(c).describes the career center selectionprocess. Any entity or consortium of entities located in thesubstate area may apply for selection as a career centeroperator. The entities may include Employment Service offices,SDA grant recipients or administrative entities under JTPA,substate grantees under this title, community colleges and areavocational schools, community-based and other private, nonprofitorganizations, and other interested private for-profit and publicorganizations and entities.
After consultation with the Governor and local electedofficials, the substate grantee is required to publish a publicnotice informing individuals and organizations in the substatearea of: the estimated number of career centers to be establishedin the substate area, information on application procedures,selection criteria for career center operators, and otherinformation the substate grantee considers relevant to theselection of operators and administration of the centers.
The substate grantee, consistent with guidelines issued bythe Secretary, is required to use objective criteria andperformance measures in assessing the applications. Applicantsmust demonstrate the ability to operate a career center thatwould: provide the services described in section 119; useautomated systems to facilitate information exchange among careercenters; meet the performance standards prescribed pursuant tosection 152; meet the fiscal requirements of Part E of this
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title; objectively and equitably administer the process ofreferring participants to education and training services; andmeet any other requirements the substate grantee determinesappropriate. While overall costs may be taken into considerationin the selection process, the level of wages and benefits paid tononmanagerial employees by an applicant is not to be a factor inthe selection process.
Career center operators will be selected by the substategrantee once every 4 years.
Substate grantees are to review at least annually theeducation and training referral practices of any career centeroperator that concurrently provides education and trainingservices to program participants. Should the substate granteefind a pattern of inappropriate referrals to education andtraining services, the substate grantee may require the centeroperator to cease provision of these services to programparticipants as a condition for continuing as center operator, ormay terminate the agreement to operate a center.
Section 119 describes the services that are to be providedto eligible individuals. The services are grouped into 6categories: basic reemployment services, intensive reemploymentservices, education and training services, retraining incomesupport, supportive services, and supplemental wage allowancesfor older workers.
Section 119(b) requires each career center to make availableto eligible individuals the following basic reemploymentservices: outreach to inform individuals of and encourage use ofemployment and training services, including efforts to expandawareness.of training and placement opportunities for individualswith limited English proficiency and individuals withdisabilities; intake and eligibility determination for assistancefor this program; orientation to information and servicesavailable through the center; assistance in filing an initial UIclaim; a general assessment of the individual's skill levels(including appropriate testing) and service needs, which mayinclude basic and occupational skills, prior work experience,employability, interests, aptitudes, and supportive serviceneeds; local, regional and national labor market information,including job vacancy listings and local occupations in demandand related earnings and skill requirements; job searchassistance (including resume and interview preparation, andworkshops); job referral and placement assistance such as jobsearch training; information on education and job trainingprograms--including eligibility requirements, services provided,the availability and quality of the programs, and studentfinancial assistance available--and referrals as appropriate;assistance in evaluating individual's eligibility for any otherDOL-administered employment and training programs; information
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collected under performance standards and quality assurancerequirements; information on programs and providers of dependentcare and other supportive services available locally; groupcounseling, including peer counseling, available jointly withimmediate family members, on stress management and financialmanagement; and solicitation and acceptance of job orders of areaemployers and referral of appropriate applicants.
Section 119(c) describes the intensive reemployment serviceseach career center is to make available to eligible individualswho have received but are not able to find jobs through the basicreemployment services. The intensive services are: comprehensiveand specialized assessment of an individual's skill levels andservice needs, such as diagnostic testing, and in-depthinterviewing and evaluation to identify employment barriers andappropriate employment goals; the development of an individualreemployment plan which identifies the employment goal, includingappropriate nontraditional employment, achievement objectives andthe appropriate combination of services to achieve the goal;individual counseling and career planning, including peercounseling and counseling and planning for nontraditionalemployment opportunities; assistance in selection of educationand training providers and in obtaining income support, includingstudent financial assistance; case management for those receivingeducation, training and supportive services; job development;out-of-area job search allowances; relocation allowances; andfollow-up counseling for those placed in training or employment.
The section further requires that the reemployment plan beboth developed and signed jointly by the individual and a careercounselor, and that there be a review of the individual'sprogress in meeting the objectives in the plan. Should theparties disagree regarding the plan's content, appeal of thecareer counselor's recommendation is available to the individualunder the grievance procedure in section 164. The employmentgoal in the plan must relate to employment in an occupation indemand either locally or in another area to which the individualis willing to relocate.
The out-of-area job search allowance may not exceed 90percent of the costs of necessary job search expenses, up to amaximum payment specified by the Secretary in regulations. Theallowance is payable only if the search is to obtain a job withinthe United States and the career center determines the individualcannot reasonably be expected to find suitable employment in theindividual's local commuting area.
The relocation allowance is payable only for relocationexpenses incurred within the United States and only if the careercenter determines the individual cannot reasonably be expected tofind suitable employment in the individual's local commuting
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area, and the individual has obtained suitable employment withreasonable prospects for long-term duration in the relocationarea, or haF received a bona fide employment offer and is totallyseparated from employment at commencement of the relocation. Theamount of the relocation allowance may not exceed the total of:90 percent of reasonable and necessary expenses, specified by theSecretary in regulations, incurred in moving the individual, anyfamily and household effects; and a lump sum equivalent to 3times the individual's preceding average weekly wage, up to amaximum payment specified by the Secretary in regulations.
Section 119(d) contains provisions for education andtraining services. Each career center is required to makeavailable a list of eligible providers of basic skills training(including remedial education, literacy training, and English-as-a-second language instruction), classroom and on-the-joboccupational skills training; and other skills-based educationand training considered appropriate, which may includeentrepreneurial training and skills training for high performancework organizations, such as problem solving skills and thoserelated to the use of new technologies. Eligible providers ofeducation and training services are those meeting therequirements of section 154.
When an individual has a jointly executed individualreemployment plan that specifies that education and trainingservices are necessary to the person's reemployment, theindividual, in consultation with a career counselor, is to selecta service provider from the list of eligible providers. Thecareer center then refers the person to the provider and arrangesfor payment to be made to the provider by the substate grantee.
Education and training services may also be provided under acontract between the substate grantee and an eligible serviceprovider if the services are customized to meet the needs of aspecific eligible group in the substate area or are for on-the-job training.
Education and training costs payable under this title arecapped at $4,750 per individual over any 12-month period, and maynot exceed 104 weeks in a 5-year period. Funds provided underthe program for education and training may be supplemented withfunds from other sources such as Pell grants, student loans orwork assistance unde.:. the Higher Education Acz and other studentf:.nancial aid. It is intended that an eligih_- individualreceive funds for training under this title brAore applying forFederal student financial assistance, and the amounts provided bythis program will be calculated in determining an individual'seligibility for such assistance.
For purposes of the income support program under title II,the career centers are considered an agency certified by the
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Secretary to develop a reemployment plan. Eligible individualsparticipating in education and training services under this titleare also deemed to be in approved training for purposes of theunemployment compensation program.
Section 119(e) establishes a retraining income supportprogram for certain individuals eligible for the comprehensivereemployment program. For program years 1995 through 1999,workers who qualify for income support under title II (those withthree or more years of tenure with the layoff employer and thosecertified as trade-impacted) would be referred to that program.Workers with at least one but less than three years of tenurewould receive income support under this title. Beginning inprogram year 2000, all workers with one or more years of tenurewill qualify for retraining income support under title II andwill be referred to that program for such support. With respectto the transitional income support program under this title,permanently laid-off individuals will be provided up to 26 weeksof income support at the UI benefit level under this title toenable them to participate in education and training if theindividual: had at least one and less than three years of tenurewith the layoff employer; was entitled or would have beenentitled to unemployment compensation under State or Federal law,has exhausted all rights to UI to which the person was or wouldhave been entitled, and does not have an unexpired waitingperiod; was enrolled in education or training by the 16th week ofthe permanent layoff or 14th week after being informed the layoffwill exceed 6 months; and is participating and makingsatisfactory progress in education and training under this title(including any week which includes a break from training notexceeding 28 days which is provided under the program). The 16-week and 14-week enzoliment requirements may be extended up to 30days if the Secretary determines there are extenuatingcircumstances such as cancellation of a coursv or a later firstavailable enrollment date that justify the extension.
This subsection includes several special rules that providethat continuous employment would include periodic interruptionsresulting from sickness, maternity leave, military service,representation of a labor organization, and temporary layoffs upto a specified number of weeks. In addition, employment with asingle employer is to include all employment covered bymultiemployer plans, obtained through a single hiring hall,employment with a successor and predecessor employer in cases ofa merger or acquisition, and employment under a leasingarrangment.
TI.e retraining income support payment will be offset by theextended benefits or other Federal supplemental compensationprogram to which the individual is or would have been entitled,any weekly training income support provided under another Federalprogram, or earned income that exceeds 50 percent of the
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individual's weekly UI benefit. This last provision establishesa national standard for disregarding income that would allow forthe part-time employment of individuals while they areparticipating in the program.
Under a cost-reimbursable agreement, the income supportpayments will be administered by the State agency whichadministers the unemployment compensation program. The careercenter will assist individuals in education or training inapplying for retraining income support under this title or undertitle II, as appropriate. Individuals not eligible for incomesupport under either program, and needing income support toparticipate in training, will also be assisted in applying forother appropriate resources, including student financial aid.
The career center is to inform individuals determinedeligible of the availability and requirements relating to incomesupport, particularly the requirement that an individual beenrolled in training by the 16th week of unemployment in order toqualify. The substate grantee is also to make arrangements withthe State UI agency to make this information, along with otherinformation about the program, available to claimants.
Section 119(f) requires that the supportive services be madeavailable when the individual reemployment plan identifies theneed for such services to enable the individual's participationin intensive reemploymerit services or education and trainingservices. The services may include, but are not limited to,transportation, dependent care, meals, health care, temporaryshelter, needs-relatei payments, drug and alcohol abusecounseling and referral, family counseling, and other similarservices. At the option of the career center, supportiveservices may also be made available to individuals participatingin basic reemployment strvices. These services may be paiddirectly by the center, to a service provider, or througharrangements with appropriate agencies.
Section 119(g) authorizes a aupplemental wage allowance forolder workers. An eligible individual who is age 55 or over mayreceive a supplemental wage allowance if the individuLl: acceptsfull-time employment at a weekly wage that is less than the priorwage, was unable to obtain higher-wage employment through thebasic reemployment services available under this program, andagrees jointly with a career center counselor that the allowanceis the most effective adjustment option available. The allowanceis payable for up to 52 weeks and equals three-quarters of thedifference between the weekly wage received in a reemployment joband BO percent of the individual's preceding average weekly wage.It may not exceed 50 percent of the regular weekly UI benefitlevel. The allowance is to be administered on a cost-re '-sis through a substate grantee agreement with theSt u lt compensation agency. An individual who has
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received a certificate of continuing eligibility may notsubsequently receive a supplemental wage Aalowance.
Section 120 authorizes certificates of continuing eligibili-ty. A career center may issue a certificate for continuingeligibility to individuals who are accepting new employment at asignificantly lower wage than their previous wage or in anoccupation significantly different from their previousoccupation. The certificate will specify a period not to exceed104 weeks within which the worker will remain eligible forreemployment services and for retraining income support paymentsunder this program or under title II. The individual'scontinuing eligibility for such support will be based on his orher UI status at the time the certificate is received rather thanat the time the individual returns to the program. This willensure that the individual is held harmless. The requirementsrelating to enrollment in training to be eligible for incomesupport remain applicable except that the 16- and 14-week periodsstart with the individual's separation from this new, subsequentemployment.
Part B of title I defines Federal responsibilities. Section131 establishes a National Discretionary Grant Program. Section131(a) specifies that the national grants are to address largescale economic dislocations resulting from plant closures, baseclosures, or mass layoffs.
Section 131(b) states that the services provided under thenational grant program are to be the same types of services asthose provided by career centers in substate areas. Grants maybe awarded to such projects as those assisting industry-widedislocations, multistate dislocations, and dislocations resultingfrom defense cutbacks, international trade, environmental lawsand regulations, or special circumstances in the State. TheSecretary may also award grants for projects that providecomprehensive planning services to assist communities inresponding to an economic dislocation. In addition, grants maybe awarded for on-site transition centers described in section115(c) (2).
Section 131(c) contains the administrative provisionsgoverning the national discretionary grant program. To receive agrant, an eligible entity must submit an application to theSecretary at such time, in such manner, and accompanied by suchinformation as the Secretary determines is appropriate. Entitiesthat are eligible to receive grants are States, substate granteesunder this program, employers and employer associations, worker-management transition assistance committees, representatives ofemployees, community development corporations and community-basedorganizations, and industry consortia.
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Section 132 authorizes Disaster Relief EmploymentAssistance. Funds appropriated to carry out this section are tobe made available by the Secretary to the Governor of any Statewithin which is located an area which has suffered an emergencyor a major disaster. The provisions of section 132 currently arecontained in part J of title IV of the Job Training PartnershipAct. The eligibility provis:.ons now contained in part J havebeen revised to specify that notwithstanding the generaleligibility requirements for this program, an individual iseligible for disaster employment if the individual is unemployed(whether permanently or temporarily) as a consequence of thedisaster. In addition, there are other technical changes in theprovisions now in part J.
Section 133 authorizes the Secretary to conduct evaluations,research and demonstrations. Section 133(a) specifies that theSecretary shall provide for the continuing evaluation of title Iprograms, including their cost-effectiveness in achieving thepurposes of the title. Such evaluations must utilize recognizedstatistical methods and techniques of the behavioral and socialsciences, including methodologies that control for selfselection, where indicated. The evaluations may include costbenefit analyses, impact analyses, analyses of the extent towhich title I programs meet the needs of various demographicgroups, and the effectiveness of delivery systems used by thevarious programs. Also required are evaluations of theeffectiveness of title I programs with respect to the statutorygoals, the performance standards established by the Secretary,and the extent to which the programs enhance participantemployment and earnings reduce income support costs, improveparticipants' employment competencies compared to a non-participant control group, and, to the extent feasible, increasethe level.of total employment beyond that in the absence of theprograms.
Section 133(b) requires the Secretary to establish aresearch program that relates to addressing economic dislocation,facilitating the transition of permanently laid off workers toreemployment, and upgrading the skills of employed workers.Section 133(b) (2) requires the secretary to develop and maintainstatistical data relating to permanent layoffs and plantclosings, and to publish a report based on such data us soon aspracticable after the end of each calendar year. This provisionis currently contained in section 461(e) of the Job TrainingPartnership Act.
Section 133(c) requires the Secretary to conduct a programof demonstration projects to develop and improve the methods foraddressing economic dislocation and promoting worker adjustment.Projects that may be funded include those that upgrade the skillsof employed workers who are at risk of being permanently laidoff, and those that assist in the conversion or restructuring of
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businesses in order to avert plant closings or substantiallayoffs. Demonstration projects are limited to three years'duration and each project must contain an evaluation component.
Section 134 requires the Secretary to provide staff trainingand technical assistance to States, substate grantees, careercenters, communities, business and labor organizations, serviceproviders, industry consortia, and other entities. Such trainingand technical assistance may be provided through grants,contracts or other arrangements, and is intended to enhance thecapacity of these parties to deliver effective adjustmentassistance services and to avert plant closings or substantiallayoffs. The assistance may include development of managementinformation systems, customized training programs, anddissemination of computer-accessed learning systems. Trainingand technical assistance provided under this section must becoordinated with the activities of the Capacity Building andInformation and Dissemination Network established under section453 of the Job Training Partnership Act.
Section 135 provides Federal by-pass authority for operationof the program. If a State chooses not to participate in theprogram, the Secretary is to use the funds that would be allottedto the State to provide services to eligible workers in that
State.
Part C of title I establishes performance standards andquality assurance systems.
Section 151 requires the Secretary to establish a processwithin each State to promote the development of a customerservice compact among the parties administering title I programs:the Secretary, the Governor, each substate grantee, and each
career center. The compact is an informal agreement rather thana formal legal document. It is to identify the shared goals andvalues that will govern the administration of the program, therespective roles and responsibilities of each party, methods for
ensuring that the satisfaction of participants with servicesreceived is a primary consideration in the administration of theprogram, and other matters on which there is agreement. Thiscompact reflects a new customer-driven view of the relationshipbetween the local, State and Federal partners in providingemployment and training services. It is a pledge to deliverquality customer services, and is part of the process tocontinuously develop customer-based performance measures andimprove performance. Each year, the partners will meet todiscuss goals and strategies for serving their customers in thecoming year.
Section 152 establishes performance standards for title I.Section 152(a) requires the Secretary, after consulting with theSecretary of Education, Governors, substate grantees, and career
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centers, to prescribe separate performance standards for substategrantees and career centers. The standards are to be based onfactors the Secretary determines are appropriate, and may include(1) placement; (2) the acquisition of skills based on the skillstandards and certification system endorsed by the National SkillStandards Board established under the Goals 2000: Educate AmericaAct; (3) participant and employer satisfaction with servicesprovided and employment outcomes; (4) employer satisfaction withthe job performance of the individuals placed; and (5) thequality of services to hard-to-serve populations, such as low-income and older workers.
Section 152(b) requires each Governor to prescribeadjustments to the Secretary's standards, within parametersestablished by the Secretary and after consultation with substategrantees and career centers. Such adjustments must be based on(1) economic, geographic and demographic factors, and (2)characteristics of the population to be served.
Section 152(c) specifies that the Governor is to providetechnical assistance to substate grantees and career centers thatfail to meet performance standards under uniform criteriaprescribed by the Secretary. Governors must report annually tothe Secretary on the final performance standards and performancefor each substate grantee and career center, as well as thetechnical assistance the Governor plans and has provided. If asubstate grantee fails to meet performance standards for twoconsecutive program years, the Governor must terminate thegrantee agreement and designate another entity as the substategrantee. Similarly, the substate grantee must terminate thecareer center agreement and select another entity as a careercenter operator if the center has failed to meet standards fortwo consecutive years. Subsection (c) provides substate granteesand career centers with an appeal process to the Secretaryregarding such terminations.
Section 152(d) specifies that Governors are to awardincentive grants, out of the Governor's reserved funds, tosubstate grantees and career centers exceeding performancestandards. Incentive grants are to be used by substate granteesand career centers to enhance or expand services.
Section 153 requires that each substate grantee establishmethods for obtaining feedback from customers--individuals andemployers--on the effectiveness and quality of the services theyhave received and of the service providers. Surveys, interviewsand focus groups may be used to obtain this feedback. Theinformation obtained must be analyzed by the substate grantee ona regular basis, and a summary of the information and 1.:?,eanalysis is to be provided to the career center for use inimproving its administration of title I programs and aidingcustomer choice in selecting eligible service providers.
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Section 154 establishes eligibility requirements forproviders of education and training services. The purpose ofsuch requirements is to provide individual customers withinformation on the performance of service providers that willassist them in choosing types of services and where to obtainthose services, and to preclude ineffective service providersfrom receiving Federal funds.
Section 154(a) states that in order to be eligible toreceive title I funds, an education and training service providermust be eligible to participate in title Iv. of the HigherEducation Act or be determined to be eligible under thealternative eligibility procedures in subsection (b). Suchprovider must also provide the performance-based informationrequired in subsection (c).
Section 154(b) requires the Governor to establish analternative eligibility procedure for education and trainingproviders that desire to be funded under this Act, but are noteligible under the Higher Education Act. This procedure mustestablish minimum levels of performance and be based on factorsand guidelines developed by the Secretary, after consultationwith the Secretary of Education. The factors must be comparableto those that are used to determine an institution of highereducation's eligibility to participate in title IV programs. Ifthe participation of an institution of higher education inprograms under title IV of the Higher Education Act isterminated, the institution may not receive funds uncle::: theReemployment Act for a period of two years.
Section 154(c) describes the types of performance-basedinformation that must be submitted by all service providers(except for on-the-job training) in order to qualify under thissection. Such information is to be identified by the Secretaryin consultation with the Secretary of Education and may includeprogram completion rates, licensure rates, placement andretention in employment rates, the percentage of graduates whomeet skill standards and certification requirements, and thepercentage of students who obtain employment in an occupationrelated to the provider's program. Governors may prescribeadditional performance-based information to be submitted byproviders. It is intended that the Secretary will closelycoordinate with the Secretary of Education to promote consistencyin the information requested of service providers under thisprogram and under the Higher Education Act.
Section 154(d) specifies how the system of eligibilityrequirements is to be administered. Each State must designate aState agency with responsibility for compiling a list of eligibleproviders and performance-based information and disseminatingthis list to substate entities and career centers in the State.Service providers desiring to receive title I funds must submit
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the performance-based information described above to thedesignated State agency at such time and in such form as theagency requires. The designated State agency may providetechnical assistance to providers in developing the requiredinformation, including facilitating the use of Stateadministrative records.
If the State agency determines that information concerning aprovider is inaccurate, the provider is disqualified fromreceiving title I funds for two years, unless the provide-: candemonstrate that the information was provided in good faith. TheGovernor must establish a procedure for service providers toappeal disqualification. The procedure must provide anopportunity for a hearing and prescribe appropriate time limitsto ensure prompt resolution of the appeal.
The Secretary of lebor must also consult with the Secretaryof Education regarding the eligibility of institutions of highereducation and other providers of education and training under theReemployment Act and the Higher Education Act.
Section 154(e) specifies that providers of on-the-jobtraining are not subject to the eligibility requirementsdescribed in this section, but the substate grantee is requiredto collect performance-based information required by theSecretary from on-the-job training providers and disseminate thisinformation to career centers.
Part D of title I contains a variety of requirementsgenerally applicable to all program under title I. Theseprovisions are adapted almost exclusively from the provisionscontained in part C of the Job Training Partnership Act and alsoincorporate a labor consultation provision from section 311 ofJTPA.
Section 161 contains general program,requirements.First, it prohibits the use of funds under this title to induce,encourage, or assist relocations if the move results in the lossof employment at the original site. In addition, funds cannot beused for 120 days for on-the-job training, customized or skilltraining, or company specific assessment of job applicants oremployees for an establishment that has relocated, if therelocation led to loss of employment at the original site. TheSecretary must investigate allegations that funds under thistitle have been improperly used. Where the Secretary determinesa violation by a State, substate area, or substate grantee,repayments of misspent funds to the Treasury is required. TheSecretary is also required to collect an additional amount equalto the repayment unless the violators demonstrate they neitherknew nor could have known the funds were improperly used, andthese funds would be provided to the title I program.
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Second, the section requires that efforts be made to developprograms under this title to encourage occupational development,upward mobility, the development of new careers, and to overcomesex-stereotyping in non-traditional employment.
Third, the section authorizes joint agreements or contractsbetween substate grantees to pay or share education, training,placement or supportive services.costs under this title.
Fourth, the section establishes limitations on OJT.Payments to employers for OJT may not exceed the average of 50percent of wages paid to program participants. In addition, OJTis limited to the period generally necessary to acquire skillsrelated to the occupation, but is not to exceed 6 months. OJTcontracts must specify the type and duration of training, and OJTcontracts with brokers must include additional information onservices to the client by the broker and the employers.Contracts are prohibited with employers who have exhibited apattern of not providing OJT participants with regular employmentafter the training period with wages and benefits comparable toother employees.
Fifth, charging an individual a fee for the placement orreferral of that individual in or to a training program underthis title is prohibited.
The section also contains provisions that prohibit subsidyof private for-profit employment; cover the retention of programincome by public and nonprofit entities; specify notification andconsultation requirements; permit cooperative agreements betweenStates; prohibit funding for public service employment except fordisaster relief employment assistance; prohibit funding foremployment generating and related activities except for disasterrelief employment assistance; and cover Federal real propertyrequirements.
Section 162 provides standards for the wages to be paid toparticipants in training.
Section 163 provides labor standards relating to generalworking conditions; health and safety standards; workers'compensation; equitable treatment; prohibition of displacement;relationship with organized labor, including the requirement thatprograms under title providing services to a substantial numberof labor organization members will be established only after fullconsultation with the organization.
Section 164 provides for grievance procedures and theremedies available to grievants.
Part E of title I contains fiscal administrative provisionsgoverning title I. These provisions are adapted from the
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provisions contained in part D of title I of the Job TrainingPartnership Act. This part assumes that the Office of Managementand Budget Circulars A-102 and A-87, governing administrativerequirements and cost principles applicable to Federal grantprograms, will not apply to title I. Rather, the provisions ofpart E, many of which are similar to the Circulars, will apply.Currently, these Circulars do not apply to title II or title IIIof the Job Training Partnership Act.
Section 171(a) directs that appropriations under title I forany fiscal year shall be available for obligation only on thebasis of a program year, which begins on July 1 in the fiscalyear for which the appropriation is made.
Section 171(b) authorizes recipients to expend fundsobligated in a program year either during that program year orthe two succeeding program years.
Section 172 contains procedural requirements regarding thepublication of formula allocations and allotments, and anydiscretionary allocation formula.
Section 173 authorizes the Secretary to monitor allrecipients of financial assistance under title 7, and to conductinvestigations to determine compliance with the title andimplementing regulations.
Section 174(a) contains requirements for States to follow inestablishing fiscal controls and fund accounting proceduresnecessary to assure the proper disbursal of, and accounting forFederal funds paid to recipients under title I.
Section 174(b) contains'the requirements and procedures tofollow it the event the Governor determines that there is asubstantial violation of the Act or its regulations.
Section 174(c) specifies requirements for repayment of fundsby recipients of amounts found not to have been expended inaccordance with title I.
Section 174(d) establishes liability of recipients forrepayment of funds, and specifies conditions for the Secretary'simposition of sanctions against a recipient.
Section 174(e) gives the Secretary emergency authority toterminate or suspend financial assistance, when it is deemednecessary to protect the integrity of funds or ensure the properoperation of the program.
Section 174(f) requires the Secretary to take action ororder corrective measures with respect to participants who have
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been discharged or discriminated against, or who have filed acomplaint or been denied a benefit.
Section 174(g) specifies that the remedies under section 174are not to be exclusive remedies.
Section 175 requires each recipient of financial assistanceto maintain records on funds, participants and programs, and keepsuch records for the inspection of the Secretary, the InspectorGeneral, and the Comptroller General. The section also specifiesthe responsibilities of fund recipients for maintainingmanagement information systems, financial records, and monitoringthe performance of service providers. Each Governor mustestablish record retention requirements.
Section 176 establishes procedures for administrativeadjudication to be used whenever any applicant for financialassistance is dissatisfied because the Secretary has made adetermination not to award such assistance.
Section 177(a) makes programs under title I subject to thenondiscrimination provisions of the Age Discrimination Act of1975, Section 504 of the Rehabilitation Act, title IX of theEducation Amendments of 1972, and title VI of the Civil RightsAct of 1964. Section 177(a) also prohibits discrimination undertitle I on the basis of race, color, religion, sex, nationalorigin, age, disability, or political affiliation or belief;prohibits employment of participants on the construction,operation or maintenance of religious facilities; prohibitsdiscrimination against participants in title I because of theirstatus as participants; and allows participation in title Iprograms of certain aliens and refugees.
Section 177(b) establishes procedures to be used by theSecretary whenever the Secretary determines that a State or otherrecipient has failed to comply with a provision of law orregulation governing nondiscrimination.
Section 177(c) authorizes the Attorney General to bringcivil action in any appropriate U.S. district court forappropriate relief in discrimination cases.
Section 178 provides for review in the courts of appealswith respect to the Secretary's final determinations to award ornot award financial assistance, terminate assistance, withholdfunds, or otherwise sanction a recipient, or if any interestedparty is dissatisfied with or aggrieved by any final action ofthe Secretary.
Section 179 authorizes the Secretary to prescrthe rules andregulations, accept gifts to carry out title I programs, allocateor spend funds, and utilizes services and facilities of other
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Federal, State, or substate agencies. Section 179 also prohibitsfinancial assistance to be used for political activities.
Section 180 specifies that no authority to enter intocontracts or financial assistance agreements under title I shallbe effective except to the extent or in such amount as areprovided in advance in appropriation Acts.
Section 181 amends section 665 of title 18, United StatesCode, to provtde criminal penalties for anyone who knowinglyenrolls an ineligible participant, embezzles or steals any money,assets or property of a program assisted under title I, or whowillfully obstructs or impedes a Federal investigation conductedunder title I.
Section 182 provides that, upon enactment of this Act,references in other statutes to the Job Training Partnership Actshall be deemed also to refer to the Reemployment Act of 1994.
Part F contains miscellaneous provisions relating to titleI.
Section 191 establishes July 1, 1995 as the effective dateof title I.
Section 192 terminates the EDWAA program (sections 301-324of the Job Training Partnership Act (JTPA), the DefenseConversion Adjustment Program, the Defense DiversificationProgram, and the Clean Air Employment Transition AssistanceProgram on July 1, 1995. Funds authorized under these programswill be permitted to be expended until they are exhausted.
The Disaster Relief Employment Assistance Program, Title IV-J of JTPA and the mass layoff study provisions in section 462(e)of JTPA (which are transferred to this Act) are also terminatedon July 1, 1995.
Section 193 provides the Secretary with general authority toestablish rules and procedures to provide for an orderlytransition from the terminated programs to the comprehensiveprogram established under title I.
Title // contains retraining income support and unemployment:dmpensation flexibility provisions. Part A contains theprovisions which would establish a system of retraining incomesupport for unemployed individuals in long-term training.
Section 201 would establish the retraining income supportprogram. The program is designed to assist permanently laid-offindividuals who are participating in training programs afterthose individuals have exhausted all unemployment compensation towhich they may have been entitled under State or Federalunemployment compensation laws.
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Suction 202 would require, subject to the availability offunds in the account established by part B of the title, paymentof retraining income support to individuals who meet theeligibility requirements of subsections (a), (b) and (c).Subsection (a) describes those requirements for individuals whohave thxee years or more of work with the employer from which theindividual was laid-off. Subsection (b) describes theeligibility requirements for individuals who have been determinedto be adversely affected due to international trade under atemporary certification procedure established by part D of thetitle. Subsection (c) would extend eligibility, beginning inprogram year 2000, for retraining income support to individualswho have at least one year, but less than three years, ofemployment with the employer from which they were laid-off and toindividuals who have worked for a previous employer in theoccupation for one year or more and in the industry of the jobfrom which they were laid off.
Subsection (a) would become effective for weeks beginningafter July 1, 1995. Subsection (b) would be effective betweenJuly 1, 1995 and before October 1, 1999. Subsection (c) wouldbecome effective for weeks beginning after September 30, 1999.
In general, the eligibility requirements are intended toprovides retraining income support to individuals who have (1)been permanently laid off (as defined in section 203), (2)received (or would have received had they applied) unemploymentcompensation as a result of the layoff, (3) exhausted all rightsto unemployment compensation (or would have exhausted had theyapplied), and (4) are participating and making satisfactoryprogress in an approved education or training program as part ofa reemployment plan developed for the individual by an agencycertified by the Secretary to develop such plans.
In addition, the bill would generally require individuals tobe enrolled in an education or training program by the later ofthe 16th week after the permanent layoff or by the 14th weekafter he, or she, is aware that the layoff is permanent in orderto qualify for retraining income support. In situations wherethere were extenuating circumstances that justified a delay inenrolling in such a program, individuals would be able to get a30 day extension from the enrollment date requirement. Inaddition, individuals who have been issued a certificate ofcontinuing eligibility under section 120 would have until thesixteenth week after their separation from the subsequentemployment to enroll in training.
Subsection (d) would provide that periods of temporarylayoff, of up to 26 weeks, would be counted in determining the'length of employment with the layoff employer. In addition,subsection (d) describes other non-work periods that would be
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included in determining the length of employment with the layoffemployer. These include the following:
o up to 7 weeks in any one-year period of employer-authorized leave or in service as a full-time laborrepresentative;
o up to 12 weeks in a one-year period for conditions thatare described in section 102 of the Family and MedicalLeave Act of 1993; and
o up to 26 weeks in any one-year period for a compensabledisability under worker's compensation or for call-upfor active duty in the Armed Forces of the UnitedStates.
Subsection (e) would make it clear that for the purpose ofdetermining an individual's length of tenure with an employer,all jobs worked by an individual that are covered by a multi-employer pension plan defined in ERISA, and all jobs worked thatwere obtained through a single hiring hall, would be consideredemployment for the same employer. In addition, the subsectionwould include as employment for the same employer all employmentfor a predecessor employer or a joint employer. As a result ofthe inclusion of employment for a predecessor employer, employeeswho work for a business that has been the subject of a merger,sale or spinoff would not have their job tenure reduced as aresult of that transaction. AB a result of the inclusion ofemployment for joint employers, employees who are leased toanother employer would suffer no diminution of their job tenureas a result of the leasing.
Subsection (f) would provide that brief breaks of up totwenty-eight days, from an education or training program,providing the individual was participating in the program beforethe break and the break is provided undei the program, would betreated as a period in training. AB a result, an individualcould continue to receive retraining income support during such abreak.
Section 203 would set the weekly retraining income supportamount payable to an eligible individual at the amount equal tothe most recent benefit amount payable to the individual for aweek of total unemployment under the State's unemploymentcompensation law. That amount would be reduced, dollar fordollar, by any training income support provided for that sameweek under another Federal program. The weekly amount would alsobe reduced dollar for dollar by any income earned by theindividual in employment that exceeds half of the individual'sweekly retraining income support.
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section 204 would set the maximum amount of retrainingincome support that is payable to an individual.. Undersubsection (a), individuals who are either eligible forretraining income support under section 202(a), or would havebeen eligible for income support under the trade adjustmentassistance program, would be eligible for up to 52 weeks ofretraining income support in a 104 week period beginning with thedate of permanent layoff. Under subsection (b), individuals withat least one, but less than three, years of work with the samelayoff employer (or with at least one year with an employerimmediately preceding employment with the layoff employer in thesame occupation), would be limited to 26 weeks of retrainingincome support within a 78 week period beginning with the date ofpermanent layoff. Both subsections (a) and 00 would reduce theamount of retraining support by the amount the individual hasreceived from extended or emergency unemployment compensation.
Subsection (c) would prohibit the payment of retrainingincome support to an individual who receiving remuneration froman on-the-job training program.
Subsection (d) would address the rare situation where anindividual becomes eligible for extended unemploymentcompensation after he, or she, has received the maximum amount ofretraining income support. In such a case, the number of weeksof extended benefits would be reduced by the number of weeks thatthe individual was entitled to retraining income support.
Section 205 would authorize the Secretary to enter intoagreements with the States to pay retraining income support toeligible individuals. Such agreements would, among other things,require the States to notify applicants that participation in aneducation and training program is a requirement for the receiptof retraining income support and to provide for a system ofvoluntary withholding of Federal individual income tax.
Section 206 would require the Secretary to establish asystem to pay retraining income support to individuals in a Statewhere there is no agreement for the payment of such support withthe State.
section 207 would limit the liability of public officials inmaking payments under this title.
section 208 describes the procedures which would have to befollowed in cases of fraud and overpayment. Under subsection(a), individuals who receive overpayments would be liable torepay the amount overpaid. However, repayment could be waived ifit were determined that the payment was made without fault on thepart of the individual and that requiring repayment would becontrary to equity and good conscience. The Secretary couldrequire a State tl recover any overpayment by deducting such
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overpayment from any other unemployment compensation payable tothe individual under State or Federal law, as long as the amountdeducted would not exceed 50 percent of the amount otherwisepayable.
Subsection (b) would define fraud and would specify that anindividual who has been found to have committed such would, inaddition to any other penalties provided by law, be ineligiblefor any further payments of retraining income support.
Subsection (c) would provide that no repayments ordeductions could be made until notice and a fair hearing havebeen provided to the individual and the determination has becomefinal. Under subsection (d) amounts recovered would be returnedto the Retraining Income Suppor: Account which would beestablished by section 221.
Section 209 would provide for a penalty of a fine of $1000or imprisonment for not more than a year, or both, for anyone whomakes a false statement of S material fact or who fails todisclose a material fact for the purpose of obtaining orincreasing any retraining income support payment.
Section 210 would define the terms specific to part A of thebill.
Section 211 would authorize the Secretary of Labor to pre-scribe such regulations as may be necessary to carry out part A.
Section 212 would provide that the provisions of part Abecome effective on July 1, 1995.
Subpart II establishes a Retraining Income Support Account.Section 221 would amend Title IX of the Social Security Act toinclude a new section 911 establish a Retraining Income SupportAccount as a separate book account in the Unemployment TrustFund. For fiscal years 1996 through 2000, this new account wouldbe funded from an annually escalating fraction of the proceeds ofthe 0.2 percent Federal surtax collected under section 3301 ofthe Internal Revenue Code. Beginning in fiscal year 2001, theentire 0.2 percent will be directly deposited into the account.The flow of funds to oth-r Federal accounts (ESAA, EUCA, FUA)would not be affected by .ransfer of funds to this account, andthe account would not participate in the borrowing among Federalaccounts required by section 910. At all times spending forretraining income support would be capped at the amount of fundsin the account.
The new section 911 of the Social Security Act would providefor a permanent appropriation of the funds in the RetrainingIncome Support Account. This section would also provide for thetransfer of funds to the States that have entered into agreements
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to pay retraining income support. Under the section, theSecretary from time to time would transfer funds for the paymentof that support. All money received by a State under thissection would have to be used solely for the payment ofretraining income support, except that deductions from a paymentwould be allowed for the purpose of paying health insurance orwithholding Federal individual income tax if the recipient of thepayment so elected. Any funds not so used in accordance withthese provisions would be returned to the Retraining IncomeSupport Account.
Section 222 would amend section 901(c) of the SocialSecurity Act to permit payment from the Employment SecurityAdministration Account (ESAA) for administrative expensesincurred by States in retraining income support payments.
Section 223 sets forth conforming amendments to the SocialSecurity Act and the Internal Revenue Code. Subsection (a) wouldamend section 905 the Social Security Act to adjust the fundingof the Extended Unemployment Compensation Account to take intoaccount the funding of the Retraining Income Support Account.Subsection (b) would amend section 3302 of the Internal RevenueCode to reduce the credit employers in a particular state receivefor contributions to a State unemployment fund by 7.5 percent ifsuch State did not enter an agreement under section 205 toadminister a program for the payment of retraining incomesupport, or did not fulfill its commitments under such anagreement.
Part C contains the changes in the Tax Code that arenecessary for financing the costs of the retraining incomesupport program.
Section 231 would provide for a permanent extension of the0.2 percent surtax that is scheduled to expire at the end ofcalendar 1998. For budget purposes, the retraining incomesupport program is primarily financed by program offsets untilfiscal year 2000. In that and succeeding fiscal years, theprogram will be financed entirely by the FUTA surtax.
Section 232 would amend the Tax Code to require States toallow individuals receiving unemployment compensation orretraining income support to have Federal individual income taxwithheld at a rate of 15 percent from such compensation on avoluntary basis. States would be required to conform theirunemployment compensation laws to provide for voluntarywithholding by January 1, 1996. Conforming amendments would bemade to allow the use of trust fund monies to pay for thewithholding of Federal individual income tax.
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Part D provides for the integration of trade-impactedworkers into the Comprehensive Reemployment System establishedunder title I and part A of title II of this Act.
Section 241 would phase out both the Trade AdjustmentAssistance program and the NAFTA Transitional AdjustmentAssistance program. Under subsection (b), those individualsreceiving assistance under these programa before July 1, 1995would be able to receive the balance of their benefits.
Section 242 would establish a transitional certificationprogram for trade-impacted'individuals. Subsection (a)establishes within the Department of Labor a temporary,transitional certification program. Upon certification, trade-impacted workers would be eligible for services under thecomprehensive reemployment.program authorized by title I andincome support under part A of title II. The certificationprocess would be the same as is carried out under the current TAAprogram.
Subsection (b) sets forth the components of the transitionalcertification program. Paragraph (1) sets forth the'eligibilityrequirements for certifying a group of workers. Paragraph (2)e,"tablishes a petition process by which groups of workers maypetition for certification. Paragraph (3) details the process bywhich the Secretary is to make a determination on such apetition, and excludes those whose last layoff from an impactedfirm was more than one year before the date of the petition onwhich the certification was granted. In addition, paragraph (3)would require the Secretary to publish a summary of thedetermination in the Federal Register, and also authorizes theSecretary to terminate certifications for firms or subdivisionswhere layoffs from those entities are no longer attributable toforeign trade. Paragraph (4) would give the Secretary the powerto subpena witnesses and documents necessary for the making ofsuch a determination.
Subsection (c) limits the filing period for petitions forcertification under the transitional program to the period afterJune 30, 1995 and before July 1, 1999.
Part I includes amendments to the Federal Unemployment TaxAct which would permit States to amend their laws to payunemployment compensation under a short-time compensation programto an individual who is working reduced hours for the employer,and to pay reemployment bonuses to certain individuals.
Section 251 is basically a technical amendment which wouldredefine the current definition of short-time compensationprogram as it was defined in Title IV of the Unemployment
V Compensation Amendments of 1992 (P.L. 102-318) and include thatdefinition in section 3306(u) of the Federal Unemployment Tax
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Act. The short-time compensation program is designed to avertlayoffs. Under the program, a worker's hours are reduced in lieuof a layoff and the worker is eligible for unemploymentcompensation based on the proportion of such reduction.
Suction 252 would permit States to amend their laws to offerreemployment bonuses equal to no more than four times theindividual's weekly amount of unemployment compensation toindividuals who are: unemployed; eligible for unemploymentcompensation, determined as likely to exhaust their unemploymentcompensation; and who find full-time employment within no morethan 12 weeks from the date of filing their initial claim forunemployment compensation. In addition, the new employment mustbe with an employer other than the one with whom the individualwas employed prior to receiving unemployment compensation, andthe new employment must continue for at least four months. AState would only be allowed to use this program if it did not addany additional costs to the Unemployment Trust Fund and if theState has a plan for implementing the program that is approvedby the Secretary.
Appropriate conforming amendments would also be made to thewithdrawal standards in section 3304(a)(4) of the FederalUnemployment Tax Act and section 303(a) (5) of the Social SecurityAct.
Section 253 would remove the sunset provision from the Self-Employment Assistance Program, which provides self-employmentallowances in lieu of unemployment compensation to assistunemployed workers in starting businesses and becoming self-employed. The sunset provision discourages States fromdeveloping the supportive program, including entrepreneurialtraining, that is to accompany the self-employment effort.
Section 254 provides that the provisions of title II takeeffect on the date of enactment.
Title III of the bill would establish a program to encourageStates to develop and implement Statewide networks of one-stopcareer centers. These networks would provide a common point ofaccess to employment, education and training information andservices to students, workers, and employers. The centers wouldmake services available under employment and training programsadministered by the Secretary and would encourage theparticipation of other Federal, State and local human resourceprograms.
Section 301 describes the purposes of title III. Theseinclude: establishing a national program of grants and waiversof Federal statutory and regulatory requirements to provideStates with the opportunity to develop and implement one-stopcareer center networks; providing seed money to encourage a
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flexible, nationwide system of one-stop career centers; promotinguniversal access to a comprehensive menu of quality employment,education and training information and services; encouraging acustomer-oriented approach to the provision of services,including features to enhance customer choice and ensure that thesatisfaction of individuals with services received is a primaryconsideration in the administration of the program; establishinga governance structure composed of State, local and Federalpartners to ensure common goals, planning, service coordinationand oversight of the networks; and providing State and localareas with increased flexibility in the administration ofemployment and training programs in exchange for greateraccountability for outcomes.
Part A of title III contains the components of the voluntaryone-stop career center system. Section 311 identifies the sevenbasic components, which are: the establishment of a workforceinvestment board; the establishment of one-stop career centers;the provision of certain common services through the one-stopcareer centers; the participation of Federal employment andtraining programs; an agreement between all affected partiesregarding the operation of the centers; quality assurancesystems, including performance standards; and the establishmentof a State Human Resource Investment Council.
Section 312 describes the establishment and functions of theworkforce investment boards. Under section 312(a), the Governoris to designate one-stop service areas (OSSAs) within the State.The OSSAs are to be either the geographic boundaries of the labormarket areas within the State (although no service delivery areaor substate area may be subdivided among the OSSAs), the substateareas established under title I of the Act or a consortium ofsuch areas, or the service delivery areas established under JTPAor a consortium of such areas. In order to promote planning andstability, OSSAs may not be redesignated more frequently thanonce every four years.
Under section 312(b), for each OSSA, the chief local electedofficial or officials is to establish a workforce investmentboard. The board is to be composed of five categories ofmembers: first, representatives of private sector employers, whoare to be a majority of the board and consist of owners, chiefexecutives or chief managers of businesses; second,representatives of organized labor, and community-basedorganizations, who are to be at least 25 percent of the boardmembership and officers of their organizations; third,representatives of educational institutions; fourth, appropriatecommunity leaders, such as leaders of economic developmentagencies, human service agencies and institutions, veterans'organizations and entities providing job training; and fifth, achief local elected official, who is to be a non-voting member.
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The employer representatives are to be nominated by generalpurpose business organizations. The labor representatives are tobe nominated by recognized State and local labor federations,except that if the federations are unable to nominate asufficient number of representatives, individual workers may beincluded. The elected official is to be selected from among theelected officials in the area by such officials. All othermembers are to be nominated by interested organizations.
The appointments are to be made by the chief local electedofficial, except if there is more than one unit of government inthe OSSA the appointments are to be made in accordance with anagreement between the officials for such units. Absent suchagreement, the Governor would appoint the members. The size ofthe board is to be initially determined by the chief localelected official or officials, and thereafter by the boarditself. The members are to be appointed for fixed and staggeredterms, and any vacancy is to be filled in the same manner as theoriginal appointment. Any board member may be removed for cause.
The board is to elect a chairperson, from among members whoare not public officials or the head of a public agency, for aperiod to be determined by the board. The chairperson is toappoint appror late staff, who are not to serve concurrently asthe staff of any of the participating programs. The staff mayinclude an executive director.
The board is to be funded pursuant to the one-stop careercenter operating agreements, based on a budget requested by theboard and approved by the chief local elected official. Nomember of the board may cast a vote that would provide directfinancial benefits to that member.
A private industry council (PIC) may become a board with theapproval of the chief elected officials if the PIC meets thecomposition requirements or is reconstituted to meet suchrequirements. A State Human Resource Investment Council may, inany case where the OSSA is the State, be reconstituted as theboard.
The Governor is to certify that a board meets therequirements of this section.
Section 312(c) describes the six basic functions of theboard. First, the board is to develop strategic plans andprovide policy guidance to the workforce development programs inthe OSSA. The strategic plan is to be consistent with thestatewide strategic plan developed by the State Human ResourceInvestment Council and to include measurable objectives forimproving the quality and effectiveness of workforce preparation,development, and training in the OSSA and methods forcoordinating the programs to provide maximum coverage of the
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workforce, ensuring equitable access by population subgroups, andenhancing the delivery of services in the OSSA. Second, theboard is to utilize available labor market information and othermethods to identify available jobs and occupations in demandcurrently and in the future, the skill requiremmts relating tothose jobs and occupations, and the education sod trainingservices available to develop such skills. This information isto be used by the board to develop goals and identify activitiesto be provided by the workforce development programs. Third, theboard is to review and approve budgets for certain Department ofLabor-administered employment and training programs and reviewand provide recommendations regarding the budgets of otherprograms participating in the one-stop career centers. Fourth,the board is to assume the policy-making functions of the PICsunder title II of JTPA and of the Job Service EmployerCommittees. However, the board may not be the administrativeentity for programs under JTPA (as are some PICs), and may notoperate any other programs. Fifth, the board is to conductoversight of implementation of the strategic plan it develops andof the overall performance (rather than day-to-day operations) ofprograms participating in the one-stop system. Finally, theboard is to administer the procedures for establishing one-stopcareer centers described below.
Section 313 describes the two options for establishing one-stop career centers. Section 313(a) provides that the Governorand the chief local elected official or officials are to jointlyselect either a consortium option.or a multiple independentoperator option to establish the centers.
Section 313(b) describes the consortium option. Under thisoption, the one-stop career centers in the OSSA are to beadministered by a consortium that consists of the EmploymentService,'the substate grantee or grantees under title I of theAct, the administrative entity or entities under title II ofJTPA, the State UI agency (unless such agency chooses not toparticipate), and one or more additional partners that is eithera unit of government, a public or private service provider, or aconsortium of such units and providers.
A consortium may not be designated to operate a one-stopcareer center system unless it meets criteria described belowunder the multiple operator option and agrees to provide forcustomer choice by operating two or more centers, byadministering budget resources to reflect, at least in part, theextent to which each center is used by the public, and byproviding equitable access to centers by segments of thepopulation within the one-stop service area.
A consortium is also to identify to the board the proceduresthat would be used to integrate the administration of programs,
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such as procedures for cross-training of staff, collocation offacilities, and use of common forms and practices.
The Governor and chief local elected official or officials,in consultation with the workforce investment board, are toreview each consortium's performance and once every four years todetermine whether to renew the charter.
Section 313(c) describes the multiple independent operatoroption. Under this option, the board is to select two or moreentities to operate one-stop career centers pursuant to an openselection process. Any entity or consortium of entities mayapply to be selected as an operator, including employment serviceoffices, career center operators under title I, service deliveryareas or administrative entities under title II of JTPA,community colleges and area vocational schools, community-basedorganizations and other interested organizations.
There is a special rule under this selection option wherebyif the Employment Service or a consortium including theEmployment Service applies to be selected and meets the selectioncriteria, it must be selected as an operator.
The board is to publish information to notify organizationsand individuals in the area of: the selection procedures,including the estimated number of one-stop career centers neededand the proposed number of operators to be selected; theapplication procedures; the criteria'for selection; and otherinformation the board deems relevant. In determining the numberof one-stop career center operators to be selected, which is tobe two or more (see single operator exception below), the boardis to consider the size of the labor market, the number ofindividuals likely to use the centers, the number andcapabilities of potential operators, and equitable access bysegments of the population to the centers.
The selection :riteria are to be issued by the board,consistent with guiaelines provided by the Secretary, and basedon objective criteria and measures. An applicant may not beselected as an operator (under either selection option) unlessthe applicant demonstrates to the satisfaction of the board thatit would: operate a center that would provide the specifiedcommon services; utilize automated information systems toexchange information among centers; meet performance standards;ensure effective fiscal and program management; administer theprocess of referring participants to education and training in anobjective and equitable manner; and provide services on anondiscriminatory basis.
Notwithstanding the requirement for two or more operators,if only one applicant meets the selection criteria, thatapplicant may be selected as the sole career center operator in
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the OSSA. This open selerzion process, under this option, is tobe conducted once every four years.
The career centers eatablished ander either option are to beissued a charter by the board that will identify the number andlocation of one-stop centers in the OSSA and the entitiesoperating the centers, provide for display of a national one-stopcareer center logo, and znclude such other conditions as theboard determines is appropriate.
Section 313(e) contains "honest broker" provisions for one-stop career center operators that concurrently provide educationand training services to title I participants. If the workforceinvestment board, in an annual review, determines that suchcenter has engaged in a pattern of inappropriate referrals to theeducation and training services of the operator, the Board mayterminate the charter of the center or require the operator tocease providing services to participants as a condition forcontinuing to operate the center.
Section 314 describes the services to be provided throughthe one-stop career centers. Section 314(a) describes the basicservices which are to be made available to the public by eachcenter free of charge. These twelve services are: outreach,including efforts to expand awareness of training and placementopportunities for limited-English proficient individuals,disadvantaged youth and adults, and individuals withdisaoilities; intake and orientation to the center; assistance infiling an initial unemployment compensation claim; a preliminaryassessment of skill levels and service needs; local, regional andnational labor market information, including job vacancies, localoccupations in demand and the earnings and skill requirements forsuch occupations; job search assistance; job referrals and jobplacement assistance; information relating to job training andeducation programs (including student financial assistance),including the quality and requirements of su:n programs, andappropriate referrals to such proarams; info:lation cc_lectedpursuant to the performance standards and cuszomer feedbackrequirements; assistance in evaluating whether an individual islikely to be eligible for any participating programs; informationon programs and providers of depe-lent care and other supportiveservices; and soliciting and accer7ing job ordera submitted byemployers and referring individuals in accordance with suchorders.
Section 314(b) describes the intensive services that are tobe provided by the center in accordance with the operatingagreement and wh:zh must be made available to title Ipartzcipants whc are unable to ob-lain employment through thebasic services. These twelve ser :ces are: comprehensive andspecialized assessments of skill levels and service needs,including diagnostic testing and in-depth interviewing; the
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development of individual reemployment plans identifying theemployment goal, achievement objectives, and the appropriatecombination of services for an individual to achieve the goal;individualized counseling and career planning, including peercounseling and counseling and planning relating to nontraditionalemployment opportunities; group counseling, including peercounseling, which may be available to individuals jointly withimmediate family members, and may jnclude counseling on stressmanagement and financial management, and which shall be a basicservice for participants in title I under this Act; casemanagement and periodic review of progress toward the employmentgoal; job development; out-of-area job search allowances;relocation allowances; follow-up counseling; assistance in theselection of education and training providers; assistance inobtaining income support to enable an individual to participatein trainanc; and supportive services.
Section 314(c) describes specialized employer services whichmay be provided. These are: customized screening and referralof individuals for employment; customized assessment of the skilllevels of current employees; analysis of an employer's workforceskill needs; and other specialized services.
Section 314(d) authorizes the one-stop career centers toprovide such other additional services as are specified in theoperating agreement.
Section 314(e) authorizes a one-stop career center to chargefees for the intensive services, specialized employer services,and the additional services described above if the board approvesthe fees. However, no fees may be charged for any service anindividual is eligible to receive free of charge from aparticipating program unless there are no funds available underthe program to provide those services. All income received fromthe fees by a public or private non-profit center operator are tobe used to expand or enhance the services provided through thecenters.
Section 315 identifies the programs that are to participatein the operation of the one-stop career centers. Section 315(a)provides that the programs that are to make basic servicesavailable to participants through the one-stop centers are:programs under title I; programs under the Wagner-Peyser Act;programs under title II of JTPA; the Veterans' EmploymentService; the Senior Community Service Employment program undertitle V of the Older Americans Act; and programs authorized underFederal and State UI laws.
Of these proframs, title I programs are to provide basic andintensive services through one-stop centers (which are to replacethe career centers established under that title) . The Wagner-Peyser Act program is to make applicable basic and intensive
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services available only through the centers. The VeteransEmployment Service is to make applicable basic and intensiveservices available through the centers, but may also provide suchservices at other locations. All other identified programs maymake basic services available through other locations andproviders in addition to making them available through thecenters. All identified programs may provide additional servicesthrough the centers in accordance with the operating agreement.
Section 315(b) provides that other human resource programsmay also provide services through the centers and become a partyagreement if the board, the local elected official or officials,the Governor and executive officer of other participatingprograms concur. These programs may include the JobOpportunities and Basic Skills (JOBS) program, the Food StampEmployment and Training program, the Job Corps, veterans trainingprograms under title IV-C of JTPA, the Perkins Vocational andApplied Technology Education Act programs, Adult Education Actprograms, Vocational Rehabilitation Act programs, and programsunder the School-to-Work Opportunities Act.
Section 316 describes the operating agreements that are togovern the administration of the one-stop career center system inthe OSSA. The operators are tu enter into a written agreementwith the board and participating programs covering the operationof the centers. The Governor and chief local elected official orofficials must approve the agreement and are to oversee thedevelopment of the agreement, ensure that it meets applicablerequirements, and monitor its implementation.
Section 316(b) describes the contents of the agreement. Itis to identify: the services to be provided by the centers andthe extent to which the participating programs will provideservices through the centers; methods for the referral ofindividuals by the centers to appropriate services and programs;the financial and nonfinancial contributions to be made to thecenters by the participating programs, which are to be based onfactors including the number of participants served by thecenters and the quality of the services; the financial liabilityof the respective parties relating to the funds contributed bythe participating programs; the financial contributions to bemade for the administration of the workforce investment board byeach participating program; methods of administration andoversight; a description of how services are to be provided, suchas the methods for assessing the skills of individuals;procedures to ensure the utilization of a common local job bank;procedures to be used to ensure compliance with the statutory andregulatory requirements of the participating p: jrams; theduration of the agreement and procedures for am_ndment; and other1.rovisions the parties deem appropriate.
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Section 316(c) requires the parties to the written agreement(center operators, the workforce investment board, andparticipating programs) to develop an annual budget for the one-stop career centers and the workforce investment board. Thebudget for the board is subject to the approval of the localelected official, and the one-stop career center budgets aresubject to the approval of both the local elected official andthe Governor.
Section 317 describes the quality assurance systems relatingto the performance of the centers and workforce investmentboards. Section 317(a) describes the performance standardssystem. The Secretary is to prescribe separate performancestandards for the centers and boards. The standards for centersare to be based on factors the Secretary determines areappropriate. These factors may include: placement; retentionand earnings of participants in unsubsidized employment; theprovision of services to hard-to-serve populations; theacquisition of skills based on skill standards and thecertification system established and endorsed under the Goals2000: Educate America Act; the satisfaction of participants withservices provided and employment outcomes; the satisfaction ofemployers with the job performance of individuals placed; andmeasures of cost efficiency. The standards for workforceinvestment boards are to be based on the number of job openingsreceived and the proportion of employers listing such openings,the number of job openings filled, and the overall performance ofcareer centers in the one-stop service area. The Governor is toadjust the performance standards for centers and boards, withinparameters established by the Secretary, based on economic,geographic and demographic factors in the State and local areasand the characteristics of the population to be served.
The Secretary is to establish uniform criteria fordetermining whether a one-stop career center or workforceinvestment board fails to meet performance standards. TheGovernor is to provide technical assistance to one-stop careercenters and boards failing to meet performance standards and isto report annually to the Secretary on the performance of eachcenter and board and the technical assistance to be provided. Ifa center fails to meet the performance standards for twoconsecutive years, the board is to revoke the charter of thecenter. If the center is operated under the consortium option,the board is to select another entity to operate the centerpursuant to the multiple independent operator selection process.If the center operator was selected pursuant to that openselection process, then another operator is to be selectedpursuant to that same process. If a board continues to fail tomeet performance standards for two consecutive years, theGovernor must notify the Secretary and the board, and mustreplace the members of the board, direct the board to replacestaff, direct the board to replace the chairperson, or take other
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appropriate action. The board's revocation of a charter may beappealed by an operator to the Governor and then to theSecretary. A board may similarly appeal any sanctions imposed bythe Governor.
Section 317(b) describes the customer feedback process thatis to be in place to ensure that each center is responsive to theneeds of the individuals receiving jervices. Under thissubsection, the board is to establish methods for obtaining, on aregular basis, information from individuals and employersreceiving services through a center on the effectiveness andquality of the services. The feedback mechanisms may includesurveys, interviews, focus groups and other techniques. Theboard is to analyze the information obtained and provide asummary of the information and the analysis to the center for usein improving the quality of services.
Section 318 provides for the establishment of a State HumanResource Investment Council (HRIC) as part of the one-stop careercenter system. Such councils are authorized under title VII ofJTPA and are intended to consolidate separate advisory entitiesto provide the Governor with a source of coordinated andcomprehensive advice re:.ating to the administration of Federalhuman resource programs in the State. Those human resourceprograms include JTPA, Perkins Vocational Education, AdultEducation Act programs, JOBS, and the Food Stamp Employment andTraining programs.
Under this section, the State must establish a HRIC and theHRIC is to identify the human investment needs in the State andrecommend to the Governor goals for meeting those needs,recommend to the Governor goals for the development andcoordination of the human resource system in the State, prepareand recommend to the Governor a strategic plan ror accomplishingthe goals, and monitor the implementation and evaluating theeffectiveness of the plan (such plan is an optional activityunder JTPA). In addition, the HRIC is to advise the Governorwith respect to all aspects of the development and implementationof the one-stop career center syster... Such advice would relateto assessing the labor market, economic and workforce developmentneeds in the State, the designation of OSSAs, measures toevaluate the effectiveness of the workforce investment boards andto facilitate the provision of resources and technical assistanceto the boards, developing a mechanism for waiving State statutoryand regulatory requirements that would impede the one-stopsystem, and developing a strategy for collecting information toevaluate the effectiveness of the system and workforce investmentprograms in the State.
Part 13 of title III authorizes grants and waivers to promotethe development and implementation of the one-stop career centersystem.
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Section 331 authorizes planning and development grants.Section 331(a) authorizes the Secretary to establish a program ofcompetitive grants to the States to assist in the planning anddevelopment of a comprehensive Statewide network of one-stopcareer centers.
Section 331(b) provides that a State desiring a grant is tosubmit an application to the Secretary at the time, in themanner, and containing the information specified by theSecretary. The application is, at a minimum, to include atimetable and estimated amount of funds needed to plan anddevelop the one-stop career center system in the State and todescribe the manner in which the Governor, local electedoffidials, representatives of employees and voluntaryorganizations, community and business leaders, representatives ofaffected programs and service providers will work together in theplanning and development process.
Section 331(c) authorizes the planning grant funds to beused for activities including: identifying and establishing anappropriate State administrative structure; establishing broad-based partnerships to participate in the one-stop system;developing plans to establish the workforce investment boards andthe State Human Resource Investment Council; developing theprocess for selecting and chartering centers; supporting localplanning efforts; initiating pilot programs to test components ofthe system, such as designing common intake forms; analyzingState and local labor markets to assist in the design of thesystem; analyzing current statutory and regulatory impediments tothe establishment of the one-stop system and preparing waiverrequests; preparing the Statewide implementation plan required aspart of the application for an implementation grant; and otherrelated activities.
Section 332 authorizes State implementation grants. Section332(a) authorizes the Secretary to establish a program ofcompetitive grants to States to assist in the implementation ofthe Statewide one-stop career center system.
Section 332(b) provides that any State desiring a grant isto submit, with the agreement of the local elected officials fromthe OSSAs that are scheduled to immediately begin implementationof the system, an application to Secretary in accordance withprocedures specified by the Secretary. The application is, at aminimum, to contain: a plan for a comprehensive, statewide one-stop career center system that includes the seven basiccomponents described in part A; requests, if any, for waivers ofFederal statutory or regulatory requirements necessary toimplement the system; and other information specified by theSecretary.
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The comprehensive State plan is to: designate a fiscalagent to be accountable for grant funds provided under thissection; identify ehe OSSAs; identify ele OSSAB that willimmediately begin implementation and the implementation schedulefor the remaining OSSAa in the State; identify the workforcedevelopment programs that will participate in the system;identify the selection process option that will be used in eachOSSA; describe the performance standards the State intends tomeet; describe the collaborative procedures to be used by theGovernor, local elected officials and officials administering theparticipating programa; describe the procedures for ensuring theactive involvement of all affected parties, including employers,educators, labor organizations, community-based organizations,service providers, and State and local human resource agencies;specify the manner in which States will ensure equitableopportunities for jobseekers, students and employees to receiveservices from the centers; describe the way in which existingone-stop initiatives, if any, will be integrated into the one-stop system; identify the administrative and management systemsthat will be used, and tile resources that will be used tomaintain the system after the grant funds are exhausted.
Section 332(c) specifies the factors which will be givenspecial consideration in the evaluation of the State grantapplication. The factors are: the extent to which the State one-stop service areas are based on labor market areaa, the number ofFederal programs that will participate in the centers, inclusionof JOBS and Perkins vocational education programs in the one-stopsystem, the extent to which a State has already implementedcomponents of the one-stop system described in Part A, theproportion of the State's population that would be covered byone-stop service areas agreeing to immediate implementation, andthe extent to which the State will supplement access to the one-stop career center services through methods such as kiosks inshopping centers, libraries, community colleges and othercommunity organizations, and through personal telephones orcomputer lines,
Section 332(d) describes application review procedures. TheSecretary determines whether to approve the State's plan. Whenthe determination is positive, the Secretary further determineswhether to do one or more of the following: award animplementation grant; approve the State's request, if applicable,for a waiver; or inform the State of the opportunity to apply forfurther development funds, unless the State is receiving animplementation grant.
Section 332(e) prohibits the expenditure of grant funds forconstruction of new buildings.
Section 332(f) specifies that implementation grants are fora one-year period and are renewable for each of the two
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succeeding years if the Secretary determines the State is makingsatisfactory progress in implementing its plan.
Section 333 authorizes the waiver of Federal statutory andregulatory requirements that wou.'.1 impede implementation of theone-stop career center system. Section 333(a) provides that aState may, at any point during the development or implementationof the one-stop career center system, request that the Secretarywaive statutory and regulatory requirements relating to certainemployment and training programs administered by the Secretary ofLabor.
Section 333(b) authorizes the Secretary to waive therequirements of the statutes and (with the concurrence of theDirector of OMB) OMB circulars listed in subsection (c) andrelated regulations in response to a request from a State if fourconditions are met. These conditions are that: the Statesubmits a plan (containing information the Secretary requires)for a comprehensive statewide one-stop career center system thateither includes the seven basic components described in part A(this plan may or may not be part of an application for animplementation grant) or, while not including all thesecomponents, demonstrates that the one-stop system willsubstantially achieve the objectives of the one-stop system; theSecretary determines that the requirement requested to be waivedimpedes the ability of the State to implement the system; theState waives or agrees to waive similar provisions of State law;and the State has provided an opportunity for the State councilor the State Human Resource Investment Council and otherinterested entities and individuals to comment on the proposedwaiver and included such comments with the request. TheSecretary is to act promptly on each request and each waiver maybe approved for a period of up to four years. This period may beextended if the Secretary determines that the waiver has beeneffective in assisting the State in implementing the one-stopsystem.
Section 333(c) identifies the six statutes that may bewaived, which are: title I of this Act, JTPA, the Wagner-PeyserAct, title V of the Older Americans Act, title III of the SocialSecurity Act (which provides for UI administrative grants to theStates), and chapter 41 of title 38 (veterans employmentprograms). In addition, this section authorizes the Secretary towaive OMB circulars A-87 (relating to cost principles for Stateand local governments), A-102 (relating to grants and cooperativeagreements with State and local governments), A-122 (relating tonon-profit organizations), and the regulations at 29 CFR 97(relating to uniform administrative regulations for grants andcooperative agreements to State and local governments).
Section 333(d) provides that the Secretary may not waive anyrequirements of the statutes identified above that relate to:
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the basic purposes or goals of the affected programs; maintenanceof effort; the formula allocation of funds; the eligibility ofindividuals; public health or safety, labor standards, civilrights, occupational safety and health or environmentalprotection; or prohibitions or restrictions relating to theconstruction of buildings or facilities.
Section 333(e) provides that the Secretary is toperiodically review the performance of the States that have beengranted waivers and is to terminate a waiver if the State'sperformance is inadequate or the State has failed to waivesimilar requirements of State law.
Section 333(f) provides that if there is sufficientinformation from waiver requests to identify provisions of thecirculars or related regulations that consistently impedeimplementation of a one-stop system, the Secretary is to submit aplan to OMB to grant a general waiver for one-stop areas. TheDirector of OMB may approve the plan and authorize the Secretaryto grant these general waivers if the Director determines theplan would not jeopardize the integrity of Federal funds andwould be consistent with the objectives of title III.
Section 334 authorizes the pooling of administrativeresources. During the implementation of a one-stop system, aState may, at any poin.., on behalf of one or more one-stopservice areas, submit to the Secretary a plan for the pooling ofadministrative funds available under two or more of the mandatoryparticipating programs. Under the State plan, each participatingprogram may transfer administrative funds to the one-stop systemand allocate the transferred amount to administrative costs atthe time of transfer. No further allocation of the transferredfunds would have to be made to the particular program.Administrative funds so transferred must be spent only for theadministration of allowable activities under the one-stop careercenter system.
Notwithstanding section 31 U.S,C. 1301, which requires allfunds to be allocated to the source of their appropriation, orother provisions of law, the Secretary may approve a Statepooling plan if the Secretary deterMines the plan would notjeopardize the administration of the participating programs andwould facilitate implementation of the one-stop system. Wherepooling plans are approved, the Secretary is required toregularly review the performance of the applicable one-stopservice areas and to rescind the approval if the Secretarydetermines the area's performance does not adequately justifycontinuation of the plan or there has been a significant adverseeffect on the participating programs.
Section 334(c) provides that, upon approval of the Governor,real property purchased pursuant to UI administrative grants, the
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Reed Act, or the Wagner-Peyser Act before the effective date ofthis Act may be used for the one-stop career center. Undercurrent law, such property may only be used for UI or ESprograms, depending on the source of funds, and, if such propertyis to be used for any other purposes, it must be sold. Thischange will facilitate collocation and an effective one-stopsetting. Except if otherwise provided in a pooling arrangement,there are certain limitations included on the future use of suchfunds to pay for property used by the one-stop center in order toprotect the integrity of such funds.
Part C includes additional activities which support one-stopcareer center systems.
Section 351 provides for the development of a customerservice compact. The Secretary is to establish within each one-stop state a process, which includes an annual meeting, involvingall parties who administer the one-stop system--the Secretary,Governor, each workforce investment board, and each one-stopcareer center--to reach an informal agreement among the parties.The agreement is to relate to the shared goals and values thatwill govern administration of the system, the roles andresponsibilities of each party in tailoring and strengtheningparticipant services, methods to ensure that participantsatisfaction with services is a primary consideration inadministration of the one-stop system, and other appropriatematters.
Section 352 specifies additional State responsibilities forStates implementing a one-stop career center system. Theseinclude developing and operating administrative and managementsystems that promote the effective operation of the system;monitoring compliance of the workforce investment boards with therequirements of this title; and providing any necessary technicalassistance to workforce investment boards.
Section 353 defines additional Federal responsibilities.The Secretary is authorized to monitor all recipients of fundsunder the title for compliance with the title's provisions.The Secretary is required to provide staff training and technicalassistance to improve the capacity of the full range of publicand private partners in the one-stop system to develop andimplement the system, and to integrate the capacity-buildingactivities with the Information Dissemination Network establishedunder section 453 of the Job Training Partnership Act. Inaddition, the Secretary is to develop a national logo and namefor one-stop career centers as part of a nationwide workforcesecurity system, so that individuals will readily be able torecognize and access one-stop career centers wherever they arelocated. Finally, the Secretary is to provide for evaluation ofthe programs under this title, including their cost-effectivenessin achieving the intended purposes. The evaluations must use
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recognized statistical methods and techniques of the behavior andsocial sciences, including methods that control for selfselection, where feasible, and may include analyses of the costsand benefits of programs, participant and community impacts, andthe extent to which needs of various demographic groups are met,and the effectiveness of the various delivery systems.
Part D provides for the effective date of this title.Section 371 provides that the title is to take effect on July 1,1995, except performance standards, which take effect July 1,1996.
Titl IV establishes a National Labor Market InformationSystem that builds upon and strengthens existing capabilities atthe Federal, State and local levels.
Section 401 states that it is the purpose of the title toprovide for the development of a labor market information systemthat will provide locally-based, accurate, up-to-date, easilyaccessible, user-friendly labor market information, includingcomprehensive information on job openings, labor supply,occupational trends, wage rates and trends, skill requirements,and performance of programs providing requisite skills, and labormarket data necessary for the effective allocation of resources.
Section 402 requires the Secretary to develop, incoordination with other Federal, State and local entities, astrategy to establish a national labor market information system.This strategy must be designed to fulfill the labor marketinformation requirements of other specified Federal programs. Inimplementing the strategy, the Secretary is authorized to expendfunds authorized under this tItle and funds otherwise availablefor such purposes, and to enter into intergovernmentalcooperative agreements, award grants, and foster the creation ofpublic-private partnerships. The Secretary is also authorized toconduct research and demonstration projects.
Section 403 contains the components of the national labormarket information system. Section 403(a) specifies that theSecretary, in cooperation with Federal, State and local entities,and ppblic-private partnerships, is to develop a national labormarket information system that makes available the followinginformation: information on the local economy, automatedlistings of job openings and job candidates, growth andreplacement need projections, current supply of labor withspecific occupational skills and experience, automated screeningsystems to determine candidate eligibility for services, consumerreports on local education and training providers, results ofcustomer satisfaction measures for Career Centers, One-StopCareer Centers and other providers, national, State and substateprofiles of industries, and automated occupational and careerinformation and exploration systems.
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Section 403(b) requires the Secretary to promulgatetechnical standards necessary to promote efficient exchange ofinformation between the local, State and national levels,including standards to ensure that data are comparable.
Section 403(0) requires the Secretary, in consultation withthe Secretary of Education, other Federal agencies and State andlocal governments, to set standards for consumer reports, andcreate a mechanism for collection and dissemination of thereports.
Section 403(d) requires the Secretary to provide for theevaluation of national labor market information procedures,products and services, including cost-effectiveness and the levelof customer satisfaction. The evaluations may include analysesof the precision of estimates produced or collected, examinationof the uses of the data, appropriateness of the uses, andrelative data costs/benefits.
Section 404 requires the Secretary to coordinate theactivities of Federal agencies responsible for the collection anddissemination of labor market information, and to ensure theappropriate dissemination of information that promotesimprovement in the quality of labor market information.
Section 405 specifies that title IV will take effect on July1, 1995.
Title V amends title II of the Job Training Partnership Actto establish a new part D, "Reinvention Labs", permitting theSecretary to waive Federal statutory or regulatory requirementsrelating to programs for the economically disadvantaged youth andadults in order to promote program innovations.
Suction 501 adds the.new Part D to title II of JTPA. Thenew section 281 of part D states that the purpose of the part isto encourage innovative program designs to enhance the provisionof services to and outcomes for economically disadvantaged youthand adults, to develop knowledge relating to effective approachesto serving these groups, and to give service delivery areas(SDAs) greater flexibility in operating their programs inexchange for higher levels of accountability for results.
The new section 282 describes the process for applying for awaiver. Any SDA or consortium of SDAs that desires a waiver ofstatutory or regulatory requirements relating to parts A, B, or Cof title II of JTPA must submit an application to the Secretarythat includes a plan that incorporates innovative administrative,service delivery, or other program design components, measurablegoals and outcomes to be achieved, the statutory and regulatoryrequirements to be waived and the rationale, assurances that theSDA and State will participate in a rigorous evaluation to
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determine whether the goals and outcomes have been achieved, andother components and information the Secretary determines areappropriate.
The new section 283 authorizes the Secretary to waivestatutory or regulatory requirements if the Secretary determinesthey would impede the SDA in carrying out its plan, the SDA andState have provided interested entities and individuals anopportunity for comment and have submitted such comments to theSecretary, and the Secretary has approved the plan. The waiversmay not alter the purposes or goals of the affected program; theformula allocation of funds under the program; eligibilityrequirements; any law respecting publio-health or safety, laborstandards, civil rights, occupational safety or health, orenvironmental protection; or prohibitions or restrictionsrelating tc construction of buildings or facilities. TheSecretary is limited to approving 75 applications nationwide, andeach waiver is limited to 2 years, except that the Secretary mayextend the period of the waiver if it is determined the waiverhas been effective in enabling the SDA to carry out the purposesof JTPA (b::: in no case may waivers remain in effect after a datethat is 4 -sars after enactment of the Reemployment Act). Thesecretary 7.2st periodically review the performance of SDAsreceiving ..:aivers, and must terminate the waiver if theperformance of the SDA is inadequate to justify the waiver'scontinuation.
The new section 284 authorizes the Secretary to providetechnical assistance in the development and implementation of theprograms and requires the Secretary to conduct an evaluation ofthe program. The Secretary is to submit a report relating to theevaluation to the Congress not later than 5 years after enactmentof this Act.
section 502 makes a technical amendment to section141(d)(3)(B) of JTPA to add postsecondary vocational institutionsto the list of other postsecondary institutions that are exemptfrom breaking down costs for puri.oses of the JTPA program.
Section 503 rrovides that the Reinvention Lab provisions areto take effect or --the date of enactment and to terminate 5 yearsthereafter. The technical amendment to the tuition definitionwould take effect on the date of enactment.