Sec. 122. Identification of eligible providers of training services
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Section 122 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152 ) is amended— by redesignating subsections
(f)through
(i)as subsections
(g)through (j), respectively; by striking the section heading and all that follows through subsection
(e)and inserting the following: Except as provided in subsection (i), the Governor, after consultation with the State board and considering the State’s adjusted levels of performance described in section 116(b)(3)(A)(iv), shall establish— procedures regarding the eligibility of providers of training services to receive funds provided under section 133(b) for the provision of training services through programs with eligibility under this section (in this section referred to as eligible programs ) in local areas in the State; and the minimum levels of performance on the criteria for a program to receive such eligibility. Subject to the provisions of this section, to be eligible to receive those funds for the provision of training services, the provider shall be— an institution of higher education that provides a program that leads to a recognized postsecondary credential; an entity that carries out programs registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act ; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq. ); or another public or private provider of a program of training services, which may include joint labor-management organizations, providers of entrepreneurial skills development programs, industry or sector partnerships, groups of employers, trade or professional associations, and eligible providers of adult education and literacy activities under title II (if such activities are provided in combination with occupational skills training or integrated education and training programs). A provider described in subparagraph
(A)or
(C)of paragraph
(2)shall comply with the criteria, information requirements, and procedures established under this section to be included on the list of eligible providers of training services described in subsection (d). A provider described in paragraph (2)(B) shall be included and maintained on the list of eligible providers of training services described in subsection
(d)for so long as the corresponding program of the provider remains registered as described in paragraph (2)(B). Each provider shall demonstrate to the Governor that the program for which the provider is seeking eligibility under this section— prepares participants to meet the hiring requirements of potential employers in the State, or a local area within the State, for employment that— is high-skill and high-wage; or is in an in-demand industry sector or occupation; leads to a recognized postsecondary credential; has been offered by the provider for not less than 1 year; and meets the performance requirements for eligibility described in paragraph (2). The Governor shall— establish and publicize minimum levels of performance for each of the criteria listed in subparagraph
(B)that a program offered by a provider of training services shall achieve, for all participants in the program (including participants for whom the provider receives payments under this title) for the program to receive and maintain eligibility under this section; verify the performance achieved by such a program with respect to each such criterion to determine whether the program meets the corresponding minimum level of performance established under clause (i)— in the case of the criteria described in
(ii)through
(iv)of subparagraph (B), using State administrative data (such as quarterly wage records); and in the case of the criteria described in subparagraph (B)(i), using any applicable method for such verification; and in verifying the performance achievement of a program to make such determination, verify that such program included a sufficient number of program participants to protect participants’ personally identifiable information, and to provide information that is a reliable indicator of performance achievement. The performance criteria to receive and maintain eligibility for a program under this section are each of the following: The credential attainment rate of program participants (calculated as the percentage of program participants who obtain the recognized postsecondary credential that the program prepares participants to earn within 6 months after exit from the program). The job placement rate of program participants (calculated as the percentage of program participants in unsubsidized employment during the second quarter after exit from the program). The median earnings of program participants who are in unsubsidized employment during the second quarter after exit from the program. The ratio of median earnings increase to the total cost of program, calculated as the ratio of— the median value of the difference between— participant wages from unsubsidized employment during the second quarter after program exit; and participant wages during the quarter prior to entering the program; to the total cost of the program (as described in paragraph (5)(B)(i)(III)). With respect to any program receiving eligibility under this section from a Governor, a local board in the State may require higher levels of performance than the minimum levels of performance established by the Governor under this paragraph for the program to be an eligible program in the corresponding local area, but may not— require any information or application from the provider that is not required for such eligibility; or establish a performance requirement with respect to any criterion not listed in subparagraph (B). The Governor shall establish procedures and criteria for a provider to demonstrate that a program meets, in applying for an employer-sponsored designation for a program that has received eligibility under this subsection, which shall include demonstrating a commitment from an employer or an industry or sectoral partnership to— pay to the provider, on behalf of each participant enrolled in such program under this Act, not less than 25 percent of the total cost of the program (as described in paragraph (5)(B)(i)(III)), which shall be provided in lieu of 25 percent of the amount that the provider would have otherwise received under section 133(b) for the provision of training services by such program to such participant; and guarantee an interview and meaningful consideration for a job with the employer, or in the case of an industry or sector partnership, an employer within such partnership, for each such participant that successfully completes the program. A provider of a program receiving an employer-sponsored designation under this paragraph may not— have an ownership stake in the employer or industry or sectoral partnership making a commitment described in subparagraph (A); or enter into an arrangement to reimburse an employer or partnership for the costs of a participant paid by such employer or partnership under this paragraph. If the Governor determines that a program offered by an eligible provider meets the minimum levels of performance described in subparagraph
(B)to receive a Workforce Innovation Leader (or WIL) designation, which designates the program as a WIL program, the Governor shall grant the program designation as a WIL program and inform the provider of such program of their ability to display the WIL seal, as described in subparagraph (C), in marketing materials. A eligible program shall meet the levels of performance to receive a WIL designation if such program has achieved— a credential attainment rate of program participants (calculated as the percentage of program participants who obtain the recognized postsecondary credential that the program prepares participants to earn within 6 months after exit from the program) of not less than 80 percent; a job placement rate of program participants (calculated as the percentage of program participants in unsubsidized employment during the second quarter after exit from the program) of not less than 70 percent; median earnings of program participants who are in unsubsidized employment during the second quarter after exit from the program that are not less than 25 percent greater than the State-level median earnings of individuals ages 25 through 34 in the labor force who have only a regular high school diploma or its recognized equivalent; and a ratio of greater than 1.5 of median earnings increase to the total cost of program, calculated as the ratio of— the median value of the difference between— participant wages from unsubsidized employment during the second quarter after program exit; and participant wages during the quarter prior to entering the program; to the total cost of the program (as described in paragraph (5)(B)(i)(III)). Not later than 2 years after the date of enactment of the A Stronger Workforce for America Act, the Secretary shall design a seal signifying that a program has achieved a WIL designation, for the Governor of each State to provide to any programs in their State that achieve the performance necessary to receive a WIL designation. If, during the annual review of eligibility described in subsection (c)(3), the Governor determines that a WIL program no longer meets the levels described in subparagraph
(B)or otherwise has eligibility under this section revoked or terminated, or the provider of the program has eligibility terminated under subsection (g)(1)(A), the Governor shall revoke the program’s WIL designation and inform the provider of such program that such provider may no longer display the WIL seal in marketing materials or otherwise. A provider that seeks to establish eligibility under this section, and an eligible provider, shall submit appropriate, accurate, and timely information to the Governor, to enable the Governor to carry out subsection (d), with respect to all participants in each eligible program (including participants for whom the provider receives payments under this title) offered by the provider, which information shall— be made available by the State in a common, linked, open, and interoperable data format; and consist of— information on— in the case of an eligible provider offering a program who is seeking to maintain eligibility, the performance of the program with respect to the indicators described in section 116(b)(2)(A) for participants in the program; the recognized postsecondary credentials received by such participants, including, in relation to each such credential, the issuing entity, any third-party endorsements, the occupations for which the credential prepares individuals, the competencies achieved by the individuals, the level of mastery of such competencies (including how mastery is assessed) achieved by the individuals, and any transfer value or stackability; the total cost of the program, including the costs of the published tuition and fees, supplies, and books, and any other costs required by the provider, for a participant in the program; the percentage of such participants that complete the program within the expected time to completion; and the program’s level of performance on the criteria described in paragraph
(2)and not otherwise included in clause
(I)of this clause; and with respect to employment and earnings measures described in subclauses
(I)through
(III)of section 116(b)(2)(A)(i) and the performance criteria described in subsection (b)(2) for such participants— the necessary information for the State to develop program performance data using State administrative data (such as quarterly wage records); and the necessary information to determine the percentage of such participants who entered unsubsidized employment in an occupation related to the program, to the extent practicable. In this section, other than subsection (i), a provider of an eligible program under this section shall be considered to be identified as an eligible provider of training services. The procedures established under subsection
(a)shall identify the application process for a provider of training services (for a program offered by the provider) to become eligible to receive funds provided under section 133(b) for the provision of training services. That process shall be implemented in a manner that minimizes the financial and administrative burden on the provider and shall not require the submission of information in excess of the information required to determine a program’s eligibility under paragraphs (1), (2), and
(5)of subsection (b). The procedures shall identify the respective roles of the State and local areas in receiving and reviewing the applications and in making determinations of such eligibility based on the criteria, information requirements, and procedures established under this section. The procedures shall also establish a process, for a provider of training services to appeal a denial or revocation or termination of eligibility under this section, that includes an opportunity for a hearing and prescribes appropriate time limits to ensure prompt resolution of the appeal. A Governor shall make a determination of such eligibility with respect to a program for which the provider is seeking eligibility under this section not later than 30 days after receipt of an application submitted by such provider consistent with the procedures in paragraph (1). The procedures established by the Governor shall also provide for annual review and renewal of eligibility under this section for a program of training services that continues to meet the requirements under paragraphs (1), (2), and
(5)of subsection (b). The procedures established under subsection
(a)shall adhere to the following requirements for revocation of eligibility by the Governor: With respect to a provider of training services that is eligible under this section for a program year with respect to an eligible program, but that does not provide the information described in subsection (b)(5) with respect to such program for such program year (including information on performance necessary to determine if the program meets the minimum levels of performance on the performance criteria to maintain eligibility), the provider shall be ineligible under this section with respect to such program for the program year after the program year for which the provider fails to provide such information. The provider of an eligible program that has received eligibility under subsection (c)(2) for a program year but fails to meet the minimum levels of performance on the performance criteria described in subsection (b)(2) for the most recent program year for which performance data on such criteria are available shall be notified of such failure by the Governor. A program that fails to meet the minimum levels of performance for a second consecutive program year shall be ineligible under this section with respect to such program for the program year following such second consecutive program year and until the program meets the minimum levels of performance. A provider that loses eligibility under this subparagraph with respect to a program may reapply to receive eligibility for the program according to the procedures described in this subparagraph if the program meets the minimum levels of performance described in clause (i), for the most recent program year for which performance data on the performance criteria are available. A program for which the Governor revokes eligibility under subparagraph
(A)or (B)— 2 times shall be determined ineligible under this section by the Governor for a period of at least 2 years; 3 times shall be determined ineligible under the section by the Governor for a period of at least 5 years; and more than 3 times shall be determined ineligible under this section by the Governor for a period of at least 10 years. A provider of a program for which the Governor revokes eligibility under paragraph
(4)shall— be prohibited from enrolling any new participants whose participation would be funded under section 133(b) in the program and from receiving any payments from funds provided under section 133(b) for any participants not already enrolled in the program on the date of revocation or termination until and unless the Governor determines that the provider has demonstrated that the program offered by the provider has met the requirements for the provider to gain the opportunity to reapply for eligibility under the procedure described in paragraph (4)(B)(iii); and enable each participant currently enrolled in the program, on the date of the revocation or termination, to complete such program. The local board serving participants whose participation is funded under section 133(b) in a program for which eligibility is revoked by the Governor under this subsection shall notify such participants that such program no longer meets the State’s requirements for eligible providers of training services under this Act and that the participant has the opportunity to continue receiving training services from such program, in order to complete the program. The procedures established under subsection
(a)shall specify the process for any provider of training services offering a program that is eligible under this section in a first State to establish eligibility under this section in an additional State, which shall, to the extent practicable, minimize financial and administrative burdens on any such provider by authorizing the provider to submit the same application materials and information to the Governor of the additional State that was accepted by the Governor granting the provider’s eligibility in the first State, as long as the program meets the applicable State requirements for such eligibility established under subsection (b). The procedures established under subsection
(a)shall apply to a provider that delivers training services exclusively online. If a participant chooses a provider that delivers training services exclusively online and is not located in the State of the local area that approved such training services for the participant in accordance with section 133(c)(3)(A)(i), such provider shall be ineligible to receive payment for such participant from funds allotted to such State under section 132 unless such provider is on the list of eligible providers of training services described in subsection
(d)for such State with respect to the program involved. In order to facilitate and assist participants in choosing employment and training activities and in choosing providers of training services, the Governor shall ensure that an appropriate list of providers determined to be eligible under this section to offer a program in the State (and, as appropriate, in a local area), accompanied by information identifying the recognized postsecondary credential offered by the provider and other appropriate information, is prepared. The list shall be provided to the local boards in the State, and made available to such participants and to members of the public through the one-stop delivery system in the State in accordance with paragraph (4). In order to enhance the ability of participants and employers to understand and compare the value of the recognized postsecondary credentials awarded by eligible programs offered by providers of training services in a State, the Governor shall establish (or develop in partnership with other States), a credential navigation feature that allows participants and the public to search a list of such recognized postsecondary credentials, and the providers awarding and programs leading to such a credential, which shall include, with respect to each such credential (aggregated for all participants in the State that have received such credential through an eligible program under this section or through, as applicable, another program carried out under this title)— the information required under subsection (b)(5)(B)(i)(II); and the performance of participants with respect to the indicators (relating to employment and earnings outcomes) described in subclauses
(I)through
(III)of section 116(b)(2)(i). Nothing in this paragraph shall be construed to require a State that has a credential navigation feature that permits a search of a list containing the information described in this paragraph to replace such credential navigation feature with the feature described in subparagraph (A). The accompanying information referred to in paragraph
(1)shall consist of— with respect to providers described in subparagraphs
(A)and
(C)of subsection (a)(2), information provided by such providers (disaggregated by local areas served, as applicable) in accordance with subsection (b); with respect to a program described in subsection (b)(3) that is offered by a provider, information promoting the program as having an employer-sponsored designation and identifying the employer or partnership sponsoring the program; and with respect to a program described in subsection (b)(4) that is offered by a provider, information promoting the program as being a WIL program and displaying the seal described in subsection (b)(4)(C). The list (including the credential navigation feature described in paragraph (2)), and the accompanying information shall be made available to participants and to members of the public through the one-stop delivery system in the State— on a publicly accessible website that— is consumer-tested; and is searchable, easily understandable, and navigable, and allows for the comparison of eligible programs through the use of language in a common, linked, open, and interoperable data format; and in a manner that does not reveal personally identifiable information about an individual participant. The Secretary shall— upon request, provide technical assistance to a State on establishing a website that meets the requirements of paragraph (4); and disseminate to each State effective practices or resources from States and private sector entities related to establishing a website that is consumer-tested to ensure that the website is searchable, easily understandable, and navigable. In carrying out the requirements of this subsection, no personally identifiable information regarding a student, including a Social Security number, student identification number, or other identifier, may be disclosed without the prior written consent of the student or student’s parent in compliance with section 444 of the General Education Provisions Act ( 20 U.S.C. 1232g ). In establishing, under this section, criteria, procedures, and the list of eligible providers described in subsection (d), the Governor shall provide an opportunity for interested members of the public to make recommendations and submit comments regarding such criteria, procedures, and list. The Governor shall establish a system of performance incentive payments to be awarded to eligible providers in addition to the amount paid under section 133(b) to such providers for the provision of training services to participants of eligible programs. Such system of performance incentive payments may be established to award the payments to providers of eligible programs that— achieve levels of performance above the minimum levels established by the Governor under subsection (b)(2); serve a significantly higher number of individuals with barriers to employment compared to training providers offering similar training services; or achieve other performance successes, including those related to jobs that provide economic stability and upward mobility (such as jobs with high wages and family sustainable benefits) as determined by the State or the local board. Incentive payments to providers established under paragraph
(1)shall be awarded to eligible providers from funds reserved by the Governor under section 128(a)(1), except that not more than 5 percent of the funds reserved by the Governor under section 128(a)(1) may be used for such payments. ; by striking subsections
(i)and
(j)and inserting the following: Providers of on-the-job training, employer-directed skills development, incumbent worker training, internships, paid or unpaid work experience opportunities, or transitional employment shall not be subject to the requirements of subsections
(a)through (f). A one-stop operator in a local area shall collect the minimum amount of information from providers of on-the-job training, employer-directed skills development, incumbent worker training, internships, paid or unpaid work experience opportunities, and transitional employment as necessary to enable the use of State administrative data to generate such performance information as the Governor may require, and use the information to determine whether the providers meet such performance criteria as the Governor may require. The one-stop operator shall disseminate information identifying such providers that meet the criteria as eligible providers, and the performance information, through the one-stop delivery system. Providers determined to meet the criteria shall be considered to be identified as eligible providers of training services. The Governor may apply to the Secretary for technical assistance, as described in section 168(c), for purposes of carrying out the requirements of the amendments made by the A Stronger Workforce for America Act to this section, and the Secretary shall provide such technical assistance in a timely manner. . Not later than 4 years after the date of enactment of the A Stronger Workforce for America Act, the Secretary shall submit a report to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate on eligible providers of training services under section 122 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152 ), as amended by this division, in each State that shall include— the minimum levels of performance established by the Governor of each State with respect to the performance criteria under subsection (b)(2) of that section 122 for such eligible providers of training services in the State; the number of such eligible providers of training services in the State in each program year that begins after the date of enactment of this Act, compared with the number of such providers in the State in the program year that began immediately preceding that date of enactment; and the average length of time that such eligible providers of training services in the State maintain eligibility, disaggregated by the type of entity that provided the training services.
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Sec. 122
Identification of eligible providers of training services
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