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  • DOCUMENT RESUME

    ED 384 807 CE 069 523

    TITLE Workforce Development Act of 1995. Report together with Additional and Minority Views To Accompany S.143. 104th Congress, 1st Session.

    INSTITUTION Congress of the U.S., Washington, D.C. Senate Committee on Labor and Human Resources.

    REPORT NO Senate-R-104-118 PUB DATE Jul 95

    NOTE 173p. PUB TYPE Legal/Legislative/Regulatory Materials (090)

    EDRS PRICE MF01/PC07 Plus Postage.

    DESCRIPTORS Cost Estimates; *Employment Programs; *Federal Aid; Federal Legislation; *Federal Programs; *Job Training; *Labor Force Development; Program Costs

    IDENTIFIERS Congress 104th; Proposed Legislation

    ABSTRACT This congressional report addresses the Workforce

    Development Act of 1995 that would consolidate federal employment training programs and create a new process and structure for funding the programs. Contents include the following: a summary of the bill; background and need for the legislation; history of the legislation and votes in committee; committee views; cost estimate; regulatory impact statement; section-by-section analysis; additional views of: Senator DeWine; Senator Pell; and Senators Pell, Simon, Jeffords, and Kennedy; minority views of Senators Kennedy, Dodd, Simon, Harkin, Mikulski, and Wellstone; and changes in existing law. Appended is a letter to Senator Nancy Kassebaum from Howard Dean, Tommy G. Thompson, Mel Carnaham, and Arne H. Carlson of the National Governors

    Association. (YLB)

    ***********************************************************************

    Reproductions supplied by EDRS are the best that can be made from the original document.

    ***********************************************************************

  • 104TH CONGRESS 1st Session SENATE

    Calendar No. 153 { REPORT

    104-11E

    0 WORKFORCE DEVELOPMENT ACT OF 1995 00

    co JULY 24 (legislative day, JULY 10), 1995.Ordered to be printed

    O

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

    REPORT

    together with

    ADDITIONAL AND MINORITY VIEWS

    [To accompany S. 1431

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

    CONTENTS

    Page I. Summary of the bill 2

    H. Background and need for the legislation 4 III. History of the legislation and votes in committee 5 IV. Committee views 13 V. Cost estimate 38

    VI. Regulatory impact statement 53 VII. Section-by-section analysis 54

    VIII. Additional views 70 IX. Minority views 76 X. Changes in existing law 96

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    I. SUMMARY OF THE BILL

    TITLE I

    State SystemsStatewide work force development systems are established through a single allotment of funds to each State. A minimum of 25 percent of the funds are for work force employment activities, such as creating one-stop career centers or providing job training. Work force employment activities are to be planned and administered under the authority of the Governor. A minimum of 25 percent of the funds are for work force education activities, in- chiding vocational and adult education. Work force education ac- tivities are to be planned and administered under the authority of the State Educational Agency.

    The remaining 50 percent of the funds are to be used for any work force employment or education activities 'as a State decides. The only requirement is that a portion of the funds be used to sup- port school-to-work activities, broadly defined. The decision to allo- cate funds from this "flex account" is made through a collaborative process involving, among others, the Governor, the State edu- cational agency, and the private sector.

    State Plans Through this collaboration, the stakeholders de- velop an overall strategic plan for the State and designate which employment or education activities the State will emphasize through the flex account. State goals and benchmarks are estab- lished in the plan, as well as how the State will use its funds to meet those goals and benchmarks.

    In addition, the plan includes how the State will establish sys- tems for one-stop career centers, labor market information, and ac- countability for job placement, as described in the bill. The plan also describes how the adult and vocational education needs of the State will be met, including the allocation of funds between adult and vocational education. and within vocational education between secondary and postsecondary vocational education programs.

    State and Local EffortsProvisions is made for distribution of work force employment and education funds at the local level. The Governor must enter into agreements with local communities for the delivery of work force employment, school-to-work, or economic development activities, where appkopriate. If that is not possible, Governors must provide local communities the opportunity to com- ment on the manner in which funds will be spent at the local level. States are not required, to establish State and local work force de- velopment boards, but if such boards are established, the State may use flex account funds for economic development activities aimed at improving the skills of the State's current workers.

    AccountabilityEach State must, at a minimum, establish spe- cific benchmarks designed to meet the goals of providing meaning- ful employment and improving academic, occupational, the literacy skills. Incentives may be given or sanctions may be imposed, de- pending upon the progress of the State toward meeting such goals and benchmarks.

    TITLE II

    TransitionStates may obtain waivers during the 2-year transi- tion period in order to begin the integration of existing programs.

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    Each State must submit an interim plan during the first year of transition, and States that are capable of establishing statewide systems after the first year may do so.

    Job Corps and At-Risk YouthJob Corps remains as a residen- tial program for at-risk youth, but is integrated with the statewide work force development system. Primary responsibility for the op- eration of Job Corps centers is transferred to the States, and each center must be linked into the one-stop career center system and other local training and education efforts.

    During the 2-year transition period, a national audit of the Job Corps program will be performed. Based on the results of the audit and other criteria, the Secretary of Labor must close 25 underperforming Job Corps centers.

    Funds saved as a result of these closures, as well as additional funding, will be allocated to the State for work force development activities directed specifically for at-risk youth.

    TITLE III

    Federal PartnershipA Federal partnership is established to ad- minister all Federal responsibilities, including approval of the State plans, negotiation of benchmarks with each State, and dis- semination of best practices.

    A governing board, composed of 13 members, will manage the partnership. The board is composed of a majority of representatives from business and industry, and representatives of labor, education and Governors. Upon the establishment of the board, the Office of Vocational and Adult Education at the Department of Education and the Employment and Training Administration at the Depart- ment of Labor will be eliminated.

    Final authority for the approval of State plans and disbursement of funds, however, remains with the Secretary of Education and the Secretary of Labor.

    National ActivitiesOther national activities include national as- sessments of vocational education, a national labor market infor- mation system, and establishment of a national center for research in education and work force development.

    TITLE IV

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

    TITLE V

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

    4

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    TITLE VI

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

    II. BACKGROUND AND NEED'FOR THE LEGISLATION

    Since the late 1960's, the Federal Government has invested con- siderable resources in helping people find employment through par- ticipation in numerous employment and training programs. What began as a few limited programs, has exploded today into a confus- ing maze of 163 separate programs, scattered across 15 Federal agenci