AMENDMENT TO TITLE III OF THE JOB TRAINING PARTNERSHIP ACT.

SEC. 6302. AMENDMENT TO TITLE III OF THE JOB TRAINING PARTNERSHIP ACT. (a) In General.— Title III of the Job Training Partnership Act (29 U.S.C. 1651 et seq.) is amended to read as follows: “TITLE III— EMPLOYMENT AND TRAINING ASSISTANCE FOR DISLOCATED WORKERS “definitions “Sec. 301. (a) Dislocated Workers.— (1) For purposes of this title, the term ‘eligible dislocated workers’ means individuals who— “(A) have been terminated or laid off or who have received a notice of termination or layoff from employment, are eligible for or have exhausted their entitlement to unemployment compensation, and are unlikely to return to their previous industry or occupation; “(B) have been terminated or have received a notice of termination of employment, as a result of any permanent closure of or any substantial layoff at a plant, facility, or enterprise; “(C) are long-term unemployed and have limited opportunities for employment or reemployment in the same or a similar occupation in the area in which such individuals reside, including older individuals who may have substantial barriers to employment by reason of age; or “(D) were self-employed (including farmers and ranchers) and are unemployed as a result of general economic conditions in the community in which they reside or because of natural disasters, subject to regulations prescribed by the Secretary. “(2) For purposes of this title, the term ‘additional dislocated worker’ means a displaced homemaker as that term is defined in section 4(29) of this Act “(3) The Secretary shall establish categories of self-employed individuals and of economic conditions and natural disasters to which paragraph (1)(D) applies. “(b) Additional Definitions.— For the purposes of this title— “(1) The term ‘labor-management committees’ means committees voluntarily established to respond to actual or prospective worker dislocation, which ordinarily include (but are not limited to) the following— “(A) shared and equal participation by workers and management; “(B) shared financial participation between the company and the State, using funds provided under this title, in paying for the operating expenses of the committee; “(C) a chairperson, to oversee and guide the activities of the committee, (i) who shall be jointly selected by the labor102 STAT. 1525 and management members of the committee, (ii) who is not employed by or under contract with labor or management at the site, and (iii) who shall provide advice and leadership to the committee and prepare a report on its activities; “(D) the ability to respond flexibly to the needs of affected workers by devising and implementing a strategy for assessing the employment and training needs of each dislocated worker and for obtaining the services and assistance necessary to meet those needs; “(E) a formal agreement, terminable at will by the workers or the company management, and terminable for cause by the Governor; and “(F) local job identification activities by the chairman and members of the committee on behalf of the affected workers. “(2) The term ‘local elected official’ means the chief elected executive officer of a unit of general local government in a substate area. “(3) The term ‘service provider’ means a public agency, private nonprofit organization, or private-for-profit entity that delivers educational, training, or employment services. “(4) The term ‘substate area’ means that geographic area in a State established pursuant to section 312(a). “(5) The term ‘substate grantee’ means that agency or organization selected to administer programs pursuant to section 312(b). “(6) The term ‘State’ means any of the several States, the District of Columbia, and the Commonwealth of Puerto Rico. “allotment “Sec. 302. (a) Allotment of Funds.— From the funds appropriated pursuant to section 3(c) for any fiscal year, the Secretary shall— “(1) allot 80 percent of such funds in accordance with the provisions of subsection (b); and “(2) reserve 20 percent for use under part B of this title, subject to the reservation required by subsection (e) of this section. “(b) Allotment Among States.— (1) Subject to the provisions of paragraph (2), the Secretary shall allot the amount available in each fiscal year under subsection (a)(1) on the basis of the following factors: “(A) One-third of such amount shall be allotted among the States on the basis of the relative number of unemployed individuals who reside in each State as compared to the total number of unemployed individuals in all the States. “(B) One-third of such amount shall be allotted among the States on the basis of the relative excess number of unemployed individuals who reside in each State as compared to the total excess number of unemployed individuals in all the States. For purposes of this paragraph, the term ‘excess number’ means the number which represents unemployed individuals in excess of 4.5 percent of the civilian labor force in the State. “(C) One-third of such amount shall be allotted among the States on the basis of the relative number of individuals who have been unemployed for 15 weeks or more and who reside in102 STAT. 1526 each State as compared to the total number of such individuals in all the States. “(2) As soon as satisfactory data are available under section 462(e) of this Act, the Secretary shall allot amounts appropriated to carry out part B and this part for any fiscal year to each State so that— “(A) 25 percent of such amount shall be allotted on the basis of each of the factors described in subparagraphs (A), (B), and (C) of paragraph (1), respectively, for a total of 75 percent of the amount allotted; and “(B) 25 percent of such amount shall be allotted among the States on the basis of the relative number of dislocated workers in such State in the most recent period for which satisfactory data are available under section 462(e) and, when available, under section 462(f) of this Act. “(c) Reservations for State Activities and for Substate Grantees in Need.— (1) The Governor may reserve not more than 40 percent of the amount allotted to the State under section 302(a)(1) for— “(A) State administration, technical assistance, and coordination of the programs authorized under this title; “(B) statewide, regional, or industrywide projects; “(C) rapid response activities as described in section 314(b); “(D) establishment of coordination between the unemployment compensation system and the worker adjustment program system; and “(E) discretionary allocation for basic readjustment and retraining services to provide additional assistance to areas that experience substantial increases in the number of dislocated workers, to be expended in accordance with the substate plan or modification thereof. “(2) In addition, the Governor may reserve not more than 10 percent of the amount allotted to the State under section 302(a)(1) for allocation among substate grantees. The amount so reserved shall be allocated on the basis of need and distributed to such grantees not later than 9 months after the beginning of the program year for which the allotment was made. “(d) Within State Distribution.— The Governor shall allocate the remainder of the amount allotted to the State under this part to substate areas for services authorized in this part, based on an allocation formula prescribed by the Governor. 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. Such information shall include (but is not limited to)— “(1) insured unemployment data; “(2) unemployment concentrations; “(3) plant closing and mass layoff data; “(4) declining industries data; “(5) farmer-rancher economic hardship data; and “(6) long-term unemployment data. “(e) Reservation for the Territories.— Not more than 0.3 percent of the amounts appropriated pursuant to section 3(c) and available under subsection (a)(2) of this section for any fiscal year shall be allocated among the Commonwealth of the Northern Mariana Islands and the other territories and possessions of the United States. 102 STAT. 1527 “recapture and reallotment of unexpended funds “Sec. 303. (a) General Reallotment Authority.— For program years beginning July 1, 1989, and thereafter, the Secretary shall, in accordance with the requirements of this section, reallot to eligible States the funds allotted to States from funds appropriated for such program year that are available for reallotment. “(b) Amount Available for Reallotment.— The amount available for reallotment is equal to— “(1) the amount by which the unexpended balance of the State allotment at the end of the program year prior to the program year for which the determination under this section is made exceeds 20 percent of such allotment for that prior program year; plus “(2) the unexpended balance of the State allotment from any program year prior to the program year in which there is such excess. “(c) Method of Reallotment.— (1) The Secretary shall determine the amount that would be allotted to each eligible State by using the factors described in section 302(b) to allocate among eligible States the amount available pursuant to subsection (b) of this section. “(2) The Secretary shall allot to each eligible high unemployment State the amount determined for that State under the procedure in paragraph (1) of this subsection. “(3) The Secretary shall, by using the factors described in section 302(b), allot to eligible States the amount available that remains after the allotment required by paragraph (2) of this subsection. “(d) State Procedures With Respect to Reallotment.— The Governor of each State shall prescribe uniform procedures for the expenditure of funds by substate grantees in order to avoid the requirement that funds be made available for reallotment under subsection (b). The Governor shall further prescribe equitable procedures for making funds available from the State and substate grantees in the event that a State is required to make funds available for reallotment under such subsection. “(e) Definitions.— (1) For the purpose of this section, an eligible State means a State which has expended at least 80 percent of its allotment for the program year prior to the program year for which the determination under this section is made. “(2) For the purpose of this section, an eligible high unemployment State means a State— “(A) which meets the requirement in subsection (c)(1), and “(B) which is among the States which has an unemployment rate greater than the national average unemployment for the most recent 12 months for which satisfactory data are available. “(3) For purposes of this section, funds awarded from discretionary funds of the Secretary shall not be included in calculating any of the reallotments described in this section. “PART A— STATE DELIVERY OF SERVICES “state plan “Sec. 311. (a) State Plan Required.— In order to receive an allotment of funds under section 302(b), the Governor of a State shall submit to the Secretary, on a biennial basis, a State plan describing in detail the programs and activities that will be assisted102 STAT. 1528 with funds provided under this title. The State plan shall be submitted on or before the first day of May immediately preceding the program year for which funds are first to be made available under this title. Such plan shall include incentives to provide training of greater duration for those who require it, consistent with section 106(g). “(b) Contents of Plan.— Each State plan shall contain provisions demonstrating to the satisfaction of the Secretary that the State will comply with the requirements of this title and that— “(1) services under this title— “(A) will, except as provided in paragraph (4), only be provided to eligible dislocated workers; “(B) will not be denied to an eligible dislocated worker displaced by a permanent closure or substantial layoff within the State, regardless of the State of residence of such worker; and “(C) may be provided to other eligible dislocated workers regardless of the State of residence of such worker; “(2) the State will designate or create an identifiable State dislocated worker unit or office with the capability to respond rapidly, on site, to permanent closures and substantial layoffs throughout the State in order to assess the need for, and initially to provide for, appropriate basic readjustment services; “(3) the State unit will— “(A) make appropriate retraining and basic readjustment services available to eligible dislocated workers through the use of rapid response teams, substate grantees, and other appropriate organizations; “(B) work with employers and labor organizations in promoting labor-management cooperation to achieve the goals of this title; “(C) operate a monitoring, reporting, and management system which provides an adequate information base for effective program management, review, and evaluation; and “(D) provide technical assistance and advice to substate grantees; “(4) the State will provide to additional dislocated workers (as defined in section 301(a)(2)) the services available under this title to eligible dislocated workers only if the Governor of such State determines that such services may be provided to additional dislocated workers without adversely affecting the delivery of such services to eligible dislocated workers; “(5) the State unit will exchange information and coordinate programs with— “(A) the appropriate economic development agency, for the purpose of developing strategies to avert plant closings or mass layoffs and to accelerate the reemployment of affected individuals; “(B) State education, training, and social services programs; and “(C) all other programs available to assist dislocated workers (including the Job Service and the unemployment insurance system); “(6) the State unit will disseminate throughout the State information on the availability of services and activities under this title; 102 STAT. 1529 “(7) any program conducted with funds made available under this title which will provide services to a substantial number of members of a labor organization will be established only after full consultation with such labor organization; “(8) the State will not prescribe any standard for the operation of programs under this part that is inconsistent with section 106(g); “(9) the State job training coordinating council has reviewed and commented in writing on the plan; and “(10) the delivery of services with funds made available under this title will be integrated or coordinated with services or payments made available under chapter 2 of title II of the Trade Act of 1974 and provided by any State or local agencies designated under section 239 of the Trade Act of 1974. “(c) Review and Approval of State Plans.—The Secretary shall review any plan submitted under subsection (a), and any comments thereon submitted by the State job training coordinating council pursuant to subsection (b)(9), and shall notify a State as to any deficiencies in such plan within 30 days after submission. Unless a State has been so notified, the Secretary shall approve the plan within 45 days after submission. The Secretary shall not finally disapprove the plan of any State except after notice and opportunity for a nearing. “(d) Modifications.— Any plan submitted under subsection (a) may be modified to describe changes in or additions to the programs and activities set forth in the plan, except that no such modification shall be effective unless reviewed and approved in accordance with subsection (c). “(e) Complaint, Investigation, Penalty.— (1) Whenever the Secretary receives a complaint or a report from an aggrieved party or a public official that a State is not complying with the provisions of the State plan required by this section, the Secretary shall investigate such report or complaint. “(2) (A) Whenever the Secretary determines that there has been such a failure to comply and that other remedies under this Act are not available or are not adequate to achieve compliance, the Secretary may withhold an amount not to exceed 10 percent of the allotment of the State for the fiscal year in which the determination is made for each such violation. “(B) No determination may be made under this paragraph until the State affected is afforded adequate notice and opportunity for a hearing. “(f) Special Rule.— The provisions of section 102(h) and 105(d), relating to cases in which a service delivery area is a State, shall apply to this title. “substate grantees “Sec. 312. (a) Designation of Substate Areas.— (1) The Governor of each State shall, after receiving any recommendations from the State job training coordinating council, designate substate areas for the State. “(2) Each service delivery area within a State shall be included within a substate area and no service delivery area shall be divided among two or more substate areas. “(3) In making designations of substate areas, the Governor shall consider— “(A) the availability of services throughout the State; 102 STAT. 1530 “(B) the capability to coordinate the delivery of services with other human services and economic development programs; and “(C) the geographic boundaries of labor market areas within the State. “(4) Subject to paragraphs (2) and (3), the Governor— “(A) shall designate as a substate area any single service delivery area that has a population of 200,000 or more; “(B) shall designate as a substate area any two or more contiguous service delivery areas— “(i) that in the aggregate have a population of 200,000 or more; and “(ii) that request such designation; and “(C) shall designate as a substate area any concentrated employment program grantee for a rural area described in section 101(a)(4)(A)(iii) of this Act. “(5) The Governor may deny a request for designation under paragraph (4)(B) if the Governor determines that such designation would not be consistent with the effective delivery of services to eligible dislocated workers in various labor market areas (including urban and rural areas) within the State, or would not otherwise be appropriate to carry out the purposes of this title. “(6) The designations made under this section may not be revised more than once each two years, in accordance with the requirements of this section. “(b) Designation of Substate Grantees.— A substate grantee shall be designated, on a biennial basis, for each substate area. Such substate grantee shall be designated in accordance with an agreement among the Governor, the local elected official or officials of such area, and the private industry council or councils of such area. Whenever a substate area is represented by more than one such official or council, the respective officials and councils shall each designate representatives, in accordance with procedures established by the Governor (after consultation with the State job training coordinating council), to negotiate such agreement. In the event agreement cannot be reached on the selection of a substate grantee, the Governor shall select the substate grantee. “(c) Eligibility.— Entities eligible for designation as substate grantees include— “(1) private industry councils in the substate area; “(2) service delivery area grant recipients or administrative entities; “(3) private nonprofit organizations; “(4) units of general local government in the substate area, or agencies thereof; “(5) local offices of State agencies; and “(6) other public agencies, such as community colleges and area vocational schools. “(d) Functions of Substate Grantees.— The substate grantee shall be responsible for providing, within such substate area, services described in section 314 (c), (d), and (e) pursuant to an agreement with the Governor and in accordance with the State plan under section 311 and the substate plan under section 313. The substate grantee may provide such services directly or through contract, grant, or agreement with service providers. “(e) Applicability of General Administrative Provisions to Substate Grantees.— The requirements of parts C and D of title I of this Act that apply to an administrative entity or a recipient of102 STAT. 1531 financial assistance under this Act shall also apply to substate grantees under this title. “substate plan “Sec. 313. (a) General Rule.— No amounts appropriated for any fiscal year may be provided to a substate grantee unless the Governor (after considering the recommendations of the State job training coordinating council) has approved a substate plan, or modification thereof, submitted by the substate grantee describing the manner in which activities will be conducted within the substate area. Prior to the submission to the Governor, the plan shall be submitted for review and comment to the other parties to the agreement described in section 312(b). “(b) Contents of Substate Plan.— The substate plan shall contain a statement of— “(1) the means for delivering services described in section 314 to eligible dislocated workers; “(2) the means to be used to identify, select, and verify the eligibility of program participants; “(3) the means for implementing the requirements of section 314(f); “(4) the means for involving labor organizations in the development and implementation of services; “(5) the performance goals to be achieved consistent with the performance goals contained in the State plan pursuant to section 311(b)(8); “(6) procedures, consistent with section 107, for selecting service providers which take into account past performance in job training or related activities, fiscal accountability, and ability to meet performance standards; “(7) a description of the methods by which the subetate grantee will respond expeditiously to worker dislocation where the rapid response assistance required by section 31 (b) is inappropriate, including worker dislocation in sparsely populated areas, which methods may include (but are not limited to)— (A) development and delivery of widespread outreach mechanisms; (B) provision of financial evaluation and counseling (where appropriate) to assist in determining eligibility for services and the type of services needed; (C) initial assessment and referral for further basic adjustment and training services; and (D) establishment of regional centers for the purpose of providing such outreach, assessment, and early readjustment assistance; “(8) a description of the methods by which the other parties to the agreement described in section 312(b) may be involved in activities of the substate grantee; “(9) a description of training services to be provided, including— “(A) procedures to assess participants’ current education skill levels and occupational abilities; “(B) procedures to assess participants’ needs, including educational, training, employment, and social services; 102 STAT. 1532 “(C) methods for allocating resources to provide the services recommended by rapid response teams for eligible dislocated workers within the substate area; and “(D) a description of services and activities to be provided in the substate area; “(10) the means whereby coordination with other appropriate programs, services, and systems will be effected, particularly where such coordination is intended to provide access to the services of such other systems for program participants at no cost to the worker readjustment program; and “(11) a detailed budget, as required by the State. “(c) Plan Approval.— The Governor shall approve or disapprove the plan of a substate grantee in the manner required by section 105(b) (1), (2), and (3). If a substate grantee fails to submit a plan, or submits a plan that is not approved by the Governor in accordance with such section, the Governor may direct the expenditure of funds allocated to the substate area until such time as a plan is submitted and approved or a new substate grantee is designated under section 312. “(d) By-Pass Authority.— If a substate grantee fails to expend funds allocated to it in accordance with its plan, the Governor may, subject to appropriate notice and opportunity for comment in the manner required by section 105(b) (1), (2), and (3), direct the expenditure of funds in accordance with the substate plan until— “(1) the substate grantee corrects the failure, “(2) the substate grantee submits an acceptable modification to its plan pursuant to subsection (a), or “(3) a new substate grantee is designated under section 312. “use of funds; services to be provided “Sec. 314. (a) In General.— Funds allotted under section 302 may be used— “(1) to provide rapid response assistance in accordance with subsection (b); “(2) to deliver, coordinate, and integrate basic readjustment services and support services in accordance with subsection (c); “(3) to provide retraining services in accordance with subsection (d); “(4) to provide needs-related payments in accordance with subsection (e); and “(5) to provide for coordination with the unemployment compensation system in accordance with subsection (f). “(b) Rapid Response Assistance.— (1) The dislocated worker unit required by section 311(b)(2) shall include specialists who may use funds available under this title— “(A) to establish on-site contact with employer and employee representatives within a short period of time (preferably 48 hours or less) after becoming aware of a current or projected permanent closure or substantial layoff in order to— “(i) provide information on and facilitate access to available public programs and services; and “(ii) provide emergency assistance adapted to the particular closure or layoff; “(B) to promote the formation of labor-management committees, by providing— 102 STAT. 1533 “(i) immediate assistance in the establishment of the labor-management committee, including providing immediate financial assistance to cover the start-up costs of the committee; “(ii) a list of individuals from which the chairperson of the committee may be selected; “(iii) technical advice as well as information on sources of assistance, and liaison with other public and private services and programs; and “(iv) assistance in the selection of worker representatives in the event no union is present; “(C) to collect information related to— “(i) economic dislocation (including potential closings or layoffs); and “(ii) all available resources within the State for displaced workers, which information shall be made available on a regular basis to the Governor and the State job training coordinating council to assist in providing an adequate information base for effective program management, review, and evaluation; “(D) to provide or obtain appropriate financial and technical advice and liaison with economic development agencies and other organizations to assist in efforts to avert worker dislocations; “(E) to disseminate information throughout the State on the availability of services and activities carried out by the dislocated worker unit or office; and “(F) to assist the local community in developing its own coordinated response and in obtaining access to State economic development assistance. “(2) In a situation involving an impending permanent closure or substantial layoff, a State may provide funds, where other public or private resources are not expeditiously available, for a preliminary assessment of the advisability of conducting a comprehensive study exploring the feasibility of having a company or group, including the workers, purchase the plant and continue it in operation. “(c) Basic Readjustment Services.— Funds allotted under section 302 may be used to provide basic readjustment services to eligible dislocated workers. Subject to limitations set forth in subsection (e) and section 315(a), the services may include (but are not limited to)— “(1) development of individual readjustment plans for participants in programs under this title; “(2) outreach and intake; “(3) early readjustment assistance; “(4) job or career counseling; “(5) testing; “(6) orientation; “(7) assessment, including evaluation of educational attainment and participant interests and aptitudes; “(8) determination of occupational skills; “(9) provision of future world-of-work and occupational information; “(10) job placement assistance; “(11) labor market information; “(12) job clubs; “(13) job search; 102 STAT. 1534 “(14) job development; “(15) supportive services, including child care, commuting assistance, and financial and personal counseling which shall terminate not later than the 90th day after the participant has completed other services under this part, except that counseling necessary to assist participants to retain employment shall terminate not later than 6 months following the completion of training; “(16) prelayoff assistance; “(17) relocation assistance; and “(18) programs conducted in cooperation with employers or labor organizations to provide early intervention in the event of closures of plants or facilities. “(d) Retraining Services.— (1) Funds allotted under section 302 may be used to provide training services under this part to eligible dislocated workers. Such services may include (but are not limited to)— “(A) classroom training; “(B) occupational skill training; “(C) on-the-job training; “(D) out-of-area job search; “(E) relocation; “(F) basic and remedial education; “(G) literacy and English for non-English speakers training; “(H) entrepreneurial training; and “(I) other appropriate training activities directly related to appropriate employment opportunities in the substate area. “(2) No funds under this part may be expended to provide wages for public service employment. “(e) Needs-Related Payments.— (1) Funds allocated to a substate grantee under section 302(d) may be used pursuant to a substate plan under section 313 to provide needs-related payments to an eligible dislocated worker who does not qualify or has ceased to qualify for unemployment compensation, in order to enable such worker to participate in training or education programs under this title. To be eligible for such payments, an eligible dislocated worker who has ceased to qualify for unemployment compensation must have been enrolled in training by the end of the 13th week of the worker’s initial unemployment compensation benefit period, or, if later, the end of the 8th week after an employee is informed that a short-term layoff will in fact exceed 6 months. “(2) The level of needs-related payments shall be made available at a level not greater than the higher of— “(A) the applicable level of unemployment compensation; or “(B) the poverty level determined in accordance with criteria established by the Director of the Office of Management and Budget. “(f) Coordination With Unemployment Compensation.— Funds allocated to a State under section 302 may be used for coordination of worker readjustment programs and the unemployment compensation system, consistent with the limitation on administrative expenses in section 315. Each State shall be responsible for coordinating the unemployment compensation system and worker readjustment programs within such State. 102 STAT. 1535 “limitations on uses of funds “Sec. 315. (a) Use of Funds for Retraining Services.— (1) Not less than 50 percent of the funds expended under this title by any substate grantee shall be expended for retraining services specified under section 314(d). “(2) A substate grantee may apply to the Governor for a waiver of the requirement in paragraph (1). Such waiver may not permit less than 30 percent of the funds to be spent for such retraining services. The waiver may be granted in whole or in part if the substate grantee demonstrates that the worker readjustment program in the area will be consistent with the principle that dislocated workers be prepared for occupations or industries with long-term potential. The Governor shall prescribe criteria for the demonstration required by the previous sentence. “(3) An application for such a waiver shall be submitted at such time and in such form as the Governor may prescribe. The Governor shall provide an opportunity for public comment on the application. “(b) Needs-Related Payments and Supportive Services Limitation.— Not more than 25 percent of the funds expended under this title by any substate grantee or by the Governor may be used to provide needs-related payments and other supportive services. “(c) Administrative Cost Limitation.— Not more than 15 percent of the funds expended under this title by any substate grantee or by the Governor may be expended to cover the administrative cost of programs under this title. For purposes of this subsection, administrative cost does not include the cost of activities under section 314(b). “retraining services availability “Sec. 316. (a) Alternative Methods of Providing Retraining Services.—A substate grantee may provide retraining services described in section 314(d) to an eligible dislocated worker— “(1) by beginning such services promptly upon the worker’s application for the program under this title; “(2) by deferring the beginning of such services and providing the worker with a certificate of continuing eligibility in accordance with subsection (b) (1) and (2); or “(3) by permitting the worker to obtain such services from a service provider using such certificate in accordance with subsection (b)(3). “(b) Certification of Continuing Eligibility.— (1) A substate grantee may issue to any eligible dislocated worker who has applied for the program authorized in this part a certificate of continuing eligibility. Such a certificate of continuing eligibility may be effective for periods not to exceed 104 weeks. No such certificate shall include any reference to any specific amount of funds. Any such certificate shall state that it is subject to the availability of funds at the time that any such training services are to be provided. Acceptance of such a certificate shall not be deemed to be enrollment in training. “(2) Any individual to whom a certificate of continuing eligibility has been issued under paragraph (1) of this subsection shall remain eligible for the program authorized under this part for the period specified in the certificate, notwithstanding section 301(a), and may use the certificate in order to receive the retraining services, subject to the limitations contained in the certificate. 102 STAT. 1536 “(3) A substate grantee may provide training services through systems that permit eligible dislocated workers to use certificates of continuing eligibility to seek out and arrange their own retraining with service providers approved by that substate grantee. Retraining provided pursuant to the certificate shall be conducted under a grant, contract, or other arrangement between the substate grantee and the service provider. “functions of state job training coordinating council “Sec. 317. For purposes of this title, the State job training coordinating council shall— “(1) provide advice to the Governor regarding the use of funds under this title, including advice on— “(A) the designation of substate areas and substate grantees, and the procedures for the selection of representatives within such areas under section 312; and “(B) the methods for allocation and reallocation of funds, including the method for distribution of funds reserved under section 302(c)(2) and funds subject to reallocation under section 303(d); “(2) submit comments to the Governor and the Secretary on the basis of review of the State and substate programs under this title; “(3) review, and submit written comments on, the State plan (and any modification thereof) before its submission under section 311; “(4) review, and submit written comments on, each substate plan submitted to the Governor under section 313; and “(5) provide advice to the Governor regarding performance standards. “PART B— FEDERAL RESPONSIBILITIES “federal administration “Sec. 321. (a) Standards.— The Secretary shall promulgate standards for the conduct and evaluation of programs under this title. “(b) By-Pass Authority.— In the event that any State fails to submit a plan that is approved under section 311, the Secretary shall use the amount that would be allotted to that State to provide for the delivery in that State of the programs, activities, and services authorized by this title until the State plan is submitted and approved under that section. “federal delivery of dislocated worker services “Sec. 322. (a) General Authority.— The Secretary shall, with respect to programs required by this title— “(1) distribute funds to States in accordance with the requirements of section 302; “(2) provide funds to exemplary and demonstration programs on plant closings and worker dislocation; “(3) otherwise allocate discretionary funds to projects serving workers affected by multi-State or industry-wide dislocations and to areas of special need in a manner that efficiently targets resources to areas of most need, encourages a rapid response to economic dislocations, and promotes the effective use of funds; 102 STAT. 1537 “(4) monitor performance and expenditures and annually certify compliance with standards prescribed by the Secretary under section 106(g); “(5) conduct research and serve as a national clearinghouse for gathering and disseminating information on plant closings and worker dislocation; and “(6) provide technical assistance and staff training services to States, communities, businesses, and unions, as appropriate. “(b) Administrative Provisions.— The Secretary shall designate or create an identifiable dislocated workers unit or office to coordinate the functions of the Secretary under this title. “allowable activities “Sec. 323. (a) Circumstances and Activities for Use of Funds.— Amounts reserved for this part under section 302(a)(2) may be used to provide services of the type described in section 314 in the following circumstances: “(1) mass layoffs, including mass layoffs caused by natural disasters or Federal actions (such as relocations of Federal facilities) when the workers are not expected to return to their previous occupations; “(2) industrywide projects; “(3) multistate projects; “(4) special projects carried out through agreements with Indian tribal entities; “(5) special projects to address national or regional concerns; “(6) demonstration projects, including the projects described in section 324; “(7) to provide additional financial assistance to programs and activities provided by States and substate grantees under part A of this title; and “(8) to provide additional assistance under proposals for financial assistance that are submitted to the Secretary and approved by the Secretary after consultation with the Governor of the State in which the project is to operate. “(b) Use of Funds in Emergencies.— Amounts reserved for this part under section 302(a)(2) may also be used to provide services of the type described in section 314 whenever the Secretary (with agreement of the Governor) determines that an emergency exists with respect to any particular distressed industry or any particularly distressed area to provide emergency financial assistance to dislocated workers. The Secretary may make arrangements for the immediate provision of such emergency financial assistance for the purposes of this section with any necessary supportive documentation to be submitted at a date agreed to by the Governor and the Secretary. “(c) Staff Training and Technical Assistance.— (1) Amounts reserved for this part under section 302(a)(2) may be used to provide staff training and technical assistance services to States, communities, businesses and labor organizations, and other entities involved in providing adjustment assistance to workers. Applications for technical assistance funds shall be submitted in accordance with procedures issued by the Secretary. “(2) Not more than 5 percent of the funds reserved for this part in any fiscal year shall be used for the purpose of this subsection. 102 STAT. 1538 “(d) Training of Rapid Response Staffs.— Amounts reserved for this part under section 302(a)(2) shall be used to provide training of staff, including specialists, providing rapid response services. Such training shall include instruction in proven methods of promoting, establishing, and assisting labor-management committees. “demonstration programs “Sec. 324. (a) Authorized Programs.— From the amount reserved for this part under section 302(a)(2) for the fiscal years 1989, 1990, and 1991, not less than 10 percent of such amount shall be used for demonstration programs. Such demonstration programs may be up to three years in length, and shall include (but need not be limited to) at least two of the following demonstration programs: “(1) self-employment opportunity demonstration program; “(2) public works employment demonstration program; “(3) dislocated farmer demonstration program; and “(4) job creation demonstration program. “(b) Evaluation and Report.— The Secretary shall conduct or provide for an evaluation of the success of each demonstration program, and shall prepare and submit to the Congress a report of the evaluation not later than October 1, 1992, together with such recommendations, including recommendations for legislation, as the Secretary deems appropriate.”.