S.Amdt. 2650

SA 2650. Mr. PORTMAN submitted an amendment intended to be proposed
to amendment SA 2631 proposed by Mr. Reid (for Mr. Reed) to the bill S.
1845, to provide for the extension of certain unemployment benefits,
and for other purposes; which was ordered to lie on the table; as
follows:

Add at the end the following:

TITLE II--WORKFORCE DEVELOPMENT

SEC. 201. SHORT TITLE.

This title may be cited as the ``Careers through
Responsive, Efficient, and Effective Retraining Act.''.

SEC. 202. 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:
``(54) Credential.--
``(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. If a
credential is not yet available for a certain skill that is
so sought or accepted, completion of an industry-recognized
training program shall be considered to be an industry-
recognized credential, for the purposes of this paragraph.
``(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.
``(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.
``(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.''.
(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--
(1) by redesignating clauses (ii) through (iv) as clauses
(iii) through (v), respectively; and
(2) inserting after clause (i) the following:
``(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;''.
(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:
``(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.
``(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).''.
(d) State Administration.--
(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--
(A) in clause (ii), by striking ``and'' at the end;
(B) in clause (iii), by striking the period and inserting
``; and''; and
(C) by adding at the end the following:
``(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
(which may be accreditation by a State-recognized, third
party accrediting agency) as the Governor (in consultation
with representatives of the relevant industry sectors and
labor groups) shall establish not later than 6 months after
the date of enactment of the Careers through Responsive,
Efficient, and Effective Retraining Act.''.
(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 (which may be
accreditation by a State-recognized, third party accrediting
agency) as the Governor (in consultation with representatives
of the relevant industry sectors and labor groups) 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''.
(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:
``(j) Report on Industry-recognized Credentials.--
``(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.
``(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.
``(3) Availability.--The Secretary shall make the report
available and easily searchable on a website.
``(4) Rule of construction.--Nothing in this subsection
shall be construed as an official endorsement of a credential
by the Department of Labor.''.

SEC. 203. 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:

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

``(a) Establishment.--
``(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 and at least 1 non-rural State, to participate in
the pilot program by carrying out a Pay for Performance State
program.
``(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.
``(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.
``(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.
``(c) Implementation.--
``(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.
``(2) Amount.--The amount reserved under paragraph (1)
shall be--
``(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; and
``(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

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the funds described in paragraphs (2) and (3) of section
222(a)) for the fiscal year involved.
``(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.
``(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).
``(f) Evaluations.--
``(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.
``(2) Contents.--For each Pay for Performance State
program, the entity shall evaluate the program design and
performance on the outcome measures, evaluate (wherever
possible) the level of satisfaction with the program among
employers and employees benefiting from the program, 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.
``(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.
``(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.
``(h) Performance.--
``(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.
``(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).''.
(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:
``(e) Pay for Performance Plans.--
``(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.
``(2) Contents.--The Pay for Performance plan shall, with
respect to the State program--
``(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;
``(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);
``(C) specify employment placement, employment retention,
and earnings outcome measures and timetables for each target
population;
``(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 (where the quality of the program leading to the
credential or standard is recognized by the State or local
area involved), or State licensing requirements;
``(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;
``(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 or is an excepted participant described in
subparagraph (G)(i), according to the timetables described in
subparagraph (C), which amount--
``(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;
and
``(ii) may vary by target population;
``(G) provide assurances that--
``(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, except for a
participant who does not achieve the outcome measures through
no fault of the provider, as determined by the Governor in
consultation with the head of the State board, relevant local
boards, and at least 1 representative of the State's
providers of training services; and
``(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; and
``(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--
``(i) developing partnerships with local employers; and
``(ii) seeking financial support and volunteer services
from private sector sources.
``(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.''.
(c) Conforming Amendments.--
(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.
(2) Funding.--Section 223(a) of the Workforce Investment
Act of 1998 (20 U.S.C. 9223(a)) is amended--
(A) by redesignating paragraph (8) as paragraph (12), and
moving that paragraph to the end of that section 223(a); and
(B) by inserting after paragraph (7) the following:
``(8) Providing training services in accordance with
section 112A(c).''.

SEC. 204. PROVIDING A JOB TRAINING REORGANIZATION PLAN FOR
THE FEDERAL WORKFORCE INVESTMENT SYSTEM.

(a) Definitions.--In this section:
(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.
(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).
(3) Individual with a barrier to employment.--The term
``individual with a barrier to employment'' means a job
seeker who--
(A) is economically disadvantaged;
(B) has limited English proficiency;
(C) requires remedial education;
(D) is an older worker;
(E) is an individual who has completed a sentence for a
criminal offense; or
(F) has another barrier to employment, as defined by the
Director of the Office of Management and Budget.
(b) Reorganization Plan.--
(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, heads of the affected Federal departments and
agencies, local workforce investment boards, businesses,
workforce advocates and community organizations, labor
organizations, and relevant education-related organizations.
(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.

SEC. 205. USING THE NATIONAL DIRECTORY OF NEW HIRES
INFORMATION TO ASSIST IN ADMINISTRATION OF
WORKFORCE INVESTMENT ACT OF 1998 PROGRAMS.

Section 453(j) of the Social Security Act (42 U.S.C.
653(j)) is amended by adding at the end the following:
``(12) Information comparisons and disclosure to assist in
administration of workforce investment act programs.--
``(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.

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``(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.
``(C) Use and disclosure of information by state
agencies.--
``(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).
``(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.
``(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.
``(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.
``(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.''.
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