Sec. 122. Identification of eligible providers and programs of training services
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Section 122(a) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152(a) ) is amended— by amending paragraph
(1)to read as follows: 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 by programs with standard eligibility or conditional 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 standard or conditional eligibility. ; in paragraph (2)— in subparagraph (A), by inserting before the semicolon at the end the following: (other than an institution of higher education described in subparagraph (C)) ; in subparagraph (B), by striking or at the end; by redesignating subparagraph
(C)as subparagraph (D); by inserting after subparagraph
(B)the following: an institution of higher education that offers a program that— is of at least 150 clock hours of instruction, but less than 600 clock hours of instruction, or an equivalent number of credit hours; is offered during a minimum of 8 weeks, but less than 15 weeks; and is an eligible program for purposes of the Federal Pell Grant program; or ; and in subparagraph (D), as so redesignated— by inserting (including providers of such a program that is conducted (in whole or in part) online) before , which may ; and by inserting providers of entrepreneurial skills development programs, industry or sector partnerships, groups of employers, trade or professional associations, after organizations, ; and in paragraph (3)— in the first sentence, by striking
(C)and inserting
(D); in the second sentence, by striking paragraph (2)(B) the first place it appears and inserting subparagraph
(B)or
(C)of paragraph
(2); and by inserting before the period at the end the following: or remains eligible for the Federal Pell Grant program as described in paragraph (2)(C) . Section 122(b) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152(b) ) is amended to read as follows: Each provider shall demonstrate 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 in-demand industry sectors or occupations; leads to a recognized postsecondary credential; has been offered by the provider for not less than 1 year; and meets the performance requirements for standard eligibility described in paragraph (2); or has received conditional eligibility described in paragraph (3). Any provider may elect to seek standard eligibility under paragraph
(2)or conditional eligibility under paragraph (3). 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 to receive and maintain standard eligibility under this section; and verify the performance achieved by such a program with respect to each such criteria 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, verify that such program included a sufficient number of program participants to protect participant personally identifiable information, and to be a reliable indicator of performance achievement. The performance criteria to receive and maintain standard eligibility for a program under this section are as follows: The credential attainment rate of program participants calculated as the percentage of program participants who obtain the recognized postsecondary credential for which the program prepares participants to earn within 6 months of 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 follows: The difference between— the median participant wages from unsubsidized employment during the second quarter after program exit; and the median earnings of participants wages during the quarter prior to entering the program, to The total cost of the program (as described in paragraph (5)(B)(iii)). With respect to any program receiving standard eligibility under this section from a Governor, a local board in the State may require higher levels of performance than the minimum performance levels established by the Governor under this paragraph, but may not— require any information or application from the provider that is not required for such standard eligibility; or establish a performance requirement with respect to any criteria not listed in subparagraph (B). The Governor shall establish procedures and criteria for conditional eligibility for a program of a provider of training services that does not meet the requirements under subparagraph (2). In establishing the procedures and criteria under this subparagraph for conditional eligibility under this paragraph, the Governor— shall establish the maximum period, not to exceed a 4-year period, that a program may receive and maintain such conditional eligibility; with respect to a program that has received conditional eligibility for the maximum period established under subclause
(I)and that is seeking approval for an additional period of conditional eligibility, may not consider such program for such conditional eligibility during the 3-year period that begins on the day after the end of most recent period for which the program received conditional eligibility; and may establish other requirements related to program performance, including setting separate minimum levels of performance on the criteria described in paragraph
(2)for a program to maintain such conditional eligibility. Payments under this Act for the provision of training services by a program with conditional eligibility shall be made to the provider of such program, on the basis of the achievement of successful outcomes by a participant of such training services, in accordance with the following: Upon participant enrollment, the provider shall receive not less than 25 percent of the total funds to be provided under section 133(b) for the provision of training services by such program to such participant. Upon participant completion and credential attainment, the provider shall receive not less than 25 percent of such total funds. Upon verification of the participant’s employment during the second quarter after program completion, the provider shall receive not less than 25 percent of such total funds. The remainder of such total funds may be awarded at any of the intervals described in clauses
(i)through
(iii)as determined by the Governor in accordance with the procedures established under subparagraph (A). With respect to a program participant for whom a provider expects to be paid pursuant to subparagraph (B), the provider may not— charge such participant tuition and refund such charges after receiving such payments; or if such program participant does not achieve the outcomes necessary for the provider to receive the provider’s full payment pursuant to subparagraph
(B)for such participant, bill a participant for any of the amounts described in subparagraph (B). The Governor shall establish procedures and criteria for providers to apply for an employer-sponsored designation for a program that has received standard or conditional eligibility under this paragraph, which shall include 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 cost of the program (as described in paragraph (5)(B)(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 consideration for a job with the employer, or in the case of an industry or sectoral partnership, an employer within such partnership, for each such participant that successfully completes the program. A provider 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. 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 of each eligible program (including participants for whom the provider receives payments under this title) offered by the provider, which shall— be made available by the State in a common, linked, open, and interoperable data format; include information on— the performance of the program with respect to the performance accountability measures described in section 116 for such participants; 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, the level of mastery of such competencies (including how mastery is assessed), and any transfer value or stackability; the total cost of the program, including the costs of the published tuition and fees, supplies, books, and any other costs required by the provider for participants in the program; the percentage of such participants that complete the program within the number of weeks that full-time participants would take to complete the program; and in the case of a provider offering programs seeking or maintaining standard eligibility, the criteria described in paragraph
(2)and not otherwise included in clause
(i)of this subparagraph; and with respect to employment and earnings measures described in subclauses
(I)through
(III)of section 116(b)(2)(A)(i) for such participants— the necessary information for the State to develop program performance data using State administrative data (such as 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. . Section 122(c) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152(c) ) is amended— in the first sentence of paragraph (1), by inserting , which 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 subsection
(b)after provision of training services ; by redesignating paragraph
(2)as paragraph (3), and inserting the following after paragraph (1): A Governor shall make an eligibility determination with respect to a provider of training services and the 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). ; in paragraph (3), as so redesignated— by striking biennial and inserting annual ; and by inserting before the period at the end the following: that continue to meet the requirements under subsection
(b); and by adding at the end the following: Any program with standard or conditional eligibility that, upon such review, does not meet the eligibility criteria established under subsection
(b)for standard or conditional eligibility, respectively, shall, except as otherwise provided in subsection (g)(1)(E), no longer be an eligible program and shall be removed from the list described in subsection (d). ; and by inserting at the end the following: The procedures established under subsection
(a)shall specify the process for any provider of training services offering a program in multiple States to establish eligibility in such States, 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 each State in which such program will be providing services, as long as the program meets the applicable State requirements established under subsection
(b)for each such State. 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 allocated to such State unless such provider is on the list of eligible providers of training services described in subsection
(d)for such State. . Section 122(d) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152(d) ) is amended— by redesignating paragraphs (2), (3), and
(4)as paragraphs (3), (4), and (6), respectively; by inserting after paragraph
(1)the following: 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 and programs awarding such a credential, which shall include, with respect to each such credential (aggregated for all participants in the State that have received such credential)— the information required under subsection (b)(5)(B)(ii); and the employment and earnings outcomes described in subclause
(I)through
(III)of section 116(b)(2)(i). ; in paragraph
(3)(as redesignated by paragraph (1))— by amending subparagraph (A), by striking
(C)of subsection (a)(2) and inserting
(D)of subsection (a)(2) ; by amending subparagraph
(B)to read as follows: with respect to a program described in subsection (b)(3) that is offered by a provider, consist of information designating the program as having conditional eligibility; ; and by amending subparagraph
(C)to read as follows: with respect to a program described in subsection (b)(4) that is offered by a provider, consist of the information promoting the program as having an employer-sponsored designation and identifying the employer or partnership sponsoring the program. . by amending paragraph
(4)(as so redesignated) to read as follows: The list (including the credential navigation feature described in paragraph (2)), and the accompanying information shall be made available to such 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 common, linked, open-data descriptive language; and in a manner that does not reveal personally identifiable information about an individual participant. ; and by inserting before paragraph
(6)(as so redesignated), the following: 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 easily understood, searchable, and navigable. . Section 122 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152 ), as amended by this section, is further amended— in subsection (e), by striking information requirements, in each place it appears; by redesignating subsections
(f)through
(i)as subsection
(g)through (j), respectively; by inserting after subsection (e), as so amended, the following: The Governor or a local board may establish a system of performance incentive payments to be awarded to 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 incentives may be established to award eligible programs that— achieve performance levels 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 leading to 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 providers from the following allotments: In the case of a system of performance incentive payments established by the Governor, from funds reserved by the Governor under section 128(a). In the case of a system of performance incentive payments established by a local board, from the allocations made to the local area for youth under section 128(b), for adults under paragraph (2)(A) or
(3)of section 133(b), or for dislocated workers under section 133(b)(2)(B), as appropriate. ; Section 122(g)(1) of the Workforce Innovation and Opportunity Act (as redesignated by subsection (e)(2)), is amended by adding at the end the following: 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 on the 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. An eligible program that has received standard eligibility under subsection (c)(2) for a program year but fails to meet the minimum levels of performance on the criteria described in subsection (b)(2) during 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 lose standard eligibility for such program for at least the program year following such second consecutive program year. A provider may reapply to receive standard eligibility for the program according to the criteria described in subsection
(c)if the program performance for the most recent program year for which performance data is available meets the minimum levels of performance required to receive such standard eligibility. A program that loses standard eligibility may apply to receive conditional eligibility under the process and criteria established by the Governor under subsection (b)(3). . Subsection
(i)(as redesignated by subsection (e)(2)) of section 122 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152 ) is amended— in paragraph (1)— by striking customized training and inserting employer-directed skills development ; and by striking subsections
(a)through
(f)and inserting subsections
(a)through
(g); and in paragraph (2), by amending the first sentence to read as follows: 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. . Section 122 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152 ) is further amended by adding at the end the following: The Governor may apply to the Secretary for technical assistance, as described in section 168(c), for purposes of carrying out the requirements of subsection (c)(4), or paragraph
(2)or
(5)of subsection (d), or any other 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. . A Governor and local boards shall implement the requirements of section 122 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152 ), as amended by this Act, not later than 12 months after the date of enactment of this Act. In order to facilitate early implementation of this section, the Governor may establish transition procedures under which providers eligible to provide training services under chapter 1 of subtitle B of title I of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3151 et seq. ), as such chapter was in effect on the day before the date of enactment of this Act, may continue to be eligible to provide such services until December 31, 2024, or until such earlier date as the Governor determines to be appropriate.
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Sec. 122
Identification of eligible providers and programs of training services
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