(4) require each comprehensive manpower plan to give special emphasis to the employment and training needs of persons who are from poverty families using as an index of poverty the minimum income per household of a given size, composition, and farm or nonfarm status, as set forth by the Social Security Administration;

(5) set forth priorities in terms of target groups, and varieties of programs established by the Secretary in light of national needs;

(6) set forth a program for providing placement services which will utilize the facilities and services of the State employment services as well as facilities and services from other sources, and which will make effective placement services available, not only to persons who have completed training under a comprehensive manpower plan, but also to other categories of persons;

(7) require that personal and educational and vocational counseling, testing, and evaluation be utilized to assure that each individual served will be provided appropriate services, and that followup services be provided to insure that training is effectively utilized by the trainee ;

(8) establish the criteria to be used in fixing training and other allowances and compensation for services;

(9) establish the criteria to be used in fixing the payments to be made to employers participating in on-the-job training and similar programs;

(10) require the utilization to the maximum extent feasible of public and private profit and nonprofit agencies and organizations, and of all the State and local agencies and organizations, which are capable of contributing to the program, with priority given to skills centers and other education and training programs operated or arranged through State and local educational agencies; and

(11) require the establishment and operation of a data system which will provide, in readily accessible form, statistical information sufficient to enable the administrators of the plan to evaluate the effectiveness of programs carried on under the plan and to determine means of improving their effectiveness.

COMPREHENSIVE MANPOWER PLANS

SEC. 7. (a) Any State which disires to receive a grant from funds allotted it under section 5 shall submit through the Governor thereof to the Secretary a comprehensive manpower plan developed pursuant to an agreement entered into under section 6, but no such plan shall be submitted until a public hearing has been held on the plan. The comprehensive manpower plan of a State must(1) provide that responsibility for carrying out the plan is placed in the Governor of the State;

(2) provide for as varied and extensive manpower programs (and related activities) and work experience programs as is consistent with the needs and resources of the State and with the amount of Federal assistance being provided;

(3) set forth the method of administration and the organizational structure to be used in carrying out the plan;

(4) meet the guidelines and standards prescribed by the Secretary under section 6;

(5) provide for coordination of the programs carried on by the State with those carried on by any metropolitan area any part of which lies within the State;

(6) take into consideration manpower programs carried on under title I of the Demonstration Cities and Metropolitan Development Act of 1966, the Appalachian Regional Development Act of 1965, the Public Works and Economic Development Act of 1965, or any other Federal or State law;

(7) set forth such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of, and accounting for, Federal funds paid to the State or metropolitan area (including any such funds paid by either of them to any other public or private agency) under this Act; and

(8) provide for making such reports, in such form and containing such information, as the Secretary may reasonably require to carry out his functions under this Act, and for keeping such records and for affording such access thereto as the Secretary may find necessary to assure the correctness and verification of such reports.

(b) The comprehensive manpower training plan of a State may include any (or all) of the following types of programs, services, or activities:

(1) A program for testing, counseling, and selecting for occupational training those unemployed or underemployed persons who cannot reasonably be expected to secure appropriate full-time employment without training.

(2) A special program for the testing, counseling, selection, and referral of youths for occupational training and further schooling, who because of inadequate educational background and work preparation are unable to qualify for and obtain employment without such training and schooling.

(3) A special program of testing, counseling, selection, and referral of persons forty-five years of age or older for occupational training and further schooling designed to meet the special problems faced by such persons in the labor market.

(4) Programs of training for persons who, though employed, are in need of additional skills.

(5) Programs for the attainment of basic education and communications and employment skills, by those eligible persons who indicate their intention to and will thereby be able to pursue, subsequently or concurrently, courses of occupational training of a type for which there appears to be a reasonable expectation of employment, or who have completed or do not need occupational training but do require such other preparation to render them employable.

(6) Programs to provide appropriate physical examinations, medical treatment, and prostheses for persons selected or otherwise eligible to be selected for training under this Act.

(7) Experimental programs for part-time training of persons, including employed persons, to meet critical skill shortages.

(8) Programs for on-the-job training needed to equip persons selected for training with the appropriate skills, and giving special consideration to on-the-job training programs which devote systematic effort to providing new opportunities for advancement through more systematic development of career ladders.

(9) Programs to provide part-time employment and useful work experience for students from low-income families who are in the ninth through twelfth grades of school (or are of an age equivalent to that of students in such grades) and who are in need of the earnings to permit them to resume or maintain attendance in school.

(10) Programs to provide unemployed, underemployed, or low-income persons (aged sixteen and over) with useful work and training (which must include sufficient basic education and institutional or on-the-job training) designed to assist those persons to develop their maximum occupational potential and to obtain regular competitive employment.

(11) Special programs which involve work activities directed to the needs of those chronically unemployed or underemployed poor who have poor employment prospects and are unable, because of age, lack of employment opportunity, or otherwise, to secure appropriate employment or training assistance under other programs, and which, in addition to other services provided, will enable such persons to participate in projects for the betterment or beautification of the community or area served by the program, including without limitation activities which will contribute to the management, conservation, or development of natural resources, recreational areas, Federal, State, and local government parks, highways, and other lands.

(12) Special programs which provided unemployed, underemployed, or lowincome persons with jobs leading to career opportunities, including new types of careers, in programs designed to improve the physical, social, economic, or cultural condition of the community or area served in fields including without limitation health, education, welfare, neighborhood redevelopment, and public safety, which provide maximum prospects for advancement and continued employment without Federal assistance, which give promise of contributing to the broader adoption of new methods of structuring jobs and new methods of providing job ladder opportunities, and which provide opportunities for further occupational training to facilitate career advancement.

(13) Special programs which concentrate work and training resources in urban and rural areas having large concentrations or proportions of low-income, unemployed persons, and within those rural areas having substantial outmigration to urban areas, which are appropriately focused to assure that work and training opportunities are extended to the most severely disadvantaged persons who can reasonably be expected to benefit from such opportunities, and which are supported by specific commitments of cooperation from private and public employers. (14) Special programs for referring persons who have finished training to employment opportunities in urban and suburban areas outside their own neighborhoods.

(15) Programs for needy persons who require work experience or special family and supportive services, as well as training, in order that they may be assisted to secure and hold regular employment in a competitive labor market. (16) Supportive and follow-up services to supplement work and training programs under this or other Acts including health services, counseling, day care for children, transportation assistance, and other special services necessary to assist individuals to achieve success in work and training programs and in employment.

(17) Employment centers and mobile employment service units to provide recruitment, counseling, and placement services, conveniently located in urban neighborhoods and rural areas and easily accessible to the most disadvantaged. (18) Programs of the type described in section 12 (a), with particular emphasis on programs involving intrastate and local employers.

(19) Programs to establish and operate, in cooperation with the State education and other appropriate State agencies, skills centers to provide basic education, employability, and communications skills, prevocational training, vocational and technical programs, and supplementary or related instruction for on-the-job training whether conducted at the jobsite or elsewhere.

(20) Programs to make relocation payments to allow unemployed persons to relocate themselves and their families in localities affording employment opportunities.

(21) Programs to provide guidance, counseling, testing, and job referral services to unemployed and underemployed persons.

(22) Programs to evaluate the effectiveness of other programs carried on under the plan.

(23) Programs to equip migrant and seasonal farmworkers through education and training to meet the changing demands in agricultural employment and to take advantage of opportunities for regular or permanent employment. (24) Programs under which a cooperative working relationship is developed between education and training institutions and private employers.

APPROVAL OF PLANS

SEC. 8. The Secretary shall not approve any comprehensive manpower plan of a State which fails to meet the requirements of this Act and the standards and guidelines prescribed by him under section 6. The Secretary shall not approve the comprehensive manpower plan of a State until the Secretary of Health, Education, and Welfare has given his approval of those aspects of the plan relating to institutional training, including the operation of skills centers. Any political subdivision dissatisfied with the comprehensive manpower plan submitted by the State shall have the right to appeal to the Secretary. The Secretary shall not approve such a plan until he has afforded each such political subdivision an opportunity for a hearing on its appeal.

ADMINISTRATION OF PLANS

SEC. 9. Whenever the Secretary, after reasonable notice and opportunity for a hearing to the appropriate official of the State which submitted a plan, finds (1) that the plan has been so changed that it no longer complies with the requirements of this Act or of the standards and guidelines prescribed under section 6; or

(2) that in the administration of the plan there is a failure to comply substantially with any such requirement; the Secretary shall notify such official that no further payments will be made with respect to such plan (or, in his discretion, further payments with respect thereto will be limited to portions thereof not affected by such failure); until he is satisfied that there will no longer be any failure to comply. Until he is so satisfied, the Secretary shall make no further payments with respect to such plan (or shall limit payments to portions thereof not affected by such failure).

DIRECT FUNDING BY SECRETARY

SEC. 10. Where a State fails to submit a comprehensive manpower plan to the Secretary within a reasonable time, or the Secretary disapproves such a plan or discontinues payments with respect to such a plan under the authority of section 9, he and the Secretary of Health, Education, and Welfare shall jointly formulate and carry out a comprehensive manpower plan in such State. Such a program shall meet the requirements of this Act applicable to plans submitted

by States, except that where the Secretary has discontinued payments with respect to a portion of a plan under section 9 the program which they carry out directly shall be similar in character to the portion of the plan with respect to which payments were discontinued. In carrying out this section where a State has failed to submit a plan or the Secretary has disapproved it, the State's allotment may be utilized. In carrying out this section where the Secretary has discontinued payments, the sums withheld may be utilized.

INCENTIVE GRANTS

SEC. 11. (a) In order to encourage States to expand and improve the programs, services, and activities provided under their comprehensive manpower plans, the Secretary may make incentive grants to States. An incentive grant may be made to any State which the Secretary finds has developed a comprehensive manpower plan which shows resourcefulness and imagination in making effective use of the manpower resources of the State and is carrying out such plan in a highly effective and efficient manner. An incentive grant may also be made to any State which makes expenditures from non-Federal sources in carrying out its comprehensive manpower plan. Such a grant may not exceed 75 per centum of the amount so expended. At the time he makes an incentive grant the Secretary shall make public a statement detailing the reasons he has made the finding required by this section. Incentive grants made to a State shall be used by it to supplement the funds paid to the State to carry out its comprehensive manpower program.

(b) There is authorized to be appropriated for making grants under this section the sum of $100,000,000 for the fiscal year 1972, $115,000,000 for the fiscal year 1973, $125,000,000 for the fiscal year 1974, and $150,000,000 for the fiscal year 1975. For each fiscal year thereafter only such sums may be appropriated as the Congress may hereafter authorize by law.

DIRECT GRANTS

SEC. 12. (a) The Secretary may utilize the sums reserved under section 4, either directly or through grants to or contracts with public and private agencies and organizations (including States and metropolitan areas), for the following types of programs, services, and activities:

(1) programs which, though eligible for inclusion in a comprehensive manpower plan can be effectively carried out only on a national or multistate basis;

(2) programs, services, and activities carried on under title I of the Manpower Development and Training Act of 1962: Provided, That special emphasis shall be placed on carrying out research projects showing promise of finding solutions to problems arising in carrying out this Act;

(3) programs, services, and activities which, though not included in a comprehensive manpower plan, will supplement such plans and meet needs which are uniquely national, interstate, or regional in character;

(4) programs to provide incentives to private employers, other than nonprofit organizations, to train or employ unemployed or low-income persons, including arrangements by direct contract, reimbursements to employers for a limited period when an employee might not be fully productive, payment for on-the-job counseling and other supportive services, payment of all or part of employer services, payment of all or part of employer costs of sending recruiters into urban and rural areas of high concentrations or proportions of unemployed or low-income persons, and payments to permit employers to provide employees resident in such areas with transportation to and from work or to reimburse such employees for such transportation;

(5) Programs, services, and activities supplementary to activities carried on under a comprehensive city demonstration program approved under title I of the Demonstration Cities and Metropolitan Development Act of 1966;

(6) educationally oriented projects (with the approval of the Secretary of Health, Education, and Welfare) where the Secretary of Health, Education, and Welfare finds that, in a manpower context, the educational community is significantly modifying its methods, or procedures, or is developing effective linkages with industry, labor organizations, and other groups or organizations; and

(7) experimental and demonstration programs of training and education for persons who are in correctional institutions and are in need thereof to obtain employment upon release.

(b) In carrying out this section the Secretary shall give special emphasis to programs meeting the needs of low-income persons who are chronically unemployed.

FUNCTIONS OF THE SECRETARY

SEC. 13. (a) In carrying out this Act, the Secretary is authorized and directed to use his authority under the Act of June 6, 1933 (the "Wagner-Peyser Act"), with a view to insuring that the activities of the United States Employment Service and of the systems of State employment offices are coordinated with activities carried on under this Act.

(b) The Secretary shall carry out research programs and demonstration and evaluation programs designed to assist States and metropolitan areas to make their programs more effective.

(c) The Secretary shall carry on a program for the continuing evaluation of the effectiveness of programs, services, and activities provided under this Act. In carrying out this subsection, the Secretary shall make maximum use of the data systems of States.

(d) The Secretary is authorized to make grants to States to assist them in preparing their comprehensive manpower plans, but the amount of such grant shall not exceed 90 per centum of the cost of such preparation.

(e) The Secretary shall make technical assistance available on a continuing basis to assist States in developing and carrying out their comprehensive manpower plans.

(f) 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 programs 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 employers to carry out the purposes of this section; but no special assignments shall be for a period of more than two years.

(g) There is authorized to be appropriated such sums as may be necessary to enable the Secretary to carry out his functions under this section and the functions transferred to him by section 18 for the fiscal year 1970, and each of the three succeeding fiscal years.

DEFINITIONS

SEC. 14. For purposes of this Act

(1) The term "Secretary" means the Secretary of Labor.

(2) The term "State" includes the District of Columbia, Puerto Rico, the Virgin Islands, American Samoa, Guam, and the Trust Territory of the Pacific Islands.

ADVANCE FUNDING

SEC. 15. To the end of affording the responsible State, local, and Federal officers concerned adequate notice of available Federal financial assistance for programs, services, and activities provided for under this Act, appropriations for grants, contracts, or other payments under this Act are authorized to be included in the appropriation Act for the fiscal year preceding the fiscal year for which they are available for obligation. In order to effect a transition to this method of timing appropriation action, the preceding sentence shall apply notwithstanding that its initial application under any such Act will result in the enactment in the same year (whether in the same appropriation Act or otherwise) of two separate appropriations, one for the then current fiscal year and one for the succeeding fiscal

year.

MAINTENANCE OF EFFORT

SEC. 16. No comprehensive manpower plan shall be approved under this Act unless the Secretary satisfies himself that the State has not reduced or is not reducing its own level of expenditures for programs of the type included under the plan, or expenditures for vocational education.

OTHER AGENCIES AND DEPARTMENTS

SEC. 17. (a) The Secretary and the Secretary of Health, Education, and Welfare shall enter into arrangements under which the Secretary of Health, Education, and Welfare will supervise and evaluate all instructional training provided under this Act so as to protect the United States against loss and to assure that the training provided is of high educational quality.