§1516. Performance standards

(a) Findings

The Congress recognizes that job training is an investment in human capital and not an expense. In order to determine whether that investment has been productive, the Congress finds that-

(1) it is essential that criteria for measuring the return on this investment be developed; and

(2) the basic return on the investment is to be measured by long-term economic self-sufficiency, increased employment and earnings, reductions in welfare dependency, and increased educational attainment and occupational skills.

(b) Subchapter II performance standards

(1) General objective

In prescribing performance standards for programs under parts A and C of subchapter II of this chapter, the Secretary shall ensure that States and service delivery areas will make efforts to increase services and positive outcomes for hard-to-serve individuals.

(2) Achievement of basic measures

In order to determine whether the basic measures described in subsection (a) of this section are achieved for programs under parts A and C of subchapter II of this chapter, the Secretary, in consultation with the Secretary of Education and the Secretary of Health and Human Services, shall prescribe performance standards.

(3) Factors for adult standards

The Secretary shall base the performance standards for adult programs under part A of subchapter II of this chapter on appropriate factors, which may include-

(A) placement in unsubsidized employment;

(B) retention for not less than 6 months in unsubsidized employment;

(C) an increase in earnings, including hourly wages;

(D) a reduction in welfare dependency; and

(E) acquisition of skills, including basic skills, required to promote continued employability in the local labor market (including attainment of the competency levels described in paragraph (5)), or acquisition of a high school diploma or the equivalent of the diploma, if the acquisition of such skills or diploma is in addition to obtaining one or more of the outcomes described in subparagraphs (A) through (D).

(4) Factors for youth standards

(A) In general

The Secretary shall base the performance standards for youth programs under part C of subchapter II of this chapter on appropriate factors described in paragraph (3), and on factors including-

(i) attainment of employment competencies (including attainment of the competency levels described in paragraph (5));

(ii) dropout prevention and recovery;

(iii) secondary and postsecondary school completion or the equivalent of such completion; and

(iv) enrollment in other training programs, apprenticeships, or postsecondary education, or enlistment in the Armed Forces.

(B) Variations

The Secretary may prescribe variations in the standards described in subparagraph (A) to reflect the differences between in-school and out-of-school programs.

(5) Competency levels

The private industry councils, in consultation with appropriate educational agencies, and, where appropriate, the private sector, labor organizations, and community-based organizations, shall establish youth and adult competency levels, based on such factors as entry level skills and other hiring requirements.

(6) Requirements

The performance standards described in paragraphs (3) and (4) shall include provisions governing-

(A) the base period prior to program participation that will be used for measurement of the factors in such paragraphs, as appropriate;

(B) a representative period after termination from the program that is a reasonable indicator of postprogram employment, earnings, and cash welfare payment reductions; and

(C) cost-effective methods for obtaining such data as are necessary to carry out this section and section 1732(d) of this title which, notwithstanding any other provision of law, may include access to earnings records, State employment security records, records collected under the Federal Insurance Contributions Act (chapter 21 of the Internal Revenue Code of 1986) [26 U.S.C. 3101 et seq.], records collected under the State program funded under part A of title IV of the Social Security Act [42 U.S.C. 601 et seq.], statistical sampling techniques, and similar records or measures, with appropriate safeguards to protect the confidentiality of the information obtained.

(7) Incentive grants

From funds available under section 1602(c)(1)(B) of this title, and under section 1642(c)(1)(B) of this title, for providing incentive grants under this paragraph, each Governor shall award incentive grants for programs under parts A and C of subchapter II of this chapter, other than programs under section 1604(d) of this title, to service delivery areas that-

(A) exceed the performance standards established by the Secretary under this subsection (except for the standards established under paragraph (8)) with respect to services to all participants;

(B) exceed the performance standards established by the Secretary under this subsection (except for the standards established under paragraph (8)) with respect to services to populations of hard-to-serve individuals;

(C) serve more than the minimum percentage of out-of-school youth required by section 1643(f) of this title;

(D) place participants in employment that-

(i) provides post-program earnings exceeding the applicable performance criteria; and

(ii) includes employer-assisted employment benefits, including health benefits, consistent with the requirements of section 1553(a)(4) of this title relating to subsidized employment; and

(E) exceed the performance standards established by the Governor under subsection (e) of this section for programs under subchapter II of this chapter, except that not more than 25 percent of the incentive grants shall be awarded on performance standards established under subsection (e) of this section.

(8) Program expenditures

The Secretary shall prescribe performance standards relating gross program expenditures to various performance measures under this subsection, excluding any cost per participant measure. The Governors shall not take performance standards prescribed under this paragraph into consideration in awarding incentive grants under paragraph (7).

(c) Subchapter III performance standards

(1) In general

The Secretary shall prescribe performance standards for programs under subchapter III of this chapter based on placement and retention in unsubsidized employment.

(2) Needs-related payments

In prescribing performance standards under paragraph (1), the Secretary shall make appropriate allowance for the difference in cost resulting from serving workers receiving needs-related payments under section 1661c(e) of this title.

(d) State variation of performance standards

(1) Authority of Governor

Each Governor shall prescribe, and report in the Governor's coordination and special services plan, within parameters established by the Secretary, variations in the standards issued under subsections (b) and (c) of this section based upon-

(A) specific economic, geographic, and demographic factors in the State and in service delivery areas and substate areas within the State;

(B) the characteristics of the population to be served;

(C) the demonstrated difficulties in serving the population; and

(D) the type of services to be provided.

(2) Responsibilities of Secretary

The Secretary shall-

(A) provide information and technical assistance on performance standards adjustments;

(B) collect data that identifies hard-to-serve individuals;

(C) provide guidance on setting performance standards at the service provider level that encourages increased service to such individuals; and

(D) review performance standards to ensure that such standards provide maximum incentive in serving such individuals.

(e) Additional State standards permitted

The Governor may prescribe performance standards for programs under subchapter II of this chapter and subchapter III of this chapter in addition to those standards established by the Secretary under subsections (b) and (c) of this section. Such additional standards may include criteria relating to establishment of effective linkages with other programs to avoid duplication and enhance the delivery of services, the provision of high quality services, and successful service to hard-to-serve individuals. The additional performance standards established for subchapter II of this chapter shall be reported in the Governor's coordination and special services plan.

(f) Subchapter IV standards

The Secretary shall prescribe performance standards for programs under parts A and B of subchapter IV of this chapter.

(g) Adjustment for special populations

The Secretary shall prescribe a system for variations in performance standards for special populations to be served, including Native Americans, migrant and seasonal farmworkers, disabled and Vietnam era veterans, including veterans who served in the Indochina Theater between August 5, 1964 and May 7, 1975, older individuals, including those served under section 1604(d) of this title, and offenders, taking into account their special circumstances.

(h) Modifications

(1) In general

The Secretary may modify the performance standards under this section not more often than once every 2 program years. Such modifications shall not be retroactive.

(2) Job Corps

Notwithstanding paragraph (1), the Secretary may modify standards relating to programs under part B of subchapter IV of this chapter each program year.

(i) Functions of NCEP

The National Commission for Employment Policy shall-

(1) advise the Secretary in the development of performance standards under this section for measuring results of participation in job training and in the development of parameters for variations of such standards referred to in subsection (d) of this section;

(2) evaluate the usefulness of such standards as measures of desired performance; and

(3) evaluate the impact of such standards (intended or otherwise) on the choice of who is served, what services are provided, and the cost of such services in service delivery areas.

(j) Failure to meet standards

(1) Uniform criteria

The Secretary shall establish uniform criteria for determining whether-

(A) a service delivery area fails to meet performance standards under this section; and

(B) the circumstances under which remedial action authorized under this subsection shall be taken.

(2) Technical assistance

Each Governor shall provide technical assistance to service delivery areas failing to meet performance standards under the uniform criteria established under paragraph (1)(A).

(3) Process for correction

Not later than 90 days after the end of each program year, each Governor shall report to the Secretary the final performance standards and performance for each service delivery area within the State, along with the plans of the Governor for providing the technical assistance required under paragraph (2).

(4) Reorganization plan

(A) Plan required for continued failure

If a service delivery area continues to fail to meet such performance standards for 2 consecutive program years, the Governor shall notify the Secretary and the service delivery area of the continued failure, and shall develop and impose a reorganization plan.

(B) Elements

Such plan may restructure the private industry council, prohibit the use of designated service providers, merge the service delivery area into one or more other existing service delivery areas, or make other changes as the Governor determines to be necessary to improve performance, including the selection of an alternative administrative entity to administer the program for the service delivery area.

(C) Alternative administrative entity selection

The alternative administrative entity described in subparagraph (B) may be a newly formed private industry council or any agency jointly selected by the Governor and the chief elected official of the largest unit of general local government in the service delivery area or substate area.

(5) Secretarial action

(A) Plan

If the Governor has not imposed a reorganization plan as required by paragraph (4) within 90 days of the end of the second program year in which a service delivery area has failed to meet its performance standards, the Secretary shall develop and impose such a plan.

(B) Recapture or withholding

The Secretary shall recapture or withhold an amount not to exceed one-fifth of the State administration set-aside allocated under section 1602(c)(1)(A) of this title and under section 1642(c)(1)(A) of this title, for the purposes of providing technical assistance under a reorganization plan imposed pursuant to subparagraph (A).

(6) Appeal by service delivery area

(A) Timing

A service delivery area that is the subject of a reorganization plan under paragraph (4) may, within 30 days after receiving notice thereof, appeal to the Secretary to rescind or revise such plan.

(B) Recapture or withholding

(i) Determination

If the Secretary determines, upon appeal under subparagraph (A), that the Governor has not provided appropriate technical assistance as required under paragraph (2), the Secretary shall recapture or withhold an amount not to exceed one-fifth of the State administration set-aside allotted under section 1602(c)(1)(A) of this title and under section 1642(c)(1)(A) of this title. The Secretary shall use funds recaptured or withheld under this subparagraph to provide appropriate technical assistance.

(ii) Basis

If the Secretary approved the technical assistance plan provided by the Governor under paragraph (2), a determination under this subparagraph shall only be based on failure to effectively implement such plan and shall not be based on the plan itself.

(7) Appeal by Governor

A Governor of a State that is subject to recapture or withholding under paragraph (5) or (6)(B) may, within 30 days of receiving notice thereof, appeal such withholding to the Secretary.

(k) Clarification or ¹ reference

For the purposes of this section, the term "employment" means employment for 20 or more hours per week.

( Pub. L. 97–300, title I, §106, Oct. 13, 1982, 96 Stat. 1333 ; Pub. L. 97–404, §1(b), Dec. 31, 1982, 96 Stat. 2026 ; Pub. L. 99–496, §15(b), Oct. 16, 1986, 100 Stat. 1266 ; Pub. L. 100–418, title VI, §6304(a), Aug. 23, 1988, 102 Stat. 1538 ; Pub. L. 100–628, title VII, §§713(b), 714(b), Nov. 7, 1988, 102 Stat. 3255 , 3256; Pub. L. 102–367, title I, §115(a), Sept. 7, 1992, 106 Stat. 1030 ; Pub. L. 104–193, title I, §110(n)(2), Aug. 22, 1996, 110 Stat. 2174 .)

Repeal of Section

Pub. L. 105–220, title I, §199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059 , provided that this section is repealed effective July 1, 2000.

References in Text

The Federal Insurance Contributions Act, referred to in subsec. (b)(6)(C), is act Aug. 16, 1954, ch. 736, §§3101, 3102, 3111, 3112, 3121 to 3128, 68A Stat. 415 , as amended, which is classified generally to chapter 21 (§3101 et seq.) of Title 26, Internal Revenue Code. For complete classification of this Act to the Code, see section 3128 of Title 26 and Tables.

The Social Security Act, referred to in subsec. (b)(6)(C), is act Aug. 14, 1935, ch. 531, 49 Stat. 620 , as amended. Part A of title IV of the Act is classified generally to part A (§601 et seq.) of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Amendments

1996-Subsec. (b)(6)(C). Pub. L. 104–193 substituted "records collected under the State program funded under part A of title IV of the Social Security Act," for "State aid to families with dependent children records,"

1992-Pub. L. 102–367 amended section generally, substituting subsecs. (a) to (k) for former subsecs. (a) to (h) which also related to performance standards for programs under this chapter.

1988-Subsec. (b)(5). Pub. L. 100–628, §714(b), added par. (5).

Subsec. (e). Pub. L. 100–628, §713(b), designated existing provision as par. (1) and added par. (2).

Pub. L. 100–418, §6304(a)(1), inserted reference to subsec. (g) of this section and directed the insertion of "and in substate areas" after "State", which was executed by making the insertion after "State" the first place it appeared to reflect the probable intent of Congress.

Subsec. (g). Pub. L. 100–418, §6304(a)(2), designated existing provisions as par. (1) and added par. (2).

1986-Subsec. (d)(3). Pub. L. 99–496 inserted reference to disabled and Vietnam era veterans, including veterans who served in the Indochina Theater between Aug. 5, 1964, and May 7, 1975.

1982-Subsec. (d)(3). Pub. L. 97–404 substituted "offenders" for "ex-offenders".

Effective Date of 1996 Amendment

Amendment by Pub. L. 104–193 effective July 1, 1997, with transition rules relating to State options to accelerate such date, rules relating to claims, actions, and proceedings commenced before such date, rules relating to closing out of accounts for terminated or substantially modified programs and continuance in office of Assistant Secretary for Family Support, and provisions relating to termination of entitlement under AFDC program, see section 116 of Pub. L. 104–193, as amended, set out as an Effective Date note under section 601 of Title 42, The Public Health and Welfare.

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–367 effective July 1, 1993, with Secretary of Labor required to issue revised performance standards under the amendments made by section 115 of Pub. L. 102–367 (amending this section and sections 1661 and 1662a of this title), as soon as Secretary determines sufficient data are available, but not later than July 1, 1994, except that with respect to the factor of retention in unsubsidized employment specified in subsec. (b)(3)(B) of this section, the requirement that such retention be for not less than 6 months is effective not later than July 1, 1995, see section 701(a) and (b) of Pub. L. 102–367, set out as an Effective Date of 1992 Amendment; Transition Provisions note under section 1501 of this title.

Effective Date of 1988 Amendment; Transition Provisions

Amendment by Pub. L. 100–418 effective for program years beginning on or after July 1, 1989, except as otherwise provided, see section 6305 of Pub. L. 100–418, formerly set out as an Effective Date; Transition Provisions note under section 1651 of this title.

Section Referred to in Other Sections

This section is referred to in sections 1511, 1514, 1518, 1602, 1604, 1633, 1642, 1661, 1662a, 1671, 1672 of this title; title 8 section 1522.

¹ So in original. Probably should be "of".