29 U.S. Code § 3141

29 U.S. Code § 3141 - Performance accountability system.pdf

Workforce Innovation and Opportunity Act (WIOA) Common Performance Reporting

29 U.S. Code § 3141

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29 U.S. Code § 3141. Performance accountability system
U.S. Code

Notes

(a) P
The purpose of this section is to establish performance accountability
measures that apply across the core programs to assess the effectiveness
of States and local areas (for core programs described in part B) in
achieving positive outcomes for individuals served by those programs.
(b) S
(1) I
For each State, the performance accountability
measures for the core programs shall consist of—
(A)
(i) the primary indicators of performance described in paragraph
(2)(A); and
(ii) the additional indicators of performance (if any) identified by
the State under paragraph (2)(B); and
(B) a State adjusted level of performance for each indicator
described in subparagraph (A).
(2) I
(A) Primary indicators of performance
(i) In general The State primary indicators of performance for
activities provided under the adult and dislocated worker
programs authorized under subpart 3 of part B, the program of
adult education and literacy activities authorized under
subchapter II, the employment services program authorized
under sections 1 through 13 of the Wagner-Peyser Act (29 U.S.C.
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49 et seq.) (except that subclauses (IV) and (V) shall not apply
to such program), and the program authorized under title I of
the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), other than
section 112 or part C of that title (29 U.S.C. 732, 741), shall
consist of—
(I) the percentage of program participants who are in
unsubsidized employment during the second quarter after
exit from the program;
(II) the percentage of program participants who are in
unsubsidized employment during the fourth quarter after exit
from the program;
(III) the median earnings of program participants who are in
unsubsidized employment during the second quarter after
exit from the program;
(IV) the percentage of program participants who obtain a
recognized postsecondary credential, or a secondary school
diploma or its recognized equivalent (subject to clause (iii)),
during participation in or within 1 year after exit from the
program;
(V) the percentage of program participants who, during a
program year, are in an education or training program that
leads to a recognized postsecondary credential or
employment and who are achieving measurable skill gains
toward such a credential or employment; and
(VI) the indicators of effectiveness in serving employers
established pursuant to clause (iv).
(ii) Primary indicators for eligible youth The primary
indicators of performance for the youth program authorized
under subpart 2 of part B shall consist of—
(I) the percentage of program participants who are in
education or training activities, or in unsubsidized
employment, during the second quarter after exit from the
program;
(II) the percentage of program participants who are in
education or training activities, or in unsubsidized

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employment, during the fourth quarter after exit from the
program; and
(III) the primary indicators of performance described in
subclauses (III) through (VI) of subparagraph (A)(i).
(iii) Indicator relating to credential
For purposes of clause (i)(IV), or clause (ii)(III) with respect to
clause (i)(IV), program participants who obtain a secondary
school diploma or its recognized equivalent shall be included in
the percentage counted as meeting the criterion under such
clause only if such participants, in addition to obtaining such
diploma or its recognized equivalent, have obtained or retained
employment or are in an education or training program leading
to a recognized postsecondary credential within 1 year after exit
from the program.
(iv) Indicator for services to employers
Prior to the commencement of the second full program year after
July 22, 2014, for purposes of clauses (i)(VI), or clause (ii)(III)
with respect to clause (i)(VI), the Secretary of Labor and the
Secretary of Education, after consultation with the
representatives described in paragraph (4)(B), shall jointly
develop and establish, for purposes of this subparagraph, 1 or
more primary indicators of performance that indicate the
effectiveness of the core programs in serving employers.
(B) Additional indicators
A State may identify in the State plan additional performance
accountability indicators.
(3) L
(A) State adjusted levels of performance for primary
indicators
(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 corresponding primary indicators of
performance described in paragraph (2) for each of the programs
described in clause (ii).
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(ii) Included programs The programs included under clause (i)
are—
(I) the youth program authorized under subpart 2 of part B;
(II) the adult program authorized under subpart 3 of part B;
(III) the dislocated worker program authorized under
subpart 3 of part B;
(IV) the program of adult education and literacy activities
authorized under subchapter II;
(V) the employment services program authorized under
sections 1 through 13 of the Wagner-Peyser Act (29 U.S.C. 49
et seq.); and
(VI) the program authorized under title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), other than
section 112 or part C of that title (29 U.S.C. 732, 741).
(iii) Identification in State plan
Each State shall identify, in the State plan, expected levels of
performance for each of the corresponding primary indicators of
performance for each of the programs described in clause (ii) for
the first 2 program years covered by the State plan.
(iv) Agreement on State adjusted levels of performance
(I) First 2 years
The State shall reach agreement with the Secretary of Labor,
in conjunction with the Secretary of Education on levels of
performance for each indicator described in clause (iii) for
each of the programs described in clause (ii) for each of the
first 2 program years covered by the State plan. In reaching
the agreement, the State and the Secretary of Labor in
conjunction with the Secretary of Education shall take into
account the levels identified in the State plan under clause
(iii) and the factors described in clause (v). The levels agreed
to shall be considered to be the State adjusted levels of
performance for the State for such program years and shall
be incorporated into the State plan prior to the approval of
such plan.

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(II) Third and fourth year
The State and the Secretary of Labor, in conjunction with the
Secretary of Education, shall reach agreement, prior to the
third program year covered by the State plan, on levels of
performance for each indicator described in clause (iii) for
each of the programs described in clause (ii) for each of the
third and fourth program years covered by the State plan. In
reaching the agreement, the State and Secretary of Labor, in
conjunction with the Secretary of Education, shall take into
account the factors described in clause (v). The levels agreed
to shall be considered to be the State adjusted levels of
performance for the State for such program years and shall
be incorporated into the State plan as a modification to the
plan.
(v) Factors In reaching the agreements described in clause (iv),
the State and Secretaries shall—
(I) take into account how the levels involved compare with
the State adjusted levels of performance established for other
States;
(II) ensure that the levels involved are adjusted, using the
objective statistical model established by the Secretaries
pursuant to clause (viii), based on—
(aa) the differences among States in actual economic
conditions (including differences in unemployment rates
and job losses or gains in particular industries); and
(bb) the characteristics of participants when the
participants entered the program involved, including
indicators of poor work history, lack of work experience,
lack of educational or occupational skills attainment,
dislocation from high-wage and high-benefit employment,
low levels of literacy or English proficiency, disability
status, homelessness, ex-offender status, and welfare
dependency;
(III) take into account the extent to which the levels
involved promote continuous improvement in performance
accountability on the performance accountability measures by
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such State and ensure optimal return on the investment of
Federal funds; and
(IV) take into account the extent to which the levels involved
will assist the State in meeting the goals described in clause
(vi).
(vi) Goals
In order to promote enhanced performance outcomes and to
facilitate the process of reaching agreements with the States
under clause (iv), the Secretary of Labor, in conjunction with the
Secretary of Education, shall establish performance goals for the
core programs, in accordance with the Government Performance
and Results Act of 1993 (Public Law 103–62; 107 Stat. 285) and
the amendments made by that Act, and in consultation with
States and other appropriate parties. Such goals shall be longterm goals for the adjusted levels of performance to be achieved
by each of the programs described in clause (ii) regarding the
corresponding primary indicators of performance described in
paragraph (2)(A).
(vii) Revisions based on economic conditions and
individuals served during the program year
The Secretary of Labor, in conjunction with the Secretary of
Education, shall, in accordance with the objective statistical
model developed pursuant to clause (viii), revise the State
adjusted levels of performance applicable for each of the
programs described in clause (ii), for a program year and a
State, to reflect the actual economic conditions and
characteristics of participants (as described in clause (v)(II)) in
that program during such program year in such State.
(viii) Statistical adjustment model
The Secretary of Labor and the Secretary of Education, after
consultation with the representatives described in paragraph (4)
(B), shall develop and disseminate an objective statistical model
that will be used to make the adjustments in the State adjusted
levels of performance for actual economic conditions and
characteristics of participants under clauses (v) and (vii).
(B) Levels of performance for additional indicators
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The State may identify, in the State plan, State levels of
performance for each of the additional indicators identified under
paragraph (2)(B). Such levels shall be considered to be State
adjusted levels of performance for purposes of this section.
(4) D
(A) In general
In order to ensure nationwide comparability of performance data,
the Secretary of Labor and the Secretary of Education, after
consultation with representatives described in subparagraph (B),
shall issue definitions for the indicators described in paragraph (2).
(B) Representatives
The representatives referred to in subparagraph (A) are
representatives of States and political subdivisions, business and
industry, employees, eligible providers of activities carried out
through the core programs, educators, researchers, participants, the
lead State agency officials with responsibility for the programs
carried out through the core programs, individuals with expertise in
serving individuals with barriers to employment, and other
interested parties.

(c) L

B

(1) I
For each local area in a State designated under section
3121 of this title, the local performance accountability measures for
each of the programs described in subclauses (I) through (III) of
subsection (b)(3)(A)(ii) shall consist of—
(A)
(i) the primary indicators of performance described in subsection
(b)(2)(A) that are applicable to such programs; and
(ii) additional indicators of performance, if any, identified by the
State for such programs under subsection (b)(2)(B); and
(B) the local level of performance for each indicator described in
subparagraph (A).
(2) L

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The local board, the chief elected official, and the Governor shall
negotiate and reach agreement on local levels of performance based on
the State adjusted levels of performance established under subsection
(b)(3)(A).
(3) A
In negotiating the local levels of performance, the local board, the chief
elected official, and the Governor shall make adjustments for the
expected economic conditions and the expected characteristics of
participants to be served in the local area, using the statistical
adjustment model developed pursuant to subsection (b)(3)(A)(viii). In
addition, the negotiated local levels of performance applicable to a
program year shall be revised to reflect the actual economic conditions
experienced and the characteristics of the populations served in the
local area during such program year using the statistical adjustment
model.
(d) P
(1) I
Not later than 12 months after July 22, 2014, the Secretary of Labor, in
conjunction with the Secretary of Education, shall develop a template
for performance reports that shall be used by States, local boards, and
eligible providers of training services under section 3152 of this title to
report on outcomes achieved by the core programs. In developing such
templates, the Secretary of Labor, in conjunction with the Secretary of
Education, will take into account the need to maximize the value of the
templates for workers, jobseekers, employers, local elected officials,
State officials, Federal policymakers, and other key stakeholders.
(2) C

S

The performance

report for a State shall include, subject to paragraph (5)(C)—
(A) information specifying the levels of performance achieved with
respect to the primary indicators of performance described in
subsection (b)(2)(A) for each of the programs described in
subsection (b)(3)(A)(ii) and the State adjusted levels of
performance with respect to such indicators for each program;
(B) information specifying the levels of performance achieved with
respect to the primary indicators of performance described in
subsection (b)(2)(A) for each of the programs described in
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subsection (b)(3)(A)(ii) with respect to individuals with barriers to
employment, disaggregated by each subpopulation of such
individuals, and by race, ethnicity, sex, and age;
(C) the total number of participants served by each of the programs
described in subsection (b)(3)(A)(ii);
(D) the number of participants who received career and training
services, respectively, during the most recent program year and the
3 preceding program years, and the amount of funds spent on each
type of service;
(E) the number of participants who exited from career and training
services, respectively, during the most recent program year and the
3 preceding program years;
(F) the average cost per participant of those participants who
received career and training services, respectively, during the most
recent program year and the 3 preceding program years;
(G) the percentage of participants in a program authorized under
this part who received training services and obtained unsubsidized
employment in a field related to the training received;
(H) the number of individuals with barriers to employment served
by each of the programs described in subsection (b)(3)(A)(ii),
disaggregated by each subpopulation of such individuals;
(I) the number of participants who are enrolled in more than 1 of
the programs described in subsection (b)(3)(A)(ii);
(J) the percentage of the State’s annual allotment under section
3172(b) of this title that the State spent on administrative costs;
(K) in the case of a State in which local areas are implementing
pay-for-performance contract strategies for programs—
(i) the performance of service providers entering into contracts
for such strategies, measured against the levels of performance
specified in the contracts for such strategies; and
(ii) an evaluation of the design of the programs and
performance of the strategies, and, where possible, the level of
satisfaction with the strategies among employers and
participants benefitting from the strategies; and
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(L) other information that facilitates comparisons of programs with
programs in other States.
(3) C
The
performance reports for a local area shall include, subject to paragraph
(6)(C)—
(A) the information specified in subparagraphs (A) through (L) of
paragraph (2), for each of the programs described in subclauses (I)
through (III) of subsection (b)(3)(A)(ii);
(B) the percentage of the local area’s allocation under sections
3163(b) and 3173(b) of this title that the local area spent on
administrative costs; and
(C) other information that facilitates comparisons of programs with
programs in other local areas (or planning regions, as appropriate).
(4) C
The performance report for an eligible provider of training
services under section 3152 of this title shall include, subject to
paragraph (6)(C), with respect to each program of study (or the
equivalent) of such provider—
(A) information specifying the levels of performance achieved with
respect to the primary indicators of performance described in
subclauses (I) through (IV) of subsection (b)(2)(A)(i) with respect
to all individuals engaging in the program of study (or the
equivalent);
(B) the total number of individuals exiting from the program of
study (or the equivalent);
(C) the total number of participants who received training services
through each of the adult program and the dislocated worker
program authorized under subpart 3 of part B, disaggregated by the
type of entity that provided the training, during the most recent
program year and the 3 preceding program years;
(D) the total number of participants who exited from training
services, disaggregated by the type of entity that provided the
training, during the most recent program year and the 3 preceding
program years;

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(E) the average cost per participant for the participants who
received training services, disaggregated by the type of entity that
provided the training, during the most recent program year and the
3 preceding program years; and
(F) the number of individuals with barriers to employment served
by each of the adult program and the dislocated worker program
authorized under subpart 3 of part B, disaggregated by each
subpopulation of such individuals, and by race, ethnicity, sex, and
age.
(5) D
In preparing the State reports described in this subsection, each State
shall establish procedures, consistent with guidelines issued by the
Secretary, in conjunction with the Secretary of Education, to ensure the
information contained in the reports is valid and reliable.
(6) P
(A) State performance reports
The Secretary of Labor and the Secretary of Education shall annually
make available (including by electronic means), in an easily
understandable format, the performance reports for States
containing the information described in paragraph (2).
(B) Local area and eligible training provider performance
reports
The State shall make available (including by electronic means), in
an easily understandable format, the performance reports for the
local areas containing the information described in paragraph (3)
and the performance reports for eligible providers of training
services containing the information described in paragraph (4).
(C) Rules for reporting of data
The disaggregation of data under this subsection shall not be
required when the number of participants in a category is
insufficient to yield statistically reliable information or when the
results would reveal personally identifiable information about an
individual participant.
(D) Dissemination to Congress

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The Secretary of Labor and the Secretary of Education shall make
available (including by electronic means) a summary of the reports,
and the reports, required under this subsection 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. The Secretaries shall prepare and make available with the
reports a set of recommendations for improvements in and
adjustments to pay-for-performance contract strategies used under
part B.

(e) E

S

(1) I
Using funds authorized under a core program and made available to
carry out this section, the State, in coordination with local boards in the
State and the State agencies responsible for the administration of the
core programs, shall conduct ongoing evaluations of activities carried
out in the State under such programs. The State, local boards, and
State agencies shall conduct the evaluations in order to promote,
establish, implement, and utilize methods for continuously improving
core program activities in order to achieve high-level performance
within, and high-level outcomes from, the workforce development
system. The State shall coordinate the evaluations with the evaluations
provided for by the Secretary of Labor and the Secretary of Education
under section 3224 of this title, section 3332(c)(2)(D) of this title, and
sections 12(a)(5), 14, and 107 of the Rehabilitation Act of 1973 (29
U.S.C. 709(a)(5), 711, 727) (applied with respect to programs carried
out under title I of that Act (29 U.S.C. 720 et seq.)) and the
investigations provided for by the Secretary of Labor under section
10(b) of the Wagner-Peyser Act (29 U.S.C. 49i(b)).
(2) D
The evaluations conducted under this subsection shall be designed in
conjunction with the State board, State agencies responsible for the
administration of the core programs, and local boards and shall include
analysis of customer feedback and outcome and process measures in
the statewide workforce development system. The evaluations shall use
designs that employ the most rigorous analytical and statistical
methods that are reasonably feasible, such as the use of control
groups.

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(3) R
The State shall annually prepare, submit to the State board and local
boards in the State, and make available to the public (including by
electronic means), reports containing the results of evaluations
conducted under this subsection, to promote the efficiency and
effectiveness of the workforce development system.
(4) C

F

The State shall, to the extent practicable, cooperate in the conduct of
evaluations (including related research projects) provided for by the
Secretary of Labor or the Secretary of Education under the provisions of
Federal law identified in paragraph (1). Such cooperation shall include
the provision of data (in accordance with appropriate privacy
protections established by the Secretary of Labor), the provision of
responses to surveys, and allowing site visits in a timely manner, for
the Secretaries or their agents.
(f) S

S

S

(1) S
(A) Technical assistance
If a State fails to meet the State adjusted levels of performance
relating to indicators described in subsection (b)(2)(A) for a
program for any program year, the Secretary of Labor and the
Secretary of Education shall provide technical assistance, 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 (except in
the case of exceptional circumstances as determined by the
Secretary of Labor or the Secretary of Education, as appropriate) a
State fails to submit a report under subsection (d) for any program
year, the percentage of each amount that would (in the absence of
this paragraph) be reserved by the Governor under section 3163(a)
of this title for the immediately succeeding program year shall be
reduced by 5 percentage points until such date as the Secretary of
Labor or the Secretary of Education, as appropriate, determines that
the State meets such State adjusted levels of performance and has
submitted such reports for the appropriate program years.

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(g) S
(1) T
If a local area fails to meet local performance accountability measures
established under subsection (c) for the youth, adult, or dislocated
worker program authorized under subpart 2 or 3 of part B for any
program year, the Governor, or upon request by the Governor, the
Secretary of Labor, shall provide technical assistance, which may
include assistance in the development of a performance improvement
plan or the development of a modified local plan (or regional plan).
(2) C
(A) In general If such failure continues for a third consecutive
year, the Governor shall take corrective actions, which shall include
development of a reorganization plan through which the Governor
shall—
(i) require the appointment and certification of a new local
board, consistent with the criteria established under section
3122(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 significant actions as the Governor
determines are appropriate.
(B) Appeal by local area
(i) Appeal to Governor
The local board and chief elected official for 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 than
30 days after the receipt of the appeal.
(ii) Subsequent action
The local board and chief elected official for a 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 of

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

(h) E

-

-

Using non-Federal funds, the Governor may establish incentives for local
boards to implement pay-for-performance contract strategies for the
delivery of training services described in section 3174(c)(3) of this title or
activities described in section 3164(c)(2) of this title in the local areas
served by the local boards.
(i) F
(1) I
Using funds authorized under a core program and made available to
carry out this subpart, the Governor, in coordination with the State
board, the State agencies administering the core programs, 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 of Labor and the
Secretary of Education after consultation with the Governors of States,
chief 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 authorized
under the core programs and for preparing the annual report described
in subsection (d).
(2) W
In measuring the progress of the State on State and local performance
accountability measures, a State shall utilize quarterly wage records,
consistent with State law. The Secretary of Labor 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
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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).
(3) C
In carrying out the requirements of this Act, the State shall comply with
section 1232g of title 20.
(Pub. L. 113–128, title I, § 116, July 22, 2014, 128 Stat. 1471; Pub. L. 114–
18, § 2(c), May 22, 2015, 129 Stat. 213.)

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