Workforce Investment Act

PUBLIC LAW 105–220—AUG. 7, 1998

WORKFORCE INVESTMENT ACT OF 1998

112 STAT. 936

PUBLIC LAW 105–220—AUG. 7, 1998

Public Law 105–220
105th Congress
An Act
Aug. 7, 1998
[H.R. 1385]

To consolidate, coordinate, and improve employment, training, literacy, and
vocational rehabilitation programs in the United States, and for other purposes.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
Workforce
Investment Act
of 1998.
20 USC 9201
note.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Workforce
Investment Act of 1998’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I—WORKFORCE INVESTMENT SYSTEMS
Subtitle A—Workforce Investment Definitions
Subtitle B—Statewide and Local Workforce Investment Systems
Sec. 106. Purpose.
CHAPTER 1—STATE PROVISIONS
Sec. 111. State workforce investment boards.
Sec. 112. State plan.
CHAPTER 2—LOCAL PROVISIONS
Sec. 116. Local workforce investment areas.
Sec. 117. Local workforce investment boards.
Sec. 118. Local plan.
CHAPTER 3—WORKFORCE INVESTMENT ACTIVITIES PROVIDERS
Sec. 121. Establishment of one-stop delivery systems.
Sec. 122. Identification of eligible providers of training services.
Sec. 123. Identification of eligible providers of youth activities.
CHAPTER 4—YOUTH ACTIVITIES
Sec.
Sec.
Sec.
Sec.

126.
127.
128.
129.

General authorization.
State allotments.
Within State allocations.
Use of funds for youth activities.

CHAPTER 5—ADULT
Sec.
Sec.
Sec.
Sec.

131.
132.
133.
134.

AND

DISLOCATED WORKER EMPLOYMENT
ACTIVITIES

General authorization.
State allotments.
Within State allocations.
Use of funds for employment and training activities.
CHAPTER 6—GENERAL PROVISIONS

Sec. 136. Performance accountability system.
Sec. 137. Authorization of appropriations.

AND

TRAINING

PUBLIC LAW 105–220—AUG. 7, 1998
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141.
142.
143.
144.
145.
146.
147.
148.
149.
150.
151.
152.
153.
154.
155.
156.
157.
158.
159.
160.
161.

Subtitle C—Job Corps
Purposes.
Definitions.
Establishment.
Individuals eligible for the Job Corps.
Recruitment, screening, selection, and assignment of enrollees.
Enrollment.
Job Corps centers.
Program activities.
Counseling and job placement.
Support.
Operating plan.
Standards of conduct.
Community participation.
Industry councils.
Advisory committees.
Experimental, research, and demonstration projects.
Application of provisions of Federal law.
Special provisions.
Management information.
General provisions.
Authorization of appropriations.

Sec.
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166.
167.
168.
169.
170.
171.
172.
173.
174.

Subtitle D—National Programs
Native American programs.
Migrant and seasonal farmworker programs.
Veterans’ workforce investment programs.
Youth opportunity grants.
Technical assistance.
Demonstration, pilot, multiservice, research, and multistate projects.
Evaluations.
National emergency grants.
Authorization of appropriations.

Sec.
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181.
182.
183.
184.
185.
186.
187.
188.
189.
190.
191.
192.
193.
194.
195.

Subtitle E—Administration
Requirements and restrictions.
Prompt allocation of funds.
Monitoring.
Fiscal controls; sanctions.
Reports; recordkeeping; investigations.
Administrative adjudication.
Judicial review.
Nondiscrimination.
Administrative provisions.
Reference.
State legislative authority.
Workforce flexibility plans.
Use of certain real property.
Continuation of State activities and policies.
General program requirements.

Subtitle F—Repeals and Conforming Amendments
Sec. 199. Repeals.
Sec. 199A. Conforming amendments.
Sec.
Sec.
Sec.
Sec.
Sec.

201.
202.
203.
204.
205.

TITLE II—ADULT EDUCATION AND LITERACY
Short title.
Purpose.
Definitions.
Home schools.
Authorization of appropriations.
Subtitle A—Adult Education and Literacy Programs

CHAPTER 1—FEDERAL PROVISIONS
Sec. 211. Reservation; grants to eligible agencies; allotments.
Sec. 212. Performance accountability system.
CHAPTER 2—STATE PROVISIONS
Sec. 221. State administration.

112 STAT. 937

112 STAT. 938
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PUBLIC LAW 105–220—AUG. 7, 1998
222.
223.
224.
225.

State distribution of funds; matching requirement.
State leadership activities.
State plan.
Programs for corrections education and other institutionalized individuals.

CHAPTER 3—LOCAL PROVISIONS
Sec. 231. Grants and contracts for eligible providers.
Sec. 232. Local application.
Sec. 233. Local administrative cost limits.
CHAPTER 4—GENERAL PROVISIONS
Sec. 241. Administrative provisions.
Sec. 242. National Institute for Literacy.
Sec. 243. National leadership activities.
Subtitle B—Repeals
Sec. 251. Repeals.
TITLE III—WORKFORCE INVESTMENT-RELATED ACTIVITIES
Sec.
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Sec.
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Sec.

301.
302.
303.
304.
305.
306.
307.
308.
309.
310.
311.

Subtitle A—Wagner-Peyser Act
Definitions.
Functions.
Designation of State agencies.
Appropriations.
Disposition of allotted funds.
State plans.
Repeal of Federal advisory council.
Regulations.
Employment statistics.
Technical amendments.
Effective date.

Subtitle B—Linkages With Other Programs
Sec. 321. Trade Act of 1974.
Sec. 322. Veterans’ employment programs.
Sec. 323. Older Americans Act of 1965.
Sec.
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331.
332.
333.
334.
335.
336.
337.
338.
339.

Subtitle C—Twenty-First Century Workforce Commission
Short title.
Findings.
Definitions.
Establishment of Twenty-First Century Workforce Commission.
Duties of the Commission.
Powers of the Commission.
Commission personnel matters.
Termination of the Commission.
Authorization of appropriations.

Subtitle D—Application of Civil Rights and Labor-Management Laws to the
Smithsonian Institution
Sec. 341. Application of civil rights and labor-management laws to the Smithsonian
Institution.
Sec.
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Sec.
Sec.
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Sec.

401.
402.
403.
404.
405.
406.
407.
408.
409.
410.
411.
412.
413.
414.

TITLE IV—REHABILITATION ACT AMENDMENTS OF 1998
Short title.
Title.
General provisions.
Vocational rehabilitation services.
Research and training.
Professional development and special projects and demonstrations.
National Council on Disability.
Rights and advocacy.
Employment opportunities for individuals with disabilities.
Independent living services and centers for independent living.
Repeal.
Helen Keller National Center Act.
President’s Committee on Employment of People With Disabilities.
Conforming amendments.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 939

TITLE V—GENERAL PROVISIONS
Sec.
Sec.
Sec.
Sec.
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Sec.

501.
502.
503.
504.
505.
506.
507.

State unified plan.
Definitions for indicators of performance.
Incentive grants.
Privacy.
Buy-American requirements.
Transition provisions.
Effective date.

TITLE I—WORKFORCE INVESTMENT
SYSTEMS
Subtitle A—Workforce Investment
Definitions
SEC. 101. DEFINITIONS.

In this title:
(1) ADULT.—Except in sections 127 and 132, the term
‘‘adult’’ means an individual who is age 18 or older.
(2) ADULT EDUCATION; ADULT EDUCATION AND LITERACY
ACTIVITIES.—The terms ‘‘adult education’’ and ‘‘adult education
and literacy activities’’ have the meanings given the terms
in section 203.
(3) AREA VOCATIONAL EDUCATION SCHOOL.—The term ‘‘area
vocational education school’’ has the meaning given the term
in section 521 of the Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2471).
(4) BASIC SKILLS DEFICIENT.—The term ‘‘basic skills deficient’’ means, with respect to an individual, that the individual
has English reading, writing, or computing skills at or below
the 8th grade level on a generally accepted standardized test
or a comparable score on a criterion-referenced test.
(5) CASE MANAGEMENT.—The term ‘‘case management’’
means the provision of a client-centered approach in the
delivery of services, designed—
(A) to prepare and coordinate comprehensive employment plans, such as service strategies, for participants
to ensure access to necessary workforce investment activities and supportive services, using, where feasible, computer-based technologies; and
(B) to provide job and career counseling during
program participation and after job placement.
(6) CHIEF ELECTED OFFICIAL.—The term ‘‘chief elected
official’’ means—
(A) the chief elected executive officer of a unit of
general local government in a local area; and
(B) in a case in which a local area includes more
than one unit of general local government, the individuals
designated under the agreement described in section
117(c)(1)(B).
(7) COMMUNITY-BASED ORGANIZATION.—The term ‘‘community-based organization’’ means a private nonprofit organization
that is representative of a community or a significant segment
of a community and that has demonstrated expertise and
effectiveness in the field of workforce investment.

29 USC 2801.

112 STAT. 940

PUBLIC LAW 105–220—AUG. 7, 1998
(8) CUSTOMIZED TRAINING.—The term ‘‘customized
training ’’ means training—
(A) that is designed to meet the special requirements
of an employer (including a group of employers);
(B) that is conducted with a commitment by the
employer to employ an individual on successful completion
of the training; and
(C) for which the employer pays for not less than
50 percent of the cost of the training.
(9) DISLOCATED WORKER.—The term ‘‘dislocated worker’’
means an individual who—
(A)(i) has been terminated or laid off, or who has
received a notice of termination or layoff, from employment;
(ii)(I) is eligible for or has exhausted entitlement to
unemployment compensation; or
(II) has been employed for a duration sufficient to
demonstrate, to the appropriate entity at a one-stop center
referred to in section 134(c), attachment to the workforce,
but is not eligible for unemployment compensation due
to insufficient earnings or having performed services for
an employer that were not covered under a State unemployment compensation law; and
(iii) is unlikely to return to a previous industry or
occupation;
(B)(i) has been terminated or laid off, or has received
a notice of termination or layoff, from employment as a
result of any permanent closure of, or any substantial
layoff at, a plant, facility, or enterprise;
(ii) is employed at a facility at which the employer
has made a general announcement that such facility will
close within 180 days; or
(iii) for purposes of eligibility to receive services other
than training services described in section 134(d)(4), intensive services described in section 134(d)(3), or supportive
services, is employed at a facility at which the employer
has made a general announcement that such facility will
close;
(C) was self-employed (including employment as a
farmer, a rancher, or a fisherman) but is unemployed as
a result of general economic conditions in the community
in which the individual resides or because of natural disasters; or
(D) is a displaced homemaker.
(10) DISPLACED HOMEMAKER.—The term ‘‘displaced homemaker’’ means an individual who has been providing unpaid
services to family members in the home and who—
(A) has been dependent on the income of another family
member but is no longer supported by that income; and
(B) is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.
(11) ECONOMIC DEVELOPMENT AGENCIES.—The term ‘‘economic development agencies’’ includes local planning and zoning
commissions or boards, community development agencies, and
other local agencies and institutions responsible for regulating,
promoting, or assisting in local economic development.
(12) ELIGIBLE PROVIDER.—The term ‘‘eligible provider’’,
used with respect to—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 941

(A) training services, means a provider who is identified in accordance with section 122(e)(3);
(B) intensive services, means a provider who is identified or awarded a contract as described in section
134(d)(3)(B);
(C) youth activities, means a provider who is awarded
a grant or contract in accordance with section 123; or
(D) other workforce investment activities, means a public or private entity selected to be responsible for such
activities, such as a one-stop operator designated or certified under section 121(d).
(13) ELIGIBLE YOUTH.—Except as provided in subtitles C
and D, the term ‘‘eligible youth’’ means an individual who—
(A) is not less than age 14 and not more than
age 21;
(B) is a low-income individual; and
(C) is an individual who is one or more of the following:
(i) Deficient in basic literacy skills.
(ii) A school dropout.
(iii) Homeless, a runaway, or a foster child.
(iv) Pregnant or a parent.
(v) An offender.
(vi) An individual who requires additional assistance to complete an educational program, or to secure
and hold employment.
(14) EMPLOYMENT AND TRAINING ACTIVITY.—The term
‘‘employment and training activity’’ means an activity described
in section 134 that is carried out for an adult or dislocated
worker.
(15) FAMILY.—The term ‘‘family’’ means two or more persons related by blood, marriage, or decree of court, who are
living in a single residence, and are included in one or more
of the following categories:
(A) A husband, wife, and dependent children.
(B) A parent or guardian and dependent children.
(C) A husband and wife.
(16) GOVERNOR.—The term ‘‘Governor’’ means the chief
executive of a State.
(17) INDIVIDUAL WITH A DISABILITY.—
(A) IN GENERAL.—The term ‘‘individual with a disability’’ means an individual with any disability (as defined
in section 3 of the Americans with Disabilities Act of 1990
(42 U.S.C. 12102)).
(B) INDIVIDUALS WITH DISABILITIES.—The term
‘‘individuals with disabilities’’ means more than one individual with a disability.
(18) LABOR MARKET AREA.—The term ‘‘labor market area’’
means an economically integrated geographic area within which
individuals can reside and find employment within a reasonable
distance or can readily change employment without changing
their place of residence. Such an area shall be identified in
accordance with criteria used by the Bureau of Labor Statistics
of the Department of Labor in defining such areas or similar
criteria established by a Governor.
(19) LITERACY.—The term ‘‘literacy’’ has the meaning given
the term in section 203.

112 STAT. 942

PUBLIC LAW 105–220—AUG. 7, 1998
(20) LOCAL AREA.—The term ‘‘local area’’ means a local
workforce investment area designated under section 116.
(21) LOCAL BOARD.—The term ‘‘local board’’ means a local
workforce investment board established under section 117.
(22) LOCAL PERFORMANCE MEASURE.—The term ‘‘local
performance measure’’ means a performance measure established under section 136(c).
(23) LOCAL EDUCATIONAL AGENCY.—The term ‘‘local educational agency’’ has the meaning given the term in section
14101 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 8801).
(24) LOWER LIVING STANDARD INCOME LEVEL.—The term
‘‘lower living standard income level’’ means that income level
(adjusted for regional, metropolitan, urban, and rural differences and family size) determined annually by the Secretary
based on the most recent lower living family budget issued
by the Secretary.
(25) LOW-INCOME INDIVIDUAL.—The term ‘‘low-income
individual’’ means an individual who—
(A) receives, or is a member of a family that receives,
cash payments under a Federal, State, or local incomebased public assistance program;
(B) received an income, or is a member of a family
that received a total family income, for the 6-month period
prior to application for the program involved (exclusive
of unemployment compensation, child support payments,
payments described in subparagraph (A), and old-age and
survivors insurance benefits received under section 202
of the Social Security Act (42 U.S.C. 402)) that, in relation
to family size, does not exceed the higher of—
(i) the poverty line, for an equivalent period; or
(ii) 70 percent of the lower living standard income
level, for an equivalent period;
(C) is a member of a household that receives (or has
been determined within the 6-month period prior to application for the program involved to be eligible to receive)
food stamps pursuant to the Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.);
(D) qualifies as a homeless individual, as defined in
subsections (a) and (c) of section 103 of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11302);
(E) is a foster child on behalf of whom State or local
government payments are made; or
(F) in cases permitted by regulations promulgated by
the Secretary of Labor, is an individual with a disability
whose own income meets the requirements of a program
described in subparagraph (A) or of subparagraph (B), but
who is a member of a family whose income does not meet
such requirements.
(26) NONTRADITIONAL EMPLOYMENT.—The term ‘‘nontraditional employment’’ refers to occupations or fields of work for
which individuals from one gender comprise less than 25 percent of the individuals employed in each such occupation or
field of work.
(27) OFFENDER.—The term ‘‘offender’’ means any adult or
juvenile—

PUBLIC LAW 105–220—AUG. 7, 1998

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(A) who is or has been subject to any stage of the
criminal justice process, for whom services under this Act
may be beneficial; or
(B) who requires assistance in overcoming artificial
barriers to employment resulting from a record of arrest
or conviction.
(28) OLDER INDIVIDUAL.—The term ‘‘older individual’’
means an individual age 55 or older.
(29) ONE-STOP OPERATOR.—The term ‘‘one-stop operator’’
means 1 or more entities designated or certified under section
121(d).
(30) ONE-STOP PARTNER.—The term ‘‘one-stop partner’’
means—
(A) an entity described in section 121(b)(1); and
(B) an entity described in section 121(b)(2) that is
participating, with the approval of the local board and
chief elected official, in the operation of a one-stop delivery
system.
(31) ON-THE-JOB TRAINING.—The term ‘‘on-the-job training ’’
means training by an employer that is provided to a paid
participant while engaged in productive work in a job that—
(A) provides knowledge or skills essential to the full
and adequate performance of the job;
(B) provides reimbursement to the employer of up to
50 percent of the wage rate of the participant, for the
extraordinary costs of providing the training and additional
supervision related to the training; and
(C) is limited in duration as appropriate to the occupation for which the participant is being trained, taking into
account the content of the training, the prior work experience of the participant, and the service strategy of the
participant, as appropriate.
(32) OUTLYING AREA.—The term ‘‘outlying area’’ means the
United States Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, the Republic
of the Marshall Islands, the Federated States of Micronesia,
and the Republic of Palau.
(33) OUT-OF-SCHOOL YOUTH.—The term ‘‘out-of-school
youth’’ means—
(A) an eligible youth who is a school dropout; or
(B) an eligible youth who has received a secondary
school diploma or its equivalent but is basic skills deficient,
unemployed, or underemployed.
(34) PARTICIPANT.—The term ‘‘participant’’ means an
individual who has been determined to be eligible to participate
in and who is receiving services (except followup services
authorized under this title) under a program authorized by
this title. Participation shall be deemed to commence on the
first day, following determination of eligibility, on which the
individual began receiving subsidized employment, training,
or other services provided under this title.
(35) POSTSECONDARY EDUCATIONAL INSTITUTION.—The term
‘‘postsecondary educational institution’’ means an institution
of higher education, as defined in section 481 of the Higher
Education Act of 1965 (20 U.S.C. 1088).
(36) POVERTY LINE.—The term ‘‘poverty line’’ means the
poverty line (as defined by the Office of Management and

112 STAT. 944

PUBLIC LAW 105–220—AUG. 7, 1998
Budget, and revised annually in accordance with section 673(2)
of the Community Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
(37) PUBLIC ASSISTANCE.—The term ‘‘public assistance’’
means Federal, State, or local government cash payments for
which eligibility is determined by a needs or income test.
(38) RAPID RESPONSE ACTIVITY.—The term ‘‘rapid response
activity’’ means an activity provided by a State, or by an entity
designated by a State, with funds provided by the State under
section 134(a)(1)(A), in the case of a permanent closure or
mass layoff at a plant, facility, or enterprise, or a natural
or other disaster, that results in mass job dislocation, in order
to assist dislocated workers in obtaining reemployment as soon
as possible, with services including—
(A) the establishment of onsite contact with employers
and employee representatives—
(i) immediately after the State is notified of a
current or projected permanent closure or mass layoff;
or
(ii) in the case of a disaster, immediately after
the State is made aware of mass job dislocation as
a result of such disaster;
(B) the provision of information and access to available
employment and training activities;
(C) assistance in establishing a labor-management
committee, voluntarily agreed to by labor and management,
with the ability to devise and implement a strategy for
assessing the employment and training needs of dislocated
workers and obtaining services to meet such needs;
(D) the provision of emergency assistance adapted to
the particular closure, layoff, or disaster; and
(E) the provision of assistance to the local community
in developing a coordinated response and in obtaining
access to State economic development assistance.
(39) SCHOOL DROPOUT.—The term ‘‘school dropout’’ means
an individual who is no longer attending any school and who
has not received a secondary school diploma or its recognized
equivalent.
(40) SECONDARY SCHOOL.—The term ‘‘secondary school’’ has
the meaning given the term in section 14101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 8801).
(41) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Labor, and the term means such Secretary for purposes of section 503.
(42) STATE.—The term ‘‘State’’ means each of the several
States of the United States, the District of Columbia, and
the Commonwealth of Puerto Rico.
(43) STATE ADJUSTED LEVEL OF PERFORMANCE.—The term
‘‘State adjusted level of performance’’ means a level described
in clause (iii) or (v) of section 136(b)(3)(A).
(44) STATE BOARD.—The term ‘‘State board’’ means a State
workforce investment board established under section 111.
(45) STATE PERFORMANCE MEASURE.—The term ‘‘State
performance measure’’ means a performance measure established under section 136(b).
(46) SUPPORTIVE SERVICES.—The term ‘‘supportive services’’
means services such as transportation, child care, dependent

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care, housing, and needs-related payments, that are necessary
to enable an individual to participate in activities authorized
under this title, consistent with the provisions of this title.
(47) UNEMPLOYED INDIVIDUAL.—The term ‘‘unemployed
individual’’ means an individual who is without a job and
who wants and is available for work. The determination of
whether an individual is without a job shall be made in accordance with the criteria used by the Bureau of Labor Statistics
of the Department of Labor in defining individuals as
unemployed.
(48) UNIT OF GENERAL LOCAL GOVERNMENT.—The term
‘‘unit of general local government’’ means any general purpose
political subdivision of a State that has the power to levy
taxes and spend funds, as well as general corporate and police
powers.
(49) VETERAN; RELATED DEFINITION.—
(A) VETERAN.—The term ‘‘veteran’’ means an individual
who served in the active military, naval, or air service,
and who was discharged or released from such service
under conditions other than dishonorable.
(B) RECENTLY SEPARATED VETERAN.—The term
‘‘recently separated veteran’’ means any veteran who
applies for participation under this title within 48 months
after the discharge or release from active military, naval,
or air service.
(50) VOCATIONAL EDUCATION.—The term ‘‘vocational education’’ has the meaning given the term in section 521 of
the Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2471).
(51) WORKFORCE INVESTMENT ACTIVITY.—The term
‘‘workforce investment activity’’ means an employment and
training activity, and a youth activity.
(52) YOUTH ACTIVITY.—The term ‘‘youth activity’’ means
an activity described in section 129 that is carried out for
eligible youth (or as described in section 129(c)(5)).
(53) YOUTH COUNCIL.—The term ‘‘youth council’’ means
a council established under section 117(h).

Subtitle B—Statewide and Local Workforce
Investment Systems
SEC. 106. PURPOSE.

29 USC 2811.

The purpose of this subtitle is to provide workforce investment
activities, through statewide and local workforce investment systems, that increase the employment, retention, and earnings of
participants, and increase occupational skill attainment by participants, and, as a result, improve the quality of the workforce, reduce
welfare dependency, and enhance the productivity and competitiveness of the Nation.
CHAPTER 1—STATE PROVISIONS
SEC. 111. STATE WORKFORCE INVESTMENT BOARDS.

(a) IN GENERAL.—The Governor of a State shall establish a
State workforce investment board to assist in the development

Establishment.
29 USC 2821.

112 STAT. 946

PUBLIC LAW 105–220—AUG. 7, 1998

of the State plan described in section 112 and to carry out the
other functions described in subsection (d).
(b) MEMBERSHIP.—
(1) IN GENERAL.—The State Board shall include—
(A) the Governor;
(B) 2 members of each chamber of the State legislature,
appointed by the appropriate presiding officers of each
such chamber; and
(C) representatives appointed by the Governor, who
are—
(i) representatives of business in the State, who—
(I) are owners of businesses, chief executives
or operating officers of businesses, and other business executives or employers with optimum policymaking or hiring authority, including members of
local boards described in section 117(b)(2)(A)(i);
(II) represent businesses with employment
opportunities that reflect the employment
opportunities of the State; and
(III) are appointed from among individuals
nominated by State business organizations and
business trade associations;
(ii) chief elected officials (representing both cities
and counties, where appropriate);
(iii) representatives of labor organizations, who
have been nominated by State labor federations;
(iv) representatives of individuals and organizations that have experience with respect to youth activities;
(v) representatives of individuals and organizations
that have experience and expertise in the delivery
of workforce investment activities, including chief
executive officers of community colleges and community-based organizations within the State;
(vi)(I) the lead State agency officials with responsibility for the programs and activities that are
described in section 121(b) and carried out by onestop partners; and
(II) in any case in which no lead State agency
official has responsibility for such a program, service,
or activity, a representative in the State with expertise
relating to such program, service, or activity; and
(vii) such other representatives and State agency
officials as the Governor may designate, such as the
State agency officials responsible for economic development and juvenile justice programs in the State.
(2) AUTHORITY AND REGIONAL REPRESENTATION OF BOARD
MEMBERS.—Members of the board that represent organizations,
agencies, or other entities shall be individuals with optimum
policymaking authority within the organizations, agencies, or
entities. The members of the board shall represent diverse
regions of the State, including urban, rural, and suburban
areas.
(3) MAJORITY.—A majority of the members of the State
Board shall be representatives described in paragraph (1)(C)(i).

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112 STAT. 947

(c) CHAIRMAN.—The Governor shall select a chairperson for
the State Board from among the representatives described in subsection (b)(1)(C)(i).
(d) FUNCTIONS.—The State Board shall assist the Governor
in—
(1) development of the State plan;
(2) development and continuous improvement of a statewide system of activities that are funded under this subtitle
or carried out through a one-stop delivery system described
in section 134(c) that receives funds under this subtitle (referred
to in this title as a ‘‘statewide workforce investment system’’),
including—
(A) development of linkages in order to assure coordination and nonduplication among the programs and activities
described in section 121(b); and
(B) review of local plans;
(3) commenting at least once annually on the measures
taken pursuant to section 113(b)(14) of the Carl D. Perkins
Vocational and Applied Technology Education Act (20 U.S.C
2323(b)(14));
(4) designation of local areas as required in section 116;
(5) development of allocation formulas for the distribution
of funds for adult employment and training activities and youth
activities to local areas as permitted under sections 128(b)(3)(B)
and 133(b)(3)(B);
(6) development and continuous improvement of comprehensive State performance measures, including State
adjusted levels of performance, to assess the effectiveness of
the workforce investment activities in the State as required
under section 136(b);
(7) preparation of the annual report to the Secretary
described in section 136(d);
(8) development of the statewide employment statistics system described in section 15(e) of the Wagner-Peyser Act; and
(9) development of an application for an incentive grant
under section 503.
(e) ALTERNATIVE ENTITY.—
(1) IN GENERAL.—For purposes of complying with subsections (a), (b), and (c), a State may use any State entity
(including a State council, State workforce development board,
combination of regional workforce development boards, or similar entity) that—
(A) was in existence on December 31, 1997;
(B)(i) was established pursuant to section 122 or title
VII of the Job Training Partnership Act, as in effect on
December 31, 1997; or
(ii) is substantially similar to the State board described
in subsections (a), (b), and (c); and
(C) includes representatives of business in the State
and representatives of labor organizations in the State.
(2) REFERENCES.—References in this Act to a State board
shall be considered to include such an entity.
(f ) CONFLICT OF INTEREST.—A member of a State board may
not—
(1) vote on a matter under consideration by the State
board—

112 STAT. 948

PUBLIC LAW 105–220—AUG. 7, 1998

(A) regarding the provision of services by such member
(or by an entity that such member represents); or
(B) that would provide direct financial benefit to such
member or the immediate family of such member; or
(2) engage in any other activity determined by the Governor
to constitute a conflict of interest as specified in the State
plan.
(g) SUNSHINE PROVISION.—The State board shall make available to the public, on a regular basis through open meetings,
information regarding the activities of the State board, including
information regarding the State plan prior to submission of the
plan, information regarding membership, and, on request, minutes
of formal meetings of the State board.
29 USC 2822.

SEC. 112. STATE PLAN.

(a) IN GENERAL.—For a State to be eligible to receive an allotment under section 127 or 132, or to receive financial assistance
under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), the Governor
of the State shall submit to the Secretary for consideration by
the Secretary, a single State plan (referred to in this title as
the ‘‘State plan’’) that outlines a 5-year strategy for the statewide
workforce investment system of the State and that meets the
requirements of section 111 and this section.
(b) CONTENTS.—The State plan shall include—
(1) a description of the State board, including a description
of the manner in which such board collaborated in the development of the State plan and a description of how the board
will continue to collaborate in carrying out the functions
described in section 111(d);
(2) a description of State-imposed requirements for the
statewide workforce investment system;
(3) a description of the State performance accountability
system developed for the workforce investment activities to
be carried out through the statewide workforce investment
system, that includes information identifying State performance
measures as described in section 136(b)(3)(A)(ii);
(4) information describing—
(A) the needs of the State with regard to current and
projected employment opportunities, by occupation;
(B) the job skills necessary to obtain such employment
opportunities;
(C) the skills and economic development needs of the
State; and
(D) the type and availability of workforce investment
activities in the State;
(5) an identification of local areas designated in the State,
including a description of the process used for the designation
of such areas;
(6) an identification of criteria to be used by chief elected
officials for the appointment of members of local boards based
on the requirements of section 117;
(7) the detailed plans required under section 8 of the
Wagner-Peyser Act (29 U.S.C. 49g);
(8)(A) a description of the procedures that will be taken
by the State to assure coordination of and avoid duplication
among—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 949

(i) workforce investment activities authorized under
this title;
(ii) other activities authorized under this title;
(iii) programs authorized under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.), title II of this Act, title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), part
A of title IV of the Social Security Act (42 U.S.C. 601
et seq.), and section 6(d)(4) of the Food Stamp Act of
1977 (7 U.S.C. 2015(d)(4)), activities authorized under title
V of the Older Americans Act of 1965 (42 U.S.C. 3056
et seq.), and postsecondary vocational education activities
authorized under the Carl D. Perkins Vocational and
Applied Technology Education Act (20 U.S.C. 2301 et seq.);
(iv) work programs authorized under section 6(o) of
the Food Stamp Act of 1977 (7 U.S.C. 2015(o));
(v) activities authorized under chapter 2 of title II
of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
(vi) activities authorized under chapter 41 of title 38,
United States Code;
(vii) employment and training activities carried out
under the Community Services Block Grant Act (42 U.S.C.
9901 et seq.);
(viii) activities authorized under the National and
Community Service Act of 1990 (42 U.S.C. 12501 et seq.);
(ix) employment and training activities carried out by
the Department of Housing and Urban Development; and
(x) programs authorized under State unemployment
compensation laws (in accordance with applicable Federal
law); and
(B) a description of the common data collection and reporting processes used for the programs and activities described
in subparagraph (A);
(9) a description of the process used by the State, consistent
with section 111(g), to provide an opportunity for public comment, including comment by representatives of businesses and
representatives of labor organizations, and input into development of the plan, prior to submission of the plan;
(10) information identifying how the State will use funds
the State receives under this subtitle to leverage other Federal,
State, local, and private resources, in order to maximize the
effectiveness of such resources, and to expand the participation
of business, employees, and individuals in the statewide
workforce investment system;
(11) assurances that the State will provide, in accordance
with section 184 for fiscal control and fund accounting procedures that may be necessary to ensure the proper disbursement
of, and accounting for, funds paid to the State through the
allotments made under sections 127 and 132;
(12)(A) a description of the methods and factors the State
will use in distributing funds to local areas for youth activities
and adult employment and training activities under sections
128(b)(3)(B) and 133(b)(3)(B), including—
(i) a description of how the individuals and entities
represented on the State board were involved in determining such methods and factors of distribution; and

112 STAT. 950

PUBLIC LAW 105–220—AUG. 7, 1998
(ii) a description of how the State consulted with chief
elected officials in local areas throughout the State in determining such distribution;
(B) assurances that the funds will be distributed equitably
throughout the State, and that no local areas will suffer significant shifts in funding from year to year; and
(C) a description of the formula prescribed by the Governor
pursuant to section 133(b)(2)(B) for the allocation of funds
to local areas for dislocated worker employment and training
activities;
(13) information specifying the actions that constitute a
conflict of interest prohibited in the State for purposes of sections 111(f ) and 117(g);
(14) with respect to the one-stop delivery systems described
in section 134(c) (referred to individually in this title as a
‘‘one-stop delivery system’’), a description of the strategy of
the State for assisting local areas in development and
implementation of fully operational one-stop delivery systems
in the State;
(15) a description of the appeals process referred to in
section 116(a)(5);
(16) a description of the competitive process to be used
by the State to award grants and contracts in the State for
activities carried out under this title;
(17) with respect to the employment and training activities
authorized in section 134—
(A) a description of—
(i) the employment and training activities that
will be carried out with the funds received by the
State through the allotment made under section 132;
(ii) how the State will provide rapid response
activities to dislocated workers from funds reserved
under section 133(a)(2) for such purposes, including
the designation of an identifiable State rapid response
dislocated worker unit to carry out statewide rapid
response activities;
(iii) the procedures the local boards in the State
will use to identify eligible providers of training services described in section 134(d)(4) (other than on-thejob training or customized training), as required under
section 122; and
(iv) how the State will serve the employment and
training needs of dislocated workers (including displaced homemakers), low-income individuals (including
recipients of public assistance), individuals training
for nontraditional employment, and other individuals
with multiple barriers to employment (including older
individuals and individuals with disabilities); and
(B) an assurance that veterans will be afforded the
employment and training activities by the State, to the
extent practicable; and
(18) with respect to youth activities authorized in section
129, information—
(A) describing the State strategy for providing comprehensive services to eligible youth, particularly those
eligible youth who are recognized as having significant
barriers to employment;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 951

(B) identifying the criteria to be used by local boards
in awarding grants for youth activities, including criteria
that the Governor and local boards will use to identify
effective and ineffective youth activities and providers of
such activities;
(C) describing how the State will coordinate the youth
activities carried out in the State under section 129 with
the services provided by Job Corps centers in the State
(where such centers exist); and
(D) describing how the State will coordinate youth
activities described in subparagraph (C) with activities carried out through the youth opportunity grants under section
169.
(c) PLAN SUBMISSION AND APPROVAL.—A State plan submitted
to the Secretary under this section by a Governor shall be considered
to be approved by the Secretary at the end of the 90-day period
beginning on the day the Secretary receives the plan, unless the
Secretary makes a written determination, during the 90-day period,
that—
(1) the plan is inconsistent with the provisions of this
title; and
(2) in the case of the portion of the plan described in
section 8(a) of the Wagner-Peyser Act (29 U.S.C. 49g(a)), the
portion does not satisfy the criteria for approval provided in
section 8(d) of such Act.
(d) MODIFICATIONS TO PLAN.—A State may submit modifications
to a State plan in accordance with the requirements of this section
and section 111 as necessary during the 5-year period covered
by the plan.
CHAPTER 2—LOCAL PROVISIONS
SEC. 116. LOCAL WORKFORCE INVESTMENT AREAS.

(a) DESIGNATION OF AREAS.—
(1) IN GENERAL.—
(A) PROCESS.—Except as provided in subsection (b),
and consistent with paragraphs (2), (3), and (4), in order
for a State to receive an allotment under section 127 or
132, the Governor of the State shall designate local
workforce investment areas within the State—
(i) through consultation with the State board; and
(ii) after consultation with chief elected officials
and after consideration of comments received through
the public comment process as described in section
112(b)(9).
(B) CONSIDERATIONS.—In making the designation of
local areas, the Governor shall take into consideration the
following:
(i) Geographic areas served by local educational
agencies and intermediate educational agencies.
(ii) Geographic areas served by postsecondary
educational institutions and area vocational education
schools.
(iii) The extent to which such local areas are
consistent with labor market areas.
(iv) The distance that individuals will need to
travel to receive services provided in such local areas.

29 USC 2831.

112 STAT. 952

PUBLIC LAW 105–220—AUG. 7, 1998
(v) The resources of such local areas that are available to effectively administer the activities carried out
under this subtitle.
(2) AUTOMATIC DESIGNATION.—The Governor shall approve
any request for designation as a local area—
(A) from any unit of general local government with
a population of 500,000 or more;
(B) of the area served by a rural concentrated employment program grant recipient of demonstrated effectiveness
that served as a service delivery area or substate area
under the Job Training Partnership Act, if the grant recipient has submitted the request; and
(C) of an area that served as a service delivery area
under section 101(a)(4)(A)(ii) of the Job Training Partnership Act (as in effect on the day before the date of enactment of this Act) in a State that has a population of
not more than 1,100,000 and a population density greater
than 900 persons per square mile.
(3) TEMPORARY AND SUBSEQUENT DESIGNATION.—
(A) CRITERIA.—Notwithstanding paragraph (2)(A), the
Governor shall approve any request, made not later than
the date of submission of the initial State plan under
this subtitle, for temporary designation as a local area
from any unit of general local government (including a
combination of such units) with a population of 200,000
or more that was a service delivery area under the Job
Training Partnership Act on the day before the date of
enactment of this Act if the Governor determines that
the area—
(i) performed successfully, in each of the last 2
years prior to the request for which data are available,
in the delivery of services to participants under part
A of title II and title III of the Job Training Partnership
Act (as in effect on such day); and
(ii) has sustained the fiscal integrity of the funds
used by the area to carry out activities under such
part and title.
(B) DURATION AND SUBSEQUENT DESIGNATION.—A temporary designation under this paragraph shall be for a
period of not more than 2 years, after which the designation
shall be extended until the end of the period covered by
the State plan if the Governor determines that, during
the temporary designation period, the area substantially
met (as defined by the State board) the local performance
measures for the local area and sustained the fiscal integrity of the funds used by the area to carry out activities
under this subtitle.
(C) TECHNICAL ASSISTANCE.—The Secretary shall provide the States with technical assistance in making the
determinations required by this paragraph. The Secretary
shall not issue regulations governing determinations to
be made under this paragraph.
(D) PERFORMED SUCCESSFULLY.—In this paragraph, the
term ‘‘performed successfully’’ means that the area involved
met or exceeded the performance standards for activities
administered in the area that—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 953

(i) are established by the Secretary for each year
and modified by the adjustment methodology of the
State (used to account for differences in economic conditions, participant characteristics, and combination of
services provided from the combination assumed for
purposes of the established standards of the Secretary);
and
(ii)(I) if the area was designated as both a service
delivery area and a substate area under the Job Training Partnership Act (as in effect on the day before
the date of enactment of this Act)—
(aa) relate to job retention and earnings, with
respect to activities carried out under part A of
title II of such Act (as in effect on such day);
or
(bb) relate to entry into employment, with
respect to activities carried out under title III of
such Act (as in effect on such day);
(II) if the area was designated only as a service
delivery area under such Act (as in effect on such
day), relate to the standards described in subclause
(I)(aa); or
(III) if the area was only designated as a substate
area under such Act (as in effect on such day), relate
to the standards described in subclause (I)(bb).
(E) SUSTAINED THE FISCAL INTEGRITY.—In this paragraph, the term ‘‘sustained the fiscal integrity’’, used with
respect to funds used by a service delivery area or local
area, means that the Secretary has not made a final determination during any of the last 3 years for which data
are available, prior to the date of the designation request
involved, that either the grant recipient or the administrative entity of the area misexpended the funds due to willful
disregard of the requirements of the Act involved, gross
negligence, or failure to observe accepted standards of
administration.
(4) DESIGNATION ON RECOMMENDATION OF STATE BOARD.—
The Governor may approve a request from any unit of general
local government (including a combination of such units) for
designation (including temporary designation) as a local area
if the State board determines, taking into account the factors
described in clauses (i) through (v) of paragraph (1)(B), and
recommends to the Governor, that such area should be so
designated.
(5) APPEALS.—A unit of general local government (including
a combination of such units) or grant recipient that requests
but is not granted designation of an area as a local area
under paragraph (2) or (3) may submit an appeal to the State
board under an appeal process established in the State plan.
If the appeal does not result in such a designation, the Secretary, after receiving a request for review from the unit or
grant recipient and on determining that the unit or grant
recipient was not accorded procedural rights under the appeal
process established in the State plan or that the area meets
the requirements of paragraph (2) or (3), as appropriate, may
require that the area be designated as a local area under
such paragraph.

112 STAT. 954

PUBLIC LAW 105–220—AUG. 7, 1998

(b) SMALL STATES.—The Governor of any State that was a
single State service delivery area under the Job Training Partnership Act as of July 1, 1998, may designate the State as a single
State local area for the purposes of this title. In the case of such
a designation, the Governor shall identify the State as a local
area under section 112(b)(5).
(c) REGIONAL PLANNING AND COOPERATION.—
(1) PLANNING.—As part of the process for developing the
State plan, a State may require regional planning by local
boards for a designated region in the State. The State may
require the local boards for a designated region to participate
in a regional planning process that results in the establishment
of regional performance measures for workforce investment
activities authorized under this subtitle. The State may award
regional incentive grants to the designated regions that meet
or exceed the regional performance measures.
(2) INFORMATION SHARING.—The State may require the
local boards for a designated region to share, in feasible cases,
employment statistics, information about employment
opportunities and trends, and other types of information that
would assist in improving the performance of all local areas
in the designated region on local performance measures.
(3) COORDINATION OF SERVICES.—The State may require
the local boards for a designated region to coordinate the provision of workforce investment activities authorized under this
subtitle, including the provision of transportation and other
supportive services, so that services provided through the activities may be provided across the boundaries of local areas within
the designated region.
(4) INTERSTATE REGIONS.—Two or more States that contain
an interstate region that is a labor market area, economic
development region, or other appropriate contiguous subarea
of the States may designate the area as a designated region
for purposes of this subsection, and jointly exercise the State
functions described in paragraphs (1) through (3).
(5) DEFINITIONS.—In this subsection:
(A) DESIGNATED REGION.—The term ‘‘designated
region’’ means a combination of local areas that are partly
or completely in a single labor market area, economic
development region, or other appropriate contiguous subarea of a State, that is designated by the State, except
as provided in paragraph (4).
(B) LOCAL BOARD FOR A DESIGNATED REGION.—The
term ‘‘local board for a designated region’’ means a local
board for a local area in a designated region.
29 USC 2832.

SEC. 117. LOCAL WORKFORCE INVESTMENT BOARDS.

(a) ESTABLISHMENT.—There shall be established in each local
area of a State, and certified by the Governor of the State, a
local workforce investment board, to set policy for the portion of
the statewide workforce investment system within the local area
(referred to in this title as a ‘‘local workforce investment system’’).
(b) MEMBERSHIP.—
(1) STATE CRITERIA.—The Governor of the State, in partnership with the State board, shall establish criteria for use by
chief elected officials in the local areas for appointment of

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 955

members of the local boards in such local areas in accordance
with the requirements of paragraph (2).
(2) COMPOSITION.—Such criteria shall require, at a minimum, that the membership of each local board—
(A) shall include—
(i) representatives of business in the local area,
who—
(I) are owners of businesses, chief executives
or operating officers of businesses, and other business executives or employers with optimum policymaking or hiring authority;
(II) represent businesses with employment
opportunities that reflect the employment
opportunities of the local area; and
(III) are appointed from among individuals
nominated by local business organizations and
business trade associations;
(ii) representatives of local educational entities,
including representatives of local educational agencies,
local school boards, entities providing adult education
and literacy activities, and postsecondary educational
institutions (including representatives of community
colleges, where such entities exist), selected from
among individuals nominated by regional or local educational agencies, institutions, or organizations representing such local educational entities;
(iii) representatives of labor organizations (for a
local area in which employees are represented by labor
organizations), nominated by local labor federations,
or (for a local area in which no employees are represented by such organizations), other representatives
of employees;
(iv) representatives of community-based organizations (including organizations representing individuals
with disabilities and veterans, for a local area in which
such organizations are present);
(v) representatives of economic development
agencies, including private sector economic development entities; and
(vi) representatives of each of the one-stop
partners; and
(B) may include such other individuals or representatives of entities as the chief elected official in the local
area may determine to be appropriate.
(3) AUTHORITY OF BOARD MEMBERS.—Members of the board
that represent organizations, agencies, or other entities shall
be individuals with optimum policymaking authority within
the organizations, agencies, or entities.
(4) MAJORITY.—A majority of the members of the local
board shall be representatives described in paragraph (2)(A)(i).
(5) CHAIRPERSON.—The local board shall elect a chairperson
for the local board from among the representatives described
in paragraph (2)(A)(i).
(c) APPOINTMENT AND CERTIFICATION OF BOARD.—
(1) APPOINTMENT OF BOARD MEMBERS AND ASSIGNMENT OF
RESPONSIBILITIES.—

112 STAT. 956

PUBLIC LAW 105–220—AUG. 7, 1998
(A) IN GENERAL.—The chief elected official in a local
area is authorized to appoint the members of the local
board for such area, in accordance with the State criteria
established under subsection (b).
(B) MULTIPLE UNITS OF LOCAL GOVERNMENT IN AREA.—
(i) IN GENERAL.—In a case in which a local area
includes more than 1 unit of general local government,
the chief elected officials of such units may execute
an agreement that specifies the respective roles of the
individual chief elected officials—
(I) in the appointment of the members of the
local board from the individuals nominated or recommended to be such members in accordance with
the criteria established under subsection (b); and
(II) in carrying out any other responsibilities
assigned to such officials under this subtitle.
(ii) LACK OF AGREEMENT.—If, after a reasonable
effort, the chief elected officials are unable to reach
agreement as provided under clause (i), the Governor
may appoint the members of the local board from
individuals so nominated or recommended.
(C) CONCENTRATED EMPLOYMENT PROGRAMS.—In the
case of a local area designated in accordance with section
116(a)(2)(B), the governing body of the concentrated
employment program involved shall act in consultation
with the chief elected official in the local area to appoint
members of the local board, in accordance with the State
criteria established under subsection (b), and to carry out
any other responsibility relating to workforce investment
activities assigned to such official under this Act.
(2) CERTIFICATION.—
(A) IN GENERAL.—The Governor shall, once every 2
years, certify 1 local board for each local area in the State.
(B) CRITERIA.—Such certification shall be based on criteria established under subsection (b) and, for a second
or subsequent certification, the extent to which the local
board has ensured that workforce investment activities
carried out in the local area have enabled the local area
to meet the local performance measures.
(C) FAILURE TO ACHIEVE CERTIFICATION.—Failure of
a local board to achieve certification shall result in
reappointment and certification of another local board for
the local area pursuant to the process described in paragraph (1) and this paragraph.
(3) DECERTIFICATION.—
(A) FRAUD, ABUSE, FAILURE TO CARRY OUT FUNCTIONS.—
Notwithstanding paragraph (2), the Governor may decertify
a local board, at any time after providing notice and an
opportunity for comment, for—
(i) fraud or abuse; or
(ii) failure to carry out the functions specified for
the local board in any of paragraphs (1) through (7)
of subsection (d).
(B) NONPERFORMANCE.—Notwithstanding paragraph
(2), the Governor may decertify a local board if a local
area fails to meet the local performance measures for such

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 957

local area for 2 consecutive program years (in accordance
with section 136(h)).
(C) PLAN.—If the Governor decertifies a local board
for a local area under subparagraph (A) or (B), the Governor
may require that a new local board be appointed and
certified for the local area pursuant to a reorganization
plan developed by the Governor, in consultation with the
chief elected official in the local area, and in accordance
with the criteria established under subsection (b).
(4) SINGLE STATE AREA.—Notwithstanding subsection (b)
and paragraphs (1) and (2), if a State described in section
116(b) indicates in the State plan that the State will be treated
as a local area for purposes of the application of this title,
the Governor may designate the State board to carry out any
of the functions described in subsection (d).
(d) FUNCTIONS OF LOCAL BOARD.—The functions of the local
board shall include the following:
(1) LOCAL PLAN.—Consistent with section 118, each local
board, in partnership with the chief elected official for the
local area involved, shall develop and submit a local plan to
the Governor.
(2) SELECTION OF OPERATORS AND PROVIDERS.—
(A) SELECTION OF ONE-STOP OPERATORS.—Consistent
with section 121(d), the local board, with the agreement
of the chief elected official—
(i) shall designate or certify one-stop operators as
described in section 121(d)(2)(A); and
(ii) may terminate for cause the eligibility of such
operators.
(B) SELECTION OF YOUTH PROVIDERS.—Consistent with
section 123, the local board shall identify eligible providers
of youth activities in the local area by awarding grants
or contracts on a competitive basis, based on the recommendations of the youth council.
(C) IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.—Consistent with section 122, the local board
shall identify eligible providers of training services
described in section 134(d)(4) in the local area.
(D) IDENTIFICATION OF ELIGIBLE PROVIDERS OF INTENSIVE SERVICES.—If the one-stop operator does not provide
intensive services in a local area, the local board shall
identify eligible providers of intensive services described
in section 134(d)(3) in the local area by awarding contracts.
(3) BUDGET AND ADMINISTRATION.—
(A) BUDGET.—The local board shall develop a budget
for the purpose of carrying out the duties of the local
board under this section, subject to the approval of the
chief elected official.
(B) ADMINISTRATION.—
(i) GRANT RECIPIENT.—
(I) IN GENERAL.—The chief elected official in
a local area shall serve as the local grant recipient
for, and shall be liable for any misuse of, the
grant funds allocated to the local area under sections 128 and 133, unless the chief elected official
reaches an agreement with the Governor for the

112 STAT. 958

PUBLIC LAW 105–220—AUG. 7, 1998

Governor to act as the local grant recipient and
bear such liability.
(II) DESIGNATION.—In order to assist in the
administration of the grant funds, the chief elected
official or the Governor, where the Governor serves
as the local grant recipient for a local area, may
designate an entity to serve as a local grant subrecipient for such funds or as a local fiscal agent.
Such designation shall not relieve the chief elected
official or the Governor of the liability for any
misuse of grant funds as described in subclause
(I).
(III) DISBURSAL.—The local grant recipient or
an entity designated under subclause (II) shall
disburse such funds for workforce investment
activities at the direction of the local board, pursuant to the requirements of this title, if the direction
does not violate a provision of this Act. The local
grant recipient or entity designated under subclause (II) shall disburse the funds immediately
on receiving such direction from the local board.
(ii) STAFF.—The local board may employ staff.
(iii) GRANTS AND DONATIONS.—The local board may
solicit and accept grants and donations from sources
other than Federal funds made available under this
Act.
(4) PROGRAM OVERSIGHT.—The local board, in partnership
with the chief elected official, shall conduct oversight with
respect to local programs of youth activities authorized under
section 129, local employment and training activities authorized
under section 134, and the one-stop delivery system in the
local area.
(5) NEGOTIATION OF LOCAL PERFORMANCE MEASURES.—The
local board, the chief elected official, and the Governor shall
negotiate and reach agreement on local performance measures
as described in section 136(c).
(6) EMPLOYMENT STATISTICS SYSTEM.—The local board shall
assist the Governor in developing the statewide employment
statistics system described in section 15(e) of the WagnerPeyser Act.
(7) EMPLOYER LINKAGES.—The local board shall coordinate
the workforce investment activities authorized under this subtitle and carried out in the local area with economic development strategies and develop other employer linkages with such
activities.
(8) CONNECTING, BROKERING, AND COACHING.—The local
board shall promote the participation of private sector employers in the statewide workforce investment system and ensure
the effective provision, through the system, of connecting,
brokering, and coaching activities, through intermediaries such
as the one-stop operator in the local area or through other
organizations, to assist such employers in meeting hiring needs.
(e) SUNSHINE PROVISION.—The local board shall make available
to the public, on a regular basis through open meetings, information
regarding the activities of the local board, including information

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 959

regarding the local plan prior to submission of the plan, and regarding membership, the designation and certification of one-stop operators, and the award of grants or contracts to eligible providers
of youth activities, and on request, minutes of formal meetings
of the local board.
(f ) LIMITATIONS.—
(1) TRAINING SERVICES.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), no local board may provide training services described
in section 134(d)(4).
(B) WAIVERS OF TRAINING PROHIBITION.—The Governor
of the State in which a local board is located may, pursuant
to a request from the local board, grant a written waiver
of the prohibition set forth in subparagraph (A) (relating
to the provision of training services) for a program of
training services, if the local board—
(i) submits to the Governor a proposed request
for the waiver that includes—
(I) satisfactory evidence that there is an
insufficient number of eligible providers of such
a program of training services to meet local
demand in the local area;
(II) information demonstrating that the board
meets the requirements for an eligible provider
of training services under section 122; and
(III) information demonstrating that the program of training services prepares participants for
an occupation that is in demand in the local area;
(ii) makes the proposed request available to eligible
providers of training services and other interested
members of the public for a public comment period
of not less than 30 days; and
(iii) includes, in the final request for the waiver,
the evidence and information described in clause (i)
and the comments received pursuant to clause (ii).
(C) DURATION.—A waiver granted to a local board
under subparagraph (B) shall apply for a period of not
to exceed 1 year. The waiver may be renewed for additional
periods of not to exceed 1 year, pursuant to requests from
the local board, if the board meets the requirements of
subparagraph (B) in making the requests.
(D) REVOCATION.—The Governor may revoke a waiver
granted under this paragraph during the appropriate
period described in subparagraph (C) if the State determines that the local board involved has engaged in a pattern of inappropriate referrals to training services operated
by the local board.
(2) CORE SERVICES; INTENSIVE SERVICES; DESIGNATION OR
CERTIFICATION AS ONE-STOP OPERATORS.—A local board may
provide core services described in section 134(d)(2) or intensive
services described in section 134(d)(3) through a one-stop delivery system described in section 134(c) or be designated or
certified as a one-stop operator only with the agreement of
the chief elected official and the Governor.
(3) LIMITATION ON AUTHORITY.—Nothing in this Act shall
be construed to provide a local board with the authority to
mandate curricula for schools.

Applicability.

112 STAT. 960

PUBLIC LAW 105–220—AUG. 7, 1998

(g) CONFLICT OF INTEREST.—A member of a local board may
not—
(1) vote on a matter under consideration by the local
board—
(A) regarding the provision of services by such member
(or by an entity that such member represents); or
(B) that would provide direct financial benefit to such
member or the immediate family of such member; or
(2) engage in any other activity determined by the Governor
to constitute a conflict of interest as specified in the State
plan.
(h) YOUTH COUNCIL.—
(1) ESTABLISHMENT.—There shall be established, as a subgroup within each local board, a youth council appointed by
the local board, in cooperation with the chief elected official
for the local area.
(2) MEMBERSHIP.—The membership of each youth council—
(A) shall include—
(i) members of the local board described in
subparagraph (A) or (B) of subsection (b)(2) with special
interest or expertise in youth policy;
(ii) representatives of youth service agencies,
including juvenile justice and local law enforcement
agencies;
(iii) representatives of local public housing authorities;
(iv) parents of eligible youth seeking assistance
under this subtitle;
(v) individuals, including former participants, and
representatives of organizations, that have experience
relating to youth activities; and
(vi) representatives of the Job Corps, as appropriate; and
(B) may include such other individuals as the chairperson of the local board, in cooperation with the chief
elected official, determines to be appropriate.
(3) RELATIONSHIP TO LOCAL BOARD.—Members of the youth
council who are not members of the local board described in
subparagraphs (A) and (B) of subsection (b)(2) shall be voting
members of the youth council and nonvoting members of the
board.
(4) DUTIES.—The duties of the youth council include—
(A) developing the portions of the local plan relating
to eligible youth, as determined by the chairperson of the
local board;
(B) subject to the approval of the local board and
consistent with section 123—
(i) recommending eligible providers of youth activities, to be awarded grants or contracts on a competitive
basis by the local board to carry out the youth activities; and
(ii) conducting oversight with respect to the eligible
providers of youth activities, in the local area;
(C) coordinating youth activities authorized under
section 129 in the local area; and
(D) other duties determined to be appropriate by the
chairperson of the local board.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 961

(i) ALTERNATIVE ENTITY.—
(1) IN GENERAL.—For purposes of complying with subsections (a), (b), and (c), and paragraphs (1) and (2) of subsection
(h), a State may use any local entity (including a local council,
regional workforce development board, or similar entity) that—
(A) is established to serve the local area (or the service
delivery area that most closely corresponds to the local
area);
(B) is in existence on December 31, 1997;
(C)(i) is established pursuant to section 102 of the
Job Training Partnership Act, as in effect on December
31, 1997; or
(ii) is substantially similar to the local board described
in subsections (a), (b), and (c), and paragraphs (1) and
(2) of subsection (h); and
(D) includes—
(i) representatives of business in the local area;
and
(ii)(I) representatives of labor organizations (for
a local area in which employees are represented by
labor organizations), nominated by local labor federations; or
(II) (for a local area in which no employees are
represented by such organizations), other representatives of employees in the local area.
(2) REFERENCES.—References in this Act to a local board
or a youth council shall be considered to include such an entity
or a subgroup of such an entity, respectively.
SEC. 118. LOCAL PLAN.

(a) IN GENERAL.—Each local board shall develop and submit
to the Governor a comprehensive 5-year local plan (referred to
in this title as the ‘‘local plan’’), in partnership with the appropriate
chief elected official. The plan shall be consistent with the State
plan.
(b) CONTENTS.—The local plan shall include—
(1) an identification of—
(A) the workforce investment needs of businesses, jobseekers, and workers in the local area;
(B) the current and projected employment opportunities in the local area; and
(C) the job skills necessary to obtain such employment
opportunities;
(2) a description of the one-stop delivery system to be
established or designated in the local area, including—
(A) a description of how the local board will ensure
the continuous improvement of eligible providers of services
through the system and ensure that such providers meet
the employment needs of local employers and participants;
and
(B) a copy of each memorandum of understanding
described in section 121(c) (between the local board and
each of the one-stop partners) concerning the operation
of the one-stop delivery system in the local area;
(3) a description of the local levels of performance negotiated with the Governor and chief elected official pursuant
to section 136(c), to be used to measure the performance of

29 USC 2833.

112 STAT. 962

PUBLIC LAW 105–220—AUG. 7, 1998

the local area and to be used by the local board for measuring
the performance of the local fiscal agent (where appropriate),
eligible providers, and the one-stop delivery system, in the
local area;
(4) a description and assessment of the type and availability
of adult and dislocated worker employment and training activities in the local area;
(5) a description of how the local board will coordinate
workforce investment activities carried out in the local area
with statewide rapid response activities, as appropriate;
(6) a description and assessment of the type and availability
of youth activities in the local area, including an identification
of successful providers of such activities;
(7) a description of the process used by the local board,
consistent with subsection (c), to provide an opportunity for
public comment, including comment by representatives of
businesses and comment by representatives of labor organizations, and input into the development of the local plan, prior
to submission of the plan;
(8) an identification of the entity responsible for the disbursal of grant funds described in section 117(d)(3)(B)(i)(III),
as determined by the chief elected official or the Governor
under section 117(d)(3)(B)(i);
(9) a description of the competitive process to be used
to award the grants and contracts in the local area for activities
carried out under this subtitle; and
(10) such other information as the Governor may require.
(c) PROCESS.—Prior to the date on which the local board submits
a local plan under this section, the local board shall—
(1) make available copies of a proposed local plan to the
public through such means as public hearings and local news
media;
(2) allow members of the local board and members of the
public, including representatives of business and representatives of labor organizations, to submit comments on the proposed local plan to the local board, not later than the end
of the 30-day period beginning on the date on which the proposed local plan is made available; and
(3) include with the local plan submitted to the Governor
under this section any such comments that represent disagreement with the plan.
(d) PLAN SUBMISSION AND APPROVAL.—A local plan submitted
to the Governor under this section shall be considered to be
approved by the Governor at the end of the 90-day period beginning
on the day the Governor receives the plan, unless the Governor
makes a written determination during the 90-day period that—
(1) deficiencies in activities carried out under this subtitle
have been identified, through audits conducted under section
184 or otherwise, and the local area has not made acceptable
progress in implementing corrective measures to address the
deficiencies; or
(2) the plan does not comply with this title.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 963

CHAPTER 3—WORKFORCE INVESTMENT ACTIVITIES
PROVIDERS
SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.

(a) IN GENERAL.—Consistent with the State plan, the local
board for a local area, with the agreement of the chief elected
official for the local area, shall—
(1) develop and enter into the memorandum of understanding described in subsection (c) with one-stop partners;
(2) designate or certify one-stop operators under subsection
(d); and
(3) conduct oversight with respect to the one-stop delivery
system in the local area.
(b) ONE-STOP PARTNERS.—
(1) REQUIRED PARTNERS.—
(A) IN GENERAL.—Each entity that carries out a
program or activities described in subparagraph (B) shall—
(i) make available to participants, through a onestop delivery system, the services described in section
134(d)(2) that are applicable to such program or activities; and
(ii) participate in the operation of such system
consistent with the terms of the memorandum
described in subsection (c), and with the requirements
of the Federal law in which the program or activities
are authorized.
(B) PROGRAMS AND ACTIVITIES.—The programs and
activities referred to in subparagraph (A) consist of—
(i) programs authorized under this title;
(ii) programs authorized under the Wagner-Peyser
Act (29 U.S.C. 49 et seq.);
(iii) adult education and literacy activities
authorized under title II;
(iv) programs authorized under title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.);
(v) programs authorized under section 403(a)(5)
of the Social Security Act (42 U.S.C. 603(a)(5)) (as
added by section 5001 of the Balanced Budget Act
of 1997);
(vi) activities authorized under title V of the Older
Americans Act of 1965 (42 U.S.C. 3056 et seq.);
(vii) postsecondary vocational education activities
authorized under the Carl D. Perkins Vocational and
Applied Technology Education Act (20 U.S.C. 2301 et
seq.);
(viii) activities authorized under chapter 2 of title
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
(ix) activities authorized under chapter 41 of title
38, United States Code;
(x) employment and training activities carried out
under the Community Services Block Grant Act (42
U.S.C. 9901 et seq.);
(xi) employment and training activities carried out
by the Department of Housing and Urban Development; and

29 USC 2841.

Contracts.

112 STAT. 964

PUBLIC LAW 105–220—AUG. 7, 1998
(xii) programs authorized under State unemployment compensation laws (in accordance with applicable
Federal law).
(2) ADDITIONAL PARTNERS.—
(A) IN GENERAL.—In addition to the entities described
in paragraph (1), other entities that carry out a human
resource program described in subparagraph (B) may—
(i) make available to participants, through the onestop delivery system, the services described in section
134(d)(2) that are applicable to such program; and
(ii) participate in the operation of such system
consistent with the terms of the memorandum
described in subsection (c), and with the requirements
of the Federal law in which the program is authorized;
if the local board and chief elected official involved approve
such participation.
(B) PROGRAMS.—The programs referred to in subparagraph (A) may include—
(i) programs authorized under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.);
(ii) programs authorized under section 6(d)(4) of
the Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4));
(iii) work programs authorized under section 6(o)
of the Food Stamp Act of 1977 (7 U.S.C. 2015(o));
(iv) programs authorized under the National and
Community Service Act of 1990 (42 U.S.C. 12501 et
seq.); and
(v) other appropriate Federal, State, or local
programs, including programs in the private sector.
(c) MEMORANDUM OF UNDERSTANDING.—
(1) DEVELOPMENT.—The local board, with the agreement
of the chief elected official, shall develop and enter into a
memorandum of understanding (between the local board and
the one-stop partners), consistent with paragraph (2), concerning the operation of the one-stop delivery system in the local
area.
(2) CONTENTS.—Each memorandum of understanding shall
contain—
(A) provisions describing—
(i) the services to be provided through the onestop delivery system;
(ii) how the costs of such services and the operating
costs of the system will be funded;
(iii) methods for referral of individuals between
the one-stop operator and the one-stop partners, for
the appropriate services and activities; and
(iv) the duration of the memorandum and the
procedures for amending the memorandum during the
term of the memorandum; and
(B) such other provisions, consistent with the requirements of this title, as the parties to the agreement determine to be appropriate.
(d) ONE-STOP OPERATORS.—
(1) DESIGNATION AND CERTIFICATION.—Consistent with
paragraphs (2) and (3), the local board, with the agreement
of the chief elected official, is authorized to designate or certify

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 965

one-stop operators and to terminate for cause the eligibility
of such operators.
(2) ELIGIBILITY.—To be eligible to receive funds made available under this subtitle to operate a one-stop center referred
to in section 134(c), an entity (which may be a consortium
of entities)—
(A) shall be designated or certified as a one-stop
operator—
(i) through a competitive process; or
(ii) in accordance with an agreement reached
between the local board and a consortium of entities
that, at a minimum, includes 3 or more of the onestop partners described in subsection (b)(1); and
(B) may be a public or private entity, or consortium
of entities, of demonstrated effectiveness, located in the
local area, which may include—
(i) a postsecondary educational institution;
(ii) an employment service agency established
under the Wagner-Peyser Act (29 U.S.C. 49 et seq.),
on behalf of the local office of the agency;
(iii) a private, nonprofit organization (including
a community-based organization);
(iv) a private for-profit entity;
(v) a government agency; and
(vi) another interested organization or entity,
which may include a local chamber of commerce or
other business organization.
(3) EXCEPTION.—Elementary schools and secondary schools
shall not be eligible for designation or certification as onestop operators, except that nontraditional public secondary
schools and area vocational education schools shall be eligible
for such designation or certification.
(e) ESTABLISHED ONE-STOP DELIVERY SYSTEM.—If a one-stop
delivery system has been established in a local area prior to the
date of enactment of this Act, the local board, the chief elected
official, and the Governor involved may agree to certify an entity
carrying out activities through the system as a one-stop operator
for purposes of subsection (d), consistent with the requirements
of subsection (b), of the memorandum of understanding, and of
section 134(c).
SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING
SERVICES.

(a) ELIGIBILITY REQUIREMENTS.—
(1) IN GENERAL.—Except as provided in subsection (h),
to be identified as an eligible provider of training services
described in section 134(d)(4) (referred to in this section as
‘‘training services’’) in a local area and to be eligible to receive
funds made available under section 133(b) for the provision
of training services, a provider of such services shall meet
the requirements of this section.
(2) PROVIDERS.—Subject to the provisions of this section,
to be eligible to receive the funds, the provider shall be—
(A) a postsecondary educational institution that—
(i) is eligible to receive Federal funds under title
IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.); and

29 USC 2842.

112 STAT. 966

PUBLIC LAW 105–220—AUG. 7, 1998
(ii) provides a program that leads to an associate
degree, baccalaureate degree, or certificate;
(B) an entity that carries out programs under the
Act of August 16, 1937 (commonly known as the ‘‘National
Apprenticeship Act’’; 50 Stat. 664, chapter 663; 29 U.S.C.
50 et seq.); or
(C) another public or private provider of a program
of training services.
(b) INITIAL ELIGIBILITY DETERMINATION.—
(1) POSTSECONDARY EDUCATIONAL INSTITUTIONS AND ENTITIES CARRYING OUT APPRENTICESHIP PROGRAMS.—To be initially
eligible to receive funds as described in subsection (a) to carry
out a program described in subparagraph (A) or (B) of subsection (a)(2), a provider described in subparagraph (A) or (B),
respectively, of subsection (a)(2) shall submit an application,
to the local board for the local area in which the provider
desires to provide training services, at such time, in such manner, and containing such information as the local board may
require.
(2) OTHER ELIGIBLE PROVIDERS.—
(A) PROCEDURE.—Each Governor of a State shall establish a procedure for use by local boards in the State in
determining the initial eligibility of a provider described
in subsection (a)(2)(C) to receive funds as described in
subsection (a) for a program of training services, including
the initial eligibility of—
(i) a postsecondary educational institution to
receive such funds for a program not described in
subsection (a)(2)(A); and
(ii) a provider described in subsection (a)(2)(B) to
receive such funds for a program not described in
subsection (a)(2)(B).
(B) RECOMMENDATIONS.—In developing such procedure, the Governor shall solicit and take into consideration
the recommendations of local boards and providers of training services within the State.
(C) OPPORTUNITY TO SUBMIT COMMENTS.—The Governor shall provide an opportunity, during the development
of the procedure, for interested members of the public,
including representatives of business and labor organizations, to submit comments on such procedure.
(D) REQUIREMENTS.—In establishing the procedure, the
Governor shall require that, to be initially eligible to receive
funds as described in subsection (a) for a program, a provider described in subsection (a)(2)(C)—
(i) shall submit an application, to the local board
for the local area in which the provider desires to
provide training services, at such time and in such
manner as may be required, and containing a description of the program;
(ii) if the provider provides training services
through a program on the date of application, shall
include in the application an appropriate portion of
the performance information and program cost
information described in subsection (d) for the program,

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 967

as specified in the procedure, and shall meet appropriate levels of performance for the program, as specified in the procedure; and
(iii) if the provider does not provide training services on such date, shall meet appropriate requirements,
as specified in the procedure.
(c) SUBSEQUENT ELIGIBILITY DETERMINATION.—
(1) PROCEDURE.—Each Governor of a State shall establish
a procedure for use by local boards in the State in determining
the eligibility of a provider described in subsection (a)(2) to
continue to receive funds as described in subsection (a) for
a program after an initial period of eligibility under subsection
(b) (referred to in this section as ‘‘subsequent eligibility’’).
(2) RECOMMENDATIONS.—In developing such procedure, the
Governor shall solicit and take into consideration the recommendations of local boards and providers of training services
within the State.
(3) OPPORTUNITY TO SUBMIT COMMENTS.—The Governor
shall provide an opportunity, during the development of the
procedure, for interested members of the public, including representatives of business and labor organizations, to submit
comments on such procedure.
(4) CONSIDERATIONS.—In developing such procedure, the
Governor shall ensure that the procedure requires the local
boards to take into consideration, in making the determinations
of subsequent eligibility—
(A) the specific economic, geographic, and demographic
factors in the local areas in which providers seeking eligibility are located; and
(B) the characteristics of the populations served by
providers seeking eligibility, including the demonstrated
difficulties in serving such populations, where applicable.
(5) REQUIREMENTS.—In establishing the procedure, the
Governor shall require that, to be eligible to continue to receive
funds as described in subsection (a) for a program after the
initial period of eligibility, a provider described in subsection
(a)(2) shall—
(A) submit the performance information and program
cost information described in subsection (d)(1) for the program and any additional information required to be submitted in accordance with subsection (d)(2) for the program
annually to the appropriate local board at such time and
in such manner as may be required; and
(B) annually meet the performance levels described
in paragraph (6) for the program, as demonstrated utilizing
quarterly records described in section 136, in a manner
consistent with section 136.
(6) LEVELS OF PERFORMANCE.—
(A) IN GENERAL.—At a minimum, the procedure
described in paragraph (1) shall require the provider to
meet minimum acceptable levels of performance based on
the performance information referred to in paragraph
(5)(A).
(B) HIGHER LEVELS OF PERFORMANCE ELIGIBILITY.—
The local board may require higher levels of performance

112 STAT. 968

PUBLIC LAW 105–220—AUG. 7, 1998
than the levels referred to in subparagraph (A) for subsequent eligibility to receive funds as described in subsection
(a).
(d) PERFORMANCE AND COST INFORMATION.—
(1) REQUIRED INFORMATION.—For a provider of training
services to be determined to be subsequently eligible under
subsection (c) to receive funds as described in subsection (a),
such provider shall, under subsection (c), submit—
(A) verifiable program-specific performance information
consisting of—
(i) program information, including—
(I) the program completion rates for all
individuals participating in the applicable program
conducted by the provider;
(II) the percentage of all individuals participating in the applicable program who obtain unsubsidized employment, which may also include
information specifying the percentage of the
individuals who obtain unsubsidized employment
in an occupation related to the program conducted;
and
(III) the wages at placement in employment
of all individuals participating in the applicable
program; and
(ii) training services information for all participants who received assistance under section 134 to
participate in the applicable program, including—
(I) the percentage of participants who have
completed the applicable program and who are
placed in unsubsidized employment;
(II) the retention rates in unsubsidized
employment of participants who have completed
the applicable program, 6 months after the first
day of the employment;
(III) the wages received by participants who
have completed the applicable program, 6 months
after the first day of the employment involved;
and
(IV) where appropriate, the rates of licensure
or certification, attainment of academic degrees
or equivalents, or attainment of other measures
of skills, of the graduates of the applicable program; and
(B) information on program costs (such as tuition and
fees) for participants in the applicable program.
(2) ADDITIONAL INFORMATION.—Subject to paragraph (3),
in addition to the performance information described in paragraph (1)—
(A) the Governor may require that a provider submit,
under subsection (c), such other verifiable program-specific
performance information as the Governor determines to
be appropriate to obtain such subsequent eligibility, which
may include information relating to—
(i) retention rates in employment and the subsequent wages of all individuals who complete the
applicable program;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 969

(ii) where appropriate, the rates of licensure or
certification of all individuals who complete the program; and
(iii) the percentage of individuals who complete
the program who attain industry-recognized occupational skills in the subject, occupation, or industry
for which training is provided through the program,
where applicable; and
(B) the Governor, or the local board, may require a
provider to submit, under subsection (c), other verifiable
program-specific performance information to obtain such
subsequent eligibility.
(3) CONDITIONS.—
(A) IN GENERAL.—If the Governor or a local board
requests additional information under paragraph (2) that
imposes extraordinary costs on providers, or if providers
experience extraordinary costs in the collection of information required under paragraph (1)(A)(ii), the Governor or
the local board shall provide access to cost-effective methods for the collection of the information involved, or the
Governor shall provide additional resources to assist
providers in the collection of such information from funds
made available as described in sections 128(a) and
133(a)(1), as appropriate.
(B) HIGHER EDUCATION ELIGIBILITY REQUIREMENTS.—
The local board and the designated State agency described
in subsection (i) may accept program-specific performance
information consistent with the requirements for eligibility
under title IV of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.) from a provider for purposes of
enabling the provider to fulfill the applicable requirements
of this subsection, if such information is substantially similar to the information otherwise required under this subsection.
(e) LOCAL IDENTIFICATION.—
(1) IN GENERAL.—The local board shall place on a list
providers submitting an application under subsection (b)(1) and
providers determined to be initially eligible under subsection
(b)(2), and retain on the list providers determined to be subsequently eligible under subsection (c), to receive funds as
described in subsection (a) for the provision of training services
in the local area served by the local board. The list of providers
shall be accompanied by any performance information and program cost information submitted under subsection (b) or (c)
by the provider.
(2) SUBMISSION TO STATE AGENCY.—On placing or retaining
a provider on the list, the local board shall submit, to the
designated State agency described in subsection (i), the list
and the performance information and program cost information
referred to in paragraph (1). If the agency determines, within
30 days after the date of the submission, that the provider
does not meet the performance levels described in subsection
(c)(6) for the program (where applicable), the agency may
remove the provider from the list for the program. The agency
may not remove from the list an agency submitting an application under subsection (b)(1).

Records.

112 STAT. 970

Procedures.

PUBLIC LAW 105–220—AUG. 7, 1998

(3) IDENTIFICATION OF ELIGIBLE PROVIDERS.—A provider
who is placed or retained on the list under paragraph (1),
and is not removed by the designated State agency under
paragraph (2), for a program, shall be considered to be identified
as an eligible provider of training services for the program.
(4) AVAILABILITY.—
(A) STATE LIST.—The designated State agency shall
compile a single list of the providers identified under paragraph (3) from all local areas in the State and disseminate
such list, and the performance information and program
cost information described in paragraph (1), to the onestop delivery systems within the State. Such list and
information shall be made widely available to participants
in employment and training activities authorized under
section 134 and others through the one-stop delivery system.
(B) SELECTION FROM STATE LIST.—Individuals eligible
to receive training services under section 134(d)(4) shall
have the opportunity to select any of the eligible providers,
from any of the local areas in the State, that are included
on the list described in subparagraph (A) to provide the
services, consistent with the requirements of section 134.
(5) ACCEPTANCE OF INDIVIDUAL TRAINING ACCOUNTS BY
OTHER STATES.—States may enter into agreements, on a reciprocal basis, to permit eligible providers of training services
in a State to accept individual training accounts provided in
another State.
(f ) ENFORCEMENT.—
(1) ACCURACY OF INFORMATION.—If the designated State
agency, after consultation with the local board involved, determines that an eligible provider or individual supplying information on behalf of the provider intentionally supplies inaccurate
information under this section, the agency shall terminate the
eligibility of the provider to receive funds described in subsection (a) for any program for a period of time, but not less
than 2 years.
(2) NONCOMPLIANCE.—If the designated State agency, or
the local board working with the State agency, determines
that an eligible provider described in subsection (a) substantially violates any requirement under this Act, the agency,
or the local board working with the State agency, may terminate the eligibility of such provider to receive funds described
in subsection (a) for the program involved or take such other
action as the agency or local board determines to be appropriate.
(3) REPAYMENT.—A provider whose eligibility is terminated
under paragraph (1) or (2) for a program shall be liable for
repayment of all funds described in subsection (a) received
for the program during any period of noncompliance described
in such paragraph.
(4) CONSTRUCTION.—This subsection and subsection (g)
shall be construed to provide remedies and penalties that
supplement, but do not supplant, other civil and criminal remedies and penalties.
(g) APPEAL.—The Governor shall establish procedures for
providers of training services to appeal a denial of eligibility by
the local board or the designated State agency under subsection
(b), (c), or (e), a termination of eligibility or other action by the

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 971

board or agency under subsection (f ), or a denial of eligibility
by a one-stop operator under subsection (h). Such procedures shall
provide an opportunity for a hearing and prescribe appropriate
time limits to ensure prompt resolution of the appeal.
(h) ON-THE-JOB TRAINING OR CUSTOMIZED TRAINING EXCEPTION.—
(1) IN GENERAL.—Providers of on-the-job training or customized training shall not be subject to the requirements of
subsections (a) through (e).
(2) COLLECTION AND DISSEMINATION OF INFORMATION.—A
one-stop operator in a local area shall collect such performance
information from on-the-job training and customized training
providers as the Governor may require, determine whether
the providers meet such performance criteria as the Governor
may require, and disseminate information identifying providers
that meet the criteria as eligible providers, and the performance
information, through the one-stop delivery system. Providers
determined to meet the criteria shall be considered to be identified as eligible providers of training services.
(i) ADMINISTRATION.—The Governor shall designate a State
agency to make the determinations described in subsection (e)(2),
take the enforcement actions described in subsection (f ), and carry
out other duties described in this section.
SEC. 123. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.

29 USC 2843.

From funds allocated under paragraph (2)(A) or (3) of section
128(b) to a local area, the local board for such area shall identify
eligible providers of youth activities by awarding grants or contracts
on a competitive basis, based on the recommendations of the youth
council and on the criteria contained in the State plan, to the
providers to carry out the activities, and shall conduct oversight
with respect to the providers, in the local area.
CHAPTER 4—YOUTH ACTIVITIES
SEC. 126. GENERAL AUTHORIZATION.

29 USC 2851.

The Secretary shall make an allotment under section
127(b)(1)(C) to each State that meets the requirements of section
112 and a grant to each outlying area that complies with the
requirements of this title, to assist the State or outlying area,
and to enable the State or outlying area to assist local areas,
for the purpose of providing workforce investment activities for
eligible youth in the State or outlying area and in the local areas.
SEC. 127. STATE ALLOTMENTS.

(a) IN GENERAL.—The Secretary shall—
(1) for each fiscal year in which the amount appropriated
under section 137(a) exceeds $1,000,000,000, reserve a portion
determined under subsection (b)(1)(A) of the amount appropriated under section 137(a) for use under sections 167 (relating
to migrant and seasonal farmworker programs) and 169 (relating to youth opportunity grants); and
(2) use the remainder of the amount appropriated under
section 137(a) for a fiscal year to make allotments and grants
in accordance with subparagraphs (B) and (C) of subsection
(b)(1) and make funds available for use under section 166
(relating to Native American programs).

29 USC 2852.

112 STAT. 972

Territories.

PUBLIC LAW 105–220—AUG. 7, 1998
(b) ALLOTMENT AMONG STATES.—
(1) YOUTH ACTIVITIES.—
(A) YOUTH OPPORTUNITY GRANTS.—
(i) IN GENERAL.—For each fiscal year in which
the amount appropriated under section 137(a) exceeds
$1,000,000,000, the Secretary shall reserve a portion
of the amount to provide youth opportunity grants
and other activities under section 169 (relating to youth
opportunity grants) and provide youth activities under
section 167 (relating to migrant and seasonal farmworker programs).
(ii) PORTION.—The portion referred to in clause
(i) shall equal, for a fiscal year—
(I) except as provided in subclause (II), the
difference obtained by subtracting $1,000,000,000
from the amount appropriated under section 137(a)
for the fiscal year; or
(II) for any fiscal year in which the amount
is $1,250,000,000 or greater, $250,000,000.
(iii) YOUTH ACTIVITIES FOR FARMWORKERS.—From
the portion described in clause (i) for a fiscal year,
the Secretary shall make available 4 percent of such
portion to provide youth activities under section 167.
(iv) ROLE MODEL ACADEMY PROJECT.—From the
portion described in clause (i) for fiscal year 1999,
the Secretary shall make available such sums as the
Secretary determines to be appropriate to carry out
section 169(g).
(B) OUTLYING AREAS.—
(i) IN GENERAL.—From the amount made available
under subsection (a)(2) for a fiscal year, the Secretary
shall reserve not more than 1⁄4 of 1 percent of the
amount appropriated under section 137(a) for the fiscal
year—
(I) to provide assistance to the outlying areas
to carry out youth activities and statewide
workforce investment activities; and
(II) for each of fiscal years 1999, 2000, and
2001, to carry out the competition described in
clause (ii), except that the funds reserved to carry
out such clause for any such fiscal year shall not
exceed the amount reserved for the Freely Associated States for fiscal year 1997, from amounts
reserved under sections 252(a) and 262(a)(1) of
the Job Training Partnership Act (as in effect on
the day before the date of enactment of this Act).
(ii) LIMITATION FOR FREELY ASSOCIATED STATES.—
(I) COMPETITIVE GRANTS.—The Secretary shall
use funds described in clause (i)(II) to award grants
to Guam, American Samoa, the Commonwealth
of the Northern Mariana Islands, and the Freely
Associated States to carry out youth activities and
statewide workforce investment activities.
(II) AWARD BASIS.—The Secretary shall award
grants pursuant to subclause (I) on a competitive
basis and pursuant to the recommendations of
experts in the field of employment and training,

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 973

working through the Pacific Region Educational
Laboratory in Honolulu, Hawaii.
(III) ASSISTANCE REQUIREMENTS.—Any Freely
Associated State that desires to receive assistance
under this subparagraph shall submit an application to the Secretary and shall include in the
application for assistance—
(aa) information demonstrating that the
Freely Associated State will meet all conditions that apply to States under this title;
(bb) an assurance that, notwithstanding
any other provision of this title, the Freely
Associated State will use such assistance only
for the direct provision of services; and
(cc) such other information and assurances as the Secretary may require.
(IV) TERMINATION OF ELIGIBILITY.—Notwithstanding any other provision of law, the Freely
Associated States shall not receive any assistance
under this subparagraph for any program year
that begins after September 30, 2001.
(V) ADMINISTRATIVE COSTS.—The Secretary
may provide not more than 5 percent of the funds
made available for grants under subclause (I) to
pay the administrative costs of the Pacific Region
Educational Laboratory in Honolulu, Hawaii,
regarding activities assisted under this clause.
(iii) ADDITIONAL REQUIREMENT.—The provisions of
Public Law 95–134, permitting the consolidation of
grants by the outlying areas, shall not apply to assistance provided to those areas, including the Freely Associated States, under this subparagraph.
(C) STATES.—
(i) IN GENERAL.—After determining the amounts
to be reserved under subparagraph (A) (if any) and
subparagraph (B), the Secretary shall—
(I) from the amount referred to in subsection
(a)(2) for a fiscal year, make available not more
than 1.5 percent to provide youth activities under
section 166 (relating to Native Americans); and
(II) allot the remainder of the amount referred
to in subsection (a)(2) for a fiscal year to the States
pursuant to clause (ii) for youth activities and
statewide workforce investment activities.
(ii) FORMULA.—Subject to clauses (iii) and (iv), of
the remainder—
(I) 331⁄3 percent shall be allotted on the basis
of the relative number of unemployed individuals
in areas of substantial unemployment in each
State, compared to the total number of unemployed
individuals in areas of substantial unemployment
in all States;
(II) 331⁄3 percent shall be allotted on the basis
of the relative excess number of unemployed
individuals in each State, compared to the total
excess number of unemployed individuals in all
States; and

112 STAT. 974

PUBLIC LAW 105–220—AUG. 7, 1998
(III) 331⁄3 percent shall be allotted on the basis
of the relative number of disadvantaged youth in
each State, compared to the total number of disadvantaged youth in all States, except as described
in clause (iii).
(iii) CALCULATION.—In determining an allotment
under clause (ii)(III) for any State in which there is
a local area designated under section 116(a)(2)(B)
(relating to the area served by a rural concentrated
employment program grant recipient), the allotment
shall be based on the higher of—
(I) the number of individuals who are age
16 through 21 in families with an income below
the low-income level in such area; or
(II) the number of disadvantaged youth in such
area.
(iv) MINIMUM AND MAXIMUM PERCENTAGES AND
MINIMUM ALLOTMENTS.—In making allotments under
this subparagraph, the Secretary shall ensure the
following:
(I) MINIMUM PERCENTAGE AND ALLOTMENT.—
Subject to subclause (IV), the Secretary shall
ensure that no State shall receive an allotment
for a fiscal year that is less than the greater of—
(aa) an amount based on 90 percent of
the allotment percentage of the State for the
preceding fiscal year; or
(bb) 100 percent of the total of the allotments of the State under sections 252 and
262 of the Job Training Partnership Act (as
in effect on the day before the date of enactment of this Act) for fiscal year 1998.
(II) SMALL STATE MINIMUM ALLOTMENT.—
Subject to subclauses (I), (III), and (IV), the Secretary shall ensure that no State shall receive
an allotment under this subparagraph that is less
than the total of—
(aa) 3⁄10 of 1 percent of $1,000,000,000
of the remainder described in clause (i)(II) for
the fiscal year; and
(bb) if the remainder described in clause
(i)(II)
for
the
fiscal
year
exceeds
$1,000,000,000, 2⁄5 of 1 percent of the excess.
(III) MAXIMUM PERCENTAGE.—Subject to subclause (I), the Secretary shall ensure that no State
shall receive an allotment percentage for a fiscal
year that is more than 130 percent of the allotment
percentage of the State for the preceding fiscal
year.
(IV) MINIMUM FUNDING.—In any fiscal year
in which the remainder described in clause (i)(II)
does not exceed $1,000,000,000, the minimum
allotments under subclauses (I) and (II) shall be
calculated by the methodology for calculating the
corresponding allotments under parts B and C of
title II of the Job Training Partnership Act, as
in effect on July 1, 1998.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 975

(2) DEFINITIONS.—For the purpose of the formula specified
in paragraph (1)(C):
(A) ALLOTMENT PERCENTAGE.—The term ‘‘allotment
percentage’’, used with respect to fiscal year 2000 or a
subsequent fiscal year, means a percentage of the remainder described in paragraph (1)(C)(i)(II) that is received
through an allotment made under paragraph (1)(C) for
the fiscal year. The term, used with respect to fiscal year
1998 or 1999, means the percentage of the amounts allotted
to States under sections 252(b) and 262(a) of the Job Training Partnership Act (as in effect on the day before the
date of enactment of this Act) that is received under such
sections by the State involved for fiscal year 1998 or 1999.
(B) AREA OF SUBSTANTIAL UNEMPLOYMENT.—The term
‘‘area of substantial unemployment’’ means any area that
is of sufficient size and scope to sustain a program of
workforce investment activities carried out under this subtitle and that has an average rate of unemployment of
at least 6.5 percent for the most recent 12 months, as
determined by the Secretary. For purposes of this subparagraph, determinations of areas of substantial unemployment shall be made once each fiscal year.
(C) DISADVANTAGED YOUTH.—Subject to paragraph (3),
the term ‘‘disadvantaged youth’’ means an individual who
is age 16 through 21 who received an income, or is a
member of a family that received a total family income,
that, in relation to family size, does not exceed the higher
of—
(i) the poverty line; or
(ii) 70 percent of the lower living standard income
level.
(D) EXCESS NUMBER.—The term ‘‘excess number’’
means, used with respect to the excess number of
unemployed individuals within a State, the higher of—
(i) the number that represents the number of
unemployed individuals in excess of 4.5 percent of the
civilian labor force in the State; or
(ii) the number that represents the number of
unemployed individuals in excess of 4.5 percent of the
civilian labor force in areas of substantial unemployment in such State.
(E) LOW-INCOME LEVEL.—The term ‘‘low-income level’’
means $7,000 with respect to income in 1969, and for
any later year means that amount that bears the same
relationship to $7,000 as the Consumer Price Index for
that year bears to the Consumer Price Index for 1969,
rounded to the nearest $1,000.
(3) SPECIAL RULE.—For the purpose of the formula specified
in paragraph (1)(C), the Secretary shall, as appropriate and
to the extent practicable, exclude college students and members
of the Armed Forces from the determination of the number
of disadvantaged youth.
(4) DEFINITION.—In this subsection, the term ‘‘Freely Associated State’’ means the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau.
(c) REALLOTMENT.—

112 STAT. 976

PUBLIC LAW 105–220—AUG. 7, 1998
(1) IN GENERAL.—The Secretary shall, in accordance with
this subsection, reallot to eligible States amounts that are
allotted under this section for youth activities and statewide
workforce investment activities and that are available for
reallotment.
(2) AMOUNT.—The amount available for reallotment for
a program year is equal to the amount by which the unobligated
balance of the State allotment under this section for such
activities, at the end of the program year prior to the program
year for which the determination under this paragraph is made,
exceeds 20 percent of such allotment for the prior program
year.
(3) REALLOTMENT.—In making reallotments to eligible
States of amounts available pursuant to paragraph (2) for a
program year, the Secretary shall allot to each eligible State
an amount based on the relative amount allotted to such State
under this section for such activities for the prior program
year, as compared to the total amount allotted to all eligible
States under this section for such activities for such prior
program year.
(4) ELIGIBILITY.—For purposes of this subsection, an
eligible State means a State that has obligated at least 80
percent of the State allotment under this section for such
activities for the program year prior to the program year for
which the determination under paragraph (2) is made.
(5) PROCEDURES.—The Governor of each State shall prescribe uniform procedures for the obligation of funds by local
areas within the State in order to avoid the requirement that
funds be made available for reallotment under this subsection.
The Governor shall further prescribe equitable procedures for
making funds available from the State and local areas in the
event that a State is required to make funds available for
reallotment under this subsection.

29 USC 2853.

SEC. 128. WITHIN STATE ALLOCATIONS.

(a) RESERVATIONS FOR STATE ACTIVITIES.—
(1) IN GENERAL.—The Governor of a State shall reserve
not more than 15 percent of each of the amounts allotted
to the State under section 127(b)(1)(C) and paragraphs (1)(B)
and (2)(B) of section 132(b) for a fiscal year for statewide
workforce investment activities.
(2) USE OF FUNDS.—Regardless of whether the reserved
amounts were allotted under section 127(b)(1)(C), or under
paragraph (1)(B) or (2)(B) of section 132(b), the Governor may
use the reserved amounts to carry out statewide youth activities
described in section 129(b) or statewide employment and training activities, for adults or for dislocated workers, described
in paragraph (2)(B) or (3) of section 134(a).
(b) WITHIN STATE ALLOCATION.—
(1) METHODS.—The Governor, acting in accordance with
the State plan, and after consulting with chief elected officials
in the local areas, shall allocate the funds that are allotted
to the State for youth activities and statewide workforce investment activities under section 127(b)(1)(C) and are not reserved
under subsection (a), in accordance with paragraph (2) or (3).
(2) FORMULA ALLOCATION.—
(A) YOUTH ACTIVITIES.—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 977

(i) ALLOCATION.—In allocating the funds described
in paragraph (1) to local areas, a State may allocate—
(I) 331⁄3 percent of the funds on the basis
described in section 127(b)(1)(C)(ii)(I);
(II) 331⁄3 percent of the funds on the basis
described in section 127(b)(1)(C)(ii)(II); and
(III) 331⁄3 percent of the funds on the basis
described in clauses (ii)(III) and (iii) of section
127(b)(1)(C).
(ii) MINIMUM PERCENTAGE.—Effective at the end
of the second full fiscal year after the date on which
a local area is designated under section 116, the local
area shall not receive an allocation percentage for a
fiscal year that is less than 90 percent of the average
allocation percentage of the local area for the 2 preceding fiscal years. Amounts necessary for increasing such
allocations to local areas to comply with the preceding
sentence shall be obtained by ratably reducing the
allocations to be made to other local areas under this
subparagraph.
(iii) DEFINITION.—The term ‘‘allocation percentage’’, used with respect to fiscal year 2000 or a subsequent fiscal year, means a percentage of the funds
referred to in clause (i), received through an allocation
made under this subparagraph, for the fiscal year.
(B) APPLICATION.—For purposes of carrying out
subparagraph (A)—
(i) references in section 127(b) to a State shall
be deemed to be references to a local area;
(ii) references in section 127(b) to all States shall
be deemed to be references to all local areas in the
State involved; and
(iii) except as described in clause (i), references
in section 127(b)(1) to the term ‘‘excess number’’ shall
be considered to be references to the term as defined
in section 127(b)(2).
(3) YOUTH DISCRETIONARY ALLOCATION.—In lieu of making
the allocation described in paragraph (2)(A), in allocating the
funds described in paragraph (1) to local areas, a State may
distribute—
(A) a portion equal to not less than 70 percent of
the funds in accordance with paragraph (2)(A); and
(B) the remaining portion of the funds on the basis
of a formula that—
(i) incorporates additional factors (other than the
factors described in paragraph (2)(A)) relating to—
(I) excess youth poverty in urban, rural, and
suburban local areas; and
(II) excess unemployment above the State
average in urban, rural, and suburban local areas;
and
(ii) was developed by the State board and approved
by the Secretary as part of the State plan.
(4) LIMITATION.—
(A) IN GENERAL.—Of the amount allocated to a local
area under this subsection and section 133(b) for a fiscal
year, not more than 10 percent of the amount may be

112 STAT. 978

PUBLIC LAW 105–220—AUG. 7, 1998
used by the local board for the administrative cost of carrying out local workforce investment activities described in
subsection (d) or (e) of section 134 or in section 129(c).
(B) USE OF FUNDS.—Funds made available for administrative costs under subparagraph (A) may be used for the
administrative cost of any of the local workforce investment
activities described in subsection (d) or (e) of section 134
or in section 129(c), regardless of whether the funds were
allocated under this subsection or section 133(b).
(C) REGULATIONS.—The Secretary, after consulting
with the Governors, shall develop and issue regulations
that define the term ‘‘administrative cost’’ for purposes
of this title. Such definition shall be consistent with generally accepted accounting principles.
(c) REALLOCATION AMONG LOCAL AREAS.—
(1) IN GENERAL.—The Governor may, in accordance with
this subsection, reallocate to eligible local areas within the
State amounts that are allocated under paragraph (2)(A) or
(3) of subsection (b) for youth activities and that are available
for reallocation.
(2) AMOUNT.—The amount available for reallocation for
a program year is equal to the amount by which the unobligated
balance of the local area allocation under paragraph (2)(A)
or (3) of subsection (b) for such activities, at the end of the
program year prior to the program year for which the determination under this paragraph is made exceeds 20 percent
of such allocation for the prior program year.
(3) REALLOCATION.—In making reallocations to eligible local
areas of amounts available pursuant to paragraph (2) for a
program year, the Governor shall allocate to each eligible local
area within the State an amount based on the relative amount
allocated to such local area under subsection (b)(3) for such
activities for the prior program year, as compared to the total
amount allocated to all eligible local areas in the State under
subsection (b)(3) for such activities for such prior program
year. For purposes of this paragraph, local areas that received
allocations under subsection (b)(2)(A) for the prior program
year shall be treated as if the local areas received allocations
under subsection (b)(3) for such year.
(4) ELIGIBILITY.—For purposes of this subsection, an
eligible local area means a local area that has obligated at
least 80 percent of the local area allocation under paragraph
(2)(A) or (3) of subsection (b) for such activities, for the program
year prior to the program year for which the determination
under paragraph (2) is made.

29 USC 2854.

SEC. 129. USE OF FUNDS FOR YOUTH ACTIVITIES.

(a) PURPOSES.—The purposes of this section are—
(1) to provide, to eligible youth seeking assistance in achieving academic and employment success, effective and comprehensive activities, which shall include a variety of options for
improving educational and skill competencies and provide effective connections to employers;
(2) to ensure on-going mentoring opportunities for eligible
youth with adults committed to providing such opportunities;
(3) to provide opportunities for training to eligible youth;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 979

(4) to provide continued supportive services for eligible
youth;
(5) to provide incentives for recognition and achievement
to eligible youth; and
(6) to provide opportunities for eligible youth in activities
related to leadership, development, decisionmaking, citizenship,
and community service.
(b) STATEWIDE YOUTH ACTIVITIES.—
(1) IN GENERAL.—Funds reserved by a Governor for a State
as described in sections 128(a) and 133(a)(1)—
(A) shall be used to carry out the statewide youth
activities described in paragraph (2); and
(B) may be used to carry out any of the statewide
youth activities described in paragraph (3),
regardless of whether the funds were allotted to the State
under section 127(b)(1) or under paragraph (1) or (2) of section
132(b).
(2) REQUIRED STATEWIDE YOUTH ACTIVITIES.—A State shall
use funds reserved as described in sections 128(a) and 133(a)(1)
(regardless of whether the funds were allotted to the State
under section 127(b)(1) or paragraph (1) or (2) of section 132(b))
to carry out statewide youth activities, which shall include—
(A) disseminating a list of eligible providers of youth
activities described in section 123;
(B) carrying out activities described in clauses (ii)
through (vi) of section 134(a)(2)(B), except that references
in such clauses to activities authorized under section 134
shall be considered to be references to activities authorized
under this section; and
(C) providing additional assistance to local areas that
have high concentrations of eligible youth to carry out
the activities described in subsection (c).
(3) ALLOWABLE STATEWIDE YOUTH ACTIVITIES.—A State may
use funds reserved as described in sections 128(a) and 133(a)(1)
(regardless of whether the funds were allotted to the State
under section 127(b)(1) or paragraph (1) or (2) of section 132(b))
to carry out additional statewide youth activities, which may
include—
(A) carrying out activities described in clauses (i), (ii),
(iii), (iv)(II), and (vi)(II) of section 134(a)(3)(A), except that
references in such clauses to activities authorized under
section 134 shall be considered to be references to activities
authorized under this section; and
(B) carrying out, on a statewide basis, activities
described in subsection (c).
(4) PROHIBITION.—No funds described in this subsection
or section 134(a) shall be used to develop or implement education curricula for school systems in the State.
(c) LOCAL ELEMENTS AND REQUIREMENTS.—
(1) PROGRAM DESIGN.—Funds allocated to a local area for
eligible youth under paragraph (2)(A) or (3), as appropriate,
of section 128(b) shall be used to carry out, for eligible youth,
programs that—
(A) provide an objective assessment of the academic
levels, skill levels, and service needs of each participant,
which assessment shall include a review of basic skills,
occupational skills, prior work experience, employability,

112 STAT. 980

PUBLIC LAW 105–220—AUG. 7, 1998
interests, aptitudes (including interests and aptitudes for
nontraditional jobs), supportive service needs, and developmental needs of such participant, except that a new assessment of a participant is not required if the provider carrying out such a program determines it is appropriate to
use a recent assessment of the participant conducted pursuant to another education or training program;
(B) develop service strategies for each participant that
shall identify an employment goal (including, in appropriate circumstances, nontraditional employment), appropriate achievement objectives, and appropriate services for
the participant taking into account the assessment conducted pursuant to subparagraph (A), except that a new
service strategy for a participant is not required if the
provider carrying out such a program determines it is
appropriate to use a recent service strategy developed for
the participant under another education or training program; and
(C) provide—
(i) preparation for postsecondary educational
opportunities, in appropriate cases;
(ii) strong linkages between academic and occupational learning;
(iii) preparation for unsubsidized employment
opportunities, in appropriate cases; and
(iv) effective connections to intermediaries with
strong links to—
(I) the job market; and
(II) local and regional employers.
(2) PROGRAM ELEMENTS.—The programs described in paragraph (1) shall provide elements consisting of—
(A) tutoring, study skills training, and instruction,
leading to completion of secondary school, including dropout
prevention strategies;
(B) alternative secondary school services, as appropriate;
(C) summer employment opportunities that are directly
linked to academic and occupational learning;
(D) as appropriate, paid and unpaid work experiences,
including internships and job shadowing;
(E) occupational skill training, as appropriate;
(F) leadership development opportunities, which may
include community service and peer-centered activities
encouraging responsibility and other positive social behaviors during non-school hours, as appropriate;
(G) supportive services;
(H) adult mentoring for the period of participation
and a subsequent period, for a total of not less than 12
months;
(I) followup services for not less than 12 months after
the completion of participation, as appropriate; and
(J) comprehensive guidance and counseling, which may
include drug and alcohol abuse counseling and referral,
as appropriate.
(3) ADDITIONAL REQUIREMENTS.—
(A) INFORMATION AND REFERRALS.—Each local board
shall ensure that each participant or applicant who meets

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 981

the minimum income criteria to be considered an eligible
youth shall be provided—
(i) information on the full array of applicable or
appropriate services that are available through the
local board or other eligible providers or one-stop partners, including those receiving funds under this subtitle; and
(ii) referral to appropriate training and educational
programs that have the capacity to serve the participant or applicant either on a sequential or concurrent
basis.
(B) APPLICANTS NOT MEETING ENROLLMENT REQUIREMENTS.—Each eligible provider of a program of youth activities shall ensure that an eligible applicant who does not
meet the enrollment requirements of the particular program or who cannot be served shall be referred for further
assessment, as necessary, and referred to appropriate programs in accordance with subparagraph (A) to meet the
basic skills and training needs of the applicant.
(C) INVOLVEMENT IN DESIGN AND IMPLEMENTATION.—
The local board shall ensure that parents, participants,
and other members of the community with experience relating to programs for youth are involved in the design and
implementation of the programs described in paragraph
(1).
(4) PRIORITY.—
(A) IN GENERAL.—At a minimum, 30 percent of the
funds described in paragraph (1) shall be used to provide
youth activities to out-of-school youth.
(B) EXCEPTION.—A State that receives a minimum
allotment under section 127(b)(1) in accordance with section
127(b)(1)(C)(iv)(II) or under section 132(b)(1) in accordance
with section 132(b)(1)(B)(iv)(II) may reduce the percentage
described in subparagraph (A) for a local area in the State,
if—
(i) after an analysis of the eligible youth population
in the local area, the State determines that the local
area will be unable to meet the percentage described
in subparagraph (A) due to a low number of out-ofschool youth; and
(ii)(I) the State submits to the Secretary, for the
local area, a request including a proposed reduced
percentage for purposes of subparagraph (A), and the
summary of the eligible youth population analysis; and
(II) the request is approved by the Secretary.
(5) EXCEPTIONS.—Not more than 5 percent of participants
assisted under this section in each local area may be individuals
who do not meet the minimum income criteria to be considered
eligible youth, if such individuals are within one or more of
the following categories:
(A) Individuals who are school dropouts.
(B) Individuals who are basic skills deficient.
(C) Individuals with educational attainment that is
one or more grade levels below the grade level appropriate
to the age of the individuals.
(D) Individuals who are pregnant or parenting.

112 STAT. 982

PUBLIC LAW 105–220—AUG. 7, 1998
(E) Individuals with disabilities, including learning
disabilities.
(F) Individuals who are homeless or runaway youth.
(G) Individuals who are offenders.
(H) Other eligible youth who face serious barriers to
employment as identified by the local board.
(6) PROHIBITIONS.—
(A) PROHIBITION AGAINST FEDERAL CONTROL OF EDUCATION.—No provision of this Act shall be construed to
authorize any department, agency, officer, or employee of
the United States to exercise any direction, supervision,
or control over the curriculum, program of instruction,
administration, or personnel of any educational institution,
school, or school system, or over the selection of library
resources, textbooks, or other printed or published instructional materials by any educational institution, school, or
school system.
(B) NONDUPLICATION.—All of the funds made available
under this Act shall be used in accordance with the requirements of this Act. None of the funds made available under
this Act may be used to provide funding under the Schoolto-Work Opportunities Act of 1994 (20 U.S.C. 6101 et seq.)
or to carry out, through programs funded under this Act,
activities that were funded under the School-to-Work
Opportunities Act of 1994, unless the programs funded
under this Act serve only those participants eligible to
participate in the programs under this Act.
(C) NONINTERFERENCE AND NONREPLACEMENT OF REGULAR ACADEMIC REQUIREMENTS.—No funds described in
paragraph (1) shall be used to provide an activity for
eligible youth who are not school dropouts if participation
in the activity would interfere with or replace the regular
academic requirements of the youth.
(7) LINKAGES.—In coordinating the programs authorized
under this section, youth councils shall establish linkages with
educational agencies responsible for services to participants
as appropriate.
(8) VOLUNTEERS.—The local board shall make opportunities
available for individuals who have successfully participated
in programs carried out under this section to volunteer assistance to participants in the form of mentoring, tutoring, and
other activities.
CHAPTER 5—ADULT AND DISLOCATED WORKER
EMPLOYMENT AND TRAINING ACTIVITIES

29 USC 2861.

SEC. 131. GENERAL AUTHORIZATION.

The Secretary shall make allotments under paragraphs (1)(B)
and (2)(B) of section 132(b) to each State that meets the requirements of section 112 and a grant to each outlying area that complies
with the requirements of this title, to assist the State or outlying
area, and to enable the State or outlying area to assist local areas,
for the purpose of providing workforce investment activities for
adults, and dislocated workers, in the State or outlying area and
in the local areas.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 983

SEC. 132. STATE ALLOTMENTS.

(a) IN GENERAL.—The Secretary shall—
(1) make allotments and grants from the total amount
appropriated under section 137(b) for a fiscal year in accordance
with subsection (b)(1); and
(2)(A) reserve 20 percent of the amount appropriated under
section 137(c) for a fiscal year for use under subsection (b)(2)(A),
and under sections 170(b) (relating to dislocated worker technical assistance), 171(d) (relating to dislocated worker projects),
and 173 (relating to national emergency grants); and
(B) make allotments from 80 percent of the amount appropriated under section 137(c) for a fiscal year in accordance
with subsection (b)(2)(B).
(b) ALLOTMENT AMONG STATES.—
(1) ADULT EMPLOYMENT AND TRAINING ACTIVITIES.—
(A) RESERVATION FOR OUTLYING AREAS.—
(i) IN GENERAL.—From the amount made available
under subsection (a)(1) for a fiscal year, the Secretary
shall reserve not more than 1⁄4 of 1 percent to provide
assistance to the outlying areas.
(ii) APPLICABILITY OF ADDITIONAL REQUIREMENTS.—From the amount reserved under clause (i),
the Secretary shall provide assistance to the outlying
areas for adult employment and training activities and
statewide workforce investment activities in accordance
with the requirements of section 127(b)(1)(B), except
that the reference in section 127(b)(1)(B)(i)(II) to sections 252(d) and 262(a)(1) of the Job Training Partnership Act shall be deemed to be a reference to section
202(a)(1) of the Job Training Partnership Act (as in
effect on the day before the date of enactment of this
Act).
(B) STATES.—
(i) IN GENERAL.—After determining the amount
to be reserved under subparagraph (A), the Secretary
shall allot the remainder of the amount referred to
in subsection (a)(1) for a fiscal year to the States pursuant to clause (ii) for adult employment and training
activities and statewide workforce investment activities.
(ii) FORMULA.—Subject to clauses (iii) and (iv), of
the remainder—
(I) 331⁄3 percent shall be allotted on the basis
of the relative number of unemployed individuals
in areas of substantial unemployment in each
State, compared to the total number of unemployed
individuals in areas of substantial unemployment
in all States;
(II) 331⁄3 percent shall be allotted on the basis
of the relative excess number of unemployed
individuals in each State, compared to the total
excess number of unemployed individuals in all
States; and
(III) 331⁄3 percent shall be allotted on the basis
of the relative number of disadvantaged adults
in each State, compared to the total number of

29 USC 2862.
Grants.

112 STAT. 984

PUBLIC LAW 105–220—AUG. 7, 1998
disadvantaged adults in all States, except as
described in clause (iii).
(iii) CALCULATION.—In determining an allotment
under clause (ii)(III) for any State in which there is
a local area designated under section 116(a)(2)(B), the
allotment shall be based on the higher of—
(I) the number of adults in families with an
income below the low-income level in such area;
or
(II) the number of disadvantaged adults in
such area.
(iv) MINIMUM AND MAXIMUM PERCENTAGES AND
MINIMUM ALLOTMENTS.—In making allotments under
this subparagraph, the Secretary shall ensure the following:
(I) MINIMUM PERCENTAGE AND ALLOTMENT.—
Subject to subclause (IV), the Secretary shall
ensure that no State shall receive an allotment
for a fiscal year that is less than the greater of—
(aa) an amount based on 90 percent of
the allotment percentage of the State for the
preceding fiscal year; or
(bb) 100 percent of the allotment of the
State under section 202 of the Job Training
Partnership Act (as in effect on the day before
the date of enactment of this Act) for fiscal
year 1998.
(II) SMALL STATE MINIMUM ALLOTMENT.—Subject to subclauses (I), (III), and (IV), the Secretary
shall ensure that no State shall receive an allotment under this subparagraph that is less than
the total of—
(aa) 3⁄10 of 1 percent of $960,000,000 of
the remainder described in clause (i) for the
fiscal year; and
(bb) if the remainder described in clause
(i) for the fiscal year exceeds $960,000,000,
2⁄5 of 1 percent of the excess.
(III) MAXIMUM PERCENTAGE.—Subject to subclause (I), the Secretary shall ensure that no State
shall receive an allotment percentage for a fiscal
year that is more than 130 percent of the allotment
percentage of the State for the preceding fiscal
year.
(IV) MINIMUM FUNDING.—In any fiscal year
in which the remainder described in clause (i)
does not exceed $960,000,000, the minimum allotments under subclauses (I) and (II) shall be calculated by the methodology for calculating the corresponding allotments under part A of title II of
the Job Training Partnership Act, as in effect on
July 1, 1998.
(v) DEFINITIONS.—For the purpose of the formula
specified in this subparagraph:
(I) ADULT.—The term ‘‘adult’’ means an
individual who is not less than age 22 and not
more than age 72.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 985

(II) ALLOTMENT PERCENTAGE.—The term
‘‘allotment percentage’’, used with respect to fiscal
year 2000 or a subsequent fiscal year, means a
percentage of the remainder described in clause
(i) that is received through an allotment made
under this subparagraph for the fiscal year. The
term, used with respect to fiscal year 1998 or
1999, means the percentage of the amounts allotted to States under section 202(a) of the Job Training Partnership Act (as in effect on the day before
the date of enactment of this Act) that is received
under such section by the State involved for fiscal
year 1998 or 1999.
(III) AREA OF SUBSTANTIAL UNEMPLOYMENT.—
The term ‘‘area of substantial unemployment’’
means any area that is of sufficient size and scope
to sustain a program of workforce investment
activities carried out under this subtitle and that
has an average rate of unemployment of at least
6.5 percent for the most recent 12 months, as
determined by the Secretary. For purposes of this
subclause, determinations of areas of substantial
unemployment shall be made once each fiscal year.
(IV) DISADVANTAGED ADULT.—Subject to subclause (V), the term ‘‘disadvantaged adult’’ means
an adult who received an income, or is a member
of a family that received a total family income,
that, in relation to family size, does not exceed
the higher of—
(aa) the poverty line; or
(bb) 70 percent of the lower living standard income level.
(V) DISADVANTAGED ADULT SPECIAL RULE.—
The Secretary shall, as appropriate and to the
extent practicable, exclude college students and
members of the Armed Forces from the determination of the number of disadvantaged adults.
(VI) EXCESS NUMBER.—The term ‘‘excess number’’ means, used with respect to the excess number of unemployed individuals within a State, the
higher of—
(aa) the number that represents the number of unemployed individuals in excess of 4.5
percent of the civilian labor force in the State;
or
(bb) the number that represents the number of unemployed individuals in excess of 4.5
percent of the civilian labor force in areas
of substantial unemployment in such State.
(2) DISLOCATED WORKER EMPLOYMENT AND TRAINING.—
(A) RESERVATION FOR OUTLYING AREAS.—
(i) IN GENERAL.—From the amount made available
under subsection (a)(2)(A) for a fiscal year, the Secretary shall reserve not more than 1⁄4 of 1 percent
of the amount appropriated under section 137(c) for
the fiscal year to provide assistance to the outlying
areas.

112 STAT. 986

PUBLIC LAW 105–220—AUG. 7, 1998
(ii) APPLICABILITY OF ADDITIONAL
MENTS.—From the amount reserved under

REQUIREclause (i),
the Secretary shall provide assistance to the outlying
areas for dislocated worker employment and training
activities and statewide workforce investment activities
in accordance with the requirements of section
127(b)(1)(B), except that the reference in section
127(b)(1)(B)(i)(II) to sections 252(a) and 262(a)(1) of
the Job Training Partnership Act shall be deemed to
be a reference to section 302(e) of the Job Training
Partnership Act (as in effect on the day before the
date of enactment of this Act).
(B) STATES.—
(i) IN GENERAL.—The Secretary shall allot the
amount referred to in subsection (a)(2)(B) for a fiscal
year to the States pursuant to clause (ii) for dislocated
worker employment and training activities and statewide workforce investment activities.
(ii) FORMULA.—Of the amount—
(I) 331⁄3 percent shall be allotted on the basis
of the relative number of unemployed individuals
in each State, compared to the total number of
unemployed individuals in all States;
(II) 331⁄3 percent shall be allotted on the basis
of the relative excess number of unemployed
individuals in each State, compared to the total
excess number of unemployed individuals in all
States; and
(III) 331⁄3 percent shall be allotted on the basis
of the relative number of individuals in each State
who have been unemployed for 15 weeks or more,
compared to the total number of individuals in
all States who have been unemployed for 15 weeks
or more.
(iii) DEFINITION.—In this subparagraph, the term
‘‘excess number’’ means, used with respect to the excess
number of unemployed individuals within a State, the
number that represents the number of unemployed
individuals in excess of 4.5 percent of the civilian labor
force in the State.
(3) DEFINITIONS.—For the purpose of the formulas specified
in this subsection:
(A) FREELY ASSOCIATED STATES.—The term ‘‘Freely
Associated States’’ means the Republic of the Marshall
Islands, the Federated States of Micronesia, and the Republic of Palau.
(B) LOW-INCOME LEVEL.—The term ‘‘low-income level’’
means $7,000 with respect to income in 1969, and for
any later year means that amount that bears the same
relationship to $7,000 as the Consumer Price Index for
that year bears to the Consumer Price Index for 1969,
rounded to the nearest $1,000.
(c) REALLOTMENT.—
(1) IN GENERAL.—The Secretary shall, in accordance with
this subsection, reallot to eligible States amounts that are

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 987

allotted under this section for employment and training activities and statewide workforce investment activities and that
are available for reallotment.
(2) AMOUNT.—The amount available for reallotment for
a program year is equal to the amount by which the unobligated
balance of the State allotments under this section for such
activities, at the end of the program year prior to the program
year for which the determination under this paragraph is made,
exceeds 20 percent of such allotments for the prior program
year.
(3) REALLOTMENT.—In making reallotments to eligible
States of amounts available pursuant to paragraph (2) for a
program year, the Secretary shall allot to each eligible State
an amount based on the relative amount allotted to such State
under this section for such activities for the prior program
year, as compared to the total amount allotted to all eligible
States under this section for such activities for such prior
program year.
(4) ELIGIBILITY.—For purposes of this subsection, an
eligible State means a State that has obligated at least 80
percent of the State allotment under this section for such
activities for the program year prior to the program year for
which the determination under paragraph (2) is made.
(5) PROCEDURES.—The Governor of each State shall prescribe uniform procedures for the obligation of funds by local
areas within the State in order to avoid the requirement that
funds be made available for reallotment under this subsection.
The Governor shall further prescribe equitable procedures for
making funds available from the State and local areas in the
event that a State is required to make funds available for
reallotment under this subsection.
SEC. 133. WITHIN STATE ALLOCATIONS.

(a) RESERVATIONS FOR STATE ACTIVITIES.—
(1) STATEWIDE WORKFORCE INVESTMENT ACTIVITIES.—The
Governor of a State shall make the reservation required under
section 128(a).
(2) STATEWIDE RAPID RESPONSE ACTIVITIES.—The Governor
of the State shall reserve not more than 25 percent of the
total amount allotted to the State under section 132(b)(2)(B)
for a fiscal year for statewide rapid response activities described
in section 134(a)(2)(A).
(b) WITHIN STATE ALLOCATION.—
(1) METHODS.—The Governor, acting in accordance with
the State plan, and after consulting with chief elected officials
in the local areas, shall allocate—
(A) the funds that are allotted to the State for adult
employment and training activities and statewide
workforce investment activities under section 132(b)(1)(B)
and are not reserved under subsection (a)(1), in accordance
with paragraph (2) or (3); and
(B) the funds that are allotted to the State for dislocated worker employment and training activities under
section 132(b)(2)(B) and are not reserved under paragraph
(1) or (2) of subsection (a), in accordance with paragraph
(2).
(2) FORMULA ALLOCATIONS.—

29 USC 2863.

112 STAT. 988

Effective date.

PUBLIC LAW 105–220—AUG. 7, 1998
(A) ADULT EMPLOYMENT AND TRAINING ACTIVITIES.—
(i) ALLOCATION.—In allocating the funds described
in paragraph (1)(A) to local areas, a State may
allocate—
(I) 331⁄3 percent of the funds on the basis
described in section 132(b)(1)(B)(ii)(I);
(II) 331⁄3 percent of the funds on the basis
described in section 132(b)(1)(B)(ii)(II); and
(III) 331⁄3 percent of the funds on the basis
described in clauses (ii)(III) and (iii) of section
132(b)(1)(B).
(ii) MINIMUM PERCENTAGE.—Effective at the end
of the second full fiscal year after the date on which
a local area is designated under section 116, the local
area shall not receive an allocation percentage for a
fiscal year that is less than 90 percent of the average
allocation percentage of the local area for the 2 preceding fiscal years. Amounts necessary for increasing such
allocations to local areas to comply with the preceding
sentence shall be obtained by ratably reducing the
allocations to be made to other local areas under this
subparagraph.
(iii) DEFINITION.—The term ‘‘allocation percentage’’, used with respect to fiscal year 2000 or a subsequent fiscal year, means a percentage of the funds
referred to in clause (i), received through an allocation
made under this subparagraph, for the fiscal year.
(B) DISLOCATED WORKER EMPLOYMENT AND TRAINING
ACTIVITIES.—
(i) FORMULA.—In allocating the funds described
in paragraph (1)(B) to local areas, a State shall allocate
the funds based on an allocation formula prescribed
by the Governor of the State. Such formula may be
amended by the Governor not more than once for each
program year. Such formula shall utilize the most
appropriate information available to the Governor to
distribute amounts to address the State’s worker
readjustment assistance needs.
(ii) INFORMATION.—The information described in
clause (i) shall include insured unemployment data,
unemployment concentrations, plant closing and mass
layoff data, declining industries data, farmer-rancher
economic hardship data, and long-term unemployment
data.
(C) APPLICATION.—For purposes of carrying out
subparagraph (A)—
(i) references in section 132(b) to a State shall
be deemed to be references to a local area;
(ii) references in section 132(b) to all States shall
be deemed to be references to all local areas in the
State involved; and
(iii) except as described in clause (i), references
in section 132(b)(1) to the term ‘‘excess number’’ shall
be considered to be references to the term as defined
in section 132(b)(1).
(3) ADULT EMPLOYMENT AND TRAINING DISCRETIONARY
ALLOCATIONS.—In lieu of making the allocation described in

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 989

paragraph (2)(A), in allocating the funds described in paragraph
(1)(A) to local areas, a State may distribute—
(A) a portion equal to not less than 70 percent of
the funds in accordance with paragraph (2)(A); and
(B) the remaining portion of the funds on the basis
of a formula that—
(i) incorporates additional factors (other than the
factors described in paragraph (2)(A)) relating to—
(I) excess poverty in urban, rural, and suburban local areas; and
(II) excess unemployment above the State
average in urban, rural, and suburban local areas;
and
(ii) was developed by the State board and approved
by the Secretary as part of the State plan.
(4) TRANSFER AUTHORITY.—A local board may transfer, if
such a transfer is approved by the Governor, not more than
20 percent of the funds allocated to the local area under paragraph (2)(A) or (3), and 20 percent of the funds allocated to
the local area under paragraph (2)(B), for a fiscal year
between—
(A) adult employment and training activities; and
(B) dislocated worker employment and training
activities.
(5) ALLOCATION.—
(A) IN GENERAL.—The Governor of the State shall allocate the funds described in paragraph (1) to local areas
under paragraphs (2) and (3) for the purpose of providing
a single system of employment and training activities for
adults and dislocated workers in accordance with subsections (d) and (e) of section 134.
(B) ADDITIONAL REQUIREMENTS.—
(i) ADULTS.—Funds allocated under paragraph
(2)(A) or (3) shall be used by a local area to contribute
proportionately to the costs of the one-stop delivery
system described in section 134(c) in the local area,
and to pay for employment and training activities provided to adults in the local area, consistent with section
134.
(ii) DISLOCATED WORKERS.—Funds allocated under
paragraph (2)(B) shall be used by a local area to
contribute proportionately to the costs of the one-stop
delivery system described in section 134(c) in the local
area, and to pay for employment and training activities
provided to dislocated workers in the local area,
consistent with section 134.
(c) REALLOCATION AMONG LOCAL AREAS.—
(1) IN GENERAL.—The Governor may, in accordance with
this subsection, reallocate to eligible local areas within the
State amounts that are allocated under paragraph (2)(A) or
(3) of subsection (b) for adult employment and training activities
and that are available for reallocation.
(2) AMOUNT.—The amount available for reallocation for
a program year is equal to the amount by which the unobligated
balance of the local area allocation under paragraph (2)(A)
or (3) of subsection (b) for such activities, at the end of the

112 STAT. 990

PUBLIC LAW 105–220—AUG. 7, 1998
program year prior to the program year for which the determination under this paragraph is made exceeds 20 percent
of such allocation for the prior program year.
(3) REALLOCATION.—In making reallocations to eligible local
areas of amounts available pursuant to paragraph (2) for a
program year, the Governor shall allocate to each eligible local
area within the State an amount based on the relative amount
allocated to such local area under subsection (b)(3) for such
activities for the prior program year, as compared to the total
amount allocated to all eligible local areas in the State under
subsection (b)(3) for such activities for such prior program
year. For purposes of this paragraph, local areas that received
allocations under subsection (b)(2)(A) for the prior program
year shall be treated as if the local areas received allocations
under subsection (b)(3) for such year.
(4) ELIGIBILITY.—For purposes of this subsection, an
eligible local area means a local area that has obligated at
least 80 percent of the local area allocation under paragraph
(2)(A) or (3) of subsection (b) for such activities, for the program
year prior to the program year for which the determination
under paragraph (2) is made.

29 USC 2864.

SEC. 134. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.

(a) STATEWIDE EMPLOYMENT AND TRAINING ACTIVITIES.—
(1) IN GENERAL.—Funds reserved by a Governor for a
State—
(A) as described in section 133(a)(2) shall be used to
carry out the statewide rapid response activities described
in paragraph (2)(A); and
(B) as described in sections 128(a) and 133(a)(1)—
(i) shall be used to carry out the statewide employment and training activities described in paragraph
(2)(B); and
(ii) may be used to carry out any of the statewide
employment and training activities described in paragraph (3),
regardless of whether the funds were allotted to the State
under section 127(b)(1) or under paragraph (1) or (2) of
section 132(b).
(2) REQUIRED STATEWIDE EMPLOYMENT AND TRAINING
ACTIVITIES.—
(A) STATEWIDE RAPID RESPONSE ACTIVITIES.—A State
shall use funds reserved as described in section 133(a)(2)
to carry out statewide rapid response activities, which shall
include—
(i) provision of rapid response activities, carried
out in local areas by the State or by an entity designated by the State, working in conjunction with the
local boards and the chief elected officials in the local
areas; and
(ii) provision of additional assistance to local areas
that experience disasters, mass layoffs or plant closings, or other events that precipitate substantial
increases in the number of unemployed individuals,
carried out in local areas by the State or by an entity
designated by the State, working in conjunction with

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 991

the local boards and the chief elected officials in the
local areas.
(B) OTHER REQUIRED STATEWIDE EMPLOYMENT AND
TRAINING ACTIVITIES.—A State shall use funds reserved
as described in sections 128(a) and 133(a)(1) (regardless
of whether the funds were allotted to the State under
section 127(b)(1) or paragraph (1) or (2) of section 132(b))
to carry out other statewide employment and training
activities, which shall include—
(i) disseminating the State list of eligible providers
of training services, including eligible providers of nontraditional training services, information identifying
eligible providers of on-the-job training and customized
training, and performance information and program
cost information, as described in subsections (e) and
(h) of section 122;
(ii) conducting evaluations, under section 136(e),
of activities authorized in this section, in coordination
with the activities carried out under section 172;
(iii) providing incentive grants to local areas for
regional cooperation among local boards (including
local boards for a designated region as described in
section 116(c)), for local coordination of activities carried out under this Act, and for exemplary performance
by local areas on the local performance measures;
(iv) providing technical assistance to local areas
that fail to meet local performance measures;
(v) assisting in the establishment and operation
of one-stop delivery systems described in subsection
(c); and
(vi) operating a fiscal and management accountability information system under section 136(f ).
(3) ALLOWABLE STATEWIDE EMPLOYMENT AND TRAINING
ACTIVITIES.—
(A) IN GENERAL.—A State may use funds reserved as
described in sections 128(a) and 133(a)(1) (regardless of
whether the funds were allotted to the State under section
127(b)(1) or paragraph (1) or (2) of section 132(b)) to carry
out additional statewide employment and training activities, which may include—
(i) subject to subparagraph (B), administration by
the State of the activities authorized under this section;
(ii) provision of capacity building and technical
assistance to local areas, one-stop operators, one-stop
partners, and eligible providers, including the development and training of staff and the development of
exemplary program activities;
(iii) conduct of research and demonstrations;
(iv)(I) implementation of innovative incumbent
worker training programs, which may include the
establishment and implementation of an employer loan
program to assist in skills upgrading; and
(II) the establishment and implementation of programs targeted to empowerment zones and enterprise
communities;
(v) support for the identification of eligible providers of training services as required under section 122;

112 STAT. 992

PUBLIC LAW 105–220—AUG. 7, 1998

(vi)(I) implementation of innovative programs for
displaced homemakers, which for purposes of this
subclause may include an individual who is receiving
public assistance and is within 2 years of exhausting
lifetime eligibility under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.); and
(II) implementation of programs to increase the
number of individuals training for and placed in nontraditional employment; and
(vii) carrying out other activities authorized in this
section that the State determines to be necessary to
assist local areas in carrying out activities described
in subsection (d) or (e) through the statewide workforce
investment system.
(B) LIMITATION.—
(i) IN GENERAL.—Of the funds allotted to a State
under sections 127(b) and 132(b) and reserved as
described in sections 128(a) and 133(a)(1) for a fiscal
year—
(I) not more than 5 percent of the amount
allotted under section 127(b)(1);
(II) not more than 5 percent of the amount
allotted under section 132(b)(1); and
(III) not more than 5 percent of the amount
allotted under section 132(b)(2),
may be used by the State for the administration of
youth activities carried out under section 129 and
employment and training activities carried out under
this section.
(ii) USE OF FUNDS.—Funds made available for
administrative costs under clause (i) may be used for
the administrative cost of any of the statewide youth
activities or statewide employment and training activities, regardless of whether the funds were allotted
to the State under section 127(b)(1) or paragraph (1)
or (2) of section 132(b).
(b) LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.—Funds allocated to a local area for adults under paragraph (2)(A) or (3),
as appropriate, of section 133(b), and funds allocated to a local
area for dislocated workers under section 133(b)(2)(B)—
(1) shall be used to carry out employment and training
activities described in subsection (d) for adults or dislocated
workers, respectively; and
(2) may be used to carry out employment and training
activities described in subsection (e) for adults or dislocated
workers, respectively.
(c) ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEM.—
(1) IN GENERAL.—There shall be established in a State
that receives an allotment under section 132(b) a one-stop
delivery system, which—
(A) shall provide the core services described in
subsection (d)(2);
(B) shall provide access to intensive services and training services as described in paragraphs (3) and (4) of subsection (d), including serving as the point of access to
individual training accounts for training services to participants in accordance with subsection (d)(4)(G);

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 993

(C) shall provide access to the activities carried out
under subsection (e), if any;
(D) shall provide access to programs and activities
carried out by one-stop partners and described in section
121(b); and
(E) shall provide access to the information described
in section 15 of the Wagner-Peyser Act and all job search,
placement, recruitment, and other labor exchange services
authorized under the Wagner-Peyser Act (29 U.S.C. 49
et seq.).
(2) ONE-STOP DELIVERY.—At a minimum, the one-stop
delivery system—
(A) shall make each of the programs, services, and
activities described in paragraph (1) accessible at not less
than one physical center in each local area of the State;
and
(B) may also make programs, services, and activities
described in paragraph (1) available—
(i) through a network of affiliated sites that can
provide one or more of the programs, services, and
activities to individuals; and
(ii) through a network of eligible one-stop
partners—
(I) in which each partner provides one or more
of the programs, services, and activities to such
individuals and is accessible at an affiliated site
that consists of a physical location or an electronically or technologically linked access point; and
(II) that assures individuals that information
on the availability of the core services will be
available regardless of where the individuals initially enter the statewide workforce investment
system, including information made available
through an access point described in subclause
(I).
(3) SPECIALIZED CENTERS.—The centers and sites described
in paragraph (2) may have a specialization in addressing special
needs, such as the needs of dislocated workers.
(d) REQUIRED LOCAL EMPLOYMENT AND TRAINING ACTIVITIES.—
(1) IN GENERAL.—
(A) ALLOCATED FUNDS.—Funds allocated to a local area
for adults under paragraph (2)(A) or (3), as appropriate,
of section 133(b), and funds allocated to the local area
for dislocated workers under section 133(b)(2)(B), shall be
used—
(i) to establish a one-stop delivery system described
in subsection (c);
(ii) to provide the core services described in paragraph (2) to adults and dislocated workers, respectively, through the one-stop delivery system in accordance with such paragraph;
(iii) to provide the intensive services described in
paragraph (3) to adults and dislocated workers, respectively, described in such paragraph; and
(iv) to provide training services described in paragraph (4) to adults and dislocated workers, respectively, described in such paragraph.

112 STAT. 994

PUBLIC LAW 105–220—AUG. 7, 1998
(B) OTHER FUNDS.—A portion of the funds made available under Federal law authorizing the programs and
activities described in section 121(b)(1)(B), including the
Wagner-Peyser Act (29 U.S.C. 49 et seq.), shall be used
as described in clauses (i) and (ii) of subparagraph (A),
to the extent not inconsistent with the Federal law
involved.
(2) CORE SERVICES.—Funds described in paragraph (1)(A)
shall be used to provide core services, which shall be available
to individuals who are adults or dislocated workers through
the one-stop delivery system and shall, at a minimum, include—
(A) determinations of whether the individuals are
eligible to receive assistance under this subtitle;
(B) outreach, intake (which may include worker
profiling), and orientation to the information and other
services available through the one-stop delivery system;
(C) initial assessment of skill levels, aptitudes, abilities, and supportive service needs;
(D) job search and placement assistance, and where
appropriate, career counseling;
(E) provision of employment statistics information,
including the provision of accurate information relating
to local, regional, and national labor market areas,
including—
(i) job vacancy listings in such labor market areas;
(ii) information on job skills necessary to obtain
the jobs described in clause (i); and
(iii) information relating to local occupations in
demand and the earnings and skill requirements for
such occupations; and
(F) provision of performance information and program
cost information on eligible providers of training services
as described in section 122, provided by program, and
eligible providers of youth activities described in section
123, providers of adult education described in title II,
providers of postsecondary vocational education activities
and vocational education activities available to school dropouts under the Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2301 et seq.), and
providers of vocational rehabilitation program activities
described in title I of the Rehabilitation Act of 1973 (29
U.S.C. 720 et seq.);
(G) provision of information regarding how the local
area is performing on the local performance measures and
any additional performance information with respect to
the one-stop delivery system in the local area;
(H) provision of accurate information relating to the
availability of supportive services, including child care and
transportation, available in the local area, and referral
to such services, as appropriate;
(I) provision of information regarding filing claims for
unemployment compensation;
(J) assistance in establishing eligibility for—
(i) welfare-to-work activities authorized under section 403(a)(5) of the Social Security Act (as added
by section 5001 of the Balanced Budget Act of 1997)
available in the local area; and

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 995

(ii) programs of financial aid assistance for training
and education programs that are not funded under
this Act and are available in the local area; and
(K) followup services, including counseling regarding
the workplace, for participants in workforce investment
activities authorized under this subtitle who are placed
in unsubsidized employment, for not less than 12 months
after the first day of the employment, as appropriate.
(3) INTENSIVE SERVICES.—
(A) IN GENERAL.—Funds allocated to a local area for
adults under paragraph (2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to the local area for
dislocated workers under section 133(b)(2)(B), shall be used
to provide intensive services to adults and dislocated workers, respectively—
(i)(I) who are unemployed and are unable to obtain
employment through core services provided under
paragraph (2); and
(II) who have been determined by a one-stop operator to be in need of more intensive services in order
to obtain employment; or
(ii) who are employed, but who are determined
by a one-stop operator to be in need of such intensive
services in order to obtain or retain employment that
allows for self-sufficiency.
(B) DELIVERY OF SERVICES.—Such intensive services
shall be provided through the one-stop delivery system—
(i) directly through one-stop operators identified
pursuant to section 121(d); or
(ii) through contracts with service providers, which
may include contracts with public, private for-profit,
and private nonprofit service providers, approved by
the local board.
(C) TYPES OF SERVICES.—Such intensive services may
include the following:
(i) Comprehensive and specialized assessments of
the skill levels and service needs of adults and dislocated workers, which may include—
(I) diagnostic testing and use of other assessment tools; and
(II) in-depth interviewing and evaluation to
identify employment barriers and appropriate
employment goals.
(ii) Development of an individual employment plan,
to identify the employment goals, appropriate achievement objectives, and appropriate combination of services for the participant to achieve the employment
goals.
(iii) Group counseling.
(iv) Individual counseling and career planning.
(v) Case management for participants seeking
training services under paragraph (4).
(vi) Short-term prevocational services, including
development of learning skills, communication skills,
interviewing skills, punctuality, personal maintenance
skills, and professional conduct, to prepare individuals
for unsubsidized employment or training.

112 STAT. 996

PUBLIC LAW 105–220—AUG. 7, 1998
(4) TRAINING SERVICES.—
(A) IN GENERAL.—Funds allocated to a local area for
adults under paragraph (2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to a local area for dislocated workers under section 133(b)(2)(B) shall be used
to provide training services to adults and dislocated workers, respectively—
(i) who have met the eligibility requirements for
intensive services under paragraph (3)(A) and who are
unable to obtain or retain employment through such
services;
(ii) who after an interview, evaluation, or assessment, and case management, have been determined
by a one-stop operator or one-stop partner, as appropriate, to be in need of training services and to have
the skills and qualifications to successfully participate
in the selected program of training services;
(iii) who select programs of training services that
are directly linked to the employment opportunities
in the local area involved or in another area in which
the adults or dislocated workers receiving such services
are willing to relocate;
(iv) who meet the requirements of subparagraph
(B); and
(v) who are determined to be eligible in accordance
with the priority system, if any, in effect under
subparagraph (E).
(B) QUALIFICATION.—
(i) REQUIREMENT.—Except as provided in clause
(ii), provision of such training services shall be limited
to individuals who—
(I) are unable to obtain other grant assistance
for such services, including Federal Pell Grants
established under title IV of the Higher Education
Act of 1965 (20 U.S.C. 1070 et seq.); or
(II) require assistance beyond the assistance
made available under other grant assistance programs, including Federal Pell Grants.
(ii) REIMBURSEMENTS.—Training services may be
provided under this paragraph to an individual who
otherwise meets the requirements of this paragraph
while an application for a Federal Pell Grant is pending, except that if such individual is subsequently
awarded a Federal Pell Grant, appropriate reimbursement shall be made to the local area from such Federal
Pell Grant.
(C) PROVIDER QUALIFICATION.—Training services shall
be provided through providers identified in accordance with
section 122.
(D) TRAINING SERVICES.—Training services may
include—
(i) occupational skills training, including training
for nontraditional employment;
(ii) on-the-job training;
(iii) programs that combine workplace training
with related instruction, which may include cooperative
education programs;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 997

(iv) training programs operated by the private
sector;
(v) skill upgrading and retraining;
(vi) entrepreneurial training;
(vii) job readiness training;
(viii) adult education and literacy activities
provided in combination with services described in any
of clauses (i) through (vii); and
(ix) customized training conducted with a commitment by an employer or group of employers to employ
an individual upon successful completion of the training.
(E) PRIORITY.—In the event that funds allocated to
a local area for adult employment and training activities
under paragraph (2)(A) or (3) of section 133(b) are limited,
priority shall be given to recipients of public assistance
and other low-income individuals for intensive services and
training services. The appropriate local board and the Governor shall direct the one-stop operators in the local area
with regard to making determinations related to such priority.
(F) CONSUMER CHOICE REQUIREMENTS.—
(i) IN GENERAL.—Training services provided under
this paragraph shall be provided in a manner that
maximizes consumer choice in the selection of an
eligible provider of such services.
(ii) ELIGIBLE PROVIDERS.—Each local board,
through one-stop centers referred to in subsection (c),
shall make available—
(I) the State list of eligible providers of training services required under section 122(e), with
a description of the programs through which the
providers may offer the training services, and the
information identifying eligible providers of on-thejob training and customized training required
under section 122(h); and
(II) the performance information and performance cost information relating to eligible providers
of training services described in subsections (e)
and (h) of section 122.
(G) USE OF INDIVIDUAL TRAINING ACCOUNTS.—
(i) IN GENERAL.—Except as provided in clause (ii),
training services provided under this paragraph shall
be provided through the use of individual training
accounts in accordance with this paragraph, and shall
be provided to eligible individuals through the onestop delivery system.
(ii) EXCEPTIONS.—Training services authorized
under this paragraph may be provided pursuant to
a contract for services in lieu of an individual training
account if the requirements of subparagraph (F) are
met and if—
(I) such services are on-the-job training provided by an employer or customized training;
(II) the local board determines there are an
insufficient number of eligible providers of training
services in the local area involved (such as in

112 STAT. 998

PUBLIC LAW 105–220—AUG. 7, 1998

a rural area) to accomplish the purposes of a system of individual training accounts; or
(III) the local board determines that there is
a training services program of demonstrated
effectiveness offered in the local area by a community-based organization or another private
organization to serve special participant populations that face multiple barriers to employment.
(iii) LINKAGE TO OCCUPATIONS IN DEMAND.—Training services provided under this paragraph shall be
directly linked to occupations that are in demand in
the local area, or in another area to which an adult
or dislocated worker receiving such services is willing
to relocate, except that a local board may approve
training services for occupations determined by the
local board to be in sectors of the economy that have
a high potential for sustained demand or growth in
the local area.
(iv) DEFINITION.—In this subparagraph, the term
‘‘special participant population that faces multiple barriers to employment’’ means a population of low-income
individuals that is included in one or more of the
following categories:
(I) Individuals with substantial language or
cultural barriers.
(II) Offenders.
(III) Homeless individuals.
(IV) Other hard-to-serve populations as
defined by the Governor involved.
(e) PERMISSIBLE LOCAL EMPLOYMENT AND TRAINING
ACTIVITIES.—
(1) DISCRETIONARY ONE-STOP DELIVERY ACTIVITIES.—Funds
allocated to a local area for adults under paragraph (2)(A)
or (3), as appropriate, of section 133(b), and funds allocated
to the local area for dislocated workers under section
133(b)(2)(B), may be used to provide, through one-stop delivery
described in subsection (c)(2)—
(A) customized screening and referral of qualified
participants in training services described in subsection
(d)(4) to employment; and
(B) customized employment-related services to employers on a fee-for-service basis.
(2) SUPPORTIVE SERVICES.—Funds allocated to a local area
for adults under paragraph (2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to the local area for dislocated workers under section 133(b)(2)(B), may be used to
provide supportive services to adults and dislocated workers,
respectively—
(A) who are participating in programs with activities
authorized in any of paragraphs (2), (3), or (4) of subsection
(d); and
(B) who are unable to obtain such supportive services
through other programs providing such services.
(3) NEEDS-RELATED PAYMENTS.—
(A) IN GENERAL.—Funds allocated to a local area for
adults under paragraph (2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to the local area for

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 999

dislocated workers under section 133(b)(2)(B), may be used
to provide needs-related payments to adults and dislocated
workers, respectively, who are unemployed and do not qualify for (or have ceased to qualify for) unemployment compensation for the purpose of enabling such individuals to
participate in programs of training services under subsection (d)(4).
(B) ADDITIONAL ELIGIBILITY REQUIREMENTS.—In addition to the requirements contained in subparagraph (A),
a dislocated worker who has ceased to qualify for unemployment compensation may be eligible to receive needs-related
payments under this paragraph only if such worker was
enrolled in the training services—
(i) by the end of the 13th week after the most
recent layoff that resulted in a determination of the
worker’s eligibility for employment and training activities for dislocated workers under this subtitle; or
(ii) if later, by the end of the 8th week after the
worker is informed that a short-term layoff will exceed
6 months.
(C) LEVEL OF PAYMENTS.—The level of a needs-related
payment made to a dislocated worker under this paragraph
shall not exceed the greater of—
(i) the applicable level of unemployment compensation; or
(ii) if such worker did not qualify for unemployment compensation, an amount equal to the poverty
line, for an equivalent period, which amount shall be
adjusted to reflect changes in total family income.
CHAPTER 6—GENERAL PROVISIONS
SEC. 136. PERFORMANCE ACCOUNTABILITY SYSTEM.

(a) PURPOSE.—The purpose of this section is to establish a
comprehensive performance accountability system, comprised of the
activities described in this section, to assess the effectiveness of
States and local areas in achieving continuous improvement of
workforce investment activities funded under this subtitle, in order
to optimize the return on investment of Federal funds in statewide
and local workforce investment activities.
(b) STATE PERFORMANCE MEASURES.—
(1) IN GENERAL.—For each State, the State performance
measures shall consist of—
(A)(i) the core indicators of performance described in
paragraph (2)(A) and the customer satisfaction indicator
of performance described in paragraph (2)(B); and
(ii) additional indicators of performance (if any) identified by the State under paragraph (2)(C); and
(B) a State adjusted level of performance for each
indicator described in subparagraph (A).
(2) INDICATORS OF PERFORMANCE.—
(A) CORE INDICATORS OF PERFORMANCE.—
(i) IN GENERAL.—The core indicators of performance for employment and training activities authorized
under section 134 (except for self-service and informational activities) and (for participants who are eligible

29 USC 2871.

112 STAT. 1000

PUBLIC LAW 105–220—AUG. 7, 1998
youth age 19 through 21) for youth activities authorized under section 129 shall consist of—
(I) entry into unsubsidized employment;
(II) retention in unsubsidized employment 6
months after entry into the employment;
(III) earnings received in unsubsidized employment 6 months after entry into the employment;
and
(IV) attainment of a recognized credential
relating to achievement of educational skills, which
may include attainment of a secondary school
diploma or its recognized equivalent, or occupational skills, by participants who enter unsubsidized employment, or by participants who are
eligible youth age 19 through 21 who enter postsecondary education, advanced training, or unsubsidized employment.
(ii) CORE INDICATORS FOR ELIGIBLE YOUTH.—The
core indicators of performance (for participants who
are eligible youth age 14 through 18) for youth activities authorized under section 129, shall include—
(I) attainment of basic skills and, as appropriate, work readiness or occupational skills;
(II) attainment of secondary school diplomas
and their recognized equivalents; and
(III) placement and retention in postsecondary
education or advanced training, or placement and
retention in military service, employment, or qualified apprenticeships.
(B) CUSTOMER SATISFACTION INDICATORS.—The customer satisfaction indicator of performance shall consist
of customer satisfaction of employers and participants with
services received from the workforce investment activities
authorized under this subtitle. Customer satisfaction may
be measured through surveys conducted after the conclusion of participation in the workforce investment activities.
(C) ADDITIONAL INDICATORS.—A State may identify in
the State plan additional indicators for workforce investment activities authorized under this subtitle.
(3) LEVELS OF PERFORMANCE.—
(A) STATE ADJUSTED LEVELS OF PERFORMANCE FOR
CORE INDICATORS AND CUSTOMER SATISFACTION INDICATOR.—
(i) IN GENERAL.—For each State submitting a State
plan, there shall be established, in accordance with
this subparagraph, levels of performance for each of
the core indicators of performance described in paragraph (2)(A) and the customer satisfaction indicator
described in paragraph (2)(B) for workforce investment
activities authorized under this subtitle. The levels
of performance established under this subparagraph
shall, at a minimum—
(I) be expressed in an objective, quantifiable,
and measurable form; and
(II) show the progress of the State toward
continuously improving in performance.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1001

(ii) IDENTIFICATION IN STATE PLAN.—Each State
shall identify, in the State plan submitted under section 112, expected levels of performance for each of
the core indicators of performance and the customer
satisfaction indicator of performance, for the first 3
program years covered by the State plan.
(iii) AGREEMENT ON STATE ADJUSTED LEVELS OF
PERFORMANCE FOR FIRST 3 YEARS.—In order to ensure
an optimal return on the investment of Federal funds
in workforce investment activities authorized under
this subtitle, the Secretary and each Governor shall
reach agreement on levels of performance for each
of the core indicators of performance and the customer
satisfaction indicator of performance, for the first 3
program years covered by the State plan, taking into
account the levels identified in the State plan under
clause (ii) and the factors described in clause (iv).
The levels agreed to under this clause shall be considered to be the State adjusted levels of performance
for the State for such years and shall be incorporated
into the State plan prior to the approval of such plan.
(iv) FACTORS.—The agreement described in clause
(iii) or (v) shall take into account—
(I) the extent to which the levels involved will
assist the State in attaining a high level of customer satisfaction;
(II) how the levels involved compare with the
State adjusted levels of performance established
for other States, taking into account factors including differences in economic conditions, the
characteristics of participants when the participants entered the program, and the services to
be provided; and
(III) the extent to which such levels involved
promote continuous improvement in performance
on the performance measures by such State and
ensure optimal return on the investment of Federal
funds.
(v) AGREEMENT ON STATE ADJUSTED LEVELS OF
PERFORMANCE FOR 4TH AND 5TH YEARS.—Prior to the
4th program year covered by the State plan, the Secretary and each Governor shall reach agreement on
levels of performance for each of the core indicators
of performance and the customer satisfaction indicator
of performance, for the 4th and 5th program years
covered by the State plan, taking into account the
factors described in clause (iv). The levels agreed to
under this clause shall be considered to be the State
adjusted levels of performance for the State for such
years and shall be incorporated into the State plan.
(vi) REVISIONS.—If unanticipated circumstances
arise in a State resulting in a significant change in
the factors described in clause (iv)(II), the Governor
may request that the State adjusted levels of performance agreed to under clause (iii) or (v) be revised.

112 STAT. 1002

PUBLIC LAW 105–220—AUG. 7, 1998
The Secretary, after collaboration with the representatives described in subsection (i), shall issue objective
criteria and methods for making such revisions.
(B) LEVELS OF PERFORMANCE FOR ADDITIONAL INDICATORS.—The State may identify, in the State plan, State
levels of performance for each of the additional indicators
described in paragraph (2)(C). Such levels shall be considered to be State adjusted levels of performance for purposes
of this title.
(c) LOCAL PERFORMANCE MEASURES.—
(1) IN GENERAL.—For each local area in a State, the local
performance measures shall consist of—
(A)(i) the core indicators of performance described in
subsection (b)(2)(A), and the customer satisfaction indicator
of performance described in subsection (b)(2)(B), for activities described in such subsections, other than statewide
workforce investment activities; and
(ii) additional indicators of performance (if any) identified by the State under subsection (b)(2)(C) for activities
described in such subsection, other than statewide
workforce investment activities; and
(B) a local level of performance for each indicator
described in subparagraph (A).
(2) LOCAL LEVEL OF PERFORMANCE.—The local board, the
chief elected official, and the Governor shall negotiate and
reach agreement on the local levels of performance based on
the State adjusted levels of performance established under subsection (b).
(3) DETERMINATIONS.—In determining such local levels of
performance, the local board, the chief elected official, and
the Governor shall take into account the specific economic,
demographic, and other characteristics of the populations to
be served in the local area.
(d) REPORT.—
(1) IN GENERAL.—Each State that receives an allotment
under section 127 or 132 shall annually prepare and submit
to the Secretary a report on the progress of the State in achieving State performance measures, including information on the
levels of performance achieved by the State with respect to
the core indicators of performance and the customer satisfaction
indicator. The annual report also shall include information
regarding the progress of local areas in the State in achieving
local performance measures, including information on the levels
of performance achieved by the areas with respect to the core
indicators of performance and the customer satisfaction indicator. The report also shall include information on the status
of State evaluations of workforce investment activities described
in subsection (e).
(2) ADDITIONAL INFORMATION.—In preparing such report,
the State shall include, at a minimum, information on participants in workforce investment activities authorized under this
subtitle relating to—
(A) entry by participants who have completed training
services provided under section 134(d)(4) into unsubsidized
employment related to the training received;
(B) wages at entry into employment for participants
in
workforce
investment
activities
who
entered

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1003

unsubsidized employment, including the rate of wage
replacement for such participants who are dislocated workers;
(C) cost of workforce investment activities relative to
the effect of the activities on the performance of participants;
(D) retention and earnings received in unsubsidized
employment 12 months after entry into the employment;
(E) performance with respect to the indicators of
performance specified in subsection (b)(2)(A) of participants
in workforce investment activities who received the training
services compared with the performance of participants
in workforce investment activities who received only services other than the training services (excluding participants
who received only self-service and informational activities);
and
(F) performance with respect to the indicators of
performance specified in subsection (b)(2)(A) of recipients
of public assistance, out-of-school youth, veterans, individuals with disabilities, displaced homemakers, and older
individuals.
(3) INFORMATION DISSEMINATION.—The Secretary—
(A) shall make the information contained in such
reports available to the general public through publication
and other appropriate methods;
(B) shall disseminate State-by-State comparisons of the
information; and
(C) shall provide the appropriate congressional committees with copies of such reports.
(e) EVALUATION OF STATE PROGRAMS.—
(1) IN GENERAL.—Using funds made available under this
subtitle, the State, in coordination with local boards in the
State, shall conduct ongoing evaluation studies of workforce
investment activities carried out in the State under this subtitle
in order to promote, establish, implement, and utilize methods
for continuously improving the activities in order to achieve
high-level performance within, and high-level outcomes from,
the statewide workforce investment system. To the maximum
extent practicable, the State shall coordinate the evaluations
with the evaluations provided for by the Secretary under section
172.
(2) DESIGN.—The evaluation studies conducted under this
subsection shall be designed in conjunction with the State
board and local boards and shall include analysis of customer
feedback and outcome and process measures in the statewide
workforce investment system. The studies may include use
of control groups.
(3) RESULTS.—The State shall periodically prepare and submit to the State board, and local boards in the State, reports
containing the results of evaluation studies conducted under
this subsection, to promote the efficiency and effectiveness of
the statewide workforce investment system in improving
employability for jobseekers and competitiveness for employers.
(f ) FISCAL AND MANAGEMENT ACCOUNTABILITY INFORMATION
SYSTEMS.—
(1) IN GENERAL.—Using funds made available under this
subtitle, the Governor, in coordination with local boards and

Publication.

Reports.

Guidelines.

112 STAT. 1004

PUBLIC LAW 105–220—AUG. 7, 1998

chief elected officials in the State, shall establish and operate
a fiscal and management accountability information system
based on guidelines established by the Secretary after consultation with the Governors, local elected officials, and one-stop
partners. Such guidelines shall promote efficient collection and
use of fiscal and management information for reporting and
monitoring the use of funds made available under this subtitle
and for preparing the annual report described in subsection
(d).
(2) WAGE RECORDS.—In measuring the progress of the State
on State and local performance measures, a State shall utilize
quarterly wage records, consistent with State law. The Secretary shall make arrangements, consistent with State law,
to ensure that the wage records of any State are available
to any other State to the extent that such wage records are
required by the State in carrying out the State plan of the
State or completing the annual report described in subsection
(d).
(3) CONFIDENTIALITY.—In carrying out the requirements
of this Act, the State shall comply with section 444 of the
General Education Provisions Act (20 U.S.C. 1232g) (as added
by the Family Educational Rights and Privacy Act of 1974).
(g) SANCTIONS FOR STATE FAILURE TO MEET STATE PERFORMANCE MEASURES.—
(1) STATES.—
(A) TECHNICAL ASSISTANCE.—If a State fails to meet
State adjusted levels of performance relating to indicators
described in subparagraph (A) or (B) of subsection (b)(2)
for a program for any program year, the Secretary shall,
upon request, provide technical assistance in accordance
with section 170, including assistance in the development
of a performance improvement plan.
(B) REDUCTION IN AMOUNT OF GRANT.—If such failure
continues for a second consecutive year, or if a State fails
to submit a report under subsection (d) for any program
year, the Secretary may reduce by not more than 5 percent,
the amount of the grant that would (in the absence of
this paragraph) be payable to the State under such program
for the immediately succeeding program year. Such penalty
shall be based on the degree of failure to meet State
adjusted levels of performance.
(2) FUNDS RESULTING FROM REDUCED ALLOTMENTS.—The
Secretary shall use an amount retained, as a result of a reduction in an allotment to a State made under paragraph (1)(B),
to provide incentive grants under section 503.
(h) SANCTIONS FOR LOCAL AREA FAILURE TO MEET LOCAL
PERFORMANCE MEASURES.—
(1) TECHNICAL ASSISTANCE.—If a local area fails to meet
levels of performance relating to indicators described in
subparagraph (A) or (B) of subsection (b)(2) for a program
for any program year, the Governor, or upon request by the
Governor, the Secretary, shall provide technical assistance,
which may include assistance in the development of a performance improvement plan, or the development of a modified local
plan.
(2) CORRECTIVE ACTIONS.—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1005

(A) IN GENERAL.—If such failure continues for a second
consecutive year, the Governor shall take corrective actions,
which may include development of a reorganization plan
through which the Governor may—
(i) require the appointment and certification of
a new local board (consistent with the criteria established under section 117(b));
(ii) prohibit the use of eligible providers and onestop partners identified as achieving a poor level of
performance; or
(iii) take such other actions as the Governor determines are appropriate.
(B) APPEAL BY LOCAL AREA.—
(i) APPEAL TO GOVERNOR.—A local area that is
subject to a reorganization plan under subparagraph
(A) may, not later than 30 days after receiving notice
of the reorganization plan, appeal to the Governor
to rescind or revise such plan. In such case, the Governor shall make a final decision not later then 30
days after the receipt of the appeal.
(ii) SUBSEQUENT ACTION.—The local area may, not
later than 30 days after receiving a decision from the
Governor pursuant to clause (i), appeal such decision
to the Secretary. In such case, the Secretary shall
make a final decision not later than 30 days after
the receipt of the appeal.
(C) EFFECTIVE DATE.—The decision made by the Governor under clause (i) of subparagraph (B) shall become
effective at the time the Governor issues the decision pursuant to such clause. Such decision shall remain effective
unless the Secretary rescinds or revises such plan pursuant
to clause (ii) of subparagraph (B).
(i) OTHER MEASURES AND TERMINOLOGY.—
(1) RESPONSIBILITIES.—In order to ensure nationwide comparability of performance data, the Secretary, after collaboration with representatives of appropriate Federal agencies, and
representatives of States and political subdivisions, business
and industry, employees, eligible providers of employment and
training activities, educators, and participants, with expertise
regarding workforce investment policies and workforce investment activities, shall issue—
(A) definitions for information required to be reported
under subsection (d)(2);
(B) terms for a menu of additional indicators of
performance described in subsection (b)(2)(C) to assist
States in assessing their progress toward State workforce
investment goals; and
(C) objective criteria and methods described in subsection (b)(3)(A)(vi) for making revisions to levels of
performance.
(2) DEFINITIONS FOR CORE INDICATORS.—The Secretary and
the representatives described in paragraph (1) shall participate
in the activities described in section 502 concerning the issuance
of definitions for indicators of performance described in subsection (b)(2)(A).

Deadlines.

112 STAT. 1006

PUBLIC LAW 105–220—AUG. 7, 1998
(3) ASSISTANCE.—The Secretary shall make the services
of staff available to the representatives to assist the representatives in participating in the collaboration described in paragraph (1) and in the activities described in section 502.

29 USC 2872.

SEC. 137. AUTHORIZATION OF APPROPRIATIONS.

(a) YOUTH ACTIVITIES.—There are authorized to be appropriated
to carry out the activities described in section 127(a), such sums
as may be necessary for each of fiscal years 1999 through 2003.
(b) ADULT EMPLOYMENT AND TRAINING ACTIVITIES.—There are
authorized to be appropriated to carry out the activities described
in section 132(a)(1), such sums as may be necessary for each of
fiscal years 1999 through 2003.
(c) DISLOCATED WORKER EMPLOYMENT AND TRAINING ACTIVITIES.—There are authorized to be appropriated to carry out the
activities described in section 132(a)(2), such sums as may be necessary for each of fiscal years 1999 through 2003.

Subtitle C—Job Corps
29 USC 2881.

SEC. 141. PURPOSES.

The purposes of this subtitle are—
(1) to maintain a national Job Corps program, carried
out in partnership with States and communities, to assist
eligible youth who need and can benefit from an intensive
program, operated in a group setting in residential and nonresidential centers, to become more responsible, employable, and
productive citizens;
(2) to set forth standards and procedures for selecting
individuals as enrollees in the Job Corps;
(3) to authorize the establishment of Job Corps centers
in which enrollees will participate in intensive programs of
activities described in this subtitle; and
(4) to prescribe various other powers, duties, and responsibilities incident to the operation and continuing development
of the Job Corps.
29 USC 2882.

SEC. 142. DEFINITIONS.

In this subtitle:
(1) APPLICABLE LOCAL BOARD.—The term ‘‘applicable local
board’’ means a local board—
(A) that provides information for a Job Corps center
on local employment opportunities and the job skills needed
to obtain the opportunities; and
(B) that serves communities in which the graduates
of the Job Corps center seek employment.
(2) APPLICABLE ONE-STOP CENTER.—The term ‘‘applicable
one-stop center’’ means a one-stop customer service center that
provides services, such as referral, intake, recruitment, and
placement, to a Job Corps center.
(3) ENROLLEE.—The term ‘‘enrollee’’ means an individual
who has voluntarily applied for, been selected for, and enrolled
in the Job Corps program, and remains with the program,
but has not yet become a graduate.
(4) FORMER ENROLLEE.—The term ‘‘former enrollee’’ means
an individual who has voluntarily applied for, been selected
for, and enrolled in the Job Corps program, but left the program

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112 STAT. 1007

before completing the requirements of a vocational training
program, or receiving a secondary school diploma or recognized
equivalent, as a result of participation in the Job Corps program.
(5) GRADUATE.—The term ‘‘graduate’’ means an individual
who has voluntarily applied for, been selected for, and enrolled
in the Job Corps program and has completed the requirements
of a vocational training program, or received a secondary school
diploma or recognized equivalent, as a result of participation
in the Job Corps program.
(6) JOB CORPS.—The term ‘‘Job Corps’’ means the Job Corps
described in section 143.
(7) JOB CORPS CENTER.—The term ‘‘Job Corps center’’ means
a center described in section 147.
(8) OPERATOR.—The term ‘‘operator’’ means an entity
selected under this subtitle to operate a Job Corps center.
(9) REGION.—The term ‘‘region’’ means an area served by
a regional office of the Employment and Training Administration.
(10) SERVICE PROVIDER.—The term ‘‘service provider’’
means an entity selected under this subtitle to provide services
described in this subtitle to a Job Corps center.
SEC. 143. ESTABLISHMENT.

29 USC 2883.

There shall be within the Department of Labor a ‘‘Job Corps’’.
SEC. 144. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

29 USC 2884.

To be eligible to become an enrollee, an individual shall be—
(1) not less than age 16 and not more than age 21 on
the date of enrollment, except that—
(A) not more than 20 percent of the individuals enrolled
in the Job Corps may be not less than age 22 and not
more than age 24 on the date of enrollment; and
(B) either such maximum age limitation may be waived
by the Secretary, in accordance with regulations of the
Secretary, in the case of an individual with a disability;
(2) a low-income individual; and
(3) an individual who is one or more of the following:
(A) Basic skills deficient.
(B) A school dropout.
(C) Homeless, a runaway, or a foster child.
(D) A parent.
(E) An individual who requires additional education,
vocational training, or intensive counseling and related
assistance, in order to participate successfully in regular
schoolwork or to secure and hold employment.
SEC. 145. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT
OF ENROLLEES.

(a) STANDARDS AND PROCEDURES.—
(1) IN GENERAL.—The Secretary shall prescribe specific
standards and procedures for the recruitment, screening, and
selection of eligible applicants for the Job Corps, after considering recommendations from the Governors, local boards, and
other interested parties.
(2) METHODS.—In prescribing standards and procedures
under paragraph (1), the Secretary, at a minimum, shall—

29 USC 2885.

112 STAT. 1008

Contracts.

PUBLIC LAW 105–220—AUG. 7, 1998
(A) prescribe procedures for informing enrollees that
drug tests will be administered to the enrollees and the
results received within 45 days after the enrollees enroll
in the Job Corps;
(B) establish standards for recruitment of Job Corps
applicants;
(C) establish standards and procedures for—
(i) determining, for each applicant, whether the
educational and vocational needs of the applicant can
best be met through the Job Corps program or an
alternative program in the community in which the
applicant resides; and
(ii) obtaining from each applicant pertinent data
relating to background, needs, and interests for determining eligibility and potential assignment;
(D) where appropriate, take measures to improve the
professional capability of the individuals conducting screening of the applicants; and
(E) assure that an appropriate number of enrollees
are from rural areas.
(3) IMPLEMENTATION.—To the extent practicable, the
standards and procedures shall be implemented through
arrangements with—
(A) applicable one-stop centers;
(B) community action agencies, business organizations,
and labor organizations; and
(C) agencies and individuals that have contact with
youth over substantial periods of time and are able to
offer reliable information about the needs and problems
of youth.
(4) CONSULTATION.—The standards and procedures shall
provide for necessary consultation with individuals and
organizations, including court, probation, parole, law enforcement, education, welfare, and medical authorities and advisers.
(5) REIMBURSEMENT.—The Secretary is authorized to enter
into contracts with and make payments to individuals and
organizations for the cost of conducting recruitment, screening,
and selection of eligible applicants for the Job Corps, as provided for in this section. The Secretary shall make no payment
to any individual or organization solely as compensation for
referring the names of applicants for the Job Corps.
(b) SPECIAL LIMITATIONS ON SELECTION.—
(1) IN GENERAL.—No individual shall be selected as an
enrollee unless the individual or organization implementing
the standards and procedures described in subsection (a) determines that—
(A) there is a reasonable expectation that the individual considered for selection can participate successfully
in group situations and activities, and is not likely to
engage in behavior that would prevent other enrollees from
receiving the benefit of the Job Corps program or be
incompatible with the maintenance of sound discipline and
satisfactory relationships between the Job Corps center
to which the individual might be assigned and communities
surrounding the Job Corps center;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1009

(B) the individual manifests a basic understanding of
both the rules to which the individual will be subject and
of the consequences of failure to observe the rules; and
(C) the individual has passed a background check conducted in accordance with procedures established by the
Secretary.
(2) INDIVIDUALS ON PROBATION, PAROLE, OR SUPERVISED
RELEASE.—An individual on probation, parole, or supervised
release may be selected as an enrollee only if release from
the supervision of the probation or parole official involved is
satisfactory to the official and the Secretary and does not violate
applicable laws (including regulations). No individual shall be
denied a position in the Job Corps solely on the basis of individual contact with the criminal justice system.
(c) ASSIGNMENT PLAN.—
(1) IN GENERAL.—Every 2 years, the Secretary shall develop
and implement an assignment plan for assigning enrollees to
Job Corps centers. In developing the plan, the Secretary shall,
based on the analysis described in paragraph (2), establish
targets, applicable to each Job Corps center, for—
(A) the maximum attainable percentage of enrollees
at the Job Corps center that reside in the State in which
the center is located; and
(B) the maximum attainable percentage of enrollees
at the Job Corps center that reside in the region in which
the center is located, and in surrounding regions.
(2) ANALYSIS.—In order to develop the plan described in
paragraph (1), the Secretary shall, every 2 years, analyze,
for the Job Corps center—
(A) the size of the population of individuals eligible
to participate in Job Corps in the State and region in
which the Job Corps center is located, and in surrounding
regions;
(B) the relative demand for participation in the Job
Corps in the State and region, and in surrounding regions;
and
(C) the capacity and utilization of the Job Corps center,
including services provided through the center.
(d) ASSIGNMENT OF INDIVIDUAL ENROLLEES.—
(1) IN GENERAL.—After an individual has been selected
for the Job Corps in accordance with the standards and procedures of the Secretary under subsection (a), the enrollee shall
be assigned to the Job Corps center that is closest to the
home of the enrollee, except that the Secretary may waive
this requirement if—
(A) the enrollee chooses a vocational training program,
or requires an English literacy program, that is not available at such center;
(B) the enrollee would be unduly delayed in participating in the Job Corps program because the closest center
is operating at full capacity; or
(C) the parent or guardian of the enrollee requests
assignment of the enrollee to another Job Corps center
due to circumstances in the community of the enrollee
that would impair prospects for successful participation
in the Job Corps program.

112 STAT. 1010

PUBLIC LAW 105–220—AUG. 7, 1998
(2) ENROLLEES WHO ARE YOUNGER THAN 18.—An enrollee
who is younger than 18 shall not be assigned to a Job Corps
center other than the center closest to the home of the enrollee
pursuant to paragraph (1) if the parent or guardian of the
enrollee objects to the assignment.

29 USC 2886.

SEC. 146. ENROLLMENT.

(a) RELATIONSHIP BETWEEN ENROLLMENT AND MILITARY
OBLIGATIONS.—Enrollment in the Job Corps shall not relieve any
individual of obligations under the Military Selective Service Act
(50 U.S.C. App. 451 et seq.).
(b) PERIOD OF ENROLLMENT.—No individual may be enrolled
in the Job Corps for more than 2 years, except—
(1) in a case in which completion of an advanced career
training program under section 148(c) would require an individual to participate in the Job Corps for not more than one
additional year; or
(2) as the Secretary may authorize in a special case.
29 USC 2887.

Contracts.

SEC. 147. JOB CORPS CENTERS.

(a) OPERATORS AND SERVICE PROVIDERS.—
(1) ELIGIBLE ENTITIES.—
(A) OPERATORS.—The Secretary shall enter into an
agreement with a Federal, State, or local agency, an area
vocational education school or residential vocational school,
or a private organization, for the operation of each Job
Corps center.
(B) PROVIDERS.—The Secretary may enter into an
agreement with a local entity to provide activities described
in this subtitle to the Job Corps center.
(2) SELECTION PROCESS.—
(A) COMPETITIVE BASIS.—Except as provided in subsections (c) and (d) of section 303 of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253),
the Secretary shall select on a competitive basis an entity
to operate a Job Corps center and entities to provide activities described in this subtitle to the Job Corps center.
In developing a solicitation for an operator or service provider, the Secretary shall consult with the Governor of
the State in which the center is located, the industry council
for the Job Corps center (if established), and the applicable
local board regarding the contents of such solicitation,
including elements that will promote the consistency of
the activities carried out through the center with the objectives set forth in the State plan or in a local plan.
(B) RECOMMENDATIONS AND CONSIDERATIONS.—
(i) OPERATORS.—In selecting an entity to operate
a Job Corps center, the Secretary shall consider—
(I) the ability of the entity to coordinate the
activities carried out through the Job Corps center
with activities carried out under the appropriate
State plan and local plans;
(II) the degree to which the vocational training
that the entity proposes for the center reflects
local employment opportunities in the local areas
in which enrollees at the center intend to seek
employment;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1011

(III) the degree to which the entity is familiar
with the surrounding communities, applicable onestop centers, and the State and region in which
the center is located; and
(IV) the past performance of the entity, if any,
relating to operating or providing activities
described in this subtitle to a Job Corps center.
(ii) PROVIDERS.—In selecting a service provider for
a Job Corps center, the Secretary shall consider the
factors described in subclauses (I) through (IV) of
clause (i), as appropriate.
(b) CHARACTER AND ACTIVITIES.—Job Corps centers may be
residential or nonresidential in character, and shall be designed
and operated so as to provide enrollees, in a well-supervised setting,
with access to activities described in this subtitle. In any year,
no more than 20 percent of the individuals enrolled in the Job
Corps may be nonresidential participants in the Job Corps.
(c) CIVILIAN CONSERVATION CENTERS.—
(1) IN GENERAL.—The Job Corps centers may include
Civilian Conservation Centers operated under agreements with
the Secretary of Agriculture or the Secretary of the Interior,
located primarily in rural areas, which shall provide, in addition
to other vocational training and assistance, programs of work
experience to conserve, develop, or manage public natural
resources or public recreational areas or to develop community
projects in the public interest.
(2) SELECTION PROCESS.—The Secretary may select an
entity to operate a Civilian Conservation Center on a competitive basis, as provided in subsection (a), if the center fails
to meet such national performance standards as the Secretary
shall establish.
(d) INDIAN TRIBES.—
(1) GENERAL AUTHORITY.—The Secretary may enter into
agreements with Indian tribes to operate Job Corps centers
for Indians.
(2) DEFINITIONS.—In this subsection, the terms ‘‘Indian’’
and ‘‘Indian tribe’’, have the meanings given such terms in
subsections (d) and (e), respectively, of section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.
450b).
SEC. 148. PROGRAM ACTIVITIES.

(a) ACTIVITIES PROVIDED BY JOB CORPS CENTERS.—
(1) IN GENERAL.—Each Job Corps center shall provide
enrollees with an intensive, well organized, and fully supervised
program of education, vocational training, work experience,
recreational activities, physical rehabilitation and development,
and counseling. Each Job Corps center shall provide enrollees
assigned to the center with access to core services described
in section 134(d)(2) and the intensive services described in
section 134(d)(3).
(2) RELATIONSHIP TO OPPORTUNITIES.—
(A) IN GENERAL.—The activities provided under this
subsection shall provide work-based learning throughout
the enrollment of the enrollees and assist the enrollees
in obtaining meaningful unsubsidized employment, participating in secondary education or postsecondary education

29 USC 2888.

112 STAT. 1012

PUBLIC LAW 105–220—AUG. 7, 1998

programs, enrolling in other suitable vocational training
programs, or satisfying Armed Forces requirements, on
completion of their enrollment.
(B) LINK TO EMPLOYMENT OPPORTUNITIES.—The vocational training provided shall be linked to the employment
opportunities in the local area in which the enrollee intends
to seek employment after graduation.
(b) EDUCATION AND VOCATIONAL TRAINING.—The Secretary may
arrange for education and vocational training of enrollees through
local public or private educational agencies, vocational educational
institutions, or technical institutes, whenever such entities provide
education and training substantially equivalent in cost and quality
to that which the Secretary could provide through other means.
(c) ADVANCED CAREER TRAINING PROGRAMS.—
(1) IN GENERAL.—The Secretary may arrange for programs
of advanced career training for selected enrollees in which
the enrollees may continue to participate for a period of not
to exceed 1 year in addition to the period of participation
to which the enrollees would otherwise be limited. The advanced
career training may be provided through the eligible providers
of training services identified under section 122.
(2) BENEFITS.—
(A) IN GENERAL.—During the period of participation
in an advanced career training program, an enrollee shall
be eligible for full Job Corps benefits, or a monthly stipend
equal to the average value of the residential support, food,
allowances, and other benefits provided to enrollees
assigned to residential Job Corps centers.
(B) CALCULATION.—The total amount for which an
enrollee shall be eligible under subparagraph (A) shall
be reduced by the amount of any scholarship or other
educational grant assistance received by such enrollee for
advanced career training.
(3) DEMONSTRATION.—Each year, any operator seeking to
enroll additional enrollees in an advanced career training program shall demonstrate that participants in such program have
achieved a satisfactory rate of completion and placement in
training-related jobs before the operator may carry out such
additional enrollment.
(d) CONTINUED SERVICES.—The Secretary shall also provide
continued services to graduates, including providing counseling
regarding the workplace for 12 months after the date of graduation
of the graduates. In selecting a provider for such services, the
Secretary shall give priority to one-stop partners.
(e) CHILD CARE.—The Secretary shall, to the extent practicable,
provide child care at or near Job Corps centers, for individuals
who require child care for their children in order to participate
in the Job Corps.
29 USC 2889.

SEC. 149. COUNSELING AND JOB PLACEMENT.

(a) COUNSELING AND TESTING.—The Secretary shall arrange
for counseling and testing for each enrollee at regular intervals
to measure progress in the education and vocational training programs carried out through the Job Corps.
(b) PLACEMENT.—The Secretary shall arrange for counseling
and testing for enrollees prior to their scheduled graduations to
determine their capabilities and, based on their capabilities, shall

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112 STAT. 1013

make every effort to arrange to place the enrollees in jobs in
the vocations for which the enrollees are trained or to assist the
enrollees in obtaining further activities described in this subtitle.
In arranging for the placement of graduates in jobs, the Secretary
shall utilize the one-stop delivery system to the fullest extent possible.
(c) STATUS AND PROGRESS.—The Secretary shall determine the
status and progress of enrollees scheduled for graduation and make
every effort to assure that their needs for further activities described
in this subtitle are met.
(d) SERVICES TO FORMER ENROLLEES.—The Secretary may provide such services as the Secretary determines to be appropriate
under this subtitle to former enrollees.
SEC. 150. SUPPORT.

29 USC 2890.

(a) PERSONAL ALLOWANCES.—The Secretary may provide enrollees assigned to Job Corps centers with such personal allowances
as the Secretary may determine to be necessary or appropriate
to meet the needs of the enrollees.
(b) READJUSTMENT ALLOWANCES.—
(1) GRADUATES.—The Secretary shall arrange for a
readjustment allowance to be paid to graduates. The Secretary
shall arrange for the allowance to be paid at the one-stop
center nearest to the home of the graduate who is returning
home, or at the one-stop center nearest to the location where
the graduate has indicated an intent to seek employment. If
the Secretary uses any organization, in lieu of a one-stop center,
to provide placement services under this Act, the Secretary
shall arrange for that organization to pay the readjustment
allowance.
(2) FORMER ENROLLEES.—The Secretary may provide for
a readjustment allowance to be paid to former enrollees. The
provision of the readjustment allowance shall be subject to
the same requirements as are applicable to the provision of
the readjustment allowance paid to graduates under paragraph
(1).
SEC. 151. OPERATING PLAN.

29 USC 2891.

(a) IN GENERAL.—The provisions of the contract between the
Secretary and an entity selected to operate a Job Corps center
shall, at a minimum, serve as an operating plan for the Job Corps
center.
(b) ADDITIONAL INFORMATION.—The Secretary may require the
operator, in order to remain eligible to operate the Job Corps
center, to submit such additional information as the Secretary
may require, which shall be considered part of the operating plan.
(c) AVAILABILITY.—The Secretary shall make the operating plan
described in subsections (a) and (b), excluding any proprietary
information, available to the public.
SEC. 152. STANDARDS OF CONDUCT.

(a) PROVISION AND ENFORCEMENT.—The Secretary shall provide, and directors of Job Corps centers shall stringently enforce,
standards of conduct within the centers. Such standards of conduct
shall include provisions forbidding the actions described in subsection (b)(2)(A).
(b) DISCIPLINARY MEASURES.—

29 USC 2892.

112 STAT. 1014

PUBLIC LAW 105–220—AUG. 7, 1998

(1) IN GENERAL.—To promote the proper moral and disciplinary conditions in the Job Corps, the directors of Job Corps
centers shall take appropriate disciplinary measures against
enrollees. If such a director determines that an enrollee has
committed a violation of the standards of conduct, the director
shall dismiss the enrollee from the Job Corps if the director
determines that the retention of the enrollee in the Job Corps
will jeopardize the enforcement of such standards or diminish
the opportunities of other enrollees.
(2) ZERO TOLERANCE POLICY AND DRUG TESTING.—
(A) GUIDELINES.—The Secretary shall adopt guidelines
establishing a zero tolerance policy for an act of violence,
for use, sale, or possession of a controlled substance, for
abuse of alcohol, or for other illegal or disruptive activity.
(B) DRUG TESTING.—The Secretary shall require drug
testing of all enrollees for controlled substances in accordance with procedures prescribed by the Secretary under
section 145(a).
(C) DEFINITIONS.—In this paragraph:
(i) CONTROLLED SUBSTANCE.—The term ‘‘controlled
substance’’ has the meaning given the term in section
102 of the Controlled Substances Act (21 U.S.C. 802).
(ii) ZERO TOLERANCE POLICY.—The term ‘‘zero
tolerance policy’’ means a policy under which an
enrollee shall be automatically dismissed from the Job
Corps after a determination by the director that the
enrollee has carried out an action described in subparagraph (A).
(c) APPEAL.—A disciplinary measure taken by a director under
this section shall be subject to expeditious appeal in accordance
with procedures established by the Secretary.
29 USC 2893.

SEC. 153. COMMUNITY PARTICIPATION.

(a) BUSINESS AND COMMUNITY LIAISON.—Each Job Corps center
shall have a Business and Community Liaison (referred to in this
Act as a ‘‘Liaison’’), designated by the director of the center.
(b) RESPONSIBILITIES.—The responsibilities of the Liaison shall
include—
(1) establishing and developing relationships and networks
with—
(A) local and distant employers; and
(B) applicable one-stop centers and applicable local
boards,
for the purpose of providing job opportunities for Job Corps
graduates; and
(2) establishing and developing relationships with members
of the community in which the Job Corps center is located,
informing members of the community about the projects of
the Job Corps center and changes in the rules, procedures,
or activities of the center that may affect the community, and
planning events of mutual interest to the community and the
Job Corps center.
(c) NEW CENTERS.—The Liaison for a Job Corps center that
is not yet operating shall establish and develop the relationships
and networks described in subsection (b) at least 3 months prior
to the date on which the center accepts the first enrollee at the
center.

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112 STAT. 1015

SEC. 154. INDUSTRY COUNCILS.

29 USC 2894.

(a) IN GENERAL.—Each Job Corps center shall have an industry
council, appointed by the director of the center after consultation
with the Liaison, in accordance with procedures established by
the Secretary.
(b) INDUSTRY COUNCIL COMPOSITION.—
(1) IN GENERAL.—An industry council shall be comprised
of—
(A) a majority of members who shall be local and
distant owners of business concerns, chief executives or
chief operating officers of nongovernmental employers, or
other private sector employers, who—
(i) have substantial management, hiring, or policy
responsibility; and
(ii) represent businesses with employment
opportunities that reflect the employment opportunities of the applicable local area;
(B) representatives of labor organizations (where
present) and representatives of employees; and
(C) enrollees and graduates of the Job Corps.
(2) LOCAL BOARD.—The industry council may include members of the applicable local boards who meet the requirements
described in paragraph (1).
(c) RESPONSIBILITIES.—The responsibilities of the industry
council shall be—
(1) to work closely with all applicable local boards in order
to determine, and recommend to the Secretary, appropriate
vocational training for the center;
(2) to review all the relevant labor market information
to—
(A) determine the employment opportunities in the
local areas in which the enrollees intend to seek employment after graduation;
(B) determine the skills and education that are necessary to obtain the employment opportunities; and
(C) recommend to the Secretary the type of vocational
training that should be implemented at the center to enable
the enrollees to obtain the employment opportunities; and
(3) to meet at least once every 6 months to reevaluate
the labor market information, and other relevant information,
to determine, and recommend to the Secretary, any necessary
changes in the vocational training provided at the center.
(d) NEW CENTERS.—The industry council for a Job Corps center
that is not yet operating shall carry out the responsibilities
described in subsection (c) at least 3 months prior to the date
on which the center accepts the first enrollee at the center.
SEC. 155. ADVISORY COMMITTEES.

The Secretary may establish and use advisory committees in
connection with the operation of the Job Corps program, and the
operation of Job Corps centers, whenever the Secretary determines
that the availability of outside advice and counsel on a regular
basis would be of substantial benefit in identifying and overcoming
problems, in planning program or center development, or in
strengthening relationships between the Job Corps and agencies,
institutions, or groups engaged in related activities.

29 USC 2895.

112 STAT. 1016
29 USC 2896.

SEC.

PUBLIC LAW 105–220—AUG. 7, 1998
156.

EXPERIMENTAL,
PROJECTS.

RESEARCH,

AND

DEMONSTRATION

The Secretary may carry out experimental, research, or demonstration projects relating to carrying out the Job Corps program
and may waive any provisions of this subtitle that the Secretary
finds would prevent the Secretary from carrying out the projects.
29 USC 2897.

SEC. 157. APPLICATION OF PROVISIONS OF FEDERAL LAW.

(a) ENROLLEES NOT CONSIDERED TO BE FEDERAL EMPLOYEES.—
(1) IN GENERAL.—Except as otherwise provided in this subsection and in section 8143(a) of title 5, United States Code,
enrollees shall not be considered to be Federal employees and
shall not be subject to the provisions of law relating to Federal
employment, including such provisions regarding hours of work,
rates of compensation, leave, unemployment compensation, and
Federal employee benefits.
(2) PROVISIONS RELATING TO TAXES AND SOCIAL SECURITY
BENEFITS.—For purposes of the Internal Revenue Code of 1986
and title II of the Social Security Act (42 U.S.C. 401 et seq.),
enrollees shall be deemed to be employees of the United States
and any service performed by an individual as an enrollee
shall be deemed to be performed in the employ of the United
States.
(3) PROVISIONS RELATING TO COMPENSATION TO FEDERAL
EMPLOYEES FOR WORK INJURIES.—For purposes of subchapter
I of chapter 81 of title 5, United States Code (relating to
compensation to Federal employees for work injuries), enrollees
shall be deemed to be civil employees of the Government of
the United States within the meaning of the term ‘‘employee’’
as defined in section 8101 of title 5, United States Code, and
the provisions of such subchapter shall apply as specified in
section 8143(a) of title 5, United States Code.
(4) FEDERAL TORT CLAIMS PROVISIONS.—For purposes of
the Federal tort claims provisions in title 28, United States
Code, enrollees shall be considered to be employees of the
Government.
(b) ADJUSTMENTS AND SETTLEMENTS.—Whenever the Secretary
finds a claim for damages to a person or property resulting from
the operation of the Job Corps to be a proper charge against
the United States, and the claim is not cognizable under section
2672 of title 28, United States Code, the Secretary may adjust
and settle the claim in an amount not exceeding $1,500.
(c) PERSONNEL OF THE UNIFORMED SERVICES.—Personnel of
the uniformed services who are detailed or assigned to duty in
the performance of agreements made by the Secretary for the support of the Job Corps shall not be counted in computing strength
under any law limiting the strength of such services or in computing
the percentage authorized by law for any grade in such services.
29 USC 2898.

SEC. 158. SPECIAL PROVISIONS.

(a) ENROLLMENT.—The Secretary shall ensure that women and
men have an equal opportunity to participate in the Job Corps
program, consistent with section 145.
(b) STUDIES, EVALUATIONS, PROPOSALS, AND DATA.—The Secretary shall assure that all studies, evaluations, proposals, and
data produced or developed with Federal funds in the course of

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1017

carrying out the Job Corps program shall become the property
of the United States.
(c) TRANSFER OF PROPERTY.—
(1) IN GENERAL.—Notwithstanding title II of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C.
481 et seq.) and any other provision of law, the Secretary
and the Secretary of Education shall receive priority by the
Secretary of Defense for the direct transfer, on a nonreimbursable basis, of the property described in paragraph (2) for use
in carrying out programs under this Act or under any other
Act.
(2) PROPERTY.—The property described in this paragraph
is real and personal property under the control of the Department of Defense that is not used by such Department, including
property that the Secretary of Defense determines is in excess
of current and projected requirements of such Department.
(d) GROSS RECEIPTS.—Transactions conducted by a private forprofit or nonprofit entity that is an operator or service provider
for a Job Corps center shall not be considered to be generating
gross receipts. Such an operator or service provider shall not be
liable, directly or indirectly, to any State or subdivision of a State
(nor to any person acting on behalf of such a State or subdivision)
for any gross receipts taxes, business privilege taxes measured
by gross receipts, or any similar taxes imposed on, or measured
by, gross receipts in connection with any payments made to or
by such entity for operating or providing services to a Job Corps
center. Such an operator or service provider shall not be liable
to any State or subdivision of a State to collect or pay any sales,
excise, use, or similar tax imposed on the sale to or use by such
operator or service provider of any property, service, or other item
in connection with the operation of or provision of services to
a Job Corps center.
(e) MANAGEMENT FEE.—The Secretary shall provide each operator and (in an appropriate case, as determined by the Secretary)
service provider with an equitable and negotiated management
fee of not less than 1 percent of the amount of the funding provided
under the appropriate agreement specified in section 147.
(f ) DONATIONS.—The Secretary may accept on behalf of the
Job Corps or individual Job Corps centers charitable donations
of cash or other assistance, including equipment and materials,
if such donations are available for appropriate use for the purposes
set forth in this subtitle.
(g) SALE OF PROPERTY.—Notwithstanding any other provision
of law, if the Administrator of General Services sells a Job Corps
center facility, the Administrator shall transfer the proceeds from
the sale to the Secretary, who shall use the proceeds to carry
out the Job Corps program.
SEC. 159. MANAGEMENT INFORMATION.

(a) FINANCIAL MANAGEMENT INFORMATION SYSTEM.—
(1) IN GENERAL.—The Secretary shall establish procedures
to ensure that each operator, and each service provider, maintains a financial management information system that will
provide—
(A) accurate, complete, and current disclosures of the
costs of Job Corps operations; and

Procedures.
29 USC 2899.

112 STAT. 1018

PUBLIC LAW 105–220—AUG. 7, 1998
(B) sufficient data for the effective evaluation of activities carried out through the Job Corps program.
(2) ACCOUNTS.—Each operator and service provider shall
maintain funds received under this subtitle in accounts in
a manner that ensures timely and accurate reporting as
required by the Secretary.
(3) FISCAL RESPONSIBILITY.—Operators shall remain fiscally
responsible and control costs, regardless of whether the funds
made available for Job Corps centers are incrementally
increased or decreased between fiscal years.
(b) AUDIT.—
(1) ACCESS.—The Secretary, the Inspector General of the
Department of Labor, the Comptroller General of the United
States, and any of their duly authorized representatives, shall
have access to any books, documents, papers, and records of
the operators and service providers described in subsection
(a) that are pertinent to the Job Corps program, for purposes
of conducting surveys, audits, and evaluations of the operators
and service providers.
(2) SURVEYS, AUDITS, AND EVALUATIONS.—The Secretary
shall survey, audit, or evaluate, or arrange for the survey,
audit, or evaluation of, the operators and service providers,
using Federal auditors or independent public accountants. The
Secretary shall conduct such surveys, audits, or evaluations
not less often than once every 3 years.
(c) INFORMATION ON INDICATORS OF PERFORMANCE.—
(1) ESTABLISHMENT.—The Secretary shall, with continuity
and consistency from year to year, establish indicators of
performance, and expected levels of performance for Job Corps
centers and the Job Corps program, relating to—
(A) the number of graduates and the rate of such
graduation, analyzed by type of vocational training received
through the Job Corps program and by whether the vocational training was provided by a local or national service
provider;
(B) the number of graduates who entered unsubsidized
employment related to the vocational training received
through the Job Corps program and the number who
entered unsubsidized employment not related to the vocational training received, analyzed by whether the vocational
training was provided by a local or national service provider
and by whether the placement in the employment was
conducted by a local or national service provider;
(C) the average wage received by graduates who
entered unsubsidized employment related to the vocational
training received through the Job Corps program and the
average wage received by graduates who entered unsubsidized employment unrelated to the vocational training
received;
(D) the average wage received by graduates placed
in unsubsidized employment after completion of the Job
Corps program—
(i) on the first day of the employment;
(ii) 6 months after the first day of the employment;
and
(iii) 12 months after the first day of the employment,

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1019

analyzed by type of vocational training received through
the Job Corps program;
(E) the number of graduates who entered unsubsidized
employment and were retained in the unsubsidized employment—
(i) 6 months after the first day of the employment;
and
(ii) 12 months after the first day of the employment;
(F) the number of graduates who entered unsubsidized
employment—
(i) for 32 hours per week or more;
(ii) for not less than 20 but less than 32 hours
per week; and
(iii) for less than 20 hours per week;
(G) the number of graduates who entered postsecondary education or advanced training programs, including apprenticeship programs, as appropriate; and
(H) the number of graduates who attained job
readiness and employment skills.
(2) PERFORMANCE OF RECRUITERS.—The Secretary shall also
establish performance measures, and expected performance levels on the performance measures, for local and national recruitment service providers serving the Job Corps program. The
performance measures shall relate to the number of enrollees
retained in the Job Corps program for 30 days and for 60
days after initial placement in the program.
(3) REPORT.—The Secretary shall collect, and annually submit a report to the appropriate committees of Congress containing information on the performance of each Job Corps center,
and the Job Corps program, on the core performance measures,
as compared to the expected performance level for each performance measure. The report shall also contain information on
the performance of the service providers described in paragraph
(2) on the performance measures established under such paragraph, as compared to the expected performance levels for
the performance measures.
(d) ADDITIONAL INFORMATION.—The Secretary shall also collect,
and submit in the report described in subsection (c), information
on the performance of each Job Corps center, and the Job Corps
program, regarding—
(1) the number of enrollees served;
(2) the average level of learning gains for graduates and
former enrollees;
(3) the number of former enrollees and graduates who
entered the Armed Forces;
(4) the number of former enrollees who entered postsecondary education;
(5) the number of former enrollees who entered unsubsidized employment related to the vocational training received
through the Job Corps program and the number who entered
unsubsidized employment not related to the vocational training
received;
(6) the number of former enrollees and graduates who
obtained a secondary school diploma or its recognized equivalent;

112 STAT. 1020

Federal Register,
publication.

29 USC 2900.

PUBLIC LAW 105–220—AUG. 7, 1998

(7) the number and percentage of dropouts from the Job
Corps program including the number dismissed under the zero
tolerance policy described in section 152(b); and
(8) any additional information required by the Secretary.
(e) METHODS.—The Secretary may collect the information
described in subsections (c) and (d) using methods described in
section 136(f )(2) consistent with State law.
(f ) PERFORMANCE ASSESSMENTS AND IMPROVEMENTS.—
(1) ASSESSMENTS.—The Secretary shall conduct an annual
assessment of the performance of each Job Corps center. Based
on the assessment, the Secretary shall take measures to
continuously improve the performance of the Job Corps program.
(2) PERFORMANCE IMPROVEMENT PLANS.—With respect to
a Job Corps center that fails to meet the expected levels of
performance relating to the core performance measures specified in subsection (c), the Secretary shall develop and implement
a performance improvement plan. Such a plan shall require
action including—
(A) providing technical assistance to the center;
(B) changing the vocational training offered at the
center;
(C) changing the management staff of the center;
(D) replacing the operator of the center;
(E) reducing the capacity of the center;
(F) relocating the center; or
(G) closing the center.
(3) ADDITIONAL PERFORMANCE IMPROVEMENT PLANS.—In
addition to the performance improvement plans required under
paragraph (2), the Secretary may develop and implement additional performance improvement plans. Such a plan shall
require improvements, including the actions described in paragraph (2), for a Job Corps center that fails to meet criteria
established by the Secretary other than the expected levels
of performance described in paragraph (2).
(g) CLOSURE OF JOB CORPS CENTER.—Prior to the closure of
any Job Corps center, the Secretary shall ensure—
(1) that the proposed decision to close the center is
announced in advance to the general public through publication
in the Federal Register or other appropriate means;
(2) the establishment of a reasonable comment period, not
to exceed 30 days, for interested individuals to submit written
comments to the Secretary; and
(3) that the Member of Congress who represents the district
in which such center is located is notified within a reasonable
period of time in advance of any final decision to close the
center.
SEC. 160. GENERAL PROVISIONS.

The Secretary is authorized to—
(1) disseminate, with regard to the provisions of section
3204 of title 39, United States Code, data and information
in such forms as the Secretary shall determine to be appropriate, to public agencies, private organizations, and the general
public;
(2) subject to section 157(b), collect or compromise all
obligations to or held by the Secretary and exercise all legal

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1021

or equitable rights accruing to the Secretary in connection
with the payment of obligations until such time as such obligations may be referred to the Attorney General for suit or
collection; and
(3) expend funds made available for purposes of this subtitle—
(A) for printing and binding, in accordance with
applicable law (including regulation); and
(B) without regard to any other law (including regulation), for rent of buildings and space in buildings and
for repair, alteration, and improvement of buildings and
space in buildings rented by the Secretary, except that
the Secretary shall not expend funds under the authority
of this subparagraph—
(i) except when necessary to obtain an item, service, or facility, that is required in the proper administration of this subtitle, and that otherwise could not
be obtained, or could not be obtained in the quantity
or quality needed, or at the time, in the form, or
under the conditions in which the item, service, or
facility is needed; and
(ii) prior to having given written notification to
the Administrator of General Services (if the expenditure would affect an activity that otherwise would be
under the jurisdiction of the General Services Administration) of the intention of the Secretary to make the
expenditure, and the reasons and justifications for the
expenditure.
SEC. 161. AUTHORIZATION OF APPROPRIATIONS.

29 USC 2901.

There are authorized to be appropriated to carry out this subtitle such sums as may be necessary for each of the fiscal years
1999 through 2003.

Subtitle D—National Programs
SEC. 166. NATIVE AMERICAN PROGRAMS.

(a) PURPOSE.—
(1) IN GENERAL.—The purpose of this section is to support
employment and training activities for Indian, Alaska Native,
and Native Hawaiian individuals in order—
(A) to develop more fully the academic, occupational,
and literacy skills of such individuals;
(B) to make such individuals more competitive in the
workforce; and
(C) to promote the economic and social development
of Indian, Alaska Native, and Native Hawaiian communities in accordance with the goals and values of such
communities.
(2) INDIAN POLICY.—All programs assisted under this section shall be administered in a manner consistent with the
principles of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450 et seq.) and the governmentto-government relationship between the Federal Government
and Indian tribal governments.
(b) DEFINITIONS.—As used in this section:

29 USC 2911.

112 STAT. 1022

Grants.
Contracts.

PUBLIC LAW 105–220—AUG. 7, 1998

(1) ALASKA NATIVE.—The term ‘‘Alaska Native’’ means a
Native as such term is defined in section 3(b) of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602(b)).
(2) INDIAN, INDIAN TRIBE, AND TRIBAL ORGANIZATION.—The
terms ‘‘Indian’’, ‘‘Indian tribe’’, and ‘‘tribal organization’’ have
the meanings given such terms in subsections (d), (e), and
(l), respectively, of section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
(3) NATIVE HAWAIIAN AND NATIVE HAWAIIAN ORGANIZATION.—The terms ‘‘Native Hawaiian’’ and ‘‘Native Hawaiian
organization’’ have the meanings given such terms in paragraphs (1) and (3), respectively, of section 9212 of the Native
Hawaiian Education Act (20 U.S.C. 7912).
(c) PROGRAM AUTHORIZED.—
(1) IN GENERAL.—The Secretary shall, on a competitive
basis, make grants to, or enter into contracts or cooperative
agreements with, Indian tribes, tribal organizations, Alaska
Native entities, Indian-controlled organizations serving Indians,
or Native Hawaiian organizations to carry out the authorized
activities described in subsection (d).
(2) EXCEPTION.—The competition for grants, contracts, or
cooperative agreements conducted under paragraph (1) shall
be conducted every 2 years, except that if a recipient of such
a grant, contract, or agreement has performed satisfactorily,
the Secretary may waive the requirements for such competition
on receipt from the recipient of a satisfactory 2-year program
plan for the succeeding 2-year period of the grant, contract,
or agreement.
(d) AUTHORIZED ACTIVITIES.—
(1) IN GENERAL.—Funds made available under subsection
(c) shall be used to carry out the activities described in paragraph (2) that—
(A) are consistent with this section; and
(B) are necessary to meet the needs of Indians or
Native Hawaiians preparing to enter, reenter, or retain
unsubsidized employment.
(2) WORKFORCE INVESTMENT ACTIVITIES AND SUPPLEMENTAL
SERVICES.—
(A) IN GENERAL.—Funds made available under subsection (c) shall be used for—
(i) comprehensive workforce investment activities
for Indians or Native Hawaiians; or
(ii) supplemental services for Indian or Native
Hawaiian youth on or near Indian reservations and
in Oklahoma, Alaska, or Hawaii.
(B) SPECIAL RULE.—Notwithstanding any other provision of this section, individuals who were eligible to participate in programs under section 401 of the Job Training
Partnership Act (29 U.S.C. 1671) (as such section was
in effect on the day before the date of enactment of this
Act) shall be eligible to participate in an activity assisted
under this section.
(e) PROGRAM PLAN.—In order to receive a grant or enter into
a contract or cooperative agreement under this section an entity
described in subsection (c) shall submit to the Secretary a program
plan that describes a 2-year strategy for meeting the needs of

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1023

Indian, Alaska Native, or Native Hawaiian individuals, as appropriate, in the area served by such entity. Such plan shall—
(1) be consistent with the purpose of this section;
(2) identify the population to be served;
(3) identify the education and employment needs of the
population to be served and the manner in which the activities
to be provided will strengthen the ability of the individuals
served to obtain or retain unsubsidized employment;
(4) describe the activities to be provided and the manner
in which such activities are to be integrated with other appropriate activities; and
(5) describe, after the entity submitting the plan consults
with the Secretary, the performance measures to be used to
assess the performance of entities in carrying out the activities
assisted under this section.
(f ) CONSOLIDATION OF FUNDS.—Each entity receiving assistance
under subsection (c) may consolidate such assistance with assistance
received from related programs in accordance with the provisions
of the Indian Employment, Training and Related Services Demonstration Act of 1992 (25 U.S.C. 3401 et seq.).
(g) NONDUPLICATIVE AND NONEXCLUSIVE SERVICES.—Nothing
in this section shall be construed—
(1) to limit the eligibility of any entity described in subsection (c) to participate in any activity offered by a State
or local entity under this Act; or
(2) to preclude or discourage any agreement, between any
entity described in subsection (c) and any State or local entity,
to facilitate the provision of services by such entity or to the
population served by such entity.
(h) ADMINISTRATIVE PROVISIONS.—
(1) ORGANIZATIONAL UNIT ESTABLISHED.—The Secretary
shall designate a single organizational unit within the Department of Labor that shall have primary responsibility for the
administration of the activities authorized under this section.
(2) REGULATIONS.—The Secretary shall consult with the
entities described in subsection (c) in—
(A) establishing regulations to carry out this section,
including performance measures for entities receiving
assistance under such subsection, taking into account the
economic circumstances of such entities; and
(B) developing a funding distribution plan that takes
into consideration previous levels of funding (prior to the
date of enactment of this Act) to such entities.
(3) WAIVERS.—
(A) IN GENERAL.—With respect to an entity described
in subsection (c), the Secretary, notwithstanding any other
provision of law, may, pursuant to a request submitted
by such entity that meets the requirements established
under paragraph (2), waive any of the statutory or regulatory requirements of this title that are inconsistent with
the specific needs of the entities described in such subsection, except that the Secretary may not waive requirements relating to wage and labor standards, worker rights,
participation and protection of workers and participants,
grievance procedures, and judicial review.
(B) REQUEST AND APPROVAL.—An entity described in
subsection (c) that requests a waiver under subparagraph

112 STAT. 1024

Establishment.

PUBLIC LAW 105–220—AUG. 7, 1998

(A) shall submit a plan to the Secretary to improve the
program of workforce investment activities carried out by
the entity, which plan shall meet the requirements established by the Secretary and shall be generally consistent
with the requirements of section 189(i)(4)(B).
(4) ADVISORY COUNCIL.—
(A) IN GENERAL.—Using funds made available to carry
out this section, the Secretary shall establish a Native
American Employment and Training Council to facilitate
the consultation described in paragraph (2).
(B) COMPOSITION.—The Council shall be composed of
individuals, appointed by the Secretary, who are representatives of the entities described in subsection (c).
(C) DUTIES.—The Council shall advise the Secretary
on all aspects of the operation and administration of the
programs assisted under this section, including the selection of the individual appointed as the head of the unit
established under paragraph (1).
(D) PERSONNEL MATTERS.—
(i) COMPENSATION OF MEMBERS.—Members of the
Council shall serve without compensation.
(ii) TRAVEL EXPENSES.—The members of the Council shall be allowed travel expenses, including per diem
in lieu of subsistence, at rates authorized for employees
of agencies under subchapter I of chapter 57 of title
5, United States Code, while away from their homes
or regular places of business in the performance of
services for the Council.
(iii) ADMINISTRATIVE SUPPORT.—The Secretary
shall provide the Council with such administrative support as may be necessary to perform the functions
of the Council.
(E) CHAIRPERSON.—The Council shall select a chairperson from among its members.
(F) MEETINGS.—The Council shall meet not less than
twice each year.
(G) APPLICATION.—Section 14 of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the Council.
(5) TECHNICAL ASSISTANCE.—The Secretary, acting through
the unit established under paragraph (1), is authorized to provide technical assistance to entities described in subsection
(c) that receive assistance under subsection (c) to enable such
entities to improve the activities authorized under this section
that are provided by such entities.
(6) AGREEMENT FOR CERTAIN FEDERALLY RECOGNIZED
INDIAN TRIBES TO TRANSFER FUNDS TO THE PROGRAM.—A federally recognized Indian tribe that administers funds provided
under this section and funds provided by more than one State
under other sections of this title may enter into an agreement
with the Secretary and the Governors of the affected States
to transfer the funds provided by the States to the program
administered by the tribe under this section.
(i) COMPLIANCE WITH SINGLE AUDIT REQUIREMENTS; RELATED
REQUIREMENT.—Grants, contracts, and cooperative agreements
entered into under this section shall be subject to the requirements
of chapter 75 of subtitle V of title 31, United States Code (enacted

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1025

by the Single Audit Act of 1984) and charging of costs under
this section shall be subject to appropriate circulars issued by
the Office of Management and Budget.
( j) ASSISTANCE TO AMERICAN SAMOANS IN HAWAII.—
(1) IN GENERAL.—Notwithstanding any other provision of
law, the Secretary is authorized to provide assistance to American Samoans who reside in Hawaii for the co-location of federally funded and State-funded workforce investment activities.
(2) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated for fiscal year 1999 such sums as
may be necessary to carry out this subsection.
SEC. 167. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

(a) IN GENERAL.—Every 2 years, the Secretary shall, on a
competitive basis, make grants to, or enter into contracts with,
eligible entities to carry out the activities described in subsection
(d).
(b) ELIGIBLE ENTITIES.—To be eligible to receive a grant or
enter into a contract under this section, an entity shall have an
understanding of the problems of eligible migrant and seasonal
farmworkers (including dependents), a familiarity with the area
to be served, and the ability to demonstrate a capacity to administer
effectively a diversified program of workforce investment activities
(including youth activities) and related assistance for eligible
migrant and seasonal farmworkers.
(c) PROGRAM PLAN.—
(1) IN GENERAL.—To be eligible to receive a grant or enter
into a contract under this section, an entity described in subsection (b) shall submit to the Secretary a plan that describes
a 2-year strategy for meeting the needs of eligible migrant
and seasonal farmworkers in the area to be served by such
entity.
(2) CONTENTS.—Such plan shall—
(A) identify the education and employment needs of
the population to be served and the manner in which
the services to be provided will strengthen the ability of
the eligible migrant and seasonal farmworkers and dependents to obtain or retain unsubsidized employment or stabilize their unsubsidized employment;
(B) describe the related assistance and supportive services to be provided and the manner in which such assistance and services are to be integrated and coordinated
with other appropriate services; and
(C) describe the indicators of performance to be used
to assess the performance of such entity in carrying out
the activities assisted under this section.
(3) ADMINISTRATION.—Grants and contracts awarded under
this section shall be centrally administered by the Department
of Labor and competitively awarded by the Secretary using
procedures consistent with standard Federal Government
competitive procurement policies.
(4) COMPETITION.—
(A) IN GENERAL.—The competition for grants made
and contracts entered into under this section shall be conducted every 2 years.

Grants.
Contracts.
29 USC 2912.

112 STAT. 1026

PUBLIC LAW 105–220—AUG. 7, 1998

(B) EXCEPTION.—Notwithstanding subparagraph (A), if
a recipient of such a grant or contract has performed satisfactorily under the terms of the grant agreement or contract, the Secretary may waive the requirement for such
competition for such recipient upon receipt from the recipient of a satisfactory 2-year plan described in paragraph
(1) for the succeeding 2-year grant or contract period. The
Secretary may exercise the waiver authority of the preceding sentence not more than once during any 4-year period
with respect to any single recipient.
(d) AUTHORIZED ACTIVITIES.—Funds made available under this
section shall be used to carry out workforce investment activities
(including youth activities) and provide related assistance for
eligible migrant and seasonal farmworkers, which may include
employment, training, educational assistance, literacy assistance,
an English language program, worker safety training, housing,
supportive services, dropout prevention activities, followup services
for those individuals placed in employment, self-employment and
related business enterprise development education as needed by
eligible migrant and seasonal farmworkers and identified pursuant
to the plan required by subsection (c), and technical assistance
relating to capacity enhancement in such areas as management
information technology.
(e) CONSULTATION WITH GOVERNORS AND LOCAL BOARDS.—In
making grants and entering into contracts under this section, the
Secretary shall consult with the Governors and local boards of
the States in which the eligible entities will carry out the activities
described in subsection (d).
(f ) REGULATIONS.—The Secretary shall consult with eligible
migrant and seasonal farmworkers groups and States in establishing regulations to carry out this section, including performance
measures for eligible entities that take into account the economic
circumstances and demographics of eligible migrant and seasonal
farmworkers.
(g) COMPLIANCE WITH SINGLE AUDIT REQUIREMENTS; RELATED
REQUIREMENT.—Grants and contracts entered into under this section shall be subject to the requirements of chapter 75 of subtitle
V of title 31, United States Code (enacted by the Single Audit
Act of 1984) and charging of costs under this section shall be
subject to appropriate circulars issued by the Office of Management
and Budget.
(h) DEFINITIONS.—In this section:
(1) DISADVANTAGED.—The term ‘‘disadvantaged’’, used with
respect to a farmworker, means a farmworker whose income,
for 12 consecutive months out of the 24 months prior to application for the program involved, does not exceed the higher of—
(A) the poverty line (as defined in section 334(a)(2)(B))
for an equivalent period; or
(B) 70 percent of the lower living standard income
level, for an equivalent period.
(2) ELIGIBLE MIGRANT AND SEASONAL FARMWORKERS.—The
term ‘‘eligible migrant and seasonal farmworkers’’ means
individuals who are eligible migrant farmworkers or are eligible
seasonal farmworkers.
(3) ELIGIBLE MIGRANT FARMWORKER.—The term ‘‘eligible
migrant farmworker’’ means—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1027

(A) an eligible seasonal farmworker described in paragraph (4)(A) whose agricultural labor requires travel to
a job site such that the farmworker is unable to return
to a permanent place of residence within the same day;
and
(B) a dependent of the farmworker described in
subparagraph (A).
(4) ELIGIBLE SEASONAL FARMWORKER.—The term ‘‘eligible
seasonal farmworker’’ means—
(A) a disadvantaged person who, for 12 consecutive
months out of the 24 months prior to application for the
program involved, has been primarily employed in agricultural labor that is characterized by chronic unemployment
or underemployment; and
(B) a dependent of the person described in subparagraph (A).
SEC. 168. VETERANS’ WORKFORCE INVESTMENT PROGRAMS.

(a) AUTHORIZATION.—
(1) IN GENERAL.—The Secretary shall conduct, directly or
through grants or contracts, programs to meet the needs for
workforce investment activities of veterans with service-connected disabilities, veterans who have significant barriers to
employment, veterans who served on active duty in the armed
forces during a war or in a campaign or expedition for which
a campaign badge has been authorized, and recently separated
veterans.
(2) CONDUCT OF PROGRAMS.—Programs supported under
this section may be conducted through grants and contracts
with public agencies and private nonprofit organizations,
including recipients of Federal assistance under other provisions of this title, that the Secretary determines have an understanding of the unemployment problems of veterans described
in paragraph (1), familiarity with the area to be served, and
the capability to administer effectively a program of workforce
investment activities for such veterans.
(3) REQUIRED ACTIVITIES.—Programs supported under this
section shall include—
(A) activities to enhance services provided to veterans
by other providers of workforce investment activities funded
by Federal, State, or local government;
(B) activities to provide workforce investment activities
to such veterans that are not adequately provided by other
public providers of workforce investment activities; and
(C) outreach and public information activities to
develop and promote maximum job and job training
opportunities for such veterans and to inform such veterans
about employment, job training, on-the-job training and
educational opportunities under this title, under title 38,
United States Code, and under other provisions of law,
which activities shall be coordinated with activities provided through the one-stop centers described in section
134(c).
(b) ADMINISTRATION OF PROGRAMS.—
(1) IN GENERAL.—The Secretary shall administer programs
supported under this section through the Assistant Secretary
for Veterans’ Employment and Training.

Grants.
Contracts.
29 USC 2913.

112 STAT. 1028

PUBLIC LAW 105–220—AUG. 7, 1998
(2) ADDITIONAL RESPONSIBILITIES.—In carrying out responsibilities under this section, the Assistant Secretary for Veterans’ Employment and Training shall—
(A) be responsible for the awarding of grants and contracts and the distribution of funds under this section
and for the establishment of appropriate fiscal controls,
accountability, and program performance measures for
recipients of grants and contracts under this section; and
(B) consult with the Secretary of Veterans Affairs and
take steps to ensure that programs supported under this
section are coordinated, to the maximum extent feasible,
with related programs and activities conducted under title
38, United States Code, including programs and activities
conducted under subchapter II of chapter 77 of such title,
chapters 30, 31, 32, and 34 of such title, and sections
1712A, 1720A, 3687, and 4103A of such title.

29 USC 2914.

SEC. 169. YOUTH OPPORTUNITY GRANTS.

(a) GRANTS.—
(1) IN GENERAL.—Using funds made available under section
127(b)(1)(A), the Secretary shall make grants to eligible local
boards and eligible entities described in subsection (d) to provide activities described in subsection (b) for youth to increase
the long-term employment of youth who live in empowerment
zones, enterprise communities, and high poverty areas and
who seek assistance.
(2) DEFINITION.—In this section, the term ‘‘youth’’ means
an individual who is not less than age 14 and not more than
age 21.
(3) GRANT PERIOD.—The Secretary may make a grant under
this section for a 1-year period, and may renew the grant
for each of the 4 succeeding years.
(4) GRANT AWARDS.—In making grants under this section,
the Secretary shall ensure that grants are distributed equitably
among local boards and entities serving urban areas and local
boards and entities serving rural areas, taking into consideration the poverty rate in such urban and rural areas, as
described in subsection (c)(3)(B).
(b) USE OF FUNDS.—
(1) IN GENERAL.—A local board or entity that receives a
grant under this section shall use the funds made available
through the grant to provide activities that meet the requirements of section 129, except as provided in paragraph (2),
as well as youth development activities such as activities relating to leadership development, citizenship, and community service, and recreation activities.
(2) INTENSIVE PLACEMENT AND FOLLOWUP SERVICES.—In
providing activities under this section, a local board or entity
shall provide—
(A) intensive placement services; and
(B) followup services for not less than 24 months after
the completion of participation in the other activities
described in this subsection, as appropriate.
(c) ELIGIBLE LOCAL BOARDS.—To be eligible to receive a grant
under this section, a local board shall serve a community that—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1029

(1) has been designated as an empowerment zone or enterprise community under section 1391 of the Internal Revenue
Code of 1986;
(2)(A) is a State without a zone or community described
in paragraph (1); and
(B) has been designated as a high poverty area by the
Governor of the State; or
(3) is 1 of 2 areas in a State that—
(A) have been designated by the Governor as areas
for which a local board may apply for a grant under this
section; and
(B) meet the poverty rate criteria set forth in subsections (a)(4), (b), and (d) of section 1392 of the Internal
Revenue Code of 1986.
(d) ELIGIBLE ENTITIES.—To be eligible to receive a grant under
this section, an entity (other than a local board) shall—
(1) be a recipient of financial assistance under section
166; and
(2) serve a community that—
(A) meets the poverty rate criteria set forth in subsections (a)(4), (b), and (d) of section 1392 of the Internal
Revenue Code of 1986; and
(B) is located on an Indian reservation or serves Oklahoma Indians or Alaska Native villages or Native groups
(as such terms are defined in section 3 of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602)).
(e) APPLICATION.—To be eligible to receive a grant under this
section, a local board or entity shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require, including—
(1) a description of the activities that the local board or
entity will provide under this section to youth in the community
described in subsection (c);
(2) a description of the performance measures negotiated
under subsection (f ), and the manner in which the local boards
or entities will carry out the activities to meet the performance
measures;
(3) a description of the manner in which the activities
will be linked to activities described in section 129; and
(4) a description of the community support, including financial support through leveraging additional public and private
resources, for the activities.
(f ) PERFORMANCE MEASURES.—
(1) IN GENERAL.—The Secretary shall negotiate and reach
agreement with the local board or entity on performance measures for the indicators of performance referred to in subparagraphs (A) and (B) of section 136(b)(2) that will be used to
evaluate the performance of the local board or entity in carrying
out the activities described in subsection (b). Each local
performance measure shall consist of such a indicator of
performance, and a performance level referred to in paragraph
(2).
(2) PERFORMANCE LEVELS.—The Secretary shall negotiate
and reach agreement with the local board or entity regarding
the levels of performance expected to be achieved by the local
board or entity on the indicators of performance.
(g) ROLE MODEL ACADEMY PROJECT.—

112 STAT. 1030

PUBLIC LAW 105–220—AUG. 7, 1998
(1) IN GENERAL.—Using the funds made available pursuant
to section 127(b)(1)(A)(iv) for fiscal year 1999, the Secretary
shall provide assistance to an entity to carry out a project
establishing a role model academy for out-of-school youth.
(2) RESIDENTIAL CENTER.—The entity shall use the assistance to establish an academy that consists of a residential
center located on the site of a military installation closed or
realigned pursuant to a law providing for closures and realignments of such installations.
(3) SERVICES.—The academy established pursuant to this
subsection shall provide services that—
(A) utilize a military style model that emphasizes
leadership skills and discipline, or another model of demonstrated effectiveness; and
(B) include vocational training, secondary school course
work leading to a secondary school diploma or recognized
equivalent, and the use of mentors who serve as role models
and who provide academic training and career counseling
to the youth.

29 USC 2915.

SEC. 170. TECHNICAL ASSISTANCE.

(a) GENERAL TECHNICAL ASSISTANCE.—
(1) IN GENERAL.—The Secretary shall provide, coordinate,
and support the development of, appropriate training, technical
assistance, staff development, and other activities, including
assistance in replicating programs of demonstrated effectiveness, to States and localities, and, in particular, to assist States
in making transitions from carrying out activities under the
provisions of law repealed under section 199 to carry out activities under this title.
(2) FORM OF ASSISTANCE.—In carrying out paragraph (1)
on behalf of a State, or recipient of financial assistance under
any of sections 166 through 169, the Secretary, after consultation with the State or grant recipient, may award grants and
enter into contracts and cooperative agreements.
(3) LIMITATION.—Grants or contracts awarded under paragraph (1) to entities other than States or local units of government that are for amounts in excess of $100,000 shall only
be awarded on a competitive basis.
(b) DISLOCATED WORKER TECHNICAL ASSISTANCE.—
(1) AUTHORITY.—Of the amounts available pursuant to section 132(a)(2), the Secretary shall reserve not more than 5
percent of such amounts to provide technical assistance to
States that do not meet the State performance measures
described in section 136 with respect to employment and training activities for dislocated workers. Using such reserved funds,
the Secretary may provide such assistance to other States,
local areas, and other entities involved in providing assistance
to dislocated workers, to promote the continuous improvement
of assistance provided to dislocated workers, under this title.
(2) TRAINING.—Amounts reserved under this subsection
may be used to provide for the training of staff, including
specialists, who provide rapid response services. Such training
shall include instruction in proven methods of promoting,
establishing, and assisting labor-management committees. Such
projects shall be administered through the dislocated worker
office described in section 174(b).

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1031

SEC. 171. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH, AND
MULTISTATE PROJECTS.

(a) STRATEGIC PLAN.—
(1) IN GENERAL.—After consultation with States, localities,
and other interested parties, the Secretary shall, every 2 years,
publish in the Federal Register, a plan that describes the
demonstration and pilot (including dislocated worker demonstration and pilot), multiservice, research, and multistate
project priorities of the Department of Labor concerning employment and training for the 5-year period following the submission of the plan. Copies of the plan shall be transmitted to
the appropriate committees of Congress.
(2) FACTORS.—The plan published under paragraph (1)
shall contain strategies to address national employment and
training problems and take into account factors such as—
(A) the availability of existing research (as of the date
of the publication);
(B) the need to ensure results that have interstate
validity;
(C) the benefits of economies of scale and the efficiency
of proposed projects; and
(D) the likelihood that the results of the projects will
be useful to policymakers and stakeholders in addressing
employment and training problems.
(b) DEMONSTRATION AND PILOT PROJECTS.—
(1) IN GENERAL.—Under a plan published under subsection
(a), the Secretary shall, through grants or contracts, carry
out demonstration and pilot projects for the purpose of developing and implementing techniques and approaches, and demonstrating the effectiveness of specialized methods, in addressing employment and training needs. Such projects shall include
the provision of direct services to individuals to enhance
employment opportunities and an evaluation component and
may include—
(A) the establishment of advanced manufacturing technology skill centers developed through local partnerships
of industry, labor, education, community-based organizations, and economic development organizations to meet
unmet, high-tech skill needs of local communities;
(B) projects that provide training to upgrade the skills
of employed workers who reside and are employed in enterprise communities or empowerment zones;
(C) programs conducted jointly with the Department
of Defense to develop training programs utilizing computerbased and other innovative learning technologies;
(D) projects that promote the use of distance learning,
enabling students to take courses through the use of media
technology such as videos, teleconferencing computers, and
the Internet;
(E) projects that assist in providing comprehensive
services to increase the employment rates of out-of-school
youth residing in targeted high poverty areas within
empowerment zones and enterprise communities;
(F) the establishment of partnerships with national
organizations with special expertise in developing, organizing, and administering employment and training services,

29 USC 2916.

Federal Register,
publication.

Grants.
Contracts.

112 STAT. 1032

Grants.
Contracts.

PUBLIC LAW 105–220—AUG. 7, 1998

for individuals with disabilities, at the national, State,
and local levels;
(G) projects to assist public housing authorities that
provide, to public housing residents, job training programs
that demonstrate success in upgrading the job skills and
promoting employment of the residents; and
(H) projects that assist local areas to develop and
implement local self-sufficiency standards to evaluate the
degree to which participants in programs under this title
are achieving self-sufficiency.
(2) LIMITATIONS.—
(A) COMPETITIVE AWARDS.—Grants or contracts
awarded for carrying out demonstration and pilot projects
under this subsection shall be awarded only on a competitive basis, except that a noncompetitive award may be
made in the case of a project that is funded jointly with
other public or private sector entities that provide a portion
of the funding for the project.
(B) ELIGIBLE ENTITIES.—Grants or contracts may be
awarded under this subsection only to—
(i) entities with recognized expertise in—
(I) conducting national demonstration projects;
(II) utilizing state-of-the-art demonstration
methods; or
(III) conducting evaluations of workforce
investment projects; or
(ii) State and local entities with expertise in
operating or overseeing workforce investment programs.
(C) TIME LIMITS.—The Secretary shall establish appropriate time limits for carrying out demonstration and pilot
projects under this subsection.
(c) MULTISERVICE PROJECTS, RESEARCH PROJECTS, AND
MULTISTATE PROJECTS.—
(1) MULTISERVICE PROJECTS.—Under a plan published
under subsection (a), the Secretary shall, through grants or
contracts, carry out multiservice projects—
(A) that will test an array of approaches to the provision of employment and training services to a variety of
targeted populations;
(B) in which the entity carrying out the project, in
conjunction with employers, organized labor, and other
groups such as the disability community, will design,
develop, and test various training approaches in order to
determine effective practices; and
(C) that will assist in the development and replication
of effective service delivery strategies for targeted populations for the national employment and training system
as a whole.
(2) RESEARCH PROJECTS.—
(A) IN GENERAL.—Under a plan published under subsection (a), the Secretary shall, through grants or contracts,
carry out research projects that will contribute to the solution of employment and training problems in the United
States.
(B) FORMULA IMPROVEMENT STUDY AND REPORT.—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1033

(i) STUDY.—The Secretary shall conduct a 2-year
study concerning improvements in the formulas
described in section 132(b)(1)(B) and paragraphs (2)(A)
and (3) of section 133(b) (regarding distributing funds
under subtitle B to States and local areas for adult
employment and training activities). In conducting the
study, the Secretary shall examine means of improving
the formulas by—
(I) developing formulas based on statistically
reliable data;
(II) developing formulas that are consistent
with the goals and objectives of this title; and
(III) developing formulas based on organizational and financial stability of State boards and
local boards.
(ii) REPORT.—The Secretary shall prepare and
submit to Congress a report containing the results
of the study, including recommendations for improved
formulas.
(3) MULTISTATE PROJECTS.—
(A) IN GENERAL.—
(i) AUTHORITY.—Under a plan published under
subsection (a), the Secretary may, through grants or
contracts, carry out multistate projects that require
demonstrated expertise that is available at the national
level to effectively disseminate best practices and models for implementing employment and training services, address the specialized employment and training
needs of particular service populations, or address
industry-wide skill shortages.
(ii) DESIGN OF GRANTS.—Grants or contracts
awarded under this subsection shall be designed to
obtain information relating to the provision of services
under different economic conditions or to various demographic groups in order to provide guidance at the
national and State levels about how best to administer
specific employment and training services.
(4) LIMITATIONS.—
(A) COMPETITIVE AWARDS.—Grants or contracts
awarded for carrying out projects under this subsection
in amounts that exceed $100,000 shall be awarded only
on a competitive basis, except that a noncompetitive award
may be made in the case of a project that is funded jointly
with other public or private sector entities that provide
a substantial portion of assistance under the grant or contract for the project.
(B) TIME LIMITS.—A grant or contract shall not be
awarded under this subsection to the same organization
for more than 3 consecutive years unless such grant or
contract is competitively reevaluated within such period.
(C) PEER REVIEW.—
(i) IN GENERAL.—The Secretary shall utilize a peer
review process—
(I) to review and evaluate all applications for
grants in amounts that exceed $500,000 that are
submitted under this section; and

112 STAT. 1034

PUBLIC LAW 105–220—AUG. 7, 1998

(II) to review and designate exemplary and
promising programs under this section.
(ii) AVAILABILITY OF FUNDS.—The Secretary is
authorized to use funds provided under this section
to carry out peer review activities under this subparagraph.
(D) PRIORITY.—In awarding grants or contracts under
this subsection, priority shall be provided to entities with
nationally recognized expertise in the methods, techniques,
and knowledge of workforce investment activities and shall
include appropriate time limits, established by the Secretary, for the duration of such projects.
(d) DISLOCATED WORKER PROJECTS.—Of the amount made
available pursuant to section 132(a)(2)(A) for any program year,
the Secretary shall use not more than 10 percent of such amount
to carry out demonstration and pilot projects, multiservice projects,
and multistate projects, relating to the employment and training
needs of dislocated workers. Of the requirements of this section,
such projects shall be subject only to the provisions relating to
review and evaluation of applications under subsection (c)(4)(C).
Such projects may include demonstration and pilot projects relating
to promoting self-employment, promoting job creation, averting dislocations, assisting dislocated farmers, assisting dislocated fishermen, and promoting public works. Such projects shall be administered through the dislocated worker office described in section
173(b).
29 USC 2917.

SEC. 172. EVALUATIONS.

(a) PROGRAMS AND ACTIVITIES CARRIED OUT UNDER THIS
TITLE.—For the purpose of improving the management and
effectiveness of programs and activities carried out under this title,
the Secretary shall provide for the continuing evaluation of the
programs and activities, including those programs and activities
carried out under section 171. Such evaluations shall address—
(1) the general effectiveness of such programs and activities
in relation to their cost, including the extent to which the
programs and activities—
(A) improve the employment competencies of participants in comparison to comparably-situated individuals
who did not participate in such programs and activities;
and
(B) to the extent feasible, increase the level of total
employment over the level that would have existed in the
absence of such programs and activities;
(2) the effectiveness of the performance measures relating
to such programs and activities;
(3) the effectiveness of the structure and mechanisms for
delivery of services through such programs and activities;
(4) the impact of the programs and activities on the community and participants involved;
(5) the impact of such programs and activities on related
programs and activities;
(6) the extent to which such programs and activities meet
the needs of various demographic groups; and
(7) such other factors as may be appropriate.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1035

(b) OTHER PROGRAMS AND ACTIVITIES.—The Secretary may conduct evaluations of other federally funded employment-related programs and activities under other provisions of law.
(c) TECHNIQUES.—Evaluations conducted under this section
shall utilize appropriate methodology and research designs, including the use of control groups chosen by scientific random assignment
methodologies. The Secretary shall conduct as least 1 multisite
control group evaluation under this section by the end of fiscal
year 2005.
(d) REPORTS.—The entity carrying out an evaluation described
in subsection (a) or (b) shall prepare and submit to the Secretary
a draft report and a final report containing the results of the
evaluation.
(e) REPORTS TO CONGRESS.—Not later than 30 days after the
completion of such a draft report, the Secretary shall transmit
the draft report to the Committee on Education and the Workforce
of the House of Representatives and the Committee on Labor and
Human Resources of the Senate. Not later than 60 days after
the completion of such a final report, the Secretary shall transmit
the final report to such committees of the Congress.
(f ) COORDINATION.—The Secretary shall ensure the coordination of evaluations carried out by States pursuant to section 136(e)
with the evaluations carried out under this section.
SEC. 173. NATIONAL EMERGENCY GRANTS.

(a) IN GENERAL.—The Secretary is authorized to award national
emergency grants in a timely manner—
(1) to an entity described in subsection (c) to provide
employment and training assistance to workers affected by
major economic dislocations, such as plant closures, mass layoffs, or closures and realignments of military installations;
(2) to provide assistance to the Governor of any State
within the boundaries of which is an area that has suffered
an emergency or a major disaster as defined in paragraphs
(1) and (2), respectively, of section 102 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122
(1) and (2)) (referred to in this section as the ‘‘disaster area’’)
to provide disaster relief employment in the area; and
(3) to provide additional assistance to a State or local
board for eligible dislocated workers in a case in which the
State or local board has expended the funds provided under
this section to carry out activities described in paragraphs
(1) and (2) and can demonstrate the need for additional funds
to provide appropriate services for such workers, in accordance
with requirements prescribed by the Secretary.
(b) ADMINISTRATION.—The Secretary shall designate a dislocated worker office to coordinate the functions of the Secretary
under this title relating to employment and training activities for
dislocated workers, including activities carried out under the
national emergency grants.
(c) EMPLOYMENT AND TRAINING ASSISTANCE REQUIREMENTS.—
(1) GRANT RECIPIENT ELIGIBILITY.—
(A) APPLICATION.—To be eligible to receive a grant
under subsection (a)(1), an entity shall submit an application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.

Deadlines.

29 USC 2918.

112 STAT. 1036

Publication.

PUBLIC LAW 105–220—AUG. 7, 1998
(B) ELIGIBLE ENTITY.—In this paragraph, the term
‘‘entity’’ means a State, a local board, an entity described
in section 166(c), entities determined to be eligible by the
Governor of the State involved, and other entities that
demonstrate to the Secretary the capability to effectively
respond to the circumstances relating to particular dislocations.
(2) PARTICIPANT ELIGIBILITY.—
(A) IN GENERAL.—In order to be eligible to receive
employment and training assistance under a national emergency grant awarded pursuant to subsection (a)(1), an
individual shall be—
(i) a dislocated worker;
(ii) a civilian employee of the Department of
Defense or the Department of Energy employed at
a military installation that is being closed, or that
will undergo realignment, within the next 24 months
after the date of the determination of eligibility;
(iii) an individual who is employed in a nonmanagerial position with a Department of Defense contractor, who is determined by the Secretary of Defense
to be at-risk of termination from employment as a
result of reductions in defense expenditures, and whose
employer is converting operations from defense to nondefense applications in order to prevent worker layoffs;
or
(iv) a member of the Armed Forces who—
(I) was on active duty or full-time National
Guard duty;
(II)(aa) is involuntarily separated (as defined
in section 1141 of title 10, United States Code)
from active duty or full-time National Guard duty;
or
(bb) is separated from active duty or full-time
National Guard duty pursuant to a special separation benefits program under section 1174a of title
10, United States Code, or the voluntary separation incentive program under section 1175 of that
title;
(III) is not entitled to retired or retained pay
incident to the separation described in subclause
(II); and
(IV) applies for such employment and training
assistance before the end of the 180-day period
beginning on the date of that separation.
(B)
RETRAINING
ASSISTANCE.—The
individuals
described in subparagraph (A)(iii) shall be eligible for
retraining assistance to upgrade skills by obtaining marketable skills needed to support the conversion described in
subparagraph (A)(iii).
(C) ADDITIONAL REQUIREMENTS.—The Secretary shall
establish and publish additional requirements related to
eligibility for employment and training assistance under
the national emergency grants to ensure effective use of
the funds available for this purpose.
(D) DEFINITIONS.—In this paragraph, the terms ‘‘military institution’’ and ‘‘realignment’’ have the meanings

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1037

given the terms in section 2910 of the Defense Base Closure
and Realignment Act of 1990 (Public Law 101–510; 10
U.S.C. 2687 note).
(d) DISASTER RELIEF EMPLOYMENT ASSISTANCE REQUIREMENTS.—
(1) IN GENERAL.—Funds made available under subsection
(a)(2)—
(A) shall be used to provide disaster relief employment
on projects that provide food, clothing, shelter, and other
humanitarian assistance for disaster victims, and projects
regarding demolition, cleaning, repair, renovation, and
reconstruction of damaged and destroyed structures, facilities, and lands located within the disaster area;
(B) may be expended through public and private agencies and organizations engaged in such projects; and
(C) may be expended to provide employment and training activities.
(2) ELIGIBILITY.—An individual shall be eligible to be
offered disaster relief employment under subsection (a)(2) if
such individual is a dislocated worker, is a long-term
unemployed individual, or is temporarily or permanently laid
off as a consequence of the disaster.
(3) LIMITATIONS ON DISASTER RELIEF EMPLOYMENT.—No
individual shall be employed under subsection (a)(2) for more
than 6 months for work related to recovery from a single
natural disaster.
SEC. 174. AUTHORIZATION OF APPROPRIATIONS.

(a) NATIVE AMERICAN PROGRAMS; MIGRANT AND SEASONAL
FARMWORKER PROGRAMS; VETERANS’ WORKFORCE INVESTMENT
PROGRAMS.—
(1) IN GENERAL.—Subject to paragraph (2), there are
authorized to be appropriated to carry out sections 166 through
168 such sums as may be necessary for each of the fiscal
years 1999 through 2003.
(2) RESERVATIONS.—Of the amount appropriated pursuant
to the authorization of appropriations under paragraph (1) for
a fiscal year, the Secretary shall—
(A) reserve not less than $55,000,000 for carrying out
section 166;
(B) reserve not less than $70,000,000 for carrying out
section 167; and
(C) reserve not less than $7,300,000 for carrying out
section 168.
(b) TECHNICAL ASSISTANCE; DEMONSTRATION AND PILOT
PROJECTS; EVALUATIONS; INCENTIVE GRANTS.—
(1) IN GENERAL.—Subject to paragraph (2), there are
authorized to be appropriated to carry out sections 170 through
172 and section 503 such sums as may be necessary for each
of the fiscal years 1999 through 2003.
(2) RESERVATIONS.—Of the amount appropriated pursuant
to the authorization of appropriations under paragraph (1) for
a fiscal year, the Secretary shall—
(A)(i) for fiscal year 1999, reserve up to 40 percent
for carrying out section 170 (other than subsection (b)
of such section);

29 USC 2919.

112 STAT. 1038

PUBLIC LAW 105–220—AUG. 7, 1998
(ii) for fiscal year 2000, reserve up to 25 percent for
carrying out section 170 (other than subsection (b) of such
section); and
(iii) for each of the fiscal years 2001 through 2003,
reserve up to 20 percent for carrying out section 170 (other
than subsection (b) of such section);
(B)(i) for fiscal year 1999, reserve not less than 50
percent for carrying out section 171; and
(ii) for each of the fiscal years 2000 through 2003,
reserve not less than 45 percent for carrying out section
171;
(C)(i) for fiscal year 1999, reserve not less than 10
percent for carrying out section 172; and
(ii) for each of the fiscal years 2000 through 2003,
reserve not less than 10 percent for carrying out section
172; and
(D)(i) for fiscal year 1999, reserve no funds for carrying
out section 503;
(ii) for fiscal year 2000, reserve up to 20 percent for
carrying out section 503; and
(iii) for each of the fiscal years 2001 through 2003,
reserve up to 25 percent for carrying out section 503.

Subtitle E—Administration
29 USC 2931.

SEC. 181. REQUIREMENTS AND RESTRICTIONS.

(a) BENEFITS.—
(1) WAGES.—
(A) IN GENERAL.—Individuals in on-the-job training or
individuals employed in activities under this title shall
be compensated at the same rates, including periodic
increases, as trainees or employees who are similarly situated in similar occupations by the same employer and
who have similar training, experience, and skills, and such
rates shall be in accordance with applicable law, but in
no event less than the higher of the rate specified in
section 6(a)(1) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(1)) or the applicable State or local minimum wage law.
(B) RULE OF CONSTRUCTION.—The reference in
subparagraph (A) to section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1))—
(i) shall be deemed to be a reference to section
6(a)(3) of that Act for individuals in American Samoa;
and
(ii) shall not be applicable for individuals in other
territorial jurisdictions in which section 6 of the Fair
Labor Standards Act of 1938 does not apply.
(2) TREATMENT OF ALLOWANCES, EARNINGS, AND PAYMENTS.—Allowances, earnings, and payments to individuals
participating in programs under this title shall not be considered as income for the purposes of determining eligibility for
and the amount of income transfer and in-kind aid furnished
under any Federal or federally assisted program based on need,
other than as provided under the Social Security Act (42 U.S.C.
301 et seq.).

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112 STAT. 1039

(b) LABOR STANDARDS.—
(1) LIMITATIONS ON ACTIVITIES THAT IMPACT WAGES OF
EMPLOYEES.—No funds provided under this title shall be used
to pay the wages of incumbent employees during their participation in economic development activities provided through a
statewide workforce investment system.
(2) DISPLACEMENT.—
(A) PROHIBITION.—A participant in a program or activity authorized under this title (referred to in this section
as a ‘‘specified activity’’) shall not displace (including a
partial displacement, such as a reduction in the hours
of nonovertime work, wages, or employment benefits) any
currently employed employee (as of the date of the participation).
(B) PROHIBITION ON IMPAIRMENT OF CONTRACTS.—A
specified activity shall not impair an existing contract for
services or collective bargaining agreement, and no such
activity that would be inconsistent with the terms of a
collective bargaining agreement shall be undertaken without the written concurrence of the labor organization and
employer concerned.
(3) OTHER PROHIBITIONS.—A participant in a specified
activity shall not be employed in a job if—
(A) any other individual is on layoff from the same
or any substantially equivalent job;
(B) the employer has terminated the employment of
any regular employee or otherwise reduced the workforce
of the employer with the intention of filling the vacancy
so created with the participant; or
(C) the job is created in a promotional line that will
infringe in any way upon the promotional opportunities
of currently employed individuals (as of the date of the
participation).
(4) HEALTH AND SAFETY.—Health and safety standards
established under Federal and State law otherwise applicable
to working conditions of employees shall be equally applicable
to working conditions of participants engaged in specified activities. To the extent that a State workers’ compensation law
applies, workers’ compensation shall be provided to participants
on the same basis as the compensation is provided to other
individuals in the State in similar employment.
(5) EMPLOYMENT CONDITIONS.—Individuals in on-the-job
training or individuals employed in programs and activities
under this title, shall be provided benefits and working conditions at the same level and to the same extent as other trainees
or employees working a similar length of time and doing the
same type of work.
(6) OPPORTUNITY TO SUBMIT COMMENTS.—Interested members of the public, including representatives of businesses and
of labor organizations, shall be provided an opportunity to
submit comments to the Secretary with respect to programs
and activities proposed to be funded under subtitle B.
(7) NO IMPACT ON UNION ORGANIZING.—Each recipient of
funds under this title shall provide to the Secretary assurances
that none of such funds will be used to assist, promote, or
deter union organizing.
(c) GRIEVANCE PROCEDURE.—

112 STAT. 1040

Deadline.

PUBLIC LAW 105–220—AUG. 7, 1998
(1) IN GENERAL.—Each State and local area receiving an
allotment under this title shall establish and maintain a procedure for grievances or complaints alleging violations of the
requirements of this title from participants and other interested
or affected parties. Such procedure shall include an opportunity
for a hearing and be completed within 60 days after the filing
of the grievance or complaint.
(2) INVESTIGATION.—
(A) IN GENERAL.—The Secretary shall investigate an
allegation of a violation described in paragraph (1) if—
(i) a decision relating to such violation has not
been reached within 60 days after the date of the
filing of the grievance or complaint and either party
appeals to the Secretary; or
(ii) a decision relating to such violation has been
reached within such 60 days and the party to which
such decision is adverse appeals such decision to the
Secretary.
(B) ADDITIONAL REQUIREMENT.—The Secretary shall
make a final determination relating to an appeal made
under subparagraph (A) no later than 120 days after receiving such appeal.
(3) REMEDIES.—Remedies that may be imposed under this
section for a violation of any requirement of this title shall
be limited—
(A) to suspension or termination of payments under
this title;
(B) to prohibition of placement of a participant with
an employer that has violated any requirement under this
title;
(C) where applicable, to reinstatement of an employee,
payment of lost wages and benefits, and reestablishment
of other relevant terms, conditions, and privileges of
employment; and
(D) where appropriate, to other equitable relief.
(4) RULE OF CONSTRUCTION.—Nothing in paragraph (3)
shall be construed to prohibit a grievant or complainant from
pursuing a remedy authorized under another Federal, State,
or local law for a violation of this title.
(d) RELOCATION.—
(1) PROHIBITION ON USE OF FUNDS TO ENCOURAGE OR
INDUCE RELOCATION.—No funds provided under this title shall
be used, or proposed for use, to encourage or induce the relocation of a business or part of a business if such relocation
would result in a loss of employment for any employee of
such business at the original location and such original location
is within the United States.
(2) PROHIBITION ON USE OF FUNDS FOR CUSTOMIZED OR
SKILL TRAINING AND RELATED ACTIVITIES AFTER RELOCATION.—
No funds provided under this title for an employment and
training activity shall be used for customized or skill training,
on-the-job training, or company-specific assessments of job
applicants or employees, for any business or part of a business
that has relocated, until the date that is 120 days after the
date on which such business commences operations at the
new location, if the relocation of such business or part of a
business results in a loss of employment for any employee

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1041

of such business at the original location and such original
location is within the United States.
(3) REPAYMENT.—If the Secretary determines that a violation of paragraph (1) or (2) has occurred, the Secretary shall
require the State that has violated such paragraph to repay
to the United States an amount equal to the amount expended
in violation of such paragraph.
(e) LIMITATION ON USE OF FUNDS.—No funds available under
this title shall be used for employment generating activities, economic development activities, investment in revolving loan funds,
capitalization of businesses, investment in contract bidding resource
centers, and similar activities that are not directly related to training for eligible individuals under this title. No funds available
under subtitle B shall be used for foreign travel.
(f ) TESTING AND SANCTIONING FOR USE OF CONTROLLED SUBSTANCES.—
(1) IN GENERAL.—Notwithstanding any other provision of
law, a State shall not be prohibited by the Federal Government
from—
(A) testing participants in programs under subtitle B
for the use of controlled substances; and
(B) sanctioning such participants who test positive for
the use of such controlled substances.
(2) ADDITIONAL REQUIREMENTS.—
(A) PERIOD OF SANCTION.—In sanctioning participants
in programs under subtitle B who test positive for the
use of controlled substances—
(i) with respect to the first occurrence for which
a participant tests positive, a State may exclude the
participant from the program for a period not to exceed
6 months; and
(ii) with respect to the second occurrence and each
subsequent occurrence for which a participant tests
positive, a State may exclude the participant from
the program for a period not to exceed 2 years.
(B) APPEAL.—The testing of participants and the
imposition of sanctions under this subsection shall be subject to expeditious appeal in accordance with due process
procedures established by the State.
(C) PRIVACY.—A State shall establish procedures for
testing participants for the use of controlled substances
that ensure a maximum degree of privacy for the participants.
(4) FUNDING REQUIREMENT.—In testing and sanctioning of
participants for the use of controlled substances in accordance
with this subsection, the only Federal funds that a State may
use are the amounts made available for the administration
of statewide workforce investment activities under section
134(a)(3)(B).
SEC. 182. PROMPT ALLOCATION OF FUNDS.

(a) ALLOTMENTS BASED ON LATEST AVAILABLE DATA.—All allotments to States and grants to outlying areas under this title shall
be based on the latest available data and estimates satisfactory
to the Secretary. All data relating to disadvantaged adults and
disadvantaged youth shall be based on the most recent satisfactory
data from the Bureau of the Census.

Procedures.

29 USC 2932.

112 STAT. 1042

Deadline.

Deadline.

Deadline.

29 USC 2933.

PUBLIC LAW 105–220—AUG. 7, 1998

(b) PUBLICATION IN FEDERAL REGISTER RELATING TO FORMULA
FUNDS.—Whenever the Secretary allots funds required to be allotted
under this title, the Secretary shall publish in a timely fashion
in the Federal Register the proposed amount to be distributed
to each recipient of the funds.
(c) REQUIREMENT FOR FUNDS DISTRIBUTED BY FORMULA.—All
funds required to be allotted under section 127 or 132 shall be
allotted within 45 days after the date of enactment of the Act
appropriating the funds, except that, if such funds are appropriated
in advance as authorized by section 189(g), such funds shall be
allotted or allocated not later than the March 31 preceding the
program year for which such funds are to be available for obligation.
(d) PUBLICATION IN FEDERAL REGISTER RELATING TO DISCRETIONARY FUNDS.—Whenever the Secretary utilizes a formula to
allot or allocate funds made available for distribution at the Secretary’s discretion under this title, the Secretary shall, not later
than 30 days prior to such allotment or allocation, publish such
formula in the Federal Register for comments along with the rationale for the formula and the proposed amounts to be distributed
to each State and local area. After consideration of any comments
received, the Secretary shall publish final allotments and allocations
in the Federal Register.
(e) AVAILABILITY OF FUNDS.—Funds shall be made available
under sections 128 and 133 for a local area not later than 30
days after the date the funds are made available to the Governor
involved, under section 127 or 132 (as the case may be), or 7
days after the date the local plan for the area is approved, whichever
is later.
SEC. 183. MONITORING.

(a) IN GENERAL.—The Secretary is authorized to monitor all
recipients of financial assistance under this title to determine
whether the recipients are complying with the provisions of this
title, including the regulations issued under this title.
(b) INVESTIGATIONS.—The Secretary may investigate any matter
the Secretary determines to be necessary to determine the compliance of the recipients with this title, including the regulations
issued under this title. The investigations authorized by this subsection may include examining records (including making certified
copies of the records), questioning employees, and entering any
premises or onto any site in which any part of a program or
activity of such a recipient is conducted or in which any of the
records of the recipient are kept.
(c) ADDITIONAL REQUIREMENT.—For the purpose of any investigation or hearing conducted under this title by the Secretary,
the provisions of section 9 of the Federal Trade Commission Act
(15 U.S.C. 49) (relating to the attendance of witnesses and the
production of documents) apply to the Secretary, in the same manner and to the same extent as the provisions apply to the Federal
Trade Commission.
29 USC 2934.

SEC. 184. FISCAL CONTROLS; SANCTIONS.

(a) ESTABLISHMENT OF FISCAL CONTROLS BY STATES.—
(1) IN GENERAL.—Each State shall establish such fiscal
control and fund accounting procedures as may be necessary
to assure the proper disbursal of, and accounting for, Federal
funds allocated to local areas under subtitle B. Such procedures
shall ensure that all financial transactions carried out under

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1043

subtitle B are conducted and records maintained in accordance
with generally accepted accounting principles applicable in each
State.
(2) COST PRINCIPLES.—
(A) IN GENERAL.—Each State (including the Governor
of the State), local area (including the chief elected official
for the area), and provider receiving funds under this title
shall comply with the applicable uniform cost principles
included in the appropriate circulars of the Office of
Management and Budget for the type of entity receiving
the funds.
(B) EXCEPTION.—The funds made available to a State
for administration of statewide workforce investment activities in accordance with section 134(a)(3)(B) shall be allocable to the overall administration of workforce investment
activities, but need not be specifically allocable to—
(i) the administration of adult employment and
training activities;
(ii) the administration of dislocated worker employment and training activities; or
(iii) the administration of youth activities.
(3) UNIFORM ADMINISTRATIVE REQUIREMENTS.—
(A) IN GENERAL.—Each State (including the Governor
of the State), local area (including the chief elected official
for the area), and provider receiving funds under this title
shall comply with the appropriate uniform administrative
requirements for grants and agreements applicable for the
type of entity receiving the funds, as promulgated in circulars or rules of the Office of Management and Budget.
(B) ADDITIONAL REQUIREMENT.—Procurement transactions under this title between local boards and units
of State or local governments shall be conducted only on
a cost-reimbursable basis.
(4) MONITORING.—Each Governor of a State shall conduct
on an annual basis onsite monitoring of each local area within
the State to ensure compliance with the uniform administrative
requirements referred to in paragraph (3).
(5) ACTION BY GOVERNOR.—If the Governor determines that
a local area is not in compliance with the uniform administrative requirements referred to in paragraph (3), the Governor
shall—
(A) require corrective action to secure prompt compliance; and
(B) impose the sanctions provided under subsection
(b) in the event of failure to take the required corrective
action.
(6) CERTIFICATION.—The Governor shall, every 2 years,
certify to the Secretary that—
(A) the State has implemented the uniform administrative requirements referred to in paragraph (3);
(B) the State has monitored local areas to ensure
compliance with the uniform administrative requirements
as required under paragraph (4); and
(C) the State has taken appropriate action to secure
compliance pursuant to paragraph (5).

112 STAT. 1044

Deadline.

PUBLIC LAW 105–220—AUG. 7, 1998
(7) ACTION BY THE SECRETARY.—If the Secretary determines
that the Governor has not fulfilled the requirements of this
subsection, the Secretary shall—
(A) require corrective action to secure prompt compliance; and
(B) impose the sanctions provided under subsection
(e) in the event of failure of the Governor to take the
required appropriate action to secure compliance.
(b) SUBSTANTIAL VIOLATION.—
(1) ACTION BY GOVERNOR.—If, as a result of financial and
compliance audits or otherwise, the Governor determines that
there is a substantial violation of a specific provision of this
title, and corrective action has not been taken, the Governor
shall—
(A) issue a notice of intent to revoke approval of all
or part of the local plan affected; or
(B) impose a reorganization plan, which may include—
(i) decertifying the local board involved;
(ii) prohibiting the use of eligible providers;
(iii) selecting an alternative entity to administer
the program for the local area involved;
(iv) merging the local area into one or more other
local areas; or
(v) making other such changes as the Secretary
or Governor determines necessary to secure compliance.
(2) APPEAL.—
(A) IN GENERAL.—The actions taken by the Governor
pursuant to subparagraphs (A) and (B) of paragraph (1)
may be appealed to the Secretary and shall not become
effective until—
(i) the time for appeal has expired; or
(ii) the Secretary has issued a decision.
(B) ADDITIONAL REQUIREMENT.—The Secretary shall
make a final decision under subparagraph (A) not later
than 45 days after the receipt of the appeal.
(3) ACTION BY THE SECRETARY.—If the Governor fails to
promptly take the actions required under paragraph (1), the
Secretary shall take such actions.
(c) REPAYMENT OF CERTAIN AMOUNTS TO THE UNITED STATES.—
(1) IN GENERAL.—Every recipient of funds under this title
shall repay to the United States amounts found not to have
been expended in accordance with this title.
(2) OFFSET OF REPAYMENT.—If the Secretary determines
that a State has expended funds made available under this
title in a manner contrary to the requirements of this title,
the Secretary may offset repayment of such expenditures
against any other amount to which the State is or may be
entitled, except as provided under subsection (d)(1).
(3) REPAYMENT FROM DEDUCTION BY STATE.—If the Secretary requires a State to repay funds as a result of a determination that a local area of the State has expended funds
contrary to the requirements of this title, the Governor of
the State may use an amount deducted under paragraph (4)
to repay the funds, except as provided under subsection (e)(1).
(4) DEDUCTION BY STATE.—The Governor may deduct an
amount equal to the misexpenditure described in paragraph

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1045

(3) from subsequent program year allocations to the local area
from funds reserved for the administrative costs of the local
programs involved, as appropriate.
(5) LIMITATIONS.—A deduction made by a State as described
in paragraph (4) shall not be made until such time as the
Governor has taken appropriate corrective action to ensure
full compliance within such local area with regard to appropriate expenditures of funds under this title.
(d) REPAYMENT OF AMOUNTS.—
(1) IN GENERAL.—Each recipient of funds under this title
shall be liable to repay the amounts described in subsection
(c)(1), from funds other than funds received under this title,
upon a determination by the Secretary that the misexpenditure
of funds was due to willful disregard of the requirements of
this title, gross negligence, failure to observe accepted standards
of administration, or a pattern of misexpenditure as described
in paragraphs (2) and (3) of subsection (c). No such determination shall be made under this subsection or subsection (c)
until notice and opportunity for a fair hearing has been given
to the recipient.
(2) FACTORS IN IMPOSING SANCTIONS.—In determining
whether to impose any sanction authorized by this section
against a recipient for violations by a subgrantee or contractor
of such recipient under this title (including the regulations
issued under this title), the Secretary shall first determine
whether such recipient has adequately demonstrated that the
recipient has—
(A) established and adhered to an appropriate system
for the award and monitoring of grants and contracts with
subgrantees and contractors that contains acceptable standards for ensuring accountability;
(B) entered into a written grant agreement or contract
with such subgrantee or contractor that established clear
goals and obligations in unambiguous terms;
(C) acted with due diligence to monitor the
implementation of the grant agreement or contract, including the carrying out of the appropriate monitoring activities
(including audits) at reasonable intervals; and
(D) taken prompt and appropriate corrective action
upon becoming aware of any evidence of a violation of
this title, including regulations issued under this title, by
such subgrantee or contractor.
(3) WAIVER.—If the Secretary determines that the recipient
has demonstrated substantial compliance with the requirements of paragraph (2), the Secretary may waive the imposition
of sanctions authorized by this section upon such recipient.
The Secretary is authorized to impose any sanction consistent
with the provisions of this title and any applicable Federal
or State law directly against any subgrantee or contractor
for violation of this title, including regulations issued under
this title.
(e) IMMEDIATE TERMINATION OR SUSPENSION OF ASSISTANCE
IN EMERGENCY SITUATIONS.—In emergency situations, if the Secretary determines it is necessary to protect the integrity of the
funds or ensure the proper operation of the program or activity
involved, the Secretary may immediately terminate or suspend
financial assistance, in whole or in part, to the recipient if the

112 STAT. 1046

PUBLIC LAW 105–220—AUG. 7, 1998

recipient is given prompt notice and the opportunity for a subsequent hearing within 30 days after such termination or suspension.
The Secretary shall not delegate any of the functions or authority
specified in this subsection, other than to an officer whose appointment is required to be made by and with the advice and consent
of the Senate.
(f ) DISCRIMINATION AGAINST PARTICIPANTS.—If the Secretary
determines that any recipient under this title has discharged or
in any other manner discriminated against a participant or against
any individual in connection with the administration of the program
involved, or against any individual because such individual has
filed any complaint or instituted or caused to be instituted any
proceeding under or related to this title, or has testified or is
about to testify in any such proceeding or investigation under
or related to this title, or otherwise unlawfully denied to any individual a benefit to which that individual is entitled under the provisions of this title or the Secretary’s regulations, the Secretary
shall, within 30 days, take such action or order such corrective
measures, as necessary, with respect to the recipient or the
aggrieved individual, or both.
(g) REMEDIES.—The remedies described in this section shall
not be construed to be the exclusive remedies available for violations
described in this section.
29 USC 2935.

SEC. 185. REPORTS; RECORDKEEPING; INVESTIGATIONS.

(a) REPORTS.—
(1) IN GENERAL.—Recipients of funds under this title shall
keep records that are sufficient to permit the preparation of
reports required by this title and to permit the tracing of
funds to a level of expenditure adequate to ensure that the
funds have not been spent unlawfully.
(2) SUBMISSION TO THE SECRETARY.—Every such recipient
shall maintain such records and submit such reports, in such
form and containing such information, as the Secretary may
require regarding the performance of programs and activities
carried out under this title. Such records and reports shall
be submitted to the Secretary but shall not be required to
be submitted more than once each quarter unless specifically
requested by Congress or a committee of Congress, in which
case an estimate may be provided.
(3) MAINTENANCE OF STANDARDIZED RECORDS.—In order
to allow for the preparation of the reports required under
subsection (c), such recipients shall maintain standardized
records for all individual participants and provide to the Secretary a sufficient number of such records to provide for an
adequate analysis of the records.
(4) AVAILABILITY TO THE PUBLIC.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), records maintained by such recipients pursuant to
this subsection shall be made available to the public upon
request.
(B) EXCEPTION.—Subparagraph (A) shall not apply to—
(i) information, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy; and

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1047

(ii) trade secrets, or commercial or financial
information, that is obtained from a person and privileged or confidential.
(C) FEES TO RECOVER COSTS.—Such recipients may
charge fees sufficient to recover costs applicable to the
processing of requests for records under subparagraph (A).
(b) INVESTIGATIONS OF USE OF FUNDS.—
(1) IN GENERAL.—
(A) SECRETARY.—In order to evaluate compliance with
the provisions of this title, the Secretary shall conduct,
in several States, in each fiscal year, investigations of
the use of funds received by recipients under this title.
(B) COMPTROLLER GENERAL OF THE UNITED STATES.—
In order to ensure compliance with the provisions of this
title, the Comptroller General of the United States may
conduct investigations of the use of funds received under
this title by any recipient.
(2) PROHIBITION.—In conducting any investigation under
this title, the Secretary or the Comptroller General of the
United States may not request the compilation of any information that the recipient is not otherwise required to compile
and that is not readily available to such recipient.
(3) AUDITS.—
(A) IN GENERAL.—In carrying out any audit under this
title (other than any initial audit survey or any audit
investigating possible criminal or fraudulent conduct),
either directly or through grant or contract, the Secretary,
the Inspector General of the Department of Labor, or the
Comptroller General of the United States shall furnish
to the State, recipient, or other entity to be audited,
advance notification of the overall objectives and purposes
of the audit, and any extensive recordkeeping or data
requirements to be met, not later than 14 days (or as
soon as practicable), prior to the commencement of the
audit.
(B) NOTIFICATION REQUIREMENT.—If the scope, objectives, or purposes of the audit change substantially during
the course of the audit, the entity being audited shall
be notified of the change as soon as practicable.
(C) ADDITIONAL REQUIREMENT.—The reports on the
results of such audits shall cite the law, regulation, policy,
or other criteria applicable to any finding contained in
the reports.
(D) RULE OF CONSTRUCTION.—Nothing contained in
this title shall be construed so as to be inconsistent with
the Inspector General Act of 1978 (5 U.S.C. App.) or government auditing standards issued by the Comptroller General
of the United States.
(c) ACCESSIBILITY OF REPORTS.—Each State, each local board,
and each recipient (other than a subrecipient, subgrantee, or contractor of a recipient) receiving funds under this title—
(1) shall make readily accessible such reports concerning
its operations and expenditures as shall be prescribed by the
Secretary;
(2) shall prescribe and maintain comparable management
information systems, in accordance with guidelines that shall

Guidelines.

112 STAT. 1048

PUBLIC LAW 105–220—AUG. 7, 1998

be prescribed by the Secretary, designed to facilitate the uniform compilation, cross tabulation, and analysis of programmatic, participant, and financial data, on statewide, local
area, and other appropriate bases, necessary for reporting, monitoring, and evaluating purposes, including data necessary to
comply with section 188; and
(3) shall monitor the performance of providers in complying
with the terms of grants, contracts, or other agreements made
pursuant to this title.
(d) INFORMATION TO BE INCLUDED IN REPORTS.—
(1) IN GENERAL.—The reports required in subsection (c)
shall include information regarding programs and activities
carried out under this title pertaining to—
(A) the relevant demographic characteristics (including
race, ethnicity, sex, and age) and other related information
regarding participants;
(B) the programs and activities in which participants
are enrolled, and the length of time that participants are
engaged in such programs and activities;
(C) outcomes of the programs and activities for participants, including the occupations of participants, and placement for participants in nontraditional employment;
(D) specified costs of the programs and activities; and
(E) information necessary to prepare reports to comply
with section 188.
(2) ADDITIONAL REQUIREMENT.—The Secretary shall ensure
that all elements of the information required for the reports
described in paragraph (1) are defined and reported uniformly.
(e) QUARTERLY FINANCIAL REPORTS.—
(1) IN GENERAL.—Each local board in the State shall submit
quarterly financial reports to the Governor with respect to
programs and activities carried out under this title. Such
reports shall include information identifying all program and
activity costs by cost category in accordance with generally
accepted accounting principles and by year of the appropriation
involved.
(2) ADDITIONAL REQUIREMENT.—Each State shall submit
to the Secretary, on a quarterly basis, a summary of the reports
submitted to the Governor pursuant to paragraph (1).
(f ) MAINTENANCE OF ADDITIONAL RECORDS.—Each State and
local board shall maintain records with respect to programs and
activities carried out under this title that identify—
(1) any income or profits earned, including such income
or profits earned by subrecipients; and
(2) any costs incurred (such as stand-in costs) that are
otherwiseallowable except for funding limitations.
(g) COST CATEGORIES.—In requiring entities to maintain records
of costs by category under this title, the Secretary shall require
only that the costs be categorized as administrative or programmatic
costs.
29 USC 2936.

SEC. 186. ADMINISTRATIVE ADJUDICATION.

(a) IN GENERAL.—Whenever any applicant for financial assistance under this title is dissatisfied because the Secretary has made
a determination not to award financial assistance in whole or in
part to such applicant, the applicant may request a hearing before
an administrative law judge of the Department of Labor. A similar

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1049

hearing may also be requested by any recipient for whom a corrective action has been required or a sanction has been imposed
by the Secretary under section 184.
(b) APPEAL.—The decision of the administrative law judge shall
constitute final action by the Secretary unless, within 20 days
after receipt of the decision of the administrative law judge, a
party dissatisfied with the decision or any part of the decision
has filed exceptions with the Secretary specifically identifying the
procedure, fact, law, or policy to which exception is taken. Any
exception not specifically urged shall be deemed to have been
waived. After the 20-day period the decision of the administrative
law judge shall become the final decision of the Secretary unless
the Secretary, within 30 days after such filing, has notified the
parties that the case involved has been accepted for review.
(c) TIME LIMIT.—Any case accepted for review by the Secretary
under subsection (b) shall be decided within 180 days after such
acceptance. If the case is not decided within the 180-day period,
the decision of the administrative law judge shall become the final
decision of the Secretary at the end of the 180-day period.
(d) ADDITIONAL REQUIREMENT.—The provisions of section 187
shall apply to any final action of the Secretary under this section.
SEC. 187. JUDICIAL REVIEW.

Applicability.
29 USC 2937.

(a) REVIEW.—
(1) PETITION.—With respect to any final order by the Secretary under section 186 by which the Secretary awards,
declines to award, or only conditionally awards, financial assistance under his title, or any final order of the Secretary under
section 186 with respect to a corrective action or sanction
imposed under section 184, any party to a proceeding which
resulted in such final order may obtain review of such final
order in the United States Court of Appeals having jurisdiction
over the applicant or recipient of funds involved, by filing
a review petition within 30 days after the date of issuance
of such final order.
(2) ACTION ON PETITION.—The clerk of the court shall transmit a copy of the review petition to the Secretary who shall
file the record on which the final order was entered as provided
in section 2112 of title 28, United States Code. The filing
of a review petition shall not stay the order of the Secretary,
unless the court orders a stay. Petitions filed under this subsection shall be heard expeditiously, if possible within 10 days
after the date of filing of a reply to the petition.
(3) STANDARD AND SCOPE OF REVIEW.—No objection to the
order of the Secretary shall be considered by the court unless
the objection was specifically urged, in a timely manner, before
the Secretary. The review shall be limited to questions of law
and the findings of fact of the Secretary shall be conclusive
if supported by substantial evidence.
(b) JUDGMENT.—The court shall have jurisdiction to make and
enter a decree affirming, modifying, or setting aside the order
of the Secretary in whole or in part. The judgment of the court
regarding the order shall be final, subject to certiorari review by
the Supreme Court as provided in section 1254(1) of title 28, United
States Code.
SEC. 188. NONDISCRIMINATION.

(a) IN GENERAL.—

29 USC 2938.

112 STAT. 1050

Notification.

PUBLIC LAW 105–220—AUG. 7, 1998

(1) FEDERAL FINANCIAL ASSISTANCE.—For the purpose of
applying the prohibitions against discrimination on the basis
of age under the Age Discrimination Act of 1975 (42 U.S.C.
6101 et seq.), on the basis of disability under section 504
of the Rehabilitation Act of 1973 (29 U.S.C. 794), on the basis
of sex under title IX of the Education Amendments of 1972
(20 U.S.C. 1681 et seq.), or on the basis of race, color, or
national origin under title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.), programs and activities funded or
otherwise financially assisted in whole or in part under this
Act are considered to be programs and activities receiving Federal financial assistance.
(2) PROHIBITION OF DISCRIMINATION REGARDING PARTICIPATION, BENEFITS, AND EMPLOYMENT.—No individual shall be
excluded from participation in, denied the benefits of, subjected
to discrimination under, or denied employment in the administration of or in connection with, any such program or activity
because of race, color, religion, sex (except as otherwise permitted under title IX of the Education Amendments of 1972),
national origin, age, disability, or political affiliation or belief.
(3) PROHIBITION ON ASSISTANCE FOR FACILITIES FOR SECTARIAN INSTRUCTION OR RELIGIOUS WORSHIP.—Participants shall
not be employed under this title to carry out the construction,
operation, or maintenance of any part of any facility that is
used or to be used for sectarian instruction or as a place
for religious worship (except with respect to the maintenance
of a facility that is not primarily or inherently devoted to
sectarian instruction or religious worship, in a case in which
the organization operating the facility is part of a program
or activity providing services to participants).
(4) PROHIBITION ON DISCRIMINATION ON BASIS OF PARTICIPANT STATUS.—No person may discriminate against an individual who is a participant in a program or activity that receives
funds under this title, with respect to the terms and conditions
affecting, or rights provided to, the individual, solely because
of the status of the individual as a participant.
(5) PROHIBITION ON DISCRIMINATION AGAINST CERTAIN NONCITIZENS.—Participation in programs and activities or receiving
funds under this title shall be available to citizens and nationals
of the United States, lawfully admitted permanent resident
aliens, refugees, asylees, and parolees, and other immigrants
authorized by the Attorney General to work in the United
States.
(b) ACTION OF SECRETARY.—Whenever the Secretary finds that
a State or other recipient of funds under this title has failed
to comply with a provision of law referred to in subsection (a)(1),
or with paragraph (2), (3), (4), or (5) of subsection (a), including
an applicable regulation prescribed to carry out such provision
or paragraph, the Secretary shall notify such State or recipient
and shall request that the State or recipient comply. If within
a reasonable period of time, not to exceed 60 days, the State
or recipient fails or refuses to comply, the Secretary may—
(1) refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted;
or
(2) take such other action as may be provided by law.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1051

(c) ACTION OF ATTORNEY GENERAL.—When a matter is referred
to the Attorney General pursuant to subsection (b)(1), or whenever
the Attorney General has reason to believe that a State or other
recipient of funds under this title is engaged in a pattern or practice
of discrimination in violation of a provision of law referred to
in subsection (a)(1) or in violation of paragraph (2), (3), (4), or
(5) of subsection (a), the Attorney General may bring a civil action
in any appropriate district court of the United States for such
relief as may be appropriate, including injunctive relief.
(d) JOB CORPS.—For the purposes of this section, Job Corps
members shall be considered as the ultimate beneficiaries of Federal
financial assistance.
(e) REGULATIONS.—The Secretary shall issue regulations necessary to implement this section not later than one year after
the date of the enactment of the Workforce Investment Act of
1998. Such regulations shall adopt standards for determining
discrimination and procedures for enforcement that are consistent
with the Acts referred to in a subsection (a)(1), as well as procedures
to ensure that complaints filed under this section and such Acts
are processed in a manner that avoids duplication of effort.
SEC. 189. ADMINISTRATIVE PROVISIONS.

(a) IN GENERAL.—The Secretary may, in accordance with chapter 5 of title 5, United States Code, prescribe rules and regulations
to carry out this title only to the extent necessary to administer
and ensure compliance with the requirements of this title. Such
rules and regulations may include provisions making adjustments
authorized by section 204 of the Intergovernmental Cooperation
Act of 1968. All such rules and regulations shall be published
in the Federal Register at least 30 days prior to their effective
dates. Copies of each such rule or regulation shall be transmitted
to the appropriate committees of Congress on the date of such
publication and shall contain, with respect to each material provision of such rule or regulation, a citation to the particular substantive section of law that is the basis for the provision.
(b) ACQUISITION OF CERTAIN PROPERTY AND SERVICES.—The
Secretary is authorized, in carrying out this title, to accept, purchase, or lease in the name of the Department of Labor, and
employ or dispose of in furtherance of the purposes of this title,
any money or property, real, personal, or mixed, tangible or intangible, received by gift, devise, bequest, or otherwise, and to accept
voluntary and uncompensated services notwithstanding the provisions of section 1342 of title 31, United States Code.
(c) AUTHORITY TO ENTER INTO CERTAIN AGREEMENTS AND TO
MAKE CERTAIN EXPENDITURES.—The Secretary may make such
grants, enter into such contracts or agreements, establish such
procedures, and make such payments, in installments and in
advance or by way of reimbursement, or otherwise allocate or
expend such funds under this title, as may be necessary to carry
out this title, including making expenditures for construction,
repairs, and capital improvements, and including making necessary
adjustments in payments on account of over-payments or underpayments.
(d) ANNUAL REPORT.—The Secretary shall prepare and submit
to Congress an annual report regarding the programs and activities
carried out under this title. The Secretary shall include in such
report—

Deadline.

29 USC 2939.

Federal Register,
publication.

112 STAT. 1052

PUBLIC LAW 105–220—AUG. 7, 1998

(1) a summary of the achievements, failures, and problems
of the programs and activities in meeting the objectives of
this title;
(2) a summary of major findings from research, evaluations,
pilot projects, and experiments conducted under this title in
the fiscal year prior to the submission of the report;
(3) recommendations for modifications in the programs and
activities based on analysis of such findings; and
(4) such other recommendations for legislative or administrative action as the Secretary determines to be appropriate.
(e) UTILIZATION OF SERVICES AND FACILITIES.—The Secretary
is authorized, in carrying out this title, under the same procedures
as are applicable under subsection (c) or to the extent permitted
by law other than this title, to accept and use the services and
facilities of departments, agencies, and establishments of the United
States. The Secretary is also authorized, in carrying out this title,
to accept and use the services and facilities of the agencies of
any State or political subdivision of a State, with the consent
of the State or political subdivision.
(f ) OBLIGATIONAL AUTHORITY.—Notwithstanding any other
provision of this title, the Secretary shall have no authority to
enter into contracts, grant agreements, or other financial assistance
agreements under this title except to such extent and in such
amounts as are provided in advance in appropriations Acts.
(g) PROGRAM YEAR.—
(1) IN GENERAL.—
(A) PROGRAM YEAR.—Except as provided in subparagraph (B), appropriations for any fiscal year for programs
and activities carried out under this title shall be available
for obligation only on the basis of a program year. The
program year shall begin on July 1 in the fiscal year
for which the appropriation is made.
(B) YOUTH ACTIVITIES.—The Secretary may make available for obligation, beginning April 1 of any fiscal year,
funds appropriated for such fiscal year to carry out youth
activities under subtitle B.
(2) AVAILABILITY.—Funds obligated for any program year
for a program or activity carried out under this title may
be expended by each State receiving such funds during that
program year and the 2 succeeding program years. Funds obligated for any program year for a program or activity carried
out under section 171 or 172 shall remain available until
expended. Funds received by local areas from States under
this title during a program year may be expended during that
program year and the succeeding program year. No amount
of the funds described in this paragraph shall be deobligated
on account of a rate of expenditure that is consistent with
a State plan, an operating plan described in section 151, or
a plan, grant agreement, contract, application, or other agreement described in subtitle D, as appropriate.
(h) ENFORCEMENT OF MILITARY SELECTIVE SERVICE ACT.—The
Secretary shall ensure that each individual participating in any
program or activity established under this title, or receiving any
assistance or benefit under this title, has not violated section 3
of the Military Selective Service Act (50 U.S.C. App. 453) by not
presenting and submitting to registration as required pursuant
to such section. The Director of the Selective Service System shall

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1053

cooperate with the Secretary to enable the Secretary to carry out
this subsection.
(i) WAIVERS AND SPECIAL RULES.—
(1) EXISTING WAIVERS.—With respect to a State that has
been granted a waiver under the provisions relating to training
and employment services of the Department of Labor in title
I of the Departments of Labor, Health and Human Services,
and Education, and Related Agencies Appropriations Act, 1997
(Public Law 104–208; 110 Stat. 3009–234), the authority provided under such waiver shall continue in effect and apply,
and include a waiver of the related provisions of subtitle B
and this subtitle, for the duration of the initial waiver.
(2) SPECIAL RULE REGARDING DESIGNATED AREAS.—A State
that has enacted, not later than December 31, 1997, a State
law providing for the designation of service delivery areas for
the delivery of workforce investment activities, may use such
areas as local areas under this title, notwithstanding section
116.
(3) SPECIAL RULE REGARDING SANCTIONS.—A State that
enacts, not later than December 31, 1997, a State law providing
for the sanctioning of such service delivery areas for failure
to meet performance measures for workforce investment activities, may use the State law to sanction local areas for failure
to meet State performance measures under this title.
(4) GENERAL WAIVERS OF STATUTORY OR REGULATORY
REQUIREMENTS.—
(A) GENERAL AUTHORITY.—Notwithstanding any other
provision of law, the Secretary may waive for a State,
or a local area in a State, pursuant to a request submitted
by the Governor of the State (in consultation with appropriate local elected officials) that meets the requirements
of subparagraph (B)—
(i) any of the statutory or regulatory requirements
of subtitle B or this subtitle (except for requirements
relating to wage and labor standards, including nondisplacement protections, worker rights, participation
and protection of workers and participants, grievance
procedures and judicial review, nondiscrimination,
allocation of funds to local areas, eligibility of providers
or participants, the establishment and functions of
local areas and local boards, and procedures for review
and approval of plans); and
(ii) any of the statutory or regulatory requirements
of sections 8 through 10 of the Wagner-Peyser Act
(29 U.S.C. 49g through 49i) (excluding requirements
relating to the provision of services to unemployment
insurance claimants and veterans, and requirements
relating to universal access to basic labor exchange
services without cost to jobseekers).
(B) REQUESTS.—A Governor requesting a waiver under
subparagraph (A) shall submit a plan to the Secretary
to improve the statewide workforce investment system
that—
(i) identifies the statutory or regulatory requirements that are requested to be waived and the goals
that the State or local area in the State, as appropriate,
intends to achieve as a result of the waiver;

Deadline.

Deadline.

112 STAT. 1054

PUBLIC LAW 105–220—AUG. 7, 1998
(ii) describes the actions that the State or local
area, as appropriate, has undertaken to remove State
or local statutory or regulatory barriers;
(iii) describes the goals of the waiver and the
expected programmatic outcomes if the request is
granted;
(iv) describes the individuals impacted by the
waiver; and
(v) describes the process used to monitor the
progress in implementing such a waiver, and the process by which notice and an opportunity to comment
on such request has been provided to the local board.
(C) CONDITIONS.—Not later than 90 days after the
date of the original submission of a request for a waiver
under subparagraph (A), the Secretary shall provide a
waiver under this paragraph if and only to the extent
that—
(i) the Secretary determines that the requirements
requested to be waived impede the ability of the State
or local area, as appropriate, to implement the plan
described in subparagraph (B); and
(ii) the State has executed a memorandum of
understanding with the Secretary requiring such State
to meet, or ensure that the local area meets, agreedupon outcomes and to implement other appropriate
measures to ensure accountability.

Effective date.
29 USC 2940.

SEC. 190. REFERENCE.

29 USC 2941.

SEC. 191. STATE LEGISLATIVE AUTHORITY.

Effective on the date of the enactment of the Workforce Investment Act of 1998, all references in any other provision of law
(other than section 665 of title 18, United States Code) to the
Comprehensive Employment and Training Act, or to the Job Training Partnership Act, as the case may be, shall be deemed to refer
to the ‘‘Workforce Investment Act of 1998.’’.
(a) AUTHORITY OF STATE LEGISLATURE.—Nothing in this title
shall be interpreted to preclude the enactment of State legislation
providing for the implementation, consistent with the provisions
of this title, of the activities assisted under this title. Any funds
received by a State under this title shall be subject to appropriation
by the State legislature, consistent with the terms and conditions
required under this title.
(b) INTERSTATE COMPACTS AND COOPERATIVE AGREEMENTS.—
In the event that compliance with provisions of this title would
be enhanced by compacts and cooperative agreements between
States, the consent of Congress is given to States to enter into
such compacts and agreements to facilitate such compliance, subject
to the approval of the Secretary.

29 USC 2942.

SEC. 192. WORKFORCE FLEXIBILITY PLANS.

(a) PLANS.—A State may submit to the Secretary, and the
Secretary may approve, a workforce flexibility plan under which
the State is authorized to waive, in accordance with the plan—
(1) any of the statutory or regulatory requirements
applicable under this title to local areas, pursuant to applications for such waivers from the local areas, except for requirements relating to the basic purposes of this title, wage and

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1055

labor standards, grievance procedures and judicial review, nondiscrimination, eligibility of participants, allocation of funds
to local areas, establishment and functions of local areas and
local boards, review and approval of local plans, and worker
rights, participation, and protection;
(2) any of the statutory or regulatory requirements
applicable under sections 8 through 10 of the Wagner-Peyser
Act (29 U.S.C. 49g through 49i), to the State, except for requirements relating to the provision of services to unemployment
insurance claimants and veterans, and to universal access to
basic labor exchange services without cost to jobseekers; and
(3) any of the statutory or regulatory requirements
applicable under the Older Americans Act of 1965 (42 U.S.C.
3001 et seq.), to State agencies on aging with respect to activities carried out using funds allotted under section 506(a)(3)
of such Act (42 U.S.C. 3056d(a)(3)), except for requirements
relating to the basic purposes of such Act, wage and labor
standards, eligibility of participants in the activities, and standards for agreements.
(b) CONTENT OF PLANS.—A workforce flexibility plan implemented by a State under subsection (a) shall include descriptions
of—
(1)(A) the process by which local areas in the State may
submit and obtain approval by the State of applications for
waivers of requirements applicable under this title; and
(B) the requirements described in subparagraph (A) that
are likely to be waived by the State under the plan;
(2) the requirements applicable under sections 8 through
10 of the Wagner-Peyser Act that are proposed to be waived,
if any;
(3) the requirements applicable under the Older Americans
Act of 1965 that are proposed to be waived, if any;
(4) the outcomes to be achieved by the waivers described
in paragraphs (1) through (3); and
(5) other measures to be taken to ensure appropriate
accountability for Federal funds in connection with the waivers.
(c) PERIODS.—The Secretary may approve a workforce flexibility
plan for a period of not more than 5 years.
(d) OPPORTUNITY FOR PUBLIC COMMENTS.—Prior to submitting
a workforce flexibility plan to the Secretary for approval, the State
shall provide to all interested parties and to the general public
adequate notice and a reasonable opportunity for comment on the
waiver requests proposed to be implemented pursuant to such plan.
SEC. 193. USE OF CERTAIN REAL PROPERTY.

(a) IN GENERAL.—Notwithstanding any other provision of law,
the Governor may authorize a public agency to make available,
for the use of a one-stop service delivery system within the State
which is carried out by a consortium of entities that includes
the public agency, real property in which, as of the date of the
enactment of the Workforce Investment Act of 1998, the Federal
Government has acquired equity through the use of funds provided
under title III of the Social Security Act (42 U.S.C. 501 et seq.),
section 903(c) of such Act (42 U.S.C. 1103(c)), or the WagnerPeyser Act (29 U.S.C. 49 et seq.).
(b) USE OF FUNDS.—Subsequent to the commencement of the
use of the property described in subsection (a) for the functions

29 USC 2943.

112 STAT. 1056

PUBLIC LAW 105–220—AUG. 7, 1998

of a one-stop service delivery system, funds provided under the
provisions of law described in subsection (a) may only be used
to acquire further equity in such property, or to pay operating
and maintenance expenses relating to such property in proportion
to the extent of the use of such property attributable to the activities
authorized under such provisions of law.
29 USC 2944.

SEC. 194. CONTINUATION OF STATE ACTIVITIES AND POLICIES.

(a) IN GENERAL.—Notwithstanding any other provision of this
title, the Secretary may not deny approval of a State plan for
a covered State, or an application of a covered State for financial
assistance, under this title or find a covered State (including a
State board or Governor), or a local area (including a local board
or chief elected official) in a covered State, in violation of a provision
of this title, on the basis that—
(1)(A) the State proposes to allocate or disburse, allocates,
or disburses, within the State, funds made available to the
State under section 127 or 132 in accordance with the allocation
formula for the type of activities involved, or in accordance
with a disbursal procedure or process, used by the State under
prior consistent State laws; or
(B) a local board in the State proposes to disburse, or
disburses, within the local area, funds made available to a
State under section 127 or 132 in accordance with a disbursal
procedure or process used by a private industry council under
prior consistent State law;
(2) the State proposes to carry out or carries out a State
procedure through which local areas use, as fiscal agents for
funds made available to the State under section 127 or 132
and allocated within the State, fiscal agents selected in accordance with a process established under prior consistent State
laws;
(3) the State proposes to carry out or carries out a State
procedure through which the local board in the State (or the
local boards, the chief elected officials in the State, and the
Governor) designate or select the one-stop partners and onestop operators of the statewide system in the State under
prior consistent State laws, in lieu of making the designation,
or certification described in section 121 (regardless of the date
the one-stop delivery systems involved have been established);
(4) the State proposes to carry out or carries out a State
procedure through which the persons responsible for selecting
eligible providers for purposes of subtitle B are permitted to
determine that a provider shall not be selected to provide
both intake services under section 134(d)(2) and training services under section 134(d)(4), under prior consistent State laws;
(5) the State proposes to designate or designates a State
board, or proposes to assign or assigns functions and roles
of the State board (including determining the time periods
for development and submission of a State plan required under
section 112), for purposes of subtitle B in accordance with
prior consistent State laws; or
(6) a local board in the State proposes to use or carry
out, uses, or carries out a local plan (including assigning functions and roles of the local board) for purposes of subtitle
B in accordance with the authorities and requirements

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1057

applicable to local plans and private industry councils under
prior consistent State laws.
(b) DEFINITION.—In this section:
(1) COVERED STATE.—The term ‘‘covered State’’ means a
State that enacted State laws described in paragraph (2).
(2) PRIOR CONSISTENT STATE LAWS.—The term ‘‘prior
consistent State laws’’ means State laws, not inconsistent with
the Job Training Partnership Act or any other applicable Federal law, that took effect on September 1, 1993, September
1, 1995, and September 1, 1997.
SEC. 195. GENERAL PROGRAM REQUIREMENTS.

Except as otherwise provided in this title, the following conditions are applicable to all programs under this title:
(1) Each program under this title shall provide employment
and training opportunities to those who can benefit from, and
who are most in need of, such opportunities. In addition, efforts
shall be made to develop programs which contribute to occupational development, upward mobility, development of new
careers, and opportunities for nontraditional employment.
(2) Funds provided under this title shall only be used
for activities that are in addition to those that would otherwise
be available in the local area in the absence of such funds.
(3)(A) Any local area may enter into an agreement with
another local area (including a local area that is a city or
county within the same labor market) to pay or share the
cost of educating, training, or placing individuals participating
in programs assisted under this title, including the provision
of supportive services.
(B) Such agreement shall be approved by each local board
providing guidance to the local area and shall be described
in the local plan under section 118.
(4) On-the-job training contracts under this title shall not
be entered into with employers who have received payments
under previous contracts and have exhibited a pattern of failing
to provide on-the-job training participants with continued longterm employment as regular employees with wages and
employment benefits (including health benefits) and working
conditions at the same level and to the same extent as other
employees working a similar length of time and doing the
same type of work.
(5) No person or organization may charge an individual
a fee for the placement or referral of the individual in or
to a workforce investment activity under this title.
(6) The Secretary shall not provide financial assistance
for any program under this title that involves political activities.
(7)(A) Income under any program administered by a public
or private nonprofit entity may be retained by such entity
only if such income is used to continue to carry out the program.
(B) Income subject to the requirements of subparagraph
(A) shall include—
(i) receipts from goods or services (including conferences) provided as a result of activities funded under
this title;
(ii) funds provided to a service provider under this
title that are in excess of the costs associated with the
services provided; and

29 USC 2945.

112 STAT. 1058

Notification.

PUBLIC LAW 105–220—AUG. 7, 1998
(iii) interest income earned on funds received under
this title.
(C) For purposes of this paragraph, each entity receiving
financial assistance under this title shall maintain records sufficient to determine the amount of such income received and
the purposes for which such income is expended.
(8)(A) The Secretary shall notify the Governor and the
appropriate local board and chief elected official of, and consult
with the Governor and such board and official concerning,
any activity to be funded by the Secretary under this title
within the corresponding State or local area.
(B) The Governor shall notify the appropriate local board
and chief elected official of, and consult with such board and
official concerning, any activity to be funded by the Governor
under this title within the corresponding local area.
(9)(A) All education programs for youth supported with
funds provided under chapter 4 of subtitle B shall be consistent
with applicable State and local educational standards.
(B) Standards and procedures with respect to awarding
academic credit and certifying educational attainment in programs conducted under such chapter shall be consistent with
the requirements of applicable State and local law, including
regulation.
(10) No funds available under this title may be used for
public service employment except as specifically authorized
under this title.
(11) The Federal requirements governing the title, use,
and disposition of real property, equipment, and supplies purchased with funds provided under this title shall be the Federal
requirements generally applicable to Federal grants to States
and local governments.
(12) Nothing in this title shall be construed to provide
an individual with an entitlement to a service under this title.
(13) Services, facilities, or equipment funded under this
title may be used, as appropriate, on a fee-for-service basis,
by employers in a local area in order to provide employment
and training activities to incumbent workers—
(A) when such services, facilities, or equipment are
not in use for the provision of services for eligible participants under this title;
(B) if such use for incumbent workers would not have
an adverse affect on the provision of services to eligible
participants under this title; and
(C) if the income derived from such fees is used to
carry out the programs authorized under this title.

Subtitle F—Repeals and Conforming
Amendments
SEC. 199. REPEALS.

(a) GENERAL IMMEDIATE REPEALS.—The following provisions
are repealed:
(1) Section 204 of the Immigration Reform and Control
Act of 1986 (8 U.S.C. 1255a note).
(2) Title II of Public Law 95–250 (92 Stat. 172).

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1059

(3) The Displaced Homemakers Self-Sufficiency Assistance
Act (29 U.S.C. 2301 et seq.).
(4) Section 211 of the Appalachian Regional Development
Act of 1965 (40 U.S.C. App. 211).
(5) Subtitle C of title VII of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11441 et seq.), except section 738 of such title (42 U.S.C. 11448).
(6) Subchapter I of chapter 421 of title 49, United States
Code.
(b) SUBSEQUENT REPEALS.—The following provisions are
repealed:
(1) Title VII of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11421 et seq.), except subtitle B and section
738 of such title (42 U.S.C. 11431 et seq. and 11448).
(2) The Job Training Partnership Act (29 U.S.C. 1501 et
seq.).
(c) EFFECTIVE DATES.—
(1) IMMEDIATE REPEALS.—The repeals made by subsection
(a) shall take effect on the date of enactment of this Act.
(2) SUBSEQUENT REPEALS.—
(A) STEWART B. MCKINNEY HOMELESS ASSISTANCE
ACT.—The repeal made by subsection (b)(1) shall take effect
on July 1, 1999.
(B) JOB TRAINING PARTNERSHIP ACT.—The repeal made
by subsection (b)(2) shall take effect on July 1, 2000.
SEC. 199A. CONFORMING AMENDMENTS.

(a) PREPARATION.—After consultation with the appropriate
committees of Congress and the Director of the Office of Management and Budget, the Secretary shall prepare recommended legislation containing technical and conforming amendments to reflect
the changes made by this subtitle.
(b) SUBMISSION TO CONGRESS.—Not later than 6 months after
the date of enactment of this Act, the Secretary shall submit to
Congress the recommended legislation referred to under subsection
(a).
(c) REFERENCES.—All references in any other provision of law
to a provision of the Comprehensive Employment and Training
Act, or of the Job Training Partnership Act, as the case may
be, shall be deemed to refer to the corresponding provision of
this title.

TITLE II—ADULT EDUCATION AND
LITERACY
SEC. 201. SHORT TITLE.

This title may be cited as the ‘‘Adult Education and Family
Literacy Act’’.
SEC. 202. PURPOSE.

It is the purpose of this title to create a partnership among
the Federal Government, States, and localities to provide, on a
voluntary basis, adult education and literacy services, in order
to—
(1) assist adults to become literate and obtain the knowledge and skills necessary for employment and self-sufficiency;

49 USC 42101 et
seq.

29 USC 2301
note.
42 USC 11421
note.
29 USC 1501
note.
29 USC 2940
note.

Deadline.

Adult Education
and Family
Literacy Act.
Intergovernmental
relations.
20 USC 9201
note.
20 USC 9201.

112 STAT. 1060

PUBLIC LAW 105–220—AUG. 7, 1998
(2) assist adults who are parents to obtain the educational
skills necessary to become full partners in the educational
development of their children; and
(3) assist adults in the completion of a secondary school
education.

20 USC 9202.

SEC. 203. DEFINITIONS.

In this subtitle:
(1) ADULT EDUCATION.—The term ‘‘adult education’’ means
services or instruction below the postsecondary level for individuals—
(A) who have attained 16 years of age;
(B) who are not enrolled or required to be enrolled
in secondary school under State law; and
(C) who—
(i) lack sufficient mastery of basic educational
skills to enable the individuals to function effectively
in society;
(ii) do not have a secondary school diploma or
its recognized equivalent, and have not achieved an
equivalent level of education; or
(iii) are unable to speak, read, or write the English
language.
(2) ADULT EDUCATION AND LITERACY ACTIVITIES.—The term
‘‘adult education and literacy activities’’ means activities
described in section 231(b).
(3) EDUCATIONAL SERVICE AGENCY.—The term ‘‘educational
service agency’’ means a regional public multiservice agency
authorized by State statute to develop and manage a service
or program, and to provide the service or program to a local
educational agency.
(4) ELIGIBLE AGENCY.—The term ‘‘eligible agency’’ means
the sole entity or agency in a State or an outlying area responsible for administering or supervising policy for adult education
and literacy in the State or outlying area, respectively, consistent with the law of the State or outlying area, respectively.
(5) ELIGIBLE PROVIDER.—The term ‘‘eligible provider’’
means—
(A) a local educational agency;
(B) a community-based organization of demonstrated
effectiveness;
(C) a volunteer literacy organization of demonstrated
effectiveness;
(D) an institution of higher education;
(E) a public or private nonprofit agency;
(F) a library;
(G) a public housing authority;
(H) a nonprofit institution that is not described in
any of subparagraphs (A) through (G) and has the ability
to provide literacy services to adults and families; and
(I) a consortium of the agencies, organizations, institutions, libraries, or authorities described in any of subparagraphs (A) through (H).
(6) ENGLISH LITERACY PROGRAM.—The term ‘‘English literacy program’’ means a program of instruction designed to
help individuals of limited English proficiency achieve competence in the English language.

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112 STAT. 1061

(7) FAMILY LITERACY SERVICES.—The term ‘‘family literacy
services’’ means services that are of sufficient intensity in terms
of hours, and of sufficient duration, to make sustainable
changes in a family, and that integrate all of the following
activities:
(A) Interactive literacy activities between parents and
their children.
(B) Training for parents regarding how to be the primary teacher for their children and full partners in the
education of their children.
(C) Parent literacy training that leads to economic
self-sufficiency.
(D) An age-appropriate education to prepare children
for success in school and life experiences.
(8) GOVERNOR.—The term ‘‘Governor’’ means the chief
executive officer of a State or outlying area.
(9) INDIVIDUAL WITH A DISABILITY.—
(A) IN GENERAL.—The term ‘‘individual with a disability’’ means an individual with any disability (as defined
in section 3 of the Americans with Disabilities Act of 1990
(42 U.S.C. 12102)).
(B) INDIVIDUALS WITH DISABILITIES.—The term
‘‘individuals with disabilities’’ means more than one individual with a disability.
(10) INDIVIDUAL OF LIMITED ENGLISH PROFICIENCY.—The
term ‘‘individual of limited English proficiency’’ means an adult
or out-of-school youth who has limited ability in speaking,
reading, writing, or understanding the English language, and—
(A) whose native language is a language other than
English; or
(B) who lives in a family or community environment
where a language other than English is the dominant language.
(11) INSTITUTION OF HIGHER EDUCATION.—The term
‘‘institution of higher education’’ has the meaning given the
term in section 1201 of the Higher Education Act of 1965
(20 U.S.C. 1141).
(12) LITERACY.—The term ‘‘literacy’’ means an individual’s
ability to read, write, and speak in English, compute, and
solve problems, at levels of proficiency necessary to function
on the job, in the family of the individual, and in society.
(13) LOCAL EDUCATIONAL AGENCY.—The term ‘‘local educational agency’’ has the meaning given the term in section
14101 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 8801).
(14) OUTLYING AREA.—The term ‘‘outlying area’’ has the
meaning given the term in section 101.
(15) POSTSECONDARY EDUCATIONAL INSTITUTION.—The term
‘‘postsecondary educational institution’’ means—
(A) an institution of higher education that provides
not less than a 2-year program of instruction that is acceptable for credit toward a bachelor’s degree;
(B) a tribally controlled community college; or
(C) a nonprofit educational institution offering certificate or apprenticeship programs at the postsecondary level.
(16) SECRETARY.—The term ‘‘Secretary’’ means the
Secretary of Education.

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PUBLIC LAW 105–220—AUG. 7, 1998
(17) STATE.—The term ‘‘State’’ means each of the several
States of the United States, the District of Columbia, and
the Commonwealth of Puerto Rico.
(18) WORKPLACE LITERACY SERVICES.—The term ‘‘workplace
literacy services’’ means literacy services that are offered for
the purpose of improving the productivity of the workforce
through the improvement of literacy skills.

20 USC 9203.

SEC. 204. HOME SCHOOLS.

Nothing in this subtitle shall be construed to affect home
schools, or to compel a parent engaged in home schooling to participate in an English literacy program, family literacy services, or
adult education.
20 USC 9204.

SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to carry out this subtitle
such sums as may be necessary for each of the fiscal years 1999
through 2003.

Subtitle A—Adult Education and Literacy
Programs
CHAPTER 1—FEDERAL PROVISIONS
20 USC 9211.

SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES;
ALLOTMENTS.

(a) RESERVATION OF FUNDS.—From the sum appropriated under
section 205 for a fiscal year, the Secretary—
(1) shall reserve 1.5 percent to carry out section 242, except
that the amount so reserved shall not exceed $8,000,000;
(2) shall reserve 1.5 percent to carry out section 243, except
that the amount so reserved shall not exceed $8,000,000; and
(3) shall make available, to the Secretary of Labor, 1.72
percent for incentive grants under section 503.
(b) GRANTS TO ELIGIBLE AGENCIES.—
(1) IN GENERAL.—From the sum appropriated under section
205 and not reserved under subsection (a) for a fiscal year,
the Secretary shall award a grant to each eligible agency having
a State plan approved under section 224 in an amount equal
to the sum of the initial allotment under subsection (c)(1)
and the additional allotment under subsection (c)(2) for the
eligible agency for the fiscal year, subject to subsections (f )
and (g), to enable the eligible agency to carry out the activities
assisted under this subtitle.
(2) PURPOSE OF GRANTS.—The Secretary may award a grant
under paragraph (1) only if the eligible entity involved agrees
to expend the grant for adult education and literacy activities
in accordance with the provisions of this subtitle.
(c) ALLOTMENTS.—
(1) INITIAL ALLOTMENTS.—From the sum appropriated
under section 205 and not reserved under subsection (a) for
a fiscal year, the Secretary shall allot to each eligible agency
having a State plan approved under section 224(f )—
(A) $100,000, in the case of an eligible agency serving
an outlying area; and
(B) $250,000, in the case of any other eligible agency.

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112 STAT. 1063

(2) ADDITIONAL ALLOTMENTS.—From the sum appropriated
under section 205, not reserved under subsection (a), and not
allotted under paragraph (1), for a fiscal year, the Secretary
shall allot to each eligible agency that receives an initial allotment under paragraph (1) an additional amount that bears
the same relationship to such sum as the number of qualifying
adults in the State or outlying area served by the eligible
agency bears to the number of such adults in all States and
outlying areas.
(d) QUALIFYING ADULT.—For the purpose of subsection (c)(2),
the term ‘‘qualifying adult’’ means an adult who—
(1) is at least 16 years of age, but less than 61 years
of age;
(2) is beyond the age of compulsory school attendance under
the law of the State or outlying area;
(3) does not have a secondary school diploma or its recognized equivalent; and
(4) is not enrolled in secondary school.
(e) SPECIAL RULE.—
(1) IN GENERAL.—From amounts made available under subsection (c) for the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau, the
Secretary shall award grants to Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, the Republic
of the Marshall Islands, the Federated States of Micronesia,
or the Republic of Palau to carry out activities described in
this subtitle in accordance with the provisions of this subtitle
that the Secretary determines are not inconsistent with this
subsection.
(2) AWARD BASIS.—The Secretary shall award grants pursuant to paragraph (1) on a competitive basis and pursuant
to recommendations from the Pacific Region Educational Laboratory in Honolulu, Hawaii.
(3) TERMINATION OF ELIGIBILITY.—Notwithstanding any
other provision of law, the Republic of the Marshall Islands,
the Federated States of Micronesia, and the Republic of Palau
shall not receive any funds under this subtitle for any fiscal
year that begins after September 30, 2001.
(4) ADMINISTRATIVE COSTS.—The Secretary may provide
not more than 5 percent of the funds made available for grants
under this subsection to pay the administrative costs of the
Pacific Region Educational Laboratory regarding activities
assisted under this subsection.
(f ) HOLD-HARMLESS.—
(1) IN GENERAL.—Notwithstanding subsection (c)—
(A) for fiscal year 1999, no eligible agency shall receive
an allotment under this subtitle that is less than 90 percent
of the payments made to the State or outlying area of
the eligible agency for fiscal year 1998 for programs for
which funds were authorized to be appropriated under
section 313 of the Adult Education Act (as such Act was
in effect on the day before the date of the enactment
of the Workforce Investment Act of 1998); and
(B) for fiscal year 2000 and each succeeding fiscal
year, no eligible agency shall receive an allotment under
this subtitle that is less than 90 percent of the allotment

112 STAT. 1064

PUBLIC LAW 105–220—AUG. 7, 1998

the eligible agency received for the preceding fiscal year
under this subtitle.
(2) RATABLE REDUCTION.—If for any fiscal year the amount
available for allotment under this subtitle is insufficient to
satisfy the provisions of paragraph (1), the Secretary shall
ratably reduce the payments to all eligible agencies, as necessary.
(g) REALLOTMENT.—The portion of any eligible agency’s allotment under this subtitle for a fiscal year that the Secretary determines will not be required for the period such allotment is available
for carrying out activities under this subtitle, shall be available
for reallotment from time to time, on such dates during such period
as the Secretary shall fix, to other eligible agencies in proportion
to the original allotments to such agencies under this subtitle
for such year.
20 USC 9212.

SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.

(a) PURPOSE.—The purpose of this section is to establish a
comprehensive performance accountability system, comprised of the
activities described in this section, to assess the effectiveness of
eligible agencies in achieving continuous improvement of adult education and literacy activities funded under this subtitle, in order
to optimize the return on investment of Federal funds in adult
education and literacy activities.
(b) ELIGIBLE AGENCY PERFORMANCE MEASURES.—
(1) IN GENERAL.—For each eligible agency, the eligible
agency performance measures shall consist of—
(A)(i) the core indicators of performance described in
paragraph (2)(A); and
(ii) additional indicators of performance (if any) identified by the eligible agency under paragraph (2)(B); and
(B) an eligible agency adjusted level of performance
for each indicator described in subparagraph (A).
(2) INDICATORS OF PERFORMANCE.—
(A) CORE INDICATORS OF PERFORMANCE.—The core
indicators of performance shall include the following:
(i) Demonstrated improvements in literacy skill
levels in reading, writing, and speaking the English
language, numeracy, problem solving, English language acquisition, and other literacy skills.
(ii) Placement in, retention in, or completion of,
postsecondary education, training, unsubsidized
employment or career advancement.
(iii) Receipt of a secondary school diploma or its
recognized equivalent.
(B) ADDITIONAL INDICATORS.—An eligible agency may
identify in the State plan additional indicators for adult
education and literacy activities authorized under this subtitle.
(3) LEVELS OF PERFORMANCE.—
(A) ELIGIBLE AGENCY ADJUSTED LEVELS OF PERFORMANCE FOR CORE INDICATORS.—
(i) IN GENERAL.—For each eligible agency submitting a State plan, there shall be established, in accordance with this subparagraph, levels of performance
for each of the core indicators of performance described
in paragraph (2)(A) for adult education and literacy

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1065

activities authorized under this subtitle. The levels
of performance established under this subparagraph
shall, at a minimum—
(I) be expressed in an objective, quantifiable,
and measurable form; and
(II) show the progress of the eligible agency
toward continuously improving in performance.
(ii) IDENTIFICATION IN STATE PLAN.—Each eligible
agency shall identify, in the State plan submitted
under section 224, expected levels of performance for
each of the core indicators of performance for the first
3 program years covered by the State plan.
(iii) AGREEMENT ON ELIGIBLE AGENCY ADJUSTED
LEVELS OF PERFORMANCE FOR FIRST 3 YEARS.—In order
to ensure an optimal return on the investment of Federal funds in adult education and literacy activities
authorized under this subtitle, the Secretary and each
eligible agency shall reach agreement on levels of
performance for each of the core indicators of performance, for the first 3 program years covered by the
State plan, taking into account the levels identified
in the State plan under clause (ii) and the factors
described in clause (iv). The levels agreed to under
this clause shall be considered to be the eligible agency
adjusted levels of performance for the eligible agency
for such years and shall be incorporated into the State
plan prior to the approval of such plan.
(iv) FACTORS.—The agreement described in clause
(iii) or (v) shall take into account—
(I) how the levels involved compare with the
eligible agency adjusted levels of performance
established for other eligible agencies, taking into
account factors including the characteristics of
participants when the participants entered the program, and the services or instruction to be provided; and
(II) the extent to which such levels involved
promote continuous improvement in performance
on the performance measures by such eligible
agency and ensure optimal return on the investment of Federal funds.
(v) AGREEMENT ON ELIGIBLE AGENCY ADJUSTED
LEVELS OF PERFORMANCE FOR 4TH AND 5TH YEARS.—
Prior to the fourth program year covered by the State
plan, the Secretary and each eligible agency shall reach
agreement on levels of performance for each of the
core indicators of performance for the fourth and fifth
program years covered by the State plan, taking into
account the factors described in clause (iv). The levels
agreed to under this clause shall be considered to
be the eligible agency adjusted levels of performance
for the eligible agency for such years and shall be
incorporated into the State plan.
(vi) REVISIONS.—If unanticipated circumstances
arise in a State resulting in a significant change in
the factors described in clause (iv)(II), the eligible
agency may request that the eligible agency adjusted

112 STAT. 1066

Publication.

PUBLIC LAW 105–220—AUG. 7, 1998
levels of performance agreed to under clause (iii) or
(v) be revised. The Secretary, after collaboration with
the representatives described in section 136( j), shall
issue objective criteria and methods for making such
revisions.
(B) LEVELS OF PERFORMANCE FOR ADDITIONAL INDICATORS.—The eligible agency may identify, in the State plan,
eligible agency levels of performance for each of the additional indicators described in paragraph (2)(B). Such levels
shall be considered to be eligible agency adjusted levels
of performance for purposes of this subtitle.
(c) REPORT.—
(1) IN GENERAL.—Each eligible agency that receives a grant
under section 211(b) shall annually prepare and submit to
the Secretary a report on the progress of the eligible agency
in achieving eligible agency performance measures, including
information on the levels of performance achieved by the eligible
agency with respect to the core indicators of performance.
(2) INFORMATION DISSEMINATION.—The Secretary—
(A) shall make the information contained in such
reports available to the general public through publication
and other appropriate methods;
(B) shall disseminate State-by-State comparisons of the
information; and
(C) shall provide the appropriate committees of
Congress with copies of such reports.
CHAPTER 2—STATE PROVISIONS

20 USC 9221.

SEC. 221. STATE ADMINISTRATION.

Each eligible agency shall be responsible for the State or
outlying area administration of activities under this subtitle, including—
(1) the development, submission, and implementation of
the State plan;
(2) consultation with other appropriate agencies, groups,
and individuals that are involved in, or interested in, the
development and implementation of activities assisted under
this subtitle; and
(3) coordination and nonduplication with other Federal and
State education, training, corrections, public housing, and social
service programs.
20 USC 9222.

SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.

(a) STATE DISTRIBUTION OF FUNDS.—Each eligible agency
receiving a grant under this subtitle for a fiscal year—
(1) shall use not less than 82.5 percent of the grant funds
to award grants and contracts under section 231 and to carry
out section 225, of which not more than 10 percent of the
82.5 percent shall be available to carry out section 225;
(2) shall use not more than 12.5 percent of the grant
funds to carry out State leadership activities under section
223; and
(3) shall use not more than 5 percent of the grant funds,
or $65,000, whichever is greater, for the administrative
expenses of the eligible agency.
(b) MATCHING REQUIREMENT.—

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112 STAT. 1067

(1) IN GENERAL.—In order to receive a grant from the
Secretary under section 211(b) each eligible agency shall provide, for the costs to be incurred by the eligible agency in
carrying out the adult education and literacy activities for
which the grant is awarded, a non-Federal contribution in
an amount equal to—
(A) in the case of an eligible agency serving an outlying
area, 12 percent of the total amount of funds expended
for adult education and literacy activities in the outlying
area, except that the Secretary may decrease the amount
of funds required under this subparagraph for an eligible
agency; and
(B) in the case of an eligible agency serving a State,
25 percent of the total amount of funds expended for adult
education and literacy activities in the State.
(2) NON-FEDERAL CONTRIBUTION.—An eligible agency’s nonFederal contribution required under paragraph (1) may be provided in cash or in kind, fairly evaluated, and shall include
only non-Federal funds that are used for adult education and
literacy activities in a manner that is consistent with the purpose of this subtitle.
SEC. 223. STATE LEADERSHIP ACTIVITIES.

(a) IN GENERAL.—Each eligible agency shall use funds made
available under section 222(a)(2) for one or more of the following
adult education and literacy activities:
(1) The establishment or operation of professional development programs to improve the quality of instruction provided
pursuant to local activities required under section 231(b),
including instruction incorporating phonemic awareness,
systematic phonics, fluency, and reading comprehension, and
instruction provided by volunteers or by personnel of a State
or outlying area.
(2) The provision of technical assistance to eligible providers of adult education and literacy activities.
(3) The provision of technology assistance, including staff
training, to eligible providers of adult education and literacy
activities to enable the eligible providers to improve the quality
of such activities.
(4) The support of State or regional networks of literacy
resource centers.
(5) The monitoring and evaluation of the quality of, and
the improvement in, adult education and literacy activities.
(6) Incentives for—
(A) program coordination and integration; and
(B) performance awards.
(7) Developing and disseminating curricula, including
curricula incorporating phonemic awareness, systematic
phonics, fluency, and reading comprehension.
(8) Other activities of statewide significance that promote
the purpose of this title.
(9) Coordination with existing support services, such as
transportation, child care, and other assistance designed to
increase rates of enrollment in, and successful completion of,
adult education and literacy activities, to adults enrolled in
such activities.

20 USC 9223.

112 STAT. 1068

PUBLIC LAW 105–220—AUG. 7, 1998

(10) Integration of literacy instruction and occupational
skill training, and promoting linkages with employers.
(11) Linkages with postsecondary educational institutions.
(b) COLLABORATION.—In carrying out this section, eligible agencies shall collaborate where possible, and avoid duplicating efforts,
in order to maximize the impact of the activities described in
subsection (a).
(c) STATE-IMPOSED REQUIREMENTS.—Whenever a State or outlying area implements any rule or policy relating to the administration or operation of a program authorized under this subtitle that
has the effect of imposing a requirement that is not imposed under
Federal law (including any rule or policy based on a State or
outlying area interpretation of a Federal statute, regulation, or
guideline), the State or outlying area shall identify, to eligible
providers, the rule or policy as being State- or outlying areaimposed.
20 USC 9224.

SEC. 224. STATE PLAN.

(a) 5-YEAR PLANS.—
(1) IN GENERAL.—Each eligible agency desiring a grant
under this subtitle for any fiscal year shall submit to, or have
on file with, the Secretary a 5-year State plan.
(2) COMPREHENSIVE PLAN OR APPLICATION.—The eligible
agency may submit the State plan as part of a comprehensive
plan or application for Federal education assistance.
(b) PLAN CONTENTS.—In developing the State plan, and any
revisions to the State plan, the eligible agency shall include in
the State plan or revisions—
(1) an objective assessment of the needs of individuals
in the State or outlying area for adult education and literacy
activities, including individuals most in need or hardest to
serve;
(2) a description of the adult education and literacy activities that will be carried out with any funds received under
this subtitle;
(3) a description of how the eligible agency will evaluate
annually the effectiveness of the adult education and literacy
activities based on the performance measures described in section 212;
(4) a description of the performance measures described
in section 212 and how such performance measures will ensure
the improvement of adult education and literacy activities in
the State or outlying area;
(5) an assurance that the eligible agency will award not
less than one grant under this subtitle to an eligible provider
who offers flexible schedules and necessary support services
(such as child care and transportation) to enable individuals,
including individuals with disabilities, or individuals with other
special needs, to participate in adult education and literacy
activities, which eligible provider shall attempt to coordinate
with support services that are not provided under this subtitle
prior to using funds for adult education and literacy activities
provided under this subtitle for support services;
(6) an assurance that the funds received under this subtitle
will not be expended for any purpose other than for activities
under this subtitle;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1069

(7) a description of how the eligible agency will fund local
activities in accordance with the considerations described in
section 231(e);
(8) an assurance that the eligible agency will expend the
funds under this subtitle only in a manner consistent with
fiscal requirements in section 241;
(9) a description of the process that will be used for public
participation and comment with respect to the State plan;
(10) a description of how the eligible agency will develop
program strategies for populations that include, at a minimum—
(A) low-income students;
(B) individuals with disabilities;
(C) single parents and displaced homemakers; and
(D) individuals with multiple barriers to educational
enhancement, including individuals with limited English
proficiency;
(11) a description of how the adult education and literacy
activities that will be carried out with any funds received
under this subtitle will be integrated with other adult education, career development, and employment and training
activities in the State or outlying area served by the eligible
agency; and
(12) a description of the steps the eligible agency will
take to ensure direct and equitable access, as required in section
231(c)(1).
(c) PLAN REVISIONS.—When changes in conditions or other factors require substantial revisions to an approved State plan, the
eligible agency shall submit the revisions to the State plan to
the Secretary.
(d) CONSULTATION.—The eligible agency shall—
(1) submit the State plan, and any revisions to the State
plan, to the Governor of the State or outlying area for review
and comment; and
(2) ensure that any comments by the Governor regarding
the State plan, and any revision to the State plan, are submitted to the Secretary.
(e) PEER REVIEW.—The Secretary shall establish a peer review
process to make recommendations regarding the approval of State
plans.
(f ) PLAN APPROVAL.—A State plan submitted to the Secretary
shall be approved by the Secretary unless the Secretary makes
a written determination, within 90 days after receiving the plan,
that the plan is inconsistent with the specific provisions of this
subtitle.
SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.

(a) PROGRAM AUTHORIZED.—From funds made available under
section 222(a)(1) for a fiscal year, each eligible agency shall carry
out corrections education or education for other institutionalized
individuals.
(b) USES OF FUNDS.—The funds described in subsection (a)
shall be used for the cost of educational programs for criminal
offenders in correctional institutions and for other institutionalized
individuals, including academic programs for—
(1) basic education;

20 USC 9225.

112 STAT. 1070

PUBLIC LAW 105–220—AUG. 7, 1998

(2) special education programs as determined by the eligible
agency;
(3) English literacy programs; and
(4) secondary school credit programs.
(c) PRIORITY.—Each eligible agency that is using assistance
provided under this section to carry out a program for criminal
offenders in a correctional institution shall give priority to serving
individuals who are likely to leave the correctional institution with
5 years of participation in the program.
(d) DEFINITION OF CRIMINAL OFFENDER.—
(1) CRIMINAL OFFENDER.—The term ‘‘criminal offender’’
means any individual who is charged with or convicted of
any criminal offense.
(2) CORRECTIONAL INSTITUTION.—The term ‘‘correctional
institution’’ means any—
(A) prison;
(B) jail;
(C) reformatory;
(D) work farm;
(E) detention center; or
(F) halfway house, community-based rehabilitation
center, or any other similar institution designed for the
confinement or rehabilitation of criminal offenders.
CHAPTER 3—LOCAL PROVISIONS
20 USC 9241.

SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

(a) GRANTS AND CONTRACTS.—From grant funds made available
under section 211(b), each eligible agency shall award multiyear
grants or contracts, on a competitive basis, to eligible providers
within the State or outlying area to enable the eligible providers
to develop, implement, and improve adult education and literacy
activities within the State.
(b) REQUIRED LOCAL ACTIVITIES.—The eligible agency shall
require that each eligible provider receiving a grant or contract
under subsection (a) use the grant or contract to establish or operate
one or more programs that provide services or instruction in one
or more of the following categories:
(1) Adult education and literacy services, including workplace literacy services.
(2) Family literacy services.
(3) English literacy programs.
(c) DIRECT AND EQUITABLE ACCESS; SAME PROCESS.—Each
eligible agency receiving funds under this subtitle shall ensure
that—
(1) all eligible providers have direct and equitable access
to apply for grants or contracts under this section; and
(2) the same grant or contract announcement process and
application process is used for all eligible providers in the
State or outlying area.
(d) SPECIAL RULE.—Each eligible agency awarding a grant or
contract under this section shall not use any funds made available
under this subtitle for adult education and literacy activities for
the purpose of supporting or providing programs, services, or activities for individuals who are not individuals described in subparagraphs (A) and (B) of section 203(1), except that such agency may
use such funds for such purpose if such programs, services, or

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1071

activities are related to family literacy services. In providing family
literacy services under this subtitle, an eligible provider shall
attempt to coordinate with programs and services that are not
assisted under this subtitle prior to using funds for adult education
and literacy activities under this subtitle for activities other than
adult education activities.
(e) CONSIDERATIONS.—In awarding grants or contracts under
this section, the eligible agency shall consider—
(1) the degree to which the eligible provider will establish
measurable goals for participant outcomes;
(2) the past effectiveness of an eligible provider in improving the literacy skills of adults and families, and, after the
1-year period beginning with the adoption of an eligible agency’s
performance measures under section 212, the success of an
eligible provider receiving funding under this subtitle in meeting or exceeding such performance measures, especially with
respect to those adults with the lowest levels of literacy;
(3) the commitment of the eligible provider to serve individuals in the community who are most in need of literacy services,
including individuals who are low-income or have minimal
literacy skills;
(4) whether or not the program—
(A) is of sufficient intensity and duration for participants to achieve substantial learning gains; and
(B) uses instructional practices, such as phonemic
awareness, systematic phonics, fluency, and reading comprehension that research has proven to be effective in
teaching individuals to read;
(5) whether the activities are built on a strong foundation
of research and effective educational practice;
(6) whether the activities effectively employ advances in
technology, as appropriate, including the use of computers;
(7) whether the activities provide learning in real life contexts to ensure that an individual has the skills needed to
compete in the workplace and exercise the rights and responsibilities of citizenship;
(8) whether the activities are staffed by well-trained
instructors, counselors, and administrators;
(9) whether the activities coordinate with other available
resources in the community, such as by establishing strong
links with elementary schools and secondary schools, postsecondary educational institutions, one-stop centers, job training programs, and social service agencies;
(10) whether the activities offer flexible schedules and support services (such as child care and transportation) that are
necessary to enable individuals, including individuals with
disabilities or other special needs, to attend and complete programs;
(11) whether the activities maintain a high-quality information management system that has the capacity to report participant outcomes and to monitor program performance against
the eligible agency performance measures; and
(12) whether the local communities have a demonstrated
need for additional English literacy programs.

112 STAT. 1072
20 USC 9242.

PUBLIC LAW 105–220—AUG. 7, 1998

SEC. 232. LOCAL APPLICATION.

Each eligible provider desiring a grant or contract under this
subtitle shall submit an application to the eligible agency containing
such information and assurances as the eligible agency may require,
including—
(1) a description of how funds awarded under this subtitle
will be spent; and
(2) a description of any cooperative arrangements the
eligible provider has with other agencies, institutions, or
organizations for the delivery of adult education and literacy
activities.
20 USC 9243.

SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

(a) IN GENERAL.—Subject to subsection (b), of the amount that
is made available under this subtitle to an eligible provider—
(1) not less than 95 percent shall be expended for carrying
out adult education and literacy activities; and
(2) the remaining amount, not to exceed 5 percent, shall
be used for planning, administration, personnel development,
and interagency coordination.
(b) SPECIAL RULE.—In cases where the cost limits described
in subsection (a) are too restrictive to allow for adequate planning,
administration, personnel development, and interagency coordination, the eligible provider shall negotiate with the eligible agency
in order to determine an adequate level of funds to be used for
noninstructional purposes.
CHAPTER 4—GENERAL PROVISIONS
20 USC 9251.

SEC. 241. ADMINISTRATIVE PROVISIONS.

(a) SUPPLEMENT NOT SUPPLANT.—Funds made available for
adult education and literacy activities under this subtitle shall
supplement and not supplant other State or local public funds
expended for adult education and literacy activities.
(b) MAINTENANCE OF EFFORT.—
(1) IN GENERAL.—
(A) DETERMINATION.—An eligible agency may receive
funds under this subtitle for any fiscal year if the Secretary
finds that the fiscal effort per student or the aggregate
expenditures of such eligible agency for adult education
and literacy activities, in the second preceding fiscal year,
was not less than 90 percent of the fiscal effort per student
or the aggregate expenditures of such eligible agency for
adult education and literacy activities, in the third preceding fiscal year.
(B) PROPORTIONATE REDUCTION.—Subject to paragraphs (2), (3), and (4), for any fiscal year with respect
to which the Secretary determines under subparagraph
(A) that the fiscal effort or the aggregate expenditures
of an eligible agency for the preceding program year were
less than such effort or expenditures for the second preceding program year, the Secretary—
(i) shall determine the percentage decreases in
such effort or in such expenditures; and
(ii) shall decrease the payment made under this
subtitle for such program year to the agency for adult

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1073

education and literacy activities by the lesser of such
percentages.
(2) COMPUTATION.—In computing the fiscal effort and
aggregate expenditures under paragraph (1), the Secretary shall
exclude capital expenditures and special one-time project costs.
(3) DECREASE IN FEDERAL SUPPORT.—If the amount made
available for adult education and literacy activities under this
subtitle for a fiscal year is less than the amount made available
for adult education and literacy activities under this subtitle
for the preceding fiscal year, then the fiscal effort per student
and the aggregate expenditures of an eligible agency required
in order to avoid a reduction under paragraph (1)(B) shall
be decreased by the same percentage as the percentage decrease
in the amount so made available.
(4) WAIVER.—The Secretary may waive the requirements
of this subsection for 1 fiscal year only, if the Secretary determines that a waiver would be equitable due to exceptional
or uncontrollable circumstances, such as a natural disaster
or an unforeseen and precipitous decline in the financial
resources of the State or outlying area of the eligible agency.
If the Secretary grants a waiver under the preceding sentence
for a fiscal year, the level of effort required under paragraph
(1) shall not be reduced in the subsequent fiscal year because
of the waiver.
SEC. 242. NATIONAL INSTITUTE FOR LITERACY.

(a) PURPOSE.—The purpose of this section is to establish a
National Institute for Literacy that—
(1) provides national leadership regarding literacy;
(2) coordinates literacy services and policy; and
(3) serves as a national resource for adult education and
literacy programs by—
(A) providing the best and most current information
available, including the work of the National Institute of
Child Health and Human Development in the area of
phonemic awareness, systematic phonics, fluency, and reading comprehension, to all recipients of Federal assistance
that focuses on reading, including programs under titles
I and VII of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6301 et seq. and 7401 et seq.),
the Head Start Act (42 U.S.C. 9831 et seq.), the Individuals
with Disabilities Education Act (20 U.S.C. 1400 et seq.),
and this Act; and
(B) supporting the creation of new ways to offer services of proven effectiveness.
(b) ESTABLISHMENT.—
(1) IN GENERAL.—There is established the National
Institute for Literacy (in this section referred to as the
‘‘Institute’’). The Institute shall be administered under the
terms of an interagency agreement entered into by the Secretary of Education with the Secretary of Labor and the Secretary of Health and Human Services (in this section referred
to as the ‘‘Interagency Group’’). The Interagency Group may
include in the Institute any research and development center,
institute, or clearinghouse established within the Department
of Education, the Department of Labor, or the Department

20 USC 9252.

112 STAT. 1074

PUBLIC LAW 105–220—AUG. 7, 1998
of Health and Human Services the purpose of which is determined by the Interagency Group to be related to the purpose
of the Institute.
(2) OFFICES.—The Institute shall have offices separate from
the offices of the Department of Education, the Department
of Labor, and the Department of Health and Human Services.
(3) RECOMMENDATIONS.—The Interagency Group shall consider the recommendations of the National Institute for Literacy
Advisory Board (in this section referred to as the ‘‘Board’’)
established under subsection (e) in planning the goals of the
Institute and in the implementation of any programs to achieve
the goals. If the Board’s recommendations are not followed,
the Interagency Group shall provide a written explanation to
the Board concerning actions the Interagency Group takes that
are inconsistent with the Board’s recommendations, including
the reasons for not following the Board’s recommendations with
respect to the actions. The Board may also request a meeting
of the Interagency Group to discuss the Board’s recommendations.
(4) DAILY OPERATIONS.—The daily operations of the
Institute shall be administered by the Director of the Institute.
(c) DUTIES.—
(1) IN GENERAL.—In order to provide leadership for
theimprovement and expansion of the system for delivery of
literacy services, the Institute is authorized—
(A) to establish a national electronic data base of
information that disseminates information to the broadest
possible audience within the literacy and basic skills field,
and that includes—
(i) effective practices in the provision of literacy
and basic skills instruction, including instruction in
phonemic awareness, systematic phonics, fluency, and
reading comprehension, and the integration of literacy
and basic skills instruction with occupational skills
training;
(ii) public and private literacy and basic skills
programs, and Federal, State, and local policies, affecting the provision of literacy services at the national,
State, and local levels;
(iii) opportunities for technical assistance, meetings, conferences, and other opportunities that lead
to the improvement of literacy and basic skills services;
and
(iv) a communication network for literacy programs, providers, social service agencies, and students;
(B) to coordinate support for the provision of literacy
and basic skills services across Federal agencies and at
the State and local levels;
(C) to coordinate the support of reliable and replicable
research and development on literacy and basic skills in
families and adults across Federal agencies, especially with
the Office of Educational Research and Improvement in
the Department of Education, and to carry out basic and
applied research and development on topics that are not
being investigated by other organizations or agencies, such
as the special literacy needs of individuals with learning
disabilities;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1075

(D) to collect and disseminate information on methods
of advancing literacy that show great promise, including
phonemic awareness, systematic phonics, fluency, and reading comprehension based on the work of the National
Institute of Child Health and Human Development;
(E) to provide policy and technical assistance to Federal, State, and local entities for the improvement of policy
and programs relating to literacy;
(F) to fund a network of State or regional adult literacy
resource centers to assist State and local public and private
nonprofit efforts to improve literacy by—
(i) encouraging the coordination of literacy
services;
(ii) enhancing the capacity of State and local
organizations to provide literacy services; and
(iii) serving as a link between the Institute and
providers of adult education and literacy activities for
the purpose of sharing information, data, research,
expertise, and literacy resources;
(G) to coordinate and share information with national
organizations and associations that are interested in literacy and workforce investment activities;
(H) to advise Congress and Federal departments and
agencies regarding the development of policy with respect
to literacy and basic skills; and
(I) to undertake other activities that lead to the
improvement of the Nation’s literacy delivery system and
that complement other such efforts being undertaken by
public and private agencies and organizations.
(2) GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS.—
The Institute may award grants to, or enter into contracts
or cooperative agreements with, individuals, public or private
institutions, agencies, organizations, or consortia of such
institutions, agencies, or organizations to carry out the activities
of the Institute.
(d) LITERACY LEADERSHIP.—
(1) IN GENERAL.—The Institute, in consultation with the
Board, may award fellowships, with such stipends and allowances that the Director considers necessary, to outstanding
individuals pursuing careers in adult education or literacy in
the areas of instruction, management, research, or innovation.
(2) FELLOWSHIPS.—Fellowships awarded under this subsection shall be used, under the auspices of the Institute, to
engage in research, education, training, technical assistance,
or other activities to advance the field of adult education or
literacy, including the training of volunteer literacy providers
at the national, State, or local level.
(3) INTERNS AND VOLUNTEERS.—The Institute, in consultation with the Board, may award paid and unpaid internships
to individuals seeking to assist the Institute in carrying out
its mission. Notwithstanding section 1342 of title 31, United
States Code, the Institute may accept and use voluntary and
uncompensated services as the Institute determines necessary.
(e) NATIONAL INSTITUTE FOR LITERACY ADVISORY BOARD.—
(1) ESTABLISHMENT.—
(A) IN GENERAL.—There shall be a National Institute
for Literacy Advisory Board (in this section referred to

President.

112 STAT. 1076

PUBLIC LAW 105–220—AUG. 7, 1998
as the ‘‘Board’’), which shall consist of 10 individuals
appointed by the President with the advice and consent
of the Senate.
(B) COMPOSITION.—The Board shall be comprised of
individuals who are not otherwise officers or employees
of the Federal Government and who are representative
of entities such as—
(i) literacy organizations and providers of literacy
services, including nonprofit providers, providers of
English literacy programs and services, social service
organizations, and eligible providers receiving assistance under this subtitle;
(ii) businesses that have demonstrated interest in
literacy programs;
(iii) literacy students, including literacy students
with disabilities;
(iv) experts in the area of literacy research;
(v) State and local governments;
(vi) State Directors of adult education; and
(vii) representatives of employees, including
representatives of labor organizations.
(2) DUTIES.—The Board shall—
(A) make recommendations concerning the appointment of the Director and staff of the Institute;
(B) provide independent advice on the operation of
the Institute; and
(C) receive reports from the Interagency Group and
the Director.
(3) FEDERAL ADVISORY COMMITTEE ACT.—Except as otherwise provided, the Board established by this subsection shall
be subject to the provisions of the Federal Advisory Committee
Act (5 U.S.C. App.).
(4) APPOINTMENTS.—
(A) IN GENERAL.—Each member of the Board shall
be appointed for a term of 3 years, except that the initial
terms for members may be 1, 2, or 3 years in order to
establish a rotation in which one-third of the members
are selected each year. Any such member may be appointed
for not more than 2 consecutive terms.
(B) VACANCIES.—Any member appointed to fill a
vacancy occurring before the expiration of the term for
which the member’s predecessor was appointed shall be
appointed only for the remainder of that term. A member
may serve after the expiration of that member’s term until
a successor has taken office.
(5) QUORUM.—A majority of the members of the Board
shall constitute a quorum but a lesser number may hold hearings. Any recommendation of the Board may be passed only
by a majority of the Board’s members present.
(6) ELECTION OF OFFICERS.—The Chairperson and Vice
Chairperson of the Board shall be elected by the members
of the Board. The term of office of the Chairperson and Vice
Chairperson shall be 2 years.
(7) MEETINGS.—The Board shall meet at the call of the
Chairperson or a majority of the members of the Board.
(f ) GIFTS, BEQUESTS, AND DEVISES.—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1077

(1) IN GENERAL.—The Institute may accept, administer,
and use gifts or donations of services, money, or property,
whether real or personal, tangible or intangible.
(2) RULES.—The Board shall establish written rules setting
forth the criteria to be used by the Institute in determining
whether the acceptance of contributions of services, money,
or property whether real or personal, tangible or intangible,
would reflect unfavorably upon the ability of the Institute or
any employee to carry out the responsibilities of the Institute
or employee, or official duties, in a fair and objective manner,
or would compromise the integrity or the appearance of the
integrity of the Institute’s programs or any official involved
in those programs.
(g) MAILS.—The Board and the Institute may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the United States.
(h) STAFF.—The Interagency Group, after considering recommendations made by the Board, shall appoint and fix the pay
of a Director.
(i) APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.—The Director and staff of the Institute may be appointed without regard
to the provisions of title 5, United States Code, governing appointments in the competitive service, and may be paid without regard
to the provisions of chapter 51 and subchapter III of chapter 53
of that title relating to classification and General Schedule pay
rates, except that an individual so appointed may not receive pay
in excess of the annual rate of basic pay payable for level IV
of the Executive Schedule.
( j) EXPERTS AND CONSULTANTS.—The Institute may procure
temporary and intermittent services under section 3109(b) of title
5, United States Code.
(k) REPORT.—The Institute shall submit a report biennially
to the Committee on Education and the Workforce of the House
of Representatives and the Committee on Labor and Human
Resources of the Senate. Each report submitted under this subsection shall include—
(1) a comprehensive and detailed description of the
Institute’s operations, activities, financial condition, and accomplishments in the field of literacy for the period covered by
the report;
(2) a description of how plans for the operation of the
Institute for the succeeding 2 fiscal years will facilitate achievement of the goals of the Institute and the goals of the literacy
programs within the Department of Education, the Department
of Labor, and the Department of Health and Human Services;
and
(3) any additional minority, or dissenting views submitted
by members of the Board.
(l) FUNDING.—Any amounts appropriated to the Secretary, the
Secretary of Labor, the Secretary of Health and Human Services,
or any other department that participates in the Institute for purposes that the Institute is authorized to perform under this section
may be provided to the Institute for such purposes.

112 STAT. 1078
20 USC 9253.

PUBLIC LAW 105–220—AUG. 7, 1998

SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.

The Secretary shall establish and carry out a program of
national leadership activities to enhance the quality of adult education and literacy programs nationwide. Such activities may
include the following:
(1) Technical assistance, including—
(A) assistance provided to eligible providers in developing and using performance measures for the improvement
of adult education and literacy activities, including family
literacy services;
(B) assistance related to professional development
activities, and assistance for the purposes of developing,
improving, identifying, and disseminating the most successful methods and techniques for providing adult education
and literacy activities, including family literacy services,
based on scientific evidence where available; and
(C) assistance in distance learning and promoting and
improving the use of technology in the classroom.
(2) Funding national leadership activities that are not
described in paragraph (1), either directly or through grants,
contracts, or cooperative agreements awarded on a competitive
basis to or with postsecondary educational institutions, public
or private organizations or agencies, or consortia of such institutions, organizations, or agencies, such as—
(A) developing, improving, and identifying the most
successful methods and techniques for addressing the education needs of adults, including instructional practices
using phonemic awareness, systematic phonics, fluency,
and reading comprehension, based on the work of the
National Institute of Child Health and Human Development;
(B) increasing the effectiveness of, and improving the
qualify of, adult education and literacy activities, including
family literacy services;
(C) carrying out research, such as estimating the number of adults functioning at the lowest levels of literacy
proficiency;
(D)(i) carrying out demonstration programs;
(ii) developing and replicating model and innovative
programs, such as the development of models for basic
skill certificates, identification of effective strategies for
working with adults with learning disabilities and with
individuals with limited English proficiency who are adults,
and workplace literacy programs; and
(iii) disseminating best practices information, including
information regarding promising practices resulting from
federally funded demonstration programs;
(E) providing for the conduct of an independent evaluation and assessment of adult education and literacy activities through studies and analyses conducted independently
through grants and contracts awarded on a competitive
basis, which evaluation and assessment shall include
descriptions of—
(i) the effect of performance measures and other
measures of accountability on the delivery of adult
education and literacy activities, including family literacy services;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1079

(ii) the extent to which the adult education and
literacy activities, including family literacy services,
increase the literacy skills of adults (and of children,
in the case of family literacy services), lead the participants in such activities to involvement in further education and training, enhance the employment and earnings of such participants, and, if applicable, lead to
other positive outcomes, such as reductions in recidivism in the case of prison-based adult education and
literacy activities;
(iii) the extent to which the provision of support
services to adults enrolled in adult education and family literacy programs increase the rate of enrollment
in, and successful completion of, such programs; and
(iv) the extent to which eligible agencies have
distributed funds under section 231 to meet the needs
of adults through community-based organizations;
(F) supporting efforts aimed at capacity building at
the State and local levels, such as technical assistance
in program planning, assessment, evaluation, and monitoring of activities carried out under this subtitle;
(G) collecting data, such as data regarding the improvement of both local and State data systems, through technical assistance and development of model performance
data collection systems; and
(H) other activities designed to enhance the quality
of adult education and literacy activities nationwide.

Subtitle B—Repeals
SEC. 251. REPEALS.

(a) REPEALS.—
(1) ADULT EDUCATION ACT.—The Adult Education Act (20
U.S.C. 1201 et seq.) is repealed.
(2) NATIONAL LITERACY ACT OF 1991.—The National Literacy
Act of 1991 (20 U.S.C. 1201 note) is repealed.
(b) CONFORMING AMENDMENTS.—
(1) REFUGEE EDUCATION ASSISTANCE ACT.—Subsection (b)
of section 402 of the Refugee Education Assistance Act of 1980
(8 U.S.C. 1522 note) is repealed.
(2) ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.—
(A) SECTION 1202 OF ESEA.—Section 1202(c)(1) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6362(c)(1)) is amended by striking ‘‘Adult Education
Act’’ and inserting ‘‘Adult Education and Family Literacy
Act’’.
(B) SECTION 1205 OF ESEA.—Section 1205(8)(B) of such
Act (20 U.S.C. 6365(8)(B)) is amended by striking ‘‘Adult
Education Act’’ and inserting ‘‘Adult Education and Family
Literacy Act’’.
(C) SECTION 1206 OF ESEA.—Section 1206(a)(1)(A) of
such Act (20 U.S.C. 6366(a)(1)(A)) is amended by striking
‘‘an adult basic education program under the Adult Education Act’’ and inserting ‘‘adult education and literacy
activities under the Adult Education and Family Literacy
Act’’.

112 STAT. 1080

PUBLIC LAW 105–220—AUG. 7, 1998
(D) SECTION 3113 OF ESEA.—Section 3113(1) of such
Act (20 U.S.C. 6813(1)) is amended by striking ‘‘section
312 of the Adult Education Act’’ and inserting ‘‘section
203 of the Adult Education and Family Literacy Act’’.
(E) SECTION 9161 OF ESEA.—Section 9161(2) of such
Act (20 U.S.C. 7881(2)) is amended by striking ‘‘section
312(2) of the Adult Education Act’’ and inserting ‘‘section
203 of the Adult Education and Family Literacy Act’’.
(3) OLDER AMERICANS ACT OF 1965.—Section 203(b)(8) of
the Older Americans Act of 1965 (42 U.S.C. 3013(b)(8)) is
amended by striking ‘‘Adult Education Act’’ and inserting ‘‘Adult
Education and Family Literacy Act’’.

TITLE III—WORKFORCE INVESTMENTRELATED ACTIVITIES
Subtitle A—Wagner-Peyser Act
SEC. 301. DEFINITIONS.

Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is
amended—
(1) in paragraph (1)—
(A) by striking ‘‘or officials’’; and
(B) by striking ‘‘Job Training Partnership Act’’ and
inserting ‘‘Workforce Investment Act of 1998’’;
(2) by striking paragraphs (2) and (4);
(3) by redesignating paragraph (3) as paragraph (4);
(4) by inserting after paragraph (1) the following:
‘‘(2) the term ‘local workforce investment board’ means
a local workforce investment board established under section
117 of the Workforce Investment Act of 1998;
‘‘(3) the term ‘one-stop delivery system’ means a one-stop
delivery system described in section 134(c) of the Workforce
Investment Act of 1998;’’; and
(5) in paragraph (4) (as redesignated in paragraph (3)),
by striking the semicolon and inserting ‘‘; and’’.
SEC. 302. FUNCTIONS.

(a) IN GENERAL.—Section 3 of the Wagner-Peyser Act (29 U.S.C.
49b) is amended—
(1) in subsection (a), by striking ‘‘United States Employment Service’’ and inserting ‘‘Secretary’’; and
(2) by adding at the end the following:
‘‘(c) The Secretary shall—
‘‘(1) assist in the coordination and development of a nationwide system of public labor exchange services, provided as
part of the one-stop customer service systems of the States;
‘‘(2) assist in the development of continuous improvement
models for such nationwide system that ensure private sector
satisfaction with the system and meet the demands of jobseekers relating to the system; and
‘‘(3) ensure, for individuals otherwise eligible to receive
unemployment compensation, the provision of reemployment
services and other activities in which the individuals are
required to participate to receive the compensation.’’.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1081

(b) CONFORMING AMENDMENTS.—Section 508(b)(1) of the
Unemployment Compensation Amendments of 1976 (42 U.S.C.
603a(b)(1)) is amended—
(1) by striking ‘‘the third sentence of section 3(a)’’ and
inserting ‘‘section 3(b)’’; and
(2) by striking ‘‘49b(a)’’ and inserting ‘‘49b(b)’’.
SEC. 303. DESIGNATION OF STATE AGENCIES.

Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c) is
amended—
(1) by striking ‘‘, through its legislature,’’ and inserting
‘‘, pursuant to State statute,’’;
(2) by inserting after ‘‘the provisions of this Act and’’ the
following: ‘‘, in accordance with such State statute, the Governor
shall’’; and
(3) by striking ‘‘United States Employment Service’’ and
inserting ‘‘Secretary’’.
SEC. 304. APPROPRIATIONS.

Section 5(c) of the Wagner-Peyser Act (29 U.S.C. 49d(c)) is
amended by striking paragraph (3).
SEC. 305. DISPOSITION OF ALLOTTED FUNDS.

Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is
amended—
(1) in subsection (b)(2), by striking ‘‘private industry council’’ and inserting ‘‘local workforce investment board’’;
(2) in subsection (c)(2), by striking ‘‘any program under’’
and all that follows and inserting ‘‘any workforce investment
activity carried out under the Workforce Investment Act of
1998.’’;
(3) in subsection (d)—
(A) by striking ‘‘United States Employment Service’’
and inserting ‘‘Secretary’’; and
(B) by striking ‘‘Job Training Partnership Act’’ and
inserting ‘‘Workforce Investment Act of 1998’’; and
(4) by adding at the end the following:
‘‘(e) All job search, placement, recruitment, labor employment
statistics, and other labor exchange services authorized under subsection (a) shall be provided, consistent with the other requirements
of this Act, as part of the one-stop delivery system established
by the State.’’.
SEC. 306. STATE PLANS.

Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is
amended—
(1) in subsection (a) to read as follows:
‘‘(a) Any State desiring to receive assistance under this Act
shall submit to the Secretary, as part of the State plan submitted
under section 112 of the Workforce Investment Act of 1998, detailed
plans for carrying out the provisions of this Act within such State.’’;
(2) by striking subsections (b) and (c);
(3) by redesignating subsection (d) as subsection (b);
(4) by inserting after subsection (b) (as redesignated by
paragraph (3)) the following:
‘‘(c) The part of the State plan described in subsection (a)
shall include the information described in paragraphs (8) and (14)
of section 112(b) of the Workforce Investment Act of 1998.’’;

42 USC 655a.

112 STAT. 1082

PUBLIC LAW 105–220—AUG. 7, 1998
(5) by redesignating subsection (e) as subsection (d); and
(6) in subsection (d) (as redesignated in paragraph (5)),
by striking ‘‘such plans’’ and inserting ‘‘such detailed plans’’.

SEC. 307. REPEAL OF FEDERAL ADVISORY COUNCIL.

Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j) is
amended—
(1) by striking ‘‘11.’’ and all that follows through ‘‘(b) In’’
and inserting ‘‘11. In’’; and
(2) by striking ‘‘Director’’ and inserting ‘‘Secretary’’.
SEC. 308. REGULATIONS.

Section 12 of the Wagner-Peyser Act (29 U.S.C. 49k) is amended
by striking ‘‘The Director, with the approval of the Secretary of
Labor,’’ and inserting ‘‘The Secretary’’.
SEC. 309. EMPLOYMENT STATISTICS.

The Wagner-Peyser Act is amended—
(1) by redesignating section 15 (29 U.S.C. 49 note) as
section 16; and
(2) by inserting after section 14 (29 U.S.C. 49l–1) the
following:
29 USC 49l–2.

‘‘SEC. 15. EMPLOYMENT STATISTICS.

‘‘(a) SYSTEM CONTENT.—
‘‘(1) IN GENERAL.—The Secretary, in accordance with the
provisions of this section, shall oversee the development,
maintenance, and continuous improvement of a nationwide
employment statistics system of employment statistics that
includes—
‘‘(A) statistical data from cooperative statistical survey
and projection programs and data from administrative
reporting systems that, taken together, enumerate, estimate, and project employment opportunities and conditions
at national, State, and local levels in a timely manner,
including statistics on—
‘‘(i) employment and unemployment status of
national, State, and local populations, including selfemployed, part-time, and seasonal workers;
‘‘(ii) industrial distribution of occupations, as well
as current and projected employment opportunities,
wages, benefits (where data is available), and skill
trends by occupation and industry, with particular
attention paid to State and local conditions;
‘‘(iii) the incidence of, industrial and geographical
location of, and number of workers displaced by,
permanent layoffs and plant closings; and
‘‘(iv) employment and earnings information maintained in a longitudinal manner to be used for research
and program evaluation;
‘‘(B) information on State and local employment
opportunities, and other appropriate statistical data related
to labor market dynamics, which—
‘‘(i) shall be current and comprehensive;
‘‘(ii) shall meet the needs identified through the
consultations described in subparagraphs (A) and (B)
of subsection (e)(2); and

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112 STAT. 1083

‘‘(iii) shall meet the needs for the information
identified in section 134(d);
‘‘(C) technical standards (which the Secretary shall
publish annually) for data and information described in
subparagraphs (A) and (B) that, at a minimum, meet the
criteria of chapter 35 of title 44, United States Code;
‘‘(D) procedures to ensure compatibility and additivity
of the data and information described in subparagraphs
(A) and (B) from national, State, and local levels;
‘‘(E) procedures to support standardization and
aggregation of data from administrative reporting systems
described in subparagraph (A) of employment-related programs;
‘‘(F) analysis of data and information described in subparagraphs (A) and (B) for uses such as—
‘‘(i) national, State, and local policymaking;
‘‘(ii) implementation of Federal policies (including
allocation formulas);
‘‘(iii) program planning and evaluation; and
‘‘(iv) researching labor market dynamics;
‘‘(G) wide dissemination of such data, information, and
analysis in a user-friendly manner and voluntary technical
standards for dissemination mechanisms; and
‘‘(H) programs of—
‘‘(i) training for effective data dissemination;
‘‘(ii) research and demonstration; and
‘‘(iii) programs and technical assistance.
‘‘(2) INFORMATION TO BE CONFIDENTIAL.—
‘‘(A) IN GENERAL.—No officer or employee of the Federal
Government or agent of the Federal Government may—
‘‘(i) use any submission that is furnished for exclusively statistical purposes under the provisions of this
section for any purpose other than the statistical purposes of this section for which the submission is furnished;
‘‘(ii) make any publication or media transmittal
of the data contained in the submission described in
clause (i) that permits information concerning individual subjects to be reasonably inferred by either direct
or indirect means; or
‘‘(iii) permit anyone other than a sworn officer,
employee, or agent of any Federal department or
agency, or a contractor (including an employee of a
contractor) of such department or agency, to examine
an individual submission described in clause (i);
without the consent of the individual, agency, or other
person who is the subject of the submission or provides
that submission.
‘‘(B) IMMUNITY FROM LEGAL PROCESS.—Any submission
(including any data derived from the submission) that is
collected and retained by a Federal department or agency,
or an officer, employee, agent, or contractor of such a
department or agency, for exclusively statistical purposes
under this section shall be immune from the legal process
and shall not, without the consent of the individual, agency,
or other person who is the subject of the submission or
provides that submission, be admitted as evidence or used

112 STAT. 1084

Procedures.

PUBLIC LAW 105–220—AUG. 7, 1998

for any purpose in any action, suit, or other judicial or
administrative proceeding.
‘‘(C) RULE OF CONSTRUCTION.—Nothing in this section
shall be construed to provide immunity from the legal
process for such submission (including any data derived
from the submission) if the submission is in the possession
of any person, agency, or entity other than the Federal
Government or an officer, employee, agent, or contractor
of the Federal Government, or if the submission is
independently collected, retained, or produced for purposes
other than the purposes of this Act.
‘‘(b) SYSTEM RESPONSIBILITIES.—
‘‘(1) IN GENERAL.—The employment statistics system
described in subsection (a) shall be planned, administered, overseen, and evaluated through a cooperative governance structure
involving the Federal Government and States.
‘‘(2) DUTIES.—The Secretary, with respect to data collection,
analysis, and dissemination of labor employment statistics for
the system, shall carry out the following duties:
‘‘(A) Assign responsibilities within the Department of
Labor for elements of the employment statistics system
described in subsection (a) to ensure that all statistical
and administrative data collected is consistent with appropriate Bureau of Labor Statistics standards and definitions.
‘‘(B) Actively seek the cooperation of other Federal
agencies to establish and maintain mechanisms for ensuring complementarity and nonduplication in the development and operation of statistical and administrative data
collection activities.
‘‘(C) Eliminate gaps and duplication in statistical
undertakings, with the systemization of wage surveys as
an early priority.
‘‘(D) In collaboration with the Bureau of Labor Statistics and States, develop and maintain the elements of
the employment statistics system described in subsection
(a), including the development of consistent procedures and
definitions for use by the States in collecting the data
and information described in subparagraphs (A) and (B)
of subsection (a)(1).
‘‘(E) Establish procedures for the system to ensure
that—
‘‘(i) such data and information are timely;
‘‘(ii) paperwork and reporting for the system are
reduced to a minimum; and
‘‘(iii) States and localities are fully involved in
the development and continuous improvement of the
system at all levels, including ensuring the provision,
to such States and localities, of budget information
necessary for carrying out their responsibilities under
subsection (e).
‘‘(c) ANNUAL PLAN.—The Secretary, working through the
Bureau of Labor Statistics, and in cooperation with the States,
and with the assistance of other appropriate Federal agencies,
shall prepare an annual plan which shall be the mechanism for
achieving cooperative management of the nationwide employment
statistics system described in subsection (a) and the statewide

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1085

employment statistics systems that comprise the nationwide system.
The plan shall—
‘‘(1) describe the steps the Secretary has taken in the
preceding year and will take in the following 5 years to carry
out the duties described in subsection (b)(2);
‘‘(2) include a report on the results of an annual consumer
satisfaction review concerning the performance of the system,
including the performance of the system in addressing the
needs of Congress, States, localities, employers, jobseekers, and
other consumers;
‘‘(3) evaluate the performance of the system and recommend
needed improvements, taking into consideration the results
of the consumer satisfaction review, with particular attention
to the improvements needed at the State and local levels;
‘‘(4) justify the budget request for annual appropriations
by describing priorities for the fiscal year succeeding the fiscal
year in which the plan is developed and priorities for the
5 subsequent fiscal years for the system;
‘‘(5) describe current (as of the date of the submission
of the plan) spending and spending needs to carry out activities
under this section, including the costs to States and localities
of meeting the requirements of subsection (e)(2); and
‘‘(6) describe the involvement of States in the development
of the plan, through formal consultations conducted by the
Secretary in cooperation with representatives of the Governors
of every State, and with representatives of local workforce
investment boards, pursuant to a process established by the
Secretary in cooperation with the States.
‘‘(d) COORDINATION WITH THE STATES.—The Secretary, working
through the Bureau of Labor Statistics, and in cooperation with
the States, shall—
‘‘(1) develop the annual plan described in subsection (c)
and address other employment statistics issues by holding formal consultations, at least once each quarter (beginning with
the calendar quarter in which the Workforce Investment Act
of 1998 is enacted) on the products and administration of the
nationwide employment statistics system; and
‘‘(2) hold the consultations with representatives from each
of the 10 Federal regions of the Department of Labor, elected
(pursuant to a process established by the Secretary) by and
from the State employment statistics directors affiliated with
the State agencies that perform the duties described in subsection (e)(2).
‘‘(e) STATE RESPONSIBILITIES.—
‘‘(1) DESIGNATION OF STATE AGENCY.—In order to receive
Federal financial assistance under this section, the Governor
of a State shall—
‘‘(A) designate a single State agency to be responsible
for the management of the portions of the employment
statistics system described in subsection (a) that comprise
a statewide employment statistics system and for the
State’s participation in the development of the annual plan;
and
‘‘(B) establish a process for the oversight of such system.
‘‘(2) DUTIES.—In order to receive Federal financial assistance under this section, the State agency shall—

Reports.

112 STAT. 1086

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(A) consult with State and local employers, participants, and local workforce investment boards about the
labor market relevance of the data to be collected and
disseminated through the statewide employment statistics
system;
‘‘(B) consult with State educational agencies and local
educational agencies concerning the provision of employment statistics in order to meet the needs of secondary
school and postsecondary school students who seek such
information;
‘‘(C) collect and disseminate for the system, on behalf
of the State and localities in the State, the information
and data described in subparagraphs (A) and (B) of subsection (a)(1);
‘‘(D) maintain and continuously improve the statewide
employment statistics system in accordance with this section;
‘‘(E) perform contract and grant responsibilities for
data collection, analysis, and dissemination for such system;
‘‘(F) conduct such other data collection, analysis, and
dissemination activities as will ensure an effective statewide employment statistics system;
‘‘(G) actively seek the participation of other State and
local agencies in data collection, analysis, and dissemination activities in order to ensure complementary, compatibility, and usefulness of data;
‘‘(H) participate in the development of the annual plan
described in subsection (c); and
‘‘(I) utilize the quarterly records described in section
136(f )(2) of the Workforce Investment Act of 1998 to assist
the State and other States in measuring State progress
on State performance measures.
‘‘(3) RULE OF CONSTRUCTION.—Nothing in this section shall
be construed as limiting the ability of a State agency to conduct
additional data collection, analysis, and dissemination activities
with State funds or with Federal funds from sources other
than this section.
‘‘(f ) NONDUPLICATION REQUIREMENT.—None of the functions
and activities carried out pursuant to this section shall duplicate
the functions and activities carried out under the Carl D. Perkins
Vocational and Applied Technology Education Act (20 U.S.C. 2301
et seq.).
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section such sums as may
be necessary for each of the fiscal years 1999 through 2004.
‘‘(h) DEFINITION.—In this section, the term ‘local area’ means
the smallest geographical area for which data can be produced
with statistical reliability.’’.
SEC. 310. TECHNICAL AMENDMENTS.

Sections 3(b), 6(b)(1), and 7(d) of the Wagner-Peyser Act (29
U.S.C. 49b(b), 49e(b)(1), and 49f(d)) are amended by striking ‘‘Secretary of Labor’’ and inserting ‘‘Secretary’’.
29 USC 49a note.

SEC. 311. EFFECTIVE DATE.

The amendments made by this subtitle shall take effect on
July 1, 1999.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1087

Subtitle B—Linkages With Other Programs
SEC. 321. TRADE ACT OF 1974.

Section 239 of the Trade Act of 1974 (19 U.S.C. 2311) is
amended by adding at the end the following:
‘‘(g) In order to promote the coordination of workforce investment activities in each State with activities carried out under
this chapter, any agreement entered into under this section shall
provide that the State shall submit to the Secretary, in such form
as the Secretary may require, the description and information
described in paragraphs (8) and (14) of section 112(b) of the
Workforce Investment Act of 1998.’’.
SEC. 322. VETERANS’ EMPLOYMENT PROGRAMS.

Chapter 41 of title 38, United States Code, is amended by
adding at the end the following:
‘‘§ 4110B. Coordination and nonduplication
‘‘In carrying out this chapter, the Secretary shall require that
an appropriate administrative entity in each State enter into an
agreement with the Secretary regarding the implementation of this
Act that includes the description and information described in paragraphs (8) and (14) of section 112(b) of the Workforce Investment
Act of 1998.’’.
SEC. 323. OLDER AMERICANS ACT OF 1965.

Section 502(b)(1) of the Older Americans Act of 1965 (42 U.S.C.
3056(b)(1)) is amended—
(1) in subparagraph (O), by striking ‘‘; and’’ and inserting
a semicolon;
(2) in subparagraph (P), by striking the period and inserting
‘‘; and’’; and
(3) by adding at the end the following subparagraph:
‘‘(Q) will provide to the Secretary the description and
information described in paragraphs (8) and (14) of section
112(b) of the Workforce Investment Act of 1998.’’.

Subtitle C—Twenty-First Century
Workforce Commission
SEC. 331. SHORT TITLE.

This subtitle may be cited as the ‘‘Twenty-First Century
Workforce Commission Act’’.
SEC. 332. FINDINGS.

Congress finds that—
(1) information technology is one of the fastest growing
areas in the United States economy;
(2) the United States is a world leader in the information
technology industry;
(3) the continued growth and prosperity of the information
technology industry is important to the continued prosperity
of the United States economy;

Twenty-First
Century
Workforce
Commission Act.
29 USC 2701
note.

112 STAT. 1088

PUBLIC LAW 105–220—AUG. 7, 1998
(4) highly skilled employees are essential for the success
of business entities in the information technology industry and
other business entities that use information technology;
(5) employees in information technology jobs are highly
paid;
(6) as of the date of enactment of this Act, these employees
are in high demand in all industries and all regions of the
United States; and
(7) through a concerted effort by business entities, the
Federal Government, the governments of States and political
subdivisions of States, and educational institutions, more
individuals will gain the skills necessary to enter into a technology-based job market, ensuring that the United States
remains the world leader in the information technology industry.

SEC. 333. DEFINITIONS.

In this subtitle:
(1) BUSINESS ENTITY.—The term ‘‘business entity’’ means
a firm, corporation, association, partnership, consortium, joint
venture, or other form of enterprise.
(2) COMMISSION.—The term ‘‘Commission’’ means the
Twenty-First Century Workforce Commission established under
section 334.
(3) INFORMATION TECHNOLOGY.—The term ‘‘information
technology’’ has the meaning given that term in section 5002
of the Information Technology Management Reform Act of 1996
(110 Stat. 679).
(4) STATE.—The term ‘‘State’’ means each of the several
States of the United States and the District of Columbia.
SEC. 334. ESTABLISHMENT OF TWENTY-FIRST CENTURY WORKFORCE
COMMISSION.

President.
Congress.

(a) ESTABLISHMENT.—There is established a commission to be
known as the Twenty-First Century Workforce Commission.
(b) MEMBERSHIP.—
(1) COMPOSITION.—
(A) IN GENERAL.—The Commission shall be composed
of 15 voting members, of which—
(i) five members shall be appointed by the
President;
(ii) five members shall be appointed by the
Majority Leader of the Senate; and
(iii) five members shall be appointed by the
Speaker of the House of Representatives.
(B) GOVERNMENTAL REPRESENTATIVES.—Of the members appointed under this subsection, three members shall
be representatives of the governments of States and political subdivisions of States, one of whom shall be appointed
by the President, one of whom shall be appointed by the
Majority Leader of the Senate, and one of whom shall
be appointed by the Speaker of the House of Representatives.
(C) EDUCATORS.—Of the members appointed under this
subsection, three shall be educators who are selected from
among elementary, secondary, vocational, and postsecondary educators—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1089

(i) one of whom shall be appointed by the
President;
(ii) one of whom shall be appointed by the Majority
Leader of the Senate; and
(iii) one of whom shall be appointed by the Speaker
of the House of Representatives.
(D) BUSINESS REPRESENTATIVES.—
(i) IN GENERAL.—Of the members appointed under
this subsection, eight shall be representatives of business entities (at least three of which shall be individuals who are employed by noninformation technology
business entities), two of whom shall be appointed
by the President, three of whom shall be appointed
by the Majority Leader of the Senate, and three of
whom shall be appointed by the Speaker of the House
of Representatives.
(ii) SIZE.—Members appointed under this subsection in accordance with clause (i) shall, to the extent
practicable, include individuals from business entities
of a size that is small or average.
(E) LABOR REPRESENTATIVE.—Of the members
appointed under this subsection, one shall be a representative of a labor organization who has been nominated by
a national labor federation and who shall be appointed
by the President.
(F) EX OFFICIO MEMBERS.—The Commission shall
include two nonvoting members, of which—
(i) one member shall be an officer or employee
of the Department of Labor, who shall be appointed
by the President; and
(ii) one member shall be an officer or employee
of the Department of Education, who shall be appointed
by the President.
(2) DATE.—The appointments of the members of the
Commission shall be made by the later of—
(A) October 31, 1998; or
(B) the date that is 45 days after the date of enactment
of this Act.
(c) PERIOD OF APPOINTMENT; VACANCIES.—Members shall be
appointed for the life of the Commission. Any vacancy in the
Commission shall not affect its powers, but shall be filled in the
same manner as the original appointment.
(d) INITIAL MEETING.—No later than 30 days after the date
on which all members of the Commission have been appointed,
the Commission shall hold its first meeting.
(e) MEETINGS.—The Commission shall meet at the call of the
Chairperson.
(f ) QUORUM.—A majority of the members of theCommission
shall constitute a quorum, but a lesser number of members may
hold hearings.
(g) CHAIRPERSON AND VICE CHAIRPERSON.—The Commission
shall select by vote a chairperson and vice chairperson from among
its voting members.
SEC. 335. DUTIES OF THE COMMISSION.

(a) STUDY.—

Deadline.

Deadline.

112 STAT. 1090

Deadline.

PUBLIC LAW 105–220—AUG. 7, 1998

(1) IN GENERAL.—The Commission shall conduct a thorough
study of all matters relating to the information technology
workforce in the United States.
(2) MATTERS STUDIED.—The matters studied by the
Commission shall include an examination of—
(A) the skills necessary to enter the information technology workforce;
(B) ways to expand the number of skilled information
technology workers; and
(C) the relative efficacy of programs in the United
States and foreign countries to train information technology
workers, with special emphasis on programs that provide
for secondary education or postsecondary education in a
program other than a 4-year baccalaureate program
(including associate degree programs and graduate degree
programs).
(3) PUBLIC HEARINGS.—As part of the study conducted
under this subsection, the Commission shall hold public hearings in each region of the United States concerning the issues
referred to in subparagraphs (A) and (B) of paragraph (2).
(4) EXISTING INFORMATION.—To the extent practicable, in
carrying out the study under this subsection, the Commission
shall identify and use existing information related to the issues
referred to in subparagraphs (A) and (B) of paragraph (2).
(5) CONSULTATION WITH CHIEF INFORMATION OFFICERS
COUNCIL.—In carrying out the study under this subsection,
the Commission shall consult with the Chief Information Officers Council established under Executive Order No. 13011.
(b) REPORT.—Not later than 6 months after the first meeting
of the Commission, the Commission shall submit a report to the
President and the Congress that shall contain a detailed statement
of the findings and conclusions of the Commission resulting from
the study, together with its recommendations for such legislation
and administrative actions as the Commission considers to be appropriate.
(c) FACILITATION OF EXCHANGE OF INFORMATION.—In carrying
out the study under subsection (a), the Commission shall, to the
extent practicable, facilitate the exchange of information concerning
the issues that are the subject of the study among—
(1) officials of the Federal Government and the governments of States and political subdivisions of States; and
(2) educators from Federal, State, and local institutions
of higher education and secondary schools.
SEC. 336. POWERS OF THE COMMISSION.

(a) HEARINGS.—The Commission may hold such hearings, sit
and act at such times and places, take such testimony, and receive
such evidence as the Commission considers advisable to carry out
the purposes of this subtitle.
(b) INFORMATION FROM FEDERAL AGENCIES.—The Commission
may secure directly from any Federal department or agency such
information as the Commission considers necessary to carry out
the provisions of this subtitle. Upon request of the Chairperson
of the Commission, the head of such department or agency shall
furnish such information to the Commission.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1091

(c) POSTAL SERVICES.—The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Federal Government.
(d) GIFTS.—The Commission may accept, use, and dispose of
gifts or donations of services or property.
SEC. 337. COMMISSION PERSONNEL MATTERS.

(a) COMPENSATION OF MEMBERS.—Except as provided in subsection (b), each member of the Commission who is not an officer
or employee of the Federal Government shall serve without compensation. All members of the Commission who are officers or
employees of the United States shall serve without compensation
in addition to that received for their services as officers or employees
of the United States.
(b) TRAVEL EXPENSES.—The members of the Commission shall
be allowed travel expenses, including per diem in lieu of subsistence,
at rates authorized for employees of agencies under subchapter
I of chapter 57 of title 5, United States Code, while away from
their homes or regular places of business in the performance of
services for the Commission.
(c) STAFF.—
(1) IN GENERAL.—The Chairperson of the Commission may,
without regard to the civil service laws and regulations, appoint
and terminate an executive director and such other additional
personnel as may be necessary to enable the Commission to
perform its duties. The employment of an executive director
shall be subject to confirmation by the Commission.
(2) COMPENSATION.—The Chairperson of the Commission
may fix the compensation of the executive director and other
personnel without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of title 5, United States Code,
relating to classification of positions and General Schedule pay
rates, except that the rate of pay for the executive director
and other personnel may not exceed the rate payable for level
V of the Executive Schedule under section 5316 of such title.
(d) DETAIL OF GOVERNMENT EMPLOYEES.—Any Federal Government employee may be detailed to the Commission without
reimbursement, and such detail shall be without interruption or
loss of civil service status or privilege.
(e) PROCUREMENT OF TEMPORARY AND INTERMITTENT SERVICES.—The Chairperson of the Commission may procure temporary
and intermittent services under section 3109(b) of title 5, United
States Code, at rates for individuals that do not exceed the daily
equivalent of the annual rate of basic pay prescribed for level
V of the Executive Schedule under section 5316 of such title.
SEC. 338. TERMINATION OF THE COMMISSION.

The Commission shall terminate on the date that is 90 days
after the date on which the Commission submits its report under
section 335(b).
SEC. 339. AUTHORIZATION OF APPROPRIATIONS.

(a) IN GENERAL.—There are authorized to be appropriated such
sums as may be necessary for fiscal year 1999 to the Commission
to carry out the purposes of this subtitle.
(b) AVAILABILITY.—Any sums appropriated under the authorization contained in this section shall remain available, without fiscal
year limitation, until expended.

112 STAT. 1092

PUBLIC LAW 105–220—AUG. 7, 1998

Subtitle D—Application of Civil Rights and
Labor-Management Laws to the Smithsonian Institution
SEC. 341. APPLICATION OF CIVIL RIGHTS AND LABOR-MANAGEMENT
LAWS TO THE SMITHSONIAN INSTITUTION.

(a) PROHIBITION ON EMPLOYMENT DISCRIMINATION ON BASIS
RACE, COLOR, RELIGION, SEX, AND NATIONAL ORIGIN.—Section
717(a) of the Civil Rights Act of 1964 (42 U.S.C. 2000e–16(a))
is amended by inserting ‘‘in the Smithsonian Institution,’’ before
‘‘and in the Government Printing Office,’’.
(b) PROHIBITION ON EMPLOYMENT DISCRIMINATION ON BASIS
OF AGE.—Section 15(a) of the Age Discrimination in Employment
Act of 1967 (29 U.S.C. 633a(a)) is amended by inserting ‘‘in the
Smithsonian Institution,’’ before ‘‘and in the Government Printing
Office,’’.
(c) PROHIBITION ON EMPLOYMENT DISCRIMINATION ON BASIS
OF DISABILITY.—Section 501 of the Rehabilitation Act of 1973 (29
U.S.C. 791) is amended—
(1) in the fourth sentence of subsection (a), in paragraph
(1), by inserting ‘‘and the Smithsonian Institution’’ after
‘‘Government’’;
(2) in the first sentence of subsection (b)—
(A) by inserting ‘‘and the Smithsonian Institution’’ after
‘‘in the executive branch’’; and
(B) by striking ‘‘such department, agency, or
instrumentality’’ and inserting ‘‘such department, agency,
instrumentality, or Institution’’; and
(3) in subsection (d), by inserting ‘‘and the Smithsonian
Institution’’ after ‘‘instrumentality’’.
(d) APPLICATION.—The amendments made by subsections (a),
(b), and (c) shall take effect on the date of enactment of this
Act and shall apply to and may be raised in any administrative
or judicial claim or action brought before such date of enactment
but pending on such date, and any administrative or judicial claim
or action brought after such date regardless of whether the claim
or action arose prior to such date, if the claim or action was
brought within the applicable statute of limitations.
(e) LABOR-MANAGEMENT LAWS.—Section 7103(a)(3) of title 5,
United States Code, is amended—
(1) by striking ‘‘and’’ after ‘‘Library of Congress,’’; and
(2) by inserting ‘‘and the Smithsonian Institution’’ after
‘‘Government Printing Office,’’.
OF

Effective date.
29 USC 633a
note.

Rehabilitation
Act Amendments
of 1998.
29 USC 701 note.

TITLE IV—REHABILITATION ACT
AMENDMENTS OF 1998
SEC. 401. SHORT TITLE.

This title may be cited as the ‘‘Rehabilitation Act Amendments
of 1998’’.
SEC. 402. TITLE.
29 USC 701 note
prec.

The title of the Rehabilitation Act of 1973 is amended by
striking ‘‘to establish special responsibilities’’ and all that follows

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1093

and inserting the following: ‘‘to create linkage between State vocational rehabilitation programs and workforce investment activities
carried out under title I of the Workforce Investment Act of 1998,
to establish special responsibilities for the Secretary of Education
for coordination of all activities with respect to individuals with
disabilities within and across programs administered by the Federal
Government, and for other purposes.’’.
SEC. 403. GENERAL PROVISIONS.

The Rehabilitation Act of 1973 is amended by striking the
matter preceding title I and inserting the following:
‘‘SHORT

TITLE; TABLE OF CONTENTS

‘‘SEC. 1. (a) SHORT TITLE.—This Act may be cited as the
‘Rehabilitation Act of 1973’.
‘‘(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.

Short title; table of contents.
Findings; purpose; policy.
Rehabilitation Services Administration.
Advance funding.
Joint funding.
Definitions.
Allotment percentage.
Nonduplication.
Application of other laws.
Administration of the Act.
Reports.
Evaluation.
Information clearinghouse.
Transfer of funds.
State administration.
Review of applications.
Carryover.
Client assistance information.
Traditionally underserved populations.
‘‘TITLE I—VOCATIONAL REHABILITATION SERVICES

‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.

100.
101.
102.
103.
104.
105.
106.
107.
108.
109.

‘‘PART A—GENERAL PROVISIONS
Declaration of policy; authorization of appropriations.
State plans.
Eligibility and individualized plan for employment.
Vocational rehabilitation services.
Non-Federal share for establishment of program.
State Rehabilitation Council.
Evaluation standards and performance indicators.
Monitoring and review.
Expenditure of certain amounts.
Training of employers with respect to Americans with Disabilities Act of
1990.

‘‘PART B—BASIC VOCATIONAL REHABILITATION SERVICES
‘‘Sec. 110. State allotments.
‘‘Sec. 111. Payments to States.
‘‘Sec. 112. Client assistance program.
‘‘PART C—AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES
‘‘Sec. 121. Vocational rehabilitation services grants.
‘‘PART D—VOCATIONAL REHABILITATION SERVICES CLIENT INFORMATION
‘‘Sec. 131. Data sharing.
‘‘TITLE II—RESEARCH AND TRAINING
‘‘Sec. 200. Declaration of purpose.

29 USC 701 and
note, 702–707,
709–718, 718a,
718b.
29 USC 701 note.

112 STAT. 1094
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.

PUBLIC LAW 105–220—AUG. 7, 1998
201.
202.
203.
204.
205.

Authorization of appropriations.
National Institute on Disability and Rehabilitation Research.
Interagency Committee.
Research and other covered activities.
Rehabilitation Research Advisory Council.

‘‘TITLE III—PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND
DEMONSTRATIONS
‘‘Sec. 301. Declaration of purpose and competitive basis of grants and contracts.
‘‘Sec. 302. Training.
‘‘Sec. 303. Demonstration and training programs.
‘‘Sec. 304. Migrant and seasonal farmworkers.
‘‘Sec. 305. Recreational programs.
‘‘Sec. 306. Measuring of project outcomes and performance.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.

400.
401.
402.
403.
404.
405.

‘‘TITLE IV—NATIONAL COUNCIL ON DISABILITY
Establishment of National Council on Disability.
Duties of National Council.
Compensation of National Council members.
Staff of National Council.
Administrative powers of National Council.
Authorization of Appropriations.

‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.

501.
502.
503.
504.
505.
506.
507.
508.
509.

‘‘TITLE V—RIGHTS AND ADVOCACY
Employment of individuals with disabilities.
Architectural and Transportation Barriers Compliance Board.
Employment under Federal contracts.
Nondiscrimination under Federal grants and programs.
Remedies and attorneys’ fees.
Secretarial responsibilities.
Interagency Disability Coordinating Council.
Electronic and information technology regulations.
Protection and advocacy of individual rights.

‘‘TITLE VI—EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH
DISABILITIES
‘‘Sec. 601. Short title.
‘‘PART A—PROJECTS WITH INDUSTRY
‘‘Sec. 611. Projects with industry.
‘‘Sec. 612. Authorization of appropriations.
‘‘PART B—SUPPORTED EMPLOYMENT SERVICES FOR INDIVIDUALS WITH
SIGNIFICANT DISABILITIES
‘‘Sec. 621. Purpose.
‘‘Sec. 622. Allotments.
‘‘Sec. 623. Availability of services.
‘‘Sec. 624. Eligibility.
‘‘Sec. 625. State plan.
‘‘Sec. 626. Restriction.
‘‘Sec. 627. Savings provision.
‘‘Sec. 628. Authorization of appropriations.

THE

MOST

‘‘TITLE VII—INDEPENDENT LIVING SERVICES AND CENTERS FOR
INDEPENDENT LIVING
‘‘CHAPTER 1—INDIVIDUALS WITH SIGNIFICANT DISABILITIES
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.
‘‘Sec.

701.
702.
703.
704.
705.
706.

‘‘PART A—GENERAL PROVISIONS
Purpose.
Definitions.
Eligibility for receipt of services.
State plan.
Statewide Independent Living Council.
Responsibilities of the Commissioner.

‘‘PART B—INDEPENDENT LIVING SERVICES
‘‘Sec. 711. Allotments.
‘‘Sec. 712. Payments to States from allotments.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1095

‘‘Sec. 713. Authorized uses of funds.
‘‘Sec. 714. Authorization of appropriations.
‘‘PART C—CENTERS FOR INDEPENDENT LIVING
‘‘Sec. 721. Program authorization.
‘‘Sec. 722. Grants to centers for independent living in States in which Federal funding exceeds State funding.
‘‘Sec. 723. Grants to centers for independent living in States in which State funding
equals or exceeds Federal funding.
‘‘Sec. 724. Centers operated by State agencies.
‘‘Sec. 725. Standards and assurances for centers for independent living.
‘‘Sec. 726. Definitions.
‘‘Sec. 727. Authorization of appropriations.
‘‘CHAPTER 2—INDEPENDENT LIVING SERVICES
BLIND
‘‘Sec. 751. Definition.
‘‘Sec. 752. Program of grants.
‘‘Sec. 753. Authorization of appropriations.

‘‘FINDINGS;

FOR

OLDER INDIVIDUALS WHO ARE

PURPOSE; POLICY

‘‘SEC. 2. (a) FINDINGS.—Congress finds that—
‘‘(1) millions of Americans have one or more physical or
mental disabilities and the number of Americans with such
disabilities is increasing;
‘‘(2) individuals with disabilities constitute one of the most
disadvantaged groups in society;
‘‘(3) disability is a natural part of the human experience
and in no way diminishes the right of individuals to—
‘‘(A) live independently;
‘‘(B) enjoy self-determination;
‘‘(C) make choices;
‘‘(D) contribute to society;
‘‘(E) pursue meaningful careers; and
‘‘(F) enjoy full inclusion and integration in the economic, political, social, cultural, and educational mainstream of American society;
‘‘(4) increased employment of individuals with disabilities
can be achieved through implementation of statewide workforce
investment systems under title I of the Workforce Investment
Act of 1998 that provide meaningful and effective participation
for individuals with disabilities in workforce investment activities and activities carried out under the vocational rehabilitation program established under title I, and through the provision of independent living services, support services, and meaningful opportunities for employment in integrated work settings
through the provision of reasonable accommodations;
‘‘(5) individuals with disabilities continually encounter various forms of discrimination in such critical areas as employment, housing, public accommodations, education, transportation, communication, recreation, institutionalization, health
services, voting, and public services; and
‘‘(6) the goals of the Nation properly include the goal of
providing individuals with disabilities with the tools necessary
to—
‘‘(A) make informed choices and decisions; and
‘‘(B) achieve equality of opportunity, full inclusion and
integration in society, employment, independent living, and
economic and social self-sufficiency, for such individuals.
‘‘(b) PURPOSE.—The purposes of this Act are—

29 USC 701.

112 STAT. 1096

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(1) to empower individuals with disabilities to maximize
employment, economic self-sufficiency, independence, and inclusion and integration into society, through—
‘‘(A) statewide workforce investment systems implemented in accordance with title I of the Workforce Investment Act of 1998 that include, as integral components,
comprehensive and coordinated state-of-the-art programs
of vocational rehabilitation;
‘‘(B) independent living centers and services;
‘‘(C) research;
‘‘(D) training;
‘‘(E) demonstration projects; and
‘‘(F) the guarantee of equal opportunity; and
‘‘(2) to ensure that the Federal Government plays a leadership role in promoting the employment of individuals with
disabilities, especially individuals with significant disabilities,
and in assisting States and providers of services in fulfilling
the aspirations of such individuals with disabilities for meaningful and gainful employment and independent living.
‘‘(c) POLICY.—It is the policy of the United States that all
programs, projects, and activities receiving assistance under this
Act shall be carried out in a manner consistent with the principles
of—
‘‘(1) respect for individual dignity, personal responsibility,
self-determination, and pursuit of meaningful careers, based
on informed choice, of individuals with disabilities;
‘‘(2) respect for the privacy, rights, and equal access (including the use of accessible formats), of the individuals;
‘‘(3) inclusion, integration, and full participation of the
individuals;
‘‘(4) support for the involvement of an individual’s representative if an individual with a disability requests, desires,
or needs such support; and
‘‘(5) support for individual and systemic advocacy and
community involvement.
‘‘REHABILITATION
Establishment.
President.
29 USC 702.

SERVICES ADMINISTRATION

‘‘SEC. 3. (a) There is established in the Office of the Secretary
a Rehabilitation Services Administration which shall be headed
by a Commissioner (hereinafter in this Act referred to as the
‘Commissioner’) appointed by the President by and with the advice
and consent of the Senate. Except for titles IV and V and as
otherwise specifically provided in this Act, such Administration
shall be the principal agency, and the Commissioner shall be the
principal officer, of such Department for carrying out this Act.
The Commissioner shall be an individual with substantial experience in rehabilitation and in rehabilitation program management.
In the performance of the functions of the office, the Commissioner
shall be directly responsible to the Secretary or to the Under Secretary or an appropriate Assistant Secretary of such Department,
as designated by the Secretary. The functions of the Commissioner
shall not be delegated to any officer not directly responsible, both
with respect to program operation and administration, to the
Commissioner. Any reference in this Act to duties to be carried
out by the Commissioner shall be considered to be a reference
to duties to be carried out by the Secretary acting through the
Commissioner. In carrying out any of the functions of the office

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1097

under this Act, the Commissioner shall be guided by general policies
of the National Council on Disability established under title IV
of this Act.
‘‘(b) The Secretary shall take whatever action is necessary
to ensure that funds appropriated pursuant to this Act are expended
only for the programs, personnel, and administration of programs
carried out under this Act.
‘‘ADVANCE

FUNDING

‘‘SEC. 4. (a) For the purpose of affording adequate notice of
funding available under this Act, appropriations under this Act
are authorized to be included in the appropriation Act for the
fiscal year preceding the fiscal year for which they are available
for obligation.
‘‘(b) In order to effect a transition to the advance funding
method of timing appropriation action, the authority provided by
subsection (a) of this section shall apply notwithstanding that its
initial application will result in the enactment in the same year
(whether in the same appropriation Act or otherwise) of two separate appropriations, one for the then current fiscal year and one
for the succeeding fiscal year.
‘‘JOINT

29 USC 703.

FUNDING

‘‘SEC. 5. Pursuant to regulations prescribed by the President,
and to the extent consistent with the other provisions of this Act,
where funds are provided for a single project by more than one
Federal agency to an agency or organization assisted under this
Act, the Federal agency principally involved may be designated
to act for all in administering the funds provided, and, in such
cases, a single non-Federal share requirement may be established
according to the proportion of funds advanced by each agency.
When the principal agency involved is the Rehabilitation Services
Administration, it may waive any grant or contract requirement
(as defined by such regulations) under or pursuant to any law
other than this Act, which requirement is inconsistent with the
similar requirements of the administering agency under or pursuant
to this Act.

Regulations.
29 USC 704.

‘‘DEFINITIONS
‘‘SEC. 6. For the purposes of this Act:
‘‘(1) The term ‘administrative costs’ means expenditures
incurred in the performance of administrative functions under
the vocational rehabilitation program carried out under title
I, including expenses related to program planning, development,
monitoring, and evaluation, including expenses for—
‘‘(A) quality assurance;
‘‘(B) budgeting, accounting, financial management,
information systems, and related data processing;
‘‘(C) providing information about the program to the
public;
‘‘(D) technical assistance and support services to other
State agencies, private nonprofit organizations, and
businesses and industries, except for technical assistance
and support services described in section 103(b)(5);

29 USC 705.

112 STAT. 1098

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(E) the State Rehabilitation Council and other
advisory committees;
‘‘(F) professional organization membership dues for
designated State unit employees;
‘‘(G) the removal of architectural barriers in State vocational rehabilitation agency offices and State operated
rehabilitation facilities;
‘‘(H) operating and maintaining designated State unit
facilities, equipment, and grounds;
‘‘(I) supplies;
‘‘(J) administration of the comprehensive system of
personnel development described in section 101(a)(7),
including personnel administration, administration of
affirmative action plans, and training and staff development;
‘‘(K) administrative salaries, including clerical and
other support staff salaries, in support of these administrative functions;
‘‘(L) travel costs related to carrying out the program,
other than travel costs related to the provision of services;
‘‘(M) costs incurred in conducting reviews of rehabilitation counselor or coordinator determinations under section
102(c); and
‘‘(N) legal expenses required in the administration of
the program.
‘‘(2) ASSESSMENT FOR DETERMINING ELIGIBILITY AND VOCATIONAL REHABILITATION NEEDS.—The term ‘assessment for
determining eligibility and vocational rehabilitation needs’
means, as appropriate in each case—
‘‘(A)(i) a review of existing data—
‘‘(I) to determine whether an individual is eligible
for vocational rehabilitation services; and
‘‘(II) to assign priority for an order of selection
described in section 101(a)(5)(A) in the States that
use an order of selection pursuant to section
101(a)(5)(A); and
‘‘(ii) to the extent necessary, the provision of appropriate assessment activities to obtain necessary additional
data to make such determination and assignment;
‘‘(B) to the extent additional data is necessary to make
a determination of the employment outcomes, and the
objectives, nature, and scope of vocational rehabilitation
services, to be included in the individualized plan for
employment of an eligible individual, a comprehensive
assessment to determine the unique strengths, resources,
priorities, concerns, abilities, capabilities, interests, and
informed choice, including the need for supported employment, of the eligible individual, which comprehensive
assessment—
‘‘(i) is limited to information that is necessary to
identify the rehabilitation needs of the individual and
to develop the individualized plan for employment of
the eligible individual;
‘‘(ii) uses, as a primary source of such information,
to the maximum extent possible and appropriate and
in accordance with confidentiality requirements—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1099

‘‘(I) existing information obtained for the purposes of determining the eligibility of the individual and assigning priority for an order of selection
described in section 101(a)(5)(A) for the individual;
and
‘‘(II) such information as can be provided by
the individual and, where appropriate, by the family of the individual;
‘‘(iii) may include, to the degree needed to make
such a determination, an assessment of the personality,
interests, interpersonal skills, intelligence and related
functional capacities, educational achievements, work
experience, vocational aptitudes, personal and social
adjustments, and employment opportunities of the
individual, and the medical, psychiatric, psychological,
and other pertinent vocational, educational, cultural,
social, recreational, and environmental factors, that
affect the employment and rehabilitation needs of the
individual; and
‘‘(iv) may include, to the degree needed, an
appraisal of the patterns of work behavior of the
individual and services needed for the individual to
acquire occupational skills, and to develop work attitudes, work habits, work tolerance, and social and
behavior patterns necessary for successful job performance, including the utilization of work in real job situations to assess and develop the capacities of the individual to perform adequately in a work environment;
‘‘(C) referral, for the provision of rehabilitation technology services to the individual, to assess and develop
the capacities of the individual to perform in a work
environment; and
‘‘(D) an exploration of the individual’s abilities,
capabilities, and capacity to perform in work situations,
which shall be assessed periodically during trial work
experiences, including experiences in which the individual
is provided appropriate supports and training.
‘‘(3) ASSISTIVE TECHNOLOGY DEVICE.—The term ‘assistive
technology device’ has the meaning given such term in section
3(2) of the Technology-Related Assistance for Individuals With
Disabilities Act of 1988 (29 U.S.C. 2202(2)), except that the
reference in such section to the term ‘individuals with disabilities’ shall be deemed to mean more than one individual with
a disability as defined in paragraph (20)(A).
‘‘(4) ASSISTIVE TECHNOLOGY SERVICE.—The term ‘assistive
technology service’ has the meaning given such term in section
3(3) of the Technology-Related Assistance for Individuals With
Disabilities Act of 1988 (29 U.S.C. 2202(3)), except that the
reference in such section—
‘‘(A) to the term ‘individual with a disability’ shall
be deemed to mean an individual with a disability, as
defined in paragraph (20)(A); and
‘‘(B) to the term ‘individuals with disabilities’ shall
be deemed to mean more than one such individual.
‘‘(5) COMMUNITY REHABILITATION PROGRAM.—The term
‘community rehabilitation program’ means a program that provides directly or facilitates the provision of vocational

112 STAT. 1100

PUBLIC LAW 105–220—AUG. 7, 1998
rehabilitation services to individuals with disabilities, and that
provides, singly or in combination, for an individual with a
disability to enable the individual to maximize opportunities
for employment, including career advancement—
‘‘(A) medical, psychiatric, psychological, social, and
vocational services that are provided under one management;
‘‘(B) testing, fitting, or training in the use of prosthetic
and orthotic devices;
‘‘(C) recreational therapy;
‘‘(D) physical and occupational therapy;
‘‘(E) speech, language, and hearing therapy;
‘‘(F) psychiatric, psychological, and social services,
including positive behavior management;
‘‘(G) assessment for determining eligibility and vocational rehabilitation needs;
‘‘(H) rehabilitation technology;
‘‘(I) job development, placement, and retention services;
‘‘(J) evaluation or control of specific disabilities;
‘‘(K) orientation and mobility services for individuals
who are blind;
‘‘(L) extended employment;
‘‘(M) psychosocial rehabilitation services;
‘‘(N) supported employment services and extended
services;
‘‘(O) services to family members when necessary to
the vocational rehabilitation of the individual;
‘‘(P) personal assistance services; or
‘‘(Q) services similar to the services described in one
of subparagraphs (A) through (P).
‘‘(6) CONSTRUCTION; COST OF CONSTRUCTION.—
‘‘(A) CONSTRUCTION.—The term ‘construction’ means—
‘‘(i) the construction of new buildings;
‘‘(ii) the acquisition, expansion, remodeling, alteration, and renovation of existing buildings; and
‘‘(iii) initial equipment of buildings described in
clauses (i) and (ii).
‘‘(B) COST OF CONSTRUCTION.—The term ‘cost of
construction’ includes architects’ fees and the cost of
acquisition of land in connection with construction but
does not include the cost of offsite improvements.
‘‘(7) CRIMINAL ACT.—The term ‘criminal act’ means any
crime, including an act, omission, or possession under the laws
of the United States or a State or unit of general local government, which poses a substantial threat of personal injury, notwithstanding that by reason of age, insanity, or intoxication
or otherwise the person engaging in the act, omission, or possession was legally incapable of committing a crime.
‘‘(8) DESIGNATED STATE AGENCY; DESIGNATED STATE UNIT.—
‘‘(A) DESIGNATED STATE AGENCY.—The term ‘designated
State agency’ means an agency designated under section
101(a)(2)(A).
‘‘(B) DESIGNATED STATE UNIT.—The term ‘designated
State unit’ means—
‘‘(i) any State agency unit required under section
101(a)(2)(B)(ii); or

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1101

‘‘(ii) in cases in which no such unit is so required,
the State agency described in section 101(a)(2)(B)(i).
‘‘(9) DISABILITY.—The term ‘disability’ means—
‘‘(A) except as otherwise provided in subparagraph (B),
a physical or mental impairment that constitutes or results
in a substantial impediment to employment; or
‘‘(B) for purposes of sections 2, 14, and 15, and titles
II, IV, V, and VII, a physical or mental impairment that
substantially limits one or more major life activities.
‘‘(10) DRUG AND ILLEGAL USE OF DRUGS.—
‘‘(A) DRUG.—The term ‘drug’ means a controlled substance, as defined in schedules I through V of section
202 of the Controlled Substances Act (21 U.S.C. 812).
‘‘(B) ILLEGAL USE OF DRUGS.—The term ‘illegal use
of drugs’ means the use of drugs, the possession or distribution of which is unlawful under the Controlled Substances
Act. Such term does not include the use of a drug taken
under supervision by a licensed health care professional,
or other uses authorized by the Controlled Substances Act
or other provisions of Federal law.
‘‘(11) EMPLOYMENT OUTCOME.—The term ‘employment outcome’ means, with respect to an individual—
‘‘(A) entering or retaining full-time or, if appropriate,
part-time competitive employment in the integrated labor
market;
‘‘(B) satisfying the vocational outcome of supported
employment; or
‘‘(C) satisfying any other vocational outcome the Secretary may determine to be appropriate (including satisfying the vocational outcome of self-employment, telecommuting, or business ownership),
in a manner consistent with this Act.
‘‘(12) ESTABLISHMENT OF A COMMUNITY REHABILITATION
PROGRAM.—The term ‘establishment of a community rehabilitation program’ includes the acquisition, expansion, remodeling,
or alteration of existing buildings necessary to adapt them
to community rehabilitation program purposes or to increase
their effectiveness for such purposes (subject, however, to such
limitations as the Secretary may determine, in accordance with
regulations the Secretary shall prescribe, in order to prevent
impairment of the objectives of, or duplication of, other Federal
laws providing Federal assistance in the construction of facilities for community rehabilitation programs), and may include
such additional equipment and staffing as the Commissioner
considers appropriate.
‘‘(13) EXTENDED SERVICES.—The term ‘extended services’
means ongoing support services and other appropriate services,
needed to support and maintain an individual with a most
significant disability in supported employment, that—
‘‘(A) are provided singly or in combination and are
organized and made available in such a way as to assist
an eligible individual in maintaining supported employment;
‘‘(B) are based on a determination of the needs of
an eligible individual, as specified in an individualized
plan for employment; and

Regulations.

112 STAT. 1102

Regulations.

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(C) are provided by a State agency, a nonprofit private
organization, employer, or any other appropriate resource,
after an individual has made the transition from support
provided by the designated State unit.
‘‘(14) FEDERAL SHARE.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
term ‘Federal share’ means 78.7 percent.
‘‘(B) EXCEPTION.—The term ‘Federal share’ means the
share specifically set forth in section 111(a)(3), except that
with respect to payments pursuant to part B of title I
to any State that are used to meet the costs of construction
of those rehabilitation facilities identified in section
103(b)(2) in such State, the Federal share shall be the
percentages determined in accordance with the provisions
of section 111(a)(3) applicable with respect to the State.
‘‘(C) RELATIONSHIP TO EXPENDITURES BY A POLITICAL
SUBDIVISION.—For the purpose of determining the non-Federal share with respect to a State, expenditures by a political subdivision thereof or by a local agency shall be
regarded as expenditures by such State, subject to such
limitations and conditions as the Secretary shall by regulation prescribe.
‘‘(15) GOVERNOR.—The term ‘Governor’ means a chief
executive officer of a State.
‘‘(16) IMPARTIAL HEARING OFFICER.—
‘‘(A) IN GENERAL.—The term ‘impartial hearing officer’
means an individual—
‘‘(i) who is not an employee of a public agency
(other than an administrative law judge, hearing examiner, or employee of an institution of higher education);
‘‘(ii) who is not a member of the State Rehabilitation Council described in section 105;
‘‘(iii) who has not been involved previously in the
vocational rehabilitation of the applicant or client;
‘‘(iv) who has knowledge of the delivery of vocational rehabilitation services, the State plan under section 101, and the Federal and State rules governing
the provision of such services and training with respect
to the performance of official duties; and
‘‘(v) who has no personal or financial interest that
would be in conflict with the objectivity of the individual.
‘‘(B) CONSTRUCTION.—An individual shall not be
considered to be an employee of a public agency for purposes of subparagraph (A)(i) solely because the individual
is paid by the agency to serve as a hearing officer.
‘‘(17) INDEPENDENT LIVING CORE SERVICES.—The term
‘independent living core services’ means—
‘‘(A) information and referral services;
‘‘(B) independent living skills training;
‘‘(C) peer counseling (including cross-disability peer
counseling); and
‘‘(D) individual and systems advocacy.
‘‘(18) INDEPENDENT LIVING SERVICES.—The term ‘independent living services’ includes—
‘‘(A) independent living core services; and

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1103

‘‘(B)(i) counseling services, including psychological,
psychotherapeutic, and related services;
‘‘(ii) services related to securing housing or shelter,
including services related to community group living, and
supportive of the purposes of this Act and of the titles
of this Act, and adaptive housing services (including appropriate accommodations to and modifications of any space
used to serve, or occupied by, individuals with disabilities);
‘‘(iii) rehabilitation technology;
‘‘(iv) mobility training;
‘‘(v) services and training for individuals with cognitive
and sensory disabilities, including life skills training, and
interpreter and reader services;
‘‘(vi) personal assistance services, including attendant
care and the training of personnel providing such services;
‘‘(vii) surveys, directories, and other activities to identify appropriate housing, recreation opportunities, and
accessible transportation, and other support services;
‘‘(viii) consumer information programs on rehabilitation
and independent living services available under this Act,
especially for minorities and other individuals with disabilities who have traditionally been unserved or underserved
by programs under this Act;
‘‘(ix) education and training necessary for living in
a community and participating in community activities;
‘‘(x) supported living;
‘‘(xi) transportation, including referral and assistance
for such transportation and training in the use of public
transportation vehicles and systems;
‘‘(xii) physical rehabilitation;
‘‘(xiii) therapeutic treatment;
‘‘(xiv) provision of needed prostheses and other appliances and devices;
‘‘(xv) individual and group social and recreational services;
‘‘(xvi) training to develop skills specifically designed
for youths who are individuals with disabilities to promote
self-awareness and esteem, develop advocacy and selfempowerment skills, and explore career options;
‘‘(xvii) services for children;
‘‘(xviii) services under other Federal, State, or local
programs designed to provide resources, training, counseling, or other assistance, of substantial benefit in enhancing
the independence, productivity, and quality of life of
individuals with disabilities;
‘‘(xix) appropriate preventive services to decrease the
need of individuals assisted under this Act for similar
services in the future;
‘‘(xx) community awareness programs to enhance the
understanding and integration into society of individuals
with disabilities; and
‘‘(xxi) such other services as may be necessary and
not inconsistent with the provisions of this Act.
‘‘(19) INDIAN; AMERICAN INDIAN; INDIAN AMERICAN; INDIAN
TRIBE.—

112 STAT. 1104

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(A) IN GENERAL.—The terms ‘Indian’, ‘American
Indian’, and ‘Indian American’ mean an individual who
is a member of an Indian tribe.
‘‘(B) INDIAN TRIBE.—The term ‘Indian tribe’ means any
Federal or State Indian tribe, band, rancheria, pueblo,
colony, or community, including any Alaskan native village
or regional village corporation (as defined in or established
pursuant to the Alaska Native Claims Settlement Act).
‘‘(20) INDIVIDUAL WITH A DISABILITY.—
‘‘(A) IN GENERAL.—Except as otherwise provided in
subparagraph (B), the term ‘individual with a disability’
means any individual who—
‘‘(i) has a physical or mental impairment which
for such individual constitutes or results in a substantial impediment to employment; and
‘‘(ii) can benefit in terms of an employment outcome from vocational rehabilitation services provided
pursuant to title I, III, or VI.
‘‘(B) CERTAIN PROGRAMS; LIMITATIONS ON MAJOR LIFE
ACTIVITIES.—Subject to subparagraphs (C), (D), (E), and
(F), the term ‘individual with a disability’ means, for purposes of sections 2, 14, and 15, and titles II, IV, V, and
VII of this Act, any person who—
‘‘(i) has a physical or mental impairment which
substantially limits one or more of such person’s major
life activities;
‘‘(ii) has a record of such an impairment; or
‘‘(iii) is regarded as having such an impairment.
‘‘(C) RIGHTS AND ADVOCACY PROVISIONS.—
‘‘(i) IN GENERAL; EXCLUSION OF INDIVIDUALS ENGAGING IN DRUG USE.—For purposes of title V, the term
‘individual with a disability’ does not include an
individual who is currently engaging in the illegal use
of drugs, when a covered entity acts on the basis of
such use.
‘‘(ii) EXCEPTION FOR INDIVIDUALS NO LONGER
ENGAGING IN DRUG USE.—Nothing in clause (i) shall
be construed to exclude as an individual with a disability an individual who—
‘‘(I) has successfully completed a supervised
drug rehabilitation program and is no longer
engaging in the illegal use of drugs, or has otherwise been rehabilitated successfully and is no
longer engaging in such use;
‘‘(II) is participating in a supervised rehabilitation program and is no longer engaging in such
use; or
‘‘(III) is erroneously regarded as engaging in
such use, but is not engaging in such use;
except that it shall not be a violation of this Act for
a covered entity to adopt or administer reasonable
policies or procedures, including but not limited to
drug testing, designed to ensure that an individual
described in subclause (I) or (II) is no longer engaging
in the illegal use of drugs.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1105

‘‘(iii) EXCLUSION FOR CERTAIN SERVICES.—Notwithstanding clause (i), for purposes of programs and activities providing health services and services provided
under titles I, II, and III, an individual shall not be
excluded from the benefits of such programs or activities on the basis of his or her current illegal use
of drugs if he or she is otherwise entitled to such
services.
‘‘(iv) DISCIPLINARY ACTION.—For purposes of programs and activities providing educational services,
local educational agencies may take disciplinary action
pertaining to the use or possession of illegal drugs
or alcohol against any student who is an individual
with a disability and who currently is engaging in
the illegal use of drugs or in the use of alcohol to
the same extent that such disciplinary action is taken
against students who are not individuals with disabilities. Furthermore, the due process procedures at section 104.36 of title 34, Code of Federal Regulations
(or any corresponding similar regulation or ruling)
shall not apply to such disciplinary actions.
‘‘(v) EMPLOYMENT; EXCLUSION OF ALCOHOLICS.—
For purposes of sections 503 and 504 as such sections
relate to employment, the term ‘individual with a
disability’ does not include any individual who is an
alcoholic whose current use of alcohol prevents such
individual from performing the duties of the job in
question or whose employment, by reason of such current alcohol abuse, would constitute a direct threat
to property or the safety of others.
‘‘(D) EMPLOYMENT; EXCLUSION OF INDIVIDUALS WITH
CERTAIN DISEASES OR INFECTIONS.—For the purposes of
sections 503 and 504, as such sections relate to employment, such term does not include an individual who has
a currently contagious disease or infection and who, by
reason of such disease or infection, would constitute a
direct threat to the health or safety of other individuals
or who, by reason of the currently contagious disease or
infection, is unable to perform the duties of the job.
‘‘(E) RIGHTS PROVISIONS; EXCLUSION OF INDIVIDUALS
ON BASIS OF HOMOSEXUALITY OR BISEXUALITY.—For the purposes of sections 501, 503, and 504—
‘‘(i) for purposes of the application of subparagraph
(B) to such sections, the term ‘impairment’ does not
include homosexuality or bisexuality; and
‘‘(ii) therefore the term ‘individual with a disability’
does not include an individual on the basis of homosexuality or bisexuality.
‘‘(F) RIGHTS PROVISIONS; EXCLUSION OF INDIVIDUALS
ON BASIS OF CERTAIN DISORDERS.—For the purposes of sections 501, 503, and 504, the term ‘individual with a disability’ does not include an individual on the basis of—
‘‘(i) transvestism, transsexualism, pedophilia,
exhibitionism, voyeurism, gender identity disorders not
resulting from physical impairments, or other sexual
behavior disorders;

112 STAT. 1106

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(ii) compulsive gambling, kleptomania, or pyromania; or
‘‘(iii) psychoactive substance use disorders resulting from current illegal use of drugs.
‘‘(G) INDIVIDUALS WITH DISABILITIES.—The term
‘individuals with disabilities’ means more than one individual with a disability.
‘‘(21) INDIVIDUAL WITH A SIGNIFICANT DISABILITY.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B) or (C), the term ‘individual with a significant disability’
means an individual with a disability—
‘‘(i) who has a severe physical or mental impairment which seriously limits one or more functional
capacities (such as mobility, communication, self-care,
self-direction, interpersonal skills, work tolerance, or
work skills) in terms of an employment outcome;
‘‘(ii) whose vocational rehabilitation can be
expected to require multiple vocational rehabilitation
services over an extended period of time; and
‘‘(iii) who has one or more physical or mental
disabilities resulting from amputation, arthritis,
autism, blindness, burn injury, cancer, cerebral palsy,
cystic fibrosis, deafness, head injury, heart disease,
hemiplegia, hemophilia, respiratory or pulmonary
dysfunction, mental retardation, mental illness, multiple sclerosis, muscular dystrophy, musculo-skeletal
disorders, neurological disorders (including stroke and
epilepsy), paraplegia, quadriplegia, and other spinal
cord conditions, sickle cell anemia, specific learning
disability, end-stage renal disease, or another disability
or combination of disabilities determined on the basis
of an assessment for determining eligibility and vocational rehabilitation needs described in subparagraphs
(A) and (B) of paragraph (2) to cause comparable
substantial functional limitation.
‘‘(B) INDEPENDENT LIVING SERVICES AND CENTERS FOR
INDEPENDENT LIVING.—For purposes of title VII, the term
‘individual with a significant disability’ means an individual with a severe physical or mental impairment whose
ability to function independently in the family or community or whose ability to obtain, maintain, or advance in
employment is substantially limited and for whom the
delivery of independent living services will improve the
ability to function, continue functioning, or move toward
functioning independently in the family or community or
to continue in employment, respectively.
‘‘(C) RESEARCH AND TRAINING.—For purposes of title
II, the term ‘individual with a significant disability’
includes an individual described in subparagraph (A) or
(B).
‘‘(D) INDIVIDUALS WITH SIGNIFICANT DISABILITIES.—The
term ‘individuals with significant disabilities’ means more
than one individual with a significant disability.
‘‘(E) INDIVIDUAL WITH A MOST SIGNIFICANT DISABILITY.—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1107

‘‘(i) IN GENERAL.—The term ‘individual with a most
significant disability’, used with respect to an individual in a State, means an individual with a significant
disability who meets criteria established by the State
under section 101(a)(5)(C).
‘‘(ii) INDIVIDUALS WITH THE MOST SIGNIFICANT
DISABILITIES.—The term ‘individuals with the most
significant disabilities’ means more than one individual
with a most significant disability.
‘‘(22) INDIVIDUAL’S REPRESENTATIVE; APPLICANT’S REPRESENTATIVE.—The terms ‘individual’s representative’ and
‘applicant’s representative’ mean a parent, a family member,
a guardian, an advocate, or an authorized representative of
an individual or applicant, respectively.
‘‘(23) INSTITUTION OF HIGHER EDUCATION.—The term
‘institution of higher education’ has the meaning given the
term in section 1201(a) of the Higher Education Act of 1965
(20 U.S.C. 1141(a)).
‘‘(24) LOCAL AGENCY.—The term ‘local agency’ means an
agency of a unit of general local government or of an Indian
tribe (or combination of such units or tribes) which has an
agreement with the designated State agency to conduct a vocational rehabilitation program under the supervision of such
State agency in accordance with the State plan approved under
section 101. Nothing in the preceding sentence of this paragraph or in section 101 shall be construed to prevent the
local agency from arranging to utilize another local public or
nonprofit agency to provide vocational rehabilitation services
if such an arrangement is made part of the agreement specified
in this paragraph.
‘‘(25) LOCAL WORKFORCE INVESTMENT BOARD.—The term
‘local workforce investment board’ means a local workforce
investment board established under section 117 of the
Workforce Investment Act of 1998.
‘‘(26) NONPROFIT.—The term ‘nonprofit’, when used with
respect to a community rehabilitation program, means a
community rehabilitation program carried out by a corporation
or association, no part of the net earnings of which inures,
or may lawfully inure, to the benefit of any private shareholder
or individual and the income of which is exempt from taxation
under section 501(c)(3) of the Internal Revenue Code of 1986.
‘‘(27) ONGOING SUPPORT SERVICES.—The term ‘ongoing support services’ means services—
‘‘(A) provided to individuals with the most significant
disabilities;
‘‘(B) provided, at a minimum, twice monthly—
‘‘(i) to make an assessment, regarding the employment situation, at the worksite of each such individual
in supported employment, or, under special circumstances, especially at the request of the client,
off site; and
‘‘(ii) based on the assessment, to provide for the
coordination or provision of specific intensive services,
at or away from the worksite, that are needed to maintain employment stability; and
‘‘(C) consisting of—

112 STAT. 1108

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(i) a particularized assessment supplementary to
the comprehensive assessment described in paragraph
(2)(B);
‘‘(ii) the provision of skilled job trainers who accompany the individual for intensive job skill training at
the worksite;
‘‘(iii) job development, job retention, and placement
services;
‘‘(iv) social skills training;
‘‘(v) regular observation or supervision of the
individual;
‘‘(vi) followup services such as regular contact with
the employers, the individuals, the individuals’ representatives, and other appropriate individuals, in
order to reinforce and stabilize the job placement;
‘‘(vii) facilitation of natural supports at the worksite;
‘‘(viii) any other service identified in section 103;
or
‘‘(ix) a service similar to another service described
in this subparagraph.
‘‘(28) PERSONAL ASSISTANCE SERVICES.—The term ‘personal
assistance services’ means a range of services, provided by
one or more persons, designed to assist an individual with
a disability to perform daily living activities on or off the
job that the individual would typically perform if the individual
did not have a disability. Such services shall be designed to
increase the individual’s control in life and ability to perform
everyday activities on or off the job.
‘‘(29) PUBLIC OR NONPROFIT.—The term ‘public or nonprofit’,
used with respect to an agency or organization, includes an
Indian tribe.
‘‘(30) REHABILITATION TECHNOLOGY.—The term ‘rehabilitation technology’ means the systematic application of technologies, engineering methodologies, or scientific principles to
meet the needs of and address the barriers confronted by
individuals with disabilities in areas which include education,
rehabilitation, employment, transportation, independent living,
and recreation. The term includes rehabilitation engineering,
assistive technology devices, and assistive technology services.
‘‘(31) SECRETARY.—The term ‘Secretary’, except when the
context otherwise requires, means the Secretary of Education.
‘‘(32) STATE.—The term ‘State’ includes, in addition to each
of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
‘‘(33) STATE WORKFORCE INVESTMENT BOARD.—The term
‘State workforce investment board’ means a State workforce
investment board established under section 111 of the
Workforce Investment Act of 1998.
‘‘(34) STATEWIDE WORKFORCE INVESTMENT SYSTEM.—The
term ‘statewide workforce investment system’ means a system
described in section 111(d)(2) of the Workforce Investment Act
of 1998.
‘‘(35) SUPPORTED EMPLOYMENT.—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1109

‘‘(A) IN GENERAL.—The term ‘supported employment’
means competitive work in integrated work settings, or
employment in integrated work settings in which individuals are working toward competitive work, consistent with
the strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice of the individuals, for individuals with the most significant disabilities—
‘‘(i)(I) for whom competitive employment has not
traditionally occurred; or
‘‘(II) for whom competitive employment has been
interrupted or intermittent as a result of a significant
disability; and
‘‘(ii) who, because of the nature and severity of
their disability, need intensive supported employment
services for the period, and any extension, described
in paragraph (36)(C) and extended services after the
transition described in paragraph (13)(C) in order to
perform such work.
‘‘(B) CERTAIN TRANSITIONAL EMPLOYMENT.—Such term
includes transitional employment for persons who are
individuals with the most significant disabilities due to
mental illness.
‘‘(36) SUPPORTED EMPLOYMENT SERVICES.—The term ‘supported employment services’ means ongoing support services
and other appropriate services needed to support and maintain
an individual with a most significant disability in supported
employment, that—
‘‘(A) are provided singly or in combination and are
organized and made available in such a way as to assist
an eligible individual to achieve competitive employment;
‘‘(B) are based on a determination of the needs of
an eligible individual, as specified in an individualized
plan for employment; and
‘‘(C) are provided by the designated State unit for
a period of time not to extend beyond 18 months, unless
under special circumstances the eligible individual and the
rehabilitation counselor or coordinator involved jointly
agree to extend the time in order to achieve the rehabilitation objectives identified in the individualized plan for
employment.
‘‘(37) TRANSITION SERVICES.—The term ‘transition services’
means a coordinated set of activities for a student, designed
within an outcome-oriented process, that promotes movement
from school to post school activities, including postsecondary
education, vocational training, integrated employment (including supported employment), continuing and adult education,
adult services, independent living, or community participation.
The coordinated set of activities shall be based upon the individual student’s needs, taking into account the student’s preferences and interests, and shall include instruction, community
experiences, the development of employment and other post
school adult living objectives, and, when appropriate, acquisition of daily living skills and functional vocational evaluation.
‘‘(38) VOCATIONAL REHABILITATION SERVICES.—The term
‘vocational rehabilitation services’ means those services identified in section 103 which are provided to individuals with
disabilities under this Act.

112 STAT. 1110

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(39) WORKFORCE INVESTMENT ACTIVITIES.—The term
‘workforce investment activities’ means workforce investment
activities, as defined in section 101 of the Workforce Investment
Act of 1998, that are carried out under that Act.
‘‘ALLOTMENT

29 USC 706.

PERCENTAGE

‘‘SEC. 7. (a)(1) For purposes of section 110, the allotment
percentage for any State shall be 100 per centum less that percentage which bears the same ratio to 50 per centum as the per
capita income of such State bears to the per capita income of
the United States, except that—
‘‘(A) the allotment percentage shall in no case be more
than 75 per centum or less than 331⁄3 per centum; and
‘‘(B) the allotment percentage for the District of Columbia,
Puerto Rico, Guam, the Virgin Islands, American Samoa, and
the Commonwealth of the Northern Mariana Islands shall be
75 per centum.
‘‘(2) The allotment percentages shall be promulgated by the
Secretary between October 1 and December 31 of each even-numbered year, on the basis of the average of the per capita incomes
of the States and of the United States for the three most recent
consecutive years for which satisfactory data are available from
the Department of Commerce. Such promulgation shall be conclusive for each of the 2 fiscal years in the period beginning on
the October 1 next succeeding such promulgation.
‘‘(3) The term ‘United States’ means (but only for purposes
of this subsection) the 50 States and the District of Columbia.
‘‘(b) The population of the several States and of the United
States shall be determined on the basis of the most recent data
available, to be furnished by the Department of Commerce by
October 1 of the year preceding the fiscal year for which funds
are appropriated pursuant to statutory authorizations.
‘‘NONDUPLICATION

29 USC 707.

‘‘SEC. 8. In determining the amount of any State’s Federal
share of expenditures for planning, administration, and services
incurred by it under a State plan approved in accordance with
section 101, there shall be disregarded: (1) any portion of such
expenditures which are financed by Federal funds provided under
any other provision of law; and (2) the amount of any non-Federal
funds required to be expended as a condition of receipt of such
Federal funds. No payment may be made from funds provided
under one provision of this Act relating to any cost with respect
to which any payment is made under any other provision of this
Act, except that this section shall not be construed to limit or
reduce fees for services rendered by community rehabilitation programs.
‘‘APPLICATION

29 USC 708.

OF OTHER LAWS

‘‘SEC. 9. The provisions of the Act of December 5, 1974 (Public
Law 93–510) and of title V of the Act of October 15, 1977 (Public
Law 95–134) shall not apply to the administration of the provisions
of this Act or to the administration of any program or activity
under this Act.

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘ADMINISTRATION

112 STAT. 1111

OF THE ACT

‘‘SEC. 10. (a) In carrying out the purposes of this Act, the
Commissioner may—
‘‘(1) provide consultative services and technical assistance
to public or nonprofit private agencies and organizations,
including assistance to enable such agencies and organizations
to facilitate meaningful and effective participation by individuals with disabilities in workforce investment activities;
‘‘(2) provide short-term training and technical instruction,
including training for the personnel of community rehabilitation
programs, centers for independent living, and other providers
of services (including job coaches);
‘‘(3) conduct special projects and demonstrations;
‘‘(4) collect, prepare, publish, and disseminate special educational or informational materials, including reports of the
projects for which funds are provided under this Act; and
‘‘(5) provide monitoring and conduct evaluations.
‘‘(b)(1) In carrying out the duties under this Act, the Commissioner may utilize the services and facilities of any agency of the
Federal Government and of any other public or nonprofit agency
or organization, in accordance with agreements between the
Commissioner and the head thereof, and may pay therefor, in
advance or by way of reimbursement, as may be provided in the
agreement.
‘‘(2) In carrying out the provisions of this Act, the Commissioner
shall appoint such task forces as may be necessary to collect and
disseminate information in order to improve the ability of the
Commissioner to carry out the provisions of this Act.
‘‘(c) The Commissioner may promulgate such regulations as
are considered appropriate to carry out the Commissioner’s duties
under this Act.
‘‘(d) The Secretary shall promulgate regulations regarding the
requirements for the implementation of an order of selection for
vocational rehabilitation services under section 101(a)(5)(A) if such
services cannot be provided to all eligible individuals with disabilities who apply for such services.
‘‘(e) Not later than 180 days after the date of enactment of
the Rehabilitation Act Amendments of 1998, the Secretary shall
receive public comment and promulgate regulations to implement
the amendments made by the Rehabilitation Act Amendments of
1998.
‘‘(f ) In promulgating regulations to carry out this Act, the
Secretary shall promulgate only regulations that are necessary
to administer and ensure compliance with the specific requirements
of this Act.
‘‘(g) There are authorized to be appropriated to carry out this
section such sums as may be necessary.

29 USC 709.

Regulations.

Deadline.
Regulations.

Appropriation
authorization.

‘‘REPORTS
‘‘SEC. 11. (a) Not later than one hundred and eighty days
after the close of each fiscal year, the Commissioner shall prepare
and submit to the President and to the Congress a full and complete
report on the activities carried out under this Act, including the
activities and staffing of the information clearinghouse under section 15.

Deadline.
29 USC 710.

112 STAT. 1112

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(b) The Commissioner shall collect information to determine
whether the purposes of this Act are being met and to assess
the performance of programs carried out under this Act. The
Commissioner shall take whatever action is necessary to assure
that the identity of each individual for which information is supplied
under this section is kept confidential, except as otherwise required
by law (including regulation).
‘‘(c) In preparing the report, the Commissioner shall annually
collect and include in the report information based on the information submitted by States in accordance with section 101(a)(10),
including information on administrative costs as required by section
101(a)(10)(D). The Commissioner shall, to the maximum extent
appropriate, include in the report all information that is required
to be submitted in the reports described in section 136(d) of the
Workforce Investment Act of 1998 and that pertains to the employment of individuals with disabilities.
‘‘EVALUATION
29 USC 711.

Standards.

‘‘SEC. 12. (a) For the purpose of improving program management and effectiveness, the Secretary, in consultation with the
Commissioner, shall evaluate all the programs authorized by this
Act, their general effectiveness in relation to their cost, their impact
on related programs, and their structure and mechanisms for delivery of services, using appropriate methodology and evaluative
research designs. The Secretary shall establish and use standards
for the evaluations required by this subsection. Such an evaluation
shall be conducted by a person not immediately involved in the
administration of the program evaluated.
‘‘(b) In carrying out evaluations under this section, the Secretary shall obtain the opinions of program and project participants
about the strengths and weaknesses of the programs and projects.
‘‘(c) The Secretary shall take the necessary action to assure
that all studies, evaluations, proposals, and data produced or developed with Federal funds under this Act shall become the property
of the United States.
‘‘(d) Such information as the Secretary may determine to be
necessary for purposes of the evaluations conducted under this
section shall be made available upon request of the Secretary,
by the departments and agencies of the executive branch.
‘‘(e)(1) To assess the linkages between vocational rehabilitation
services and economic and noneconomic outcomes, the Secretary
shall continue to conduct a longitudinal study of a national sample
of applicants for the services.
‘‘(2) The study shall address factors related to attrition and
completion of the program through which the services are provided
and factors within and outside the program affecting results. Appropriate comparisons shall be used to contrast the experiences of
similar persons who do not obtain the services.
‘‘(3) The study shall be planned to cover the period beginning
on the application of individuals with disabilities for the services,
through the eligibility determination and provision of services for
the individuals, and a further period of not less than 2 years
after the termination of services.
‘‘(f )(1) The Commissioner shall identify and disseminate
information on exemplary practices concerning vocational
rehabilitation.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1113

‘‘(2) To facilitate compliance with paragraph (1), the Commissioner shall conduct studies and analyses that identify exemplary
practices concerning vocational rehabilitation, including studies in
areas relating to providing informed choice in the rehabilitation
process, promoting consumer satisfaction, promoting job placement
and retention, providing supported employment, providing services
to particular disability populations, financing personal assistance
services, providing assistive technology devices and assistive technology services, entering into cooperative agreements, establishing
standards and certification for community rehabilitation programs,
converting from nonintegrated to integrated employment, and
providing caseload management.
‘‘(g) There are authorized to be appropriated to carry out this
section such sums as may be necessary.
‘‘INFORMATION

Appropriation
authorization.

CLEARINGHOUSE

‘‘SEC. 13. (a) The Secretary shall establish a central clearinghouse for information and resource availability for individuals with
disabilities which shall provide information and data regarding—
‘‘(1) the location, provision, and availability of services and
programs for individuals with disabilities, including such
information and data provided by State workforce investment
boards regarding such services and programs authorized under
title I of such Act;
‘‘(2) research and recent medical and scientific developments bearing on disabilities (and their prevention, amelioration, causes, and cures); and
‘‘(3) the current numbers of individuals with disabilities
and their needs.
The clearinghouse shall also provide any other relevant information
and data which the Secretary considers appropriate.
‘‘(b) The Commissioner may assist the Secretary to develop
within the Department of Education a coordinated system of
information and data retrieval, which will have the capacity and
responsibility to provide information regarding the information and
data referred to in subsection (a) of this section to the Congress,
public and private agencies and organizations, individuals with
disabilities and their families, professionals in fields serving such
individuals, and the general public.
‘‘(c) The office established to carry out the provisions of this
section shall be known as the ‘Office of Information and Resources
for Individuals with Disabilities’.
‘‘(d) There are authorized to be appropriated to carry out this
section such sums as may be necessary.
‘‘TRANSFER

Establishment.
29 USC 712.

OF FUNDS

‘‘SEC. 14. (a) Except as provided in subsection (b) of this section,
no funds appropriated under this Act for any program or activity
may be used for any purpose other than that for which the funds
were specifically authorized.
‘‘(b) No more than 1 percent of funds appropriated for discretionary grants, contracts, or cooperative agreements authorized by
this Act may be used for the purpose of providing non-Federal
panels of experts to review applications for such grants, contracts,
or cooperative agreements.

29 USC 713.

112 STAT. 1114

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘STATE

29 USC 714.

‘‘SEC. 15. The application of any State rule or policy relating
to the administration or operation of programs funded by this
Act (including any rule or policy based on State interpretation
of any Federal law, regulation, or guideline) shall be identified
as a State imposed requirement.
‘‘REVIEW

29 USC 715.

ADMINISTRATION

OF APPLICATIONS

‘‘SEC. 16. Applications for grants in excess of $100,000 in the
aggregate authorized to be funded under this Act, other than grants
primarily for the purpose of conducting dissemination or conferences, shall be reviewed by panels of experts which shall include
a majority of non-Federal members. Non-Federal members may
be provided travel, per diem, and consultant fees not to exceed
the daily equivalent of the rate of pay for level 4 of the Senior
Executive Service Schedule under section 5382 of title 5, United
States Code.
‘‘CARRYOVER

29 USC 716.

‘‘SEC. 17. (a) IN GENERAL.—Except as provided in subsection
(b), and notwithstanding any other provision of law—
‘‘(1) any funds appropriated for a fiscal year to carry out
any grant program under part B of title I, section 509 (except
as provided in section 509(b)), part B of title VI, part B or
C of chapter 1 of title VII, or chapter 2 of title VII (except
as provided in section 752(b)), including any funds reallotted
under any such grant program, that are not obligated and
expended by recipients prior to the beginning of the succeeding
fiscal year; or
‘‘(2) any amounts of program income, including reimbursement payments under the Social Security Act (42 U.S.C. 301
et seq.), received by recipients under any grant program specified in paragraph (1) that are not obligated and expended
by recipients prior to the beginning of the fiscal year succeeding
the fiscal year in which such amounts were received,
shall remain available for obligation and expenditure by such recipients during such succeeding fiscal year.
‘‘(b) NON-FEDERAL SHARE.—Such funds shall remain available
for obligation and expenditure by a recipient as provided in subsection (a) only to the extent that the recipient complied with
any Federal share requirementsapplicable to the program for the
fiscal year for which the funds were appropriated.
‘‘CLIENT

29 USC 717.

ASSISTANCE INFORMATION

‘‘SEC. 18. All programs, including community rehabilitation programs, and projects, that provide services to individuals with
disabilities under this Act shall advise such individuals who are
applicants for or recipients of the services, or the applicants’ representatives or individuals’ representatives, of the availability and
purposes of the client assistance program under section 112, including information on means of seeking assistance under such program.

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘TRADITIONALLY

112 STAT. 1115

UNDERSERVED POPULATIONS

‘‘SEC. 19. (a) FINDINGS.—With respect to the programs
authorized in titles II through VII, the Congress finds as follows:
‘‘(1) RACIAL PROFILE.—The racial profile of America is rapidly changing. While the rate of increase for white Americans
is 3.2 percent, the rate of increase for racial and ethnic minorities is much higher: 38.6 percent for Latinos, 14.6 percent
for African-Americans, and 40.1 percent for Asian-Americans
and other ethnic groups. By the year 2000, the Nation will
have 260,000,000 people, one of every three of whom will be
either African-American, Latino, or Asian-American.
‘‘(2) RATE OF DISABILITY.—Ethnic and racial minorities tend
to have disabling conditions at a disproportionately high rate.
The rate of work-related disability for American Indians is
about one and one-half times that of the general population.
African-Americans are also one and one-half times more likely
to be disabled than whites and twice as likely to be significantly
disabled.
‘‘(3) INEQUITABLE TREATMENT.—Patterns of inequitable
treatment of minorities have been documented in all major
junctures of the vocational rehabilitation process. As compared
to white Americans, a larger percentage of African-American
applicants to the vocational rehabilitation system are denied
acceptance. Of applicants accepted for service, a larger percentage of African-American cases are closed without being rehabilitated. Minorities are provided less training than their white
counterparts. Consistently, less money is spent on minorities
than on their white counterparts.
‘‘(4) RECRUITMENT.—Recruitment efforts within vocational
rehabilitation at the level of preservice training, continuing
education, and in-service training must focus on bringing larger
numbers of minorities into the profession in order to provide
appropriate practitioner knowledge, role models, and sufficient
manpower to address the clearly changing demography of vocational rehabilitation.
‘‘(b) OUTREACH TO MINORITIES.—
‘‘(1) IN GENERAL.—For each fiscal year, the Commissioner
and the Director of the National Institute on Disability and
Rehabilitation Research (referred to in this subsection as the
‘Director’) shall reserve 1 percent of the funds appropriated
for the fiscal year for programs authorized under titles II,
III, VI, and VII to carry out this subsection. The Commissioner
and the Director shall use the reserved funds to carry out
one or more of the activities described in paragraph (2) through
a grant, contract, or cooperative agreement.
‘‘(2) ACTIVITIES.—The activities carried out by the Commissioner and the Director shall include one or more of the
following:
‘‘(A) Making awards to minority entities and Indian
tribes to carry out activities under the programs authorized
under titles II, III, VI, and VII.
‘‘(B) Making awards to minority entities and Indian
tribes to conduct research, training, technical assistance,
or a related activity, to improve services provided under
this Act, especially services provided to individuals from
minority backgrounds.

29 USC 718.

112 STAT. 1116

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(C) Making awards to entities described in paragraph
(3) to provide outreach and technical assistance to minority
entities and Indian tribes to promote their participation
in activities funded under this Act, including assistance
to enhance their capacity to carry out such activities.
‘‘(3) ELIGIBILITY.—To be eligible to receive an award under
paragraph (2)(C), an entity shall be a State or a public or
private nonprofit agency or organization, such as an institution
of higher education or an Indian tribe.
‘‘(4) REPORT.—In each fiscal year, the Commissioner and
the Director shall prepare and submit to Congress a report
that describes the activities funded under this subsection for
the preceding fiscal year.
‘‘(5) DEFINITIONS.—In this subsection:
‘‘(A) HISTORICALLY BLACK COLLEGE OR UNIVERSITY.—
The term ‘historically Black college or university’ means
a part B institution, as defined in section 322(2) of the
Higher Education Act of 1965 (20 U.S.C. 1061(2)).
‘‘(B) MINORITY ENTITY.—The term ‘minority entity’
means an entity that is a historically Black college or
university, a Hispanic-serving institution of higher education, an American Indian tribal college or university,
or another institution of higher education whose minority
student enrollment is at least 50 percent.
‘‘(c) DEMONSTRATION.—In awarding grants, or entering into contracts or cooperative agreements under titles I, II, III, VI, and
VII, and section 509, the Commissioner and the Director, in appropriate cases, shall require applicants to demonstrate how the
applicants will address, in whole or in part, the needs of individuals
with disabilities from minority backgrounds.’’.
SEC. 404. VOCATIONAL REHABILITATION SERVICES.

Title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et
seq.) is amended to read as follows:

‘‘TITLE I—VOCATIONAL
REHABILITATION SERVICES
‘‘PART A—GENERAL PROVISIONS
29 USC 720.

‘‘SEC. 100. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIATIONS.

‘‘(a) FINDINGS; PURPOSE; POLICY.—
‘‘(1) FINDINGS.—Congress finds that—
‘‘(A) work—
‘‘(i) is a valued activity, both for individuals and
society; and
‘‘(ii) fulfills the need of an individual to be productive, promotes independence, enhances self-esteem, and
allows for participation in the mainstream of life in
the United States;
‘‘(B) as a group, individuals with disabilities experience
staggering levels of unemployment and poverty;
‘‘(C) individuals with disabilities, including individuals
with the most significant disabilities, have demonstrated

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1117

their ability to achieve gainful employment in integrated
settings if appropriate services and supports are provided;
‘‘(D) reasons for significant numbers of individuals with
disabilities not working, or working at levels not commensurate with their abilities and capabilities, include—
‘‘(i) discrimination;
‘‘(ii) lack of accessible and available transportation;
‘‘(iii) fear of losing health coverage under the medicare and medicaid programs carried out under titles
XVIII and XIX of the Social Security Act (42 U.S.C.
1395 et seq. and 1396 et seq.) or fear of losing private
health insurance; and
‘‘(iv) lack of education, training, and supports to
meet job qualification standards necessary to secure,
retain, regain, or advance in employment;
‘‘(E) enforcement of title V and of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) holds
the promise of ending discrimination for individuals with
disabilities;
‘‘(F) the provision of workforce investment activities
and vocational rehabilitation services can enable individuals with disabilities, including individuals with the most
significant disabilities, to pursue meaningful careers by
securing gainful employment commensurate with their
abilities and capabilities; and
‘‘(G) linkages between the vocational rehabilitation programs established under this title and other components
of the statewide workforce investment systems are critical
to ensure effective and meaningful participation by individuals with disabilities in workforce investment activities.
‘‘(2) PURPOSE.—The purpose of this title is to assist States
in operating statewide comprehensive, coordinated, effective,
efficient, and accountable programs of vocational rehabilitation,
each of which is—
‘‘(A) an integral part of a statewide workforce investment system; and
‘‘(B) designed to assess, plan, develop, and provide
vocational rehabilitation services for individuals with
disabilities, consistent with their strengths, resources,
priorities, concerns, abilities, capabilities, interests, and
informed choice, so that such individuals may prepare for
and engage in gainful employment.
‘‘(3) POLICY.—It is the policy of the United States that
such a program shall be carried out in a manner consistent
with the following principles:
‘‘(A) Individuals with disabilities, including individuals
with the most significant disabilities, are generally presumed to be capable of engaging in gainful employment
and the provision of individualized vocational rehabilitation
services can improve their ability to become gainfully
employed.
‘‘(B) Individuals with disabilities must be provided the
opportunities to obtain gainful employment in integrated
settings.
‘‘(C) Individuals who are applicants for such programs
or eligible to participate in such programs must be active

112 STAT. 1118

Deadline.
Federal Register,
publication.

PUBLIC LAW 105–220—AUG. 7, 1998
and full partners in the vocational rehabilitation process,
making meaningful and informed choices—
‘‘(i) during assessments for determining eligibility
and vocational rehabilitation needs; and
‘‘(ii) in the selection of employment outcomes for
the individuals, services needed to achieve the outcomes, entities providing such services, and the methods used to secure such services.
‘‘(D) Families and other natural supports can play
important roles in the success of a vocational rehabilitation
program, if the individual with a disability involved
requests, desires, or needs such supports.
‘‘(E) Vocational rehabilitation counselors that are
trained and prepared in accordance with State policies
and procedures as described in section 101(a)(7)(B)
(referred to individually in this title as a ‘qualified vocational rehabilitation counselor’), other qualified rehabilitation personnel, and other qualified personnel facilitate the
accomplishment of the employment outcomes and objectives
of an individual.
‘‘(F) Individuals with disabilities and the individuals’
representatives are full partners in a vocational rehabilitation program and must be involved on a regular basis
and in a meaningful manner with respect to policy development and implementation.
‘‘(G) Accountability measures must facilitate the accomplishment of the goals and objectives of the program,
including providing vocational rehabilitation services to,
among others, individuals with the most significant disabilities.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—For the purpose of making grants to
States under part B to assist States in meeting the costs
of vocational rehabilitation services provided in accordance with
State plans under section 101, there are authorized to be appropriated such sums as may be necessary for fiscal years 1999
through 2003, except that the amount to be appropriated for
a fiscal year shall not be less than the amount of the appropriation under this paragraph for the immediately preceding fiscal
year, increased by the percentage change in the Consumer
Price Index determined under subsection (c) for the immediately
preceding fiscal year.
‘‘(2) REFERENCE.—The reference in paragraph (1) to grants
to States under part B shall not be considered to refer to
grants under section 112.
‘‘(c) CONSUMER PRICE INDEX.—
‘‘(1) PERCENTAGE CHANGE.—No later than November 15
of each fiscal year (beginning with fiscal year 1979), the Secretary of Labor shall publish in the Federal Register the
percentage change in the Consumer Price Index published for
October of the preceding fiscal year and October of the fiscal
year in which such publication is made.
‘‘(2) APPLICATION.—
‘‘(A) INCREASE.—If in any fiscal year the percentage
change published under paragraph (1) indicates an increase
in the Consumer Price Index, then the amount to be appropriated under subsection (b)(1) for the subsequent fiscal

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1119

year shall be at least the amount appropriated under subsection (b)(1) for the fiscal year in which the publication
is made under paragraph (1) increased by such percentage
change.
‘‘(B) NO INCREASE OR DECREASE.—If in any fiscal year
the percentage change published under paragraph (1) does
not indicate an increase in the Consumer Price Index,
then the amount to be appropriated under subsection (b)(1)
for the subsequent fiscal year shall be at least the amount
appropriated under subsection (b)(1) for the fiscal year
in which the publication is made under paragraph (1).
‘‘(3) DEFINITION.—For purposes of this section, the term
‘Consumer Price Index’ means the Consumer Price Index for
All Urban Consumers, published monthly by the Bureau of
Labor Statistics.
‘‘(d) EXTENSION.—
‘‘(1) IN GENERAL.—
‘‘(A) AUTHORIZATION OR DURATION OF PROGRAM.—
Unless the Congress in the regular session which ends
prior to the beginning of the terminal fiscal year—
‘‘(i) of the authorization of appropriations for the
program authorized by the State grant program under
part B of this title; or
‘‘(ii) of the duration of the program authorized
by the State grant program under part B of this title;
has passed legislation which would have the effect of
extending the authorization or duration (as the case may
be) of such program, such authorization or duration is
automatically extended for 1 additional year for the program authorized by this title.
‘‘(B) CALCULATION.—The amount authorized to be
appropriated for the additional fiscal year described in
subparagraph (A) shall be an amount equal to the amount
appropriated for such program for fiscal year 2003,
increased by the percentage change in the Consumer Price
Index determined under subsection (c) for the immediately
preceding fiscal year, if the percentage change indicates
an increase.
‘‘(2) CONSTRUCTION.—
‘‘(A) PASSAGE OF LEGISLATION.—For the purposes of
paragraph (1)(A), Congress shall not be deemed to have
passed legislation unless such legislation becomes law.
‘‘(B) ACTS OR DETERMINATIONS OF COMMISSIONER.—In
any case where the Commissioner is required under an
applicable statute to carry out certain acts or make certain
determinations which are necessary for the continuation
of the program authorized by this title, if such acts or
determinations are required during the terminal year of
such program, such acts and determinations shall be
required during any fiscal year in which the extension
described in that part of paragraph (1) that follows clause
(ii) of paragraph (1)(A) is in effect.
‘‘SEC. 101. STATE PLANS.

‘‘(a) PLAN REQUIREMENTS.—
‘‘(1) IN GENERAL.—

29 USC 721.

112 STAT. 1120

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(A) SUBMISSION.—To be eligible to participate in programs under this title, a State shall submit to the Commissioner a State plan for vocational rehabilitation services
that meets the requirements of this section, on the same
date that the State submits a State plan under section
112 of the Workforce Investment Act of 1998.
‘‘(B) NONDUPLICATION.—The State shall not be required
to submit, in the State plan for vocational rehabilitation
services, policies, procedures, or descriptions required
under this title that have been previously submitted to
the Commissioner and that demonstrate that such State
meets the requirements of this title, including any policies,
procedures, or descriptions submitted under this title as
in effect on the day before the effective date of the
Rehabilitation Act Amendments of 1998.
‘‘(C) DURATION.—The State plan shall remain in effect
subject to the submission of such modifications as the State
determines to be necessary or as the Commissioner may
require based on a change in State policy, a change in
Federal law (including regulations), an interpretation of
this Act by a Federal court or the highest court of the
State, or a finding by the Commissioner of State noncompliance with the requirements of this Act, until the State
submits and receives approval of a new State plan.
‘‘(2) DESIGNATED STATE AGENCY; DESIGNATED STATE UNIT.—
‘‘(A) DESIGNATED STATE AGENCY.—The State plan shall
designate a State agency as the sole State agency to administer the plan, or to supervise the administration of the
plan by a local agency, except that—
‘‘(i) where, under State law, the State agency for
individuals who are blind or another agency that provides assistance or services to adults who are blind
is authorized to provide vocational rehabilitation services to individuals who are blind, that agency may
be designated as the sole State agency to administer
the part of the plan under which vocational rehabilitation services are provided for individuals who are blind
(or to supervise the administration of such part by
a local agency) and a separate State agency may be
designated as the sole State agency to administer or
supervise the administration of the rest of the State
plan;
‘‘(ii) the Commissioner, on the request of a State,
may authorize the designated State agency to share
funding and administrative responsibility with another
agency of the State or with a local agency in order
to permit the agencies to carry out a joint program
to provide services to individuals with disabilities, and
may waive compliance, with respect to vocational
rehabilitation services furnished under the joint program, with the requirement of paragraph (4) that the
plan be in effect in all political subdivisions of the
State; and
‘‘(iii) in the case of American Samoa, the appropriate State agency shall be the Governor of American
Samoa.

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112 STAT. 1121

‘‘(B) DESIGNATED STATE UNIT.—The State agency designated under subparagraph (A) shall be—
‘‘(i) a State agency primarily concerned with vocational rehabilitation, or vocational and other rehabilitation, of individuals with disabilities; or
‘‘(ii) if not such an agency, the State agency (or
each State agency if 2 are so designated) shall include
a vocational rehabilitation bureau, division, or other
organizational unit that—
‘‘(I) is primarily concerned with vocational
rehabilitation, or vocational and other rehabilitation, of individuals with disabilities, and is responsible for the vocational rehabilitation program of
the designated State agency;
‘‘(II) has a full-time director;
‘‘(III) has a staff employed on the rehabilitation work of the organizational unit all or substantially all of whom are employed full time on such
work; and
‘‘(IV) is located at an organizational level and
has an organizational status within the designated
State agency comparable to that of other major
organizational units of the designated State
agency.
‘‘(C) RESPONSIBILITY FOR SERVICES FOR THE BLIND.—
If the State has designated only 1 State agency pursuant
to subparagraph (A), the State may assign responsibility
for the part of the plan under which vocational rehabilitation services are provided for individuals who are blind
to an organizational unit of the designated State agency
and assign responsibility for the rest of the plan to another
organizational unit of the designated State agency, with
the provisions of subparagraph (B) applying separately to
each of the designated State units.
‘‘(3) NON-FEDERAL SHARE.—The State plan shall provide
for financial participation by the State, or if the State so elects,
by the State and local agencies, to provide the amount of
the non-Federal share of the cost of carrying out part B.
‘‘(4) STATEWIDENESS.—The State plan shall provide that
the plan shall be in effect in all political subdivisions of the
State, except that—
‘‘(A) in the case of any activity that, in the judgment
of the Commissioner, is likely to assist in promoting the
vocational rehabilitation of substantially larger numbers
of individuals with disabilities or groups of individuals
with disabilities, the Commissioner may waive compliance
with the requirement that the plan be in effect in all
political subdivisions of the State to the extent and for
such period as may be provided in accordance with regulations prescribed by the Commissioner, but only if the nonFederal share of the cost of the vocational rehabilitation
services involved is met from funds made available by
a local agency (including funds contributed to such agency
by a private agency, organization, or individual); and
‘‘(B) in a case in which earmarked funds are used
toward the non-Federal share and such funds are earmarked for particular geographic areas within the State,

112 STAT. 1122

PUBLIC LAW 105–220—AUG. 7, 1998
the earmarked funds may be used in such areas if the
State notifies the Commissioner that the State cannot provide the full non-Federal share without such funds.
‘‘(5) ORDER OF SELECTION FOR VOCATIONAL REHABILITATION
SERVICES.—In the event that vocational rehabilitation services
cannot be provided to all eligible individuals with disabilities
in the State who apply for the services, the State plan shall—
‘‘(A) show the order to be followed in selecting eligible
individuals to be provided vocational rehabilitation services;
‘‘(B) provide the justification for the order of selection;
‘‘(C) include an assurance that, in accordance with
criteria established by the State for the order of selection,
individuals with the most significant disabilities will be
selected first for the provision of vocational rehabilitation
services; and
‘‘(D) provide that eligible individuals, who do not meet
the order of selection criteria, shall have access to services
provided through the information and referral system
implemented under paragraph (20).
‘‘(6) METHODS FOR ADMINISTRATION.—
‘‘(A) IN GENERAL.—The State plan shall provide for
such methods of administration as are found by the
Commissioner to be necessary for the proper and efficient
administration of the plan.
‘‘(B) EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.—
The State plan shall provide that the designated State
agency, and entities carrying out community rehabilitation
programs in the State, who are in receipt of assistance
under this title shall take affirmative action to employ
and advance in employment qualified individuals with
disabilities covered under, and on the same terms and
conditions as set forth in, section 503.
‘‘(C) FACILITIES.—The State plan shall provide that
facilities used in connection with the delivery of services
assisted under the State plan shall comply with the Act
entitled ‘An Act to insure that certain buildings financed
with Federal funds are so designed and constructed as
to be accessible to the physically handicapped’, approved
on August 12, 1968 (commonly known as the ‘Architectural
Barriers Act of 1968’), with section 504, and with the
Americans with Disabilities Act of 1990.
‘‘(7) COMPREHENSIVE SYSTEM OF PERSONNEL DEVELOPMENT.—The State plan shall—
‘‘(A) include a description (consistent with the purposes
of this Act) of a comprehensive system of personnel development, which shall include—
‘‘(i) a description of the procedures and activities
the designated State agency will undertake to ensure
an adequate supply of qualified State rehabilitation
professionals and paraprofessionals for the designated
State unit, including the development and maintenance
of a system for determining, on an annual basis—
‘‘(I) the number and type of personnel that
are employed by the designated State unit in the
provision of vocational rehabilitation services,

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1123

including ratios of qualified vocational rehabilitation counselors to clients; and
‘‘(II) the number and type of personnel needed
by the State, and a projection of the numbers
of such personnel that will be needed in 5 years,
based on projections of the number of individuals
to be served, the number of such personnel who
are expected to retire or leave the vocational
rehabilitation field, and other relevant factors;
‘‘(ii) where appropriate, a description of the manner
in which activities will be undertaken under this section to coordinate the system of personnel development
with personnel development activities under the
Individuals with Disabilities Education Act (20 U.S.C.
1400 et seq.);
‘‘(iii) a description of the development and maintenance of a system of determining, on an annual basis,
information on the programs of institutions of higher
education within the State that are preparing
rehabilitation professionals, including—
‘‘(I) the numbers of students enrolled in such
programs; and
‘‘(II) the number of such students who graduated with certification or licensure, or with
credentials to qualify for certification or licensure,
as a rehabilitation professional during the past
year;
‘‘(iv) a description of the development, updating,
and implementation of a plan that—
‘‘(I) will address the current and projected
vocational rehabilitation services personnel training needs for the designated State unit; and
‘‘(II) provides for the coordination and facilitation of efforts between the designated State unit,
institutions of higher education, and professional
associations to recruit, prepare, and retain qualified personnel, including personnel from minority
backgrounds, and personnel who are individuals
with disabilities; and
‘‘(v) a description of the procedures and activities
the designated State agency will undertake to ensure
that all personnel employed by the designated State
unit are appropriately and adequately trained and prepared, including—
‘‘(I) a system for the continuing education of
rehabilitation professionals and paraprofessionals
within the designated State unit, particularly with
respect to rehabilitation technology; and
‘‘(II) procedures for acquiring and disseminating to rehabilitation professionals and paraprofessionals within the designated State unit significant
knowledge from research and other sources, including procedures for providing training regarding the
amendments to this Act made by the Rehabilitation Act Amendments of 1998;
‘‘(B) set forth policies and procedures relating to the
establishment and maintenance of standards to ensure that

112 STAT. 1124

PUBLIC LAW 105–220—AUG. 7, 1998
personnel, including rehabilitation professionals and paraprofessionals, needed within the designated State unit to
carry out this part are appropriately and adequately prepared and trained, including—
‘‘(i) the establishment and maintenance of standards that are consistent with any national or State
approved or recognized certification, licensing, registration, or other comparable requirements that apply to
the area in which such personnel are providing vocational rehabilitation services; and
‘‘(ii) to the extent that such standards are not
based on the highest requirements in the State
applicable to a specific profession or discipline, the
steps the State is taking to require the retraining
or hiring of personnel within the designated State unit
that meet appropriate professional requirements in the
State; and
‘‘(C) contain provisions relating to the establishment
and maintenance of minimum standards to ensure the
availability of personnel within the designated State unit,
to the maximum extent feasible, trained to communicate
in the native language or mode of communication of an
applicant or eligible individual.
‘‘(8) COMPARABLE SERVICES AND BENEFITS.—
‘‘(A) DETERMINATION OF AVAILABILITY.—
‘‘(i) IN GENERAL.—The State plan shall include an
assurance that, prior to providing any vocational
rehabilitation service to an eligible individual, except
those services specified in paragraph (5)(D) and in
paragraphs (1) through (4) and (14) of section 103(a),
the designated State unit will determine whether comparable services and benefits are available under any
other program (other than a program carried out under
this title) unless such a determination would interrupt
or delay—
‘‘(I) the progress of the individual toward
achieving the employment outcome identified in
the individualized plan for employment of the
individual in accordance with section 102(b);
‘‘(II) an immediate job placement; or
‘‘(III) the provision of such service to any
individual at extreme medical risk.
‘‘(ii) AWARDS AND SCHOLARSHIPS.—For purposes of
clause (i), comparable benefits do not include awards
and scholarships based on merit.
‘‘(B) INTERAGENCY AGREEMENT.—The State plan shall
include an assurance that the Governor of the State, in
consultation with the entity in the State responsible for
the vocational rehabilitation program and other appropriate
agencies, will ensure that an interagency agreement or
other mechanism for interagency coordination takes effect
between any appropriate public entity, including the State
entity responsible for administering the State medicaid
program, a public institution of higher education, and a
component of the statewide workforce investment system,
and the designated State unit, in order to ensure the provision of vocational rehabilitation services described in

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1125

subparagraph (A) (other than those services specified in
paragraph (5)(D), and in paragraphs (1) through (4) and
(14) of section 103(a)), that are included in the individualized plan for employment of an eligible individual, including
the provision of such vocational rehabilitation services during the pendency of any dispute described in clause (iii).
Such agreement or mechanism shall include the following:
‘‘(i) AGENCY FINANCIAL RESPONSIBILITY.—An identification of, or a description of a method for defining,
the financial responsibility of such public entity for
providing such services, and a provision stating the
financial responsibility of such public entity for providing such services.
‘‘(ii) CONDITIONS, TERMS, AND PROCEDURES OF
REIMBURSEMENT.—Information specifying the conditions, terms, and procedures under which a designated
State unit shall be reimbursed by other public entities
for providing such services, based on the provisions
of such agreement or mechanism.
‘‘(iii) INTERAGENCY DISPUTES.—Information specifying procedures for resolving interagency disputes under
the agreement or other mechanism (including procedures under which the designated State unit may initiate proceedings to secure reimbursement from other
public entities or otherwise implement the provisions
of the agreement or mechanism).
‘‘(iv) COORDINATION OF SERVICES PROCEDURES.—
Information specifying policies and procedures for public entities to determine and identify the interagency
coordination responsibilities of each public entity to
promote the coordination and timely delivery of vocational rehabilitation services (except those services
specified in paragraph (5)(D) and in paragraphs (1)
through (4) and (14) of section 103(a)).
‘‘(C) RESPONSIBILITIES OF OTHER PUBLIC ENTITIES.—
‘‘(i) RESPONSIBILITIES UNDER OTHER LAW.—Notwithstanding subparagraph (B), if any public entity
other than a designated State unit is obligated under
Federal or State law, or assigned responsibility under
State policy or under this paragraph, to provide or
pay for any services that are also considered to be
vocational rehabilitation services (other than those
specified in paragraph (5)(D) and in paragraphs (1)
through (4) and (14) of section 103(a)), such public
entity shall fulfill that obligation or responsibility,
either directly or by contract or other arrangement.
‘‘(ii) REIMBURSEMENT.—If a public entity other
than the designated State unit fails to provide or pay
for the services described in clause (i) for an eligible
individual, the designated State unit shall provide or
pay for such services to the individual. Such designated
State unit may claim reimbursement for the services
from the public entity that failed to provide or pay
for such services. Such public entity shall reimburse
the designated State unit pursuant to the terms of
the interagency agreement or other mechanism
described in this paragraph according to the procedures

112 STAT. 1126

PUBLIC LAW 105–220—AUG. 7, 1998
established in such agreement or mechanism pursuant
to subparagraph (B)(ii).
‘‘(D) METHODS.—The Governor of a State may meet
the requirements of subparagraph (B) through—
‘‘(i) a State statute or regulation;
‘‘(ii) a signed agreement between the respective
officials of the public entities that clearly identifies
the responsibilities of each public entity relating to
the provision of services; or
‘‘(iii) another appropriate method, as determined
by the designated State unit.
‘‘(9) INDIVIDUALIZED PLAN FOR EMPLOYMENT.—
‘‘(A) DEVELOPMENT AND IMPLEMENTATION.—The State
plan shall include an assurance that an individualized
plan for employment meeting the requirements of section
102(b) will be developed and implemented in a timely manner for an individual subsequent to the determination of
the eligibility of the individual for services under this title,
except that in a State operating under an order of selection
described in paragraph (5), the plan will be developed
and implemented only for individuals meeting the order
of selection criteria of the State.
‘‘(B) PROVISION OF SERVICES.—The State plan shall
include an assurance that such services will be provided
in accordance with the provisions of the individualized
plan for employment.
‘‘(10) REPORTING REQUIREMENTS.—
‘‘(A) IN GENERAL.—The State plan shall include an
assurance that the designated State agency will submit
reports in the form and level of detail and at the time
required by the Commissioner regarding applicants for,
and eligible individuals receiving, services under this title.
‘‘(B) ANNUAL REPORTING.—In specifying the information to be submitted in the reports, the Commissioner
shall require annual reporting on the eligible individuals
receiving the services, on those specific data elements
described in section 136(d)(2) of the Workforce Investment
Act of 1998 that are determined by the Secretary to be
relevant in assessing the performance of designated State
units in carrying out the vocational rehabilitation program
established under this title.
‘‘(C) ADDITIONAL DATA.—In specifying the information
required to be submitted in the reports, the Commissioner
shall require additional data with regard to applicants
and eligible individuals related to—
‘‘(i) the number of applicants and the number of
individuals determined to be eligible or ineligible for
the program carried out under this title, including—
‘‘(I) the number of individuals determined to
be ineligible because they did not require vocational rehabilitation services, as provided in section 102(a); and
‘‘(II) the number of individuals determined,
on the basis of clear and convincing evidence, to
be too severely disabled to benefit in terms of
an
employment
outcome
from
vocational
rehabilitation services;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1127

‘‘(ii) the number of individuals who received vocational rehabilitation services through the program,
including—
‘‘(I) the number who received services under
paragraph (5)(D), but not assistance under an
individualized plan for employment;
‘‘(II) of those recipients who are individuals
with significant disabilities, the number who
received assistance under an individualized plan
for employment consistent with section 102(b); and
‘‘(III) of those recipients who are not individuals with significant disabilities, the number who
received assistance under an individualized plan
for employment consistent with section 102(b);
‘‘(iii) of those applicants and eligible recipients who
are individuals with significant disabilities—
‘‘(I) the number who ended their participation
in the program carried out under this title and
the number who achieved employment outcomes
after receiving vocational rehabilitation services;
and
‘‘(II) the number who ended their participation
in the program and who were employed 6 months
and 12 months after securing or regaining employment, or, in the case of individuals whose employment outcome was to retain or advance in employment, who were employed 6 months and 12 months
after achieving their employment outcome, including—
‘‘(aa) the number who earned the minimum wage rate specified in section 6(a)(1) of
the Fair Labor Standards Act of 1938 (29
U.S.C. 206(a)(1)) or another wage level set
by the Commissioner, during such employment; and
‘‘(bb) the number who received employment benefits from an employer during such
employment; and
‘‘(iv) of those applicants and eligible recipients who
are not individuals with significant disabilities—
‘‘(I) the number who ended their participation
in the program carried out under this title and
the number who achieved employment outcomes
after receiving vocational rehabilitation services;
and
‘‘(II) the number who ended their participation
in the program and who were employed 6 months
and 12 months after securing or regaining employment, or, in the case of individuals whose employment outcome was to retain or advance in employment, who were employed 6 months and 12 months
after achieving their employment outcome, including—
‘‘(aa) the number who earned the minimum wage rate specified in section 6(a)(1) of
the Fair Labor Standards Act of 1938 (29
U.S.C. 206(a)(1)) or another wage level set

112 STAT. 1128

PUBLIC LAW 105–220—AUG. 7, 1998
by the Commissioner, during such employment; and
‘‘(bb) the number who received employment benefits from an employer during such
employment.
‘‘(D) COSTS AND RESULTS.—The Commissioner shall
also require that the designated State agency include in
the reports information on—
‘‘(i) the costs under this title of conducting administration, providing assessment services, counseling and
guidance, and other direct services provided by designated State agency staff, providing services purchased under individualized plans for employment,
supporting small business enterprises, establishing,
developing, and improving community rehabilitation
programs, providing other services to groups, and facilitating use of other programs under this Act and title
I of the Workforce Investment Act of 1998 by eligible
individuals; and
‘‘(ii) the results of annual evaluation by the State
of program effectiveness under paragraph (15)(E).
‘‘(E) ADDITIONAL INFORMATION.—The Commissioner
shall require that each designated State unit include in
the reports additional information related to the applicants
and eligible individuals, obtained either through a complete
count or sampling, including—
‘‘(i) information on—
‘‘(I) age, gender, race, ethnicity, education, category of impairment, severity of disability, and
whether the individuals are students with disabilities;
‘‘(II) dates of application, determination of
eligibility or ineligibility, initiation of the individualized plan for employment, and termination of
participation in the program;
‘‘(III) earnings at the time of application for
the program and termination of participation in
the program;
‘‘(IV) work status and occupation;
‘‘(V) types of services, including assistive technology services and assistive technology devices,
provided under the program;
‘‘(VI) types of public or private programs or
agencies that furnished services under the program; and
‘‘(VII) the reasons for individuals terminating
participation in the program without achieving an
employment outcome; and
‘‘(ii) information necessary to determine the
success of the State in meeting—
‘‘(I) the State performance measures established under section 136(b) of the Workforce
Investment Act of 1998, to the extent the measures
are applicable to individuals with disabilities; and
‘‘(II) the standards and indicators established
pursuant to section 106.

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112 STAT. 1129

‘‘(F) COMPLETENESS AND CONFIDENTIALITY.—The State
plan shall include an assurance that the information
submitted in the reports will include a complete count,
except as provided in subparagraph (E), of the applicants
and eligible individuals, in a manner permitting the greatest possible cross-classification of data and that the identity
of each individual for which information is supplied under
this paragraph will be kept confidential.
‘‘(11) COOPERATION, COLLABORATION, AND COORDINATION.—
‘‘(A) COOPERATIVE AGREEMENTS WITH OTHER COMPONENTS OF STATEWIDE WORKFORCE INVESTMENT SYSTEMS.—
The State plan shall provide that the designated State
unit or designated State agency shall enter into a cooperative agreement with other entities that are components
of the statewide workforce investment system of the State,
regarding the system, which agreement may provide for—
‘‘(i) provision of intercomponent staff training and
technical assistance with regard to—
‘‘(I) the availability and benefits of, and
information on eligibility standards for, vocational
rehabilitation services; and
‘‘(II) the promotion of equal, effective, and
meaningful participation by individuals with
disabilities in workforce investment activities in
the State through the promotion of program accessibility, the use of nondiscriminatory policies and
procedures, and the provision of reasonable accommodations, auxiliary aids and services, and
rehabilitation technology, for individuals with
disabilities;
‘‘(ii) use of information and financial management
systems that link all components of the statewide
workforce investment system, that link the components
to other electronic networks, including nonvisual electronic networks, and that relate to such subjects as
employment statistics, and information on job vacancies, career planning, and workforce investment activities;
‘‘(iii) use of customer service features such as common intake and referral procedures, customer databases, resource information, and human services hotlines;
‘‘(iv) establishment of cooperative efforts with
employers to—
‘‘(I) facilitate job placement; and
‘‘(II) carry out any other activities that the
designated State unit and the employers determine
to be appropriate;
‘‘(v) identification of staff roles, responsibilities,
and available resources, and specification of the financial responsibility of each component of the statewide
workforce investment system with regard to paying
for necessary services (consistent with State law and
Federal requirements); and
‘‘(vi) specification of procedures for resolving disputes among such components.

112 STAT. 1130

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(B) REPLICATION OF COOPERATIVE AGREEMENTS.—The
State plan shall provide for the replication of such cooperative agreements at the local level between individual offices
of the designated State unit and local entities carrying
out activities through the statewide workforce investment
system.
‘‘(C) INTERAGENCY COOPERATION WITH OTHER AGENCIES.—The State plan shall include descriptions of interagency cooperation with, and utilization of the services
and facilities of, Federal, State, and local agencies and
programs, including programs carried out by the Under
Secretary for Rural Development of the Department of
Agriculture and State use contracting programs, to the
extent that such agencies and programs are not carrying
out activities through the statewide workforce investment
system.
‘‘(D) COORDINATION WITH EDUCATION OFFICIALS.—The
State plan shall contain plans, policies, and procedures
for coordination between the designated State agency and
education officials responsible for the public education of
students with disabilities, that are designed to facilitate
the transition of the students with disabilities from the
receipt of educational services in school to the receipt of
vocational rehabilitation services under this title, including
information on a formal interagency agreement with the
State educational agency that, at a minimum, provides
for—
‘‘(i) consultation and technical assistance to assist
educational agencies in planning for the transition of
students with disabilities from school to post-school
activities, including vocational rehabilitation services;
‘‘(ii) transition planning by personnel of the designated State agency and educational agency personnel
for students with disabilities that facilitates the
development and completion of their individualized
education programs under section 614(d) of the Individuals with Disabilities Education Act (as added by section 101 of Public Law 105–17);
‘‘(iii) the roles and responsibilities, including financial responsibilities, of each agency, including provisions for determining State lead agencies and qualified
personnel responsible for transition services; and
‘‘(iv) procedures for outreach to and identification
of students with disabilities who need the transition
services.
‘‘(E) COORDINATION WITH STATEWIDE INDEPENDENT LIVING COUNCILS AND INDEPENDENT LIVING CENTERS.—The
State plan shall include an assurance that the designated
State unit, the Statewide Independent Living Council
established under section 705, and the independent living
centers described in part C of title VII within the State
have developed working relationships and coordinate their
activities.
‘‘(F) COOPERATIVE AGREEMENT WITH RECIPIENTS OF
GRANTS FOR SERVICES TO AMERICAN INDIANS.—In applicable
cases, the State plan shall include an assurance that the
State has entered into a formal cooperative agreement

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1131

with each grant recipient in the State that receives funds
under part C. The agreement shall describe strategies for
collaboration and coordination in providing vocational
rehabilitation services to American Indians who are
individuals with disabilities, including—
‘‘(i) strategies for interagency referral and information sharing that will assist in eligibility determinations and the development of individualized plans for
employment;
‘‘(ii) procedures for ensuring that American Indians
who are individuals with disabilities and are living
near a reservation or tribal service area are provided
vocational rehabilitation services; and
‘‘(iii) provisions for sharing resources in cooperative
studies and assessments, joint training activities, and
other collaborative activities designed to improve the
provision of services to American Indians who are
individuals with disabilities.
‘‘(12) RESIDENCY.—The State plan shall include an assurance that the State will not impose a residence requirement
that excludes from services provided under the plan any individual who is present in the State.
‘‘(13) SERVICES TO AMERICAN INDIANS.—The State plan shall
include an assurance that, except as otherwise provided in
part C, the designated State agency will provide vocational
rehabilitation services to American Indians who are individuals
with disabilities residing in the State to the same extent as
the designated State agency provides such services to other
significant populations of individuals with disabilities residing
in the State.
‘‘(14) ANNUAL REVIEW OF INDIVIDUALS IN EXTENDED
EMPLOYMENT OR OTHER EMPLOYMENT UNDER SPECIAL CERTIFICATE PROVISIONS OF THE FAIR LABOR STANDARDS ACT OF 1938.—
The State plan shall provide for—
‘‘(A) an annual review and reevaluation of the status
of each individual with a disability served under this title
who has achieved an employment outcome either in an
extended employment setting in a community rehabilitation
program or any other employment under section 14(c) of
the Fair Labor Standards Act (29 U.S.C. 214(c)) for 2
years after the achievement of the outcome (and thereafter
if requested by the individual or, if appropriate, the individual’s representative), to determine the interests, priorities,
and needs of the individual with respect to competitive
employment or training for competitive employment;
‘‘(B) input into the review and reevaluation, and a
signed acknowledgment that such review and reevaluation
have been conducted, by the individual with a disability,
or, if appropriate, the individual’s representative; and
‘‘(C) maximum efforts, including the identification and
provision of vocational rehabilitation services, reasonable
accommodations, and other necessary support services, to
assist the individuals described in subparagraph (A) in
engaging in competitive employment.
‘‘(15) ANNUAL STATE GOALS AND REPORTS OF PROGRESS.—
‘‘(A) ASSESSMENTS AND ESTIMATES.—The State plan
shall—

112 STAT. 1132

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PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(i) include the results of a comprehensive, statewide assessment, jointly conducted by the designated
State unit and the State Rehabilitation Council (if
the State has such a Council) every 3 years, describing
the rehabilitation needs of individuals with disabilities
residing within the State, particularly the vocational
rehabilitation services needs of—
‘‘(I) individuals with the most significant
disabilities, including their need for supported
employment services;
‘‘(II) individuals with disabilities who are
minorities and individuals with disabilities who
have been unserved or underserved by the vocational rehabilitation program carried out under
this title; and
‘‘(III) individuals with disabilities served
through other components of the statewide
workforce investment system (other than the vocational rehabilitation program), as identified by
such individuals and personnel assisting such
individuals through the components;
‘‘(ii) include an assessment of the need to establish,
develop, or improve community rehabilitation programs within the State; and
‘‘(iii) provide that the State shall submit to the
Commissioner a report containing information regarding updates to the assessments, for any year in which
the State updates the assessments.
‘‘(B) ANNUAL ESTIMATES.—The State plan shall include,
and shall provide that the State shall annually submit
a report to the Commissioner that includes, State estimates
of—
‘‘(i) the number of individuals in the State who
are eligible for services under this title;
‘‘(ii) the number of such individuals who will
receive services provided with funds provided under
part B and under part B of title VI, including, if
the designated State agency uses an order of selection
in accordance with paragraph (5), estimates of the
number of individuals to be served under each priority
category within the order; and
‘‘(iii) the costs of the services described in clause
(i), including, if the designated State agency uses an
order of selection in accordance with paragraph (5),
the service costs for each priority category within the
order.
‘‘(C) GOALS AND PRIORITIES.—
‘‘(i) IN GENERAL.—The State plan shall identify
the goals and priorities of the State in carrying out
the program. The goals and priorities shall be jointly
developed, agreed to, and reviewed annually by the
designated State unit and the State Rehabilitation
Council, if the State has such a Council. Any revisions
to the goals and priorities shall be jointly agreed to
by the designated State unit and the State Rehabilitation Council, if the State has such a Council. The
State plan shall provide that the State shall submit

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1133

to the Commissioner a report containing information
regarding revisions in the goals and priorities, for any
year in which the State revises the goals and priorities.
‘‘(ii) BASIS.—The State goals and priorities shall
be based on an analysis of—
‘‘(I) the comprehensive assessment described
in subparagraph (A), including any updates to the
assessment;
‘‘(II) the performance of the State on the standards and indicators established under section 106;
and
‘‘(III) other available information on the operation and the effectiveness of the vocational
rehabilitation program carried out in the State,
including any reports received from the State
Rehabilitation Council, under section 105(c) and
the findings and recommendations from monitoring activities conducted under section 107.
‘‘(iii) SERVICE AND OUTCOME GOALS FOR CATEGORIES
IN ORDER OF SELECTION.—If the designated State
agency uses an order of selection in accordance with
paragraph (5), the State shall also identify in the State
plan service and outcome goals and the time within
which these goals may be achieved for individuals in
each priority category within the order.
‘‘(D) STRATEGIES.—The State plan shall contain a
description of the strategies the State will use to address
the needs identified in the assessment conducted under
subparagraph (A) and achieve the goals and priorities
identified in subparagraph (C), including—
‘‘(i) the methods to be used to expand and improve
services to individuals with disabilities, including how
a broad range of assistive technology services and
assistive technology devices will be provided to such
individuals at each stage of the rehabilitation process
and how such services and devices will be provided
to such individuals on a statewide basis;
‘‘(ii) outreach procedures to identify and serve
individuals with disabilities who are minorities and
individuals with disabilities who have been unserved
or underserved by the vocational rehabilitation program;
‘‘(iii) where necessary, the plan of the State for
establishing, developing, or improving community
rehabilitation programs;
‘‘(iv) strategies to improve the performance of the
State with respect to the evaluation standards and
performance indicators established pursuant to section
106; and
‘‘(v) strategies for assisting entities carrying out
other components of the statewide workforce investment system (other than the vocational rehabilitation
program) in assisting individuals with disabilities.
‘‘(E) EVALUATION AND REPORTS OF PROGRESS.—The
State plan shall—
‘‘(i) include the results of an evaluation of the
effectiveness of the vocational rehabilitation program,

112 STAT. 1134

PUBLIC LAW 105–220—AUG. 7, 1998
and a joint report by the designated State unit and
the State Rehabilitation Council, if the State has such
a Council, to the Commissioner on the progress made
in improving the effectiveness from the previous year,
which evaluation and report shall include—
‘‘(I) an evaluation of the extent to which the
goals identified in subparagraph (C) were achieved;
‘‘(II) a description of strategies that contributed to achieving the goals;
‘‘(III) to the extent to which the goals were
not achieved, a description of the factors that
impeded that achievement; and
‘‘(IV) an assessment of the performance of the
State on the standards and indicators established
pursuant to section 106; and
‘‘(ii) provide that the designated State unit and
the State Rehabilitation Council, if the State has such
a Council, shall jointly submit to the Commissioner
an annual report that contains the information
described in clause (i).
‘‘(16) PUBLIC COMMENT.—The State plan shall—
‘‘(A) provide that the designated State agency, prior
to the adoption of any policies or procedures governing
the provision of vocational rehabilitation services under
the State plan (including making any amendment to such
policies and procedures), shall conduct public meetings
throughout the State, after providing adequate notice of
the meetings, to provide the public, including individuals
with disabilities, an opportunity to comment on the policies
or procedures, and actively consult with the Director of
the client assistance program carried out under section
112, and, as appropriate, Indian tribes, tribal organizations,
and Native Hawaiian organizations on the policies or procedures; and
‘‘(B) provide that the designated State agency (or each
designated State agency if two agencies are designated)
and any sole agency administering the plan in a political
subdivision of the State, shall take into account, in connection with matters of general policy arising in the administration of the plan, the views of—
‘‘(i) individuals and groups of individuals who are
recipients of vocational rehabilitation services, or in
appropriate cases, the individuals’ representatives;
‘‘(ii) personnel working in programs that provide
vocational rehabilitation services to individuals with
disabilities;
‘‘(iii) providers of vocational rehabilitation services
to individuals with disabilities;
‘‘(iv) the director of the client assistance program;
and
‘‘(v) the State Rehabilitation Council, if the State
has such a Council.
‘‘(17) USE OF FUNDS FOR CONSTRUCTION OF FACILITIES.—
The State plan shall provide that if, under special circumstances, the State plan includes provisions for the construction of facilities for community rehabilitation programs—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1135

‘‘(A) the Federal share of the cost of construction for
the facilities for a fiscal year will not exceed an amount
equal to 10 percent of the State’s allotment under section
110 for such year;
‘‘(B) the provisions of section 306 (as in effect on the
day before the date of enactment of the Rehabilitation
Act Amendments of 1998) shall be applicable to such
construction and such provisions shall be deemed to apply
to such construction; and
‘‘(C) there shall be compliance with regulations the
Commissioner shall prescribe designed to assure that no
State will reduce its efforts in providing other vocational
rehabilitation services (other than for the establishment
of facilities for community rehabilitation programs) because
the plan includes such provisions for construction.
‘‘(18) INNOVATION AND EXPANSION ACTIVITIES.—The State
plan shall—
‘‘(A) include an assurance that the State will reserve
and use a portion of the funds allotted to the State under
section 110—
‘‘(i) for the development and implementation of
innovative approaches to expand and improve the
provision of vocational rehabilitation services to
individuals with disabilities under this title, particularly individuals with the most significant disabilities,
consistent with the findings of the statewide assessment and goals and priorities of the State as described
in paragraph (15); and
‘‘(ii) to support the funding of—
‘‘(I) the State Rehabilitation Council, if the
State has such a Council, consistent with the plan
prepared under section 105(d)(1); and
‘‘(II) the Statewide Independent Living Council, consistent with the plan prepared under section
705(e)(1);
‘‘(B) include a description of how the reserved funds
will be utilized; and
‘‘(C) provide that the State shall submit to the Commissioner an annual report containing a description of how
the reserved funds will be utilized.
‘‘(19) CHOICE.—The State plan shall include an assurance
that applicants and eligible individuals or, as appropriate, the
applicants’ representatives or individuals’ representatives, will
be provided information and support services to assist the
applicants and individuals in exercising informed choice
throughout the rehabilitation process, consistent with the provisions of section 102(d).
‘‘(20) INFORMATION AND REFERRAL SERVICES.—
‘‘(A) IN GENERAL.—The State plan shall include an
assurance that the designated State agency will implement
an information and referral system adequate to ensure
that individuals with disabilities will be provided accurate
vocational rehabilitation information and guidance, using
appropriate modes of communication, to assist such individuals in preparing for, securing, retaining, or regaining
employment, and will be appropriately referred to Federal

Regulations.

Reports.

112 STAT. 1136

PUBLIC LAW 105–220—AUG. 7, 1998
and State programs (other than the vocational rehabilitation program carried out under this title), including other
components of the statewide workforce investment system
in the State.
‘‘(B) REFERRALS.—An appropriate referral made
through the system shall—
‘‘(i) be to the Federal or State programs, including
programs carried out by other components of the statewide workforce investment system in the State, best
suited to address the specific employment needs of
an individual with a disability; and
‘‘(ii) include, for each of these programs, provision
to the individual of—
‘‘(I) a notice of the referral by the designated
State agency to the agency carrying out the program;
‘‘(II) information identifying a specific point
of contact within the agency carrying out the program; and
‘‘(III) information and advice regarding the
most suitable services to assist the individual to
prepare for, secure, retain, or regain employment.
‘‘(21) STATE INDEPENDENT CONSUMER-CONTROLLED COMMISSION; STATE REHABILITATION COUNCIL.—
‘‘(A) COMMISSION OR COUNCIL.—The State plan shall
provide that either—
‘‘(i) the designated State agency is an independent
commission that—
‘‘(I) is responsible under State law for operating, or overseeing the operation of, the vocational
rehabilitation program in the State;
‘‘(II) is consumer-controlled by persons who—
‘‘(aa) are individuals with physical or mental impairments that substantially limit major
life activities; and
‘‘(bb) represent individuals with a broad
range of disabilities, unless the designated
State unit under the direction of the Commission is the State agency for individuals who
are blind;
‘‘(III) includes family members, advocates, or
other representatives, of individuals with mental
impairments; and
‘‘(IV) undertakes the functions set forth in section 105(c)(4); or
‘‘(ii) the State has established a State Rehabilitation Council that meets the criteria set forth in section
105 and the designated State unit—
‘‘(I) in accordance with paragraph (15), jointly
develops, agrees to, and reviews annually State
goals and priorities, and jointly submits annual
reports of progress with the Council;
‘‘(II) regularly consults with the Council
regarding the development, implementation, and
revision of State policies and procedures of general
applicability pertaining to the provision of vocational rehabilitation services;

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112 STAT. 1137

‘‘(III) includes in the State plan and in any
revision to the State plan, a summary of input
provided by the Council, including recommendations from the annual report of the Council
described in section 105(c)(5), the review and
analysis of consumer satisfaction described in section 105(c)(4), and other reports prepared by the
Council, and the response of the designated State
unit to such input and recommendations, including
explanations for rejecting any input or recommendation; and
‘‘(IV) transmits to the Council—
‘‘(aa) all plans, reports, and other information required under this title to be submitted
to the Secretary;
‘‘(bb) all policies, and information on all
practices and procedures, of general applicability provided to or used by rehabilitation
personnel in carrying out this title; and
‘‘(cc) copies of due process hearing
decisions issued under this title, which shall
be transmitted in such a manner as to ensure
that the identity of the participants in the
hearings is kept confidential.
‘‘(B) MORE THAN ONE DESIGNATED STATE AGENCY.—
In the case of a State that, under section 101(a)(2), designates a State agency to administer the part of the State
plan under which vocational rehabilitation services are provided for individuals who are blind (or to supervise the
administration of such part by a local agency) and designates a separate State agency to administer the rest
of the State plan, the State shall either establish a State
Rehabilitation Council for each of the two agencies that
does not meet the requirements in subparagraph (A)(i),
or establish one State Rehabilitation Council for both agencies if neither agency meets the requirements of subparagraph (A)(i).
‘‘(22) SUPPORTED EMPLOYMENT STATE PLAN SUPPLEMENT.—
The State plan shall include an assurance that the State has
an acceptable plan for carrying out part B of title VI, including
the use of funds under that part to supplement funds made
available under part B of this title to pay for the cost of
services leading to supported employment.
‘‘(23) ANNUAL UPDATES.—The plan shall include an assurance that the State will submit to the Commissioner reports
containing annual updates of the information required under
paragraph (7) (relating to a comprehensive system of personnel
development) and any other updates of the information required
under this section that are requested by the Commissioner,
and annual reports as provided in paragraphs (15) (relating
to assessments, estimates, goals and priorities, and reports
of progress) and (18) (relating to innovation and expansion),
at such time and in such manner as the Secretary may determine to be appropriate.
‘‘(24) CERTAIN CONTRACTS AND COOPERATIVE AGREEMENTS.—

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112 STAT. 1138

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PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(A) CONTRACTS WITH FOR-PROFIT ORGANIZATIONS.—
The State plan shall provide that the designated State
agency has the authority to enter into contracts with forprofit organizations for the purpose of providing, as vocational rehabilitation services, on-the-job training and
related programs for individuals with disabilities under
part A of title VI, upon a determination by such agency
that such for-profit organizations are better qualified to
provide such rehabilitation services than nonprofit agencies
and organizations.
‘‘(B) COOPERATIVE AGREEMENTS WITH PRIVATE NONPROFIT ORGANIZATIONS.—The State plan shall describe the
manner in which cooperative agreements with private nonprofit vocational rehabilitation service providers will be
established.
‘‘(b) APPROVAL; DISAPPROVAL OF THE STATE PLAN.—
‘‘(1) APPROVAL.—The Commissioner shall approve any plan
that the Commissioner finds fulfills the conditions specified
in this section, and shall disapprove any plan that does not
fulfill such conditions.
‘‘(2) DISAPPROVAL.—Prior to disapproval of the State plan,
the Commissioner shall notify the State of the intention to
disapprove the plan and shall afford the State reasonable notice
and opportunity for a hearing.

‘‘SEC. 102. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR EMPLOYMENT.

‘‘(a) ELIGIBILITY.—
‘‘(1) CRITERION FOR ELIGIBILITY.—An individual is eligible
for assistance under this title if the individual—
‘‘(A) is an individual with a disability under section
7(20)(A); and
‘‘(B) requires vocational rehabilitation services to prepare for, secure, retain, or regain employment.
‘‘(2) PRESUMPTION OF BENEFIT.—
‘‘(A) DEMONSTRATION.—For purposes of this section,
an individual shall be presumed to be an individual that
can benefit in terms of an employment outcome from vocational rehabilitation services under section 7(20)(A), unless
the designated State unit involved can demonstrate by
clear and convincing evidence that such individual is
incapable of benefiting in terms of an employment outcome
from vocational rehabilitation services due to the severity
of the disability of the individual.
‘‘(B) METHODS.—In making the demonstration required
under subparagraph (A), the designated State unit shall
explore the individual’s abilities, capabilities, and capacity
to perform in work situations, through the use of trial
work experiences, as described in section 7(2)(D), with
appropriate supports provided through the designated State
unit, except under limited circumstances when an individual cannot take advantage of such experiences. Such experiences shall be of sufficient variety and over a sufficient
period of time to determine the eligibility of the individual
or to determine the existence of clear and convincing evidence that the individual is incapable of benefiting in terms
of an employment outcome from vocational rehabilitation

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112 STAT. 1139

services due to the severity of the disability of the individual.
‘‘(3) PRESUMPTION OF ELIGIBILITY.—
‘‘(A) IN GENERAL.—For purposes of this section, an
individual who has a disability or is blind as determined
pursuant to title II or title XVI of the Social Security
Act (42 U.S.C. 401 et seq. and 1381 et seq.) shall be—
‘‘(i) considered to be an individual with a significant disability under section 7(21)(A); and
‘‘(ii) presumed to be eligible for vocational
rehabilitation services under this title (provided that
the individual intends to achieve an employment outcome consistent with the unique strengths, resources,
priorities, concerns, abilities, capabilities, interests,
and informed choice of the individual) unless the designated State unit involved can demonstrate by clear
and convincing evidence that such individual is incapable of benefiting in terms of an employment outcome
from vocational rehabilitation services due to the severity of the disability of the individual in accordance
with paragraph (2).
‘‘(B) CONSTRUCTION.—Nothing in this paragraph shall
be construed to create an entitlement to any vocational
rehabilitation service.
‘‘(4) USE OF EXISTING INFORMATION.—
‘‘(A) IN GENERAL.—To the maximum extent appropriate
and consistent with the requirements of this part, for purposes of determining the eligibility of an individual for
vocational rehabilitation services under this title and developing the individualized plan for employment described
in subsection (b) for the individual, the designated State
unit shall use information that is existing and current
(as of the date of the determination of eligibility or of
the development of the individualized plan for employment), including information available from other programs
and providers, particularly information used by education
officials and the Social Security Administration, information provided by the individual and the family of the
individual, and information obtained under the assessment
for determining eligibility and vocational rehabilitation
needs.
‘‘(B) DETERMINATIONS BY OFFICIALS OF OTHER AGENCIES.—Determinations made by officials of other agencies,
particularly education officials described in section
101(a)(11)(D), regarding whether an individual satisfies one
or more factors relating to whether an individual is an
individual with a disability under section 7(20)(A) or an
individual with a significant disability under section
7(21)(A) shall be used, to the extent appropriate and
consistent with the requirements of this part, in assisting
the designated State unit in making such determinations.
‘‘(C) BASIS.—The determination of eligibility for vocational rehabilitation services shall be based on—
‘‘(i) the review of existing data described in section
7(2)(A)(i); and

112 STAT. 1140

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‘‘(ii) to the extent that such data is unavailable
or insufficient for determining eligibility, the provision
of assessment activities described in section 7(2)(A)(ii).
‘‘(5) DETERMINATION OF INELIGIBILITY.—If an individual
who applies for services under this title is determined, based
on the review of existing data and, to the extent necessary,
the assessment activities described in section 7(2)(A)(ii), not
to be eligible for the services, or if an eligible individual receiving services under an individualized plan for employment is
determined to be no longer eligible for the services—
‘‘(A) the ineligibility determination involved shall be
made only after providing an opportunity for full consultation with the individual or, as appropriate, the individual’s
representative;
‘‘(B) the individual or, as appropriate, the individual’s
representative, shall be informed in writing (supplemented
as necessary by other appropriate modes of communication
consistent with the informed choice of the individual) of
the ineligibility determination, including—
‘‘(i) the reasons for the determination; and
‘‘(ii) a description of the means by which the
individual may express, and seek a remedy for, any
dissatisfaction with the determination, including the
procedures for review by an impartial hearing officer
under subsection (c);
‘‘(C) the individual shall be provided with a description
of services available from the client assistance program
under section 112 and information on how to contact that
program; and
‘‘(D) any ineligibility determination that is based on
a finding that the individual is incapable of benefiting
in terms of an employment outcome shall be reviewed—
‘‘(i) within 12 months; and
‘‘(ii) thereafter, if such a review is requested by
the individual or, if appropriate, by the individual’s
representative.
‘‘(6) TIMEFRAME FOR MAKING AN ELIGIBILITY DETERMINATION.—The designated State unit shall determine whether an
individual is eligible for vocational rehabilitation services under
this title within a reasonable period of time, not to exceed
60 days, after the individual has submitted an application
for the services unless—
‘‘(A) exceptional and unforeseen circumstances beyond
the control of the designated State unit preclude making
an eligibility determination within 60 days and the designated State unit and the individual agree to a specific
extension of time; or
‘‘(B) the designated State unit is exploring an individual’s abilities, capabilities, and capacity to perform in work
situations under paragraph (2)(B).
‘‘(b) DEVELOPMENT OF AN INDIVIDUALIZED PLAN FOR EMPLOYMENT.—
‘‘(1) OPTIONS FOR DEVELOPING AN INDIVIDUALIZED PLAN FOR
EMPLOYMENT.—If an individual is determined to be eligible
for vocational rehabilitation services as described in subsection
(a), the designated State unit shall complete the assessment
for determining eligibility and vocational rehabilitation needs,

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1141

as appropriate, and shall provide the eligible individual or
the individual’s representative, in writing and in an appropriate
mode of communication, with information on the individual’s
options for developing an individualized plan for employment,
including—
‘‘(A) information on the availability of assistance, to
the extent determined to be appropriate by the eligible
individual, from a qualified vocational rehabilitation counselor in developing all or part of the individualized plan
for employment for the individual, and the availability
of technical assistance in developing all or part of the
individualized plan for employment for the individual;
‘‘(B) a description of the full range of components that
shall be included in an individualized plan for employment;
‘‘(C) as appropriate—
‘‘(i) an explanation of agency guidelines and criteria associated with financial commitments concerning
an individualized plan for employment;
‘‘(ii) additional information the eligible individual
requests or the designated State unit determines to
be necessary; and
‘‘(iii) information on the availability of assistance
in completing designated State agency forms required
in developing an individualized plan for employment;
and
‘‘(D)(i) a description of the rights and remedies available to such an individual including, if appropriate,
recourse to the processes set forth in subsection (c); and
‘‘(ii) a description of the availability of a client assistance program established pursuant to section 112 and
information about how to contact the client assistance program.
‘‘(2) MANDATORY PROCEDURES.—
‘‘(A) WRITTEN DOCUMENT.—An individualized plan for
employment shall be a written document prepared on forms
provided by the designated State unit.
‘‘(B) INFORMED CHOICE.—An individualized plan for
employment shall be developed and implemented in a manner that affords eligible individuals the opportunity to exercise informed choice in selecting an employment outcome,
the specific vocational rehabilitation services to be provided
under the plan, the entity that will provide the vocational
rehabilitation services, and the methods used to procure
the services, consistent with subsection (d).
‘‘(C) SIGNATORIES.—An individualized plan for employment shall be—
‘‘(i) agreed to, and signed by, such eligible individual or, as appropriate, the individual’s representative;
and
‘‘(ii) approved and signed by a qualified vocational
rehabilitation counselor employed by the designated
State unit.
‘‘(D) COPY.—A copy of the individualized plan for
employment for an eligible individual shall be provided
to the individual or, as appropriate, to the individual’s
representative, in writing and, if appropriate, in the native

112 STAT. 1142

PUBLIC LAW 105–220—AUG. 7, 1998
language or mode of communication of the individual or,
as appropriate, of the individual’s representative.
‘‘(E) REVIEW AND AMENDMENT.—The individualized
plan for employment shall be—
‘‘(i) reviewed at least annually by—
‘‘(I) a qualified vocational rehabilitation counselor; and
‘‘(II) the eligible individual or, as appropriate,
the individual’s representative; and
‘‘(ii) amended, as necessary, by the individual or,
as appropriate, the individual’s representative, in
collaboration with a representative of the designated
State agency or a qualified vocational rehabilitation
counselor (to the extent determined to be appropriate
by the individual), if there are substantive changes
in the employment outcome, the vocational rehabilitation services to be provided, or the service providers
of the services (which amendments shall not take effect
until agreed to and signed by the eligible individual
or, as appropriate, the individual’s representative, and
by a qualified vocational rehabilitation counselor
employed by the designated State unit).
‘‘(3) MANDATORY COMPONENTS OF AN INDIVIDUALIZED PLAN
FOR EMPLOYMENT.—Regardless of the approach selected by an
eligible individual to develop an individualized plan for employment, an individualized plan for employment shall, at a minimum, contain mandatory components consisting of—
‘‘(A) a description of the specific employment outcome
that is chosen by the eligible individual, consistent with
the unique strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice of the
eligible individual, and, to the maximum extent appropriate, results in employment in an integrated setting;
‘‘(B)(i) a description of the specific vocational rehabilitation services that are—
‘‘(I) needed to achieve the employment outcome,
including, as appropriate, the provision of assistive
technology devices and assistive technology services,
and personal assistance services, including training
in the management of such services; and
‘‘(II) provided in the most integrated setting that
is appropriate for the service involved and is consistent
with the informed choice of the eligible individual;
and
‘‘(ii) timelines for the achievement of the employment
outcome and for the initiation of the services;
‘‘(C) a description of the entity chosen by the eligible
individual or, as appropriate, the individual’s representative, that will provide the vocational rehabilitation services,
and the methods used to procure such services;
‘‘(D) a description of criteria to evaluate progress
toward achievement of the employment outcome;
‘‘(E) the terms and conditions of the individualized
plan for employment, including, as appropriate, information
describing—
‘‘(i) the responsibilities of the designated State
unit;

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112 STAT. 1143

‘‘(ii) the responsibilities of the eligible individual,
including—
‘‘(I) the responsibilities the eligible individual
will assume in relation to the employment outcome
of the individual;
‘‘(II) if applicable, the participation of the
eligible individual in paying for the costs of the
plan; and
‘‘(III) the responsibility of the eligible individual with regard to applying for and securing comparable benefits as described in section 101(a)(8);
and
‘‘(iii) the responsibilities of other entities as the
result of arrangements made pursuant to comparable
services or benefits requirements as described in section 101(a)(8);
‘‘(F) for an eligible individual with the most significant
disabilities for whom an employment outcome in a supported employment setting has been determined to be
appropriate, information identifying—
‘‘(i) the extended services needed by the eligible
individual; and
‘‘(ii) the source of extended services or, to the
extent that the source of the extended services cannot
be identified at the time of the development of the
individualized plan for employment, a description of
the basis for concluding that there is a reasonable
expectation that such source will become available;
and
‘‘(G) as determined to be necessary, a statement of
projected need for post-employment services.
‘‘(c) PROCEDURES.—
‘‘(1) IN GENERAL.—Each State shall establish procedures
for mediation of, and procedures for review through an impartial due process hearing of, determinations made by personnel
of the designated State unit that affect the provision of vocational rehabilitation services to applicants or eligible individuals.
‘‘(2) NOTIFICATION.—
‘‘(A) RIGHTS AND ASSISTANCE.—The procedures shall
provide that an applicant or an eligible individual or, as
appropriate, the applicant’s representative or individual’s
representative shall be notified of—
‘‘(i) the right to obtain review of determinations
described in paragraph (1) in an impartial due process
hearing under paragraph (5);
‘‘(ii) the right to pursue mediation with respect
to the determinations under paragraph (4); and
‘‘(iii) the availability of assistance from the client
assistance program under section 112.
‘‘(B) TIMING.—Such notification shall be provided in
writing—
‘‘(i) at the time an individual applies for vocational
rehabilitation services provided under this title;
‘‘(ii) at the time the individualized plan for employment for the individual is developed; and

112 STAT. 1144

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(iii) upon reduction, suspension, or cessation of
vocational rehabilitation services for the individual.
‘‘(3) EVIDENCE AND REPRESENTATION.—The procedures
required under this subsection shall, at a minimum—
‘‘(A) provide an opportunity for an applicant or an
eligible individual, or, as appropriate, the applicant’s representative or individual’s representative, to submit at the
mediation session or hearing evidence and information to
support the position of the applicant or eligible individual;
and
‘‘(B) include provisions to allow an applicant or an
eligible individual to be represented in the mediation session or hearing by a person selected by the applicant or
eligible individual.
‘‘(4) MEDIATION.—
‘‘(A) PROCEDURES.—Each State shall ensure that procedures are established and implemented under this subsection to allow parties described in paragraph (1) to disputes involving any determination described in paragraph
(1) to resolve such disputes through a mediation process
that, at a minimum, shall be available whenever a hearing
is requested under this subsection.
‘‘(B) REQUIREMENTS.—Such procedures shall ensure
that the mediation process—
‘‘(i) is voluntary on the part of the parties;
‘‘(ii) is not used to deny or delay the right of
an individual to a hearing under this subsection, or
to deny any other right afforded under this title; and
‘‘(iii) is conducted by a qualified and impartial
mediator who is trained in effective mediation techniques.
‘‘(C) LIST OF MEDIATORS.—The State shall maintain
a list of individuals who are qualified mediators and
knowledgeable in laws (including regulations) relating to
the provision of vocational rehabilitation services under
this title, from which the mediators described in subparagraph (B) shall be selected.
‘‘(D) COST.—The State shall bear the cost of the mediation process.
‘‘(E) SCHEDULING.—Each session in the mediation process shall be scheduled in a timely manner and shall be
held in a location that is convenient to the parties to
the dispute.
‘‘(F) AGREEMENT.—An agreement reached by the parties to the dispute in the mediation process shall be set
forth in a written mediation agreement.
‘‘(G) CONFIDENTIALITY.—Discussions that occur during
the mediation process shall be confidential and may not
be used as evidence in any subsequent due process hearing
or civil proceeding. The parties to the mediation process
may be required to sign a confidentiality pledge prior to
the commencement of such process.
‘‘(H) CONSTRUCTION.—Nothing in this subsection shall
be construed to preclude the parties to such a dispute
from informally resolving the dispute prior to proceedings
under this paragraph or paragraph (5), if the informal
process used is not used to deny or delay the right of

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1145

the applicant or eligible individual to a hearing under
this subsection or to deny any other right afforded under
this title.
‘‘(5) HEARINGS.—
‘‘(A) OFFICER.—A due process hearing described in
paragraph (2) shall be conducted by an impartial hearing
officer who shall issue a decision based on the provisions
of the approved State plan, this Act (including regulations
implementing this Act), and State regulations and policies
that are consistent with the Federal requirements specified
in this title. The officer shall provide the decision in writing
to the applicant or eligible individual, or, as appropriate,
the applicant’s representative or individual’s representative, and to the designated State unit.
‘‘(B) LIST.—The designated State unit shall maintain
a list of qualified impartial hearing officers who are
knowledgeable in laws (including regulations) relating to
the provision of vocational rehabilitation services under
this title from which the officer described in subparagraph
(A) shall be selected. For the purposes of maintaining such
list, impartial hearing officers shall be identified jointly
by—
‘‘(i) the designated State unit; and
‘‘(ii) members of the Council or commission, as
appropriate, described in section 101(a)(21).
‘‘(C) SELECTION.—Such an impartial hearing officer
shall be selected to hear a particular case relating to a
determination—
‘‘(i) on a random basis; or
‘‘(ii) by agreement between—
‘‘(I) the Director of the designated State unit
and the individual with a disability; or
‘‘(II) in appropriate cases, the Director and
the individual’s representative.
‘‘(D) PROCEDURES FOR SEEKING REVIEW.—A State may
establish procedures to enable a party involved in a hearing
under this paragraph to seek an impartial review of the
decision of the hearing officer under subparagraph (A) by—
‘‘(i) the chief official of the designated State agency
if the State has established both a designated State
agency and a designated State unit under section
101(a)(2); or
‘‘(ii) an official from the office of the Governor.
‘‘(E) REVIEW REQUEST.—If the State establishes impartial review procedures under subparagraph (D), either
party may request the review of the decision of the hearing
officer within 20 days after the decision.
‘‘(F) REVIEWING OFFICIAL.—The reviewing official
described in subparagraph (D) shall—
‘‘(i) in conducting the review, provide an opportunity for the submission of additional evidence and
information relevant to a final decision concerning the
matter under review;
‘‘(ii) not overturn or modify the decision of the
hearing officer, or part of the decision, that supports
the position of the applicant or eligible individual
unless the reviewing official concludes, based on clear

112 STAT. 1146

Courts.
Records.

PUBLIC LAW 105–220—AUG. 7, 1998
and convincing evidence, that the decision of the impartial hearing officer is clearly erroneous on the basis
of being contrary to the approved State plan, this Act
(including regulations implementing this Act) or any
State regulation or policy that is consistent with the
Federal requirements specified in this title; and
‘‘(iii) make a final decision with respect to the
matter in a timely manner and provide such decision
in writing to the applicant or eligible individual, or,
as appropriate, the applicant’s representative or
individual’s representative, and to the designated State
unit, including a full report of the findings and the
grounds for such decision.
‘‘(G) FINALITY OF HEARING DECISION.—A decision made
after a hearing under subparagraph (A) shall be final,
except that a party may request an impartial review if
the State has established procedures for such review under
subparagraph (D) and a party involved in a hearing may
bring a civil action under subparagraph (J).
‘‘(H) FINALITY OF REVIEW.—A decision made under
subparagraph (F) shall be final unless such a party brings
a civil action under subparagraph (J).
‘‘(I) IMPLEMENTATION.—If a party brings a civil action
under subparagraph (J) to challenge a final decision of
a hearing officer under subparagraph (A) or to challenge
a final decision of a State reviewing official under subparagraph (F), the final decision involved shall be implemented
pending review by the court.
‘‘(J) CIVIL ACTION.—
‘‘(i) IN GENERAL.—Any party aggrieved by a final
decision described in subparagraph (I), may bring a
civil action for review of such decision. The action
may be brought in any State court of competent jurisdiction or in a district court of the United States of
competent jurisdiction without regard to the amount
in controversy.
‘‘(ii) PROCEDURE.—In any action brought under this
subparagraph, the court—
‘‘(I) shall receive the records relating to the
hearing under subparagraph (A) and the records
relating to the State review under subparagraphs
(D) through (F), if applicable;
‘‘(II) shall hear additional evidence at the
request of a party to the action; and
‘‘(III) basing the decision of the court on the
preponderance of the evidence, shall grant such
relief as the court determines to be appropriate.
‘‘(6) HEARING BOARD.—
‘‘(A) IN GENERAL.—A fair hearing board, established
by a State before January 1, 1985, and authorized under
State law to review determinations or decisions under this
Act, is authorized to carry out the responsibilities of the
impartial hearing officer under this subsection.
‘‘(B) APPLICATION.—The provisions of paragraphs (1),
(2), and (3) that relate to due process hearings do not
apply, and paragraph (5) (other than subparagraph (J))

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1147

does not apply, to any State to which subparagraph (A)
applies.
‘‘(7) IMPACT ON PROVISION OF SERVICES.—Unless the
individual with a disability so requests, or, in an appropriate
case, the individual’s representative, so requests, pending a
decision by a mediator, hearing officer, or reviewing officer
under this subsection, the designated State unit shall not
institute a suspension, reduction, or termination of services
being provided for the individual, including evaluation and
assessment services and plan development, unless such services
have been obtained through misrepresentation, fraud, collusion,
or criminal conduct on the part of the individual, or the individual’s representative.
‘‘(8) INFORMATION COLLECTION AND REPORT.—
‘‘(A) IN GENERAL.—The Director of the designated State
unit shall collect information described in subparagraph
(B) and prepare and submit to the Commissioner a report
containing such information. The Commissioner shall prepare a summary of the information furnished under this
paragraph and include the summary in the annual report
submitted under section 13. The Commissioner shall also
collect copies of the final decisions of impartial hearing
officers conducting hearings under this subsection and
State officials conducting reviews under this subsection.
‘‘(B) INFORMATION.—The information required to be collected under this subsection includes—
‘‘(i) a copy of the standards used by State reviewing
officials for reviewing decisions made by impartial
hearing officers under this subsection;
‘‘(ii) information on the number of hearings and
reviews sought from the impartial hearing officers and
the State reviewing officials, including the type of complaints and the issues involved;
‘‘(iii) information on the number of hearing
decisions made under this subsection that were not
reviewed by the State reviewing officials; and
‘‘(iv) information on the number of the hearing
decisions that were reviewed by the State reviewing
officials, and, based on such reviews, the number of
hearing decisions that were—
‘‘(I) sustained in favor of an applicant or
eligible individual;
‘‘(II) sustained in favor of the designated State
unit;
‘‘(III) reversed in whole or in part in favor
of the applicant or eligible individual; and
‘‘(IV) reversed in whole or in part in favor
of the designated State unit.
‘‘(C) CONFIDENTIALITY.—The confidentiality of records
of applicants and eligible individuals maintained by the
designated State unit shall not preclude the access of the
Commissioner to those records for the purposes described
in subparagraph (A).
‘‘(d) POLICIES AND PROCEDURES.—Each designated State agency,
in consultation with the State Rehabilitation Council, if the State
has such a council, shall, consistent with section 100(a)(3)(C),
develop and implement written policies and procedures that enable

112 STAT. 1148

PUBLIC LAW 105–220—AUG. 7, 1998

each individual who is an applicant for or eligible to receive vocational rehabilitation services under this title to exercise informed
choice throughout the vocational rehabilitation process carried out
under this title, including policies and procedures that require
the designated State agency—
‘‘(1) to inform each such applicant and eligible individual
(including students with disabilities who are making the transition from programs under the responsibility of an educational
agency to programs under the responsibility of the designated
State unit), through appropriate modes of communication, about
the availability of, and opportunities to exercise, informed
choice, including the availability of support services for individuals with cognitive or other disabilities who require assistance
in exercising informed choice, throughout the vocational
rehabilitation process;
‘‘(2) to assist applicants and eligible individuals in exercising informed choice in decisions related to the provision of
assessment services under this title;
‘‘(3) to develop and implement flexible procurement policies
and methods that facilitate the provision of services, and that
afford eligible individuals meaningful choices among the methods used to procure services, under this title;
‘‘(4) to provide or assist eligible individuals in acquiring
information that enables those individuals to exercise informed
choice under this title in the selection of—
‘‘(A) the employment outcome;
‘‘(B) the specific vocational rehabilitation services
needed to achieve the employment outcome;
‘‘(C) the entity that will provide the services;
‘‘(D) the employment setting and the settings in which
the services will be provided; and
‘‘(E) the methods available for procuring the services;
and
‘‘(5) to ensure that the availability and scope of informed
choice provided under this section is consistent with the obligations of the designated State agency under this title.
29 USC 723.

‘‘SEC. 103. VOCATIONAL REHABILITATION SERVICES.

‘‘(a) VOCATIONAL REHABILITATION SERVICES FOR INDIVIDUALS.—
Vocational rehabilitation services provided under this title are any
services described in an individualized plan for employment necessary to assist an individual with a disability in preparing for,
securing, retaining, or regaining an employment outcome that is
consistent with the strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice of the individual,
including—
‘‘(1) an assessment for determining eligibility and vocational rehabilitation needs by qualified personnel, including,
if appropriate, an assessment by personnel skilled in rehabilitation technology;
‘‘(2) counseling and guidance, including information and
support services to assist an individual in exercising informed
choice consistent with the provisions of section 102(d);
‘‘(3) referral and other services to secure needed services
from other agencies through agreements developed under section 101(a)(11), if such services are not available under this
title;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1149

‘‘(4) job-related services, including job search and placement
assistance, job retention services, followup services, and followalong services;
‘‘(5) vocational and other training services, including the
provision of personal and vocational adjustment services, books,
tools, and other training materials, except that no training
services provided at an institution of higher education shall
be paid for with funds under this title unless maximum efforts
have been made by the designated State unit and the individual
to secure grant assistance, in whole or in part, from other
sources to pay for such training;
‘‘(6) to the extent that financial support is not readily
available from a source (such as through health insurance
of the individual or through comparable services and benefits
consistent with section 101(a)(8)(A)), other than the designated
State unit, diagnosis and treatment of physical and mental
impairments, including—
‘‘(A) corrective surgery or therapeutic treatment necessary to correct or substantially modify a physical or mental condition that constitutes a substantial impediment
to employment, but is of such a nature that such correction
or modification may reasonably be expected to eliminate
or reduce such impediment to employment within a reasonable length of time;
‘‘(B) necessary hospitalization in connection with surgery or treatment;
‘‘(C) prosthetic and orthotic devices;
‘‘(D) eyeglasses and visual services as prescribed by
qualified personnel who meet State licensure laws and
who are selected by the individual;
‘‘(E) special services (including transplantation and
dialysis), artificial kidneys, and supplies necessary for the
treatment of individuals with end-stage renal disease; and
‘‘(F) diagnosis and treatment for mental and emotional
disorders by qualified personnel who meet State licensure
laws;
‘‘(7) maintenance for additional costs incurred while participating in an assessment for determining eligibility and vocational rehabilitation needs or while receiving services under
an individualized plan for employment;
‘‘(8) transportation, including adequate training in the use
of public transportation vehicles and systems, that is provided
in connection with the provision of any other service described
in this section and needed by the individual to achieve an
employment outcome;
‘‘(9) on-the-job or other related personal assistance services
provided while an individual is receiving other services
described in this section;
‘‘(10) interpreter services provided by qualified personnel
for individuals who are deaf or hard of hearing, and reader
services for individuals who are determined to be blind, after
an examination by qualified personnel who meet State licensure
laws;
‘‘(11) rehabilitation teaching services, and orientation and
mobility services, for individuals who are blind;
‘‘(12) occupational licenses, tools, equipment, and initial
stocks and supplies;

112 STAT. 1150

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(13) technical assistance and other consultation services
to conduct market analyses, develop business plans, and otherwise provide resources, to the extent such resources are authorized to be provided through the statewide workforce investment
system, to eligible individuals who are pursuing self-employment or telecommuting or establishing a small business operation as an employment outcome;
‘‘(14) rehabilitation technology, including telecommunications, sensory, and other technological aids and devices;
‘‘(15) transition services for students with disabilities, that
facilitate the achievement of the employment outcome identified
in the individualized plan for employment;
‘‘(16) supported employment services;
‘‘(17) services to the family of an individual with a disability
necessary to assist the individual to achieve an employment
outcome; and
‘‘(18) specific post-employment services necessary to assist
an individual with a disability to, retain, regain, or advance
in employment.
‘‘(b) VOCATIONAL REHABILITATION SERVICES FOR GROUPS OF
INDIVIDUALS.—Vocational rehabilitation services provided for the
benefit of groups of individuals with disabilities may also include
the following:
‘‘(1) In the case of any type of small business operated
by individuals with significant disabilities the operation of
which can be improved by management services and supervision provided by the designated State agency, the provision
of such services and supervision, along or together with the
acquisition by the designated State agency of vending facilities
or other equipment and initial stocks and supplies.
‘‘(2)(A) The establishment, development, or improvement
of community rehabilitation programs, including, under special
circumstances, the construction of a facility. Such programs
shall be used to provide services that promote integration and
competitive employment.
‘‘(B) The provision of other services, that promise to contribute substantially to the rehabilitation of a group of individuals
but that are not related directly to the individualized plan
for employment of any 1 individual with a disability.
‘‘(3) The use of telecommunications systems (including telephone, television, satellite, radio, and other similar systems)
that have the potential for substantially improving delivery
methods of activities described in this section and developing
appropriate programming to meet the particular needs of
individuals with disabilities.
‘‘(4)(A) Special services to provide nonvisual access to
information for individuals who are blind, including the use
of telecommunications, Braille, sound recordings, or other
appropriate media.
‘‘(B) Captioned television, films, or video cassettes for
individuals who are deaf or hard of hearing.
‘‘(C) Tactile materials for individuals who are deaf-blind.
‘‘(D) Other special services that provide information
through tactile, vibratory, auditory, and visual media.
‘‘(5) Technical assistance and support services to businesses
that are not subject to title I of the Americans with Disabilities

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1151

Act of 1990 (42 U.S.C. 12111 et seq.) and that are seeking
to employ individuals with disabilities.
‘‘(6) Consultative and technical assistance services to assist
educational agencies in planning for the transition of students
with disabilities from school to post-school activities, including
employment.
‘‘SEC. 104. NON-FEDERAL SHARE FOR ESTABLISHMENT OF PROGRAM
OR CONSTRUCTION.

29 USC 724.

‘‘For the purpose of determining the amount of payments to
States for carrying out part B (or to an Indian tribe under part
C), the non-Federal share, subject to such limitations and conditions
as may be prescribed in regulations by the Commissioner, shall
include contributions of funds made by any private agency,
organization, or individual to a State or local agency to assist
in meeting the costs of establishment of a community rehabilitation
program or construction, under special circumstances, of a facility
for such a program, which would be regarded as State or local
funds except for the condition, imposed by the contributor, limiting
use of such funds to establishment of such a program or construction
of such a facility.
‘‘SEC. 105. STATE REHABILITATION COUNCIL.

‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—Except as provided in section
101(a)(21)(A)(i), to be eligible to receive financial assistance
under this title a State shall establish a State Rehabilitation
Council (referred to in this section as the ‘Council’) in accordance with this section.
‘‘(2) SEPARATE AGENCY FOR INDIVIDUALS WHO ARE BLIND.—
A State that designates a State agency to administer the part
of the State plan under which vocational rehabilitation services
are provided for individuals who are blind under section
101(a)(2)(A)(i) may establish a separate Council in accordance
with this section to perform the duties of such a Council with
respect to such State agency.
‘‘(b) COMPOSITION AND APPOINTMENT.—
‘‘(1) COMPOSITION.—
‘‘(A) IN GENERAL.—Except in the case of a separate
Council established under subsection (a)(2), the Council
shall be composed of—
‘‘(i) at least one representative of the Statewide
Independent Living Council established under section
705, which representative may be the chairperson or
other designee of the Council;
‘‘(ii) at least one representative of a parent training
and information center established pursuant to section
682(a) of the Individuals with Disabilities Education
Act (as added by section 101 of the Individuals with
Disabilities Education Act Amendments of 1997; Public
Law 105–17);
‘‘(iii) at least one representative of the client assistance program established under section 112;
‘‘(iv) at least one qualified vocational rehabilitation
counselor, with knowledge of and experience with vocational rehabilitation programs, who shall serve as an
ex officio, nonvoting member of the Council if the counselor is an employee of the designated State agency;

29 USC 725.

112 STAT. 1152

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(v) at least one representative of community
rehabilitation program service providers;
‘‘(vi) four representatives of business, industry, and
labor;
‘‘(vii) representatives of disability advocacy groups
representing a cross section of—
‘‘(I) individuals with physical, cognitive, sensory, and mental disabilities; and
‘‘(II) individuals’ representatives of individuals
with disabilities who have difficulty in representing themselves or are unable due to their disabilities to represent themselves;
‘‘(viii) current or former applicants for, or recipients of, vocational rehabilitation services;
‘‘(ix) in a State in which one or more projects
are carried out under section 121, at least one representative of the directors of the projects;
‘‘(x) at least one representative of the State educational agency responsible for the public education
of students with disabilities who are eligible to receive
services under this title and part B of the Individuals
with Disabilities Education Act; and
‘‘(xi) at least one representative of the State
workforce investment board.
‘‘(B) SEPARATE COUNCIL.—In the case of a separate
Council established under subsection (a)(2), the Council
shall be composed of—
‘‘(i) at least one representative described in
subparagraph (A)(i);
‘‘(ii) at least one representative described in
subparagraph (A)(ii);
‘‘(iii) at least one representative described in
subparagraph (A)(iii);
‘‘(iv) at least one vocational rehabilitation counselor described in subparagraph (A)(iv), who shall serve
as described in such subparagraph;
‘‘(v) at least one representative described in
subparagraph (A)(v);
‘‘(vi) four representatives described in subparagraph (A)(vi);
‘‘(vii) at least one representative of a disability
advocacy group representing individuals who are blind;
‘‘(viii) at least one individual’s representative, of
an individual who—
‘‘(I) is an individual who is blind and has
multiple disabilities; and
‘‘(II) has difficulty in representing himself or
herself or is unable due to disabilities to represent
himself or herself;
‘‘(ix) applicants or recipients described in subparagraph (A)(viii);
‘‘(x) in a State described in subparagraph (A)(ix),
at least one representative described in such subparagraph;
‘‘(xi) at least one representative described in
subparagraph (A)(x); and

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1153

‘‘(xii) at least one representative described in
subparagraph (A)(xi).
‘‘(C) EXCEPTION.—In the case of a separate Council
established under subsection (a)(2), any Council that is
required by State law, as in effect on the date of enactment
of the Rehabilitation Act Amendments of 1992, to have
fewer than 15 members shall be deemed to be in compliance
with subparagraph (B) if the Council—
‘‘(i) meets the requirements of subparagraph (B),
other than the requirements of clauses (vi) and (ix)
of such subparagraph; and
‘‘(ii) includes at least—
‘‘(I) one representative described in subparagraph (B)(vi); and
‘‘(II) one applicant or recipient described in
subparagraph (B)(ix).
‘‘(2) EX OFFICIO MEMBER.—The Director of the designated
State unit shall be an ex officio, nonvoting member of the
Council.
‘‘(3) APPOINTMENT.—Members of the Council shall be
appointed by the Governor. The Governor shall select members
after soliciting recommendations from representatives of
organizations representing a broad range of individuals with
disabilities and organizations interested in individuals with
disabilities. In selecting members, the Governor shall consider,
to the greatest extent practicable, the extent to which minority
populations are represented on the Council.
‘‘(4) QUALIFICATIONS.—
‘‘(A) IN GENERAL.—A majority of Council members shall
be persons who are—
‘‘(i) individuals with disabilities described in section 7(20)(A); and
‘‘(ii) not employed by the designated State unit.
‘‘(B) SEPARATE COUNCIL.—In the case of a separate
Council established under subsection (a)(2), a majority of
Council members shall be persons who are—
‘‘(i) blind; and
‘‘(ii) not employed by the designated State unit.
‘‘(5) CHAIRPERSON.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the Council shall select a chairperson from among
the membership of the Council.
‘‘(B) DESIGNATION BY GOVERNOR.—In States in which
the chief executive officer does not have veto power pursuant to State law, the Governor shall designate a member
of the Council to serve as the chairperson of the Council
or shall require the Council to so designate such a member.
‘‘(6) TERMS OF APPOINTMENT.—
‘‘(A) LENGTH OF TERM.—Each member of the Council
shall serve for a term of not more than 3 years, except
that—
‘‘(i) a member appointed to fill a vacancy occurring
prior to the expiration of the term for which a predecessor was appointed, shall be appointed for the
remainder of such term; and
‘‘(ii) the terms of service of the members initially
appointed shall be (as specified by the Governor) for

112 STAT. 1154

Reports.

PUBLIC LAW 105–220—AUG. 7, 1998

such fewer number of years as will provide for the
expiration of terms on a staggered basis.
‘‘(B) NUMBER OF TERMS.—No member of the Council,
other than a representative described in clause (iii) or
(ix) of paragraph (1)(A), or clause (iii) or (x) of paragraph
(1)(B), may serve more than two consecutive full terms.
‘‘(7) VACANCIES.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), any vacancy occurring in the membership of the Council shall be filled in the same manner as the original
appointment. The vacancy shall not affect the power of
the remaining members to execute the duties of the Council.
‘‘(B) DELEGATION.—The Governor may delegate the
authority to fill such a vacancy to the remaining members
of the Council after making the original appointment.
‘‘(c) FUNCTIONS OF COUNCIL.—The Council shall, after
consulting with the State workforce investment board—
‘‘(1) review, analyze, and advise the designated State unit
regarding the performance of the responsibilities of the unit
under this title, particularly responsibilities relating to—
‘‘(A) eligibility (including order of selection);
‘‘(B) the extent, scope, and effectiveness of services
provided; and
‘‘(C) functions performed by State agencies that affect
or that potentially affect the ability of individuals with
disabilities in achieving employment outcomes under this
title;
‘‘(2) in partnership with the designated State unit—
‘‘(A) develop, agree to, and review State goals and
priorities in accordance with section 101(a)(15)(C); and
‘‘(B) evaluate the effectiveness of the vocational
rehabilitation program and submit reports of progress to
the Commissioner in accordance with section 101(a)(15)(E);
‘‘(3) advise the designated State agency and the designated
State unit regarding activities authorized to be carried out
under this title, and assist in the preparation of the State
plan and amendments to the plan, applications, reports, needs
assessments, and evaluations required by this title;
‘‘(4) to the extent feasible, conduct a review and analysis
of the effectiveness of, and consumer satisfaction with—
‘‘(A) the functions performed by the designated State
agency;
‘‘(B) vocational rehabilitation services provided by State
agencies and other public and private entities responsible
for providing vocational rehabilitation services to individuals with disabilities under this Act; and
‘‘(C) employment outcomes achieved by eligible individuals receiving services under this title, including the availability of health and other employment benefits in connection with such employment outcomes;
‘‘(5) prepare and submit an annual report to the Governor
and the Commissioner on the status of vocational rehabilitation
programs operated within the State, and make the report available to the public;
‘‘(6) to avoid duplication of efforts and enhance the number
of individuals served, coordinate activities with the activities

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1155

of other councils within the State, including the Statewide
Independent Living Council established under section 705, the
advisory panel established under section 612(a)(21) of the
Individual with Disabilities Education Act (as amended by section 101 of the Individuals with Disabilities Education Act
Amendments of 1997; Public Law 105–17), the State Developmental Disabilities Council described in section 124 of the
Developmental Disabilities Assistance and Bill of Rights Act
(42 U.S.C. 6024), the State mental health planning council
established under section 1914(a) of the Public Health Service
Act (42 U.S.C. 300x–4(a)), and the State workforce investment
board;
‘‘(7) provide for coordination and the establishment of working relationships between the designated State agency and
the Statewide Independent Living Council and centers for
independent living within the State; and
‘‘(8) perform such other functions, consistent with the purpose of this title, as the State Rehabilitation Council determines
to be appropriate, that are comparable to the other functions
performed by the Council.
‘‘(d) RESOURCES.—
‘‘(1) PLAN.—The Council shall prepare, in conjunction with
the designated State unit, a plan for the provision of such
resources, including such staff and other personnel, as may
be necessary and sufficient to carry out the functions of the
Council under this section. The resource plan shall, to the
maximum extent possible, rely on the use of resources in existence during the period of implementation of the plan.
‘‘(2) RESOLUTION OF DISAGREEMENTS.—To the extent that
there is a disagreement between the Council and the designated
State unit in regard to the resources necessary to carry out
the functions of the Council as set forth in this section, the
disagreement shall be resolved by the Governor consistent with
paragraph (1).
‘‘(3) SUPERVISION AND EVALUATION.—Each Council shall,
consistent with State law, supervise and evaluate such staff
and other personnel as may be necessary to carry out its
functions under this section.
‘‘(4) PERSONNEL CONFLICT OF INTEREST.—While assisting
the Council in carrying out its duties, staff and other personnel
shall not be assigned duties by the designated State unit or
any other agency or office of the State, that would create
a conflict of interest.
‘‘(e) CONFLICT OF INTEREST.—No member of the Council shall
cast a vote on any matter that would provide direct financial
benefit to the member or otherwise give the appearance of a conflict
of interest under State law.
‘‘(f ) MEETINGS.—The Council shall convene at least four meetings a year in such places as it determines to be necessary to
conduct Council business and conduct such forums or hearings
as the Council considers appropriate. The meetings, hearings, and
forums shall be publicly announced. The meetings shall be open
and accessible to the general public unless there is a valid reason
for an executive session.
‘‘(g) COMPENSATION AND EXPENSES.—The Council may use
funds allocated to the Council by the designated State unit under
this title (except for funds appropriated to carry out the client

112 STAT. 1156

PUBLIC LAW 105–220—AUG. 7, 1998

assistance program under section 112 and funds reserved pursuant
to section 110(c) to carry out part C) to reimburse members of
the Council for reasonable and necessary expenses of attending
Council meetings and performing Council duties (including child
care and personal assistance services), and to pay compensation
to a member of the Council, if such member is not employed
or must forfeit wages from other employment, for each day the
member is engaged in performing the duties of the Council.
‘‘(h) HEARINGS AND FORUMS.—The Council is authorized to
hold such hearings and forums as the Council may determine
to be necessary to carry out the duties of the Council.
29 USC 726.

Deadline.
Publication.

Effective date.

Effective date.

Federal Register,
publications.

Regulations.

‘‘SEC. 106. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—
‘‘(A) ESTABLISHMENT OF STANDARDS AND INDICATORS.—
The Commissioner shall, not later than July 1, 1999, establish and publish evaluation standards and performance
indicators for the vocational rehabilitation program carried
out under this title.
‘‘(B) REVIEW AND REVISION.—Effective July 1, 1999,
the Commissioner shall review and, if necessary, revise
the evaluation standards and performance indicators every
3 years. Any revisions of the standards and indicators
shall be developed with input from State vocational
rehabilitation agencies, related professional and consumer
organizations, recipients of vocational rehabilitation services, and other interested parties. Any revisions of the
standards and indicators shall be subject to the publication,
review, and comment provisions of paragraph (3).
‘‘(C) BASES.—Effective July 1, 1999, to the maximum
extent practicable, the standards and indicators shall be
consistent with the core indicators of performance established under section 136(b) of the Workforce Investment
Act of 1998.
‘‘(2) MEASURES.—The standards and indicators shall
include outcome and related measures of program performance
that facilitate the accomplishment of the purpose and policy
of this title.
‘‘(3) COMMENT.—The standards and indicators shall be
developed with input from State vocational rehabilitation agencies, related professional and consumer organizations, recipients of vocational rehabilitation services, and other interested
parties. The Commissioner shall publish in the Federal Register
a notice of intent to regulate regarding the development of
proposed standards and indicators. Proposed standards and
indicators shall be published in the Federal Register for review
and comment. Final standards and indicators shall be published
in the Federal Register.
‘‘(b) COMPLIANCE.—
‘‘(1) STATE REPORTS.—In accordance with regulations established by the Secretary, each State shall report to the Commissioner after the end of each fiscal year the extent to which
the State is in compliance with the standards and indicators.
‘‘(2) PROGRAM IMPROVEMENT.—
‘‘(A) PLAN.—If the Commissioner determines that the
performance of any State is below established standards,

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1157

the Commissioner shall provide technical assistance to the
State, and the State and the Commissioner shall jointly
develop a program improvement plan outlining the specific
actions to be taken by the State to improve program
performance.
‘‘(B) REVIEW.—The Commissioner shall—
‘‘(i) review the program improvement efforts of
the State on a biannual basis and, if necessary, request
the State to make further revisions to the plan to
improve performance; and
‘‘(ii) continue to conduct such reviews and request
such revisions until the State sustains satisfactory
performance over a period of more than 1 year.
‘‘(c) WITHHOLDING.—If the Commissioner determines that a
State whose performance falls below the established standards has
failed to enter into a program improvement plan, or is not complying
substantially with the terms and conditions of such a program
improvement plan, the Commissioner shall, consistent with subsections (c) and (d) of section 107, reduce or make no further
payments to the State under this program, until the State has
entered into an approved program improvement plan, or satisfies
the Commissioner that the State is complying substantially with
the terms and conditions of such a program improvement plan,
as appropriate.
‘‘(d) REPORT TO CONGRESS.—Beginning in fiscal year 1999, the
Commissioner shall include in each annual report to the Congress
under section 13 an analysis of program performance, including
relative State performance, based on the standards and indicators.
‘‘SEC. 107. MONITORING AND REVIEW.

‘‘(a) IN GENERAL.—
‘‘(1) DUTIES.—In carrying out the duties of the Commissioner under this title, the Commissioner shall—
‘‘(A) provide for the annual review and periodic onsite
monitoring of programs under this title; and
‘‘(B) determine whether, in the administration of the
State plan, a State is complying substantially with the
provisions of such plan and with evaluation standards and
performance indicators established under section 106.
‘‘(2) PROCEDURES FOR REVIEWS.—In conducting reviews
under this section the Commissioner shall consider, at a minimum—
‘‘(A) State policies and procedures;
‘‘(B) guidance materials;
‘‘(C) decisions resulting from hearings conducted in
accordance with due process;
‘‘(D) State goals established under section 101(a)(15)
and the extent to which the State has achieved such goals;
‘‘(E) plans and reports prepared under section 106(b);
‘‘(F) consumer satisfaction reviews and analyses
described in section 105(c)(4);
‘‘(G) information provided by the State Rehabilitation
Council established under section 105, if the State has
such a Council, or by the commission described in section
101(a)(21)(A)(i), if the State has such a commission;
‘‘(H) reports; and
‘‘(I) budget and financial management data.

Effective date.

29 USC 727.

112 STAT. 1158

Notification.

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(3) PROCEDURES FOR MONITORING.—In conducting
monitoring under this section the Commissioner shall conduct—
‘‘(A) onsite visits, including onsite reviews of records
to verify that the State is following requirements regarding
the order of selection set forth in section 101(a)(5)(A);
‘‘(B) public hearings and other strategies for collecting
information from the public;
‘‘(C) meetings with the State Rehabilitation Council,
if the State has such a Council or with the commission
described in section 101(a)(21)(A)(i), if the State has such
a commission;
‘‘(D) reviews of individual case files, including individualized plans for employment and ineligibility determinations; and
‘‘(E) meetings with qualified vocational rehabilitation
counselors and other personnel.
‘‘(4) AREAS OF INQUIRY.—In conducting the review and
monitoring, the Commissioner shall examine—
‘‘(A) the eligibility process;
‘‘(B) the provision of services, including, if applicable,
the order of selection;
‘‘(C) such other areas as may be identified by the
public or through meetings with the State Rehabilitation
Council, if the State has such a Council or with the commission described in section 101(a)(21)(A)(i), if the State has
such a commission; and
‘‘(D) such other areas of inquiry as the Commissioner
may consider appropriate.
‘‘(5) REPORTS.—If the Commissioner issues a report detailing the findings of an annual review or onsite monitoring
conducted under this section, the report shall be made available
to the State Rehabilitation Council, if the State has such a
Council, for use in the development and modification of the
State plan described in section 101.
‘‘(b) TECHNICAL ASSISTANCE.—The Commissioner shall—
‘‘(1) provide technical assistance to programs under this
title regarding improving the quality of vocational rehabilitation
services provided; and
‘‘(2) provide technical assistance and establish a corrective
action plan for a program under this title if the Commissioner
finds that the program fails to comply substantially with the
provisions of the State plan, or with evaluation standards or
performance indicators established under section 106, in order
to ensure that such failure is corrected as soon as practicable.
‘‘(c) FAILURE TO COMPLY WITH PLAN.—
‘‘(1) WITHHOLDING PAYMENTS.—Whenever the Commissioner, after providing reasonable notice and an opportunity
for a hearing to the State agency administering or supervising
the administration of the State plan approved under section
101, finds that—
‘‘(A) the plan has been so changed that it no longer
complies with the requirements of section 101(a); or
‘‘(B) in the administration of the plan there is a failure
to comply substantially with any provision of such plan
or with an evaluation standard or performance indicator
established under section 106,

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1159

the Commissioner shall notify such State agency that no further
payments will be made to the State under this title (or, in
the discretion of the Commissioner, that such further payments
will be reduced, in accordance with regulations the Commissioner shall prescribe, or that further payments will not be
made to the State only for the projects under the parts of
the State plan affected by such failure), until the Commissioner
is satisfied there is no longer any such failure.
‘‘(2) PERIOD.—Until the Commissioner is so satisfied, the
Commissioner shall make no further payments to such State
under this title (or shall reduce payments or limit payments
to projects under those parts of the State plan in which there
is no such failure).
‘‘(3) DISBURSAL OF WITHHELD FUNDS.—The Commissioner
may, in accordance with regulations the Secretary shall prescribe, disburse any funds withheld from a State under paragraph (1) to any public or nonprofit private organization or
agency within such State or to any political subdivision of
such State submitting a plan meeting the requirements of
section 101(a). The Commissioner may not make any payment
under this paragraph unless the entity to which such payment
is made has provided assurances to the Commissioner that
such entity will contribute, for purposes of carrying out such
plan, the same amount as the State would have been obligated
to contribute if the State received such payment.
‘‘(d) REVIEW.—
‘‘(1) PETITION.—Any State that is dissatisfied with a final
determination of the Commissioner under section 101(b) or
subsection (c) may file a petition for judicial review of such
determination in the United States Court of Appeals for the
circuit in which the State is located. Such a petition may
be filed only within the 30-day period beginning on the date
that notice of such final determination was received by the
State. The clerk of the court shall transmit a copy of the
petition to the Commissioner or to any officer designated by
the Commissioner for that purpose. In accordance with section
2112 of title 28, United States Code, the Commissioner shall
file with the court a record of the proceeding on which the
Commissioner based the determination being appealed by the
State. Until a record is so filed, the Commissioner may modify
or set aside any determination made under such proceedings.
‘‘(2) SUBMISSIONS AND DETERMINATIONS.—If, in an action
under this subsection to review a final determination of the
Commissioner under section 101(b) or subsection (c), the petitioner or the Commissioner applies to the court for leave to
have additional oral submissions or written presentations made
respecting such determination, the court may, for good cause
shown, order the Commissioner to provide within 30 days an
additional opportunity to make such submissions and presentations. Within such period, the Commissioner may revise any
findings of fact, modify or set aside the determination being
reviewed, or make a new determination by reason of the additional submissions and presentations, and shall file such modified or new determination, and any revised findings of fact,
with the return of such submissions and presentations. The
court shall thereafter review such new or modified determination.

Regulations.

Courts.

Records.

112 STAT. 1160

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(3) STANDARDS OF REVIEW.—
‘‘(A) IN GENERAL.—Upon the filing of a petition under
paragraph (1) for judicial review of a determination, the
court shall have jurisdiction—
‘‘(i) to grant appropriate relief as provided in chapter 7 of title 5, United States Code, except for interim
relief with respect to a determination under subsection
(c); and
‘‘(ii) except as otherwise provided in subparagraph
(B), to review such determination in accordance with
chapter 7 of title 5, United States Code.
‘‘(B) SUBSTANTIAL EVIDENCE.—Section 706 of title 5,
United States Code, shall apply to the review of any determination under this subsection, except that the standard
for review prescribed by paragraph (2)(E) of such section
706 shall not apply and the court shall hold unlawful
and set aside such determination if the court finds that
the determination is not supported by substantial evidence
in the record of the proceeding submitted pursuant to paragraph (1), as supplemented by any additional submissions
and presentations filed under paragraph (2).

29 USC 728.

‘‘SEC. 108. EXPENDITURE OF CERTAIN AMOUNTS.

‘‘(a) EXPENDITURE.—Amounts described in subsection (b) may
not be expended by a State for any purpose other than carrying
out programs for which the State receives financial assistance under
this title, under part B of title VI, or under title VII.
‘‘(b) AMOUNTS.—The amounts referred to in subsection (a) are
amounts provided to a State under the Social Security Act (42
U.S.C. 301 et seq.) as reimbursement for the expenditure of payments received by the State from allotments under section 110
of this Act.
29 USC 728a.

‘‘SEC. 109. TRAINING OF EMPLOYERS WITH RESPECT TO AMERICANS
WITH DISABILITIES ACT OF 1990.

‘‘A State may expend payments received under section 111—
‘‘(1) to carry out a program to train employers with respect
to compliance with the requirements of title I of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.); and
‘‘(2) to inform employers of the existence of the program
and the availability of the services of the program.
‘‘PART B—BASIC VOCATIONAL REHABILITATION SERVICES
29 USC 730.

‘‘SEC. 110. STATE ALLOTMENTS.

‘‘(a)(1) Subject to the provisions of subsection (c), for each fiscal
year beginning before October 1, 1978, each State shall be entitled
to an allotment of an amount bearing the same ratio to the amount
authorized to be appropriated under section 100(b)(1) for allotment
under this section as the product of—
‘‘(A) the population of the State; and
‘‘(B) the square of its allotment percentage,
bears to the sum of the corresponding products for all the States.
‘‘(2)(A) For each fiscal year beginning on or after October 1,
1978, each State shall be entitled to an allotment in an amount
equal to the amount such State received under paragraph (1) for
the fiscal year ending September 30, 1978, and an additional
amount determined pursuant to subparagraph (B) of this paragraph.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1161

‘‘(B) For each fiscal year beginning on or after October 1,
1978, each State shall be entitled to an allotment, from any amount
authorized to be appropriated for such fiscal year under section
100(b)(1) for allotment under this section in excess of the amount
appropriated under section 100(b)(1)(A) for the fiscal year ending
September 30, 1978, in an amount equal to the sum of—
‘‘(i) an amount bearing the same ratio to 50 percent of
such excess amount as the product of the population of the
State and the square of its allotment percentage bears to the
sum of the corresponding products for all the States; and
‘‘(ii) an amount bearing the same ratio to 50 percent of
such excess amount as the product of the population of the
State and its allotment percentage bears to the sum of the
corresponding products for all the States.
‘‘(3) The sum of the payment to any State (other than Guam,
American Samoa, the Virgin Islands, and the Commonwealth of
the Northern Mariana Islands) under this subsection for any fiscal
year which is less than 1⁄3 of 1 percent of the amount appropriated
under section 100(b)(1), or $3,000,000, whichever is greater, shall
be increased to that amount, the total of the increases thereby
required being derived by proportionately reducing the allotment
to each of the remaining such States under this subsection, but
with such adjustments as may be necessary to prevent the sum
of the allotments made under this subsection to any such remaining
State from being thereby reduced to less than that amount.
‘‘(b)(1) Not later than 45 days prior to the end of the fiscal
year, the Commissioner shall determine, after reasonable opportunity for the submission to the Commissioner of comments by
the State agency administering or supervising the program established under this title, that any payment of an allotment to a
State under section 111(a) for any fiscal year will not be utilized
by such State in carrying out the purposes of this title.
‘‘(2) As soon as practicable but not later than the end of the
fiscal year, the Commissioner shall make such amount available
for carrying out the purposes of this title to one or more other
States to the extent the Commissioner determines such other State
will be able to use such additional amount during that fiscal year
or the subsequent fiscal year for carrying out such purposes. The
Commissioner shall make such amount available only if such other
State will be able to make sufficient payments from non-Federal
sources to pay for the non-Federal share of the cost of vocational
rehabilitation services under the State plan for the fiscal year
for which the amount was appropriated.
‘‘(3) For the purposes of this part, any amount made available
to a State for any fiscal year pursuant to this subsection shall
be regarded as an increase of such State’s allotment (as determined
under the preceding provisions of this section) for such year.
‘‘(c)(1) For fiscal year 1987 and for each subsequent fiscal year,
the Commissioner shall reserve from the amount appropriated
under section 100(b)(1) for allotment under this section a sum,
determined under paragraph (2), to carry out the purposes of part
C.
‘‘(2) The sum referred to in paragraph (1) shall be, as determined by the Secretary—
‘‘(A) not less than three-quarters of 1 percent and not
more than 1.5 percent of the amount referred to in paragraph
(1), for fiscal year 1999; and

Deadlines.

112 STAT. 1162

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(B) not less than 1 percent and not more than 1.5 percent
of the amount referred to in paragraph (1), for each of fiscal
years 2000 through 2003.

29 USC 731.

‘‘SEC. 111. PAYMENTS TO STATES.

‘‘(a)(1) Except as provided in paragraph (2), from each State’s
allotment under this part for any fiscal year, the Commissioner
shall pay to a State an amount equal to the Federal share of
the cost of vocational rehabilitation services under the plan for
that State approved under section 101, including expenditures for
the administration of the State plan.
‘‘(2)(A) The total of payments under paragraph (1) to a State
for a fiscal year may not exceed its allotment under subsection
(a) of section 110 for such year.
‘‘(B) For fiscal year 1994 and each fiscal year thereafter, the
amount otherwise payable to a State for a fiscal year under this
section shall be reduced by the amount by which expenditures
from non-Federal sources under the State plan under this title
for the previous fiscal year are less than the total of such expenditures for the second fiscal year preceding the previous fiscal year.
‘‘(C) The Commissioner may waive or modify any requirement
or limitation under subparagraph (B) or section 101(a)(17) if the
Commissioner determines that a waiver or modification is an equitable response to exceptional or uncontrollable circumstances affecting the State.
‘‘(3)(A) Except as provided in subparagraph (B), the amount
of a payment under this section with respect to any construction
project in any State shall be equal to the same percentage of
the cost of such project as the Federal share that is applicable
in the case of rehabilitation facilities (as defined in section 645(g)
of the Public Health Service Act (42 U.S.C. 291o(a))), in such
State.
‘‘(B) If the Federal share with respect to rehabilitation facilities
in such State is determined pursuant to section 645(b)(2) of such
Act (42 U.S.C. 291o(b)(2)), the percentage of the cost for purposes
of this section shall be determined in accordance with regulations
prescribed by the Commissioner designed to achieve as nearly as
practicable results comparable to the results obtained under such
section.
‘‘(b) The method of computing and paying amounts pursuant
to subsection (a) shall be as follows:
‘‘(1) The Commissioner shall, prior to the beginning of
each calendar quarter or other period prescribed by the
Commissioner, estimate the amount to be paid to each State
under the provisions of such subsection for such period, such
estimate to be based on such records of the State and information furnished by it, and such other investigation as the
Commissioner may find necessary.
‘‘(2) The Commissioner shall pay, from the allotment available therefor, the amount so estimated by the Commissioner
for such period, reduced or increased, as the case may be,
by any sum (not previously adjusted under this paragraph)
by which the Commissioner finds that the estimate of the
amount to be paid the State for any prior period under such
subsection was greater or less than the amount which should
have been paid to the State for such prior period under such
subsection. Such payment shall be made prior to audit or

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1163

settlement by the General Accounting Office, shall be made
through the disbursing facilities of the Treasury Department,
and shall be made in such installments as the Commissioner
may determine.
‘‘SEC. 112. CLIENT ASSISTANCE PROGRAM.

29 USC 732.

‘‘(a) From funds appropriated under subsection (h), the Secretary shall, in accordance with this section, make grants to States
to establish and carry out client assistance programs to provide
assistance in informing and advising all clients and client applicants
of all available benefits under this Act, and, upon request of such
clients or client applicants, to assist and advocate for such clients
or applicants in their relationships with projects, programs, and
services provided under this Act, including assistance and advocacy
in pursuing legal, administrative, or other appropriate remedies
to ensure the protection of the rights of such individuals under
this Act and to facilitate access to the services funded under this
Act through individual and systemic advocacy. The client assistance
program shall provide information on the available services and
benefits under this Act and title I of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12111 et seq.) to individuals with disabilities
in the State, especially with regard to individuals with disabilities
who have traditionally been unserved or underserved by vocational
rehabilitation programs. In providing assistance and advocacy under
this subsection with respect to services under this title, a client
assistance program may provide the assistance and advocacy with
respect to services that are directly related to facilitating the
employment of the individual.
‘‘(b) No State may receive payments from its allotment under
this Act in any fiscal year unless the State has in effect not
later than October 1, 1984, a client assistance program which—
‘‘(1) has the authority to pursue legal, administrative, and
other appropriate remedies to ensure the protection of rights
of individuals with disabilities who are receiving treatments,
services, or rehabilitation under this Act within the State;
and
‘‘(2) meets the requirements of designation under subsection (c).
‘‘(c)(1)(A) The Governor shall designate a public or private
agency to conduct the client assistance program under this section.
Except as provided in the last sentence of this subparagraph, the
Governor shall designate an agency which is independent of any
agency which provides treatment, services, or rehabilitation to
individuals under this Act. If there is an agency in the State
which has, or had, prior to the date of enactment of the Rehabilitation Amendments of 1984, served as a client assistance agency
under this section and which received Federal financial assistance
under this Act, the Governor may, in the initial designation, designate an agency which provides treatment, services, or rehabilitation to individuals with disabilities under this Act.
‘‘(B)(i) The Governor may not redesignate the agency designated
under subparagraph (A) without good cause and unless—
‘‘(I) the Governor has given the agency 30 days notice
of the intention to make such redesignation, including specification of the good cause for such redesignation and an opportunity
to respond to the assertion that good cause has been shown;

Grants.

112 STAT. 1164

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(II) individuals with disabilities or the individuals’ representatives have timely notice of the redesignation and opportunity for public comment; and
‘‘(III) the agency has the opportunity to appeal to the
Commissioner on the basis that the redesignation was not
for good cause.
‘‘(ii) If, after the date of enactment of the Rehabilitation Act
Amendments of 1998—
‘‘(I) a designated State agency undergoes any change in
the organizational structure of the agency that results in the
creation of one or more new State agencies or departments
or results in the merger of the designated State agency with
one or more other State agencies or departments; and
‘‘(II) an agency (including an office or other unit) within
the designated State agency was conducting a client assistance
program before the change under the last sentence of subparagraph (A),
the Governor shall redesignate the agency conducting the program.
In conducting the redesignation, the Governor shall designate to
conduct the program an agency that is independent of any agency
that provides treatment, services, or rehabilitation to individuals
with disabilities under this Act.
‘‘(2) In carrying out the provisions of this section, the Governor
shall consult with the director of the State vocational rehabilitation
agency, the head of the developmental disability protection and
advocacy agency, and with representatives of professional and consumer organizations serving individuals with disabilities in the
State.
‘‘(3) The agency designated under this subsection shall be
accountable for the proper use of funds made available to the
agency.
‘‘(d) The agency designated under subsection (c) of this section
may not bring any class action in carrying out its responsibilities
under this section.
‘‘(e)(1)(A) The Secretary shall allot the sums appropriated for
each fiscal year under this section among the States on the basis
of relative population of each State, except that no State shall
receive less than $50,000.
‘‘(B) The Secretary shall allot $30,000 each to American Samoa,
Guam, the Virgin Islands, and the Commonwealth of the Northern
Mariana Islands.
‘‘(C) For the purpose of this paragraph, the term ‘State’ does
not include American Samoa, Guam, the Virgin Islands, and the
Commonwealth of the Northern Mariana Islands.
‘‘(D)(i) In any fiscal year that the funds appropriated for such
fiscal year exceed $7,500,000, the minimum allotment shall be
$100,000 for States and $45,000 for territories.
‘‘(ii) For any fiscal year in which the total amount appropriated
under subsection (h) exceeds the total amount appropriated under
such subsection for the preceding fiscal year, the Secretary shall
increase each of the minimum allotments under clause (i) by a
percentage that shall not exceed the percentage increase in the
total amount appropriated under such subsection between the
preceding fiscal year and the fiscal year involved.
‘‘(2) The amount of an allotment to a State for a fiscal year
which the Secretary determines will not be required by the State
during the period for which it is available for the purpose for

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1165

which allotted shall be available for reallotment by the Secretary
at appropriate times to other States with respect to which such
a determination has not been made, in proportion to the original
allotments of such States for such fiscal year, but with such proportionate amount for any of such other States being reduced to the
extent it exceeds the sum the Secretary estimates such State needs
and will be able to use during such period, and the total of such
reduction shall be similarly reallotted among the States whose
proportionate amounts were not so reduced. Any such amount so
reallotted to a State for a fiscal year shall be deemed to be a
part of its allotment for such fiscal year.
‘‘(3) Except as specifically prohibited by or as otherwise provided
in State law, the Secretary shall pay to the agency designated
under subsection (c) the amount specified in the application
approved under subsection (f ).
‘‘(f ) No grant may be made under this section unless the State
submits an application to the Secretary at such time, in such
manner, and containing or accompanied by such information as
the Secretary deems necessary to meet the requirements of this
section.
‘‘(g) The Secretary shall prescribe regulations applicable to the
client assistance program which shall include the following requirements:
‘‘(1) No employees of such programs shall, while so
employed, serve as staff or consultants of any rehabilitation
project, program, or facility receiving assistance under this
Act in the State.
‘‘(2) Each program shall be afforded reasonable access to
policymaking and administrative personnel in the State and
local rehabilitation programs, projects, or facilities.
‘‘(3)(A) Each program shall contain provisions designed to
assure that to the maximum extent possible alternative means
of dispute resolution are available for use at the discretion
of an applicant or client of the program prior to resorting
to litigation or formal adjudication to resolve a dispute arising
under this section.
‘‘(B) In subparagraph (A), the term ‘alternative means of
dispute resolution’ means any procedure, including good faith
negotiation, conciliation, facilitation, mediation, factfinding, and
arbitration, and any combination of procedures, that is used
in lieu of litigation in a court or formal adjudication in an
administrative forum, to resolve a dispute arising under this
section.
‘‘(4) For purposes of any periodic audit, report, or evaluation
of the performance of a client assistance program under this
section, the Secretary shall not require such a program to
disclose the identity of, or any other personally identifiable
information related to, any individual requesting assistance
under such program.
‘‘(h) There are authorized to be appropriated such sums as
may be necessary for fiscal years 1999 through 2003 to carry
out the provisions of this section.

Regulations.

Appropriation
authorization.

112 STAT. 1166

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘PART C—AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES
29 USC 741.

‘‘SEC. 121. VOCATIONAL REHABILITATION SERVICES GRANTS.

‘‘(a) The Commissioner, in accordance with the provisions of
this part, may make grants to the governing bodies of Indian
tribes located on Federal and State reservations (and consortia
of such governing bodies) to pay 90 percent of the costs of vocational
rehabilitation services for American Indians who are individuals
with disabilities residing on or near such reservations. The nonFederal share of such costs may be in cash or in kind, fairly
valued, and the Commissioner may waive such non-Federal share
requirement in order to carry out the purposes of this Act.
‘‘(b)(1) No grant may be made under this part for any fiscal
year unless an application therefor has been submitted to and
approved by the Commissioner. The Commissioner may not approve
an application unless the application—
‘‘(A) is made at such time, in such manner, and contains
such information as the Commissioner may require;
‘‘(B) contains assurances that the rehabilitation services
provided under this part to American Indians who are individuals with disabilities residing on or near a reservation in a
State shall be, to the maximum extent feasible, comparable
to rehabilitation services provided under this title to other
individuals with disabilities residing in the State and that,
where appropriate, may include services traditionally used by
Indian tribes; and
‘‘(C) contains assurances that the application was developed
in consultation with the designated State unit of the State.
‘‘(2) The provisions of sections 5, 6, 7, and 102(a) of the Indian
Self-Determination and Education Assistance Act shall be applicable
to any application submitted under this part. For purposes of this
paragraph, any reference in any such provision to the Secretary
of Education or to the Secretary of the Interior shall be considered
to be a reference to the Commissioner.
‘‘(3) Any application approved under this part shall be effective
for not more than 60 months, except as determined otherwise
by the Commissioner pursuant to prescribed regulations. The State
shall continue to provide vocational rehabilitation services under
its State plan to American Indians residing on or near a reservation
whenever such State includes any such American Indians in its
State population under section 110(a)(1).
‘‘(4) In making grants under this part, the Secretary shall
give priority consideration to applications for the continuation of
programs which have been funded under this part.
‘‘(5) Nothing in this section may be construed to authorize
a separate service delivery system for Indian residents of a State
who reside in non-reservation areas.
‘‘(c) The term ‘reservation’ includes Indian reservations, public
domain Indian allotments, former Indian reservations in Oklahoma,
and land held by incorporated Native groups, regional corporations,
and village corporations under the provisions of the Alaska Native
Claims Settlement Act.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1167

‘‘PART D—VOCATIONAL REHABILITATION SERVICES CLIENT
INFORMATION
‘‘SEC. 131. DATA SHARING.

29 USC 751.

‘‘(a) IN GENERAL.—
‘‘(1) MEMORANDUM OF UNDERSTANDING.—The Secretary of
Education and the Secretary of Health and Human Services
shall enter into a memorandum of understanding for the purposes of exchanging data of mutual importance—
‘‘(A) that concern clients of designated State agencies;
and
‘‘(B) that are data maintained either by—
‘‘(i) the Rehabilitation Services Administration, as
required by section 13; or
‘‘(ii) the Social Security Administration, from its
Summary Earnings and Records and Master Beneficiary Records.
‘‘(2) EMPLOYMENT STATISTICS.—The Secretary of Labor shall
provide the Commissioner with employment statistics specified
in section 15 of the Wagner-Peyser Act, that facilitate evaluation by the Commissioner of the program carried out under
part B, and allow the Commissioner to compare the progress
of individuals with disabilities who are assisted under the
program in securing, retaining, regaining, and advancing in
employment with the progress made by individuals who are
assisted under title I of the Workforce Investment Act of 1998.
‘‘(b) TREATMENT OF INFORMATION.—For purposes of the
exchange described in subsection (a)(1), the data described in subsection (a)(1)(B)(ii) shall not be considered return information (as
defined in section 6103(b)(2) of the Internal Revenue Code of 1986)
and, as appropriate, the confidentiality of all client information
shall be maintained by the Rehabilitation Services Administration
and the Social Security Administration.’’.
SEC. 405. RESEARCH AND TRAINING.

Title II of the Rehabilitation Act of 1973 (29 U.S.C. 760 et
seq.), is amended to read as follows:
‘‘TITLE II—RESEARCH AND TRAINING
‘‘DECLARATION

OF PURPOSE

‘‘SEC. 200. The purpose of this title is to—
‘‘(1) provide for research, demonstration projects, training,
and related activities to maximize the full inclusion and integration into society, employment, independent living, family support, and economic and social self-sufficiency of individuals
with disabilities of all ages, with particular emphasis on improving the effectiveness of services authorized under this Act;
‘‘(2) provide for a comprehensive and coordinated approach
to the support and conduct of such research, demonstration
projects, training, and related activities and to ensure that
the approach is in accordance with the 5-year plan developed
under section 202(h);
‘‘(3) promote the transfer of rehabilitation technology to
individuals with disabilities through research and demonstration projects relating to—

29 USC 760.

112 STAT. 1168

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(A) the procurement process for the purchase of
rehabilitation technology;
‘‘(B) the utilization of rehabilitation technology on a
national basis;
‘‘(C) specific adaptations or customizations of products
to enable individuals with disabilities to live more
independently; and
‘‘(D) the development or transfer of assistive technology;
‘‘(4) ensure the widespread distribution, in usable formats,
of practical scientific and technological information—
‘‘(A) generated by research, demonstration projects,
training, and related activities; and
‘‘(B) regarding state-of-the-art practices, improvements
in the services authorized under this Act, rehabilitation
technology, and new knowledge regarding disabilities,
to rehabilitation professionals, individuals with disabilities, and
other interested parties, including the general public;
‘‘(5) identify effective strategies that enhance the opportunities of individuals with disabilities to engage in employment,
including employment involving telecommuting and selfemployment; and
‘‘(6) increase opportunities for researchers who are members of traditionally underserved populations, including
researchers who are members of minority groups and researchers who are individuals with disabilities.
‘‘AUTHORIZATION

29 USC 761.

‘‘SEC. 201. (a) There are authorized to be appropriated—
‘‘(1) for the purpose of providing for the expenses of the
National Institute on Disability and Rehabilitation Research
under section 202, which shall include the expenses of the
Rehabilitation Research Advisory Council under section 205,
and shall not include the expenses of such Institute to carry
out section 204, such sums as may be necessary for each of
fiscal years 1999 through 2003; and
‘‘(2) to carry out section 204, such sums as may be necessary
for each of fiscal years 1999 through 2003.
‘‘(b) Funds appropriated under this title shall remain available
until expended.
‘‘NATIONAL

Establishment.
29 USC 762.

OF APPROPRIATIONS

INSTITUTE ON DISABILITY AND REHABILITATION RESEARCH

‘‘SEC. 202. (a)(1) There is established within the Department
of Education a National Institute on Disability and Rehabilitation
Research (hereinafter in this title referred to as the ‘Institute’),
which shall be headed by a Director (hereinafter in this title referred
to as the ‘Director’), in order to—
‘‘(A) promote, coordinate, and provide for—
‘‘(i) research;
‘‘(ii) demonstration projects and training; and
‘‘(iii) related activities,
with respect to individuals with disabilities;
‘‘(B) more effectively carry out activities through the programs under section 204 and activities under this section;
‘‘(C) widely disseminate information from the activities
described in subparagraphs (A) and (B); and

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1169

‘‘(D) provide leadership in advancing the quality of life
of individuals with disabilities.
‘‘(2) In the performance of the functions of the office, the Director shall be directly responsible to the Secretary or to the same
Under Secretary or Assistant Secretary of the Department of Education to whom the Commissioner is responsible under section
3(a).
‘‘(b) The Director, through the Institute, shall be responsible
for—
‘‘(1) administering the programs described in section 204
and activities under this section;
‘‘(2) widely disseminating findings, conclusions, and recommendations, resulting from research, demonstration projects,
training, and related activities (referred to in this title as
‘covered activities’) funded by the Institute, to—
‘‘(A) other Federal, State, tribal, and local public agencies;
‘‘(B) private organizations engaged in research relating
to rehabilitation or providing rehabilitation services;
‘‘(C) rehabilitation practitioners; and
‘‘(D) individuals with disabilities and the individuals’
representatives;
‘‘(3) coordinating, through the Interagency Committee
established by section 203 of this Act, all Federal programs
and policies relating to research in rehabilitation;
‘‘(4) widely disseminating educational materials and
research results, concerning ways to maximize the full inclusion
and integration into society, employment, independent living,
family support, and economic and social self-sufficiency of
individuals with disabilities, to—
‘‘(A) public and private entities, including—
‘‘(i) elementary and secondary schools (as defined
in section 14101 of the Elementary and Secondary
Education Act of 1965; and
‘‘(ii) institutions of higher education;
‘‘(B) rehabilitation practitioners;
‘‘(C) individuals with disabilities (especially such
individuals who are members of minority groups or of
populations that are unserved or underserved by programs
under this Act); and
‘‘(D) the individuals’ representatives for the individuals
described in subparagraph (C);
‘‘(5)(A) conducting an education program to inform the public about ways of providing for the rehabilitation of individuals
with disabilities, including information relating to—
‘‘(i) family care;
‘‘(ii) self-care; and
‘‘(iii) assistive technology devices and assistive technology services; and
‘‘(B) as part of the program, disseminating engineering
information about assistive technology devices;
‘‘(6) conducting conferences, seminars, and workshops
(including in-service training programs and programs for
individuals with disabilities) concerning advances in rehabilitation research and rehabilitation technology (including advances
concerning the selection and use of assistive technology devices
and assistive technology services), pertinent to the full inclusion

112 STAT. 1170

PUBLIC LAW 105–220—AUG. 7, 1998

and integration into society, employment, independent living,
family support, and economic and social self-sufficiency of
individuals with disabilities;
‘‘(7) taking whatever action is necessary to keep the Congress fully and currently informed with respect to the
implementation and conduct of programs and activities carried
out under this title, including dissemination activities;
‘‘(8) producing, in conjunction with the Department of
Labor, the National Center for Health Statistics, the Bureau
of the Census, the Health Care Financing Administration, the
Social Security Administration, the Bureau of Indian Affairs,
the Indian Health Service, and other Federal departments and
agencies, as may be appropriate, statistical reports and studies
on the employment, self-employment, telecommuting, health,
income, and other demographic characteristics of individuals
with disabilities, including information on individuals with
disabilities who live in rural or inner-city settings, with particular attention given to underserved populations, and widely
disseminating such reports and studies to rehabilitation professionals, individuals with disabilities, the individuals’ representatives, and others to assist in the planning, assessment, and
evaluation of vocational and other rehabilitation services for
individuals with disabilities;
‘‘(9) conducting research on consumer satisfaction with
vocational rehabilitation services for the purpose of identifying
effective rehabilitation programs and policies that promote the
independence of individuals with disabilities and achievement
of long-term vocational goals;
‘‘(10) conducting research to examine the relationship
between the provision of specific services and successful, sustained employment outcomes, including employment outcomes
involving self-employment and telecommuting; and
‘‘(11) coordinating activities with the Attorney General
regarding the provision of information, training, or technical
assistance regarding the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.) to ensure consistency with the
plan for technical assistance required under section 506 of
such Act (42 U.S.C. 12206).
‘‘(c)(1) The Director, acting through the Institute or one or
more entities funded by the Institute, shall provide for the development and dissemination of models to address consumer-driven
information needs related to assistive technology devices and assistive technology services.
‘‘(2) The development and dissemination of models may
include—
‘‘(A) convening groups of individuals with disabilities, family members and advocates of such individuals, commercial
producers of assistive technology, and entities funded by the
Institute to develop, assess, and disseminate knowledge about
information needs related to assistive technology;
‘‘(B) identifying the types of information regarding assistive
technology devices and assistive technology services that
individuals with disabilities find especially useful;
‘‘(C) evaluating current models, and developing new models,
for transmitting the information described in subparagraph
(B) to consumers and to commercial producers of assistive technology; and

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1171

‘‘(D) disseminating through one or more entities funded
by the Institute, the models described in subparagraph (C)
and findings regarding the information described in subparagraph (B) to consumers and commercial producers of assistive
technology.
‘‘(d)(1) The Director of the Institute shall be appointed by
the Secretary. The Director shall be an individual with substantial
experience in rehabilitation and in research administration.
‘‘(2) The Director, subject to the approval of the President,
may appoint, for terms not to exceed three years, without regard
to the provisions of title 5, United States Code, governing appointment in the competitive service, and may compensate, without
regard to the provisions of chapter 51 and subchapter III of chapter
53 of such title relating to classification and General Schedule
pay rates, such technical and professional employees of the Institute
as the Director determines to be necessary to accomplish the functions of the Institute and also appoint and compensate without
regard to such provisions, in a number not to exceed one-fifth
of the number of full-time, regular technical and professional
employees of the Institute.
‘‘(3) The Director may obtain the services of consultants, without regard to the provisions of title 5, United States Code, governing
appointments in the competitive service.
‘‘(e) The Director, pursuant to regulations which the Secretary
shall prescribe, may establish and maintain fellowships with such
stipends and allowances, including travel and subsistence expenses
provided for under title 5, United States Code, as the Director
considers necessary to procure the assistance of highly qualified
research fellows, including individuals with disabilities, from the
United States and foreign countries.
‘‘(f )(1) The Director shall provide for scientific peer review
of all applications for financial assistance for research, training,
and demonstration projects over which the Director has authority.
The scientific peer review shall be conducted by individuals who
are not Federal employees, who are scientists or other experts
in the rehabilitation field (including the independent living field),
including knowledgeable individuals with disabilities, and the
individuals’ representatives, and who are competent to review
applications for the financial assistance.
‘‘(2) In providing for such scientific peer review, the Secretary
shall provide for training, as necessary and appropriate, to facilitate
the effective participation of those individuals selected to participate
in such review.
‘‘(g) Not less than 90 percent of the funds appropriated under
this title for any fiscal year shall be expended by the Director
to carry out activities under this title through grants, contracts,
or cooperative agreements. Up to 10 percent of the funds appropriated under this title for any fiscal year may be expended directly
for the purpose of carrying out the functions of the Director under
this section.
‘‘(h)(1) The Director shall—
‘‘(A) by October 1, 1998, and every fifth October 1 thereafter, prepare and publish in the Federal Register for public
comment a draft of a 5-year plan that outlines priorities for
rehabilitation research, demonstration projects, training, and
related activities and explains the basis for such priorities;

Regulations.

Deadlines.
Federal Register,
publication.

112 STAT. 1172

Reports.

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(B) by June 1, 1999, and every fifth June 1 thereafter,
after considering public comments, submit the plan in final
form to the appropriate committees of Congress;
‘‘(C) at appropriate intervals, prepare and submit revisions
in the plan to the appropriate committees of Congress; and
‘‘(D) annually prepare and submit progress reports on the
plan to the appropriate committees of Congress.
‘‘(2) Such plan shall—
‘‘(A) identify any covered activity that should be conducted
under this section and section 204 respecting the full inclusion
and integration into society of individuals with disabilities,
especially in the area of employment;
‘‘(B) determine the funding priorities for covered activities
to be conducted under this section and section 204;
‘‘(C) specify appropriate goals and timetables for covered
activities to be conducted under this section and section 204;
‘‘(D) be developed by the Director—
‘‘(i) after consultation with the Rehabilitation Research
Advisory Council established under section 205;
‘‘(ii) in coordination with the Commissioner;
‘‘(iii) after consultation with the National Council on
Disability established under title IV, the Secretary of Education, officials responsible for the administration of the
Developmental Disabilities Assistance and Bill of Rights
Act (42 U.S.C. 6000 et seq.), and the Interagency Committee on Disability Research established under section 203;
and
‘‘(iv) after full consideration of the input of individuals
with disabilities and the individuals’ representatives,
organizations representing individuals with disabilities,
providers of services furnished under this Act, researchers
in the rehabilitation field, and any other persons or entities
the Director considers to be appropriate;
‘‘(E) specify plans for widespread dissemination of the
results of covered activities, in accessible formats, to rehabilitation practitioners, individuals with disabilities, and the individuals’ representatives; and
‘‘(F) specify plans for widespread dissemination of the
results of covered activities that concern individuals with
disabilities who are members of minority groups or of populations that are unserved or underserved by programs carried
out under this Act.
‘‘(i) In order to promote cooperation among Federal departments
and agencies conducting research programs, the Director shall consult with the administrators of such programs, and with the Interagency Committee established by section 203, regarding the design
of research projects conducted by such entities and the results
and applications of such research.
‘‘( j)(1) The Director shall take appropriate actions to provide
for a comprehensive and coordinated research program under this
title. In providing such a program, the Director may undertake
joint activities with other Federal entities engaged in research
and with appropriate private entities. Any Federal entity proposing
to establish any research project related to the purposes of this
Act shall consult, through the Interagency Committee established
by section 203, with the Director as Chairperson of such Committee

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1173

and provide the Director with sufficient prior opportunity to comment on such project.
‘‘(2) Any person responsible for administering any program
of the National Institutes of Health, the Department of Veterans
Affairs, the National Science Foundation, the National Aeronautics
and Space Administration, the Office of Special Education and
Rehabilitative Services, or of any other Federal entity, shall,
through the Interagency Committee established by section 203,
consult and cooperate with the Director in carrying out such program if the program is related to the purposes of this title.
‘‘(3) The Director shall support, directly or by grant or contract,
a center associated with an institution of higher education, for
research and training concerning the delivery of vocational
rehabilitation services to rural areas.
‘‘(k) The Director shall make grants to institutions of higher
education for the training of rehabilitation researchers, including
individuals with disabilities, with particular attention to research
areas that support the implementation and objectives of this Act
and that improve the effectiveness of services authorized under
this Act.
‘‘INTERAGENCY

Grants.

COMMITTEE

‘‘SEC. 203. (a)(1) In order to promote coordination and cooperation among Federal departments and agencies conducting
rehabilitation research programs, there is established within the
Federal Government an Interagency Committee on Disability
Research (hereinafter in this section referred to as the ‘Committee’),
chaired by the Director and comprised of such members as the
President may designate, including the following (or their designees): the Director, the Commissioner of the Rehabilitation Services Administration, the Assistant Secretary for Special Education
and Rehabilitative Services, the Secretary of Education, the Secretary of Veterans Affairs, the Director of the National Institutes
of Health, the Director of the National Institute of Mental Health,
the Administrator of the National Aeronautics and Space Administration, the Secretary of Transportation, the Assistant Secretary
of the Interior for Indian Affairs, the Director of the Indian Health
Service, and the Director of the National Science Foundation.
‘‘(2) The Committee shall meet not less than four times each
year.
‘‘(b) After receiving input from individuals with disabilities
and the individuals’ representatives, the Committee shall identify,
assess, and seek to coordinate all Federal programs, activities,
and projects, and plans for such programs, activities, and projects
with respect to the conduct of research related to rehabilitation
of individuals with disabilities.
‘‘(c) The Committee shall annually submit to the President
and to the appropriate committees of the Congress a report making
such recommendations as the Committee deems appropriate with
respect to coordination of policy and development of objectives and
priorities for all Federal programs relating to the conduct of
research related to rehabilitation of individuals with disabilities.
‘‘RESEARCH

Grants.
Contracts.

Establishment.
29 USC 763.

Reports.

AND OTHER COVERED ACTIVITIES

‘‘SEC. 204. (a)(1) To the extent consistent with priorities established in the 5-year plan described in section 202(h), the Director

29 USC 764.

112 STAT. 1174

PUBLIC LAW 105–220—AUG. 7, 1998

may make grants to and contracts with States and public or private
agencies and organizations, including institutions of higher education, Indian tribes, and tribal organizations, to pay part of the
cost of projects for the purpose of planning and conducting research,
demonstration projects, training, and related activities, the purposes
of which are to develop methods, procedures, and rehabilitation
technology, that maximize the full inclusion and integration into
society, employment, independent living, family support, and economic and social self-sufficiency of individuals with disabilities,
especially individuals with the most significant disabilities, and
improve the effectiveness of services authorized under this Act.
‘‘(2)(A) In carrying out this section, the Director shall emphasize
projects that support the implementation of titles I, III, V, VI,
and VII, including projects addressing the needs described in the
State plans submitted under section 101 or 704 by State agencies.
‘‘(B) Such projects, as described in the State plans submitted
by State agencies, may include—
‘‘(i) medical and other scientific, technical, methodological,
and other investigations into the nature of disability, methods
of analyzing it, and restorative techniques, including basic
research where related to rehabilitation techniques or services;
‘‘(ii) studies and analysis of industrial, vocational, social,
recreational, psychiatric, psychological, economic, and other factors affecting rehabilitation of individuals with disabilities;
‘‘(iii) studies and analysis of special problems of individuals
who are homebound and individuals who are institutionalized;
‘‘(iv) studies, analyses, and demonstrations of architectural
and engineering design adapted to meet the special needs of
individuals with disabilities;
‘‘(v) studies, analyses, and other activities related to supported employment;
‘‘(vi) related activities which hold promise of increasing
knowledge and improving methods in the rehabilitation of
individuals with disabilities and individuals with the most
significant disabilities, particularly individuals with disabilities,
and individuals with the most significant disabilities, who are
members of populations that are unserved or underserved by
programs under this Act; and
‘‘(vii) studies, analyses, and other activities related to job
accommodations, including the use of rehabilitation engineering
and assistive technology.
‘‘(b)(1) In addition to carrying out projects under subsection
(a), the Director may make grants under this subsection (referred
to in this subsection as ‘research grants’) to pay part or all of
the cost of the research or other specialized covered activities
described in paragraphs (2) through (18). A research grant made
under any of paragraphs (2) through (18) may only be used in
a manner consistent with priorities established in the 5-year plan
described in section 202(h).
‘‘(2)(A) Research grants may be used for the establishment
and support of Rehabilitation Research and Training Centers, for
the purpose of providing an integrated program of research, which
Centers shall—
‘‘(i) be operated in collaboration with institutions of higher
education or providers of rehabilitation services or other appropriate services; and

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1175

‘‘(ii) serve as centers of national excellence and national
or regional resources for providers and individuals with disabilities and the individuals’ representatives.
‘‘(B) The Centers shall conduct research and training activities
by—
‘‘(i) conducting coordinated and advanced programs of
research in rehabilitation targeted toward the production of
new knowledge that will improve rehabilitation methodology
and service delivery systems, alleviate or stabilize disabling
conditions, and promote maximum social and economic
independence of individuals with disabilities, especially promoting the ability of the individuals to prepare for, secure, retain,
regain, or advance in employment;
‘‘(ii) providing training (including graduate, pre-service, and
in-service training) to assist individuals to more effectively
provide rehabilitation services;
‘‘(iii) providing training (including graduate, pre-service,
and in-service training) for rehabilitation research personnel
and other rehabilitation personnel; and
‘‘(iv) serving as an informational and technical assistance
resource to providers, individuals with disabilities, and the
individuals’ representatives, through conferences, workshops,
public education programs, in-service training programs, and
similar activities.
‘‘(C) The research to be carried out at each such Center may
include—
‘‘(i) basic or applied medical rehabilitation research;
‘‘(ii) research regarding the psychological and social aspects
of rehabilitation, including disability policy;
‘‘(iii) research related to vocational rehabilitation;
‘‘(iv) continuation of research that promotes the emotional,
social, educational, and functional growth of children who are
individuals with disabilities;
‘‘(v) continuation of research to develop and evaluate interventions, policies, and services that support families of those
children and adults who are individuals with disabilities; and
‘‘(vi) continuation of research that will improve services
and policies that foster the productivity, independence, and
social integration of individuals with disabilities, and enable
individuals with disabilities, including individuals with mental
retardation and other developmental disabilities, to live in their
communities.
‘‘(D) Training of students preparing to be rehabilitation personnel shall be an important priority for such a Center.
‘‘(E) The Director shall make grants under this paragraph
to establish and support both comprehensive centers dealing with
multiple disabilities and centers primarily focused on particular
disabilities.
‘‘(F) Grants made under this paragraph may be used to provide
funds for services rendered by such a Center to individuals with
disabilities in connection with the research and training activities.
‘‘(G) Grants made under this paragraph may be used to provide
faculty support for teaching—
‘‘(i) rehabilitation-related courses of study for credit; and
‘‘(ii) other courses offered by the Centers, either directly
or through another entity.

Grants.

112 STAT. 1176

Grants.

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(H) The research and training activities conducted by such
a Center shall be conducted in a manner that is accessible to
and usable by individuals with disabilities.
‘‘(I) The Director shall encourage the Centers to develop
practicalapplications for the findings of the research of the Centers.
‘‘(J) In awarding grants under this paragraph, the Director
shall take into consideration the location of any proposed Center
and the appropriate geographic and regional allocation of such
Centers.
‘‘(K) To be eligible to receive a grant under this paragraph,
each such institution or provider described in subparagraph (A)
shall—
‘‘(i) be of sufficient size, scope, and quality to effectively
carry out the activities in an efficient manner consistent with
appropriate Federal and State law; and
‘‘(ii) demonstrate the ability to carry out the training activities either directly or through another entity that can provide
such training.
‘‘(L) The Director shall make grants under this paragraph for
periods of 5 years, except that the Director may make a grant
for a period of less than 5 years if—
‘‘(i) the grant is made to a new recipient; or
‘‘(ii) the grant supports new or innovative research.
‘‘(M) Grants made under this paragraph shall be made on
a competitive basis. To be eligible to receive a grant under this
paragraph, a prospective grant recipient shall submit an application
to the Director at such time, in such manner, and containing
such information as the Director may require.
‘‘(N) In conducting scientific peer review under section 202(f )
of an application for the renewal of a grant made under this
paragraph, the peer review panel shall take into account the past
performance of the applicant in carrying out the grant and input
from individuals with disabilities and the individuals’ representatives.
‘‘(O) An institution or provider that receives a grant under
this paragraph to establish such a Center may not collect more
than 15 percent of the amount of the grant received by the Center
in indirect cost charges.
‘‘(3)(A) Research grants may be used for the establishment
and support of Rehabilitation Engineering Research Centers, operated by or in collaboration with institutions of higher education
or nonprofit organizations, to conduct research or demonstration
activities, and training activities, regarding rehabilitation technology, including rehabilitation engineering, assistive technology
devices, and assistive technology services, for the purposes of
enhancing opportunities for better meeting the needs of, and
addressing the barriers confronted by, individuals with disabilities
in all aspects of their lives.
‘‘(B) In order to carry out the purposes set forth in subparagraph
(A), such a Center shall carry out the research or demonstration
activities by—
‘‘(i) developing and disseminating innovative methods of
applying advanced technology, scientific achievement, and
psychological and social knowledge to—
‘‘(I) solve rehabilitation problems and remove environmental barriers through planning and conducting research,

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1177

including cooperative research with public or private agencies and organizations, designed to produce new scientific
knowledge, and new or improved methods, equipment, and
devices; and
‘‘(II) study new or emerging technologies, products,
or environments, and the effectiveness and benefits of such
technologies, products, or environments;
‘‘(ii) demonstrating and disseminating—
‘‘(I) innovative models for the delivery, to rural and
urban areas, of cost-effective rehabilitation technology services that promote utilization of assistive technology devices;
and
‘‘(II) other scientific research to assist in meeting the
employment and independent living needs of individuals
with significant disabilities; or
‘‘(iii) conducting research or demonstration activities that
facilitate service delivery systems change by demonstrating,
evaluating, documenting, and disseminating—
‘‘(I) consumer responsive and individual and familycentered innovative models for the delivery to both rural
and urban areas, of innovative cost-effective rehabilitation
technology services that promote utilization of rehabilitation technology; and
‘‘(II) other scientific research to assist in meeting the
employment and independent living needs of, and addressing the barriers confronted by, individuals with disabilities,
including individuals with significant disabilities.
‘‘(C) To the extent consistent with the nature and type of
research or demonstration activities described in subparagraph (B),
each Center established or supported through a grant made available under this paragraph shall—
‘‘(i) cooperate with programs established under the Technology-Related Assistance for Individuals With Disabilities Act
of 1988 (29 U.S.C. 2201 et seq.) and other regional and local
programs to provide information to individuals with disabilities
and the individuals’ representatives to—
‘‘(I) increase awareness and understanding of how
rehabilitation technology can address their needs; and
‘‘(II) increase awareness and understanding of the
range of options, programs, services, and resources available, including financing options for the technology and
services covered by the area of focus of the Center;
‘‘(ii) provide training opportunities to individuals, including
individuals with disabilities, to become researchers of
rehabilitation technology and practitioners of rehabilitation
technology in conjunction with institutions of higher education
and nonprofit organizations; and
‘‘(iii) respond, through research or demonstration activities,
to the needs of individuals with all types of disabilities who
may benefit from the application of technology within the area
of focus of the Center.
‘‘(D)(i) In establishing Centers to conduct the research or demonstration activities described in subparagraph (B)(iii), the Director
may establish one Center in each of the following areas of focus:
‘‘(I) Early childhood services, including early intervention
and family support.

112 STAT. 1178

Reports.

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(II) Education at the elementary and secondary levels,
including transition from school to postschool activities.
‘‘(III) Employment, including supported employment, and
reasonable accommodations and the reduction of environmental
barriers as required by the Americans with Disabilities Act
of 1990 (42 U.S.C. 12101 et seq.) and title V.
‘‘(IV) Independent living, including transition from institutional to community living, maintenance of community living
on leaving the workforce, self-help skills, and activities of daily
living.
‘‘(ii) Each Center conducting the research or demonstration
activities described in subparagraph (B)(iii) shall have an advisory
committee, of which the majority of members are individuals with
disabilities who are users of rehabilitation technology, and the
individuals’ representatives.
‘‘(E) Grants made under this paragraph shall be made on
a competitive basis and shall be for a period of 5 years, except
that the Director may make a grant for a period of less than
5 years if—
‘‘(i) the grant is made to a new recipient; or
‘‘(ii) the grant supports new or innovative research.
‘‘(F) To be eligible to receive a grant under this paragraph,
a prospective grant recipient shall submit an application to the
Director at such time, in such manner, and containing such information as the Director may require.
‘‘(G) Each Center established or supported through a grant
made available under this paragraph shall—
‘‘(i) cooperate with State agencies and other local, State,
regional, and national programs and organizations developing
or delivering rehabilitation technology, including State programs funded under the Technology-Related Assistance for
Individuals With Disabilities Act of 1988 (29 U.S.C. 2201 et
seq.); and
‘‘(ii) prepare and submit to the Director as part of an
application for continuation of a grant, or as a final report,
a report that documents the outcomes of the program of the
Center in terms of both short- and long-term impact on the
lives of individuals with disabilities, and such other information
as may be requested by the Director.
‘‘(4)(A) Research grants may be used to conduct a program
for spinal cord injury research, including conducting such a program
by making grants to public or private agencies and organizations
to pay part or all of the costs of special projects and demonstration
projects for spinal cord injuries, that will—
‘‘(i) ensure widespread dissemination of research findings
among all Spinal Cord Injury Centers, to rehabilitation
practitioners, individuals with spinal cord injury, the individuals’ representatives, and organizations receiving financial
assistance under this paragraph;
‘‘(ii) provide encouragement and support for initiatives and
new approaches by individual and institutional investigators;
and
‘‘(iii) establish and maintain close working relationships
with other governmental and voluntary institutions and
organizations engaged in similar efforts in order to unify and

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1179

coordinate scientific efforts, encourage joint planning, and promote the interchange of data and reports among spinal cord
injury investigations.
‘‘(B) Any agency or organization carrying out a project or demonstration project assisted by a grant under this paragraph that
provides services to individuals with spinal cord injuries shall—
‘‘(i) establish, on an appropriate regional basis, a multidisciplinary system of providing vocational and other rehabilitation
services, specifically designed to meet the special needs of
individuals with spinal cord injuries, including acute care as
well as periodic inpatient or outpatient followup and services;
‘‘(ii) demonstrate and evaluate the benefits to individuals
with spinal cord injuries served in, and the degree of costeffectiveness of, such a regional system;
‘‘(iii) demonstrate and evaluate existing, new, and improved
methods and rehabilitation technology essential to the care,
management, and rehabilitation of individuals with spinal cord
injuries; and
‘‘(iv) demonstrate and evaluate methods of community outreach for individuals with spinal cord injuries and community
education in connection with the problems of such individuals
in areas such as housing, transportation, recreation, employment, and community activities.
‘‘(C) In awarding grants under this paragraph, the Director
shall take into account the location of any proposed Spinal Cord
Injury Center and the appropriate geographic and regional allocation of such Centers.
‘‘(5) Research grants may be used to conduct a program for
end-stage renal disease research, to include support of projects
and demonstrations for providing special services (including
transplantation and dialysis), artificial kidneys, and supplies necessary for the rehabilitation of individuals with such disease and
which will—
‘‘(A) ensure dissemination of research findings;
‘‘(B) provide encouragement and support for initiatives and
new approaches by individuals and institutional investigators;
and
‘‘(C) establish and maintain close working relationships
with other governmental and voluntary institutions and
organizations engaged in similar efforts,
in order to unify and coordinate scientific efforts, encourage joint
planning, and promote the interchange of data and reports among
investigators in the field of end-stage renal disease. No person
shall be selected to participate in such program who is eligible
for services for such disease under any other provision of law.
‘‘(6) Research grants may be used to conduct a program for
international rehabilitation research, demonstration, and training
for the purpose of developing new knowledge and methods in the
rehabilitation of individuals with disabilities in the United States,
cooperating with and assisting in developing and sharing information found useful in other nations in the rehabilitation of individuals
with disabilities, and initiating a program to exchange experts
and technical assistance in the field of rehabilitation of individuals
with disabilities with other nations as a means of increasing the
levels of skill of rehabilitation personnel.

112 STAT. 1180

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(7) Research grants may be used to conduct a research program
concerning the use of existing telecommunications systems (including telephone, television, satellite, radio, and other similar systems)
which have the potential for substantially improving service delivery
methods, and the development of appropriate programming to meet
the particular needs of individuals with disabilities.
‘‘(8) Research grants may be used to conduct a program of
joint projects with the National Institutes of Health, the National
Institute of Mental Health, the Health Services Administration,
the Administration on Aging, the National Science Foundation,
the Veterans’ Administration, the Department of Health and
Human Services, the National Aeronautics and Space Administration, other Federal agencies, and private industry in areas of joint
interest involving rehabilitation.
‘‘(9) Research grants may be used to conduct a program of
research related to the rehabilitation of children, or older individuals, who are individuals with disabilities, including older American
Indians who are individuals with disabilities. Such research program may include projects designed to assist the adjustment of,
or maintain as residents in the community, older workers who
are individuals with disabilities on leaving the workforce.
‘‘(10) Research grants may be used to conduct a research program to develop and demonstrate innovative methods to attract
and retain professionals to serve in rural areas in the rehabilitation
of individuals with disabilities, including individuals with significant disabilities.
‘‘(11) Research grants may be used to conduct a model research
and demonstration project designed to assess the feasibility of
establishing a center for producing and distributing to individuals
who are deaf or hard of hearing captioned video cassettes providing
a broad range of educational, cultural, scientific, and vocational
programming.
‘‘(12) Research grants may be used to conduct a model research
and demonstration program to develop innovative methods of
providing services for preschool age children who are individuals
with disabilities, including—
‘‘(A) early intervention, assessment, parent counseling,
infant stimulation, early identification, diagnosis, and evaluation of children who are individuals with significant disabilities
up to the age of five, with a special emphasis on children
who are individuals with significant disabilities up to the age
of three;
‘‘(B) such physical therapy, language development, pediatric, nursing, psychological, and psychiatric services as are
necessary for such children; and
‘‘(C) appropriate services for the parents of such children,
including psychological and psychiatric services, parent counseling, and training.
‘‘(13) Research grants may be used to conduct a model research
and training program under which model training centers shall
be established to develop and use more advanced and effective
methods of evaluating and addressing the employment needs of
individuals with disabilities, including programs that—
‘‘(A) provide training and continuing education for personnel involved with the employment of individuals with disabilities;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1181

‘‘(B) develop model procedures for testing and evaluating
the employment needs of individuals with disabilities;
‘‘(C) develop model training programs to teach individuals
with disabilities skills which will lead to appropriate employment;
‘‘(D) develop new approaches for job placement of individuals with disabilities, including new followup procedures relating to such placement;
‘‘(E) provide information services regarding education,
training, employment, and job placement for individuals with
disabilities; and
‘‘(F) develop new approaches and provide information
regarding job accommodations, including the use of rehabilitation engineering and assistive technology.
‘‘(14) Research grants may be used to conduct a rehabilitation
research program under which financial assistance is provided in
order to—
‘‘(A) test new concepts and innovative ideas;
‘‘(B) demonstrate research results of high potential benefits;
‘‘(C) purchase prototype aids and devices for evaluation;
‘‘(D) develop unique rehabilitation training curricula; and
‘‘(E) be responsive to special initiatives of the Director.
No single grant under this paragraph may exceed $50,000 in any
fiscal year and all payments made under this paragraph in any
fiscal year may not exceed 5 percent of the amount available for
this section to the National Institute on Disability and Rehabilitation Research in any fiscal year. Regulations and administrative
procedures with respect to financial assistance under this paragraph
shall, to the maximum extent possible, be expedited.
‘‘(15) Research grants may be used to conduct studies of the
rehabilitation needs of American Indian populations and of effective
mechanisms for the delivery of rehabilitation services to Indians
residing on and off reservations.
‘‘(16) Research grants may be used to conduct a demonstration
program under which one or more projects national in scope shall
be established to develop procedures to provide incentives for the
development, manufacturing, and marketing of orphan technological
devices, including technology transfer concerning such devices,
designed to enable individuals with disabilities to achieve independence and access to gainful employment.
‘‘(17)(A) Research grants may be used to conduct a research
program related to quality assurance in the area of rehabilitation
technology.
‘‘(B) Activities carried out under the research program may
include—
‘‘(i) the development of methodologies to evaluate
rehabilitation technology products and services and the dissemination of the methodologies to consumers and other interested
parties;
‘‘(ii) identification of models for service provider training
and evaluation and certification of the effectiveness of the models;
‘‘(iii) identification and dissemination of outcome measurement models for the assessment of rehabilitation technology
products and services; and

112 STAT. 1182

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(iv) development and testing of research-based tools to
enhance consumer decisionmaking about rehabilitation technology products and services.
‘‘(18) Research grants may be used to provide for research
and demonstration projects and related activities that explore the
use and effectiveness of specific alternative or complementary medical practices for individuals with disabilities. Such projects and
activities may include projects and activities designed to—
‘‘(A) determine the use of specific alternative or complementary medical practices among individuals with disabilities and
the perceived effectiveness of the practices;
‘‘(B) determine the specific information sources, decisionmaking methods, and methods of payment used by individuals
with disabilities who access alternative or complementary medical services;
‘‘(C) develop criteria to screen and assess the validity of
research studies of such practices for individuals with disabilities; and
‘‘(D) determine the effectiveness of specific alternative or
complementary medical practices that show promise for promoting increased functioning, prevention of secondary disabilities,
or other positive outcomes for individuals with certain types
of disabilities, by conducting controlled research studies.
‘‘(c)(1) In carrying out evaluations of covered activities under
this section, the Director is authorized to make arrangements for
site visits to obtain information on the accomplishments of the
projects.
‘‘(2) The Director shall not make a grant under this section
that exceeds $500,000 unless the peer review of the grant application has included a site visit.
‘‘REHABILITATION
29 USC 765.

RESEARCH ADVISORY COUNCIL

‘‘SEC. 205. (a) ESTABLISHMENT.—Subject to the availability of
appropriations, the Secretary shall establish in the Department
of Education a Rehabilitation Research Advisory Council (referred
to in this section as the ‘Council’) composed of 12 members
appointed by the Secretary.
‘‘(b) DUTIES.—The Council shall advise the Director with respect
to research priorities and the development and revision of the
5-year plan required by section 202(h).
‘‘(c) QUALIFICATIONS.—Members of the Council shall be generally representative of the community of rehabilitation professionals, the community of rehabilitation researchers, the community
of individuals with disabilities, and the individuals’ representatives.
At least one-half of the members shall be individuals with disabilities or the individuals’ representatives.
‘‘(d) TERMS OF APPOINTMENT.—
‘‘(1) LENGTH OF TERM.—Each member of the Council shall
serve for a term of up to 3 years, determined by the Secretary,
except that—
‘‘(A) a member appointed to fill a vacancy occurring
prior to the expiration of the term for which a predecessor
was appointed, shall be appointed for the remainder of
such term; and
‘‘(B) the terms of service of the members initially
appointed shall be (as specified by the Secretary) for such

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1183

fewer number of years as will provide for the expiration
of terms on a staggered basis.
‘‘(2) NUMBER OF TERMS.—No member of the Council may
serve more than two consecutive full terms. Members may
serve after the expiration of their terms until their successors
have taken office.
‘‘(e) VACANCIES.—Any vacancy occurring in the membership
of the Council shall be filled in the same manner as the original
appointment for the position being vacated. The vacancy shall not
affect the power of the remaining members to execute the duties
of the Council.
‘‘(f ) PAYMENT AND EXPENSES.—
‘‘(1) PAYMENT.—Each member of the Council who is not
an officer or full-time employee of the Federal Government
shall receive a payment of $150 for each day (including travel
time) during which the member is engaged in the performance
of duties for the Council. All members of the Council who
are officers or full-time employees of the United States shall
serve without compensation in addition to compensation
received for their services as officers or employees of the United
States.
‘‘(2) TRAVEL EXPENSES.—Each member of the Council may
receive travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States
Code, for employees serving intermittently in the Government
service, for each day the member is engaged in the performance
of duties away from the home or regular place of business
of the member.
‘‘(g) DETAIL OF FEDERAL EMPLOYEES.—On the request of the
Council, the Secretary may detail, with or without reimbursement,
any of the personnel of the Department of Education to the Council
to assist the Council in carrying out its duties. Any detail shall
not interrupt or otherwise affect the civil service status or privileges
of the Federal employee.
‘‘(h) TECHNICAL ASSISTANCE.—On the request of the Council,
the Secretary shall provide such technical assistance to the Council
as the Council determines to be necessary to carry out its duties.
‘‘(i) TERMINATION.—Section 14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not apply with respect to the Council.’’.
SEC. 406. PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND
DEMONSTRATIONS.

Grants.
Contracts.

Title III of the Rehabilitation Act of 1973 (29 U.S.C. 770 et
seq.) is amended to read as follows:

‘‘TITLE III—PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND
DEMONSTRATIONS
‘‘SEC. 301. DECLARATION OF PURPOSE AND COMPETITIVE BASIS OF
GRANTS AND CONTRACTS.

‘‘(a) PURPOSE.—It is the purpose of this title to authorize grants
and contracts to—
‘‘(1)(A) provide academic training to ensure that skilled
personnel are available to provide rehabilitation services to

29 USC 771.

112 STAT. 1184

PUBLIC LAW 105–220—AUG. 7, 1998

individuals with disabilities through vocational, medical, social,
and psychological rehabilitation programs (including supported
employment programs), through economic and business
development programs, through independent living services
programs, and through client assistance programs; and
‘‘(B) provide training to maintain and upgrade basic skills
and knowledge of personnel (including personnel specifically
trained to deliver services to individuals with disabilities whose
employment outcome is self-employment or telecommuting)
employed to provide state-of-the-art service delivery and
rehabilitation technology services;
‘‘(2) conduct special projects and demonstrations that
expand and improve the provision of rehabilitation and other
services (including those services provided through community
rehabilitation programs) authorized under this Act, or that
otherwise further the purposes of this Act, including related
research and evaluation;
‘‘(3) provide vocational rehabilitation services to individuals
with disabilities who are migrant or seasonal farmworkers;
‘‘(4) initiate recreational programs to provide recreational
activities and related experiences for individuals with disabilities to aid such individuals in employment, mobility, socialization, independence, and community integration; and
‘‘(5) provide training and information to individuals with
disabilities and the individuals’ representatives, and other
appropriate parties to develop the skills necessary for individuals with disabilities to gain access to the rehabilitation system
and statewide workforce investment systems and to become
active decisionmakers in the rehabilitation process.
‘‘(b) COMPETITIVE BASIS OF GRANTS AND CONTRACTS.—The Secretary shall ensure that all grants and contracts are awarded under
this title on a competitive basis.
29 USC 772.

‘‘SEC. 302. TRAINING.

‘‘(a) GRANTS AND CONTRACTS FOR PERSONNEL TRAINING.—
‘‘(1) AUTHORITY.—The Commissioner shall make grants to,
and enter into contracts with, States and public or nonprofit
agencies and organizations (including institutions of higher education) to pay part of the cost of projects to provide training,
traineeships, and related activities, including the provision of
technical assistance, that are designed to assist in increasing
the numbers of, and upgrading the skills of, qualified personnel
(especially rehabilitation counselors) who are trained in providing vocational, medical, social, and psychological rehabilitation
services, who are trained to assist individuals with communication and related disorders, who are trained to provide other
services provided under this Act, to individuals with disabilities,
and who may include—
‘‘(A) personnel specifically trained in providing employment assistance to individuals with disabilities through
job development and job placement services;
‘‘(B) personnel specifically trained to identify, assess,
and meet the individual rehabilitation needs of individuals
with disabilities, including needs for rehabilitation technology;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1185

‘‘(C) personnel specifically trained to deliver services
to individuals who may benefit from receiving independent
living services;
‘‘(D) personnel specifically trained to deliver services
in the client assistance programs;
‘‘(E) personnel specifically trained to deliver services,
through supported employment programs, to individuals
with a most significant disability; and
‘‘(F) personnel specifically trained to deliver services
to individuals with disabilities pursuing self-employment,
business ownership, and telecommuting; and
‘‘(G) personnel trained in performing other functions
necessary to the provision of vocational, medical, social,
and psychological rehabilitation services, and other services
provided under this Act.
‘‘(2) AUTHORITY TO PROVIDE SCHOLARSHIPS.—Grants and
contracts under paragraph (1) may be expended for scholarships
and may include necessary stipends and allowances.
‘‘(3) RELATED FEDERAL STATUTES.—In carrying out this subsection, the Commissioner may make grants to and enter into
contracts with States and public or nonprofit agencies and
organizations, including institutions of higher education, to furnish training regarding provisions of Federal statutes, including
section 504, title I of the Americans with Disabilities Act of
1990 (42 U.S.C. 12111 et seq.), and the provisions of titles
II and XVI of the Social Security Act (42 U.S.C. 401 et seq.
and 1381 et seq.), that are related to work incentives for individuals with disabilities.
‘‘(4) TRAINING FOR STATEWIDE WORKFORCE SYSTEMS PERSONNEL.—The Commissioner may make grants to and enter into
contracts under this subsection with States and public or nonprofit agencies and organizations, including institutions of
higher education, to furnish training to personnel providing
services to individuals with disabilities under title I of the
Workforce Investment Act of 1998. Under this paragraph,
personnel may be trained—
‘‘(A) in evaluative skills to determine whether an
individual with a disability may be served by the State
vocational rehabilitation program or another component
of a statewide workforce investment system; or
‘‘(B) to assist individuals with disabilities seeking
assistance through one-stop delivery systems described in
section 134(c) of the Workforce Investment Act of 1998.
‘‘(5) JOINT FUNDING.—Training and other activities provided
under paragraph (4) for personnel may be jointly funded with
the Department of Labor, using funds made available under
title I of the Workforce Investment Act of 1998.
‘‘(b) GRANTS AND CONTRACTS FOR ACADEMIC DEGREES AND
ACADEMIC CERTIFICATE GRANTING TRAINING PROJECTS.—
‘‘(1) AUTHORITY.—
‘‘(A) IN GENERAL.—The Commissioner may make
grants to, and enter into contracts with, States and public
or nonprofit agencies and organizations (including institutions of higher education) to pay part of the costs of academic training projects to provide training that leads to
an academic degree or academic certificate. In making such
grants or entering into such contracts, the Commissioner

112 STAT. 1186

PUBLIC LAW 105–220—AUG. 7, 1998
shall target funds to areas determined under subsection
(e) to have shortages of qualified personnel.
‘‘(B) TYPES OF PROJECTS.—Academic training projects
described in this subsection may include—
‘‘(i) projects to train personnel in the areas of
assisting and supporting individuals with disabilities
pursuing self-employment, business ownership, and
telecommuting, and of vocational rehabilitation counseling, rehabilitation technology, rehabilitation medicine, rehabilitation nursing, rehabilitation social work,
rehabilitation psychiatry, rehabilitation psychology,
rehabilitation dentistry, physical therapy, occupational
therapy, speech pathology and audiology, physical education, therapeutic recreation, community rehabilitation programs, or prosthetics and orthotics;
‘‘(ii) projects to train personnel to provide—
‘‘(I) services to individuals with specific disabilities or individuals with disabilities who have specific impediments to rehabilitation, including
individuals who are members of populations that
are unserved or underserved by programs under
this Act;
‘‘(II) job development and job placement services to individuals with disabilities;
‘‘(III) supported employment services, including services of employment specialists for individuals with disabilities;
‘‘(IV) specialized services for individuals with
significant disabilities; or
‘‘(V) recreation for individuals with disabilities;
‘‘(iii) projects to train personnel in other fields
contributing to the rehabilitation of individuals with
disabilities; and
‘‘(iv) projects to train personnel in the use, applications, and benefits of rehabilitation technology.
‘‘(2) APPLICATION.—No grant shall be awarded or contract
entered into under this subsection unless the applicant has
submitted to the Commissioner an application at such time,
in such form, in accordance with such procedures, and including
such information as the Secretary may require, including—
‘‘(A) a description of how the designated State unit
or units will participate in the project to be funded under
the grant or contract, including, as appropriate, participation on advisory committees, as practicum sites, in curriculum development, and in other ways so as to build closer
relationships between the applicant and the designated
State unit and to encourage students to pursue careers
in public vocational rehabilitation programs;
‘‘(B) the identification of potential employers that provide employment that meets the requirements of paragraph
(5)(A)(i); and
‘‘(C) an assurance that data on the employment of
graduates or trainees who participate in the project is
accurate.
‘‘(3) LIMITATION.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), no grant or contract under this subsection may be

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112 STAT. 1187

used to provide any one course of study to an individual
for a period of more than 4 years.
‘‘(B) EXCEPTION.—If a grant or contract recipient under
this subsection determines that an individual has a disability which seriously affects the completion of training under
this subsection, the grant or contract recipient may extend
the period referred to in subparagraph (A).
‘‘(4) AUTHORITY TO PROVIDE SCHOLARSHIPS.—Grants and
contracts under paragraph (1) may be expanded to provide
services that include the provision of scholarships and necessary
stipends and allowances.
‘‘(5) AGREEMENTS.—
‘‘(A) CONTENTS.—A recipient of a grant or contract
under this subsection shall provide assurances to the
Commissioner that each individual who receives a scholarship, for any academic year beginning after June 1, 1992,
utilizing funds provided under such grant or contract shall
enter into an agreement with the recipient under which
the individual shall—
‘‘(i) maintain employment—
‘‘(I) in a nonprofit rehabilitation agency or
related agency or in a State rehabilitation agency
or related agency, including a professional corporation or professional practice group through which
the individual has a service arrangement with the
designated State agency;
‘‘(II) on a full- or part-time basis; and
‘‘(III) for a period of not less than the fulltime equivalent of 2 years for each year for which
assistance under this section was received by the
individual,
within a period, beginning after the recipient completes
the training for which the scholarship was awarded,
of not more than the sum of the number of years
in the period described in subclause (III) and 2 additional years; and
‘‘(ii) repay all or part of any scholarship received,
plus interest, if the individual does not fulfill the
requirements of clause (i),
except as the Commissioner by regulation may provide
for repayment exceptions and deferrals.
‘‘(B) ENFORCEMENT.—The Commissioner shall be
responsible for the enforcement of each agreement entered
into under subparagraph (A) upon completion of the training involved under such subparagraph.
‘‘(c) GRANTS TO HISTORICALLY BLACK COLLEGES AND UNIVERSITIES.—The Commissioner, in carrying out this section, shall make
grants to historically Black colleges and universities and other
institutions of higher education whose minority student enrollment
is at least 50 percent of the total enrollment of the institution.
‘‘(d) APPLICATION.—A grant may not be awarded to a State
or other organization under this section unless the State or
organization has submitted an application to the Commissioner
at such time, in such form, in accordance with such procedures,
and containing such information as the Commissioner may require.
Any such application shall include a detailed description of strategies that will be utilized to recruit and train individuals so as

112 STAT. 1188

Reports.

PUBLIC LAW 105–220—AUG. 7, 1998

to reflect the diverse populations of the United States as part
of the effort to increase the number of individuals with disabilities,
and individuals who are from linguistically and culturally diverse
backgrounds, who are available to provide rehabilitation services.
‘‘(e) EVALUATION AND COLLECTION OF DATA.—The Commissioner shall evaluate the impact of the training programs conducted
under this section, and collect information on the training needs
of, and data on shortages of qualified personnel necessary to provide
services to individuals with disabilities. The Commissioner shall
prepare and submit to Congress, by September 30 of each fiscal
year, a report setting forth and justifying in detail how the funds
made available for training under this section for the fiscal year
prior to such submission are allocated by professional discipline
and other program areas. The report shall also contain findings
on such personnel shortages, how funds proposed for the succeeding
fiscal year will be allocated under the President’s budget proposal,
and how the findings on personnel shortages justify the allocations.
‘‘(f ) GRANTS FOR THE TRAINING OF INTERPRETERS.—
‘‘(1) AUTHORITY.—
‘‘(A) IN GENERAL.—For the purpose of training a sufficient number of qualified interpreters to meet the communications needs of individuals who are deaf or hard of
hearing, and individuals who are deaf-blind, the Commissioner, acting through a Federal office responsible for deafness and communicative disorders, may award grants to
public or private nonprofit agencies or organizations to
pay part of the costs—
‘‘(i) for the establishment of interpreter training
programs; or
‘‘(ii) to enable such agencies or organizations to
provide financial assistance for ongoing interpreter
training programs.
‘‘(B) GEOGRAPHIC AREAS.—The Commissioner shall
award grants under this subsection for programs in
geographic areas throughout the United States that the
Commissioner considers appropriate to best carry out the
objectives of this section.
‘‘(C) PRIORITY.—In awarding grants under this subsection, the Commissioner shall give priority to public or
private nonprofit agencies or organizations with existing
programs that have a demonstrated capacity for providing
interpreter training services.
‘‘(D) FUNDING.—The Commissioner may award grants
under this subsection through the use of—
‘‘(i) amounts appropriated to carry out this section;
or
‘‘(ii) pursuant to an agreement with the Director
of the Office of the Special Education Program (established under section 603 of the Individuals with
Disabilities Education Act (as amended by section 101
of the Individuals with Disabilities Education Act
Amendments of 1997 (Public Law 105–17))), amounts
appropriated under section 686 of the Individuals with
Disabilities Education Act.
‘‘(2) APPLICATION.—A grant may not be awarded to an
agency or organization under paragraph (1) unless the agency

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1189

or organization has submitted an application to the Commissioner at such time, in such form, in accordance with such
procedures, and containing such information as the Commissioner may require, including—
‘‘(A) a description of the manner in which an interpreter training program will be developed and operated
during the 5-year period following the date on which a
grant is received by the applicant under this subsection;
‘‘(B) a demonstration of the applicant’s capacity or
potential for providing training for interpreters for individuals who are deaf or hard of hearing, and individuals
who are deaf-blind;
‘‘(C) assurances that any interpreter trained or
retrained under a program funded under the grant will
meet such minimum standards of competency as the
Commissioner may establish for purposes of this subsection; and
‘‘(D) such other information as the Commissioner may
require.
‘‘(g) TECHNICAL ASSISTANCE AND IN-SERVICE TRAINING.—
‘‘(1) TECHNICAL ASSISTANCE.—The Commissioner is authorized to provide technical assistance to State designated agencies
and community rehabilitation programs, directly or through
contracts with State designated agencies or nonprofit organizations.
‘‘(2) COMPENSATION.—An expert or consultant appointed
or serving under contract pursuant to this section shall be
compensated at a rate, subject to approval of the Commissioner,
that shall not exceed the daily equivalent of the rate of pay
for level 4 of the Senior Executive Service Schedule under
section 5382 of title 5, United States Code. Such an expert
or consultant may be allowed travel and transportation
expenses in accordance with section 5703 of title 5, United
States Code.
‘‘(3) IN-SERVICE TRAINING OF REHABILITATION PERSONNEL.—
‘‘(A) PROJECTS.—Subject to subparagraph (B), at least
15 percent of the sums appropriated to carry out this
section shall be allocated to designated State agencies to
be used, directly or indirectly, for projects for in-service
training for rehabilitation personnel, consistent with the
needs identified through the comprehensive system for
personnel development required by section 101(a)(7),
including projects designed—
‘‘(i) to address recruitment and retention of qualified rehabilitation professionals;
‘‘(ii) to provide for succession planning;
‘‘(iii) to provide for leadership development and
capacity building; and
‘‘(iv) for fiscal years 1999 and 2000, to provide
training regarding the Workforce Investment Act of
1998 and the amendments to this Act made by the
Rehabilitation Act Amendments of 1998.
‘‘(B) LIMITATION.—If the allocation to designated State
agencies required by subparagraph (A) would result in
a lower level of funding for projects being carried out
on the date of enactment of the Rehabilitation Act Amendments of 1998 by other recipients of funds under this

112 STAT. 1190

PUBLIC LAW 105–220—AUG. 7, 1998

section, the Commissioner may allocate less than 15 percent of the sums described in subparagraph (A) to designated State agencies for such in-service training.
‘‘(h) PROVISION OF INFORMATION.—The Commissioner, subject
to the provisions of section 306, may require that recipients of
grants or contracts under this section provide information, including
data, with regard to the impact of activities funded under this
section.
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section such sums as may
be necessary for each of the fiscal years 1999 through 2003.
29 USC 773.

‘‘SEC. 303. DEMONSTRATION AND TRAINING PROGRAMS.

‘‘(a) DEMONSTRATION PROJECTS TO INCREASE CLIENT CHOICE.—
‘‘(1) GRANTS.—The Commissioner may make grants to
States and public or nonprofit agencies and organizations to
pay all or part of the costs of projects to demonstrate ways
to increase client choice in the rehabilitation process, including
the selection of providers of vocational rehabilitation services.
‘‘(2) USE OF FUNDS.—An entity that receives a grant under
this subsection shall use the grant only—
‘‘(A) for activities that are directly related to planning,
operating, and evaluating the demonstration projects; and
‘‘(B) to supplement, and not supplant, funds made
available from Federal and non-Federal sources for such
projects.
‘‘(3) APPLICATION.—Any eligible entity that desires to
receive a grant under this subsection shall submit an application at such time, in such manner, and containing such information and assurances as the Commissioner may require, including—
‘‘(A) a description of—
‘‘(i) how the entity intends to promote increased
client choice in the rehabilitation process, including
a description, if appropriate, of how an applicant will
determine the cost of any service or product offered
to an eligible client;
‘‘(ii) how the entity intends to ensure that any
vocational rehabilitation service or related service is
provided by a qualified provider who is accredited or
meets such other quality assurance and cost-control
criteria as the State may establish; and
‘‘(iii) the outreach activities to be conducted by
the applicant to obtain eligible clients; and
‘‘(B) assurances that a written plan will be established
with the full participation of the client, which plan shall,
at a minimum, include—
‘‘(i) a statement of the vocational rehabilitation
goals to be achieved;
‘‘(ii) a statement of the specific vocational
rehabilitation services to be provided, the projected
dates for their initiation, and the anticipated duration
of each such service; and
‘‘(iii) objective criteria, an evaluation procedure,
and a schedule, for determining whether such goals
are being achieved.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1191

‘‘(4) AWARD OF GRANTS.—In selecting entities to receive
grants under paragraph (1), the Commissioner shall take into
consideration—
‘‘(A) the diversity of strategies used to increase client
choice, including selection among qualified service providers;
‘‘(B) the geographic distribution of projects; and
‘‘(C) the diversity of clients to be served.
‘‘(5) RECORDS.—Entities that receive grants under paragraph (1) shall maintain such records as the Commissioner
may require and comply with any request from the Commissioner for such records.
‘‘(6) DIRECT SERVICES.—At least 80 percent of the funds
awarded for any project under this subsection shall be used
for direct services, as specifically chosen by eligible clients.
‘‘(7) EVALUATION.—The Commissioner may conduct an
evaluation of the demonstration projects with respect to the
services provided, clients served, client outcomes obtained,
implementation issues addressed, the cost-effectiveness of the
project, and the effects of increased choice on clients and service
providers. The Commissioner may reserve funds for the evaluation for a fiscal year from the amounts appropriated to carry
out projects under this section for the fiscal year.
‘‘(8) DEFINITIONS.—For the purposes of this subsection:
‘‘(A) DIRECT SERVICES.—The term ‘direct services’
means vocational rehabilitation services, as described in
section 103(a).
‘‘(B) ELIGIBLE CLIENT.—The term ‘eligible client’ means
an individual with a disability, as defined in section
7(20)(A), who is not currently receiving services under an
individualized plan for employment established through
a designated State unit.
‘‘(b) SPECIAL DEMONSTRATION PROGRAMS.—
‘‘(1) GRANTS; CONTRACTS.—The Commissioner, subject to
the provisions of section 306, may provide grants to, or enter
into contracts with, eligible entities to pay all or part of the
cost of programs that expand and improve the provision of
rehabilitation and other services authorized under this Act
or that further the purposes of the Act, including related
research and evaluation activities.
‘‘(2) ELIGIBLE ENTITIES; TERMS AND CONDITIONS.—
‘‘(A) ELIGIBLE ENTITIES.—To be eligible to receive a
grant, or enter into a contract, under paragraph (1), an
entity shall be a State vocational rehabilitation agency,
community rehabilitation program, Indian tribe or tribal
organization, or other public or nonprofit agency or
organization, or as the Commissioner determines appropriate, a for-profit organization. The Commissioner may
limit competitions to one or more types of organizations
described in this subparagraph.
‘‘(B) TERMS AND CONDITIONS.—A grant or contract
under paragraph (1) shall contain such terms and conditions as the Commissioner may require.
‘‘(3) APPLICATION.—An eligible entity that desires to receive
a grant, or enter into a contract, under paragraph (1) shall
submit an application to the Secretary at such time, in such
form, and containing such information and assurances as the

112 STAT. 1192

PUBLIC LAW 105–220—AUG. 7, 1998
Commissioner may require, including, if the Commissioner
determines appropriate, a description of how the proposed
project or demonstration program—
‘‘(A) is based on current research findings, which may
include research conducted by the National Institute on
Disability and Rehabilitation Research, the National
Institutes of Health, and other public or private organizations; and
‘‘(B) is of national significance.
‘‘(4) TYPES OF PROJECTS.—The programs that may be
funded under this subsection may include—
‘‘(A) special projects and demonstrations of service
delivery;
‘‘(B) model demonstration projects;
‘‘(C) technical assistance projects;
‘‘(D) systems change projects;
‘‘(E) special studies and evaluations; and
‘‘(F) dissemination and utilization activities.
‘‘(5) PRIORITY FOR COMPETITIONS.—
‘‘(A) IN GENERAL.—In announcing competitions for
grants and contracts under this subsection, the Commissioner shall give priority consideration to—
‘‘(i) special projects and demonstration programs
of service delivery for adults who are either low-functioning and deaf or low-functioning and hard of hearing;
‘‘(ii) supported employment, including communitybased supported employment programs to meet the
needs of individuals with the most significant disabilities or to provide technical assistance to States and
community organizations to improve and expand the
provision of supported employment services; and
‘‘(iii) model transitional planning services for
youths with disabilities.
‘‘(B) ADDITIONAL COMPETITIONS.—In announcing competitions for grants and contracts under this subsection,
the Commissioner may require that applicants address one
or more of the following:
‘‘(i) Age ranges.
‘‘(ii) Types of disabilities.
‘‘(iii) Types of services.
‘‘(iv) Models of service delivery.
‘‘(v) Stage of the rehabilitation process.
‘‘(vi) The needs of underserved populations,
unserved and underserved areas, individuals with
significant disabilities, low-incidence disability population or individuals residing in federally designated
empowerment zones and enterprise communities.
‘‘(vii) Expansion of employment opportunities for
individuals with disabilities.
‘‘(viii) Systems change projects to promote meaningful access of individuals with disabilities to employment-related services under title I of the Workforce
Investment Act of 1998 and under other Federal laws.
‘‘(ix) Innovative methods of promoting achievement
of high-quality employment outcomes.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1193

‘‘(x) The demonstration of the effectiveness of early
intervention activities in improving employment outcomes.
‘‘(xi) Alternative methods of providing affordable
transportation services to individuals with disabilities
who are employed, seeking employment, or receiving
vocational rehabilitation services from public or private
organizations and who reside in geographic areas in
which public transportation or paratransit service is
not available.
‘‘(6) USE OF FUNDS FOR CONTINUATION AWARDS.—The
Commissioner may use funds made available to carry out this
section for continuation awards for projects that were funded
under sections 12 and 311 (as such sections were in effect
on the day before the date of the enactment of the Rehabilitation Act Amendments of 1998).
‘‘(c) PARENT INFORMATION AND TRAINING PROGRAM.—
‘‘(1) GRANTS.—The Commissioner is authorized to make
grants to private nonprofit organizations for the purpose of
establishing programs to provide training and information to
enable individuals with disabilities, and the parents, family
members, guardians, advocates, or other authorized representatives of the individuals to participate more effectively with
professionals in meeting the vocational, independent living,
and rehabilitation needs of individuals with disabilities. Such
grants shall be designed to meet the unique training and
information needs of the individuals described in the preceding
sentence, who live in the area to be served, particularly those
who are members of populations that have been unserved or
underserved by programs under this Act.
‘‘(2) USE OF GRANTS.—An organization that receives a grant
to establish training and information programs under this subsection shall use the grant to assist individuals with disabilities,
and the parents, family members, guardians, advocates, or
authorized representatives of the individuals—
‘‘(A) to better understand vocational rehabilitation and
independent living programs and services;
‘‘(B) to provide followup support for transition and
employment programs;
‘‘(C) to communicate more effectively with transition
and rehabilitation personnel and other relevant professionals;
‘‘(D) to provide support in the development of the
individualized plan for employment;
‘‘(E) to provide support and expertise in obtaining
information about rehabilitation and independent living
programs, services, and resources that are appropriate;
and
‘‘(F) to understand the provisions of this Act, particularly provisions relating to employment, supported employment, and independent living.
‘‘(3) AWARD OF GRANTS.—The Commissioner shall ensure
that grants under this subsection—
‘‘(A) shall be distributed geographically to the greatest
extent possible throughout all States; and
‘‘(B) shall be targeted to individuals with disabilities,
and the parents, family members, guardians, advocates,

112 STAT. 1194

PUBLIC LAW 105–220—AUG. 7, 1998
or authorized representatives of the individuals, in both
urban and rural areas or on a State or regional basis.
‘‘(4) ELIGIBLE ORGANIZATIONS.—In order to receive a grant
under this subsection, an organization—
‘‘(A) shall submit an application to the Commissioner
at such time, in such manner, and containing such information as the Commissioner may require, including information demonstrating the capacity and expertise of the
organization—
‘‘(i) to coordinate training and information activities with Centers for Independent Living;
‘‘(ii) to coordinate and work closely with parent
training and information centers established pursuant
to section 682(a) of the Individuals with Disabilities
Education Act (as added by section 101 of the Individuals with Disabilities Education Act Amendments of
1997; Public Law 105–17); and
‘‘(iii) to effectively conduct the training and
information activities authorized under this subsection;
‘‘(B)(i) shall be governed by a board of directors—
‘‘(I) that includes professionals in the field of vocational rehabilitation; and
‘‘(II) on which a majority of the members are
individuals with disabilities or the parents, family
members, guardians, advocates, or authorized representatives of the individuals; or
‘‘(ii)(I) shall have a membership that represents the
interests of individuals with disabilities; and
‘‘(II) shall establish a special governing committee that
meets the requirements specified in subclauses (I) and
(II) of clause (i) to operate a training and information
program under this subsection; and
‘‘(C) shall serve individuals with a full range of disabilities, and the parents, family members, guardians, advocates, or authorized representatives of the individuals.
‘‘(5) CONSULTATION.—Each organization carrying out a program receiving assistance under this subsection shall consult
with appropriate agencies that serve or assist individuals with
disabilities, and the parents, family members, guardians, advocates, or authorized representatives of the individuals, located
in the jurisdiction served by the program.
‘‘(6) COORDINATION.—The Commissioner shall provide
coordination and technical assistance by grant or cooperative
agreement for establishing, developing, and coordinating the
training and information programs. To the extent practicable,
such assistance shall be provided by the parent training and
information centers established pursuant to section 682(a) of
the Individuals with Disabilities Education Act (as added by
section 101 of the Individuals with Disabilities Education Act
Amendments of 1997; Public Law 105–17).
‘‘(7) REVIEW.—
‘‘(A) QUARTERLY REVIEW.—The board of directors or
special governing committee of an organization receiving
a grant under this subsection shall meet at least once
in each calendar quarter to review the training and
information program, and each such committee shall

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112 STAT. 1195

directly advise the governing board regarding the views
and recommendations of the committee.
‘‘(B) REVIEW FOR GRANT RENEWAL.—If a nonprofit private organization requests the renewal of a grant under
this subsection, the board of directors or the special governing committee shall prepare and submit to the Commissioner a written review of the training and information
program conducted by the organization during the preceding fiscal year.
‘‘(d) BRAILLE TRAINING PROGRAMS.—
‘‘(1) ESTABLISHMENT.—The Commissioner shall make
grants to, and enter into contracts with, States and public
or nonprofit agencies and organizations, including institutions
of higher education, to pay all or part of the cost of training
in the use of braille for personnel providing vocational
rehabilitation services or educational services to youth and
adults who are blind.
‘‘(2) PROJECTS.—Such grants shall be used for the establishment or continuation of projects that may provide—
‘‘(A) development of braille training materials;
‘‘(B) in-service or pre-service training in the use of
braille, the importance of braille literacy, and methods
of teaching braille to youth and adults who are blind;
and
‘‘(C) activities to promote knowledge and use of braille
and nonvisual access technology for blind youth and adults
through a program of training, demonstration, and evaluation conducted with leadership of experienced blind individuals, including the use of comprehensive, state-of-the-art
technology.
‘‘(3) APPLICATION.—To be eligible to receive a grant, or
enter into a contract, under paragraph (1), an agency or
organization shall submit an application to the Commissioner
at such time, in such manner, and containing such information
as the Commissioner may require.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section such sums as may
be necessary for each of the fiscal years 1999 through 2003.
‘‘SEC. 304. MIGRANT AND SEASONAL FARMWORKERS.

‘‘(a) GRANTS.—
‘‘(1) AUTHORITY.—The Commissioner, subject to the provisions of section 306, may make grants to eligible entities to
pay up to 90 percent of the cost of projects or demonstration
programs for the provision of vocational rehabilitation services
to individuals with disabilities who are migrant or seasonal
farmworkers, as determined in accordance with rules prescribed
by the Secretary of Labor, and to the family members who
are residing with such individuals (whether or not such family
members are individuals with disabilities).
‘‘(2) ELIGIBLE ENTITIES.—To be eligible to receive a grant
under paragraph (1), an entity shall be—
‘‘(A) a State designated agency;
‘‘(B) a nonprofit agency working in collaboration with
a State agency described in subparagraph (A); or
‘‘(C) a local agency working in collaboration with a
State agency described in subparagraph (A).

29 USC 774.

112 STAT. 1196

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(3) MAINTENANCE AND TRANSPORTATION.—
‘‘(A) IN GENERAL.—Amounts provided under a grant
under this section may be used to provide for the maintenance of and transportation for individuals and family
members described in paragraph (1) as necessary for the
rehabilitation of such individuals.
‘‘(B) REQUIREMENT.—Maintenance payments under
this paragraph shall be provided in a manner consistent
with any maintenance payments provided to other individuals with disabilities in the State under this Act.
‘‘(4) ASSURANCE OF COOPERATION.—To be eligible to receive
a grant under this section an entity shall provide assurances
(satisfactory to the Commissioner) that in the provision of services under the grant there will be appropriate cooperation
between the grantee and other public or nonprofit agencies
and organizations having special skills and experience in the
provision of services to migrant or seasonal farmworkers or
their families.
‘‘(5) COORDINATION WITH OTHER PROGRAMS.—The Commissioner shall administer this section in coordination with other
programs serving migrant and seasonal farmworkers, including
programs under title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), section 330 of
the Public Health Service Act (42 U.S.C. 254b), the Migrant
and Seasonal Agricultural Worker Protection Act (29 U.S.C.
1801 et seq.), and the Workforce Investment Act of 1998.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as may be necessary to carry out
this section, for each of the fiscal years 1999 through 2003.
29 USC 775.

‘‘SEC. 305. RECREATIONAL PROGRAMS.

‘‘(a) GRANTS.—
‘‘(1) AUTHORITY.—
‘‘(A) IN GENERAL.—The Commissioner, subject to the
provisions of section 306, shall make grants to States,
public agencies, and nonprofit private organizations to pay
the Federal share of the cost of the establishment and
operation of recreation programs to provide individuals
with disabilities with recreational activities and related
experiences to aid in the employment, mobility, socialization, independence, and community integration of such
individuals.
‘‘(B) RECREATION PROGRAMS.—The recreation programs
that may be funded using assistance provided under a
grant under this section may include vocational skills
development, leisure education, leisure networking, leisure
resource development, physical education and sports, scouting and camping, 4–H activities, construction of facilities
for aquatic rehabilitation therapy, music, dancing, handicrafts, art, and homemaking. When possible and appropriate, such programs and activities should be provided
in settings with peers who are not individuals with disabilities.
‘‘(C) DESIGN OF PROGRAM.—Programs and activities
carried out under this section shall be designed to demonstrate ways in which such programs assist in maximizing

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1197

the independence and integration of individuals with
disabilities.
‘‘(2) MAXIMUM TERM OF GRANT.—A grant under this section
shall be made for a period of not more than 3 years.
‘‘(3) AVAILABILITY OF NONGRANT RESOURCES.—
‘‘(A) IN GENERAL.—A grant may not be made to an
applicant under this section unless the applicant provides
assurances that, with respect to costs of the recreation
program to be carried out under the grant, the applicant,
to the maximum extent practicable, will make available
non-Federal resources (in cash or in-kind) to pay the nonFederal share of such costs.
‘‘(B) FEDERAL SHARE.—The Federal share of the costs
of the recreation programs carried out under this section
shall be—
‘‘(i) with respect to the first year in which assistance is provided under a grant under this section,
100 percent;
‘‘(ii) with respect to the second year in which assistance is provided under a grant under this section,
75 percent; and
‘‘(iii) with respect to the third year in which assistance is provided under a grant under this section,
50 percent.
‘‘(4) APPLICATION.—To be eligible to receive a grant under
this section, a State, agency, or organization shall submit an
application to the Commissioner at such time, in such manner,
and containing such information as the Commissioner may
require, including a description of—
‘‘(A) the manner in which the findings and results
of the project to be funded under the grant, particularly
information that facilitates the replication of the results
of such projects, will be made generally available; and
‘‘(B) the manner in which the service program funded
under the grant will be continued after Federal assistance
ends.
‘‘(5) LEVEL OF SERVICES.—Recreation programs funded
under this section shall maintain, at a minimum, the same
level of services over a 3-year project period.
‘‘(6) REPORTS BY GRANTEES.—
‘‘(A) REQUIREMENT.—The Commissioner shall require
that each recipient of a grant under this section annually
prepare and submit to the Commissioner a report concerning the results of the activities funded under the grant.
‘‘(B) LIMITATION.—The Commissioner may not make
financial assistance available to a grant recipient for a
subsequent year until the Commissioner has received and
evaluated the annual report of the recipient under subparagraph (A) for the current year.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section, such sums as may
be necessary for each of the fiscal years 1999 through 2003.
‘‘SEC. 306. MEASURING OF PROJECT OUTCOMES AND PERFORMANCE.

‘‘The Commissioner may require that recipients of grants under
this title submit information, including data, as determined by
the Commissioner to be necessary to measure project outcomes

29 USC 776.

112 STAT. 1198

PUBLIC LAW 105–220—AUG. 7, 1998

and performance, including any data needed to comply with the
Government Performance and Results Act.’’.
SEC. 407. NATIONAL COUNCIL ON DISABILITY.

Title IV of the Rehabilitation Act of 1973 (29 U.S.C. 780 et
seq.) is amended to read as follows:
‘‘TITLE IV—NATIONAL COUNCIL ON DISABILITY
‘‘ESTABLISHMENT
President.
29 USC 780.

OF NATIONAL COUNCIL ON DISABILITY

‘‘SEC. 400. (a)(1)(A) There is established within the Federal
Government a National Council on Disability (hereinafter in this
title referred to as the ‘National Council’), which shall be composed
of fifteen members appointed by the President, by and with the
advice and consent of the Senate.
‘‘(B) The President shall select members of the National Council
after soliciting recommendations from representatives of—
‘‘(i) organizations representing a broad range of individuals
with disabilities; and
‘‘(ii) organizations interested in individuals with disabilities.
‘‘(C) The members of the National Council shall be individuals
with disabilities, parents or guardians of individuals with disabilities, or other individuals who have substantial knowledge or experience relating to disability policy or programs. The members of
the National Council shall be appointed so as to be representative
of individuals with disabilities, national organizations concerned
with individuals with disabilities, providers and administrators of
services to individuals with disabilities, individuals engaged in
conducting medical or scientific research relating to individuals
with disabilities, business concerns, and labor organizations. A
majority of the members of the National Council shall be individuals
with disabilities. The members of the National Council shall be
broadly representative of minority and other individuals and groups.
‘‘(2) The purpose of the National Council is to promote policies,
programs, practices, and procedures that—
‘‘(A) guarantee equal opportunity for all individuals with
disabilities, regardless of the nature or severity of the disability;
and
‘‘(B) empower individuals with disabilities to achieve economic self-sufficiency, independent living, and inclusion and
integration into all aspects of society.
‘‘(b)(1) Each member of the National Council shall serve for
a term of 3 years, except that the terms of service of the members
initially appointed after the date of enactment of the Rehabilitation,
Comprehensive Services, and Developmental Disabilities Amendments of 1978 shall be (as specified by the President) for such
fewer number of years as will provide for the expiration of terms
on a staggered basis.
‘‘(2)(A) No member of the National Council may serve more
than two consecutive full terms beginning on the date of commencement of the first full term on the Council. Members may serve
after the expiration of their terms until their successors have taken
office.
‘‘(B) As used in this paragraph, the term ‘full term’ means
a term of 3 years.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1199

‘‘(3) Any member appointed to fill a vacancy occurring before
the expiration of the term for which such member’s predecessor
was appointed shall be appointed only for the remainder of such
term.
‘‘(c) The President shall designate the Chairperson from among
the members appointed to the National Council. The National Council shall meet at the call of the Chairperson, but not less often
than four times each year.
‘‘(d) Eight members of the National Council shall constitute
a quorum and any vacancy in the National Council shall not affect
its power to function.
‘‘DUTIES

President.

OF NATIONAL COUNCIL

‘‘SEC. 401. (a) The National Council shall—
‘‘(1) provide advice to the Director with respect to the
policies and conduct of the National Institute on Disability
and Rehabilitation Research, including ways to improve
research concerning individuals with disabilities and the methods of collecting and disseminating findings of such research;
‘‘(2) provide advice to the Commissioner with respect to
the policies of and conduct of the Rehabilitation Services
Administration;
‘‘(3) advise the President, the Congress, the Commissioner,
the appropriate Assistant Secretary of the Department of Education, and the Director of the National Institute on Disability
and Rehabilitation Research on the development of the programs to be carried out under this Act;
‘‘(4) provide advice regarding priorities for the activities
of the Interagency Disability Coordinating Council and review
the recommendations of such Council for legislative and
administrative changes to ensure that such recommendations
are consistent with the purposes of the Council to promote
the full integration, independence, and productivity of individuals with disabilities;
‘‘(5) review and evaluate on a continuing basis—
‘‘(A) policies, programs, practices, and procedures
concerning individuals with disabilities conducted or
assisted by Federal departments and agencies, including
programs established or assisted under this Act or under
the Developmental Disabilities Assistance and Bill of
Rights Act; and
‘‘(B) all statutes and regulations pertaining to Federal
programs which assist such individuals with disabilities;
in order to assess the effectiveness of such policies, programs,
practices, procedures, statutes, and regulations in meeting the
needs of individuals with disabilities;
‘‘(6) assess the extent to which such policies, programs,
practices, and procedures facilitate or impede the promotion
of the policies set forth in subparagraphs (A) and (B) of section
400(a)(2);
‘‘(7) gather information about the implementation, effectiveness, and impact of the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.);
‘‘(8) make recommendations to the President, the Congress,
the Secretary, the Director of the National Institute on Disability and Rehabilitation Research, and other officials of Federal

29 USC 781.

112 STAT. 1200

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agencies or other Federal entities, respecting ways to better
promote the policies set forth in section 400(a)(2);
‘‘(9) provide to the Congress on a continuing basis advice,
recommendations, legislative proposals, and any additional
information that the National Council or the Congress deems
appropriate; and
‘‘(10) review and evaluate on a continuing basis new and
emerging disability policy issues affecting individuals with
disabilities at the Federal, State, and local levels, and in the
private sector, including the need for and coordination of adult
services, access to personal assistance services, school reform
efforts and the impact of such efforts on individuals with
disabilities, access to health care, and policies that operate
as disincentives for the individuals to seek and retain employment.
‘‘(b)(1) Not later than October 31, 1998, and annually thereafter,
the National Council shall prepare and submit to the President
and the appropriate committees of the Congress a report entitled
‘National Disability Policy: A Progress Report’.
‘‘(2) The report shall assess the status of the Nation in achieving
the policies set forth in section 400(a)(2), with particular focus
on the new and emerging issues impacting on the lives of individuals
with disabilities. The report shall present, as appropriate, available
data on health, housing, employment, insurance, transportation,
recreation, training, prevention, early intervention, and education.
The report shall include recommendations for policy change.
‘‘(3) In determining the issues to focus on and the findings,
conclusions, and recommendations to include in the report, the
National Council shall seek input from the public, particularly
individuals with disabilities, representatives of organizations representing a broad range of individuals with disabilities, and
organizations and agencies interested in individuals with disabilities.
‘‘COMPENSATION

29 USC 782.

‘‘SEC. 402. (a) Members of the National Council shall be entitled
to receive compensation at a rate equal to the rate of pay for
level 4 of the Senior Executive Service Schedule under section
5382 of title 5, United States Code, including travel time, for
each day they are engaged in the performance of their duties
as members of the National Council.
‘‘(b) Members of the National Council who are full-time officers
or employees of the United States shall receive no additional pay
on account of their service on the National Council except for
compensation for travel expenses as provided under subsection (c)
of this section.
‘‘(c) While away from their homes or regular places of business
in the performance of services for the National Council, members
of the National Council shall be allowed travel expenses, including
per diem in lieu of subsistence, in the same manner as persons
employed intermittently in the Government service are allowed
expenses under section 5703 of title 5, United States Code.
‘‘STAFF

29 USC 783.

OF NATIONAL COUNCIL MEMBERS

OF NATIONAL COUNCIL

‘‘SEC. 403. (a)(1) The Chairperson of the National Council may
appoint and remove, without regard to the provisions of title 5,

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1201

United States Code, governing appointments, the provisions of chapter 75 of such title (relating to adverse actions), the provisions
of chapter 77 of such title (relating to appeals), or the provisions
of chapter 51 and subchapter III of chapter 53 of such title (relating
to classification and General Schedule pay rates), an Executive
Director to assist the National Council to carry out its duties.
The Executive Director shall be appointed from among individuals
who are experienced in the planning or operation of programs
for individuals with disabilities.
‘‘(2) The Executive Director is authorized to hire technical and
professional employees to assist the National Council to carry out
its duties.
‘‘(b)(1) The National Council may procure temporary and intermittent services to the same extent as is authorized by section
3109(b) of title 5, United States Code (but at rates for individuals
not to exceed the daily equivalent of the rate of pay for level
4 of the Senior Executive Service Schedule under section 5382
of title 5, United States Code).
‘‘(2) The National Council may—
‘‘(A) accept voluntary and uncompensated services, notwithstanding the provisions of section 1342 of title 31, United
States Code;
‘‘(B) in the name of the Council, solicit, accept, employ,
and dispose of, in furtherance of this Act, any money or property, real or personal, or mixed, tangible or nontangible,
received by gift, devise, bequest, or otherwise; and
‘‘(C) enter into contracts and cooperative agreements with
Federal and State agencies, private firms, institutions, and
individuals for the conduct of research and surveys, preparation
of reports and other activities necessary to the discharge of
the Council’s duties and responsibilities.
‘‘(3) Not more than 10 per centum of the total amounts available
to the National Council in each fiscal year may be used for official
representation and reception.
‘‘(c) The Administrator of General Services shall provide to
the National Council on a reimbursable basis such administrative
support services as the Council may request.
‘‘(d)(1) It shall be the duty of the Secretary of the Treasury
to invest such portion of the amounts made available under subsection (a)(2)(B) as is not, in the Secretary’s judgment, required
to meet current withdrawals. Such investments may be made only
in interest-bearing obligations of the United States or in obligations
guaranteed as to both principal and interest by the United States.
‘‘(2) The amounts described in paragraph (1), and the interest
on, and the proceeds from the sale or redemption of, the obligations
described in paragraph (1) shall be available to the National Council
to carry out this title.
‘‘ADMINISTRATIVE

POWERS OF NATIONAL COUNCIL

‘‘SEC. 404. (a) The National Council may prescribe such bylaws
and rules as may be necessary to carry out its duties under this
title.
‘‘(b) The National Council may hold such hearings, sit and
act at such times and places, take such testimony, and receive
such evidence as it deems advisable.

29 USC 784.

112 STAT. 1202

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(c) The National Council may appoint advisory committees
to assist the National Council in carrying out its duties. The members thereof shall serve without compensation.
‘‘(d) The National Council may use the United States mails
in the same manner and upon the same conditions as other departments and agencies of the United States.
‘‘(e) The National Council may use, with the consent of the
agencies represented on the Interagency Disability Coordinating
Council, and as authorized in title V, such services, personnel,
information, and facilities as may be needed to carry out its duties
under this title, with or without reimbursement to such agencies.
‘‘AUTHORIZATION
29 USC 785.

OF APPROPRIATIONS

‘‘SEC. 405. There are authorized to be appropriated to carry
out this title such sums as may be necessary for each of the
fiscal years 1999 through 2003.’’.
SEC. 408. RIGHTS AND ADVOCACY.

(a) CONFORMING AMENDMENTS TO RIGHTS AND ADVOCACY
PROVISIONS.—
(1) EMPLOYMENT.—Section 501 (29 U.S.C. 791) is
amended—
(A) in the third sentence of subsection (a), by striking
‘‘President’s Committees on Employment of the Handicapped’’ and inserting ‘‘President’s Committees on Employment of People With Disabilities’’; and
(B) in subsection (e), by striking ‘‘individualized written
rehabilitation program’’ and inserting ‘‘individualized plan
for employment’’.
(2) ACCESS BOARD.—Section 502 (29 U.S.C. 792) is
amended—
(A) in subsection (a)(1), in the sentence following
subparagraph (B), by striking ‘‘Chairperson’’ and inserting
‘‘chairperson’’;
(B) in subsection (b)—
(i) in paragraph (2), by striking ‘‘guidelines’’ and
inserting ‘‘information’’;
(ii) by striking paragraph (3) and inserting the
following:
‘‘(3) establish and maintain—
‘‘(A) minimum guidelines and requirements for the
standards issued pursuant to the Act commonly known
as the Architectural Barriers Act of 1968;
‘‘(B) minimum guidelines and requirements for the
standards issued pursuant to titles II and III of the Americans with Disabilities Act of 1990;
‘‘(C) guidelines for accessibility of telecommunications
equipment and customer premises equipment under section
255 of the Telecommunications Act of 1934 (47 U.S.C.
255); and
‘‘(D) standards for accessible electronic and information
technology under section 508;’’;
(iii) in paragraph (9), by striking ‘‘; and’’ and inserting a semicolon;
(iv) in paragraph (10), by striking the period and
inserting ‘‘; and’’; and
(v) by adding at the end the following:

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1203

‘‘(11) carry out the responsibilities specified for the Access
Board in section 508.’’;
(C) in subsection (d)(1), by striking ‘‘procedures under
this section’’ and inserting ‘‘procedures under this subsection’’;
(D) in subsection (g)(2), by striking ‘‘Committee on
Education and Labor’’ and inserting ‘‘Committee on Education and the Workforce’’;
(E) in subsection (h)(2)(A), by striking ‘‘paragraphs (5)
and (7)’’ and inserting ‘‘paragraphs (2) and (4)’’; and
(F) in subsection (i), by striking ‘‘fiscal years 1993
through 1997’’ and inserting ‘‘fiscal years 1999 through
2003’’.
(3) FEDERAL GRANTS AND CONTRACTS.—Section 504(a) (29
U.S.C. 794(a)) is amended in the first sentence by striking
‘‘section 7(8)’’ and inserting ‘‘section 7(20)’’.
(4) SECRETARIAL RESPONSIBILITIES.—Section 506(a) (29
U.S.C. 794b(a)) is amended—
(A) by striking the second sentence and inserting the
following: ‘‘Any concurrence of the Access Board under
paragraph (2) shall reflect its consideration of cost studies
carried out by States.’’; and
(B) in the second sentence of subsection (c), by striking
‘‘provided under this paragraph’’ and inserting ‘‘provided
under this subsection’’.
(b) ELECTRONIC AND INFORMATION TECHNOLOGY REGULATIONS.—Section 508 (29 U.S.C. 794d) is amended to read as follows:
‘‘SEC. 508. ELECTRONIC AND INFORMATION TECHNOLOGY.

‘‘(a) REQUIREMENTS FOR
AGENCIES.—
‘‘(1) ACCESSIBILITY.—
‘‘(A) DEVELOPMENT,

FEDERAL

DEPARTMENTS

AND

PROCUREMENT, MAINTENANCE, OR
USE OF ELECTRONIC AND INFORMATION TECHNOLOGY.—When

developing, procuring, maintaining, or using electronic and
information technology, each Federal department or
agency, including the United States Postal Service, shall
ensure, unless an undue burden would be imposed on the
department or agency, that the electronic and information
technology allows, regardless of the type of medium of
the technology—
‘‘(i) individuals with disabilities who are Federal
employees to have access to and use of information
and data that is comparable to the access to and use
of the information and data by Federal employees who
are not individuals with disabilities; and
‘‘(ii) individuals with disabilities who are members
of the public seeking information or services from a
Federal department or agency to have access to and
use of information and data that is comparable to
the access to and use of the information and data
by such members of the public who are not individuals
with disabilities.
‘‘(B) ALTERNATIVE MEANS EFFORTS.—When development, procurement, maintenance, or use of electronic and
information technology that meets the standards published
by the Access Board under paragraph (2) would impose

112 STAT. 1204

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PUBLIC LAW 105–220—AUG. 7, 1998
an undue burden, the Federal department or agency shall
provide individuals with disabilities covered by paragraph
(1) with the information and data involved by an alternative means of access that allows the individual to use
the information and data.
‘‘(2) ELECTRONIC AND INFORMATION TECHNOLOGY STANDARDS.—
‘‘(A) IN GENERAL.—Not later than 18 months after the
date of enactment of the Rehabilitation Act Amendments
of 1998, the Architectural and Transportation Barriers
Compliance Board (referred to in this section as the ‘Access
Board’), after consultation with the Secretary of Education,
the Administrator of General Services, the Secretary of
Commerce, the Chairman of the Federal Communications
Commission, the Secretary of Defense, and the head of
any other Federal department or agency that the Access
Board determines to be appropriate, including consultation
on relevant research findings, and after consultation with
the electronic and information technology industry and
appropriate public or nonprofit agencies or organizations,
including organizations representing individuals with
disabilities, shall issue and publish standards setting
forth—
‘‘(i) for purposes of this section, a definition of
electronic and information technology that is consistent
with the definition of information technology specified
in section 5002(3) of the Clinger-Cohen Act of 1996
(40 U.S.C. 1401(3)); and
‘‘(ii) the technical and functional performance criteria necessary to implement the requirements set
forth in paragraph (1).
‘‘(B) REVIEW AND AMENDMENT.—The Access Board shall
periodically review and, as appropriate, amend the standards required under subparagraph (A) to reflect technological advances or changes in electronic and information
technology.
‘‘(3) INCORPORATION OF STANDARDS.—Not later than 6
months after the Access Board publishes the standards required
under paragraph (2), the Federal Acquisition Regulatory Council shall revise the Federal Acquisition Regulation and each
Federal department or agency shall revise the Federal procurement policies and directives under the control of the department
or agency to incorporate those standards. Not later than 6
months after the Access Board revises any standards required
under paragraph (2), the Council shall revise the Federal
Acquisition Regulation and each appropriate Federal department or agency shall revise the procurement policies and directives, as necessary, to incorporate the revisions.
‘‘(4) ACQUISITION PLANNING.—In the event that a Federal
department or agency determines that compliance with the
standards issued by the Access Board under paragraph (2)
relating to procurement imposes an undue burden, the documentation by the department or agency supporting the procurement shall explain why compliance creates an undue burden.
‘‘(5) EXEMPTION FOR NATIONAL SECURITY SYSTEMS.—This
section shall not apply to national security systems, as that

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1205

term is defined in section 5142 of the Clinger-Cohen Act of
1996 (40 U.S.C. 1452).
‘‘(6) CONSTRUCTION.—
‘‘(A) EQUIPMENT.—In a case in which the Federal
Government provides access to the public to information
or data through electronic and information technology,
nothing in this section shall be construed to require a
Federal department or agency—
‘‘(i) to make equipment owned by the Federal
Government available for access and use by individuals
with disabilities covered by paragraph (1) at a location
other than that where the electronic and information
technology is provided to the public; or
‘‘(ii) to purchase equipment for access and use
by individuals with disabilities covered by paragraph
(1) at a location other than that where the electronic
and information technology is provided to the public.
‘‘(B) SOFTWARE AND PERIPHERAL DEVICES.—Except as
required to comply with standards issued by the Access
Board under paragraph (2), nothing in paragraph (1)
requires the installation of specific accessibility-related software or the attachment of a specific accessibility-related
peripheral device at a workstation of a Federal employee
who is not an individual with a disability.
‘‘(b) TECHNICAL ASSISTANCE.—The Administrator of General
Services and the Access Board shall provide technical assistance
to individuals and Federal departments and agencies concerning
the requirements of this section.
‘‘(c) AGENCY EVALUATIONS.—Not later than 6 months after the
date of enactment of the Rehabilitation Act Amendments of 1998,
the head of each Federal department or agency shall evaluate
the extent to which the electronic and information technology of
the department or agency is accessible to and usable by individuals
with disabilities described in subsection (a)(1), compared to the
access to and use of the technology by individuals described in
such subsection who are not individuals with disabilities, and submit a report containing the evaluation to the Attorney General.
‘‘(d) REPORTS.—
‘‘(1) INTERIM REPORT.—Not later than 18 months after the
date of enactment of the Rehabilitation Act Amendments of
1998, the Attorney General shall prepare and submit to the
President a report containing information on and recommendations regarding the extent to which the electronic and information technology of the Federal Government is accessible to
and usable by individuals with disabilities described in subsection (a)(1).
‘‘(2) BIENNIAL REPORTS.—Not later than 3 years after the
date of enactment of the Rehabilitation Act Amendments of
1998, and every 2 years thereafter, the Attorney General shall
prepare and submit to the President and Congress a report
containing information on and recommendations regarding the
state of Federal department and agency compliance with the
requirements of this section, including actions regarding
individual complaints under subsection (f ).
‘‘(e) COOPERATION.—Each head of a Federal department or
agency (including the Access Board, the Equal Employment Opportunity Commission, and the General Services Administration) shall

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112 STAT. 1206

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PUBLIC LAW 105–220—AUG. 7, 1998

provide to the Attorney General such information as the Attorney
General determines is necessary to conduct the evaluations under
subsection (c) and prepare the reports under subsection (d).
‘‘(f ) ENFORCEMENT.—
‘‘(1) GENERAL.—
‘‘(A) COMPLAINTS.—Effective 2 years after the date of
enactment of the Rehabilitation Act Amendments of 1998,
any individual with a disability may file a complaint alleging that a Federal department or agency fails to comply
with subsection (a)(1) in providing electronic and information technology.
‘‘(B) APPLICATION.—This subsection shall apply only
to electronic and information technology that is procured
by a Federal department or agency not less than 2 years
after the date of enactment of the Rehabilitation Act
Amendments of 1998.
‘‘(2) ADMINISTRATIVE COMPLAINTS.—Complaints filed under
paragraph (1) shall be filed with the Federal department or
agency alleged to be in noncompliance. The Federal department
or agency receiving the complaint shall apply the complaint
procedures established to implement section 504 for resolving
allegations of discrimination in a federally conducted program
or activity.
‘‘(3) CIVIL ACTIONS.—The remedies, procedures, and rights
set forth in sections 505(a)(2) and 505(b) shall be the remedies,
procedures, and rights available to any individual with a
disability filing a complaint under paragraph (1).
‘‘(g) APPLICATION TO OTHER FEDERAL LAWS.—This section shall
not be construed to limit any right, remedy, or procedure otherwise
available under any provision of Federal law (including sections
501 through 505) that provides greater or equal protection for
the rights of individuals with disabilities than this section.’’.
(c) PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.—Section
509 (29 U.S.C. 794e) is amended to read as follows:
‘‘SEC. 509. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

‘‘(a) PURPOSE AND CONSTRUCTION.—
‘‘(1) PURPOSE.—The purpose of this section is to support
a system in each State to protect the legal and human rights
of individuals with disabilities who—
‘‘(A) need services that are beyond the scope of services
authorized to be provided by the client assistance program
under section 112; and
‘‘(B)(i) are ineligible for protection and advocacy programs under part C of the Developmental Disabilities
Assistance and Bill of Rights Act (42 U.S.C. 6041 et seq.)
because the individuals do not have a developmental
disability, as defined in section 102 of such Act (42 U.S.C.
6002); and
‘‘(ii) are ineligible for services under the Protection
and Advocacy for Mentally Ill Individuals Act of 1986 (42
U.S.C. 10801 et seq.) because the individuals are not
individuals with mental illness, as defined in section 102
of such Act (42 U.S.C. 10802).
‘‘(2) CONSTRUCTION.—This section shall not be construed
to require the provision of protection and advocacy services
that can be provided under the Technology-Related Assistance

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112 STAT. 1207

for Individuals With Disabilities Act of 1988 (42 U.S.C. 2201
et seq.).
‘‘(b) APPROPRIATIONS LESS THAN $5,500,000.—For any fiscal
year in which the amount appropriated to carry out this section
is less than $5,500,000, the Commissioner may make grants from
such amount to eligible systems within States to plan for, develop
outreach strategies for, and carry out protection and advocacy programs authorized under this section for individuals with disabilities
who meet the requirements of subparagraphs (A) and (B) of subsection (a)(1).
‘‘(c) APPROPRIATIONS OF $5,500,000 OR MORE.—
‘‘(1) RESERVATIONS.—
‘‘(A) TECHNICAL ASSISTANCE.—For any fiscal year in
which the amount appropriated to carry out this section
equals or exceeds $5,500,000, the Commissioner shall set
aside not less than 1.8 percent and not more than 2.2
percent of the amount to provide training and technical
assistance to the systems established under this section.
‘‘(B) GRANT FOR THE ELIGIBLE SYSTEM SERVING THE
AMERICAN INDIAN CONSORTIUM.—For any fiscal year in
which the amount appropriated to carry out this section
equals or exceeds $10,500,000, the Commissioner shall
reserve a portion, and use the portion to make a grant
for the eligible system serving the American Indian consortium. The Commission shall make the grant in an amount
of not less than $50,000 for the fiscal year.
‘‘(2) ALLOTMENTS.—For any such fiscal year, after the reservations required by paragraph (1) have been made, the
Commissioner shall make allotments from the remainder of
such amount in accordance with paragraph (3) to eligible systems within States to enable such systems to carry out protection and advocacy programs authorized under this section for
individuals referred to in subsection (b).
‘‘(3) SYSTEMS WITHIN STATES.—
‘‘(A) POPULATION BASIS.—Except as provided in
subparagraph (B), from such remainder for each such fiscal
year, the Commissioner shall make an allotment to the
eligible system within a State of an amount bearing the
same ratio to such remainder as the population of the
State bears to the population of all States.
‘‘(B) MINIMUMS.—Subject to the availability of appropriations to carry out this section, and except as provided
in paragraph (4), the allotment to any system under
subparagraph (A) shall be not less than $100,000 or 1⁄3
of 1 percent of the remainder for the fiscal year for which
the allotment is made, whichever is greater, and the allotment to any system under this section for any fiscal year
that is less than $100,000 or 1⁄3 of 1 percent of such
remainder shall be increased to the greater of the two
amounts.
‘‘(4) SYSTEMS WITHIN OTHER JURISDICTIONS.—
‘‘(A) IN GENERAL.—For the purposes of paragraph
(3)(B), Guam, American Samoa, the United States Virgin
Islands, and the Commonwealth of the Northern Mariana
Islands shall not be considered to be States.
‘‘(B) ALLOTMENT.—The eligible system within a jurisdiction described in subparagraph (A) shall be allotted

112 STAT. 1208

PUBLIC LAW 105–220—AUG. 7, 1998

under paragraph (3)(A) not less than $50,000 for the fiscal
year for which the allotment is made.
‘‘(5) ADJUSTMENT FOR INFLATION.—For any fiscal year,
beginning in fiscal year 1999, in which the total amount appropriated to carry out this section exceeds the total amount
appropriated to carry out this section for the preceding fiscal
year, the Commissioner shall increase each of the minimum
grants or allotments under paragraphs (1)(B), (3)(B), and (4)(B)
by a percentage that shall not exceed the percentage increase
in the total amount appropriated to carry out this section
between the preceding fiscal year and the fiscal year involved.
‘‘(d) PROPORTIONAL REDUCTION.—To provide minimum allotments to systems within States (as increased under subsection
(c)(5)) under subsection (c)(3)(B), or to provide minimum allotments
to systems within States (as increased under subsection (c)(5))
under subsection (c)(4)(B), the Commissioner shall proportionately
reduce the allotments of the remaining systems within States under
subsection (c)(3), with such adjustments as may be necessary to
prevent the allotment of any such remaining system within a State
from being reduced to less than the minimum allotment for a
system within a State (as increased under subsection (c)(5)) under
subsection (c)(3)(B), or the minimum allotment for a State (as
increased under subsection (c)(5)) under subsection (c)(4)(B), as
appropriate.
‘‘(e) REALLOTMENT.—Whenever the Commissioner determines
that any amount of an allotment to a system within a State for
any fiscal year described in subsection (c)(1) will not be expended
by such system in carrying out the provisions of this section, the
Commissioner shall make such amount available for carrying out
the provisions of this section to one or more of the systems that
the Commissioner determines will be able to use additional amounts
during such year for carrying out such provisions. Any amount
made available to a system for any fiscal year pursuant to the
preceding sentence shall, for the purposes of this section, be
regarded as an increase in the allotment of the system (as determined under the preceding provisions of this section) for such
year.
‘‘(f ) APPLICATION.—In order to receive assistance under this
section, an eligible system shall submit an application to the
Commissioner, at such time, in such form and manner, and containing such information and assurances as the Commissioner determines necessary to meet the requirements of this section, including
assurances that the eligible system will—
‘‘(1) have in effect a system to protect and advocate the
rights of individuals with disabilities;
‘‘(2) have the same general authorities, including access
to records and program income, as are set forth in part C
of the Developmental Disabilities Assistance and Bill of Rights
Act (42 U.S.C. 6041 et seq.);
‘‘(3) have the authority to pursue legal, administrative,
and other appropriate remedies or approaches to ensure the
protection of, and advocacy for, the rights of such individuals
within the State or the American Indian consortium who are
individuals described in subsection (a)(1);
‘‘(4) provide information on and make referrals to programs
and services addressing the needs of individuals with disabilities in the State or the American Indian consortium;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1209

‘‘(5) develop a statement of objectives and priorities on
an annual basis, and provide to the public, including individuals
with disabilities and, as appropriate, the individuals’ representatives, an opportunity to comment on the objectives and priorities established by, and activities of, the system including—
‘‘(A) the objectives and priorities for the activities of
the system for each year and the rationale for the establishment of such objectives and priorities; and
‘‘(B) the coordination of programs provided through
the system under this section with the advocacy programs
of the client assistance program under section 112, the
State long-term care ombudsman program established
under the Older Americans Act of 1965 (42 U.S.C. 3001
et seq.), the Developmental Disabilities Assistance and Bill
of Rights Act (42 U.S.C. 6000 et seq.), and the Protection
and Advocacy for Mentally Ill Individuals Act of 1986 (42
U.S.C. 10801 et seq.);
‘‘(6) establish a grievance procedure for clients or prospective clients of the system to ensure that individuals with disabilities are afforded equal opportunity to access the services of
the system; and
‘‘(7) provide assurances to the Commissioner that funds
made available under this section will be used to supplement
and not supplant the non-Federal funds that would otherwise
be made available for the purpose for which Federal funds
are provided.
‘‘(g) CARRYOVER AND DIRECT PAYMENT.—
‘‘(1) DIRECT PAYMENT.—Notwithstanding any other provision of law, the Commissioner shall pay directly to any system
that complies with the provisions of this section, the amount
of the allotment of the State or the grant for the eligible
system that serves the American Indian consortium involved
under this section, unless the State or American Indian consortium provides otherwise.
‘‘(2) CARRYOVER.—Any amount paid to an eligible system
that serves a State or American Indian consortium for a fiscal
year that remains unobligated at the end of such year shall
remain available to such system that serves the State or American Indian consortium for obligation during the next fiscal
year for the purposes for which such amount was paid.
‘‘(h) LIMITATION ON DISCLOSURE REQUIREMENTS.—For purposes
of any audit, report, or evaluation of the performance of the program
established under this section, the Commissioner shall not require
such a program to disclose the identity of, or any other personally
identifiable information related to, any individual requesting assistance under such program.
‘‘(i) ADMINISTRATIVE COST.—In any State in which an eligible
system is located within a State agency, a State may use a portion
of any allotment under subsection (c) for the cost of the administration of the system required by this section. Such portion may
not exceed 5 percent of the allotment.
‘‘( j) DELEGATION.—The Commissioner may delegate the
administration of this program to the Commissioner of the Administration on Developmental Disabilities within the Department of
Health and Human Services.
‘‘(k) REPORT.—The Commissioner shall annually prepare and
submit to the Committee on Education and the Workforce of the

Procedures.

112 STAT. 1210

PUBLIC LAW 105–220—AUG. 7, 1998

House of Representatives and the Committee on Labor and Human
Resources of the Senate a report describing the types of services
and activities being undertaken by programs funded under this
section, the total number of individuals served under this section,
the types of disabilities represented by such individuals, and the
types of issues being addressed on behalf of such individuals.
‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section such sums as may
be necessary for each of the fiscal years 1999 through 2003.
‘‘(m) DEFINITIONS.—As used in this section:
‘‘(1) ELIGIBLE SYSTEM.—The term ‘eligible system’ means
a protection and advocacy system that is established under
part C of the Developmental Disabilities Assistance and Bill
of Rights Act (42 U.S.C. 6041 et seq.) and that meets the
requirements of subsection (f ).
‘‘(2) AMERICAN INDIAN CONSORTIUM.—The term ‘American
Indian consortium’ means a consortium established as described
in section 142 of the Developmental Disabilities Assistance
and Bill of Rights Act (42 U.S.C. 6042).’’.
SEC. 409. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH
DISABILITIES.

Title VI of the Rehabilitation Act of 1973 (29 U.S.C. 795 et
seq.) is amended to read as follows:
Employment
Opportunities for
Individuals With
Disabilities Act.

‘‘TITLE VI—EMPLOYMENT OPPORTUNITIES FOR
INDIVIDUALS WITH DISABILITIES

29 USC 701 note.

‘‘SEC. 601. This title may be cited as the ‘Employment
Opportunities for Individuals With Disabilities Act’.

‘‘SHORT

TITLE

‘‘PART A—PROJECTS WITH INDUSTRY
‘‘PROJECTS
29 USC 795.

WITH INDUSTRY

‘‘SEC. 611. (a)(1) The purpose of this part is to create and
expand job and career opportunities for individuals with disabilities
in the competitive labor market by engaging the talent and leadership of private industry as partners in the rehabilitation process,
to identify competitive job and career opportunities and the skills
needed to perform such jobs, to create practical job and career
readiness and training programs, and to provide job placements
and career advancement.
‘‘(2) The Commissioner, in consultation with the Secretary of
Labor and with designated State units, may award grants to individual employers, community rehabilitation program providers, labor
unions, trade associations, Indian tribes, tribal organizations, designated State units, and other entities to establish jointly financed
Projects With Industry to create and expand job and career
opportunities for individuals with disabilities, which projects shall—
‘‘(A) provide for the establishment of business advisory
councils, that shall—
‘‘(i) be comprised of—
‘‘(I) representatives of private industry, business
concerns, and organized labor;

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1211

‘‘(II) individuals with disabilities and representatives of individuals with disabilities; and
‘‘(III) a representative of the appropriate designated State unit;
‘‘(ii) identify job and career availability within the
community, consistent with the current and projected local
employment opportunities identified by the local workforce
investment board for the community under section
118(b)(1)(B) of the Workforce Investment Act of 1998;
‘‘(iii) identify the skills necessary to perform the jobs
and careers identified; and
‘‘(iv) prescribe training programs designed to develop
appropriate job and career skills, or job placement programs designed to identify and develop job placement and
career advancement opportunities, for individuals with
disabilities in fields related to the job and career availability identified under clause (ii);
‘‘(B) provide job development, job placement, and career
advancement services;
‘‘(C) to the extent appropriate, provide for—
‘‘(i) training in realistic work settings in order to prepare individuals with disabilities for employment and
career advancement in the competitive market; and
‘‘(ii) to the extent practicable, the modification of any
facilities or equipment of the employer involved that are
used primarily by individuals with disabilities, except that
a project shall not be required to provide for such modification if the modification is required as a reasonable
accommodation under the Americans with Disabilities Act
of 1990 (42 U.S.C. 12101 et seq.); and
‘‘(D) provide individuals with disabilities with such support
services as may be required in order to maintain the employment and career advancement for which the individuals have
received training under this part.
‘‘(3)(A) An individual shall be eligible for services described
in paragraph (2) if the individual is determined to be an individual
described in section 102(a)(1), and if the determination is made
in a manner consistent with section 102(a).
‘‘(B) Such a determination may be made by the recipient of
a grant under this part, to the extent the determination is appropriate and available and consistent with the requirements of section
102(a).
‘‘(4) The Commissioner shall enter into an agreement with
the grant recipient regarding the establishment of the project. Any
agreement shall be jointly developed by the Commissioner, the
grant recipient, and, to the extent practicable, the appropriate
designated State unit and the individuals with disabilities (or the
individuals’ representatives) involved. Such agreements shall
specify the terms of training and employment under the project,
provide for the payment by the Commissioner of part of the costs
of the project (in accordance with subsection (c)), and contain the
items required under subsection (b) and such other provisions as
the parties to the agreement consider to be appropriate.
‘‘(5) Any agreement shall include a description of a plan to
annually conduct a review and evaluation of the operation of the
project in accordance with standards developed by the Commissioner under subsection (d), and, in conducting the review and

Contracts.

112 STAT. 1212

Standards.

Grants.

PUBLIC LAW 105–220—AUG. 7, 1998

evaluation, to collect data and information of the type described
in subparagraphs (A) through (C) of section 101(a)(10), as determined to be appropriate by the Commissioner.
‘‘(6) The Commissioner may include, as part of agreements
with grant recipients, authority for such grant recipients to provide
technical assistance to—
‘‘(A) assist employers in hiring individuals with disabilities;
or
‘‘(B) improve or develop relationships between—
‘‘(i) grant recipients or prospective grant recipients;
and
‘‘(ii) employers or organized labor; or
‘‘(C) assist employers in understanding and meeting the
requirements of the Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.) as the Act relates to employment
of individuals with disabilities.
‘‘(b) No payment shall be made by the Commissioner under
any agreement with a grant recipient entered into under subsection
(a) unless such agreement—
‘‘(1) provides an assurance that individuals with disabilities
placed under such agreement shall receive at least the
applicable minimum wage;
‘‘(2) provides an assurance that any individual with a
disability placed under this part shall be afforded terms and
benefits of employment equal to terms and benefits that are
afforded to the similarly situated nondisabled co-workers of
the individual, and that such individuals with disabilities shall
not be segregated from their co-workers; and
‘‘(3) provides an assurance that an annual evaluation report
containing information specified under subsection (a)(5) shall
be submitted as determined to be appropriate by the Commissioner.
‘‘(c) Payments under this section with respect to any project
may not exceed 80 per centum of the costs of the project.
‘‘(d)(1) The Commissioner shall develop standards for the
evaluation described in subsection (a)(5) and shall review and revise
the evaluation standards as necessary, subject to paragraph (2).
‘‘(2) In revising the standards for evaluation to be used by
the grant recipients, the Commissioner shall obtain and consider
recommendations for such standards from State vocational
rehabilitation agencies, current and former grant recipients, professional organizations representing business and industry, organizations representing individuals with disabilities, individuals served
by grant recipients, organizations representing community
rehabilitation program providers, and labor organizations.
‘‘(e)(1)(A) A grant may be awarded under this section for a
period of up to 5 years and such grant may be renewed.
‘‘(B) Grants under this section shall be awarded on a competitive basis. To be eligible to receive such a grant, a prospective
grant recipient shall submit an application to the Commissioner
at such time, in such manner, and containing such information
as the Commissioner may require.
‘‘(2) The Commissioner shall, to the extent practicable, ensure
an equitable distribution of payments made under this section
among the States. To the extent funds are available, the Commissioner shall award grants under this section to new projects that
will serve individuals with disabilities in States, portions of States,

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1213

Indian tribes, or tribal organizations, that are currently unserved
or underserved by projects.
‘‘(f )(1) The Commissioner shall, as necessary, develop and
publish in the Federal Register, in final form, indicators of what
constitutes minimum compliance consistent with the evaluation
standards under subsection (d)(1).
‘‘(2) Each grant recipient shall report to the Commissioner
at the end of each project year the extent to which the grant
recipient is in compliance with the evaluation standards.
‘‘(3)(A) The Commissioner shall annually conduct onsite compliance reviews of at least 15 percent of grant recipients. The Commissioner shall select grant recipients for review on a random basis.
‘‘(B) The Commissioner shall use the indicators in determining
compliance with the evaluation standards.
‘‘(C) The Commissioner shall ensure that at least one member
of a team conducting such a review shall be an individual who—
‘‘(i) is not an employee of the Federal Government; and
‘‘(ii) has experience or expertise in conducting projects.
‘‘(D) The Commissioner shall ensure that—
‘‘(i) a representative of the appropriate designated State
unit shall participate in the review; and
‘‘(ii) no person shall participate in the review of a grant
recipient if—
‘‘(I) the grant recipient provides any direct financial
benefit to the reviewer; or
‘‘(II) participation in the review would give the appearance of a conflict of interest.
‘‘(4) In making a determination concerning any subsequent
grant under this section, the Commissioner shall consider the past
performance of the applicant, if applicable. The Commissioner shall
use compliance indicators developed under this subsection that
are consistent with program evaluation standards developed under
subsection (d) to assess minimum project performance for purposes
of making continuation awards in the third, fourth, and fifth years.
‘‘(5) Each fiscal year the Commissioner shall include in the
annual report to Congress required by section 13 an analysis of
the extent to which grant recipients have complied with the evaluation standards. The Commissioner may identify individual grant
recipients in the analysis. In addition, the Commissioner shall
report the results of onsite compliance reviews, identifying individual grant recipients.
‘‘(g) The Commissioner may provide, directly or by way of
grant, contract, or cooperative agreement, technical assistance to—
‘‘(1) entities conducting projects for the purpose of assisting
such entities in—
‘‘(A) the improvement of or the development of relationships with private industry or labor; or
‘‘(B) the improvement of relationships with State vocational rehabilitation agencies; and
‘‘(2) entities planning the development of new projects.
‘‘(h) As used in this section:
‘‘(1) The term ‘agreement’ means an agreement described
in subsection (a)(4).
‘‘(2) The term ‘project’ means a Project With Industry established under subsection (a)(2).
‘‘(3) The term ‘grant recipient’ means a recipient of a grant
under subsection (a)(2).

Federal Register,
publication.

Reports.

Reports.

112 STAT. 1214

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘AUTHORIZATION

29 USC 795a.

OF APPROPRIATIONS

‘‘SEC. 612. There are authorized to be appropriated to carry
out the provisions of this part, such sums as may be necessary
for each of fiscal years 1999 through 2003.
‘‘PART B—SUPPORTED EMPLOYMENT SERVICES FOR INDIVIDUALS
WITH THE MOST SIGNIFICANT DISABILITIES
‘‘PURPOSE

29 USC 795g.

‘‘SEC. 621. It is the purpose of this part to authorize allotments,
in addition to grants for vocational rehabilitation services under
title I, to assist States in developing collaborative programs with
appropriate entities to provide supported employment services for
individuals with the most significant disabilities to enable such
individuals to achieve the employment outcome of supported
employment.
‘‘ALLOTMENTS

29 USC 795h.

‘‘SEC. 622. (a) IN GENERAL.—
‘‘(1) STATES.—The Secretary shall allot the sums appropriated for each fiscal year to carry out this part among the
States on the basis of relative population of each State, except
that—
‘‘(A) no State shall receive less than $250,000, or 1⁄3
of 1 percent of the sums appropriated for the fiscal year
for which the allotment is made, whichever is greater;
and
‘‘(B) if the sums appropriated to carry out this part
for the fiscal year exceed by $1,000,000 or more the sums
appropriated to carry out this part in fiscal year 1992,
no State shall receive less than $300,000, or 1⁄3 of 1 percent
of the sums appropriated for the fiscal year for which
the allotment is made, whichever is greater.
‘‘(2) CERTAIN TERRITORIES.—
‘‘(A) IN GENERAL.—For the purposes of this subsection,
Guam, American Samoa, the United States Virgin Islands,
and the Commonwealth of the Northern Mariana Islands
shall not be considered to be States.
‘‘(B) ALLOTMENT.—Each jurisdiction described in
subparagraph (A) shall be allotted not less than one-eighth
of one percent of the amounts appropriated for the fiscal
year for which the allotment is made.
‘‘(b) REALLOTMENT.—Whenever the Commissioner determines
that any amount of an allotment to a State for any fiscal year
will not be expended by such State for carrying out the provisions
of this part, the Commissioner shall make such amount available
for carrying out the provisions of this part to one or more of
the States that the Commissioner determines will be able to use
additional amounts during such year for carrying out such provisions. Any amount made available to a State for any fiscal year
pursuant to the preceding sentence shall, for the purposes of this
section, be regarded as an increase in the allotment of the State
(as determined under the preceding provisions of this section) for
such year.

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘AVAILABILITY

112 STAT. 1215

OF SERVICES

‘‘SEC. 623. Funds provided under this part may be used to
provide supported employment services to individuals who are
eligible under this part. Funds provided under this part, or title
I, may not be used to provide extended services to individuals
who are eligible under this part or title I.

29 USC 795i.

‘‘ELIGIBILITY
‘‘SEC. 624. An individual shall be eligible under this part to
receive supported employment services authorized under this Act
if—
‘‘(1) the individual is eligible for vocational rehabilitation
services;
‘‘(2) the individual is determined to be an individual with
a most significant disability; and
‘‘(3) a comprehensive assessment of rehabilitation needs
of the individual described in section 7(2)(B), including an
evaluation of rehabilitation, career, and job needs, identifies
supported employment as the appropriate employment outcome
for the individual.
‘‘STATE

29 USC 795j.

PLAN

‘‘SEC. 625. (a) STATE PLAN SUPPLEMENTS.—To be eligible for
an allotment under this part, a State shall submit to the Commissioner, as part of the State plan under section 101, a State plan
supplement for providing supported employment services authorized
under this Act to individuals who are eligible under this Act to
receive the services. Each State shall make such annual revisions
in the plan supplement as may be necessary.
‘‘(b) CONTENTS.—Each such plan supplement shall—
‘‘(1) designate each designated State agency as the agency
to administer the program assisted under this part;
‘‘(2) summarize the results of the comprehensive, statewide
assessment conducted under section 101(a)(15)(A)(i), with
respect to the rehabilitation needs of individuals with significant disabilities and the need for supported employment services, including needs related to coordination;
‘‘(3) describe the quality, scope, and extent of supported
employment services authorized under this Act to be provided
to individuals who are eligible under this Act to receive the
services and specify the goals and plans of the State with
respect to the distribution of funds received under section 622;
‘‘(4) demonstrate evidence of the efforts of the designated
State agency to identify and make arrangements (including
entering into cooperative agreements) with other State agencies
and other appropriate entities to assist in the provision of
supported employment services;
‘‘(5) demonstrate evidence of the efforts of the designated
State agency to identify and make arrangements (including
entering into cooperative agreements) with other public or nonprofit agencies or organizations within the State, employers,
natural supports, and other entities with respect to the provision of extended services;
‘‘(6) provide assurances that—

29 USC 795k.

112 STAT. 1216

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(A) funds made available under this part will only
be used to provide supported employment services authorized under this Act to individuals who are eligible under
this part to receive the services;
‘‘(B) the comprehensive assessments of individuals with
significant disabilities conducted under section 102(b)(1)
and funded under title I will include consideration of supported employment as an appropriate employment outcome;
‘‘(C) an individualized plan for employment, as required
by section 102, will be developed and updated using funds
under title I in order to—
‘‘(i) specify the supported employment services to
be provided;
‘‘(ii) specify the expected extended services needed;
and
‘‘(iii) identify the source of extended services, which
may include natural supports, or to the extent that
it is not possible to identify the source of extended
services at the time the individualized plan for employment is developed, a statement describing the basis
for concluding that there is a reasonable expectation
that such sources will become available;
‘‘(D) the State will use funds provided under this part
only to supplement, and not supplant, the funds provided
under title I, in providing supported employment services
specified in the individualized plan for employment;
‘‘(E) services provided under an individualized plan
for employment will be coordinated with services provided
under other individualized plans established under other
Federal or State programs;
‘‘(F) to the extent jobs skills training is provided, the
training will be provided on site; and
‘‘(G) supported employment services will include placement in an integrated setting for the maximum number
of hours possible based on the unique strengths, resources,
priorities, concerns, abilities, capabilities, interests, and
informed choice of individuals with the most significant
disabilities;
‘‘(7) provide assurances that the State agencies designated
under paragraph (1) will expend not more than 5 percent of
the allotment of the State under this part for administrative
costs of carrying out this part; and
‘‘(8) contain such other information and be submitted in
such manner as the Commissioner may require.
‘‘RESTRICTION

29 USC 795l.

‘‘SEC. 626. Each State agency designated under section 625(b)(1)
shall collect the information required by section 101(a)(10) separately for eligible individuals receiving supported employment services under this part and for eligible individuals receiving supported
employment services under title I.
‘‘SAVINGS

29 USC 795m.

PROVISION

‘‘SEC. 627. (a) SUPPORTED EMPLOYMENT SERVICES.—Nothing
in this Act shall be construed to prohibit a State from providing
supported employment services in accordance with the State plan

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1217

submitted under section 101 by using funds made available through
a State allotment under section 110.
‘‘(b) POSTEMPLOYMENT SERVICES.—Nothing in this part shall
be construed to prohibit a State from providing discrete
postemployment services in accordance with the State plan submitted under section 101 by using funds made available through a
State allotment under section 110 to an individual who is eligible
under this part.
‘‘AUTHORIZATION

OF APPROPRIATIONS

‘‘SEC. 628. There are authorized to be appropriated to carry
out this part such sums as may be necessary for each of fiscal
years 1999 through 2003.’’.
SEC.

410.

INDEPENDENT LIVING SERVICES
INDEPENDENT LIVING.

AND

CENTERS

29 USC 795n.

FOR

Title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796
et seq.) is amended to read as follows:

‘‘TITLE
VII—INDEPENDENT
LIVING
SERVICES AND CENTERS FOR INDEPENDENT LIVING
‘‘CHAPTER 1—INDIVIDUALS WITH SIGNIFICANT
DISABILITIES

‘‘PART A—GENERAL PROVISIONS
‘‘SEC. 701. PURPOSE.

‘‘The purpose of this chapter is to promote a philosophy of
independent living, including a philosophy of consumer control,
peer support, self-help, self-determination, equal access, and
individual and system advocacy, in order to maximize the leadership, empowerment, independence, and productivity of individuals
with disabilities, and the integration and full inclusion of individuals with disabilities into the mainstream of American society,
by—
‘‘(1) providing financial assistance to States for providing,
expanding, and improving the provision of independent living
services;
‘‘(2) providing financial assistance to develop and support
statewide networks of centers for independent living; and
‘‘(3) providing financial assistance to States for improving
working relationships among State independent living
rehabilitation service programs, centers for independent living,
Statewide Independent Living Councils established under section 705, State vocational rehabilitation programs receiving
assistance under title I, State programs of supported employment services receiving assistance under part B of title VI,
client assistance programs receiving assistance under section
112, programs funded under other titles of this Act, programs
funded under other Federal law, and programs funded through
non-Federal sources.

29 USC 796.

112 STAT. 1218
29 USC 796a.

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘SEC. 702. DEFINITIONS.

‘‘As used in this chapter:
‘‘(1) CENTER FOR INDEPENDENT LIVING.—The term ‘center
for independent living’ means a consumer-controlled, community-based, cross-disability, nonresidential private nonprofit
agency that—
‘‘(A) is designed and operated within a local community
by individuals with disabilities; and
‘‘(B) provides an array of independent living services.
‘‘(2) CONSUMER CONTROL.—The term ‘consumer control’
means, with respect to a center for independent living, that
the center vests power and authority in individuals with disabilities.
29 USC 796b.

‘‘SEC. 703. ELIGIBILITY FOR RECEIPT OF SERVICES.

‘‘Services may be provided under this chapter to any individual
with a significant disability, as defined in section 7(21)(B).
29 USC 796c.

‘‘SEC. 704. STATE PLAN.

‘‘(a) IN GENERAL.—
‘‘(1) REQUIREMENT.—To be eligible to receive financial
assistance under this chapter, a State shall submit to the
Commissioner, and obtain approval of, a State plan containing
such provisions as the Commissioner may require, including,
at a minimum, the provisions required in this section.
‘‘(2) JOINT DEVELOPMENT.—The plan under paragraph (1)
shall be jointly developed and signed by—
‘‘(A) the director of the designated State unit; and
‘‘(B) the chairperson of the Statewide Independent Living Council, acting on behalf of and at the direction of
the Council.
‘‘(3) PERIODIC REVIEW AND REVISION.—The plan shall provide for the review and revision of the plan, not less than
once every 3 years, to ensure the existence of appropriate
planning, financial support and coordination, and other assistance to appropriately address, on a statewide and comprehensive basis, needs in the State for—
‘‘(A) the provision of State independent living services;
‘‘(B) the development and support of a statewide network of centers for independent living; and
‘‘(C) working relationships between—
‘‘(i) programs providing independent living services
and independent living centers; and
‘‘(ii) the vocational rehabilitation program established under title I, and other programs providing services for individuals with disabilities.
‘‘(4) DATE OF SUBMISSION.—The State shall submit the plan
to the Commissioner 90 days before the completion date of
the preceding plan. If a State fails to submit such a plan
that complies with the requirements of this section, the
Commissioner may withhold financial assistance under this
chapter until such time as the State submits such a plan.
‘‘(b) STATEWIDE INDEPENDENT LIVING COUNCIL.—The plan shall
provide for the establishment of a Statewide Independent Living
Council in accordance with section 705.

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1219

‘‘(c) DESIGNATION OF STATE UNIT.—The plan shall designate
the designated State unit of such State as the agency that, on
behalf of the State, shall—
‘‘(1) receive, account for, and disburse funds received by
the State under this chapter based on the plan;
‘‘(2) provide administrative support services for a program
under part B, and a program under part C in a case in which
the program is administered by the State under section 723;
‘‘(3) keep such records and afford such access to such
records as the Commissioner finds to be necessary with respect
to the programs; and
‘‘(4) submit such additional information or provide such
assurances as the Commissioner may require with respect to
the programs.
‘‘(d) OBJECTIVES.—The plan shall—
‘‘(1) specify the objectives to be achieved under the plan
and establish timelines for the achievement of the objectives;
and
‘‘(2) explain how such objectives are consistent with and
further the purpose of this chapter.
‘‘(e) INDEPENDENT LIVING SERVICES.—The plan shall provide
that the State will provide independent living services under this
chapter to individuals with significant disabilities, and will provide
the services to such an individual in accordance with an independent living plan mutually agreed upon by an appropriate staff member of the service provider and the individual, unless the individual
signs a waiver stating that such a plan is unnecessary.
‘‘(f ) SCOPE AND ARRANGEMENTS.—The plan shall describe the
extent and scope of independent living services to be provided
under this chapter to meet such objectives. If the State makes
arrangements, by grant or contract, for providing such services,
such arrangements shall be described in the plan.
‘‘(g) NETWORK.—The plan shall set forth a design for the
establishment of a statewide network of centers for independent
living that comply with the standards and assurances set forth
in section 725.
‘‘(h) CENTERS.—In States in which State funding for centers
for independent living equals or exceeds the amount of funds allotted to the State under part C, as provided in section 723, the
plan shall include policies, practices, and procedures governing
the awarding of grants to centers for independent living and oversight of such centers consistent with section 723.
‘‘(i) COOPERATION, COORDINATION, AND WORKING RELATIONSHIPS AMONG VARIOUS ENTITIES.—The plan shall set forth the
steps that will be taken to maximize the cooperation, coordination,
and working relationships among—
‘‘(1) the independent living rehabilitation service program,
the Statewide Independent Living Council, and centers for
independent living; and
‘‘(2) the designated State unit, other State agencies represented on such Council, other councils that address the needs
of specific disability populations and issues, and other public
and private entities determined to be appropriate by the Council.
‘‘( j) COORDINATION OF SERVICES.—The plan shall describe how
services funded under this chapter will be coordinated with, and

Records.

112 STAT. 1220

Notification.

Records.

Reports.

29 USC 796d.

PUBLIC LAW 105–220—AUG. 7, 1998

complement, other services, in order to avoid unnecessary duplication with other Federal, State, and local programs.
‘‘(k) COORDINATION BETWEEN FEDERAL AND STATE SOURCES.—
The plan shall describe efforts to coordinate Federal and State
funding for centers for independent living and independent living
services.
‘‘(l) OUTREACH.—With respect to services and centers funded
under this chapter, the plan shall set forth steps to be taken
regarding outreach to populations that are unserved or underserved
by programs under this title, including minority groups and urban
and rural populations.
‘‘(m) REQUIREMENTS.—The plan shall provide satisfactory assurances that all recipients of financial assistance under this chapter
will—
‘‘(1) notify all individuals seeking or receiving services
under this chapter about the availability of the client assistance
program under section 112, the purposes of the services provided under such program, and how to contact such program;
‘‘(2) take affirmative action to employ and advance in
employment qualified individuals with disabilities on the same
terms and conditions required with respect to the employment
of such individuals under the provisions of section 503;
‘‘(3) adopt such fiscal control and fund accounting procedures as may be necessary to ensure the proper disbursement
of and accounting for funds paid to the State under this chapter;
‘‘(4)(A) maintain records that fully disclose—
‘‘(i) the amount and disposition by such recipient of
the proceeds of such financial assistance;
‘‘(ii) the total cost of the project or undertaking in
connection with which such financial assistance is given
or used; and
‘‘(iii) the amount of that portion of the cost of the
project or undertaking supplied by other sources;
‘‘(B) maintain such other records as the Commissioner
determines to be appropriate to facilitate an effective audit;
‘‘(C) afford such access to records maintained under subparagraphs (A) and (B) as the Commissioner determines to
be appropriate; and
‘‘(D) submit such reports with respect to such records as
the Commissioner determines to be appropriate;
‘‘(5) provide access to the Commissioner and the Comptroller General or any of their duly authorized representatives,
for the purpose of conducting audits and examinations, of any
books, documents, papers, and records of the recipients that
are pertinent to the financial assistance received under this
chapter; and
‘‘(6) provide for public hearings regarding the contents of
the plan during both the formulation and review of the plan.
‘‘(n) EVALUATION.—The plan shall establish a method for the
periodic evaluation of the effectiveness of the plan in meeting the
objectives established in subsection (d), including evaluation of
satisfaction by individuals with disabilities.
‘‘SEC. 705. STATEWIDE INDEPENDENT LIVING COUNCIL.

‘‘(a) ESTABLISHMENT.—To be eligible to receive financial assistance under this chapter, each State shall establish a Statewide

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1221

Independent Living Council (referred to in this section as the ‘Council’). The Council shall not be established as an entity within a
State agency.
‘‘(b) COMPOSITION AND APPOINTMENT.—
‘‘(1) APPOINTMENT.—Members of the Council shall be
appointed by the Governor. The Governor shall select members
after soliciting recommendations from representatives of
organizations representing a broad range of individuals with
disabilities and organizations interested in individuals with
disabilities.
‘‘(2) COMPOSITION.—The Council shall include—
‘‘(A) at least one director of a center for independent
living chosen by the directors of centers for independent
living within the State;
‘‘(B) as ex officio, nonvoting members—
‘‘(i) a representative from the designated State
unit; and
‘‘(ii) representatives from other State agencies that
provide services for individuals with disabilities; and
‘‘(C) in a State in which one or more projects are
carried out under section 121, at least one representative
of the directors of the projects.
‘‘(3) ADDITIONAL MEMBERS.—The Council may include—
‘‘(A) other representatives from centers for independent
living;
‘‘(B) parents and guardians of individuals with disabilities;
‘‘(C) advocates of and for individuals with disabilities;
‘‘(D) representatives from private businesses;
‘‘(E) representatives from organizations that provide
services for individuals with disabilities; and
‘‘(F) other appropriate individuals.
‘‘(4) QUALIFICATIONS.—
‘‘(A) IN GENERAL.—The Council shall be composed of
members—
‘‘(i) who provide statewide representation;
‘‘(ii) who represent a broad range of individuals
with disabilities from diverse backgrounds;
‘‘(iii) who are knowledgeable about centers for
independent living and independent living services;
and
‘‘(iv) a majority of whom are persons who are—
‘‘(I) individuals with disabilities described in
section 7(20)(B); and
‘‘(II) not employed by any State agency or center for independent living.
‘‘(B) VOTING MEMBERS.—A majority of the voting members of the Council shall be—
‘‘(i) individuals with disabilities described in section 7(20)(B); and
‘‘(ii) not employed by any State agency or center
for independent living.
‘‘(5) CHAIRPERSON.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the Council shall select a chairperson from among
the voting membership of the Council.

112 STAT. 1222

Reports.
Records.

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(B) DESIGNATION BY GOVERNOR.—In States in which
the Governor does not have veto power pursuant to State
law, the Governor shall designate a voting member of the
Council to serve as the chairperson of the Council or shall
require the Council to so designate such a voting member.
‘‘(6) TERMS OF APPOINTMENT.—
‘‘(A) LENGTH OF TERM.—Each member of the Council
shall serve for a term of 3 years, except that—
‘‘(i) a member appointed to fill a vacancy occurring
prior to the expiration of the term for which a predecessor was appointed, shall be appointed for the
remainder of such term; and
‘‘(ii) the terms of service of the members initially
appointed shall be (as specified by the Governor) for
such fewer number of years as will provide for the
expiration of terms on a staggered basis.
‘‘(B) NUMBER OF TERMS.—No member of the Council
may serve more than two consecutive full terms.
‘‘(7) VACANCIES.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), any vacancy occurring in the membership of the Council shall be filled in the same manner as the original
appointment. The vacancy shall not affect the power of
the remaining members to execute the duties of the Council.
‘‘(B) DELEGATION.—The Governor may delegate the
authority to fill such a vacancy to the remaining voting
members of the Council after making the original appointment.
‘‘(c) DUTIES.—The Council shall—
‘‘(1) jointly develop and sign (in conjunction with the designated State unit) the State plan required in section 704;
‘‘(2) monitor, review, and evaluate the implementation of
the State plan;
‘‘(3) coordinate activities with the State Rehabilitation
Council established under section 105, if the State has such
a Council, or the commission described in section 101(a)(21)(A),
if the State has such a commission, and councils that address
the needs of specific disability populations and issues under
other Federal law;
‘‘(4) ensure that all regularly scheduled meetings of the
Statewide Independent Living Council are open to the public
and sufficient advance notice is provided; and
‘‘(5) submit to the Commissioner such periodic reports as
the Commissioner may reasonably request, and keep such
records, and afford such access to such records, as the Commissioner finds necessary to verify such reports.
‘‘(d) HEARINGS AND FORUMS.—The Council is authorized to hold
such hearings and forums as the Council may determine to be
necessary to carry out the duties of the Council.
‘‘(e) PLAN.—
‘‘(1) IN GENERAL.—The Council shall prepare, in conjunction
with the designated State unit, a plan for the provision of
such resources, including such staff and personnel, as may
be necessary and sufficient to carry out the functions of the
Council under this section, with funds made available under
this chapter, and under section 110 (consistent with section

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1223

101(a)(18)), and from other public and private sources. The
resource plan shall, to the maximum extent possible, rely on
the use of resources in existence during the period of
implementation of the plan.
‘‘(2) SUPERVISION AND EVALUATION.—Each Council shall,
consistent with State law, supervise and evaluate such staff
and other personnel as may be necessary to carry out the
functions of the Council under this section.
‘‘(3) CONFLICT OF INTEREST.—While assisting the Council
in carrying out its duties, staff and other personnel shall not
be assigned duties by the designated State agency or any other
agency or office of the State, that would create a conflict of
interest.
‘‘(f ) COMPENSATION AND EXPENSES.—The Council may use such
resources to reimburse members of the Council for reasonable and
necessary expenses of attending Council meetings and performing
Council duties (including child care and personal assistance services), and to pay compensation to a member of the Council, if
such member is not employed or must forfeit wages from other
employment, for each day the member is engaged in performing
Council duties.
‘‘SEC. 706. RESPONSIBILITIES OF THE COMMISSIONER.

‘‘(a) APPROVAL OF STATE PLANS.—
‘‘(1) IN GENERAL.—The Commissioner shall approve any
State plan submitted under section 704 that the Commissioner
determines meets the requirements of section 704, and shall
disapprove any such plan that does not meet such requirements,
as soon as practicable after receiving the plan. Prior to such
disapproval, the Commissioner shall notify the State of the
intention to disapprove the plan, and shall afford such State
reasonable notice and opportunity for a hearing.
‘‘(2) PROCEDURES.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), the provisions of subsections (c) and (d) of section
107 shall apply to any State plan submitted to the Commissioner under section 704.
‘‘(B) APPLICATION.—For purposes of the application
described in subparagraph (A), all references in such provisions—
‘‘(i) to the Secretary shall be deemed to be references to the Commissioner; and
‘‘(ii) to section 101 shall be deemed to be references
to section 704.
‘‘(b) INDICATORS.—Not later than October 1, 1993, the Commissioner shall develop and publish in the Federal Register indicators
of minimum compliance consistent with the standards set forth
in section 725.
‘‘(c) ONSITE COMPLIANCE REVIEWS.—
‘‘(1) REVIEWS.—The Commissioner shall annually conduct
onsite compliance reviews of at least 15 percent of the centers
for independent living that receive funds under section 722
and shall periodically conduct such a review of each such center.
The Commissioner shall annually conduct onsite compliance
reviews of at least one-third of the designated State units
that receive funding under section 723, and, to the extent
necessary to determine the compliance of such a State unit

29 USC 796d–1.

Notification.

112 STAT. 1224

PUBLIC LAW 105–220—AUG. 7, 1998

with subsections (f ) and (g) of section 723, centers that receive
funding under section 723 in such State. The Commissioner
shall select the centers and State units described in this paragraph for review on a random basis.
‘‘(2)
QUALIFICATIONS
OF
EMPLOYEES
CONDUCTING
REVIEWS.—The Commissioner shall—
‘‘(A) to the maximum extent practicable, carry out such
a review by using employees of the Department who are
knowledgeable about the provision of independent living
services;
‘‘(B) ensure that the employee of the Department with
responsibility for supervising such a review shall have such
knowledge; and
‘‘(C) ensure that at least one member of a team conducting such a review shall be an individual who—
‘‘(i) is not a government employee; and
‘‘(ii) has experience in the operation of centers
for independent living.
‘‘(d) REPORTS.—The Commissioner shall include, in the annual
report required under section 13, information on the extent to
which centers for independent living receiving funds under part
C have complied with the standards and assurances set forth in
section 725. The Commissioner may identify individual centers
for independent living in the analysis. The Commissioner shall
report the results of onsite compliance reviews, identifying individual centers for independent living and other recipients of assistance
under this chapter.

‘‘PART B—INDEPENDENT LIVING SERVICES
29 USC 796e.

‘‘SEC. 711. ALLOTMENTS.

‘‘(a) IN GENERAL.—
‘‘(1) STATES.—
‘‘(A) POPULATION BASIS.—Except as provided in subparagraphs (B) and (C), from sums appropriated for each
fiscal year to carry out this part, the Commissioner shall
make an allotment to each State whose State plan has
been approved under section 706 of an amount bearing
the same ratio to such sums as the population of the
State bears to the population of all States.
‘‘(B) MAINTENANCE OF 1992 AMOUNTS.—Subject to the
availability of appropriations to carry out this part, the
amount of any allotment made under subparagraph (A)
to a State for a fiscal year shall not be less than the
amount of an allotment made to the State for fiscal year
1992 under part A of this title, as in effect on the day
before the date of enactment of the Rehabilitation Act
Amendments of 1992.
‘‘(C) MINIMUMS.—Subject to the availability of appropriations to carry out this part, and except as provided
in subparagraph (B), the allotment to any State under
subparagraph (A) shall be not less than $275,000 or 1⁄3
of 1 percent of the sums made available for the fiscal
year for which the allotment is made, whichever is greater,
and the allotment of any State under this section for any
fiscal year that is less than $275,000 or 1⁄3 of 1 percent

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1225

of such sums shall be increased to the greater of the two
amounts.
‘‘(2) CERTAIN TERRITORIES.—
‘‘(A) IN GENERAL.—For the purposes of paragraph
(1)(C), Guam, American Samoa, the United States Virgin
Islands, and the Commonwealth of the Northern Mariana
Islands shall not be considered to be States.
‘‘(B) ALLOTMENT.—Each jurisdiction described in
subparagraph (A) shall be allotted under paragraph (1)(A)
not less than 1⁄8 of 1 percent of the amounts made available
for purposes of this part for the fiscal year for which
the allotment is made.
‘‘(3) ADJUSTMENT FOR INFLATION.—For any fiscal year,
beginning in fiscal year 1999, in which the total amount appropriated to carry out this part exceeds the total amount appropriated to carry out this part for the preceding fiscal year,
the Commissioner shall increase the minimum allotment under
paragraph (1)(C) by a percentage that shall not exceed the
percentage increase in the total amount appropriated to carry
out this part between the preceding fiscal year and the fiscal
year involved.
‘‘(b) PROPORTIONAL REDUCTION.—To provide allotments to
States in accordance with subsection (a)(1)(B), to provide minimum
allotments to States (as increased under subsection (a)(3)) under
subsection (a)(1)(C), or to provide minimum allotments to States
under subsection (a)(2)(B), the Commissioner shall proportionately
reduce the allotments of the remaining States under subsection
(a)(1)(A), with such adjustments as may be necessary to prevent
the allotment of any such remaining State from being reduced
to less than the amount required by subsection (a)(1)(B).
‘‘(c) REALLOTMENT.—Whenever the Commissioner determines
that any amount of an allotment to a State for any fiscal year
will not be expended by such State in carrying out the provisions
of this part, the Commissioner shall make such amount available
for carrying out the provisions of this part to one or more of
the States that the Commissioner determines will be able to use
additional amounts during such year for carrying out such provisions. Any amount made available to a State for any fiscal year
pursuant to the preceding sentence shall, for the purposes of this
section, be regarded as an increase in the allotment of the State
(as determined under the preceding provisions of this section) for
such year.
‘‘SEC. 712. PAYMENTS TO STATES FROM ALLOTMENTS.

‘‘(a) PAYMENTS.—From the allotment of each State for a fiscal
year under section 711, the State shall be paid the Federal share
of the expenditures incurred during such year under its State
plan approved under section 706. Such payments may be made
(after necessary adjustments on account of previously made overpayments or underpayments) in advance or by way of reimbursement,
and in such installments and on such conditions as the Commissioner may determine.
‘‘(b) FEDERAL SHARE.—
‘‘(1) IN GENERAL.—The Federal share with respect to any
State for any fiscal year shall be 90 percent of the expenditures
incurred by the State during such year under its State plan
approved under section 706.

29 USC 796e–1.

112 STAT. 1226

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(2) NON-FEDERAL SHARE.—The non-Federal share of the
cost of any project that receives assistance through an allotment
under this part may be provided in cash or in kind, fairly
evaluated, including plant, equipment, or services.

29 USC 796e–2.

‘‘SEC. 713. AUTHORIZED USES OF FUNDS.

‘‘The State may use funds received under this part to provide
the resources described in section 705(e), relating to the Statewide
Independent Living Council, and may use funds received under
this part—
‘‘(1) to provide independent living services to individuals
with significant disabilities;
‘‘(2) to demonstrate ways to expand and improve independent living services;
‘‘(3) to support the operation of centers for independent
living that are in compliance with the standards and assurances
set forth in subsections (b) and (c) of section 725;
‘‘(4) to support activities to increase the capacities of public
or nonprofit agencies and organizations and other entities to
develop comprehensive approaches or systems for providing
independent living services;
‘‘(5) to conduct studies and analyses, gather information,
develop model policies and procedures, and present information,
approaches, strategies, findings, conclusions, and recommendations to Federal, State, and local policymakers in order to
enhance independent living services for individuals with disabilities;
‘‘(6) to train individuals with disabilities and individuals
providing services to individuals with disabilities and other
persons regarding the independent living philosophy; and
‘‘(7) to provide outreach to populations that are unserved
or underserved by programs under this title, including minority
groups and urban and rural populations.
29 USC 796e–3.

‘‘SEC. 714. AUTHORIZATION OF APPROPRIATIONS.

‘‘There are authorized to be appropriated to carry out this
part such sums as may be necessary for each of the fiscal years
1999 through 2003.

‘‘PART C—CENTERS FOR INDEPENDENT
LIVING
29 USC 796f.

‘‘SEC. 721. PROGRAM AUTHORIZATION.

‘‘(a) IN GENERAL.—From the funds appropriated for fiscal year
1999 and for each subsequent fiscal year to carry out this part,
the Commissioner shall allot such sums as may be necessary to
States and other entities in accordance with subsections (b) through
(d).
‘‘(b) TRAINING.—
‘‘(1) GRANTS; CONTRACTS; OTHER ARRANGEMENTS.—For any
fiscal year in which the funds appropriated to carry out this
part exceed the funds appropriated to carry out this part for
fiscal year 1993, the Commissioner shall first reserve from
such excess, to provide training and technical assistance to
eligible agencies, centers for independent living, and Statewide
Independent Living Councils for such fiscal year, not less than

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1227

1.8 percent, and not more than 2 percent, of the funds appropriated to carry out this part for the fiscal year involved.
‘‘(2) ALLOCATION.—From the funds reserved under paragraph (1), the Commissioner shall make grants to, and enter
into contracts and other arrangements with, entities that have
experience in the operation of centers for independent living
to provide such training and technical assistance with respect
to planning, developing, conducting, administering, and
evaluating centers for independent living.
‘‘(3) FUNDING PRIORITIES.—The Commissioner shall conduct
a survey of Statewide Independent Living Councils and centers
for independent living regarding training and technical assistance needs in order to determine funding priorities for such
grants, contracts, and other arrangements.
‘‘(4) REVIEW.—To be eligible to receive a grant or enter
into a contract or other arrangement under this subsection,
such an entity shall submit an application to the Commissioner
at such time, in such manner, and containing a proposal to
provide such training and technical assistance, and containing
such additional information as the Commissioner may require.
The Commissioner shall provide for peer review of grant
applications by panels that include persons who are not government employees and who have experience in the operation
of centers for independent living.
‘‘(5) PROHIBITION ON COMBINED FUNDS.—No funds reserved
by the Commissioner under this subsection may be combined
with funds appropriated under any other Act or part of this
Act if the purpose of combining funds is to make a single
discretionary grant or a single discretionary payment, unless
such funds appropriated under this chapter are separately
identified in such grant or payment and are used for the purposes of this chapter.
‘‘(c) IN GENERAL.—
‘‘(1) STATES.—
‘‘(A) POPULATION BASIS.—After the reservation required
by subsection (b) has been made, and except as provided
in subparagraphs (B) and (C), from the remainder of the
amounts appropriated for each such fiscal year to carry
out this part, the Commissioner shall make an allotment
to each State whose State plan has been approved under
section 706 of an amount bearing the same ratio to such
remainder as the population of the State bears to the
population of all States.
‘‘(B) MAINTENANCE OF 1992 AMOUNTS.—Subject to the
availability of appropriations to carry out this part, the
amount of any allotment made under subparagraph (A)
to a State for a fiscal year shall not be less than the
amount of financial assistance received by centers for
independent living in the State for fiscal year 1992 under
part B of this title, as in effect on the day before the
date of enactment of the Rehabilitation Act Amendments
of 1992.
‘‘(C) MINIMUMS.—Subject to the availability of appropriations to carry out this part and except as provided
in subparagraph (B), for a fiscal year in which the amounts
appropriated to carry out this part exceed the amounts
appropriated for fiscal year 1992 to carry out part B of

112 STAT. 1228

PUBLIC LAW 105–220—AUG. 7, 1998

this title, as in effect on the day before the date of enactment of the Rehabilitation Act Amendments of 1992—
‘‘(i) if such excess is not less than $8,000,000,
the allotment to any State under subparagraph (A)
shall be not less than $450,000 or 1⁄3 of 1 percent
of the sums made available for the fiscal year for
which the allotment is made, whichever is greater,
and the allotment of any State under this section for
any fiscal year that is less than $450,000 or 1⁄3 of
1 percent of such sums shall be increased to the greater
of the 2 amounts;
‘‘(ii) if such excess is not less than $4,000,000
and is less than $8,000,000, the allotment to any State
under subparagraph (A) shall be not less than $400,000
or 1⁄3 of 1 percent of the sums made available for
the fiscal year for which the allotment is made, whichever is greater, and the allotment of any State under
this section for any fiscal year that is less than
$400,000 or 1⁄3 of 1 percent of such sums shall be
increased to the greater of the 2 amounts; and
‘‘(iii) if such excess is less than $4,000,000, the
allotment to any State under subparagraph (A) shall
approach, as nearly as possible, the greater of the
2 amounts described in clause (ii).
‘‘(2) CERTAIN TERRITORIES.—
‘‘(A) IN GENERAL.—For the purposes of paragraph
(1)(C), Guam, American Samoa, the United States Virgin
Islands, and the Commonwealth of the Northern Mariana
Islands shall not be considered to be States.
‘‘(B) ALLOTMENT.—Each jurisdiction described in
subparagraph (A) shall be allotted under paragraph (1)(A)
not less than 1⁄8 of 1 percent of the remainder for the
fiscal year for which the allotment is made.
‘‘(3) ADJUSTMENT FOR INFLATION.—For any fiscal year,
beginning in fiscal year 1999, in which the total amount appropriated to carry out this part exceeds the total amount appropriated to carry out this part for the preceding fiscal year,
the Commissioner shall increase the minimum allotment under
paragraph (1)(C) by a percentage that shall not exceed the
percentage increase in the total amount appropriated to carry
out this part between the preceding fiscal year and the fiscal
year involved.
‘‘(4) PROPORTIONAL REDUCTION.—To provide allotments to
States in accordance with paragraph (1)(B), to provide minimum
allotments to States (as increased under paragraph (3)) under
paragraph (1)(C), or to provide minimum allotments to States
under paragraph (2)(B), the Commissioner shall proportionately
reduce the allotments of the remaining States under paragraph
(1)(A), with such adjustments as may be necessary to prevent
the allotment of any such remaining State from being reduced
to less than the amount required by paragraph (1)(B).
‘‘(d) REALLOTMENT.—Whenever the Commissioner determines
that any amount of an allotment to a State for any fiscal year
will not be expended by such State for carrying out the provisions
of this part, the Commissioner shall make such amount available
for carrying out the provisions of this part to one or more of
the States that the Commissioner determines will be able to use

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1229

additional amounts during such year for carrying out such provisions. Any amount made available to a State for any fiscal year
pursuant to the preceding sentence shall, for the purposes of this
section, be regarded as an increase in the allotment of the State
(as determined under the preceding provisions of this section) for
such year.
‘‘SEC. 722. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES
IN WHICH FEDERAL FUNDING EXCEEDS STATE FUNDING.

‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—Unless the director of a designated State
unit awards grants under section 723 to eligible agencies in
a State for a fiscal year, the Commissioner shall award grants
under this section to such eligible agencies for such fiscal
year from the amount of funds allotted to the State under
subsection (c) or (d) of section 721 for such year.
‘‘(2) GRANTS.—The Commissioner shall award such grants,
from the amount of funds so allotted, to such eligible agencies
for the planning, conduct, administration, and evaluation of
centers for independent living that comply with the standards
and assurances set forth in section 725.
‘‘(b) ELIGIBLE AGENCIES.—In any State in which the Commissioner has approved the State plan required by section 704, the
Commissioner may make a grant under this section to any eligible
agency that—
‘‘(1) has the power and authority to carry out the purpose
of this part and perform the functions set forth in section
725 within a community and to receive and administer funds
under this part, funds and contributions from private or public
sources that may be used in support of a center for independent
living, and funds from other public and private programs;
‘‘(2) is determined by the Commissioner to be able to plan,
conduct, administer, and evaluate a center for independent
living consistent with the standards and assurances set forth
in section 725; and
‘‘(3) submits an application to the Commissioner at such
time, in such manner, and containing such information as
the Commissioner may require.
‘‘(c) EXISTING ELIGIBLE AGENCIES.—In the administration of
the provisions of this section, the Commissioner shall award grants
to any eligible agency that has been awarded a grant under this
part by September 30, 1997, unless the Commissioner makes a
finding that the agency involved fails to meet program and fiscal
standards and assurances set forth in section 725.
‘‘(d) NEW CENTERS FOR INDEPENDENT LIVING.—
‘‘(1) IN GENERAL.—If there is no center for independent
living serving a region of the State or a region is underserved,
and the increase in the allotment of the State is sufficient
to support an additional center for independent living in the
State, the Commissioner may award a grant under this section
to the most qualified applicant proposing to serve such region,
consistent with the provisions in the State plan setting forth
the design of the State for establishing a statewide network
of centers for independent living.
‘‘(2) SELECTION.—In selecting from among applicants for
a grant under this section for a new center for independent
living, the Commissioner—

29 USC 796f–1.

112 STAT. 1230

Notification.

Termination
date.

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(A) shall consider comments regarding the application,
if any, by the Statewide Independent Living Council in
the State in which the applicant is located;
‘‘(B) shall consider the ability of each such applicant
to operate a center for independent living based on—
‘‘(i) evidence of the need for such a center;
‘‘(ii) any past performance of such applicant in
providing services comparable to independent living
services;
‘‘(iii) the plan for satisfying or demonstrated success in satisfying the standards and the assurances
set forth in section 725;
‘‘(iv) the quality of key personnel and the involvement of individuals with significant disabilities;
‘‘(v) budgets and cost-effectiveness;
‘‘(vi) an evaluation plan; and
‘‘(vii) the ability of such applicant to carry out
the plans; and
‘‘(C) shall give priority to applications from applicants
proposing to serve geographic areas within each State that
are currently unserved or underserved by independent living programs, consistent with the provisions of the State
plan submitted under section 704 regarding establishment
of a statewide network of centers for independent living.
‘‘(3) CURRENT CENTERS.—Notwithstanding paragraphs (1)
and (2), a center for independent living that receives assistance
under part B for a fiscal year shall be eligible for a grant
for the subsequent fiscal year under this subsection.
‘‘(e) ORDER OF PRIORITIES.—The Commissioner shall be guided
by the following order of priorities in allocating funds among centers
for independent living within a State, to the extent funds are
available:
‘‘(1) The Commissioner shall support existing centers for
independent living, as described in subsection (c), that comply
with the standards and assurances set forth in section 725,
at the level of funding for the previous year.
‘‘(2) The Commissioner shall provide for a cost-of-living
increase for such existing centers for independent living.
‘‘(3) The Commissioner shall fund new centers for independent living, as described in subsection (d), that comply with
the standards and assurances set forth in section 725.
‘‘(f ) NONRESIDENTIAL AGENCIES.—A center that provides or
manages residential housing after October 1, 1994, shall not be
considered to be an eligible agency under this section.
‘‘(g) REVIEW.—
‘‘(1) IN GENERAL.—The Commissioner shall periodically
review each center receiving funds under this section to determine whether such center is in compliance with the standards
and assurances set forth in section 725. If the Commissioner
determines that any center receiving funds under this section
is not in compliance with the standards and assurances set
forth in section 725, the Commissioner shall immediately notify
such center that it is out of compliance.
‘‘(2) ENFORCEMENT.—The Commissioner shall terminate all
funds under this section to such center 90 days after the
date of such notification unless the center submits a plan

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112 STAT. 1231

to achieve compliance within 90 days of such notification and
such plan is approved by the Commissioner.
‘‘SEC. 723. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES
IN WHICH STATE FUNDING EQUALS OR EXCEEDS FEDERAL FUNDING.

‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—
‘‘(A) INITIAL YEAR.—
‘‘(i) DETERMINATION.—The director of a designated
State unit, as provided in paragraph (2), or the
Commissioner, as provided in paragraph (3), shall
award grants under this section for an initial fiscal
year if the Commissioner determines that the amount
of State funds that were earmarked by a State for
a preceding fiscal year to support the general operation
of centers for independent living meeting the requirements of this part equaled or exceeded the amount
of funds allotted to the State under subsection (c) or
(d) of section 721 for such year.
‘‘(ii) GRANTS.—The director or the Commissioner,
as appropriate, shall award such grants, from the
amount of funds so allotted for the initial fiscal year,
to eligible agencies in the State for the planning, conduct, administration, and evaluation of centers for
independent living that comply with the standards and
assurances set forth in section 725.
‘‘(iii) REGULATION.—The Commissioner shall by
regulation specify the preceding fiscal year with respect
to which the Commissioner will make the determinations described in clause (i) and subparagraph (B),
making such adjustments as may be necessary to
accommodate State funding cycles such as 2-year funding cycles or State fiscal years that do not coincide
with the Federal fiscal year.
‘‘(B) SUBSEQUENT YEARS.—For each year subsequent
to the initial fiscal year described in subparagraph (A),
the director of the designated State unit shall continue
to have the authority to award such grants under this
section if the Commissioner determines that the State
continues to earmark the amount of State funds described
in subparagraph (A)(i). If the State does not continue to
earmark such an amount for a fiscal year, the State shall
be ineligible to make grants under this section after a
final year following such fiscal year, as defined in accordance with regulations established by the Commissioner,
and for each subsequent fiscal year.
‘‘(2) GRANTS BY DESIGNATED STATE UNITS.—In order for
the designated State unit to be eligible to award the grants
described in paragraph (1) and carry out this section for a
fiscal year with respect to a State, the designated State agency
shall submit an application to the Commissioner at such time,
and in such manner as the Commissioner may require, including information about the amount of State funds described
in paragraph (1) for the preceding fiscal year. If the Commissioner makes a determination described in subparagraph (A)(i)
or (B), as appropriate, of paragraph (1), the Commissioner

29 USC 796f–2.

112 STAT. 1232

PUBLIC LAW 105–220—AUG. 7, 1998

shall approve the application and designate the director of
the designated State unit to award the grant and carry out
this section.
‘‘(3) GRANTS BY COMMISSIONER.—If the designated State
agency of a State described in paragraph (1) does not submit
and obtain approval of an application under paragraph (2),
the Commissioner shall award the grant described in paragraph
(1) to eligible agencies in the State in accordance with section
722.
‘‘(b) ELIGIBLE AGENCIES.—In any State in which the Commissioner has approved the State plan required by section 704, the
director of the designated State unit may award a grant under
this section to any eligible agency that—
‘‘(1) has the power and authority to carry out the purpose
of this part and perform the functions set forth in section
725 within a community and to receive and administer funds
under this part, funds and contributions from private or public
sources that may be used in support of a center for independent
living, and funds from other public and private programs;
‘‘(2) is determined by the director to be able to plan, conduct, administer, and evaluate a center for independent living,
consistent with the standards and assurances set forth in section 725; and
‘‘(3) submits an application to the director at such time,
in such manner, and containing such information as the head
of the designated State unit may require.
‘‘(c) EXISTING ELIGIBLE AGENCIES.—In the administration of
the provisions of this section, the director of the designated State
unit shall award grants under this section to any eligible agency
that has been awarded a grant under this part by September
30, 1997, unless the director makes a finding that the agency
involved fails to comply with the standards and assurances set
forth in section 725.
‘‘(d) NEW CENTERS FOR INDEPENDENT LIVING.—
‘‘(1) IN GENERAL.—If there is no center for independent
living serving a region of the State or the region is unserved
or underserved, and the increase in the allotment of the State
is sufficient to support an additional center for independent
living in the State, the director of the designated State unit
may award a grant under this section from among eligible
agencies, consistent with the provisions of the State plan under
section 704 setting forth the design of the State for establishing
a statewide network of centers for independent living.
‘‘(2) SELECTION.—In selecting from among eligible agencies
in awarding a grant under this part for a new center for
independent living—
‘‘(A) the director of the designated State unit and the
chairperson of, or other individual designated by, the Statewide Independent Living Council acting on behalf of and
at the direction of the Council, shall jointly appoint a
peer review committee that shall rank applications in
accordance with the standards and assurances set forth
in section 725 and criteria jointly established by such director and such chairperson or individual;

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112 STAT. 1233

‘‘(B) the peer review committee shall consider the ability of each such applicant to operate a center for independent living, and shall recommend an applicant to receive
a grant under this section, based on—
‘‘(i) evidence of the need for a center for independent living, consistent with the State plan;
‘‘(ii) any past performance of such applicant in
providing services comparable to independent living
services;
‘‘(iii) the plan for complying with, or demonstrated
success in complying with, the standards and the
assurances set forth in section 725;
‘‘(iv) the quality of key personnel of the applicant
and the involvement of individuals with significant
disabilities by the applicant;
‘‘(v) the budgets and cost-effectiveness of the
applicant;
‘‘(vi) the evaluation plan of the applicant; and
‘‘(vii) the ability of such applicant to carry out
the plans; and
‘‘(C) the director of the designated State unit shall
award the grant on the basis of the recommendations of
the peer review committee if the actions of the committee
are consistent with Federal and State law.
‘‘(3) CURRENT CENTERS.—Notwithstanding paragraphs (1)
and (2), a center for independent living that receives assistance
under part B for a fiscal year shall be eligible for a grant
for the subsequent fiscal year under this subsection.
‘‘(e) ORDER OF PRIORITIES.—Unless the director of the designated State unit and the chairperson of the Council or other
individual designated by the Council acting on behalf of and at
the direction of the Council jointly agree on another order of priority,
the director shall be guided by the following order of priorities
in allocating funds among centers for independent living within
a State, to the extent funds are available:
‘‘(1) The director of the designated State unit shall support
existing centers for independent living, as described in subsection (c), that comply with the standards and assurances
set forth in section 725, at the level of funding for the previous
year.
‘‘(2) The director of the designated State unit shall provide
for a cost-of-living increase for such existing centers for
independent living.
‘‘(3) The director of the designated State unit shall fund
new centers for independent living, as described in subsection
(d), that comply with the standards and assurances set forth
in section 725.
‘‘(f ) NONRESIDENTIAL AGENCIES.—A center that provides or
manages residential housing after October 1, 1994, shall not be
considered to be an eligible agency under this section.
‘‘(g) REVIEW.—
‘‘(1) IN GENERAL.—The director of the designated State
unit shall periodically review each center receiving funds under
this section to determine whether such center is in compliance
with the standards and assurances set forth in section 725.
If the director of the designated State unit determines that

112 STAT. 1234

PUBLIC LAW 105–220—AUG. 7, 1998

any center receiving funds under this section is not in compliance with the standards and assurances set forth in section
725, the director of the designated State unit shall immediately
notify such center that it is out of compliance.
‘‘(2) ENFORCEMENT.—The director of the designated State
unit shall terminate all funds under this section to such center
90 days after—
‘‘(A) the date of such notification; or
‘‘(B) in the case of a center that requests an appeal
under subsection (i), the date of any final decision under
subsection (i),
unless the center submits a plan to achieve compliance within
90 days and such plan is approved by the director, or if
appealed, by the Commissioner.
‘‘(h) ONSITE COMPLIANCE REVIEW.—The director of the designated State unit shall annually conduct onsite compliance reviews
of at least 15 percent of the centers for independent living that
receive funding under this section in the State. Each team that
conducts onsite compliance review of centers for independent living
shall include at least one person who is not an employee of the
designated State agency, who has experience in the operation of
centers for independent living, and who is jointly selected by the
director of the designated State unit and the chairperson of or
other individual designated by the Council acting on behalf of
and at the direction of the Council. A copy of this review shall
be provided to the Commissioner.
‘‘(i) ADVERSE ACTIONS.—If the director of the designated State
unit proposes to take a significant adverse action against a center
for independent living, the center may seek mediation and conciliation to be provided by an individual or individuals who are free
of conflicts of interest identified by the chairperson of or other
individual designated by the Council. If the issue is not resolved
through the mediation and conciliation, the center may appeal
the proposed adverse action to the Commissioner for a final decision.
29 USC 796f–3.

‘‘SEC. 724. CENTERS OPERATED BY STATE AGENCIES.

‘‘A State that receives assistance for fiscal year 1993 with
respect to a center in accordance with subsection (a) of this section
(as in effect on the day before the date of enactment of the
Rehabilitation Act Amendments of 1998) may continue to receive
assistance under this part for fiscal year 1994 or a succeeding
fiscal year if, for such fiscal year—
‘‘(1) no nonprofit private agency—
‘‘(A) submits an acceptable application to operate a
center for independent living for the fiscal year before
a date specified by the Commissioner; and
‘‘(B) obtains approval of the application under section
722 or 723; or
‘‘(2) after funding all applications so submitted and
approved, the Commissioner determines that funds remain
available to provide such assistance.
29 USC 796f–4.

‘‘SEC.

725.

STANDARDS AND ASSURANCES
INDEPENDENT LIVING.

FOR

CENTERS

FOR

‘‘(a) IN GENERAL.—Each center for independent living that
receives assistance under this part shall comply with the standards
set out in subsection (b) and provide and comply with the assurances
set out in subsection (c) in order to ensure that all programs

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1235

and activities under this part are planned, conducted, administered,
and evaluated in a manner consistent with the purposes of this
chapter and the objective of providing assistance effectively and
efficiently.
‘‘(b) STANDARDS.—
‘‘(1) PHILOSOPHY.—The center shall promote and practice
the independent living philosophy of—
‘‘(A) consumer control of the center regarding decisionmaking, service delivery, management, and establishment
of the policy and direction of the center;
‘‘(B) self-help and self-advocacy;
‘‘(C) development of peer relationships and peer role
models; and
‘‘(D) equal access of individuals with significant disabilities to society and to all services, programs, activities,
resources, and facilities, whether public or private and
regardless of the funding source.
‘‘(2) PROVISION OF SERVICES.—The center shall provide services to individuals with a range of significant disabilities. The
center shall provide services on a cross-disability basis (for
individuals with all different types of significant disabilities,
including individuals with significant disabilities who are members of populations that are unserved or underserved by programs under this title). Eligibility for services at any center
for independent living shall be determined by the center, and
shall not be based on the presence of any one or more specific
significant disabilities.
‘‘(3) INDEPENDENT LIVING GOALS.—The center shall facilitate the development and achievement of independent living
goals selected by individuals with significant disabilities who
seek such assistance by the center.
‘‘(4) COMMUNITY OPTIONS.—The center shall work to
increase the availability and improve the quality of community
options for independent living in order to facilitate the development and achievement of independent living goals by individuals with significant disabilities.
‘‘(5) INDEPENDENT LIVING CORE SERVICES.—The center shall
provide independent living core services and, as appropriate,
a combination of any other independent living services.
‘‘(6) ACTIVITIES TO INCREASE COMMUNITY CAPACITY.—The
center shall conduct activities to increase the capacity of
communities within the service area of the center to meet
the needs of individuals with significant disabilities.
‘‘(7) RESOURCE DEVELOPMENT ACTIVITIES.—The center shall
conduct resource development activities to obtain funding from
sources other than this chapter.
‘‘(c) ASSURANCES.—The eligible agency shall provide at such
time and in such manner as the Commissioner may require, such
satisfactory assurances as the Commissioner may require, including
satisfactory assurances that—
‘‘(1) the applicant is an eligible agency;
‘‘(2) the center will be designed and operated within local
communities by individuals with disabilities, including an
assurance that the center will have a Board that is the principal
governing body of the center and a majority of which shall
be composed of individuals with significant disabilities;

112 STAT. 1236

Reports.
Records.

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(3) the applicant will comply with the standards set forth
in subsection (b);
‘‘(4) the applicant will establish clear priorities through
annual and 3-year program and financial planning objectives
for the center, including overall goals or a mission for the
center, a work plan for achieving the goals or mission, specific
objectives, service priorities, and types of services to be provided, and a description that shall demonstrate how the proposed activities of the applicant are consistent with the most
recent 3-year State plan under section 704;
‘‘(5) the applicant will use sound organizational and personnel assignment practices, including taking affirmative action
to employ and advance in employment qualified individuals
with significant disabilities on the same terms and conditions
required with respect to the employment of individuals with
disabilities under section 503;
‘‘(6) the applicant will ensure that the majority of the
staff, and individuals in decisionmaking positions, of the
applicant are individuals with disabilities;
‘‘(7) the applicant will practice sound fiscal management,
including making arrangements for an annual independent fiscal audit, notwithstanding section 7502(a)(2)(A) of title 31,
United States Code;
‘‘(8) the applicant will conduct annual self-evaluations, prepare an annual report, and maintain records adequate to measure performance with respect to the standards, containing
information regarding, at a minimum—
‘‘(A) the extent to which the center is in compliance
with the standards;
‘‘(B) the number and types of individuals with significant disabilities receiving services through the center;
‘‘(C) the types of services provided through the center
and the number of individuals with significant disabilities
receiving each type of service;
‘‘(D) the sources and amounts of funding for the operation of the center;
‘‘(E) the number of individuals with significant disabilities who are employed by, and the number who are in
management and decisionmaking positions in, the center;
and
‘‘(F) a comparison, when appropriate, of the activities
of the center in prior years with the activities of the center
in the most recent year;
‘‘(9) individuals with significant disabilities who are seeking
or receiving services at the center will be notified by the center
of the existence of, the availability of, and how to contact,
the client assistance program;
‘‘(10) aggressive outreach regarding services provided
through the center will be conducted in an effort to reach
populations of individuals with significant disabilities that are
unserved or underserved by programs under this title, especially minority groups and urban and rural populations;
‘‘(11) staff at centers for independent living will receive
training on how to serve such unserved and underserved populations, including minority groups and urban and rural populations;

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112 STAT. 1237

‘‘(12) the center will submit to the Statewide Independent
Living Council a copy of its approved grant application and
the annual report required under paragraph (8);
‘‘(13) the center will prepare and submit a report to the
designated State unit or the Commissioner, as the case may
be, at the end of each fiscal year that contains the information
described in paragraph (8) and information regarding the extent
to which the center is in compliance with the standards set
forth in subsection (b); and
‘‘(14) an independent living plan described in section 704(e)
will be developed unless the individual who would receive services under the plan signs a waiver stating that such a plan
is unnecessary.
‘‘SEC. 726. DEFINITIONS.

Reports.

Reports.

29 USC 796f–5.

‘‘As used in this part, the term ‘eligible agency’ means a consumer-controlled, community-based, cross-disability, nonresidential
private nonprofit agency.
‘‘SEC. 727. AUTHORIZATION OF APPROPRIATIONS.

29 USC 796f–6.

‘‘There are authorized to be appropriated to carry out this
part such sums as may be necessary for each of the fiscal years
1999 through 2003.
‘‘CHAPTER 2—INDEPENDENT LIVING SERVICES FOR
OLDER INDIVIDUALS WHO ARE BLIND
‘‘SEC. 751. DEFINITION.

29 USC 796j.

‘‘For purposes of this chapter, the term ‘older individual who
is blind’ means an individual age 55 or older whose significant
visual impairment makes competitive employment extremely difficult to attain but for whom independent living goals are feasible.
‘‘SEC. 752. PROGRAM OF GRANTS.

‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY FOR GRANTS.—Subject to subsections (b)
and (c), the Commissioner may make grants to States for the
purpose of providing the services described in subsection (d)
to older individuals who are blind.
‘‘(2) DESIGNATED STATE AGENCY.—The Commissioner may
not make a grant under subsection (a) unless the State involved
agrees that the grant will be administered solely by the agency
described in section 101(a)(2)(A)(i).
‘‘(b) CONTINGENT COMPETITIVE GRANTS.—Beginning with fiscal
year 1993, in the case of any fiscal year for which the amount
appropriated under section 753 is less than $13,000,000, grants
made under subsection (a) shall be—
‘‘(1) discretionary grants made on a competitive basis to
States; or
‘‘(2) grants made on a noncompetitive basis to pay for
the continuation costs of activities for which a grant was
awarded—
‘‘(A) under this chapter; or
‘‘(B) under part C, as in effect on the day before the
date of enactment of the Rehabilitation Act Amendments
of 1992.
‘‘(c) CONTINGENT FORMULA GRANTS.—

29 USC 796k.

112 STAT. 1238

PUBLIC LAW 105–220—AUG. 7, 1998

‘‘(1) IN GENERAL.—In the case of any fiscal year for which
the amount appropriated under section 753 is equal to or
greater than $13,000,000, grants under subsection (a) shall
be made only to States and shall be made only from allotments
under paragraph (2).
‘‘(2) ALLOTMENTS.—For grants under subsection (a) for a
fiscal year described in paragraph (1), the Commissioner shall
make an allotment to each State in an amount determined
in accordance with subsection ( j), and shall make a grant
to the State of the allotment made for the State if the State
submits to the Commissioner an application in accordance with
subsection (i).
‘‘(d) SERVICES GENERALLY.—The Commissioner may not make
a grant under subsection (a) unless the State involved agrees that
the grant will be expended only for purposes of—
‘‘(1) providing independent living services to older individuals who are blind;
‘‘(2) conducting activities that will improve or expand
services for such individuals; and
‘‘(3) conducting activities to help improve public understanding of the problems of such individuals.
‘‘(e) INDEPENDENT LIVING SERVICES.—Independent living
services for purposes of subsection (d)(1) include—
‘‘(1) services to help correct blindness, such as—
‘‘(A) outreach services;
‘‘(B) visual screening;
‘‘(C) surgical or therapeutic treatment to prevent,
correct, or modify disabling eye conditions; and
‘‘(D) hospitalization related to such services;
‘‘(2) the provision of eyeglasses and other visual aids;
‘‘(3) the provision of services and equipment to assist an
older individual who is blind to become more mobile and more
self-sufficient;
‘‘(4) mobility training, braille instruction, and other services
and equipment to help an older individual who is blind adjust
to blindness;
‘‘(5) guide services, reader services, and transportation;
‘‘(6) any other appropriate service designed to assist an
older individual who is blind in coping with daily living activities, including supportive services and rehabilitation teaching
services;
‘‘(7) independent living skills training, information and
referral services, peer counseling, and individual advocacy
training; and
‘‘(8) other independent living services.
‘‘(f ) MATCHING FUNDS.—
‘‘(1) IN GENERAL.—The Commissioner may not make a grant
under subsection (a) unless the State involved agrees, with
respect to the costs of the program to be carried out by the
State pursuant to such subsection, to make available (directly
or through donations from public or private entities) non-Federal contributions toward such costs in an amount that is
not less than $1 for each $9 of Federal funds provided in
the grant.
‘‘(2) DETERMINATION OF AMOUNT CONTRIBUTED.—Non-Federal contributions required in paragraph (1) may be in cash
or in kind, fairly evaluated, including plant, equipment, or

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1239

services. Amounts provided by the Federal Government, or
services assisted or subsidized to any significant extent by
the Federal Government, may not be included in determining
the amount of such non-Federal contributions.
‘‘(g) CERTAIN EXPENDITURES OF GRANTS.—A State may expend
a grant under subsection (a) to carry out the purposes specified
in subsection (d) through grants to public and nonprofit private
agencies or organizations.
‘‘(h) REQUIREMENT REGARDING STATE PLAN.—The Commissioner may not make a grant under subsection (a) unless the
State involved agrees that, in carrying out subsection (d)(1), the
State will seek to incorporate into the State plan under section
704 any new methods and approaches relating to independent living
services for older individuals who are blind.
‘‘(i) APPLICATION FOR GRANT.—
‘‘(1) IN GENERAL.—The Commissioner may not make a grant
under subsection (a) unless an application for the grant is
submitted to the Commissioner and the application is in such
form, is made in such manner, and contains such agreements,
assurances, and information as the Commissioner determines
to be necessary to carry out this section (including agreements,
assurances, and information with respect to any grants under
subsection ( j)(4)).
‘‘(2) CONTENTS.—An application for a grant under this section shall contain—
‘‘(A) an assurance that the agency described in subsection (a)(2) will prepare and submit to the Commissioner
a report, at the end of each fiscal year, with respect to
each project or program the agency operates or administers
under this section, whether directly or through a grant
or contract, which report shall contain, at a minimum,
information on—
‘‘(i) the number and types of older individuals who
are blind and are receiving services;
‘‘(ii) the types of services provided and the number
of older individuals who are blind and are receiving
each type of service;
‘‘(iii) the sources and amounts of funding for the
operation of each project or program;
‘‘(iv) the amounts and percentages of resources
committed to each type of service provided;
‘‘(v) data on actions taken to employ, and advance
in employment, qualified individuals with significant
disabilities, including older individuals who are blind;
and
‘‘(vi) a comparison, if appropriate, of prior year
activities with the activities of the most recent year;
‘‘(B) an assurance that the agency will—
‘‘(i) provide services that contribute to the maintenance of, or the increased independence of, older
individuals who are blind; and
‘‘(ii) engage in—
‘‘(I) capacity-building activities, including
collaboration with other agencies and organizations;
‘‘(II) activities to promote community awareness, involvement, and assistance; and

112 STAT. 1240

PUBLIC LAW 105–220—AUG. 7, 1998
‘‘(III) outreach efforts; and
‘‘(C) an assurance that the application is consistent
with the State plan for providing independent living services required by section 704.
‘‘( j) AMOUNT OF FORMULA GRANT.—
‘‘(1) IN GENERAL.—Subject to the availability of appropriations, the amount of an allotment under subsection (a) for
a State for a fiscal year shall be the greater of—
‘‘(A) the amount determined under paragraph (2); or
‘‘(B) the amount determined under paragraph (3).
‘‘(2) MINIMUM ALLOTMENT.—
‘‘(A) STATES.—In the case of the several States, the
District of Columbia, and the Commonwealth of Puerto
Rico, the amount referred to in subparagraph (A) of paragraph (1) for a fiscal year is the greater of—
‘‘(i) $225,000; or
‘‘(ii) an amount equal to 1⁄3 of 1 percent of the
amount appropriated under section 753 for the fiscal
year and available for allotments under subsection (a).
‘‘(B) CERTAIN TERRITORIES.—In the case of Guam,
American Samoa, the United States Virgin Islands, and
the Commonwealth of the Northern Mariana Islands, the
amount referred to in subparagraph (A) of paragraph (1)
for a fiscal year is $40,000.
‘‘(3) FORMULA.—The amount referred to in subparagraph
(B) of paragraph (1) for a State for a fiscal year is the product
of—
‘‘(A) the amount appropriated under section 753 and
available for allotments under subsection (a); and
‘‘(B) a percentage equal to the quotient of—
‘‘(i) an amount equal to the number of individuals
residing in the State who are not less than 55 years
of age; divided by
‘‘(ii) an amount equal to the number of individuals
residing in the United States who are not less than
55 years of age.
‘‘(4) DISPOSITION OF CERTAIN AMOUNTS.—
‘‘(A) GRANTS.—From the amounts specified in subparagraph (B), the Commissioner may make grants to States
whose population of older individuals who are blind has
a substantial need for the services specified in subsection
(d) relative to the populations in other States of older
individuals who are blind.
‘‘(B) AMOUNTS.—The amounts referred to in subparagraph (A) are any amounts that are not paid to States
under subsection (a) as a result of—
‘‘(i) the failure of any State to submit an application under subsection (i);
‘‘(ii) the failure of any State to prepare within
a reasonable period of time such application in compliance with such subsection; or
‘‘(iii) any State informing the Commissioner that
the State does not intend to expend the full amount
of the allotment made for the State under subsection
(a).
‘‘(C) CONDITIONS.—The Commissioner may not make
a grant under subparagraph (A) unless the State involved

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112 STAT. 1241

agrees that the grant is subject to the same conditions
as grants made under subsection (a).
‘‘SEC. 753. AUTHORIZATION OF APPROPRIATIONS.

29 USC 796l.

‘‘There are authorized to be appropriated to carry out this
chapter such sums as may be necessary for each of the fiscal
years 1999 through 2003.’’.
SEC. 411. REPEAL.

Title VIII of the Rehabilitation Act of 1973 (29 U.S.C. 797
et seq.) is repealed.
SEC. 412. HELEN KELLER NATIONAL CENTER ACT.

(a) GENERAL AUTHORIZATION OF APPROPRIATIONS.—The first
sentence of section 205(a) of the Helen Keller National Center
Act (29 U.S.C. 1904(a)) is amended by striking ‘‘1993 through 1997’’
and inserting ‘‘1999 through 2003’’.
(b) HELEN KELLER NATIONAL CENTER FEDERAL ENDOWMENT
FUND.—The first sentence of section 208(h) of such Act (29 U.S.C.
1907(h)) is amended by striking ‘‘1993 through 1997’’ and inserting
‘‘1999 through 2003’’.
(c) REGISTRY.—Such Act (29 U.S.C. 1901 et seq.) is amended
by adding at the end the following:
‘‘SEC. 209. REGISTRY.

‘‘(a) IN GENERAL.—To assist the Center in providing services
to individuals who are deaf-blind, the Center may establish and
maintain registries of such individuals in each of the regional
field offices of the network of the Center.
‘‘(b) VOLUNTARY PROVISION OF INFORMATION.—No individual
who is deaf-blind may be required to provide information to the
Center for any purpose with respect to a registry established under
subsection (a).
‘‘(c) NONDISCLOSURE.—The Center (including the network of
the Center) may not disclose information contained in a registry
established under subsection (a) to any individual or organization
that is not affiliated with the Center, unless the individual to
whom the information relates provides specific written authorization for the Center to disclose the information.
‘‘(d) PRIVACY RIGHTS.—The requirements of section 552a of
title 5, United States Code (commonly known as the ‘Privacy Act
of 1974’) shall apply to personally identifiable information contained
in the registries established by the Center under subsection (a),
in the same manner and to the same extent as such requirements
apply to a record of an agency.
‘‘(e) REMOVAL OF INFORMATION.—On the request of an individual, the Center shall remove all information relating to the individual from any registry established under subsection (a).’’.
SEC. 413. PRESIDENT’S COMMITTEE ON EMPLOYMENT OF PEOPLE
WITH DISABILITIES.

Section 2(2) of the joint resolution approved July 11, 1949
(63 Stat. 409, chapter 302; 36 U.S.C. 155b(2)) is amended by inserting ‘‘solicit,’’ before ‘‘accept,’’.
SEC. 414. CONFORMING AMENDMENTS.

(a) RANDOLPH-SHEPPARD ACT.—Section 2(e) of the Act of June
20, 1936 (commonly known as the ‘‘Randolph-Sheppard Act’’) (49

29 USC 1908.

Applicability.

112 STAT. 1242

PUBLIC LAW 105–220—AUG. 7, 1998

Stat. 1559, chapter 638; 20 U.S.C. 107a(e)) is amended by striking
‘‘section 101(a)(1)(A)’’ and inserting ‘‘section 101(a)(2)(A)’’.
(b) TECHNOLOGY-RELATED ASSISTANCE FOR INDIVIDUALS WITH
DISABILITIES ACT OF 1988.—
(1) Section 101(b) of the Technology-Related Assistance
for Individuals With Disabilities Act of 1988 (29 U.S.C. 2211(b))
is amended—
(A) in paragraph (7)(A)(ii)(II), by striking ‘‘individualized written rehabilitation program’’ and inserting ‘‘individualized plan for employment’’; and
(B) in paragraph (9)(B), by striking ‘‘(as defined in
section 7(25) of such Act (29 U.S.C. 706(25)))’’ and inserting
‘‘(as defined in section 7 of such Act)’’.
(2) Section 102(e)(23)(A) of such Act (29 U.S.C.
2212(e)(23)(A)) is amended by striking ‘‘the assurance provided
by the State in accordance with section 101(a)(36) of the
Rehabilitation Act of 1973 (29 U.S.C. 721(a)(36))’’ and inserting
‘‘the portion of the State plan provided by the State in accordance with section 101(a)(21) of the Rehabilitation Act of 1973’’.
(c) TITLE 38, UNITED STATES CODE.—Sections 3904(b) and
7303(b) of title 38, United States Code, are amended by striking
‘‘section 204(b)(2) of the Rehabilitation Act of 1973 (29 U.S.C.
762(b)(2)) (relating to the establishment and support of Rehabilitation Engineering Research Centers)’’ and inserting ‘‘section 204(b)(3)
of the Rehabilitation Act of 1973 (relating to the establishment
and support of Rehabilitation Engineering Research Centers)’’.
(d) NATIONAL SCHOOL LUNCH ACT.—Section 27(a)(1)(B) of the
National School Lunch Act (42 U.S.C. 1769h(a)(1)(B)) is amended
by striking ‘‘section 7(8) of the Rehabilitation Act of 1973 (29
U.S.C. 706(8))’’ and inserting ‘‘section 7 of the Rehabilitation Act
of 1973’’.
(e) DOMESTIC VOLUNTEER SERVICE ACT OF 1973.—Section
421(11) of the Domestic Volunteer Service Act of 1973 (42 U.S.C.
5061(11)) is amended by striking ‘‘section 7(8)(B) of the Rehabilitation Act of 1973 (29 U.S.C. 706(8)(B))’’ and inserting ‘‘section
7(20)(B) of the Rehabilitation Act of 1973’’.
(f ) ENERGY CONSERVATION AND PRODUCTION ACT.—Section
412(5) of the Energy Conservation and Production Act (42 U.S.C.
6862(5)) is amended by striking ‘‘a handicapped individual as
defined in section 7(7) of the Rehabilitation Act of 1973’’ and inserting ‘‘an individual with a disability, as defined in section 7 of
the Rehabilitation Act of 1973’’.
(g) NATIONAL AND COMMUNITY SERVICE ACT OF 1990.—Section
101(12) of the National and Community Service Act of 1990 (42
U.S.C. 12511(12)) is amended by striking ‘‘section 7(8)(B) of the
Rehabilitation Act of 1973 (29 U.S.C. 706(8)(B))’’ and inserting
‘‘section 7(20)(B) of the Rehabilitation Act of 1973’’.

TITLE V—GENERAL PROVISIONS
20 USC 9271.

SEC. 501. STATE UNIFIED PLAN.

(a) DEFINITION OF APPROPRIATE SECRETARY.—In this section,
the term ‘‘appropriate Secretary’’ means the head of the Federal
agency who exercises administrative authority over an activity or
program described in subsection (b).
(b) STATE UNIFIED PLAN.—

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1243

(1) IN GENERAL.—A State may develop and submit to the
appropriate Secretaries a State unified plan for 2 or more
of the activities or programs set forth in paragraph (2), except
that the State may include in the plan the activities described
in paragraph (2)(A) only with the prior approval of the legislature of the State. The State unified plan shall cover one or
more of the activities set forth in subparagraphs (A) through
(D) of paragraph (2) and may cover one or more of the activities
set forth in subparagraphs (E) through (O) of paragraph (2).
(2) ACTIVITIES.—The activities and programs referred to
in paragraph (1) are as follows:
(A) Secondary vocational education programs authorized under the Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2301 et seq.).
(B) Postsecondary vocational education programs
authorized under the Carl D. Perkins Vocational and
Applied Technology Education Act (20 U.S.C. 2301 et seq.).
(C) Activities authorized under title I.
(D) Activities authorized under title II.
(E) Programs authorized under section 6(d) of the Food
Stamp Act of 1977 (7 U.S.C. 2015(d)).
(F) Work programs authorized under section 6(o) of
the Food Stamp Act of 1977 (7 U.S.C. 2015(o)).
(G) Activities authorized under chapter 2 of title II
of the Trade Act of 1974 (19 U.S.C. 2271 et seq.).
(H) Programs authorized under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.).
(I) Programs authorized under title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), other than section
112 of such Act (29 U.S.C. 732).
(J) Activities authorized under chapter 41 of title 38,
United States Code.
(K) Programs authorized under State unemployment
compensation laws (in accordance with applicable Federal
law).
(L) Programs authorized under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.).
(M) Programs authorized under title V of the Older
Americans Act of 1965 (42 U.S.C. 3056 et seq.).
(N) Training activities carried out by the Department
of Housing and Urban Development.
(O) Programs authorized under the Community Services Block Grant Act (42 U.S.C. 9901 et seq.).
(c) REQUIREMENTS.—
(1) IN GENERAL.—The portion of a State unified plan covering an activity or program described in subsection (b) shall
be subject to the requirements, if any, applicable to a plan
or application for assistance under the Federal statute authorizing the activity or program.
(2) ADDITIONAL SUBMISSION NOT REQUIRED.—A State that
submits a State unified plan covering an activity or program
described in subsection (b) that is approved under subsection
(d) shall not be required to submit any other plan or application
in order to receive Federal funds to carry out the activity
or program.
(3) COORDINATION.—A State unified plan shall include—

112 STAT. 1244

PUBLIC LAW 105–220—AUG. 7, 1998
(A) a description of the methods used for joint planning
and coordination of the programs and activities included
in the unified plan; and
(B) an assurance that the methods included an opportunity for the entities responsible for planning or administering such programs and activities to review and comment on all portions of the unified plan.
(d) APPROVAL BY THE APPROPRIATE SECRETARIES.—
(1) JURISDICTION.—The appropriate Secretary shall have
the authority to approve the portion of the State unified plan
relating to the activity or program over which the appropriate
Secretary exercises administrative authority. On the approval
of the appropriate Secretary, the portion of the plan relating
to the activity or program shall be implemented by the State
pursuant to the applicable portion of the State unified plan.
(2) APPROVAL.—
(A) IN GENERAL.—A portion of the State unified plan
covering an activity or program described in subsection
(b) that is submitted to the appropriate Secretary under
this section shall be considered to be approved by the
appropriate Secretary at the end of the 90-day period beginning on the day the appropriate Secretary receives the
portion, unless the appropriate Secretary makes a written
determination, during the 90-day period, that the portion
is not consistent with the requirements of the Federal
statute authorizing the activity or program including the
criteria for approval of a plan or application, if any, under
such statute or the plan is not consistent with the requirements of subsection (c)(3).
(B) SPECIAL RULE.—In subparagraph (A), the term ‘‘criteria for approval of a State plan’’, relating to activities
carried out under title I or II or under the Carl D. Perkins
Vocational and Applied Technology Education Act (20
U.S.C. 2301 et seq.), includes a requirement for agreement
between the State and the appropriate Secretary regarding
State performance measures, including levels of performance.

20 USC 9272.

SEC. 502. DEFINITIONS FOR INDICATORS OF PERFORMANCE.

(a) IN GENERAL.—In order to ensure nationwide comparability
of performance data, the Secretary of Labor and the Secretary
of Education, after consultation with the representatives described
in subsection (b), shall issue definitions for indicators of performance
and levels of performance established under titles I and II.
(b) REPRESENTATIVES.—The representatives referred to in subsection (a) are representatives of States (as defined in section 101)
and political subdivisions, business and industry, employees, eligible
providers of employment and training activities (as defined in section 101), educators, participants in activities carried out under
this Act, State Directors of adult education, providers of adult
education, providers of literacy services, individuals with expertise
in serving the employment and training needs of eligible youth
(as defined in section 101), parents, and other interested parties,
with expertise regarding activities authorized under this Act.
20 USC 9273.

SEC. 503. INCENTIVE GRANTS.

Effective date.

(a) IN GENERAL.—Beginning on July 1, 2000, the Secretary
shall award a grant to each State that exceeds the State adjusted

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1245

levels of performance for title I, the expected levels of performance
for title II, and the levels of performance for programs under Public
Law 88–210 (as amended; 20 U.S.C. 2301 et seq.), for the purpose
of carrying out an innovative program consistent with the requirements of any one or more of the programs within title I, title
II, or such Public Law, respectively.
(b) APPLICATION.—
(1) IN GENERAL.—The Secretary may provide a grant to
a State under subsection (a) only if the State submits an
application to the Secretary for the grant that meets the
requirements of paragraph (2).
(2) REQUIREMENTS.—The Secretary may review an application described in paragraph (1) only to ensure that the application contains the following assurances:
(A) The legislature of the State was consulted with
respect to the development of the application.
(B) The application was approved by the Governor,
the eligible agency (as defined in section 203), and the
State agency responsible for programs established under
Public Law 88–210 (as amended; 20 U.S.C. 2301 et seq.).
(C) The State and the eligible agency, as appropriate,
exceeded the State adjusted levels of performance for title
I, the expected levels of performance for title II, and the
levels of performance for programs under Public Law 88–
210 (as amended; 20 U.S.C. 2301 et seq.).
(c) AMOUNT.—
(1) MINIMUM AND MAXIMUM GRANT AMOUNTS.—Subject to
paragraph (2), a grant provided to a State under subsection
(a) shall be awarded in an amount that is not less than $750,000
and not more than $3,000,000.
(2) PROPORTIONATE REDUCTION.—If the amount available
for grants under this section for a fiscal year is insufficient
to award a grant to each State or eligible agency that is
eligible for a grant, the Secretary shall reduce the minimum
and maximum grant amount by a uniform percentage.
SEC. 504. PRIVACY.

20 USC 9274.

(a) SECTION 144 OF THE GENERAL EDUCATION PROVISIONS
ACT.—Nothing in this Act shall be construed to supersede the
privacy protections afforded parents and students under section
444 of the General Education Provisions Act (20 U.S.C. 1232g),
as added by the Family Educational Rights and Privacy Act of
1974 (section 513 of Public Law 93–380; 88 Stat. 571).
(b) PROHIBITION ON DEVELOPMENT OF NATIONAL DATABASE.—
(1) IN GENERAL.—Nothing in this Act shall be construed
to permit the development of a national database of personally
identifiable information on individuals receiving services under
title I of this Act.
(2) LIMITATION.—Nothing in paragraph (1) shall be construed to prevent the proper administration of national programs under subtitles C and D of title I of this Act or to
carry out program management activities consistent with title
I of this Act.
SEC. 505. BUY-AMERICAN REQUIREMENTS.

(a) COMPLIANCE WITH BUY AMERICAN ACT.—None of the funds
made available in this Act may be expended by an entity unless

20 USC 9275.

112 STAT. 1246

PUBLIC LAW 105–220—AUG. 7, 1998

the entity agrees that in expending the funds the entity will comply
with the Buy American Act (41 U.S.C. 10a et seq.).
(b) SENSE OF THE CONGRESS; REQUIREMENT REGARDING
NOTICE.—
(1) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.—In the case of any equipment or product that may
be authorized to be purchased with financial assistance provided using funds made available under this Act, it is the
sense of the Congress that entities receiving the assistance
should, in expending the assistance, purchase only Americanmade equipment and products.
(2) NOTICE TO RECIPIENTS OF ASSISTANCE.—In providing
financial assistance using funds made available under this
Act, the head of each Federal agency shall provide to each
recipient of the assistance a notice describing the statement
made in paragraph (1) by Congress.
(c) PROHIBITION OF CONTRACTS WITH PERSONS FALSELY LABELING PRODUCTS AS MADE IN AMERICA.—If it has been finally determined by a court or Federal agency that any person intentionally
affixed a label bearing a ‘‘Made in America’’ inscription, or any
inscription with the same meaning, to any product sold in or shipped
to the United States that is not made in the United States, the
person shall be ineligible to receive any contract or subcontract
made with funds made available in this subtitle, pursuant to the
debarment, suspension, and ineligibility procedures described in
sections 9.400 through 9.409 of title 48, Code of Federal Regulations,
as such sections are in effect on the date of enactment of this
Act, or pursuant to any successor regulations.
20 USC 9276.

Applicability.

Deadlines.
Federal Register,
publications.

SEC. 506. TRANSITION PROVISIONS.

(a) WORKFORCE INVESTMENT SYSTEMS.—The Secretary of Labor
shall take such actions as the Secretary determines to be appropriate to provide for the orderly transition from any authority
under the Job Training Partnership Act (29 U.S.C. 1501 et seq.)
to the workforce investment systems established under title I of
this Act. Such actions shall include the provision of guidance relating to the designation of State workforce investment boards, local
workforce investment areas, and local workforce investment boards
described in such title.
(b) ADULT EDUCATION AND LITERACY PROGRAMS.—
(1) IN GENERAL.—The Secretary of Education shall take
such actions as the Secretary determines to be appropriate
to provide for the transition from any authority under the
Adult Education Act (20 U.S.C. 1201 et seq.) to any authority
under the Adult Education and Family Literacy Act (as added
by title II of this Act).
(2) LIMITATION.—The authority to take actions under paragraph (1) shall apply only for the 1-year period beginning
on the date of the enactment of this Act.
(c) REGULATIONS.—
(1) INTERIM FINAL REGULATIONS.—Not later than 180 days
after the date of the enactment of this Act, the Secretary
of Labor shall develop and publish in the Federal Register
interim final regulations relating to the transition to, and
implementation of, this Act.
(2) FINAL REGULATIONS.—Not later than December 31,
1999, the Secretary shall develop and publish in the Federal

PUBLIC LAW 105–220—AUG. 7, 1998

112 STAT. 1247

Register final regulations relating to the transition to, and
implementation of, this Act.
(d) EXPENDITURE OF FUNDS DURING TRANSITION.—
(1) IN GENERAL.—Subject to paragraph (2) and in accordance with regulations developed under subsection (b), States,
grant recipients, administrative entities, and other recipients
of financial assistance under the Job Training Partnership Act
(29 U.S.C. 1501 et seq.) or under this Act may expend funds
received under the Job Training Partnership Act or under
this Act, prior to July 1, 2000, in order to plan and implement
programs and activities authorized under this Act.
(2) ADDITIONAL REQUIREMENTS.—Not to exceed 2 percent
of any allotment to any State from amounts appropriated under
the Job Training Partnership Act or under this Act for fiscal
year 1998 or 1999 may be made available to carry out paragraph (1) and not less than 50 percent of any such amount
used to carry out paragraph (1) shall be made available to
local entities for the purposes described in such paragraph.
(e) REORGANIZATION.—Not later than 1 year after the date
of the enactment of this Act, the Secretary of Labor shall reorganize
and align functions within the Department of Labor and within
the Employment and Training Administration in order to carry
out the duties and responsibilities required by this Act (and related
laws) in an effective and efficient manner.
SEC. 507. EFFECTIVE DATE.

Except as otherwise provided in this Act, this Act and the
amendments made by this Act, shall take effect on the date of
the enactment of this Act.
Approved August 7, 1998.

LEGISLATIVE HISTORY—H.R. 1385 (S. 1186):
HOUSE REPORTS: Nos. 105–93 (Comm. on Education and the Workforce) and
105–659 (Comm. of Conference).
SENATE REPORTS: No. 105–109 accompanying S. 1186 (Comm. on Labor and
Human Resources).
CONGRESSIONAL RECORD:
Vol. 143 (1997): May 16, considered and passed House.
Vol. 144 (1998): May 1, 5, considered and passed Senate, amended.
July 30, Senate agreed to conference report.
July 31, House agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 34 (1998):
Aug. 7, Presidential remarks.

Æ

Deadline.

20 USC 9201
note.