REQUIREMENTS FOR CONTRACTS

SEC. 202. Any such contract must contain assurances satisfactory to the Secretary that:

(a) the positions for which employees will be trained are positions that cannot with reasonable effort be filled by the employer with unemployed or underemployed workers already possessing such skills and willing to accept such employment;

(b) the selection of trainees shall be based upon merit, ability, and length of service, and that no person shall be selected as a trainee until such person has been in the employ of the employer for a period of not less than six months;

(c) the training content of the program is adequate, involves reasonable progression, and will result in the qualification of trainees for suitable employment in a recognized skill or occupation in the service of that employer and of other employers in the same industry;

(d) the training period is reasonable and consistent with periods customarily required for comparable training;

(e) adequate and safe facilities; and adequate personnel and records of attendance and progress are provided;

(f) successful completion of the employee's training program can reasonably be expected to result in an offer of employment in the employer's own enterprise in the occupation for which he will be trained at wage rates not less than those prevailing for the same or similar occupations in that industry;

(g) the training and placement of such employees is part of a program that can reasonably be expected to lead directly to the employment of an equivalent number of new employees in entry level employment; and

(h) the trainees are compensated by the employer at such rates, including periodic increases, as may be deemed reasonable under regulations hereinafter authorized, considering such factors as industry practice and trainee proficiency, and that in no event shall the wages or employment benefits of any trainee be less than those received by him immediately before his starting such training program.

PAYMENTS TO EMPLOYERS

SEC. 203. Such contracts shall provide for payment to the employer undertaking a training program under this title in an amount equal to

(a) ninety per centum of the instructional expense, other ordinary and necessary training costs, and trainee wage payments for the time spent in training less the value of productive services rendered by such trainee, plus (b) a bonus payment to reward the efforts of employers whose programs under this title have resulted in substantial upgrading and high retention, to be computed as follows:

(1) at the end of the first twelve months following the completion of a program authorized under this title, twenty per centum of the sum arrived at by multiplying the number of employees upgraded under such program by the average increase in annual earnings of these upgraded employees; and

(2) at the end of the second twelve months following the completion of a program authorized under this title, ten per centum of the sum arrived at by multiplying the number of employees upgraded under such program by the average increase in annual earnings of these upgraded employees.

MANPOWER UTILIZATION STUDIES

SEC. 204. The Secretary is authorized to provide financial support for studies of the utilization of manpower and of job design by any employer or group of employers in industries where there are a large number of unskilled employees, with a view to redesigning and rearranging the work patterns involved in the jobs, so that career ladders may be created where they do not exist, or are clearly inadequate.

TITLE III-PUBLIC SERVICE EMPLOYMENT

CONTRACTS FOR PUBLIC SERVICE EMPLOYMENT

SEC. 301. The Secretary may contract with any Federal, State, or local governmental agency, or with any private nonprofit organization, to provide useful public service employment to unemployed persons.

REQUIREMENTS FOR CONTRACTS

SEC. 302. Each contract entered into under section 301 shall provide that(a) all persons employed thereunder, other than necessary technical, supervisory, and administrative personnel, will be selected from among eligible unemployed persons;

(b) to the maximum extent possible, technical, supervisory, and administrative personnel shall be recruited from among eligible unemployed persons;

(c) persons employed under such contracts will be paid at rates comparable to the rates of pay prevailing in the same labor market area for persons employed in similar occupations, but in no event shall any person employed under such contract be paid at a rate less than that prescribed by section 6(a)(1) of the Fair Labor Standards Act of 1938, as amended; and (d) all persons employed under such contracts will be assured of workman's compensation, retirement, health insurance, unemployment insurance, and other benefits at the same levels and to the same extent as other employees of the contractor, and to working conditions no less favorable than such other employees enjoy.

INFORMATION FOR EMPLOYEES

SEC. 303. Every person employed under contract under section 301 shall be advised, prior to entering upon employment, of his rights and benefits in connection with such employment.

ENTITLEMENT TO EMPLOYEE BENEFITS AND PROTECTION

SEC. 304. No contract shall be entered into under section 301 with a contractor who is, or whose employees are, under State law, exempted from the operation of the State workmen's compensation or unemployment compensation laws, generally applicable to employees, unless the contractor shall undertake to provide either through insurance by a recognized carrier, or by self-insurance, as allowed by State law, that the persons employed under the contract, shall enjoy workmen's compensation and unemployment compensation coverage equal to that provided by law for covered employment.

MAINTENANCE OF EFFORT

SEC. 305. (a) No contract shall be entered into under section 301 unless the Secretary determines that the execution of the contract will result in an increase in employment opportunities over those which would otherwise be available and that it will not result in a reduction in the employment and labor costs of the contractor or the displacement of persons currently employed, including partial displacement resulting from a reduction in hours of work or wages or employment benefits.

(b) Where a labor organization represents employees who are engaged in similar work to that performed under the contract in the same labor market area, such organization shall be notified by the Secretary prior to the awarding of the contract.

SAFE AND HEALTHFUL WORKING CONDITIONS

SEC. 306. All contractors under section 301 shall provide their employees with safe and healthful working conditions.

EVALUATION OF CONTRACT PROPOSALS

SEC. 307. In evaluating contract proposals received under this title, the Secretary shall consider the cost to the Government in relation to

(a) the number of eligible unemployed persons who will be provided with suitable employment under the contract;

(b) the need of the community for the services to be provided under the contract;

(c) the nature and extent of unemployment in the community in which the contract is to be performed;

(d) the extent to which employment under the contract will prepare eligible unemployed persons for regular private or public employment or for other programs conducted pursuant to this Act;

(e) the degree to which effective linkages to other programs under this Act are provided so that enrollees are able to secure needed training and other services necessary to prepare them for regular private or public employment; and

(f) the extent to which effective systems have been developed to provide priority to enrollees for entry into occupational training or directly controlled employer training programs designed to lead to regular employement.

PREFERENCE

SEC. 308. (a) Preference shall be given to any prospective contractor who is operating an upgrading program authorized in title II and is prepared to assure maximum opportunity for enrollees to qualify for the entry level positions that become available as a consequence of the upgrading program.

(b) Preference shall also be given to prospective contractors in accordance with the proportion of the total cost they are prepared to assume.

OBLIGATIONS OF THE SECRETARY TO ENROLLEES

SEC. 309. The Secretary shall on behalf of the enrollees be responsible for(a) assuring that every reasonable opportunity to find suitable regular employment or to enter a program authorized by title I has been explored before the individual is certified for public service employment; and

(b) maintaining a continuing review of the status of each enrollee to assure that he is receiving consideration for referral to suitable regular employment or to programs authorized by title I.

DEFINITIONS

SEC. 310. For the purposes of this title

(a) The term "eligible unemployed person" means any individual aged eighteen to sixty-five, inclusive, who has demonstrated that he is able and willing to work and (A) has been unemployed for five or more weeks, or (B) is employed on a part-time basis, though able and willing to accept full-time employment.

(b) The term "part-time basis" means less than thirty-five hours a week for a continuous period of ten weeks or more.

(c) The term "private nonprofit organization" means any nonprofit educational institution, or any private nonprofit hospital, or any private nonprofit organization certified by the Secretary to be engaged in appropriate public service activities in the community or area to be served.

TITLE IV-EVALUATION; TECHNICAL ASSISTANCE;
STAFF DEVELOPMENT

STAFF DEVELOPMENT

SEC. 401. (a) In carrying out his duties under this Act, the Secretary shall: (1) Survey, at regular intervals, the various training programs and opportunities available to or utilized by staff of manpower service programs, including both managerial and technical staff.

(2) Analyze the manpower programs, operating or planned, including the conceptual basis, the operating structure, and the clientele to be served, in order to determine current and future staff training requirements thus correcting or avoiding deficiencies in staff performance and enhancing the impact of programs. (3) Plan for and provide directly or by contract an integrated system of short term and intermittent staff training and instruction in managerial and technical matters relating to the conduct of manpower training programs and services, including but not limited to on-the-job training, the establishment and maintenance of fellowships and traineeships, exchange programs, and such other devices as are deemed necessary or appropriate. The staff training system thus established shall be aimed at and include manpower training and service staff at Federal, State, and local levels funded directly or indirectly by this Act and special attention shall be given to the utilization of this staff training system in a manner which will increase the number and effectiveness of previously disadvantaged persons serving in career staff capacities. Training under this section shall provide for such stipends and allowances (including travel and subsistence allowances) as may be deemed necessary, except that no such training or instruction (or fellowship or scholarship) shall be provided for any one course of study for a period in excess of four years.

TECHNICAL ASSISTANCE

SEC. 402. The Secretary shall

(a) Plan for, establish, and maintain, directly and through contracts, a program of technical assistance to public and private agencies, institutions, and employers in order to assist such organizations in operating programs more effectively and providing services under this Act, in the most effective and efficient manner possible.

(b) Provide for, directly and through contract, the development and distribution of technical manuals and guides in order to assure the early dissemination of information concerning advanced or improved techniques related to manpower services and their delivery. Such information shall include techniques developed both as a result of this Act and through other resources.

(c) Make, upon appropriate request, the special assignment of personnel to public or private agencies and employers to provide technical guidance with regard to programs funded under this Act; but no such assignments shall be for a period of more than two year.

(d) Without regard to the civil service laws or the classification provisions of title 5, United States Code, employ highly specialized or qualified personnel from public or private agencies and institutions, and assign them to units of the Department engaged in work under this section, for purposes of technical guidance or assistance. Such special assignments shall be limited to five per year and shall not exceed nine months in any two years for any individual and such persons shall not hold, or exercise the authority of, any policy or supervisory position. The Secretary may arrange for payments for subsistence, travel, and wage or salaries for individuals thus assigned: Provided, That such wage or salary payments shall not exceed the wage or salary that said individuals would otherwise receive had the assignment not been made.

SEC. 403. The Secretary shall

EVALUATION

(a) Provide for the systematic evaluation of the management and impact of manpower programs and services provided under this Act. Such evaluation may be conducted directly or by contract and shall include the comprehensive analysis of programs and analyses of particular program or service components, cost effectiveness, and impact upon and receptivity of the trainee and the community. (b) Compile the findings of such evaluations, with the recommendations for corrective action and a list of such actions as are implemented. This compilation, together with such supportive documents as may be required, shall be submitted by him to Congress annually by April 1.

(c) Allocate 1 per centum of the sums appropriated in any fiscal year to carry out titles I, II, and III for the purposes of this section.

TITLE V-MANPOWER RESEARCH AND DEVELOPMENT

SEC. 501. For the purspose of achieving the objectives set forth in this Act, the Secretary shall

(a) Conduct (directly, or through grants or contracts) permanent and ongoing programs of research and evaluation of

(1) the impact, benefits and problems created by technological progress and other changes in the structure of production and demand on the use of the Nation's human resources;

(2) practices of employers and labor organizations which tend to impede or facilitate the vertical, lateral, or geographical mobility of workers; and (3) the adequacy of the Nation's public and private manpower development efforts, not limited to those carried on under this Act, to meet foreseeable manpower needs.

(b) Establish a program of experimental, developmental, demonstration, and pilot projects, directly, or through grants or contracts, for the purpose of improving the techniques and demonstrating the effectiveness of specialized methods of achieving the objectives of this Act. In carrying out such programs. the Secretary may, where appropriate consult with other agencies of the United States Government.

SEC. 502. The Secretary, serving as the President's principal adviser on manpower, shall report to the President on the manpower implications of the Federal

budget, and shall make recommendations to the President in regard to the budget and to manpower programs generally.

SEC. 503. In carrying out the responsibilities under this Act, the Secretary shall provide, directly or through grants, contracts, or other arrangements, training for specialized or other personnel and technical assistance which is needed in connection with the pograms established under this Act or which otherwise pertains to the purposes of this Act. Upon request, the Secretary may make special assignments of personnel to public or private agencies, institutions, or the Vocational Rehabilitation Act, the Demonstration Cities, and Metropolitan Development Act of 1966, and other relevant Federal statutes.

LABOR MARKET INFORMATION AND JOB MATCHING PROGRAM

SEC. 504. (a) The Secretary shall develop a comprehensive system of labor market information on a National, State, local, or other appropriate basis, including but not limited to information regarding

(1) The nature and extent of impediments to the maximum development of individual employment potential including the number and characteristics of all persons requiring manpower services.

(2) Job opportunities and skill requirements. (3) Labor supply in various skills.

(4) Occupational outlook and employment trends in various occupations, and (5) In cooperation and after consultation with the Secretary of Commerce, economic and business development and location trends. Information collected under this subsection shall be developed and made available in a timely fashion in order to meet in a comprehensive manner the needs of public and private users, including the need for such information in recruitment, counseling, education, training, placement, job development, and other appropriate activities under this Act and under the Economic Opportunity Act of 1964, the Social Security Act, the Public Works and Economic Development Act of 1965 the Wagner-Peyser Act, the Vocational Education Act of 1963, the Vocational Rehabilitation Act, the Demonstration Cities and Metropolitan Development Act of 1966, and other relevant Federal statutes.

(b) The Secretary shall develop and publish on a regular basis information on available job opportunities throughout the United States on a National, State, local, or other appropriate basis for use in public and private job placement and related activities and in connection with job matching programs conducted pursuant to this subsection. The Secretary is directed to develop and establish a program for matching the qualifications of unemployed, underemployed, and lowincome persons with employer requirements and job opportunities on a National, State, local, or other appropriate basis. Such programs should be designed to provide a quick and direct means of communication among local recruitment, job training and placement agencies and organizations, and between such agencies and organizations on a National, State, local, or other appropriate basis, with a view to the referral and placement of such persons in jobs. In the development of such a program, the Secretary shall make maximum possible use of electronic data processing and telecommunication systems for the storage, retrieval, and communication of job and worker information.

(c) The Secretary is authorized to and shall plan, establish, and operate, directly or through contract, an information service, to make available to agencies, organizations, and other groups and persons concerned with manpower programs and services, information on resources, techniques, and concepts useful in the conduct of training programs covered by this Act. Such information shall include that derived from research, experimental and demonstration programs, and the evaluated experience of Federal, State, and local operations. The information shall be so designed as to be helpful in the establishment and improvement of training programs and related activities covered under titles I, II, and III.

SEC. 505. Not less than 2 per centum of the sums appropriated in any fiscal year to carry out titles, I, II, and III of this Act shall be available only for carrying out the provisions of this title.

SEC. 506. The Secretary shall make such reports to the President as he shall deem appropriate or the President shall require and the President shall submit to the Congress, not later than April 1 of each year (beginning not less than nine months after the effective date of this Act) a report pertaining to manpower requirements, resources, utilization, and training.