S 3599 ISCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

S. 3599CommentsClose CommentsPermalink

To streamline and address overlap in the Federal workforce investment system, steer Federal training dollars toward skills needed by industry, establish incentives for accountability through a Pay for Performance pilot program, and provide new access to the National Directory of New Hires, to measure performance and better connect the unemployed to jobs, and for other purposes.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

September 20, 2012CommentsClose CommentsPermalink

Mr. PORTMAN (for himself and Mr. BENNET) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and PensionsCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To streamline and address overlap in the Federal workforce investment system, steer Federal training dollars toward skills needed by industry, establish incentives for accountability through a Pay for Performance pilot program, and provide new access to the National Directory of New Hires, to measure performance and better connect the unemployed to jobs, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Careers through Responsive, Efficient, and Effective Retraining Act.’.CommentsClose CommentsPermalink

SEC. 2. STEERING FEDERAL TRAINING DOLLARS TOWARD SKILLS NEEDED BY INDUSTRY.

(a) Definitions- Section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(54) CREDENTIAL-CommentsClose CommentsPermalink





‘(A) INDUSTRY-RECOGNIZED- The term ‘industry-recognized’, used with respect to a credential, means a credential that is sought or accepted by employers within the industry sector involved as recognized, preferred, or required for recruitment, screening, hiring, or advancement.CommentsClose CommentsPermalink





‘(B) NATIONALLY PORTABLE- The term ‘nationally portable,’ used with respect to credential, means a credential that is sought or accepted as described in subparagraph (A) across multiple States.CommentsClose CommentsPermalink





‘(C) REGIONALLY RELEVANT- The term ‘regionally relevant,’ used with respect to a credential, means a credential that is determined by the Governor and the head of the State workforce agency to be sought or accepted as described in subparagraph (A) in that State and neighboring States.CommentsClose CommentsPermalink





‘(55) STATE WORKFORCE AGENCY- The term ‘State workforce agency’ means the lead State agency with responsibility for workforce investment activities carried out under subtitle B.’.CommentsClose CommentsPermalink





(b) Youth Activities- Section 129(c)(1)(C) of the Workforce Investment Act of 1998 (29 U.S.C. 2854(c)(1)(C)) is amended--CommentsClose CommentsPermalink





(1) by redesignating clauses (ii) through (iv) as clauses (iii) through (v), respectively; andCommentsClose CommentsPermalink





(2) inserting after clause (i) the following:CommentsClose CommentsPermalink





‘(ii) training, with priority consideration given, after consultation with the Governor and the head of the State workforce agency and beginning not later than 6 months after the date of enactment of the Careers through Responsive, Efficient, and Effective Retraining Act, to programs that lead to an industry-recognized, nationally portable, and regionally relevant credential, if the local board determines that such programs are available and appropriate;’.CommentsClose CommentsPermalink





(c) General Employment and Training Activities- Section 134(d)(4)(F) of the Workforce Investment Act of 1998 (29 U.S.C. 2864(d)(4)(F)) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(iv) PRIORITY FOR PROGRAMS THAT PROVIDE AN INDUSTRY-RECOGNIZED, NATIONALLY PORTABLE, AND REGIONALLY RELEVANT CREDENTIAL- In selecting and approving programs of training services under this section, a one-stop operator and employees of a one-stop center referred to in subsection (c) shall, after consultation with the Governor and the head of the State workforce agency and beginning not later than 6 months after the date of enactment of the Careers through Responsive, Efficient, and Effective Retraining Act, give priority consideration to programs (approved by the appropriate State agency and local board in conjunction with section 122) that lead to an industry-recognized, nationally portable, and regionally relevant credential.CommentsClose CommentsPermalink





‘(v) RULE OF CONSTRUCTION- Nothing in clause (iv) or section 129(c)(1)(C) shall be construed to require an entity with responsibility for selecting or approving a workforce investment activities program to select a program that leads to a credential specified in clause (iv).’.CommentsClose CommentsPermalink





(d) State Administration-CommentsClose CommentsPermalink





(1) GENERAL EMPLOYMENT AND TRAINING ACTIVITIES- Section 122(b)(2)(D) of the Workforce Investment Act of 1998 (29 U.S.C. 2842(b)(2)(D)) is amended--CommentsClose CommentsPermalink





(A) in clause (ii), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(B) in clause (iii), by striking the period and inserting ‘; and’; andCommentsClose CommentsPermalink





(C) by adding at the end the following:CommentsClose CommentsPermalink





‘(iv) in the case of a provider of a program of training services that leads to an industry-recognized, nationally portable, and regionally relevant credential, that the program leading to the credential meets such quality criteria as the Governor shall establish not later than 6 months after the date of enactment of the Careers through Responsive, Efficient, and Effective Retraining Act.’.CommentsClose CommentsPermalink





(2) YOUTH ACTIVITIES- Section 123 of the Workforce Investment Act of 1998 (29 U.S.C. 2843) is amended by inserting ‘(including such quality criteria as the Governor shall establish not later than 6 months after the date of enactment of the Careers through Responsive, Efficient, and Effective Retraining Act for a training program that leads to an industry-recognized, nationally portable, and regionally relevant credential)’ after ‘plan’.CommentsClose CommentsPermalink





(e) Report on Industry-Recognized Credentials- Section 122 of the Workforce Investment Act of 1998 (29 U.S.C. 2842) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(j) Report on Industry-Recognized Credentials-CommentsClose CommentsPermalink





‘(1) DATA COLLECTION- Each State shall submit to the Secretary data on programs determined, under section 129(c)(1)(C) or 134(d)(4)(F)(iv), to lead to industry-recognized and regionally relevant credentials, and on the need of that State for such credentials.CommentsClose CommentsPermalink





‘(2) REPORT- Based on data provided by the States under paragraph (1), the Secretary shall annually compile the data and prepare a report identifying industry-recognized credentials that are regionally relevant or nationally portable. The report shall include information on the needs of each State and of the Nation for such credentials.CommentsClose CommentsPermalink





‘(3) AVAILABILITY- The Secretary shall make the report available on a Web site.CommentsClose CommentsPermalink





‘(4) RULE OF CONSTRUCTION- Nothing in this subsection shall be construed as an official endorsement of a credential by the Department of Labor.’.CommentsClose CommentsPermalink

SEC. 3. ESTABLISHING INCENTIVES FOR ACCOUNTABILITY.

(a) Program- Subtitle B of title I of the Workforce Investment Act of 1998 is amended by inserting after section 112 (29 U.S.C. 2822) the following:CommentsClose CommentsPermalink

‘SEC. 112A. PAY FOR PERFORMANCE PILOT PROGRAM.

‘(a) Establishment-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Not later than 1 year after the date of enactment of the Careers through Responsive, Efficient, and Effective Retraining Act, the Secretary of Labor shall establish a Pay for Performance pilot program. The Secretary shall select not fewer than 5 States, including at least 1 rural State, to participate in the pilot program by carrying out a Pay for Performance State program.CommentsClose CommentsPermalink





‘(2) VOLUNTARY NATURE OF PROGRAM- Nothing in this subtitle shall be construed to require a State to participate in the pilot program without the State’s consent.CommentsClose CommentsPermalink





‘(3) DEFINITION- In this subsection, the term ‘rural State’ means a State that has a population density of 52 or fewer persons per square mile, or a State in which the largest county has fewer than 150,000 people, as determined on the basis of the most recent decennial census of population conducted pursuant to section 141 of title 13, United States Code.CommentsClose CommentsPermalink





‘(b) Submission of Plans- To be eligible to participate in the pilot program, a State shall submit to the Secretary and obtain approval of a Pay for Performance plan described in section 112(e) as a supplement to the State plan described in section 112. The State shall submit the supplement in accordance with such process as the Secretary may specify after consultation with States.CommentsClose CommentsPermalink





‘(c) Implementation-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In a State that carries out a Pay for Performance State program, the State shall reserve and the local areas shall use the amount described in paragraph (2) to provide a portion of the training services authorized under section 134(d)(4) (referred to in this section as ‘training services’) under the State’s Pay for Performance plan, in addition to the other requirements of this Act.CommentsClose CommentsPermalink





‘(2) AMOUNT- The amount reserved under paragraph (1) shall be--CommentsClose CommentsPermalink





‘(A) a portion of not more than 25 percent, as determined by the State, of the funds available to be allocated under section 133(b) within the State, and estimated by the State to be available for training services, for the fiscal year involved; andCommentsClose CommentsPermalink





‘(B) a portion of not more than 17.5 percent, as determined by the State, of the grant funds awarded under section 211(b) for the State (which portion shall be taken from the funds described in paragraphs (2) and (3) of section 222(a)) for the fiscal year involved.CommentsClose CommentsPermalink





‘(d) Training and Technical Assistance- The Secretary shall provide, by grant or contract, training and technical assistance to States, and local areas in States, carrying out a Pay for Performance State program.CommentsClose CommentsPermalink





‘(e) State Reports- Each State carrying out a Pay for Performance State program shall annually prepare and submit to the Secretary a report regarding the performance of the State on the outcome measures described in section 112(e)(2)(C).CommentsClose CommentsPermalink





‘(f) Evaluations-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Not later than 1 year after the conclusion of the transition period described in section 112(e)(2)(H), the Secretary shall enter into an arrangement for an entity to carry out an independent evaluation of Pay for Performance State programs carried out under this subtitle.CommentsClose CommentsPermalink





‘(2) CONTENTS- For each Pay for Performance State program, the entity shall evaluate the program design and performance on the outcome measures, and estimate public returns on investment, including such returns as reduced dependence on public assistance, reduced unemployment, and increased tax revenue paid by participants exiting the program for employment.CommentsClose CommentsPermalink





‘(3) REPORT- The entity shall prepare a report containing the results of the evaluation, and submit the report to the Secretary, not later than 18 months after the conclusion of the transition period.CommentsClose CommentsPermalink





‘(g) Report to Congress- Not later than 3 months after the submission of the report described in subsection (f)(3), the Secretary shall prepare and submit to Congress a report that contains the results of the evaluations described in subsection (f) and recommendations. The recommendation shall include the Secretary’s opinions concerning whether the pilot program should be continued and whether the pay for performance model should be expanded within this Act, and related considerations.CommentsClose CommentsPermalink





‘(h) Performance-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Except as provided in paragraph (2), section 136 of this Act shall not apply to a State, or a local area in a State, with respect to activities carried out through a Pay for Performance State program.CommentsClose CommentsPermalink





‘(2) FISCAL AND MANAGEMENT ACCOUNTABILITY INFORMATION SYSTEMS- Section 136(f)(1) shall apply with respect to reporting and monitoring of the use of funds under this section for activities described in paragraph (1).’.CommentsClose CommentsPermalink





(b) Pay for Performance Plan- Section 112 of the Workforce Investment Act of 1998 (29 U.S.C. 2822) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(e) Pay for Performance Plans-CommentsClose CommentsPermalink





‘(1) IN GENERAL- For a State seeking to carry out a Pay for Performance State program (referred to in this subsection as a ‘State program’) under the pilot program described in section 112A, the State plan shall include a plan supplement, consisting of a Pay for Performance plan developed by the State and local areas in the State.CommentsClose CommentsPermalink





‘(2) CONTENTS- The Pay for Performance plan shall, with respect to the State program--CommentsClose CommentsPermalink





‘(A) provide for technical support to local areas and providers in order to carry out a pay for performance model, which shall at a minimum provide assistance with data collection and data entry requirements;CommentsClose CommentsPermalink





‘(B) specify target populations who are eligible to receive training services authorized under section 134(d)(4) (referred to in this subsection as ‘training services’) through the State program, with appropriate consideration of and participation targets for special participant populations that face multiple barriers to employment, as defined in section 134(d)(4)(G)(iv);CommentsClose CommentsPermalink





‘(C) specify employment placement, employment retention, and earnings outcome measures and timetables for each target population;CommentsClose CommentsPermalink





‘(D) provide for curricula in terms of competencies required for education and career advancement that are, where feasible, tied to industry-recognized credentials and related standards, or State licensing requirements;CommentsClose CommentsPermalink





‘(E) describe how the State or local areas will provide information to participants in the State program about appropriate support services, where feasible, including career assessment and counseling, case management, child care, transportation, financial aid, and job placement services;CommentsClose CommentsPermalink





‘(F) specify a fixed amount that, except as provided in subparagraph (H), local areas in the State will pay to providers of training services in the State program, for each eligible participant who achieves the applicable outcome measures, according to the timetables described in subparagraph (C), which amount--CommentsClose CommentsPermalink





‘(i) shall represent 115 percent of the historical cost of providing training services to a participant under this subtitle, as established by the State or local area involved; andCommentsClose CommentsPermalink





‘(ii) may vary by target population;CommentsClose CommentsPermalink





‘(G) provide assurances that--CommentsClose CommentsPermalink





‘(i) no funds reserved for the State program will be paid to a provider for a participant who does not achieve the outcome measures according to the timetables; andCommentsClose CommentsPermalink





‘(ii) each local area in the State will reallocate funds not paid to a provider, because the achievement described in clause (i) did not occur, for further activities under the State program in the local area; andCommentsClose CommentsPermalink





‘(H) specify a transition period of not more than 1 year during which the reserved funds may be paid to providers of training services based on the previous year’s performance on the core indicators of performance described in 136(b)(2)(A)(i), in order to enable the providers to begin to provide services under the State program and adjust to a pay for performance model, including adjusting by--CommentsClose CommentsPermalink





‘(i) developing partnerships with local employers; andCommentsClose CommentsPermalink





‘(ii) seeking financial support and volunteer services from private sector sources.CommentsClose CommentsPermalink





‘(3) APPROVAL- In determining whether to approve the plan supplement, the Secretary shall consider the quality of the data system the State will use to track performance on outcome measures in carrying out a Pay for Performance plan.’.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) USE OF FUNDS- Section 211(b)(2) of the Workforce Investment Act of 1998 (20 U.S.C. 9211(b)(2)) is amended by inserting ‘or training services in accordance with section 112A(c)’ before the period at the end.CommentsClose CommentsPermalink





(2) FUNDING- Section 223(a) of the Workforce Investment Act of 1998 (20 U.S.C. 9223(a)) is amended--CommentsClose CommentsPermalink





(A) by redesignating paragraph (8) as paragraph (12), and moving that paragraph to the end of that section 223(a); andCommentsClose CommentsPermalink





(B) by inserting after paragraph (7) the following:CommentsClose CommentsPermalink





‘(8) Providing training services in accordance with section 112A(c).’.CommentsClose CommentsPermalink

SEC. 4. PROVIDING A JOB TRAINING REORGANIZATION PLAN FOR THE FEDERAL WORKFORCE INVESTMENT SYSTEM.

(a) Definitions- In this section:CommentsClose CommentsPermalink





(1) FEDERAL JOB TRAINING PROGRAM- The term ‘Federal job training program’ means any federally funded employment and training program, including the programs identified in the Government Accountability Office report.CommentsClose CommentsPermalink





(2) GOVERNMENT ACCOUNTABILITY OFFICE REPORT- The term ‘Government Accountability Office report’ means the January 2011 report of the Government Accountability Office entitled ‘Multiple Employee and Training Programs: Providing Information on Colocating Services and Consolidating Administrative Structures Could Promote Efficiencies’ (GAO-11-92).CommentsClose CommentsPermalink





(3) INDIVIDUAL WITH A BARRIER TO EMPLOYMENT- The term ‘individual with a barrier to employment’ means a job seeker who--CommentsClose CommentsPermalink





(A) is economically disadvantaged;CommentsClose CommentsPermalink





(B) has limited English proficiency;CommentsClose CommentsPermalink





(C) requires remedial education;CommentsClose CommentsPermalink





(D) is an older worker;CommentsClose CommentsPermalink





(E) is an individual who has completed a sentence for a criminal offense; orCommentsClose CommentsPermalink





(F) has another barrier to employment, as defined by the Director of the Office of Management and Budget.CommentsClose CommentsPermalink





(b) Reorganization Plan-CommentsClose CommentsPermalink





(1) PREPARATION- The Director of the Office of Management and Budget (referred to in this section as the ‘Director’) shall prepare a plan to reorganize Federal job training programs to increase their efficiency, integration, and alignment. The plan shall include a proposal to decrease the number of Federal job training programs without decreasing services or accessibility to services for eligible job training participants, including individuals with barriers to employment. In preparing the plan, the Director shall demonstrate that the Director considered the findings of the Government Accountability Office report, and input from the States, local workforce investment boards, businesses, workforce advocates and community organizations, labor organizations, and relevant education-related organizations.CommentsClose CommentsPermalink





(2) SUBMISSION- Not later than 12 months after the date of enactment of this Act, the Director shall submit the reorganization plan to the appropriate committees of Congress.CommentsClose CommentsPermalink

SEC. 5. USING THE NATIONAL DIRECTORY OF NEW HIRES INFORMATION TO ASSIST IN ADMINISTRATION OF WORKFORCE INVESTMENT ACT PROGRAMS.

Section 453(j) of the Social Security Act (42 U.S.C. 653(j)) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(12) INFORMATION COMPARISONS AND DISCLOSURE TO ASSIST IN ADMINISTRATION OF WORKFORCE INVESTMENT ACT PROGRAMS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- If, for purposes of administering a program of workforce investment activities carried out under subtitle B of title I of the Workforce Investment Act of 1998, a State agency responsible for the administration of such program transmits to the Secretary the names and social security account numbers of individuals, the Secretary shall disclose to such State agency information on such individuals and their employers maintained in the National Directory of New Hires, subject to this paragraph.CommentsClose CommentsPermalink





‘(B) CONDITION ON DISCLOSURE BY THE SECRETARY- The Secretary shall make a disclosure under subparagraph (A) only to the extent that the Secretary determines that the disclosure would not interfere with the effective operation of the program under this part.CommentsClose CommentsPermalink





‘(C) USE AND DISCLOSURE OF INFORMATION BY STATE AGENCIES-CommentsClose CommentsPermalink





‘(i) IN GENERAL- A State agency may not use or disclose information provided under this paragraph except for purposes of administering a program referred to in subparagraph (A) (including measuring performance under section 136 of the Workforce Investment Act of 1998 and preparing reports under subsection (d) of such section, subject to this paragraph).CommentsClose CommentsPermalink





‘(ii) INFORMATION SECURITY- The State agency shall have in effect data security and control policies that the Secretary finds adequate to ensure the security of information obtained under this paragraph and to ensure that access to such information is restricted to authorized persons for purposes of authorized uses and disclosures.CommentsClose CommentsPermalink





‘(iii) PENALTY FOR MISUSE OF INFORMATION- An officer or employee of the State agency who fails to comply with this subparagraph shall be subject to the sanctions under subsection (l)(2) to the same extent as if such officer or employee was an officer or employee of the United States.CommentsClose CommentsPermalink





‘(D) PROCEDURAL REQUIREMENTS- State agencies requesting information under this paragraph shall adhere to uniform procedures established by the Secretary governing information requests and data matching under this paragraph.CommentsClose CommentsPermalink





‘(E) WAIVER OF REQUIREMENT TO REIMBURSE COSTS- Notwithstanding subsection (k)(3), a State agency shall not be required to reimburse the Secretary for the costs incurred by the Secretary in furnishing information requested under this paragraph to the State agency.’.CommentsClose CommentsPermalink