GENERAL PROGRAM REQUIREMENTS.

SEC. 131. GENERAL PROGRAM REQUIREMENTS. (a) Relocation.— Section 141(c) of the Act (29 U.S.C. 1551(c)) is amended to read as follows: “(c) (1) No funds provided under this Act shall be used or proposed for use to encourage or induce the relocation, of an establishment or part thereof, that results in a loss of employment for any employee of such establishment at the original location. “(2) No funds provided under this Act shall be used for customized or skill training, on-the-job training, or company specific assessments of job applicants or employees, for any establishment or part thereof, that has relocated, until 120 days after the date on which such establishment commences operations at the new location, if the relocation of such establishment or part thereof, results in a loss of employment for any employee of such establishment at the original location. “(3) If a violation of paragraph (1) or (2) is alleged, the Secretary shall conduct an investigation to determine whether a violation has occurred. “(4) If the Secretary determines that a violation of paragraph (1) or (2) has occurred, the Secretary shall require the State, service delivery area, or substate grantee that has violated paragraph (1) or (2) to— “(A) repay to the United States an amount equal to the amount expended in violation of paragraph (1) or (2), in accordance with subsection (d) or (e) of section 164; and “(B) pay an additional amount equal to the amount required to be repaid under subparagraph (A), unless the State, service delivery area, or substate grantee demonstrates to the Secretary that it neither knew nor reasonably could have known (after an inquiry undertaken with due diligence) that it provided funds in violation of paragraph (1) or (2). “(5) Amounts received under paragraph (4)(B) shall be deposited in a special account in the Treasury for use by the Secretary for carrying out title III.”. (b) Charging of Costs.— Section 141(d)(3) of the Act (29 U.S.C. 1551(d)(3)) is amended— (1) by inserting “(A)” after the paragraph (3) designation; and (2) by inserting the following new subparagraphs: “(B) Tuition charges for training or education provided by an institution of higher education (as defined in section 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a))) or a proprietary institution of higher education (as defined in section 481(b) of such Act (20 U.S.C. 1088(b))), that are not more than the charges for such training or education made available to the general public, do not require a breakdown of cost components. “(C) With respect to funds provided from the allocation to a service delivery area for any program year that are expended by any community-based organization or nonprofit organization for106 STAT. 1043 the cost of administration under part A or C of title II, the service delivery area shall not be subject to the limitation contained in section 108(b)(4)(A) if— “(i) such funds are expended pursuant to an agreement under which not less than 90 percent of the funds provided to the community-based organization or nonprofit organization are to be expended for the costs of direct training and training-related and supportive services; “(ii) the expenditures of such funds are charged by the service delivery area to the appropriate cost category; “(iii) the expenditure of such funds does not result in the service delivery area exceeding the limitation contained in section 108(b)(4)(A) by more than 25 percent of such limitation; and “(iv) the service delivery area is in compliance with the limitation contained in section 108(b)(4)(B) for such program year, except that such limitation shall be reduced by a percentage equal to one-half of the percentage by which the expenditures of the service delivery area under this subparagraph exceed the limitation under section 108(b)(4)(A).”. (c) Placement.— Section 141(d) of the Act (29 U.S.C. 1551(d)) is amended by adding at the end the following new paragraph: “(4) Placements made in unsubsidized employment shall be, to the extent practicable, in occupational areas related to the training provided to the participant.”. (d) Service Delivery Area Agreements.— Section 141(e) of the Act (29 U.S.C. 1551(e)) is amended— (1) by inserting “(1)” after “(e)”; and (2) by adding at the end the following new paragraph: “(2) Any service delivery area may enter into an agreement or contract with another service delivery area (including a service delivery 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 Act, including the provision of supportive services. Such agreement or contract shall be approved by each private industry council providing guidance to the service delivery area and shall be described in the job training plan under section 104.”. (e) On-The-Job Training.— Section 141(g) of the Act (29 U.S.C. 1551(g)) is amended— (1) by inserting “(1)” after “(g)”; and (2) by adding at the end the following new paragraphs: “(2) On-the-job training authorized under the Act for a participant shall be limited in duration to a period not in excess of that generally required for acquisition of skills needed for the position within a particular occupation, but in no event shall exceed 6 months, unless the total number of hours of such training is less than 500 hours. In determining the period generally required for acquisition of the skills, consideration shall be given to recognized reference material (such as the Dictionary of Occupational Titles), the content of the training of the participant, the prior work experience of the participant, and the service strategy of the participant “(3) (A) Each on-the-job training contract shall— “(i) specify the types and duration of on-the-job training and the other services to be provided in sufficient detail to allow for a fair analysis of the reasonableness of proposed costs; and 106 STAT. 1044 “(ii) comply with the applicable requirements of section 164. “(B) Each on-the-job training contract that is not directly contracted by a service delivery area with an employer (but instead is contracted through an intermediary brokering contractor) shall, in addition to meeting the requirements of subparagraph (A), specify the outreach, recruitment, participant training, counseling, placement, monitoring, followup, and other services to be provided directly by the brokering contractor within its own organization, the services to be provided by the employers conducting the on-the-job training, and the services to be provided, with or without cost, by other agencies and subcontractors. “(C) If a brokering contractor enters into a contract with a subcontractor to provide training or other services, the brokering contractor shall ensure, through on-site monitoring, compliance with subcontract terms prior to making payment to the subcontractor. “(4) In accordance with regulations issued by the Secretary, on-the-job training contracts under this Act shall not be entered into with employers who have received payments under previous contracts and have exhibited a pattern of failing to provide on-the-job training participants with continued long-term employment as regular employees with wages and employment benefits (including health benefits) and working conditions at the same level and to the same extent as other employees working a similar length of time and doing the same type of work.”. (f) Training Services Requirement for Subsidized Employment.— Section 141(k) of the Act (29 U.S.C. 155 l(k)) is amended by striking “section 205(d)(3)(B)” and inserting “subparagraphs (F) and (H) of section 264(c)(1)”. (g) Program Income.— Section 141(m) of the Act (29 U.S.C. 1551(m)) is amended to read as follows: “(m) (1) Income under any program administered by a public or private nonprofit entity may be retained by such entity only if used to continue to carry out the program. “(2) Income subject to the requirements of paragraph (1) shall include— “(A) receipts from goods or services (including conferences) provided as a result of activities funded under the Act; “(B) funds provided to a service provider under the Act that are in excess of the costs associated with the services provided; and “(C) interest income earned on funds received under this Act. “(3) For the purposes of this subsection, each entity receiving financial assistance under this Act shall maintain records sufficient to determine the amount of income received and the purposes for which such income is expended.”. (h) Cross Reference.— Section 141(p) of the Act (29 U.S.C. 1551(p)) is amended by striking “part A of title II” and inserting “part A or C of title II”. (i) Additional Requirements.— Section 141 of the Act is further amended by adding at the end the following new subsections: “(q) No funds available under this Act 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. No funds under title II or III of this Act shall be used for foreign travel. 106 STAT. 1045 “(r) The Federal requirements governing the title, use, and disposition of real property, equipment, and supplies purchased with funds provided under this Act shall be the Federal requirements generally applicable to Federal grants to States and local governments.”.