
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 29USC2871]

 
                             TITLE 29--LABOR
 
                CHAPTER 30--WORKFORCE INVESTMENT SYSTEMS
 
     SUBCHAPTER II--STATEWIDE AND LOCAL WORKFORCE INVESTMENT SYSTEMS
 
                       Part F--General Provisions
 
Sec. 2871. Performance accountability system


(a) Purpose

    The purpose of this section is to establish a comprehensive 
performance accountability system, comprised of the activities described 
in this section, to assess the effectiveness of States and local areas 
in achieving continuous improvement of workforce investment activities 
funded under this subchapter, in order to optimize the return on 
investment of Federal funds in statewide and local workforce investment 
activities.

(b) State performance measures

                           (1) In general

        For each State, the State performance measures shall consist 
    of--
            (A)(i) the core indicators of performance described in 
        paragraph (2)(A) and the customer satisfaction indicator of 
        performance described in paragraph (2)(B); and
            (ii) additional indicators of performance (if any) 
        identified by the State under paragraph (2)(C); and
            (B) a State adjusted level of performance for each indicator 
        described in subparagraph (A).

                    (2) Indicators of performance

        (A) Core indicators of performance

            (i) In general

                The core indicators of performance for employment and 
            training activities authorized under section 2864 of this 
            title (except for self-service and informational activities) 
            and (for participants who are eligible youth age 19 through 
            21) for youth activities authorized under section 2854 of 
            this title shall consist of--
                    (I) entry into unsubsidized employment;
                    (II) retention in unsubsidized employment 6 months 
                after entry into the employment;
                    (III) earnings received in unsubsidized employment 6 
                months after entry into the employment; and
                    (IV) attainment of a recognized credential relating 
                to achievement of educational skills, which may include 
                attainment of a secondary school diploma or its 
                recognized equivalent, or occupational skills, by 
                participants who enter unsubsidized employment, or by 
                participants who are eligible youth age 19 through 21 
                who enter postsecondary education, advanced training, or 
                unsubsidized employment.
            (ii) Core indicators for eligible youth

                The core indicators of performance (for participants who 
            are eligible youth age 14 through 18) for youth activities 
            authorized under section 2854 of this title, shall include--
                    (I) attainment of basic skills and, as appropriate, 
                work readiness or occupational skills;
                    (II) attainment of secondary school diplomas and 
                their recognized equivalents; and
                    (III) placement and retention in postsecondary 
                education or advanced training, or placement and 
                retention in military service, employment, or qualified 
                apprenticeships.

        (B) Customer satisfaction indicators

            The customer satisfaction indicator of performance shall 
        consist of customer satisfaction of employers and participants 
        with services received from the workforce investment activities 
        authorized under this subchapter. Customer satisfaction may be 
        measured through surveys conducted after the conclusion of 
        participation in the workforce investment activities.

        (C) Additional indicators

            A State may identify in the State plan additional indicators 
        for workforce investment activities authorized under this 
        subchapter.

                      (3) Levels of performance

        (A) State adjusted levels of performance for core indicators and 
                customer satisfaction indicator

            (i) In general

                For each State submitting a State plan, there shall be 
            established, in accordance with this subparagraph, levels of 
            performance for each of the core indicators of performance 
            described in paragraph (2)(A) and the customer satisfaction 
            indicator described in paragraph (2)(B) for workforce 
            investment activities authorized under this subchapter. The 
            levels of performance established under this subparagraph 
            shall, at a minimum--
                    (I) be expressed in an objective, quantifiable, and 
                measurable form; and
                    (II) show the progress of the State toward 
                continuously improving in performance.
            (ii) Identification in State plan

                Each State shall identify, in the State plan submitted 
            under section 2822 of this title, expected levels of 
            performance for each of the core indicators of performance 
            and the customer satisfaction indicator of performance, for 
            the first 3 program years covered by the State plan.
            (iii) Agreement on State adjusted levels of 
                    performance for first 3 years

                In order to ensure an optimal return on the investment 
            of Federal funds in workforce investment activities 
            authorized under this subchapter, the Secretary and each 
            Governor shall reach agreement on levels of performance for 
            each of the core indicators of performance and the customer 
            satisfaction indicator of performance, for the first 3 
            program years covered by the State plan, taking into account 
            the levels identified in the State plan under clause (ii) 
            and the factors described in clause (iv). The levels agreed 
            to under this clause shall be considered to be the State 
            adjusted levels of performance for the State for such years 
            and shall be incorporated into the State plan prior to the 
            approval of such plan.
            (iv) Factors

                The agreement described in clause (iii) or (v) shall 
            take into account--
                    (I) the extent to which the levels involved will 
                assist the State in attaining a high level of customer 
                satisfaction;
                    (II) how the levels involved compare with the State 
                adjusted levels of performance established for other 
                States, taking into account factors including 
                differences in economic conditions, the characteristics 
                of participants when the participants entered the 
                program, and the services to be provided; and
                    (III) the extent to which such levels involved 
                promote continuous improvement in performance on the 
                performance measures by such State and ensure optimal 
                return on the investment of Federal funds.
            (v) Agreement on State adjusted levels of 
                    performance for 4th and 5th years

                Prior to the 4th program year covered by the State plan, 
            the Secretary and each Governor shall reach agreement on 
            levels of performance for each of the core indicators of 
            performance and the customer satisfaction indicator of 
            performance, for the 4th and 5th program years covered by 
            the State plan, taking into account the factors described in 
            clause (iv). The levels agreed to under this clause shall be 
            considered to be the State adjusted levels of performance 
            for the State for such years and shall be incorporated into 
            the State plan.
            (vi) Revisions

                If unanticipated circumstances arise in a State 
            resulting in a significant change in the factors described 
            in clause (iv)(II), the Governor may request that the State 
            adjusted levels of performance agreed to under clause (iii) 
            or (v) be revised. The Secretary, after collaboration with 
            the representatives described in subsection (i) of this 
            section, shall issue objective criteria and methods for 
            making such revisions.

        (B) Levels of performance for additional indicators

            The State may identify, in the State plan, State levels of 
        performance for each of the additional indicators described in 
        paragraph (2)(C). Such levels shall be considered to be State 
        adjusted levels of performance for purposes of this chapter.

(c) Local performance measures

                           (1) In general

        For each local area in a State, the local performance measures 
    shall consist of--
            (A)(i) the core indicators of performance described in 
        subsection (b)(2)(A) of this section, and the customer 
        satisfaction indicator of performance described in subsection 
        (b)(2)(B) of this section, for activities described in such 
        subsections, other than statewide workforce investment 
        activities; and
            (ii) additional indicators of performance (if any) 
        identified by the State under subsection (b)(2)(C) of this 
        section for activities described in such subsection, other than 
        statewide workforce investment activities; and
            (B) a local level of performance for each indicator 
        described in subparagraph (A).

                   (2) Local level of performance

        The local board, the chief elected official, and the Governor 
    shall negotiate and reach agreement on the local levels of 
    performance based on the State adjusted levels of performance 
    established under subsection (b) of this section.

                         (3) Determinations

        In determining such local levels of performance, the local 
    board, the chief elected official, and the Governor shall take into 
    account the specific economic, demographic, and other 
    characteristics of the populations to be served in the local area.

(d) Report

                           (1) In general

        Each State that receives an allotment under section 2852 or 2862 
    of this title shall annually prepare and submit to the Secretary a 
    report on the progress of the State in achieving State performance 
    measures, including information on the levels of performance 
    achieved by the State with respect to the core indicators of 
    performance and the customer satisfaction indicator. The annual 
    report also shall include information regarding the progress of 
    local areas in the State in achieving local performance measures, 
    including information on the levels of performance achieved by the 
    areas with respect to the core indicators of performance and the 
    customer satisfaction indicator. The report also shall include 
    information on the status of State evaluations of workforce 
    investment activities described in subsection (e) of this section.

                     (2) Additional information

        In preparing such report, the State shall include, at a minimum, 
    information on participants in workforce investment activities 
    authorized under this subchapter relating to--
            (A) entry by participants who have completed training 
        services provided under section 2864(d)(4) of this title into 
        unsubsidized employment related to the training received;
            (B) wages at entry into employment for participants in 
        workforce investment activities who entered unsubsidized 
        employment, including the rate of wage replacement for such 
        participants who are dislocated workers;
            (C) cost of workforce investment activities relative to the 
        effect of the activities on the performance of participants;
            (D) retention and earnings received in unsubsidized 
        employment 12 months after entry into the employment;
            (E) performance with respect to the indicators of 
        performance specified in subsection (b)(2)(A) of this section of 
        participants in workforce investment activities who received the 
        training services compared with the performance of participants 
        in workforce investment activities who received only services 
        other than the training services (excluding participants who 
        received only self-service and informational activities); and
            (F) performance with respect to the indicators of 
        performance specified in subsection (b)(2)(A) of this section of 
        recipients of public assistance, out-of-school youth, veterans, 
        individuals with disabilities, displaced homemakers, and older 
        individuals.

                    (3) Information dissemination

        The Secretary--
            (A) shall make the information contained in such reports 
        available to the general public through publication and other 
        appropriate methods;
            (B) shall disseminate State-by-State comparisons of the 
        information; and
            (C) shall provide the appropriate congressional committees 
        with copies of such reports.

(e) Evaluation of State programs

                           (1) In general

        Using funds made available under this subchapter, the State, in 
    coordination with local boards in the State, shall conduct ongoing 
    evaluation studies of workforce investment activities carried out in 
    the State under this subchapter in order to promote, establish, 
    implement, and utilize methods for continuously improving the 
    activities in order to achieve high-level performance within, and 
    high-level outcomes from, the statewide workforce investment system. 
    To the maximum extent practicable, the State shall coordinate the 
    evaluations with the evaluations provided for by the Secretary under 
    section 2917 of this title.

                             (2) Design

        The evaluation studies conducted under this subsection shall be 
    designed in conjunction with the State board and local boards and 
    shall include analysis of customer feedback and outcome and process 
    measures in the statewide workforce investment system. The studies 
    may include use of control groups.

                             (3) Results

        The State shall periodically prepare and submit to the State 
    board, and local boards in the State, reports containing the results 
    of evaluation studies conducted under this subsection, to promote 
    the efficiency and effectiveness of the statewide workforce 
    investment system in improving employability for jobseekers and 
    competitiveness for employers.

(f) Fiscal and management accountability information systems

                           (1) In general

        Using funds made available under this subchapter, the Governor, 
    in coordination with local boards and chief elected officials in the 
    State, shall establish and operate a fiscal and management 
    accountability information system based on guidelines established by 
    the Secretary after consultation with the Governors, local elected 
    officials, and one-stop partners. Such guidelines shall promote 
    efficient collection and use of fiscal and management information 
    for reporting and monitoring the use of funds made available under 
    this subchapter and for preparing the annual report described in 
    subsection (d) of this section.

                          (2) Wage records

        In measuring the progress of the State on State and local 
    performance measures, a State shall utilize quarterly wage records, 
    consistent with State law. The Secretary shall make arrangements, 
    consistent with State law, to ensure that the wage records of any 
    State are available to any other State to the extent that such wage 
    records are required by the State in carrying out the State plan of 
    the State or completing the annual report described in subsection 
    (d) of this section.

                         (3) Confidentiality

        In carrying out the requirements of this Act, the State shall 
    comply with section 1232g of title 20.

(g) Sanctions for State failure to meet State performance measures

                             (1) States

        (A) Technical assistance

            If a State fails to meet State adjusted levels of 
        performance relating to indicators described in subparagraph (A) 
        or (B) of subsection (b)(2) of this section for a program for 
        any program year, the Secretary shall, upon request, provide 
        technical assistance in accordance with section 2915 of this 
        title, including assistance in the development of a performance 
        improvement plan.

        (B) Reduction in amount of grant

            If such failure continues for a second consecutive year, or 
        if a State fails to submit a report under subsection (d) of this 
        section for any program year, the Secretary may reduce by not 
        more than 5 percent, the amount of the grant that would (in the 
        absence of this paragraph) be payable to the State under such 
        program for the immediately succeeding program year. Such 
        penalty shall be based on the degree of failure to meet State 
        adjusted levels of performance.

             (2) Funds resulting from reduced allotments

        The Secretary shall use an amount retained, as a result of a 
    reduction in an allotment to a State made under paragraph (1)(B), to 
    provide incentive grants under section 9273 of title 20.

(h) Sanctions for local area failure to meet local performance measures

                      (1) Technical assistance

        If a local area fails to meet levels of performance relating to 
    indicators described in subparagraph (A) or (B) of subsection (b)(2) 
    of this section for a program for any program year, the Governor, or 
    upon request by the Governor, the Secretary, shall provide technical 
    assistance, which may include assistance in the development of a 
    performance improvement plan, or the development of a modified local 
    plan.

                       (2) Corrective actions

        (A) In general

            If such failure continues for a second consecutive year, the 
        Governor shall take corrective actions, which may include 
        development of a reorganization plan through which the Governor 
        may--
                (i) require the appointment and certification of a new 
            local board (consistent with the criteria established under 
            section 2832(b) of this title);
                (ii) prohibit the use of eligible providers and one-stop 
            partners identified as achieving a poor level of 
            performance; or
                (iii) take such other actions as the Governor determines 
            are appropriate.

        (B) Appeal by local area

            (i) Appeal to Governor

                A local area that is subject to a reorganization plan 
            under subparagraph (A) may, not later than 30 days after 
            receiving notice of the reorganization plan, appeal to the 
            Governor to rescind or revise such plan. In such case, the 
            Governor shall make a final decision not later then 30 days 
            after the receipt of the appeal.
            (ii) Subsequent action

                The local area may, not later than 30 days after 
            receiving a decision from the Governor pursuant to clause 
            (i), appeal such decision to the Secretary. In such case, 
            the Secretary shall make a final decision not later than 30 
            days after the receipt of the appeal.

        (C) Effective date

            The decision made by the Governor under clause (i) of 
        subparagraph (B) shall become effective at the time the Governor 
        issues the decision pursuant to such clause. Such decision shall 
        remain effective unless the Secretary rescinds or revises such 
        plan pursuant to clause (ii) of subparagraph (B).

(i) Other measures and terminology

                        (1) Responsibilities

        In order to ensure nationwide comparability of performance data, 
    the Secretary, after collaboration with representatives of 
    appropriate Federal agencies, and representatives of States and 
    political subdivisions, business and industry, employees, eligible 
    providers of employment and training activities, educators, and 
    participants, with expertise regarding workforce investment policies 
    and workforce investment activities, shall issue--
            (A) definitions for information required to be reported 
        under subsection (d)(2) of this section;
            (B) terms for a menu of additional indicators of performance 
        described in subsection (b)(2)(C) of this section to assist 
        States in assessing their progress toward State workforce 
        investment goals; and
            (C) objective criteria and methods described in subsection 
        (b)(3)(A)(vi) of this section for making revisions to levels of 
        performance.

                 (2) Definitions for core indicators

        The Secretary and the representatives described in paragraph (1) 
    shall participate in the activities described in section 9272 of 
    title 20 concerning the issuance of definitions for indicators of 
    performance described in subsection (b)(2)(A) of this section.

                           (3) Assistance

        The Secretary shall make the services of staff available to the 
    representatives to assist the representatives in participating in 
    the collaboration described in paragraph (1) and in the activities 
    described in section 9272 of title 20.

(Pub. L. 105-220, title I, Sec. 136, Aug. 7, 1998, 112 Stat. 999.)

                       References in Text

    This chapter, referred to in subsec. (b)(3)(B), was in the original 
``this title'' meaning title I of Pub. L. 105-220, Aug. 7, 1998, 112 
Stat. 939, as amended, which enacted this chapter, repealed sections 
1501 to 1505, 1511 to 1583, 1592 to 1735, 1737 to 1791h, 1792 to 1792b, 
2301 to 2314 of this title, section 211 of Title 40, Appendix, Public 
Buildings, Property, and Works, sections 11421, 11441 to 11447, 11449, 
11450, 11461 to 11466, 11471, and 11472 of Title 42, The Public Health 
and Welfare, and sections 42101 to 42106 of Title 49, Transportation, 
enacted provisions set out as notes under sections 1501, 2301, and 2940 
of this title and section 11421 of Title 42, and repealed provisions set 
out as notes under sections 801 and 2301 of this title and section 1255a 
of Title 8, Aliens and Nationality. For complete classification of title 
I to the Code, see Tables.
    This Act, referred to in subsec. (f)(3), is Pub. L. 105-220, Aug. 7, 
1998, 112 Stat. 936, as amended, known as the Workforce Investment Act 
of 1998. For complete classification of this Act to the Code, see Short 
Title note set out under section 9201 of Title 20, Education, and 
Tables.

                  Section Referred to in Other Sections

    This section is referred to in sections 49l-2, 710, 721, 726, 2801, 
2821, 2822, 2832, 2833, 2842, 2864, 2899, 2914, 2915, 2917 of this 
title; title 20 section 9212.
