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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4297 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4297

To reform and strengthen the workforce investment system of the Nation 
     to put Americans back to work and make the United States more 
                    competitive in the 21st century.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2012

    Ms. Foxx (for herself, Mr. McKeon, and Mr. Heck) introduced the 
 following bill; which was referred to the Committee on Education and 
  the Workforce, and in addition to the Committees on the Judiciary, 
       Agriculture, Energy and Commerce, and Transportation and 
   Infrastructure, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To reform and strengthen the workforce investment system of the Nation 
     to put Americans back to work and make the United States more 
                    competitive in the 21st century.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Workforce Investment Improvement Act 
of 2012''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Effective date.
      TITLE I--AMENDMENTS TO THE WORKFORCE INVESTMENT ACT OF 1998

Sec. 101. Definitions.
Sec. 102. Purpose.
Sec. 103. State workforce investment boards.
Sec. 104. State plan.
Sec. 105. Local workforce investment areas.
Sec. 106. Local workforce investment boards.
Sec. 107. Local plan.
Sec. 108. Establishment of one-stop delivery system.
Sec. 109. Identification of eligible providers of training services.
Sec. 110. General authorization.
Sec. 111. State allotments.
Sec. 112. Within State allocations.
Sec. 113. Use of funds for employment and training activities.
Sec. 114. Performance accountability system.
Sec. 115. Authorization of appropriations.
Sec. 116. Technical assistance.
Sec. 117. Evaluations.
Sec. 118. Amendments to section 173.
Sec. 119. Requirements and restrictions.
Sec. 120. Prompt allocation of funds.
Sec. 121. Fiscal controls; Sanctions.
Sec. 122. Reports to congress.
Sec. 123. Administrative provisions.
Sec. 124. State legislative authority.
Sec. 125. Continuation of State activities and policies.
Sec. 126. General program requirements.
Sec. 127. State unified plan.
        TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

Sec. 201. Amendment.
             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

Sec. 301. Amendments to the Wagner-Peyser Act.
              TITLE IV--REPEALS AND CONFORMING AMENDMENTS

Sec. 401. Repeals.
Sec. 402. Amendment to the Comprehensive Environmental Response, 
                            Compensation, and Liability Act of 1980.
Sec. 403. Amendments to the Food and Nutrition Act of 2008.
Sec. 404. Conforming amendment to table of contents.
         TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973

Sec. 501. Findings.
Sec. 502. Rehabilitation services administration.
Sec. 503. Definitions.
Sec. 504. State plan.
Sec. 505. Scope of services.
Sec. 506. Standards and indicators.
Sec. 507. Collaboration with industry.
Sec. 508. Reservation for expanded transition services.
Sec. 509. Client assistance program.
Sec. 510. Title III repeals.
Sec. 511. Repeal of title VI.
Sec. 512. Chairperson.
Sec. 513. Authorizations of appropriations.
Sec. 514. Conforming amendments.

SEC. 3. REFERENCES.

    Except as otherwise expressly provided, wherever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the amendment or repeal shall be 
considered to be made to a section or other provision of the Workforce 
Investment Act of 1998 (20 U.S.C. 9201 et seq.).

SEC. 4. EFFECTIVE DATE.

    Except as otherwise provided, this Act and the amendments made by 
this Act shall be effective with respect to fiscal year 2013 and 
succeeding fiscal years.

      TITLE I--AMENDMENTS TO THE WORKFORCE INVESTMENT ACT OF 1998

SEC. 101. DEFINITIONS.

    Section 101 (29 U.S.C. 2801) is amended--
            (1) by striking paragraphs (13) and (24);
            (2) by redesignating paragraphs (1) through (12) as 
        paragraphs (3) through (14), and paragraphs (14) through (23) 
        as paragraphs (15) through (24), respectively;
            (3) by striking paragraphs (52) and (53);
            (4) by inserting after ``In this title:'' the following new 
        paragraphs:
            ``(1) Accrued expenditures.--The term `accrued 
        expenditures' means charges incurred by recipients of funds 
        under this title for a given period requiring the provision of 
        funds for goods or other tangible property received; services 
        performed by employees, contractors, subgrantees, 
        subcontractors, and other payees; and other amounts becoming 
        owed under programs assisted under this title for which no 
        current services or performance is required, such as annuities, 
        insurance claims, and other benefit payments.
            ``(2) Administrative costs.--The term `administrative 
        costs' means expenditures incurred by State and local workforce 
        investment boards, direct recipients (including State grant 
        recipients under subtitle B and recipients of awards under 
        subtitle D), local grant recipients, local fiscal agents or 
        local grant subrecipients, and one-stop operators in the 
        performance of administrative functions and in carrying out 
        activities under this title which are not related to the direct 
        provision of workforce investment services (including services 
        to participants and employers). Such costs include both 
        personnel and non-personnel and both direct and indirect.'';
            (5) in paragraph (3) (as so redesignated), by striking 
        ``Except in sections 127 and 132, the'' and inserting ``The'';
            (6) by amending paragraph (5) (as so redesignated) to read 
        as follows:
            ``(5) Area career and technical education school.--The term 
        `area career and technical education school' has the meaning 
        given the term in section 3(3) of the Carl D. Perkins Career 
        and Technical Education Act of 2006 (20 U.S.C. 2302(3)).'';
            (7) in paragraph (6) (as so redesignated), by inserting 
        ``(or such other level as the Governor may establish)'' after 
        ``8th grade level'';
            (8) in paragraph (10)(C) (as so redesignated), by striking 
        ``not less than 50 percent of the cost of the training'' and 
        inserting ``a significant portion of the cost of training, as 
        determined by the local board (or, in the case of an employer 
        in multiple local areas in the State, as determined by the 
        Governor), taking into account the size of the employer and 
        such other factors as the local board determines to be 
        appropriate'';
            (9) in paragraph (11) (as so redesignated)--
                    (A) in subparagraph (A)(ii)(II), by striking 
                ``section 134(c)'' and inserting ``section 121(e)'';
                    (B) in subparagraph (B)(iii), by striking 
                ``intensive services described in section 134(d)(3)'' 
                and inserting ``work ready services described in 
                section 134(c)(2)'';
                    (C) in subparagraph (C), by striking ``or'' after 
                the semicolon;
                    (D) in subparagraph (D), by striking the period and 
                inserting ``; or''; and
                    (E) by adding at the end the following:
                    ``(E)(i) is the spouse of a member of the Armed 
                Forces on active duty for a period of more than 30 days 
                (as defined in section 101(d)(2) of title 10, United 
                States Code) who has experienced a loss of employment 
                as a direct result of relocation to accommodate a 
                permanent change in duty station of such member; or
                            ``(ii) is the spouse of a member of the 
                        Armed Forces on active duty who meets the 
                        criteria described in paragraph (12)(B).'';
            (10) in paragraph (12)(A) (as redesignated)--
                    (A) by striking ``and'' after the semicolon and 
                inserting ``or'';
                    (B) by striking ``(A)'' and inserting ``(A)(i)''; 
                and
                    (C) by adding at the end the following:
                            ``(ii) is the dependent spouse of a member 
                        of the Armed Forces on active duty for a period 
                        of more than 30 days (as defined in section 
                        101(d)(2) of title 10, United States Code) 
                        whose family income is significantly reduced 
                        because of a deployment (as defined in section 
                        991(b) of title 10, United States Code, or 
                        pursuant to paragraph (4) of such section), a 
                        call or order to active duty pursuant to a 
                        provision of law referred to in section 
                        101(a)(13)(B) of title 10, United States Code, 
                        a permanent change of station, or the service-
                        connected (as defined in section 101(16) of 
                        title 38, United States Code) death or 
                        disability of the member; and'';
            (11) in paragraph (13) (as so redesignated), by inserting 
        ``or regional'' after ``local'' each place it appears;
            (12) in paragraph (14) (as so redesignated)--
                    (A) in subparagraph (A), by striking ``section 
                122(e)(3)'' and inserting ``section 122'';
                    (B) by striking subparagraph (B), and inserting the 
                following:
                    ``(B) work ready services, means a provider who is 
                identified or awarded a contract as described in 
                section 134(c)(2);''; and
                    (C) by striking subparagraph (C);
            (13) in paragraph (15), by striking ``adult or dislocated 
        worker'' and inserting ``individual'';
            (14) in paragraph (25)--
                    (A) in subparagraph (B), by striking ``higher of--
                '' and all that follows through clause (ii) and 
                inserting ``poverty line for an equivalent period;'';
                    (B) by redesignating subparagraphs (D) through (F) 
                as subparagraphs (E) through (G), respectively; and
                    (C) by inserting after subparagraph (C) the 
                following:
                    ``(D) receives or is eligible to receive free or 
                reduced price lunch under the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1751 et seq.);'';
            (15) in paragraph (32), by striking ``the Republic of the 
        Marshall Islands, the Federated States of Micronesia,'';
            (16) by striking paragraph (33) and redesignating 
        paragraphs (34) through (53) as paragraphs (33) through (52), 
        respectively;
            (17) by striking ``134(a)(1)(A)'' and replacing with 
        ``134(a)(1)(B)'';
            (18) by amending paragraph (48) (as so redesignated) to 
        read as follows:
            ``(48) Veteran.--The term `veteran' has the same meaning 
        given the term in section 2108(1) of title 5, United States 
        Code.'';
            (19) by amending paragraph (49) (as so redesignated) to 
        read as follows:
            ``(49) Career and technical education.--The term `career 
        and technical education' has the meaning given the term in 
        section 3 of the Carl D. Perkins Career and Technical Education 
        Act of 2006 (20 U.S.C. 2302).''; and
            (20) in paragraph (51) by striking ``, and youth 
        activity.''.

SEC. 102. PURPOSE.

    Section 106 (20 U.S.C. 2811) is amended by inserting at the end the 
following: ``It is also the purpose of this subtitle to provide 
workforce investment activities in a manner that enhances employer 
engagement, promotes customer choices in the selection of training 
services, and ensures accountability in the use of the taxpayer 
funds.''.

SEC. 103. STATE WORKFORCE INVESTMENT BOARDS.

    Section 111 (20 U.S.C. 2821) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking subparagraph (B);
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (B); and
                            (iii) in subparagraph (B) (as so 
                        redesignated)--
                                    (I) by amending clause (i)(I), by 
                                striking ``section 117(b)(2)(A)(i)'' 
                                and inserting ``section 117(b)(2)(A)'';
                                    (II) by amending clause (i)(II) to 
                                read as follows:
                                    ``(II) represent businesses, 
                                including large and small businesses, 
                                with immediate and long-term employment 
                                opportunities in in-demand industries 
                                and other occupations important to the 
                                State economy; and'';
                                    (III) by striking clause (iii) and 
                                inserting the following:
                            ``(iii) a State agency official responsible 
                        for economic development; and'';
                                    (IV) by striking clauses (iv) 
                                through (vi);
                                    (V) by amending clause (vii) to 
                                read as follows:
                            ``(vii) such other representatives and 
                        State agency officials as the Governor may 
                        designate.''; and
                                    (VI) by redesignating clause (vii) 
                                (as so amended) as clause (iv); and
                    (B) by amending paragraph (3) to read as follows:
            ``(3) Majority.--A \2/3\ majority of the members of the 
        board shall be representatives described in paragraph 
        (1)(B)(i).'';
            (2) by amending subsection (c) by striking ``(b)(1)(C)(i)'' 
        and replacing with ``(b)(1)(B)(i)'';
            (3) by amending subsection (d) to read as follows:
    ``(d) Functions.--The State board shall assist the Governor of the 
State as follows:
            ``(1) State plan.--Consistent with section 112, develop a 
        State plan.
            ``(2) Statewide workforce development system.--Review and 
        develop statewide policies and programs in the State in a 
        manner that supports a comprehensive Statewide workforce 
        development system that will result in meeting the workforce 
        needs of the State and its local areas. Such review shall 
        include determining whether the State should consolidate 
        additional programs into the Workforce Investment Fund under 
        section 132(b).
            ``(3) Workforce and labor market information system.--
        Develop a statewide workforce and labor market information 
        system described in section 15(e) of the Wagner-Peyser Act, 
        which may include using existing information conducted by the 
        State economic development agency or related entity in 
        developing such system.
            ``(4) Business engagement.--Develop strategies across local 
        areas that meet the needs of businesses and support economic 
        growth in the State by enhancing communication, coordination, 
        and collaboration among businesses, economic development 
        entities, and service providers.
            ``(5) Designation of local areas.--Designate local areas as 
        required under section 116.
            ``(6) One-stop delivery system.--Identify and disseminate 
        information on best practices for effective operation of one-
        stop centers, including use of innovative business outreach, 
        partnerships, and service delivery strategies.
            ``(7) Program oversight.--Conduct the following program 
        oversight:
                    ``(A) Reviewing and approving local plans under 
                section 118.
                    ``(B) Ensuring the appropriate use of management of 
                the funds provided for State employment and training 
                activities authorized under section 134.
                    ``(C) Preparing an annual report to the Secretary 
                described in section 136(d).
            ``(8) Development of performance measures.--Develop and 
        ensure continuous improvement of comprehensive State 
        performance measures, including State adjusted levels of 
        performance, as described under section 136(b).'';
            (4) by striking subsection (e) and redesignating subsection 
        (f) as subsection (e);
            (5) in subsection (e) (as so redesignated), by inserting 
        ``or participate in action taken'' after ``vote'';
            (6) by inserting after subsection (e) (as so redesignated), 
        the following:
    ``(f) Staff.--The State board may employ staff to assist in 
carrying out the functions described in subsection (d).''; and
            (7) in subsection (g), by inserting ``electronic means 
        and'' after ``on a regular basis through''.

SEC. 104. STATE PLAN.

    Section 112 (29 U.S.C. 2822)--
            (1) in subsection (a)--
                    (A) by striking ``127 or''; and
                    (B) by striking ``5-year strategy'' and inserting 
                ``3-year strategy'';
            (2) in subsection (b)--
                    (A) by amending paragraph (4) to read as follows:
            ``(4) information describing--
                    ``(A) the economic conditions in the State;
                    ``(B) the immediate and long-term skilled workforce 
                needs of in-demand industries and other occupations 
                important to the State economy;
                    ``(C) the knowledge and skills of the workforce in 
                the State; and
                    ``(D) workforce development activities (including 
                education and training) in the State;'';
                    (B) by amending paragraph (7) to read as follows:
            ``(7) a description of the State criteria for determining 
        the eligibility of training providers in accordance with 
        section 122, including how the State will take into account the 
        performance of providers and whether the training programs 
        relate to occupations that are in-demand;'';
                    (C) by amending paragraph (8) to read as follows:
            ``(8)(A) a description of the procedures that will be taken 
        by the State to assure coordination of, and avoid duplication 
        among, the programs and activities identified under section 
        501(b)(2); and
            ``(B) a description of common data collection and reporting 
        processes used for the programs and activities described in 
        subparagraph (A), which are carried out by one-stop partners, 
        including--
                    ``(i) assurances that such processes use quarterly 
                wage records for performance measures described in 
                section 136(b)(2)(A) that are applicable to such 
                programs or activities; or
                    ``(ii) if such wage records are not being used for 
                the performance measures, an identification of the 
                barriers to using such wage records and a description 
                of how the State will address such barriers within one 
                year of the approval of the plan;'';
                    (D) in paragraph (9), by striking ``, including 
                comment by representatives of businesses and 
                representatives of labor organizations,'';
                    (E) in paragraph (11), by striking ``under sections 
                127 and 132'' and inserting ``under section 132,'';
                    (F) by striking paragraph (12);
                    (G) by redesignating paragraphs (13) through (18) 
                as paragraphs (12) through (17), respectively;
                    (H) by amending paragraph (12) (as so redesignated) 
                by striking ``(111)(f) and 117(g)'' and inserting 
                ``111(e) and 117(f)'';
                    (I) by amending paragraph (13) (as so redesignated) 
                by striking ``134(c)'' and inserting ``121(e)'';
                    (J) by amending paragraph (14) (as so redesignated) 
                by striking ``116(a)(5)'' and inserting ``116(a)(4)'';
                    (K) in paragraph (16) (as so redesignated)--
                            (i) in subparagraph (A)--
                                    (I) in clause (ii), by striking 
                                ``to dislocated workers'';
                                    (II) in clause (iii), by striking 
                                ``134(d)(4)'' and inserting 
                                ``134(c)(4)'';
                                    (III) by striking ``and'' at the 
                                end of clause (iii);
                                    (IV) by amending clause (iv) to 
                                read as follows:
                            ``(iv) how the State will serve the 
                        employment and training needs of dislocated 
                        workers (including displaced homemakers), low-
                        income individuals (including recipients of 
                        public assistance such as the Supplemental 
                        Nutrition Assistance Program), English 
                        learners, homeless individuals, individuals 
                        training for nontraditional employment, youth, 
                        older workers, ex-offenders, migrant and 
                        seasonal farmworkers, refugee and entrants, 
                        veterans (including disabled and homeless 
                        veterans), and Native Americans; and''; and
                                    (V) by adding at the end the 
                                following new clause:
                            ``(v) how the State will--
                                    ``(I) consistent with section 188 
                                and Executive Order 13217 (42 U.S.C. 
                                12131 note), serve the employment and 
                                training needs of individuals with 
                                disabilities; and
                                    ``(II) consistent with sections 504 
                                and 508 of the Rehabilitation Act of 
                                1973, include the provision of 
                                outreach, intake, assessments, and 
                                service delivery, the development of 
                                performance measures, the training of 
                                staff, and other aspects of 
                                accessibility to programs and services 
                                under this subtitle;''; and
                            (ii) in subparagraph (B), by striking ``to 
                        the extent practicable'' and inserting ``in 
                        accordance with the requirements of the Jobs 
                        for Veterans Act (Public Law 107-288) and the 
                        amendments made by such Act''; and
                    (L) by striking paragraph (17) (as so redesignated) 
                and inserting the following:
            ``(17) a description of the strategies and services that 
        will be used in the State--
                    ``(A) to more fully engage businesses, including 
                businesses in in-demand industries and occupations 
                important to the State economy;
                    ``(B) to meet the needs of businesses in the State; 
                and
                    ``(C) to better coordinate workforce development 
                programs with economic development;
            ``(18) a description of how the State board will convene 
        (or help to convene) industry or sector partnerships that lead 
        to collaborative planning, resource alignment, and training 
        efforts across multiple firms for a range of workers employed 
        or potentially employed by a targeted industry cluster--
                    ``(A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in targeted industry 
                clusters;
                    ``(B) to address the immediate and long-term 
                skilled, workforce needs of in-demand industries and 
                other occupations important to the State economy, and
                    ``(C) to address critical skill gaps within and 
                across industries;
            ``(19) a description of how the State will utilize 
        technology to facilitate access to services in remote areas, 
        which may be used throughout the State;
            ``(20) a description of the State strategy and assistance 
        to be provided for encouraging regional cooperation within the 
        State and across State borders, as appropriate;
            ``(21) a description of the actions that will be taken by 
        the State to foster communication and partnerships with non-
        profit organizations (including community, faith-based, and 
        philanthropic organizations) that provide employment-related, 
        training, and complementary services, to enhance the quality 
        and comprehensiveness of services available to participants 
        under this title; and
            ``(22) a description of the process and methodology for 
        determining--
                    ``(A) one-stop partner program contributions for 
                the cost of the infrastructure of one-stop centers 
                under section 121(h)(1); and
                    ``(B) the formula for allocating such 
                infrastructure funds to local areas under section 
                121(h)(3).'';
            (3) in subsection (c), by striking ``period, that--'' all 
        that follows through paragraph (2) and inserting ``period, that 
        the plan is inconsistent with the provisions of this title.''; 
        and
            (4) in subsection (d), by striking ``5-year'' and inserting 
        ``3-year''.

SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS.

    Section 116 (20 U.S.C. 2831) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``Except as 
                                provided in subsection (b), and 
                                consistent with paragraphs (2), (3), 
                                and (4), in'' and inserting ``In''; and
                                    (II) by striking ``127 or''; and
                            (ii) by amending subparagraph (B) to read 
                        as follows:
                    ``(B) Considerations.--In making the designation of 
                local areas, the Governor shall take into consideration 
                the following:
                            ``(i) The extent to which such local areas 
                        are consistent with labor market areas.
                            ``(ii) The extent to which labor market 
                        areas align with economic development regions.
                            ``(iii) Whether such local areas have the 
                        appropriate education and training providers to 
                        meet the needs of the local workforce.
                            ``(iv) The distance that individuals will 
                        need to travel to receive services provided in 
                        such local areas.'';
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Technical assistance.--The Secretary shall, if 
        requested by the Governor of a State, provide the State with 
        technical assistance in making the determinations required 
        under paragraph (1). The Secretary shall not issue regulations 
        governing determinations to be made under paragraph (1).'';
                    (C) by striking paragraph (3) and inserting the 
                following:
            ``(3) Designation on recommendation of state board.--The 
        Governor may approve a request from any unit of general local 
        government (including a combination of such units) for 
        designation as a local area under paragraph (1) if the State 
        board determines, taking into account the factors described in 
        clauses (i) through (iv) of paragraph (1)(B), and recommends to 
        the Governor, that such area shall be so designated.'';
                    (D) by striking paragraph (4); and
                    (E) by redesignating paragraph (5) as paragraph 
                (4);
            (2) by amending subsection (b) to read as follows:
    ``(b) Single States.--Consistent with subsection (a)(1)(B), the 
Governor may designate a State as a single State local area for the 
purposes of this title.''; and
            (3) in subsection (c)--
                    (A) in paragraph (1), by adding at the end the 
                following: ``The State may require the local boards for 
                the designated region to prepare a single regional plan 
                that incorporates the elements of the local plan under 
                section 118 and that is submitted and approved in lieu 
                of separate local plans under such section.''; and
                    (B) in paragraph (2), by striking ``employment 
                statistics'' and inserting ``workforce and labor market 
                information''.

SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS.

    Section 117 (29 U.S.C. 2832) is amended--
            (1) in subsection (b)--
                    (A) in subparagraph (A) of paragraph (2)--
                            (i) by striking ``include--'' and all that 
                        follows through ``representatives'' and 
                        inserting ``include representatives'';
                            (ii) by striking clauses (ii) through (vi);
                            (iii) by redesignating subclauses (I) 
                        through (III) as clauses (i) through (iii), 
                        respectively;
                            (iv) by striking clause (ii) (as so 
                        redesignated) and inserting the following: 
                        ``(ii) represent businesses, including large 
                        and small businesses, with immediate and long-
                        term employment opportunities in in-demand 
                        industries and other occupations important to 
                        the local economy; and''; and
                            (v) by striking the semicolon at the end of 
                        clause (iii) (as so redesignated) and inserting 
                        ``; and'';
                    (B) in paragraph (4)--
                            (i) by striking ``A majority'' and 
                        inserting ``A \2/3\ majority''; and
                            (ii) by striking ``(2)(A)(i)'' and 
                        inserting ``(2)(A)'';
                    (C) in paragraph (5) by striking ``(2)(A)(i)'' and 
                inserting ``(2)(A)''; and
                    (D) by striking subsection (c)(1)(C);
            (2) by amending subsection (d) to read as follows:
    ``(d) Functions of Local Board.--The functions of the local board 
shall include the following:
            ``(1) Local plan.--Consistent with section 118, each local 
        board, in partnership with the chief elected official for the 
        local area involved, shall develop and submit a local plan to 
        the Governor.
            ``(2) Workforce research and regional labor market 
        analysis.--
                    ``(A) In general.--The local board shall--
                            ``(i) conduct, and regularly update, an 
                        analysis of--
                                    ``(I) the economic conditions in 
                                the local area;
                                    ``(II) the immediate and long-term 
                                skilled workforce needs of in-demand 
                                industries and other occupations 
                                important to the local economy;
                                    ``(III) the knowledge and skills of 
                                the workforce in the local area; and
                                    ``(IV) workforce development 
                                activities (including education and 
                                training) in the local area; and
                            ``(ii) assist the Governor in developing 
                        the statewide workforce and labor market 
                        information system described in section 15(e) 
                        of the Wagner-Peyser Act.
                    ``(B) Existing analysis.--A local board may use 
                existing analysis by the local economic development 
                agency or related entity in order to carry out 
                requirements of subparagraph (A)(i).
            ``(3) Business engagement.--The local Board shall meet the 
        needs of business and support economic growth in the local area 
        by enhancing communication, coordination, and collaboration 
        among businesses, economic development agencies, and service 
        providers.
            ``(4) Budget and administration.--
                    ``(A) Budget.--
                            ``(i) In general.--The local board shall 
                        develop a budget for the activities of the 
                        local board in the local area, consistent with 
                        the requirements of this subsection.
                            ``(ii) Training reservation.--In developing 
                        a budget under clause (i), the local board 
                        shall reserve a percentage of funds to carry 
                        out the activities specified in section 
                        134(c)(4). The local board shall use the 
                        analysis conducted under paragraph (2)(A)(i) to 
                        determine the appropriate percentage of funds 
                        to reserve under this clause.
                    ``(B) Administration.--
                            ``(i) Grant recipient.--
                                    ``(I) In general.--The chief 
                                elected official in a local area shall 
                                serve as the local grant recipient for, 
                                and shall be liable for any misuse of, 
                                the grant funds allocated to the local 
                                area under section 133, unless the 
                                chief elected official reaches an 
                                agreement with the Governor for the 
                                Governor to act as the local grant 
                                recipient and bear such liability.
                                    ``(II) Designation.--In order to 
                                assist in administration of the grant 
                                funds, the chief elected official or 
                                the Governor, where the Governor serves 
                                as the local grant recipient for a 
                                local area, may designate an entity to 
                                serve as a local grant subrecipient for 
                                such funds or as a local fiscal agent. 
                                Such designation shall not relieve the 
                                chief elected official or the Governor 
                                of the liability for any misuse of 
                                grant funds as described in subclause 
                                (I).
                                    ``(III) Disbursal.--The local grant 
                                recipient or an entity designated under 
                                subclause (II) shall disburse the grant 
                                funds for workforce investment 
                                activities at the direction of the 
                                local board, pursuant to the 
                                requirements of this title. The local 
                                grant recipient or entity designated 
                                under subclause (II) shall disburse the 
                                funds immediately on receiving such 
                                direction from the local board.
                            ``(ii) Staff.--The local board may employ 
                        staff to assist in carrying out the functions 
                        described in this subsection.
                            ``(iii) Grants and donations.--The local 
                        board may solicit and accept grants and 
                        donations from sources other than Federal funds 
                        made available under this Act.
            ``(5) Selection of operators and providers.--
                    ``(A) Selection of one-stop operators.--Consistent 
                with section 121(d), the local board, with the 
                agreement of the chief elected official--
                            ``(i) shall designate or certify one-stop 
                        operators as described in section 121(d)(2)(A); 
                        and
                            ``(ii) may terminate for cause the 
                        eligibility of such operators.
                    ``(B) Identification of eligible training service 
                providers.--Consistent with this subtitle, the local 
                board shall identify eligible providers of training 
                services described in section 134(c)(4), in the local 
                area.
                    ``(C) Identification of eligible providers of work 
                ready services.--If the one-stop operator does not 
                provide the services described in section 134(c)(2) in 
                the local area, the local board shall identify eligible 
                providers of such services in the local area by 
                awarding contracts.
            ``(6) Program oversight.--The local board, in partnership 
        with the chief elected official, shall be responsible for--
                    ``(A) ensuring the appropriate use of management of 
                the funds provided for local employment and training 
                activities authorized under section 134(b); and
                    ``(B) conducting oversight of the one-stop delivery 
                system in the local area authorized under section 121.
            ``(7) Negotiation of local performance measures.--The local 
        board, the chief elected official, and the Governor shall 
        negotiate and reach agreement on local performance measures as 
        described in section 136(c).
            ``(8) Technology improvements.--The local board shall 
        develop strategies for technology improvements to facilitate 
        access to services authorized under this subtitle and carried 
        out in the local area, including in remote areas.'';
            (3) in subsection (e)--
                    (A) by inserting ``electronic means and'' after 
                ``regular basis through''; and
                    (B) by striking ``and the award of grants or 
                contracts to eligible providers of youth activities,'';
            (4) in subsection (f), by striking paragraph (2) and 
        inserting the following:
            ``(2) Work ready services, designation, or certification as 
        one-stop operators.--A local board may provide work ready 
        services described in section 134(c)(2) through a one-stop 
        delivery system described in section 121 or be designated or 
        certified as a one-stop operator only with the agreement of the 
        chief elected official and the Governor.'';
            (5) in subsection (g)(1), by inserting ``or participate in 
        action taken'' after ``vote''; and
            (6) by striking subsections (h) and (i).

SEC. 107. LOCAL PLAN.

    Section 118 (29 U.S.C. 2833) is amended--
            (1) in subsection (a), by striking ``5-year'' and inserting 
        ``3-year'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Contents.--The local plan shall include--
            ``(1) a description of the analysis of the local area's 
        economic and workforce conditions conducted under section 
        117(d)(2)(A)(i), and an assurance that the local board will use 
        such analysis to carry out the activities under this subtitle;
            ``(2) a description of the one-stop delivery system in the 
        local area, including--
                    ``(A) a description of how the local board will 
                ensure--
                            ``(i) the continuous improvement of 
                        eligible providers of services through the 
                        system; and
                            ``(ii) that such providers meet the 
                        employment needs of local businesses and 
                        participants; and
                    ``(B) a description of how the local board will 
                facilitate access to services provided through the one-
                stop delivery system consistent with section 117(d)(8);
            ``(3) a description of the strategies and services that 
        will be used in the local area--
                    ``(A) to more fully engage businesses, including 
                businesses in in-demand industries and occupations 
                important to the local economy;
                    ``(B) to meet the needs of businesses in the local 
                area; and
                    ``(C) to better coordinate workforce development 
                programs with economic development;
            ``(4) a description of how the local board will convene (or 
        help to convene) industry or sector partnerships that lead to 
        collaborative planning, resource alignment, and training 
        efforts across multiple firms for a range of workers employed 
        or potentially employed by a targeted industry cluster--
                    ``(A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in targeted industry 
                clusters;
                    ``(B) to address the immediate and long-term 
                skilled workforce needs of in-demand industries and 
                other occupations important to the local economy, and
                    ``(C) to address critical skill gaps within and 
                across industries;
            ``(5) a description of how the funds reserved under section 
        117(d)(4)(A)(ii) will be used to carry out activities described 
        in section 134(c)(4);
            ``(6) a description of how the local board will coordinate 
        workforce investment activities carried out in the local area 
        with statewide activities, as appropriate;
            ``(7) a description of how the local area will--
                    ``(A) coordinate activities with the local area's 
                disability community to make available comprehensive, 
                high-quality services to individuals with disabilities;
                    ``(B) consistent with section 188 and Executive 
                Order 13217 (42 U.S.C. 12131 note), serve the 
                employment and training needs of individuals with 
                disabilities; and
                    ``(C) consistent with sections 504 and 508 of the 
                Rehabilitation Act of 1973, include the provision of 
                outreach, intake, assessments, and service delivery, 
                the development of performance measures, the training 
                of staff, and other aspects of accessibility to 
                programs and services under this subtitle;
            ``(8) a description of the local levels of performance 
        negotiated with the Governor and chief elected official 
        pursuant to section 136(c), to be--
                    ``(A) used to measure the performance of the local 
                area; and
                    ``(B) used by the local board for measuring 
                performance of the local fiscal agent (where 
                appropriate), eligible providers, and the one-stop 
                delivery system, in the local area;
            ``(9) a description of the process used by the local board, 
        consistent with subsection (c), to provide an opportunity for 
        public comment prior to submission of the plan;
            ``(10) a description of how the local area will serve the 
        employment and training needs of dislocated workers (including 
        displaced homemakers), low-income individuals (including 
        recipients of public assistance such as the Supplemental 
        Nutrition Assistance Program), English learners, homeless 
        individuals, individuals training for nontraditional 
        employment, youth, older workers, ex-offenders, migrant and 
        seasonal farmworkers, refugee and entrants, veterans (including 
        disabled veterans and homeless veterans), and Native Americans;
            ``(11) an identification of the entity responsible for the 
        disbursal of grant funds described in subclause (III) of 
        section 117(d)(4)(B)(i), as determined by the chief elected 
        official or the Governor under such section; and
            ``(12) such other information as the Governor may 
        require.'';
            (3) in subsection (c)(1), by striking ``such means'' and 
        inserting ``electronic means such''; and
            (4) in subsection (c)(2), by striking ``, including 
        representatives of business and representatives of labor 
        organizations,''.

SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEM.

    Section 121 (29 U.S.C. 2841) is amended--
            (1) in subsection (b)--
                    (A) by striking subparagraph (A) of paragraph (1) 
                and inserting the following:
                    ``(A) Roles and responsibilities of one-stop 
                partners.--Each entity that carries out a program or 
                activities described in subparagraph (B) shall--
                            ``(i) provide access through the one-stop 
                        delivery system to the programs and activities 
                        carried out by the entity, including making the 
                        work ready services described in section 
                        134(c)(2) that are applicable to the program of 
                        the entity available at the one-stop centers 
                        (in addition to any other appropriate 
                        locations);
                            ``(ii) use a portion of the funds available 
                        to the program of the entity to maintain the 
                        one-stop delivery system, including payment of 
                        the infrastructure costs of one-stop centers in 
                        accordance with subsection (h);
                            ``(iii) enter into a local memorandum of 
                        understanding with the local board relating to 
                        the operation of the one-stop delivery system 
                        that meets the requirements of subsection (c); 
                        and
                            ``(iv) participate in the operation of the 
                        one-stop delivery system consistent with the 
                        terms of the memorandum of understanding, the 
                        requirements of this title, and the 
                        requirements of the Federal laws authorizing 
                        the programs carried out by the entity.'';
                    (B) in paragraph (1)(B)--
                            (i) by striking clause (vi); and
                            (ii) by redesignating clauses (vii) through 
                        (xii) as clauses (vi) through (xi), 
                        respectively; and
                    (C) in paragraph (2)(B)--
                            (i) by striking clause (ii) and (v);
                            (ii) by redesignating clauses (iii) through 
                        (iv) as clauses (ii) through (iii), 
                        respectively; and
                            (iii) by adding at the end the following:
                            ``(iv) employment and training programs 
                        administered by the Commissioner of the Social 
                        Security Administration;
                            ``(v) employment and training programs 
                        carried out by the Administrator of the Small 
                        Business Administration;
                            ``(vi) employment, training, and literacy 
                        services carried out by public libraries; and
                            ``(vii) other appropriate Federal, State, 
                        or local programs, including programs in the 
                        private sector.'';
            (2) in subsection (c)(2), by amending subparagraph (A) to 
        read as follows:
                    ``(A) provisions describing--
                            ``(i) the services to be provided through 
                        the one-stop delivery system consistent with 
                        the requirements of this section, including the 
                        manner in which the services will be 
                        coordinated through such system;
                            ``(ii) how the costs of such services and 
                        the operating costs of such system will be 
                        funded, through cash and in-kind contributions, 
                        to provide a stable and equitable funding 
                        stream for ongoing one-stop system operations, 
                        including the funding of the infrastructure 
                        costs of one-stop centers in accordance with 
                        subsection (h);
                            ``(iii) methods of referral of individuals 
                        between the one-stop operator and the one-stop 
                        partners for appropriate services and 
                        activities; and
                            ``(iv) the duration of the memorandum of 
                        understanding and the procedures for amending 
                        the memorandum during the term of the 
                        memorandum, and assurances that such memorandum 
                        shall be reviewed not less than once every 2-
                        year period to ensure appropriate funding and 
                        delivery of services; and'';
            (3) in subsection (d)--
                    (A) in the heading for paragraph (1), by striking 
                ``designation and certification'' and inserting ``local 
                designation and certification'';
                    (B) in paragraph (2)--
                            (i) by striking ``section 134(c)'' and 
                        inserting ``subsection (e)'';
                            (ii) by amending subparagraph (A) to read 
                        as follows:
                    ``(A) shall be designated or certified as a one-
                stop operator through a competitive process; and''; and
                            (iii) in subparagraph (B), by striking 
                        clause (ii) and redesignating clauses (iii) 
                        through (vi) as clauses (ii) through (v), 
                        respectively; and
                    (C) in paragraph (3), by striking ``vocational'' 
                and inserting ``career and technical'';
            (4) by amending subsection (e) to read as follows:
    ``(e) Establishment of One-Stop Delivery System.--
            ``(1) In general.--There shall be established in a State 
        that receives an allotment under section 132(b) a one-stop 
        delivery system, which shall--
                    ``(A) provide the work ready services described in 
                section 134(c)(2);
                    ``(B) provide access to training services as 
                described in section 134(c)(4), including serving as 
                the point of access to career enhancement accounts for 
                training services to participants in accordance with 
                paragraph (4)(G) of such section;
                    ``(C) provide access to the activities carried out 
                under section 134(d), if any;
                    ``(D) provide access to programs and activities 
                carried out by one-stop partners that are described in 
                subsection (b) of this section; and
                    ``(E) provide access to the information described 
                in section 15(e) of the Wagner-Peyser Act (29 U.S.C. 
                49l-2(e)).
            ``(2) One-stop delivery.--At a minimum, the one-stop 
        delivery system--
                    ``(A) shall make each of the programs, services, 
                and activities described in paragraph (1) accessible at 
                not less than one physical center in each local area of 
                the State; and
                    ``(B) may also make programs, services, and 
                activities described in paragraph (1) available--
                            ``(i) through a network of affiliated sites 
                        that can provide one or more of the programs, 
                        services, and activities to individuals; and
                            ``(ii) through a network of eligible one-
                        stop partners--
                                    ``(I) in which each partner 
                                provides one or more of the programs, 
                                services, and activities to such 
                                individuals and is accessible at an 
                                affiliated site that consists of a 
                                physical location or an electronically- 
                                or technologically-linked access point; 
                                and
                                    ``(II) that assures individuals 
                                that information on the availability of 
                                the work ready services will be 
                                available regardless of where the 
                                individuals initially enter the 
                                statewide workforce investment system, 
                                including information made available 
                                through an access point described in 
                                subclause (I).
            ``(3) Specialized centers.--The centers and sites described 
        in paragraph (2) may have a specialization in addressing 
        special needs.''; and
            (5) by adding at the end the following:
    ``(g) Certification of One-Stop Centers.--
            ``(1) In general.--
                    ``(A) In general.--The State board shall establish 
                objective procedures and criteria for periodically 
                certifying one-stop centers for the purpose of awarding 
                the one-stop infrastructure funding described in 
                subsection (h).
                    ``(B) Criteria.--The criteria for certification 
                under this subsection shall include--
                            ``(i) meeting all of the expected levels of 
                        performance for each of the core indicators of 
                        performance as outlined in the State plan under 
                        section 112;
                            ``(ii) meeting minimum standards relating 
                        to the scope and degree of service integration 
                        achieved by the centers involving the programs 
                        provided by the one-stop partners; and
                            ``(iii) meeting minimum standards relating 
                        to how the centers ensure that eligible 
                        providers meet the employment needs of local 
                        employers and participants.
                    ``(C) Effect of certification.--One-stop centers 
                certified under this subsection shall be eligible to 
                receive the infrastructure grants authorized under 
                subsection (h).
            ``(2) Local boards.--Consistent with the criteria developed 
        by the State, the local board may develop additional criteria 
        of higher standards to respond to local labor market and 
        demographic conditions and trends.
    ``(h) One-Stop Infrastructure Funding.--
            ``(1) Partner contributions.--
                    ``(A) Provision of funds.--Notwithstanding any 
                other provision of law, as determined under 
                subparagraph (B), a portion of the Federal funds 
                provided to the State and areas within the State under 
                the Federal laws authorizing the one-stop partner 
                programs described in subsection (b)(1)(B) and 
                participating additional partner programs described in 
                (b)(2)(B) for a fiscal year shall be provided to the 
                Governor by such programs to carry out this subsection.
                    ``(B) Determination of governor.--
                            ``(i) In general.--Subject to subparagraph 
                        (C), the Governor, in consultation with the 
                        State board, shall determine the portion of 
                        funds to be provided under subparagraph (A) by 
                        each one-stop partner and in making such 
                        determination shall consider the proportionate 
                        use of the one-stop centers by each partner, 
                        the costs of administration for purposes not 
                        related to one-stop centers for each partner, 
                        and other relevant factors described in 
                        paragraph (3).
                            ``(ii) Special rule.--In those States where 
                        the State constitution places policy-making 
                        authority that is independent of the authority 
                        of the Governor in an entity or official with 
                        respect to the funds provided for adult 
                        education and literacy activities authorized 
                        under title II of this Act and for 
                        postsecondary career education activities 
                        authorized under the Carl D. Perkins Career and 
                        Technical Education Act, the determination 
                        described in clause (i) with respect to such 
                        programs shall be made by the Governor with the 
                        appropriate entity or official with such 
                        independent policy-making authority.
                            ``(iii) Appeal by one-stop partners.--The 
                        Governor shall establish a procedure for the 
                        one-stop partner administering a program 
                        described in subsection (b) to appeal a 
                        determination regarding the portion of funds to 
                        be contributed under this paragraph on the 
                        basis that such determination is inconsistent 
                        with the criteria described in the State plan 
                        or with the requirements of this paragraph. 
                        Such procedure shall ensure prompt resolution 
                        of the appeal.
                    ``(C) Limitations.--
                            ``(i) Provision from administrative 
                        funds.--The funds provided under this paragraph 
                        by each one-stop partner shall be provided only 
                        from funds available for the costs of 
                        administration under the program administered 
                        by such partner, and shall be subject to the 
                        limitations with respect to the portion of 
                        funds under such programs that may be used for 
                        administration.
                            ``(ii) Federal direct spending programs.--
                        Programs that are Federal direct spending under 
                        section 250(c)(8) of the Balanced Budget and 
                        Emergency Deficit Control Act of 1985 (2 U.S.C. 
                        900(c)(8)) shall not, for purposes of this 
                        paragraph, be required to provide an amount in 
                        excess of the amount determined to be 
                        equivalent to the proportionate use of the one-
                        stop centers by such programs in the State.
            ``(2) Allocation by governor.--From the funds provided 
        under paragraph (1), the Governor shall allocate funds to local 
        areas in accordance with the formula established under 
        paragraph (3) for the purposes of assisting in paying the costs 
        of the infrastructure of one-stop centers certified under 
        subsection (g).
            ``(3) Allocation formula.--The State board shall develop a 
        formula to be used by the Governor to allocate the funds 
        described in paragraph (1). The formula shall include such 
        factors as the State board determines are appropriate, which 
        may include factors such as the number of centers in the local 
        area that have been certified, the population served by such 
        centers, and the performance of such centers.
            ``(4) Costs of infrastructure.--For purposes of this 
        subsection, the term `costs of infrastructure' means the 
        nonpersonnel costs that are necessary for the general operation 
        of a one-stop center, including the rental costs of the 
        facilities, the costs of utilities and maintenance, and 
        equipment (including adaptive technology for individuals with 
        disabilities).
    ``(i) Other Funds.--
            ``(1) In general.--In addition to the funds provided to 
        carry out subsection (h), a portion of funds made available 
        under Federal law authorizing the one-stop partner programs 
        described in subsection (b)(1)(B) and participating additional 
        partner programs described in subsection (b)(2)(B), or the 
        noncash resources available under such programs shall be used 
        to pay the costs relating to the operation of the one-stop 
        delivery system that are not paid for from the funds provided 
        under subsection (h), to the extent not inconsistent with the 
        Federal law involved including--
                    ``(A) infrastructure costs that are in excess of 
                the funds provided under subsection (h);
                    ``(B) common costs that are in addition to the 
                costs of infrastructure; and
                    ``(C) the costs of the provision of work ready 
                services applicable to each program.
            ``(2) Determination and guidance.--The method for 
        determining the appropriate portion of funds and noncash 
        resources to be provided by each program under paragraph (1) 
        shall be determined as part of the memorandum of understanding 
        under subsection (c). The State board shall provide guidance to 
        facilitate the determination of appropriate allocation of the 
        funds and noncash resources in local areas.''.

SEC. 109. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.

    Section 122 (29 U.S.C. 2842) is amended to read as follows:

``SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.

    ``(a) Eligibility.--
            ``(1) In general.--The Governor, after consultation with 
        the State board, shall establish criteria and procedures 
        regarding the eligibility of providers of training services 
        described in section 134(c)(4) to receive funds provided under 
        section 133(b) for the provision of such training services.
            ``(2) Providers.--Subject to the provisions of this 
        section, to be eligible to receive the funds provided under 
        section 133(b) for the provision of training services, the 
        provider shall be--
                    ``(A) a postsecondary educational institution 
                that--
                            ``(i) is eligible to receive Federal funds 
                        under title IV of the Higher Education Act of 
                        1965 (20 U.S.C. 1070 et seq.); and
                            ``(ii) provides a program that leads to an 
                        associate degree, baccalaureate degree, or 
                        industry-recognized certification;
                    ``(B) an entity that carries out programs 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
                    ``(C) another public or private provider of a 
                program of training services.
            ``(3) Inclusion in list of eligible providers.--A provider 
        described in subparagraph (A) or (C) of paragraph (2) shall 
        comply with the criteria and procedures established under this 
        section to be included on the list of eligible providers of 
        training services described in subsection (d)(1). A provider 
        described in paragraph (2)(B) shall be included on the list of 
        eligible providers of training services described in subsection 
        (d)(1) for so long as the provider remains certified by the 
        Secretary of Labor to carry out the programs described in 
        paragraph (2)(B).
    ``(b) Criteria.--
            ``(1) In general.--The criteria established pursuant to 
        subsection (a) shall take into account--
                    ``(A) the performance of providers of training 
                services with respect to the performance measures 
                described in section 136 and other matters for which 
                information is required under paragraph (2) and other 
                appropriate measures of performance outcomes for those 
                participants receiving training services under this 
                subtitle (taking into consideration the characteristics 
                of the population served and relevant economic 
                conditions);
                    ``(B) whether the training programs of such 
                providers relate to occupations that are in demand;
                    ``(C) the need to ensure access to training 
                services throughout the State, including in rural 
                areas;
                    ``(D) the ability of providers to offer programs 
                that lead to a degree or an industry-recognized 
                certification, certificate, or mastery;
                    ``(E) the information such providers are required 
                to report to State agencies with respect to other 
                Federal and State programs (other than the program 
                carried out under this subtitle), including one-stop 
                partner programs; and
                    ``(F) such other factors as the Governor determines 
                are appropriate.
            ``(2) Information.--The criteria established by the 
        Governor shall require that a provider of training services 
        submit appropriate, accurate, and timely information to the 
        State for purposes of carrying out subsection (d), with respect 
        to participants receiving training services under this subtitle 
        in the applicable program, including--
                    ``(A) information on degrees and industry-
                recognized certifications received by such 
                participants;
                    ``(B) information on costs of attendance for such 
                participants;
                    ``(C) information on the program completion rate 
                for such participants; and
                    ``(D) information on the performance of the 
                provider with respect to the performance measures 
                described in section 136 for such participants (taking 
                into consideration the characteristics of the 
                population served and relevant economic conditions), 
                which shall include information specifying the 
                percentage of such participants who entered 
                unsubsidized employment in an occupation related to the 
                program.
            ``(3) Renewal.--The criteria established by the Governor 
        shall also provide for biennial review and renewal of 
        eligibility under this section for providers of training 
        services.
            ``(4) Local criteria.--A local board in the State may 
        establish criteria in addition to the criteria established by 
        the Governor, or may require higher levels of performance than 
        required under the criteria established by the Governor, for 
        purposes of determining the eligibility of providers of 
        training services to receive funds described in subsection (a) 
        to provide the services in the local area involved.
            ``(5) Limitation.--In carrying out the requirements of this 
        subsection, no personally identifiable information regarding a 
        student, including Social Security number, student 
        identification number, or other identifier, may be disclosed 
        without the prior written consent of the parent or eligible 
        student in compliance with section 444 of the General Education 
        Provisions Act (20 U.S.C. 1232g).
    ``(c) Procedures.--The procedures established under subsection (a) 
shall--
            ``(1) identify--
                    ``(A) the application process for a provider of 
                training services to become eligible to receive funds 
                under section 133(b) for the provision of training 
                services; and
                    ``(B) the respective roles of the State and local 
                areas in receiving and reviewing applications and in 
                making determinations of eligibility based on the 
                criteria established under this section; and
            ``(2) establish a process for a provider of training 
        services to appeal a denial 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.
    ``(d) Information To Assist Participants in Choosing Providers.--
            ``(1) In general.--In order to facilitate and assist 
        participants under chapter 5 in choosing providers of training 
        services, the Governor shall ensure that an appropriate list or 
        lists of providers determined eligible under this section in 
        the State, including information regarding the occupations in 
        demand that relate to the training programs of such providers 
        and the accompanying information described in paragraph (2), is 
        provided to the local boards in the State to be made available 
        to such participants and to members of the public through the 
        one-stop delivery system in the State.
            ``(2) Availability through one-stop delivery system.--The 
        list 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.
    ``(e) Enforcement.--
            ``(1) In general.--The criteria and procedures established 
        under this section shall provide the following:
                    ``(A) Intentionally supplying inaccurate 
                information.--Upon a determination, by an individual or 
                entity specified in the criteria or procedures, that a 
                provider of training services, or individual providing 
                information on behalf of the provider, intentionally 
                supplied inaccurate information under this section, the 
                eligibility of such provider to receive funds under 
                chapter 5 shall be terminated for a period of time that 
                is not less than 2 years.
                    ``(B) Substantial violations.--Upon a 
                determination, by an individual or entity specified in 
                the criteria or procedures, that a provider of training 
                services substantially violated any requirement under 
                this title, the eligibility of such provider to receive 
                funds under the program involved shall be terminated.
                    ``(C) Repayment.--A provider of training services 
                whose eligibility is terminated under subparagraph (A) 
                or (B) shall be liable for the repayment of funds 
                received under chapter 5 during a period of 
                noncompliance described in such subparagraph.
            ``(2) Construction.--Paragraph (1) shall be construed to 
        provide remedies and penalties that supplement, but do not 
        supplant, other civil and criminal remedies and penalties.
    ``(f) Agreements With Other States.--States may enter into 
agreements, on a reciprocal basis, to permit eligible providers of 
training services to accept career enhancement accounts provided in 
another State.
    ``(g) Recommendations.--In developing the criteria, procedures, and 
information required under this section, the Governor shall solicit and 
take into consideration the recommendations of local boards and 
providers of training services within the State.
    ``(h) Opportunity To Submit Comments.--During the development of 
the criteria, procedures, requirements for information, and the list of 
eligible providers required under this section, the Governor shall 
provide an opportunity for interested members of the public to submit 
comments regarding such criteria, procedures, and information.
    ``(i) On-the-Job Training or Customized Training Exception.--
            ``(1) In general.--Providers of on-the-job training or 
        customized training shall not be subject to the requirements of 
        subsections (a) through (d).
            ``(2) Collection and dissemination of information.--A one-
        stop operator in a local area shall collect such performance 
        information from on-the-job training and customized training 
        providers as the Governor may require, determine whether the 
        providers meet such performance criteria as the Governor may 
        require, and disseminate information identifying 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.''.

SEC. 110. GENERAL AUTHORIZATION.

    Chapter 5 of subtitle B of title I is amended--
            (1) by striking the heading for chapter 5 and inserting the 
        following: ``EMPLOYMENT AND TRAINING ACTIVITIES''; and
            (2) in section 131 (29 U.S.C. 2861)--
                    (A) by striking ``paragraphs (1)(B) and (2)(B) 
                of''; and
                    (B) by striking ``adults, and dislocated workers,'' 
                and inserting ``individuals''.

SEC. 111. STATE ALLOTMENTS.

    Section 132 (29 U.S.C. 2862) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) In General.--The Secretary shall--
            ``(1) reserve 2 percent of the total amount appropriated 
        under section 137 for a fiscal year, of which--
                    ``(A) not less than 90 percent shall be used for 
                national emergency grants under section 173;
                    ``(B) not more than 5 percent may be used to 
                provide technical assistance under section 170; and
                    ``(C) not more than 5 percent may be used for 
                evaluations under section 172;
            ``(2) reserve not more than 1 percent of the total amount 
        appropriated under section 137 for a fiscal year to make grants 
        to, and enter into contracts or cooperative agreements with 
        Indian tribes, tribal organizations, Alaska-Native entities, 
        Indian-controlled organizations serving Indians, or Native 
        Hawaiian organizations to carry out employment and training 
        activities; and
            ``(3) from the remaining amount appropriated under section 
        137 for a fiscal year (after reserving funds under paragraphs 
        (1) and (2)), make allotments in accordance with subsection (b) 
        of this section.''; and
            (2) by amending subsection (b) to read as follows:
    ``(b) Workforce Investment Fund.--
            ``(1) Reservation for outlying areas.--
                    ``(A) In general.--From the amount made available 
                under subsection (a)(3) for a fiscal year, the 
                Secretary shall reserve not more than \1/4\ of 1 
                percent to provide assistance to the outlying areas.
                    ``(B) Restriction.--The Republic of Palau shall 
                cease to be eligible to receive funding under this 
                subparagraph upon entering into an agreement for 
                extension of United States educational assistance under 
                the Compact of Free Association (approved by the 
                Compact of Free Association Amendments Act of 2003 
                (Public Law 99-658)) after the date of enactment of the 
                Workforce Investment Improvement Act of 2012.
            ``(2) States.--
                    ``(A) In general.--After determining the amount to 
                be reserved under subparagraph (A), the Secretary shall 
                allot the remainder of the amount referred to in 
                subsection (a)(3) for a fiscal year to the States 
                pursuant to subparagraph (B) for employment and 
                training activities and statewide workforce investment 
                activities.
                    ``(B) Formula.--Subject to subparagraphs (C) and 
                (D), of the remainder--
                            ``(i) 25 percent shall be allotted on the 
                        basis of the relative number of unemployed 
                        individuals in areas of substantial 
                        unemployment in each State, compared to the 
                        total number of unemployed individuals in areas 
                        of substantial unemployment in all States;
                            ``(ii) 25 percent shall be allotted on the 
                        basis of the relative number of individuals in 
                        the civilian labor force in each State, 
                        compared to the total number of such 
                        individuals in all States;
                            ``(iii) 25 percent shall be allotted on the 
                        basis of the relative number of individuals in 
                        each State who have been unemployed for 15 
                        weeks or more, compared to the total number of 
                        individuals in all States who have been 
                        unemployed for 15 weeks or more; and
                            ``(iv) 25 percent shall be allotted on the 
                        basis of the relative number of disadvantaged 
                        youth in each State, compared to the total 
                        number of disadvantaged youth in all States.
                    ``(C) Minimum and maximum percentages.--
                            ``(i) Minimum percentage.--The Secretary 
                        shall ensure that no State shall receive an 
                        allotment under this paragraph for a fiscal 
                        year that is less than 90 percent of the 
                        allotment percentage of the State for the 
                        preceding fiscal year.
                            ``(ii) Maximum percentage.--Subject to 
                        clause (i), the Secretary shall ensure that no 
                        State shall receive an allotment under this 
                        subparagraph for a fiscal year that is more 
                        than 130 percent of the allotment percentage of 
                        the State for the preceding fiscal year.
                    ``(D) Small state minimum allotment.--Subject to 
                subparagraph (C), the Secretary shall ensure that no 
                State shall receive an allotment under this 
                subparagraph for a fiscal year that is less than \2/10\ 
                of 1 percent of the remainder described in subparagraph 
                (A) for the fiscal year.
                    ``(E) Definitions.--For the purpose of the formula 
                specified in this subparagraph:
                            ``(i) Allocation percentage.--The term 
                        `allocation percentage'--
                                    ``(I) used with respect to fiscal 
                                year 2012, means the percentage of the 
                                amounts allocated to local areas under 
                                title I of this Act, title V of the 
                                Older Americans Act of 1965, and 
                                sections 1 through 13 of the Wagner-
                                Peyser Act of 1933, as such provisions 
                                were in effect on the day before the 
                                date of enactment of the Workforce 
                                Investment Improvement Act of 2012, 
                                that is received under such provisions 
                                by the local area involved for fiscal 
                                year 2012; and
                                    ``(II) used with respect to fiscal 
                                year 2013 or a subsequent year, means 
                                the percentage of the funds described 
                                in subclause (I) that is received 
                                through an allocation made under this 
                                clause for the fiscal year.
                            ``(ii) Disadvantaged youth.--The term 
                        `disadvantaged youth' means an individual who 
                        is not less than age 16 and not more than age 
                        24 who receives an income, or is a member of a 
                        family that received a total family income, 
                        that in relation to family size, does not 
                        exceed the higher of--
                                    ``(I) the poverty line; or
                                    ``(II) 70 percent of the lower 
                                living standard income level.
                            ``(iii) Individual.--The term `individual' 
                        means an individual who is not less than age 16 
                        and not more than age 72.''.

SEC. 112. WITHIN STATE ALLOCATIONS.

    Section 133 is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Reservations for Statewide Employment and Training 
Activities.--
            ``(1) In general.--The Governor of a State shall reserve up 
        to 5 percent of the total amount allotted to the State under 
        section 132(b)(2) for a fiscal year to carry out the statewide 
        activities described in paragraphs (2) and (3) of section 
        134(a).
            ``(2) Statewide rapid response activities.--Of the amount 
        reserved under paragraph (1) for a fiscal year, the Governor of 
        the State shall reserve not more than 10 percent for statewide 
        rapid response activities described in section 134(a)(4).
            ``(3) Statewide youth challenge grants.--The Governor of a 
        State shall reserve up to 18 percent of the total amount 
        allotted to the State under section 132(b)(2) for a fiscal year 
        to carry out statewide activities described in section 
        134(a)(5).
            ``(4) Statewide adults with barriers to employment 
        grants.--The Governor of a State shall reserve 2 percent of the 
        total amount allotted to the State under section 132(b)(2) for 
        a fiscal year to carry out statewide activities described in 
        section 134(a)(6).'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Within State Allocation.--
            ``(1) Statewide employment and training activities.--The 
        Governor, acting in accordance with the State plan, and after 
        consulting with chief elected officials in the local areas, 
        shall--
                    ``(A) allocate the funds that are allotted to the 
                State for employment and training activities and not 
                reserved under subsection (a), in accordance with 
                paragraph (2)(A);
                    ``(B) award the funds that are reserved by the 
                State under subsection (a)(3) through competitive 
                grants to eligible entities, in accordance with section 
                134(a)(1)(C); and
                    ``(C) award the funds that are reserved by the 
                State under subsection (a)(4) through competitive 
                grants to eligible entities, in accordance with section 
                134(a)(1)(D).
            ``(2) Formula allocations for the workforce investment 
        fund.--
                    ``(A) Allocation.--In allocating the funds 
                described in paragraph (1)(A) to local areas, a State 
                shall allocate--
                            ``(i) 25 percent on the basis described in 
                        section 132(b)(2)(B)(i);
                            ``(ii) 25 percent on the basis described in 
                        section 132(b)(2)(B)(ii);
                            ``(iii) 25 percent on the basis described 
                        in section 132(b)(B)(iii); and
                            ``(iv) 25 percent on the basis described in 
                        section 132(b)(2)(B)(iv).
                    ``(B) Minimum and maximum percentages.--
                            ``(i) Minimum percentage.--The State shall 
                        ensure that no local area shall receive an 
                        allotment under this paragraph for a fiscal 
                        year that is less than 90 percent of the 
                        allocation percentage of the local area for the 
                        preceding fiscal year.
                            ``(ii) Maximum percentage.--Subject to 
                        clause (i), the State shall ensure that no 
                        local area shall receive an allocation for a 
                        fiscal year under this subparagraph for a 
                        fiscal year that is more than 130 percent of 
                        the allocation percentage of the local area for 
                        the preceding fiscal year.
                    ``(C) Definitions.--For the purpose of the formula 
                specified in this paragraph, the term `allocation 
                percentage'--
                            ``(i) used with respect to fiscal year 
                        2012, means the percentage of the amounts 
                        allocated to local areas under title I of this 
                        Act, title V of the Older Americans Act of 
                        1965, and sections 1 through 13 of the Wagner-
                        Peyser Act of 1933, as such provisions were in 
                        effect on the day before the date of enactment 
                        of the Workforce Investment Improvement Act of 
                        2012, that is received under such provisions by 
                        the local area involved for fiscal year 2012; 
                        and
                            ``(ii) used with respect to fiscal year 
                        2013 or a subsequent year, means the percentage 
                        of the funds described in clause (i) that is 
                        received through an allocation made under this 
                        clause for the fiscal year.'';
            (3) in subsection (c)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--The Governor, may in accordance with 
        this subsection, reallocate to eligible local areas within the 
        State amounts that are allocated under subsection (b) for 
        employment and training activities and that are available for 
        reallocation.'';
                    (B) in paragraph (2), by striking ``paragraph 
                (2)(A) or (3) of subsection (b) for such activities'' 
                and inserting ``subsection (b) for such activities'';
                    (C) by amending paragraph (3) to read as follows:
            ``(3) Reallocations.--In making reallocations to eligible 
        local areas of amounts available pursuant to paragraph (2) for 
        a program year, the Governor shall allocate to each eligible 
        local area within the State an amount based on the relative 
        amount allocated to such local area under subsection (b)(2) for 
        such activities for such prior program year, as compared to the 
        total amount allocated to all eligible local areas in the State 
        under subsection (b)(2) for such activities for such prior 
        program year.''; and
                    (D) in paragraph (4), by striking ``paragraph 
                (2)(A) or (3) of''; and
            (4) by adding at the end the following new subsection:
    ``(d) Local Administrative Cost Limit.--Of the amounts allocated to 
a local area under this section for a fiscal year, not more than 10 
percent of the amount may be used by the local board involved for the 
administrative costs of carrying out local workforce investment 
activities in the local area under this chapter.''.

SEC. 113. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.

    Section 134 is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Statewide Employment and Training Activities.--
            ``(1) In general.--
                    ``(A) Distribution of statewide activities.--Funds 
                reserved by a Governor for a State as described in 
                section 133(a)(1)--
                            ``(i) shall be used to carry out the 
                        statewide employment and training activities 
                        described in paragraph (2); and
                            ``(ii) may be used to carry out any of the 
                        statewide employment and training activities 
                        described in paragraph (3).
                    ``(B) Statewide rapid response activities.--Funds 
                reserved by a Governor for a State as described in 
                section 133(a)(2) shall be used to carry out the 
                statewide rapid response activities described in 
                paragraph (4).
                    ``(C) Statewide youth challenge grants.--Funds 
                reserved by a Governor for a State as described in 
                section 133(a)(3) shall be used to carry out the 
                Statewide Youth Challenge Grant competition described 
                in paragraph (5).
                    ``(D) Statewide adults with barriers to employment 
                grants.--Funds reserved by a Governor for a State as 
                described in section 133(a)(4) shall be used to carry 
                out the Statewide Adults with Barriers to Employment 
                Grant competition described in paragraph (6).
            ``(2) Required statewide employment and training 
        activities.--A State shall use funds reserved as described in 
        section 133(a)(1) to carry out statewide employment and 
        training activities, which shall include--
                    ``(A) supporting the provision of work ready 
                services described in subsection (c)(2) in the one-stop 
                delivery system;
                    ``(B) implementing innovative programs and 
                strategies designed to meet the needs of all businesses 
                in the State, including small businesses, which may 
                include incumbent worker training programs, sectoral 
                and industry cluster strategies and partnerships, 
                including regional skills alliances, sectoral skills 
                partnerships (in which representatives of multiple 
                employers for a specific industry sector or group of 
                related occupations, economic development agencies, 
                providers of training services described in subsection 
                (c)(4), labor federations, and other entities that can 
                provide needed supportive services tailored to the 
                needs of workers in that sector or group, for a local 
                area or region, identify gaps between the current and 
                expected demand and supply of labor and skills in that 
                sector or group for that area or region and develop a 
                strategic skills gap action plan), career ladder 
                programs, micro-enterprise and entrepreneurial training 
                and support programs, utilization of effective business 
                intermediaries, activities to improve linkages between 
                the one-stop delivery system in the State and all 
                employers (including small employers) in the State, and 
                other business services and strategies that better 
                engage employers in workforce investment activities and 
                make the workforce investment system more relevant to 
                the needs of State and local businesses, consistent 
                with the objectives of this title; and
                    ``(C) conducting evaluations under section 136(e) 
                of activities authorized under this chapter in 
                coordination with evaluations carried out by the 
                Secretary under section 172.
            ``(3) Allowable statewide employment and training 
        activities.--A State may use funds reserved as described in 
        section 133(a)(1) to carry out statewide employment and 
        training activities which may include--
                    ``(A) providing incentive grants to local areas for 
                regional cooperation among local boards (including 
                local boards in a designated region as described in 
                section 116(c)), for local coordination of activities 
                carried out under this Act, and for exemplary 
                performance by local areas on the local performance 
                measures;
                    ``(B) providing technical assistance and capacity 
                building to local areas, one-stop operators, one-stop 
                partners, and eligible providers, including the 
                development and training of staff, the development of 
                exemplary program activities, and the provision of 
                technical assistance to local areas that fail to meet 
                local performance measures;
                    ``(C) operating a fiscal and management 
                accountability system under section 136(f);
                    ``(D) carrying out monitoring and oversight of 
                activities carried out under this chapter;
                    ``(E) developing strategies for effectively 
                integrating programs and services among one-stop 
                partners; and
                    ``(F) carrying out activities to facilitate remote 
                access to services provided through a one-stop delivery 
                system, including facilitating access through the use 
                of technology.
            ``(4) Statewide rapid response activities.--A State shall 
        use funds reserved as described in section 133(a)(2) to carry 
        out statewide rapid response activities, which shall include--
                    ``(A) provision of rapid response activities, 
                carried out in local areas by the State or by an entity 
                designated by the State, working in conjunction with 
                the local boards and the chief elected officials in the 
                local areas; and
                    ``(B) provision of additional assistance to local 
                areas that experience disasters, mass layoffs or plant 
                closings, or other events that precipitate substantial 
                increases in the number of unemployed individuals, 
                carried out in local areas by the State or by an entity 
                designated by the State, working in conjunction with 
                the local boards and the chief elected officials in the 
                local areas.
            ``(5) Statewide youth challenge grants.--
                    ``(A) In general.--Of the funds reserved as 
                described in section 133(a)(3), the Governor of a 
                State--
                            ``(i) may reserve up to 5 percent to 
                        provide technical assistance to, and conduct 
                        evaluations as described in section 136(e) of 
                        the programs and activities carried out under 
                        this paragraph; and
                            ``(ii) using the remainder, shall award 
                        grants, on a competitive basis, to eligible 
                        entities to carry out programs and activities 
                        authorized under this paragraph to assist 
                        eligible youth in acquiring the education and 
                        skills, credentials, and employment experience 
                        necessary to succeed in the labor market.
                    ``(B) Eligible entity defined.--For purposes of 
                this paragraph, the term `eligible entity' means--
                            ``(i) a local board or a consortium of 
                        local boards;
                            ``(ii) a nonprofit entity, for-profit 
                        entity, or a consortium of nonprofit or for-
                        profit entities with a demonstrated record of--
                                    ``(I) placing youth into year-round 
                                employment;
                                    ``(II) successfully implementing 
                                dropout recovery activities, or
                                    ``(III) successfully implementing 
                                intensive and fully supervised programs 
                                of education, career training, and work 
                                experience; or
                            ``(iii) a consortium of the entities 
                        described in clauses (i) and (ii).
                    ``(C) Grant period.--
                            ``(i) In general.--A grant under this 
                        paragraph shall be awarded for a period of 1 
                        year.
                            ``(ii) Grant renewal.--A Governor of a 
                        State may renew, for up to 4 additional 1-year 
                        periods, a grant awarded under this paragraph.
                    ``(D) Authority to require match.--A Governor of a 
                State may require that eligible entities receiving 
                grants under this paragraph provide a non-Federal share 
                of the cost of activities carried out under this 
                paragraph.
                    ``(E) Eligible youth.--To be eligible to 
                participate in activities under this paragraph, an 
                individual shall be a youth between the ages 16 and 24 
                as of the time the eligibility determination is made by 
                the Governor of the State who is--
                            ``(i) a secondary school dropout;
                            ``(ii) a member of a low-income family;
                            ``(iii) a youth in foster care (including 
                        youth aging out of foster care);
                            ``(iv) a youth offender;
                            ``(v) a youth who is an individual with a 
                        disability;
                            ``(vi) a child of incarcerated parents; or
                            ``(vii) a migrant youth.
                    ``(F) Use of funds.--An eligible entity receiving a 
                grant under this paragraph shall use such funds for 
                activities that are designed to assist eligible youth 
                in acquiring the education and skills, credentials, and 
                employment experience that are necessary to succeed in 
                the labor market by carrying out at least one of the 
                following:
                            ``(i) Training and internships for out-of-
                        school youth in in-demand industries or 
                        occupations important to the State and local 
                        economy.
                            ``(ii) Dropout recovery activities that are 
                        designed to lead to the attainment of a 
                        secondary school diploma, General Education 
                        Development (GED) credential, or other State-
                        recognized equivalent (including recognized 
                        alternative standards for individuals with 
                        disabilities).
                            ``(iii) Activities designed to assist 
                        special youth populations, such as court-
                        involved youth, homeless youth, foster-
                        children, young parents, and youth with 
                        disabilities.
                            ``(iv) Activities combining remediation of 
                        academic skills, work readiness training, and 
                        work experience, and including linkages to 
                        postsecondary education and training, 
                        apprenticeships, and career-ladder employment.
                            ``(v) Operating a residential center, such 
                        as a Job Corps Center described in subparagraph 
                        (I) if the requirements described in clause 
                        (iii) of such subparagraph are met, that shall 
                        be operated so as to provide enrollees, in a 
                        well-supervised setting, with access to 
                        activities described in this subparagraph.
                            ``(vi) Other evidence-based strategies or 
                        activities designed to improve the education 
                        and employment outcomes for youth.
                    ``(G) Applications.--To be eligible to receive a 
                grant under this paragraph, an eligible entity shall 
                submit an application to a State at such time, in such 
                manner, and containing such information as the State 
                may require, including--
                            ``(i) a description of how the strategies 
                        and activities will be aligned with the State 
                        plan submitted under section 112 and the local 
                        plans submitted under section 118 with respect 
                        to the areas of the State that will be the 
                        focus of grant activities under this paragraph;
                            ``(ii) a description of the educational and 
                        skills training programs and activities the 
                        eligible entity will provide to eligible youth 
                        under this paragraph;
                            ``(iii) how the eligible entity will 
                        collaborate with State and local workforce 
                        investment systems established under this title 
                        in the provision of such programs and 
                        activities;
                            ``(iv) a description of the programs of 
                        demonstrated effectiveness on which the 
                        provision of such educational and skills 
                        training programs and activities are based, and 
                        a description of how such programs and 
                        activities will improve the education and 
                        skills training for eligible youth;
                            ``(v) a description of youth populations to 
                        be served and the skill needs of those 
                        populations, and the manner in which eligible 
                        youth will be recruited and selected as 
                        participants;
                            ``(vi) a description of the private and 
                        public, and local and State resources that will 
                        be leveraged, in addition to the grant funds 
                        provided under this paragraph, to provide the 
                        programs and activities under this paragraph, 
                        and how the entity will ensure the 
                        sustainability of such programs and activities 
                        after grant funds are no longer available;
                            ``(vii) a description of the extent of the 
                        involvement of employers in such programs and 
                        activities;
                            ``(viii) a description of the levels of 
                        performance the eligible entity expects to 
                        achieve with respect to the indicators of 
                        performance for youth specified in section 
                        136(b)(2)(A)(ii); and
                            ``(ix) a detailed budget and a description 
                        of the system of fiscal controls, and auditing 
                        and accountability procedures that will be used 
                        to ensure fiscal soundness for the programs and 
                        activities provided under this paragraph.
                    ``(H) Factors for award.--
                            ``(i) In general.--In awarding grants under 
                        this paragraph, a State shall consider--
                                    ``(I) the quality of the proposed 
                                programs and activities;
                                    ``(II) the goals to be achieved;
                                    ``(III) the likelihood of 
                                successful implementation;
                                    ``(IV) the extent to which the 
                                proposed programs and activities--
                                            ``(aa) are based on proven 
                                        strategies or demonstrated 
                                        results; or
                                            ``(bb) will expand the 
                                        education and skills training 
                                        for eligible youth;
                                    ``(V) the extent of collaboration 
                                with the State and local workforce 
                                investment systems in carrying out the 
                                proposed programs and activities;
                                    ``(VI) the extent of employer 
                                involvement in the proposed programs 
                                and activities;
                                    ``(VII) whether there are other 
                                Federal and non-Federal funds available 
                                for similar activities to the proposed 
                                programs and activities, and the 
                                additional State, local, and private 
                                resources that will be provided to 
                                carry out the proposed programs and 
                                activities;
                                    ``(VIII) the quality of the 
                                proposed programs and activities in 
                                meeting the needs of the eligible youth 
                                to be served; and
                                    ``(IX) the extent to which the 
                                proposed programs and activities will 
                                expand on the work ready and training 
                                services provided to individuals 
                                between 16 and 24 years of age provided 
                                under section 134.
                            ``(ii) Equitable geographic distribution.--
                        In awarding grants under this paragraph the 
                        State shall ensure an equitable distribution of 
                        such grants across geographically diverse 
                        areas.
                    ``(I) Use of funds for job corps centers.--
                            ``(i) In general.--If the requirements 
                        described in clause (iii) are met, an eligible 
                        entity may use a grant received under this 
                        paragraph to operate a Job Corps Center that 
                        was established under subtitle C, as in effect 
                        on the day before the enactment of the 
                        Workforce Investment Improvement Act of 2012, 
                        and that is in existence on the day before the 
                        enactment of such Act to--
                                    ``(I) provide work-based learning 
                                throughout the enrollment of the 
                                enrollees of such Center; and
                                    ``(II) assist the enrollees in 
                                obtaining meaningful unsubsidized 
                                employment, participating in secondary 
                                or postsecondary education programs, 
                                enrolling in other suitable career 
                                training programs, or satisfying Armed 
                                Forces requirements, on completion of 
                                their enrollment.
                            ``(ii) Limitation.--An eligible entity may 
                        use not more than 10 percent of the grant funds 
                        received under this paragraph for construction 
                        and facilities improvement of a Job Corps 
                        Center.
                            ``(iii) Requirements.--In order for an 
                        eligible entity to operate a Job Corps Center 
                        under clause (i), the following requirements 
                        shall be met:
                                    ``(I) The State has submitted to 
                                the Secretary, a written request for 
                                the appropriate title and deed for such 
                                Job Corps Center, and has been granted 
                                such title and deed under clause 
                                (iv)(I).
                                    ``(II) The State agency, or 
                                appropriate agency responsible for 
                                inspecting public buildings and 
                                safeguarding the health of 
                                disadvantaged students, has conducted 
                                an in-person review of the physical 
                                condition and health-related activities 
                                of the Job Corps Center. Such review 
                                shall include a passing rate of 
                                occupancy under State and local 
                                ordinances.
                                    ``(III) The State has demonstrated, 
                                as part of the State plan in section 
                                112, that it has developed and will 
                                enforce professional standards of 
                                conduct.
                            ``(iv) Secretarial actions.--
                                    ``(I) In general.--Upon receiving a 
                                written request from a State under 
                                clause (iii)(I), the Secretary, in 
                                coordination with the Administrator of 
                                the General Services Administration, 
                                shall transfer the title and deed for 
                                the appropriate Job Corps Center to the 
                                State within 30 days. The Secretary 
                                shall be prohibited from imposing any 
                                requirement on a State in exchange for 
                                such title and deed.
                                    ``(II) Transition.--After 365 
                                calendar days after the date of 
                                enactment of the Workforce Investment 
                                Improvement Act of 2012, the Secretary 
                                shall transfer all Job Corps Centers 
                                with respect to which the Secretary has 
                                not received a written request under 
                                clause (iii)(I) to the Administrator of 
                                the General Services Administration for 
                                disposal of excess Federal real 
                                property.
            ``(6) Statewide grants for adults with barriers to 
        employment.--
                    ``(A) In general.--Of the funds reserved as 
                described in section 133(a)(4), the Governor of a 
                State--
                            ``(i) may reserve up to 5 percent to 
                        provide technical assistance to, and conduct 
                        evaluations as described in section 136(e), of 
                        the programs and activities carried out under 
                        this paragraph; and
                            ``(ii) using the remainder, shall award 
                        grants on a competitive basis to eligible 
                        entities described in subparagraph (B) to carry 
                        out employment and training programs authorized 
                        under this paragraph for individuals with 
                        barriers to employment that meet specific 
                        performance outcomes and criteria established 
                        by the Governor under subparagraph (G).
                    ``(B) Eligible entity defined.--For purposes of 
                this paragraph, the term `eligible entity' means an 
                entity that--
                            ``(i) is a--
                                    ``(I) local board or a consortium 
                                of local boards;
                                    ``(II) nonprofit entity, for profit 
                                entity, or a consortium of nonprofit or 
                                for-profit entities; or
                                    ``(III) consortium of the entities 
                                described in subclauses (I) and (II);
                            ``(ii) has a demonstrated record of placing 
                        individuals into unsubsidized employment and 
                        serving hard to serve individuals; and
                            ``(iii) agrees to be reimbursed primarily 
                        on the basis of achievement of specified 
                        performance outcomes and criteria established 
                        under subparagraph (F).
                    ``(C) Grant period.--
                            ``(i) In general.--A grant under this 
                        paragraph shall be awarded for a period of 1 
                        year.
                            ``(ii) Grant renewal.--A Governor of a 
                        State may renew, for up to 4 additional 1-year 
                        periods, a grant awarded under this paragraph.
                    ``(D) Eligible participants.--To be eligible to 
                participate in activities under this paragraph, an 
                individual shall be a low-income adult or a member of a 
                low-income family.
                    ``(E) Use of funds.--An eligible entity receiving a 
                grant under this paragraph shall use such funds for 
                activities that are designed to assist eligible 
                participants in obtaining employment and acquiring the 
                education and skills necessary to succeed in the labor 
                market.
                    ``(F) Applications.--To be eligible to receive a 
                grant under this paragraph, an eligible entity shall 
                submit an application to a State at such time, in such 
                manner, and containing such information as the State 
                may require, including--
                            ``(i) a description of how the strategies 
                        and activities will be aligned with the State 
                        plan submitted under section 112 and the local 
                        plans submitted under section 118 with respect 
                        to the areas of the State that will be the 
                        focus of grant activities under this paragraph;
                            ``(ii) a description of the educational and 
                        skills training programs and activities the 
                        eligible entities will provide to eligible 
                        participants under this paragraph;
                            ``(iii) how the eligible entity will 
                        collaborate with State and local workforce 
                        investment systems established under this title 
                        in the provision of such programs and 
                        activities;
                            ``(iv) a description of the programs of 
                        demonstrated effectiveness on which the 
                        provision of such educational and skills 
                        training programs and activities are based, and 
                        a description of how such programs and 
                        activities will improve the education and 
                        skills training for eligible participants;
                            ``(v) a description of the populations to 
                        be served and the skill needs of those 
                        populations, and the manner in which eligible 
                        participants will be recruited and selected as 
                        participants;
                            ``(vi) a description of the private and 
                        public, and local and State resources that will 
                        be leveraged, in addition to the grant funds 
                        provided under this paragraph to provide the 
                        programs and activities under this paragraph, 
                        and how the entity will ensure the 
                        sustainability of such programs and activities 
                        after grant funds are no longer available;
                            ``(vii) a description of the extent of the 
                        involvement of employers in such programs and 
                        activities;
                            ``(viii) a description of the levels of 
                        performance the eligible entity expects to 
                        achieve with respect to the indicators of 
                        performance for all individuals specified in 
                        section in 136(b)(2);
                            ``(ix) a detailed budget and a description 
                        of the system of fiscal controls, and auditing 
                        and accountability procedures that will be used 
                        to ensure fiscal soundness for the programs and 
                        activities provided under this paragraph;
                            ``(x) a description of the estimated 
                        savings that would result from the improved 
                        outcomes, including to other programs or units 
                        of government; and
                            ``(xi) any other criteria the Governor may 
                        require.
                    ``(G) Performance outcomes and criteria.--Not later 
                than 6 months after the date of the enactment of the 
                Workforce Investment Improvement Act of 2012, the 
                Governor of the State shall establish and publish 
                specific performance measures for the initial 
                qualification of eligible entities to receive a grant 
                under this section. At a minimum, to receive an award 
                an eligible entity shall--
                            ``(i) identify a particular program area 
                        and client population that is not achieving 
                        optimal outcomes;
                            ``(ii) provide evidence that the proposed 
                        strategy would achieve better results;
                            ``(iii) clearly articulate and quantify the 
                        improved outcomes of such new approach;
                            ``(iv) identify data that would be required 
                        to evaluate whether outcomes are being achieved 
                        for a target population and a comparison group;
                            ``(v) identify estimated savings that would 
                        result from the improved outcomes, including to 
                        other programs or units of government;
                            ``(vi) demonstrate the capacity to collect 
                        required data, track outcomes, and validate 
                        those outcomes; and
                            ``(vii) any other criteria the Governor may 
                        require.
            ``(7) Limitation.--Not more than 5 percent of the funds 
        allotted under section 132(b) to a State and reserved as 
        described in section 133(a)(1) may be used by the State for 
        administrative activities carried out under this subsection.'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Local Employment and Training Activities.--
            ``(1) In general.--Funds allocated to a local area under 
        section 133(b)(2)--
                    ``(A) shall be used to carry out employment and 
                training activities described in section (c); and
                    ``(B) may be used to carry out employment and 
                training activities described in section (e).''.
            (3) by striking subsection (c);
            (4) by redesignating subsections (d) and (e), as 
        subsections (c) and (d), respectively;
            (5) in subsection (c) (as so redesignated)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--Funds allocated to a local area under 
        section 133(b)(2) shall be used--
                    ``(A) to establish a one-stop delivery system as 
                described in section 121(e);
                    ``(B) to provide the work ready services described 
                in paragraph (2) through the one-stop delivery system 
                in accordance with such paragraph; and
                    ``(C) to provide training services described in 
                paragraph (4) in accordance with such paragraph;'';
                    (B) in paragraph (2)--
                            (i) in the heading, by striking ``Core 
                        services'' and inserting ``Work ready 
                        services'';
                            (ii) by striking ``core services'' and 
                        inserting ``work ready services'';
                            (iii) by striking ``who are adults or 
                        dislocated workers'';
                            (iv) in subparagraph (A), by inserting 
                        ``and assistance in obtaining eligibility 
                        determinations under the other one-stop partner 
                        programs through such activities as assisting 
                        in the submission of applications, the 
                        provision of information on the results of such 
                        applications, the provision of intake services 
                        and information, and, where appropriate and 
                        consistent with the authorizing statute of the 
                        one-stop partner program, determinations of 
                        eligibility'' after ``subtitle'';
                            (v) by amending subparagraph (D) to read as 
                        follows:
                    ``(D) labor exchange services, including--
                            ``(i) job search and placement assistance, 
                        and where appropriate, career counseling;
                            ``(ii) appropriate recruitment services for 
                        employers, including small employers, in the 
                        local area, which may include services 
                        described in this subsection, including 
                        information and referral to specialized 
                        business services not traditionally offered 
                        through the one-stop delivery system; and
                            ``(iii) reemployment services provided to 
                        unemployment claimants, including claimants 
                        identified as in need of such services under 
                        the worker profiling system established under 
                        section 303(j) of the Social Security Act (42 
                        U.S.C. 503(j));'';
                            (vi) in subparagraph (E), by striking 
                        ``employment statistics'' and inserting 
                        ``workforce and labor market'';
                            (vii) in subparagraph (F), by striking 
                        ``and eligible providers of youth activities 
                        described in section 123,'';
                            (viii) in subparagraph (I), by inserting 
                        ``and the administration of the work test for 
                        the unemployment compensation system'' after 
                        ``compensation'';
                            (ix) by amending subparagraph (J) to read 
                        as follows:
                    ``(J) assistance in establishing eligibility for 
                programs of financial aid assistance for training and 
                education programs that are not funded under this Act 
                and are available in the local area; and''; and
                            (x) by redesignating subparagraph (K) as 
                        subparagraph (U); and
                            (xi) by inserting the following new 
                        subparagraphs after subparagraph (J):
                    ``(K) the provision of information from official 
                publications of the Internal Revenue Service regarding 
                Federal tax credits available to individuals relating 
                to education, job training and employment;
                    ``(L) comprehensive and specialized assessments of 
                the skill levels and service needs of workers, which 
                may include--
                            ``(i) diagnostic testing and use of other 
                        assessment tools; and
                            ``(ii) in-depth interviewing and evaluation 
                        to identify employment barriers and appropriate 
                        employment goals;
                    ``(M) development of an individual employment plan, 
                to identify the employment goals, appropriate 
                achievement objectives, and appropriate combination of 
                services for the participation to achieve the 
                employment goals;
                    ``(N) group counseling;
                    ``(O) individual counseling and career planning;
                    ``(P) case management;
                    ``(Q) short-term pre-career services, including 
                development of learning skills, communications skills, 
                interviewing skills, punctuality, personal maintenance 
                skills, and professional conduct, to prepare 
                individuals for unsubsidized employment or training;
                    ``(R) internships and work experience;
                    ``(S) literacy activities relating to basic work 
                readiness, information and communication technology 
                literacy activities, and financial literacy activities, 
                if such activities are not available to participants in 
                the local area under programs administered under the 
                Adult Education and Family Literacy Act (20 U.S.C. 2901 
                et seq.); and
                    ``(T) out-of-area job search assistance and 
                relocation assistance.''; and
                    (C) by amending paragraph (3) to read as follows:
            ``(3) Delivery of services.--The work ready services 
        described in section 132(c)(2) shall be provided through the 
        one-stop delivery system and may be provided through contracts 
        with public, private for-profit, and private nonprofit service 
        providers, approved by the local board.'';
                    (D) in paragraph (4)--
                            (i) by amending subparagraph (A) to read as 
                        follows:
                    ``(A) In general.--Funds allocated to a local area 
                under section 133(b) shall be used to provide training 
                services to individuals who--
                            ``(i) after an interview, evaluation, or 
                        assessment, and case management, have been 
                        determined by a one-stop operator or one-stop 
                        partner, as appropriate, to--
                                    ``(I) be in need of training 
                                services to obtain or retain 
                                employment; and
                                    ``(II) have the skills and 
                                qualifications to successfully 
                                participate in the selected program of 
                                training services;
                            ``(ii) select programs of training services 
                        that are directly linked to the employment 
                        opportunities in the local area involved or in 
                        another area in which the individual receiving 
                        such services are willing to commute or 
                        relocate; and
                            ``(iii) who meet the requirements of 
                        subparagraph (B);''; and
                            (ii) in subparagraph (B)(i), by striking 
                        ``Except'' and inserting ``Notwithstanding 
                        section 479B of the Higher Education Act of 
                        1965 (20 U.S.C. 1087uu) and except'';
                            (iii) by amending subparagraph (D) to read 
                        as follows:
                    ``(D) Training services.--Training services 
                authorized under this paragraph may include--
                            ``(i) occupational skills training;
                            ``(ii) on-the-job training;
                            ``(iii) skill upgrading and retraining;
                            ``(iv) entrepreneurial training;
                            ``(v) education activities leading to a 
                        regular secondary school diploma or its 
                        recognized equivalent in combination with, 
                        concurrently or subsequently, occupational 
                        skills training;
                            ``(vi) adult education and literacy 
                        activities provided in conjunction with other 
                        training authorized under this subparagraph;
                            ``(vii) workplace training combined with 
                        related instruction; and
                            ``(viii) occupational skills training that 
                        incorporates English language acquisition.'';
                            (iv) by striking subparagraph (E) and 
                        redesignating subparagraphs (F) and (G) as 
                        subparagraphs (E) and (F), respectively; and
                            (v) in subparagraph (E) (as so 
                        redesignated)--
                                    (I) in clause (ii)--
                                            (aa) in the matter 
                                        preceding clause (I), by 
                                        striking ``subsection (c)'' and 
                                        inserting ``section 121''; and
                                            (bb) in clause (II), by 
                                        striking ``subsections (e) and 
                                        (h)'' and inserting 
                                        ``subsection (i)''; and
                                    (II) by striking clause (iii) and 
                                inserting the following:
                            ``(iii) Career enhancement accounts.--An 
                        individual who seeks training services and who 
                        is eligible pursuant to subparagraph (A), may, 
                        in consultation with a case manager, select an 
                        eligible provider of training services from the 
                        list or identifying information for providers 
                        described in clause (ii)(I). Upon such 
                        selection, the one-stop operator involved 
                        shall, to the extent practicable, refer such 
                        individual to the eligible provider of training 
                        services, and arrange for payment for such 
                        services through a career enhancement account.
                            ``(iv) Coordination.--Each local board may, 
                        through one-stop centers, coordinate career 
                        enhancement accounts with other Federal, State, 
                        local, or private job training programs or 
                        sources to assist the individual in obtaining 
                        training services.
                            ``(v) Enhanced career enhancement 
                        accounts.--Each local board may, through one-
                        stop centers, assist individuals receiving 
                        career enhancement accounts through the 
                        establishment of such accounts that include, in 
                        addition to the funds provided under this 
                        paragraph, funds from other programs and 
                        sources that will assist the individual in 
                        obtaining training services.''; and
                            (vi) in subparagraph (G)--
                                    (I) in the subparagraph heading, by 
                                striking ``Individual training 
                                accounts'' and inserting ``Career 
                                enhancement accounts'';
                                    (II) in clause (i) by striking 
                                ``individual training accounts'' and 
                                inserting ``career enhancement 
                                accounts'';
                                    (III) in clause (ii)--
                                            (aa) by striking ``an 
                                        individual training account'' 
                                        and inserting ``a career 
                                        enhancement account'';
                                            (bb) in subclause (II), by 
                                        striking ``individual training 
                                        accounts'' and inserting 
                                        ``career enhancement 
                                        accounts'';
                                            (cc) in subclause (II) by 
                                        striking ``or'' after the 
                                        semicolon;
                                            (dd) in subclause (III) by 
                                        striking the period and 
                                        inserting ``; or''; and
                                            (ee) by adding at the end 
                                        of the following:
                                    ``(IV) the local board determines 
                                that it would be most appropriate to 
                                award a contract to an institution of 
                                higher education in order to facilitate 
                                the training of multiple individuals in 
                                in-demand sectors or occupations, if 
                                such contract does not limit customer 
                                choice.'';
                                    (IV) in clause (iii), by striking 
                                ``adult or dislocated worker'' and 
                                inserting ``individual''; and
                                    (V) in clause (iv)--
                                            (aa) by redesignating 
                                        subclause (IV) as subclause (V) 
                                        and inserting after subclause 
                                        (III) the following:
                                    ``(IV) Individuals with 
                                disabilities.'';
            (6) in subsection (d) (as so redesignated)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Discretionary one-stop delivery activities.--
                    ``(A) In general.--Funds allocated to a local area 
                under section 133(b) may be used to provide, through 
                the one-stop delivery system--
                            ``(i) customized screening and referral of 
                        qualified participants in training services to 
                        employers;
                            ``(ii) customized employment-related 
                        services to employers on a fee-for-service 
                        basis;
                            ``(iii) customer support to navigate among 
                        multiple services and activities for special 
                        participant populations that face multiple 
                        barriers to employment, including individuals 
                        with disabilities;
                            ``(iv) employment and training assistance 
                        provided in coordination with child support 
                        enforcement activities of the State agency 
                        carrying out subtitle D of title IV of the 
                        Social Security Act (42 U.S.C. 651 et seq.);
                            ``(v) activities to facilitate remote 
                        access to services provided through a one-stop 
                        delivery system, including facilitating access 
                        through the use of technology; and
                            ``(vi) activities to carry out business 
                        services and strategies that meet the workforce 
                        investment needs of local area businesses, as 
                        determined by the local board, consistent with 
                        the local plan under section 118, which 
                        services--
                                    ``(I) may be provided through 
                                effective business intermediaries 
                                working in conjunction with the local 
                                board, and may also be provided on a 
                                fee-for-service basis or through the 
                                leveraging of economic development and 
                                other resources as determined 
                                appropriate by the local board; and
                                    ``(II) may include--
                                            ``(aa) identifying and 
                                        disseminating to business, 
                                        educators, and job seekers, 
                                        information related to the 
                                        workforce, economic and 
                                        community development needs, 
                                        and opportunities of the local 
                                        economy;
                                            ``(bb) development and 
                                        delivery of innovative 
                                        workforce investment services 
                                        and strategies for area 
                                        businesses, which may include 
                                        sectoral, industry cluster, 
                                        regional skills alliances, 
                                        career ladder, skills 
                                        upgrading, skill standard 
                                        development and certification, 
                                        apprenticeship, and other 
                                        effective initiatives for 
                                        meeting the workforce 
                                        investment needs of area 
                                        employers and workers;
                                            ``(cc) participation in 
                                        seminars and classes offered in 
                                        partnership with relevant 
                                        organizations focusing on the 
                                        workforce-related needs of area 
                                        employers and job seekers;
                                            ``(dd) training consulting, 
                                        needs analysis, and brokering 
                                        services for area businesses, 
                                        including the organization and 
                                        aggregation of training (which 
                                        may be paid for with funds 
                                        other than those provided under 
                                        this title), for individual 
                                        employers and coalitions of 
                                        employers with similar 
                                        interests, products, or 
                                        workforce needs;
                                            ``(ee) assistance to area 
                                        employers in the aversion of 
                                        layoffs and in managing 
                                        reductions in workforce in 
                                        coordination with rapid 
                                        response activities;
                                            ``(ff) the marketing of 
                                        business services offered under 
                                        this title, to appropriate area 
                                        employers, including small and 
                                        mid-sized employers;
                                            ``(gg) information referral 
                                        on concerns affecting local 
                                        employers; and
                                            ``(hh) other business 
                                        services and strategies 
                                        designed to better engage 
                                        employers in workforce 
                                        investment activities and to 
                                        make the workforce investment 
                                        system more relevant to the 
                                        workforce investment needs of 
                                        area businesses, as determined 
                                        by the local board to be 
                                        consistent with the objectives 
                                        of this title.''.
                    (B) by striking paragraphs (2) and (3); and
                    (C) by adding at the end the following:
            ``(2) Incumbent worker training programs.--
                    ``(A) In general.--The local board may use funds 
                allocated to a local area under section 133(b)(2) to 
                carry out incumbent worker training programs in 
                accordance with this paragraph.
                    ``(B) Training activities.--The training programs 
                for incumbent workers under this paragraph shall be 
                carried out by the local area in conjunction with the 
                employers of such workers for the purpose of assisting 
                such workers in obtaining the skills necessary to 
                retain employment and avert layoffs.
                    ``(C) Employer match required.--
                            ``(i) In general.--Employers participating 
                        in programs under this paragraph shall be 
                        required to pay a proportion of the costs of 
                        providing the training to the incumbent workers 
                        of the employers. The State board, in 
                        consultation with the local board as 
                        appropriate, shall establish the required 
                        portion of such costs, which may include in-
                        kind contributions. The required portion shall 
                        not be less than 50 percent of the costs.
                            ``(ii) Calculation of match.--The wages 
                        paid by an employer to a worker while they are 
                        attending training may be included as part of 
                        the required payment of the employer.''; and
            (7) by adding at the end the following:
    ``(e) Priority for Placement in Private Sector Jobs.--In providing 
employment and training activities authorized under this section, the 
State and local board shall give priority to placing participants in 
jobs in the private sector.''.

SEC. 114. PERFORMANCE ACCOUNTABILITY SYSTEM.

    Section 136 (29 U.S.C. 2871) is amended--
            (1) in subsection (b)--
                    (A) by amending paragraphs (1) and (2) to read as 
                follows:
            ``(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
                    ``(ii) 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) Indicators of performance.--
                    ``(A) Core indicators of performance.--
                            ``(i) In general.--The core indicators of 
                        performance for the program of employment and 
                        training activities authorized under section 
                        134, the program of adult education and 
                        literacy activities authorized under title II, 
                        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 and number of 
                                program participants who are in 
                                unsubsidized employment during the 
                                second full calendar quarter after exit 
                                from the program;
                                    ``(II) the percentage and number of 
                                program participants who are in 
                                unsubsidized employment during the 
                                fourth full calendar quarter after exit 
                                from the program;
                                    ``(III) the median earnings of 
                                program participants who are in 
                                unsubsidized employment during the 
                                second full calendar quarter after exit 
                                from the program compared to the median 
                                earnings of such participants prior to 
                                the training received under such 
                                program;
                                    ``(IV) the percentage and number of 
                                program participants who obtain a 
                                recognized postsecondary credential, 
                                including a registered apprenticeship, 
                                or a regular secondary school diploma 
                                or its recognized equivalent (subject 
                                to clause (iii)), during participation 
                                in or within 1 year after exit from 
                                program;
                                    ``(V) the percentage and number of 
                                program participants who, during a 
                                program year--
                                            ``(aa) are in an education 
                                        or training program that leads 
                                        to a recognized postsecondary 
                                        credential, including a 
                                        registered apprenticeship or 
                                        on-the-job training program, a 
                                        regular secondary school 
                                        diploma or its recognized 
                                        equivalent, or unsubsidized 
                                        employment; and
                                            ``(bb) are achieving 
                                        measurable basic skill gains 
                                        toward such a credential or 
                                        employment; and
                                    ``(VI) the percentage and number of 
                                program participants who obtain 
                                unsubsidized employment in the field 
                                relating to the training services 
                                described in section 134(c)(4) that 
                                such participants received.
                            ``(ii) Core indicators for eligible 
                        youth.--The core indicators of performance for 
                        the program of youth activities authorized 
                        under section 134(a)(5), shall include--
                                    ``(I) the percentage and number of 
                                program participants who are in 
                                education or training activities in 
                                unsubsidized employment, or in the 
                                military service, during the first full 
                                calendar quarter after exit from the 
                                program;
                                    ``(II) the percentage and number of 
                                program participants who are in 
                                education or training activities, in 
                                unsubsidized employment, or in the 
                                military service, during the fourth 
                                full calendar quarter after exit from 
                                the program;
                                    ``(III) the median earnings of 
                                program participants who are in 
                                unsubsidized employment during the 
                                second full calendar quarter after exit 
                                from the program compared to the median 
                                earnings of such participants prior to 
                                the training;
                                    ``(IV) the percentage and number of 
                                program participants who obtain a 
                                recognized postsecondary credential 
                                described in clause (i)(IV), or a 
                                regular 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 and number of 
                                program participants who, during a 
                                program year, are in an education or 
                                training program that leads to a 
                                recognized postsecondary credential or 
                                a regular secondary school diploma or 
                                its recognized equivalent, or 
                                unsubsidized employment and who are 
                                achieving measurable basic skill gains 
                                toward such a credential or employment; 
                                and
                                    ``(VI) the percentage and number of 
                                program participants who obtain 
                                unsubsidized employment in the field 
                                relating to the training services 
                                described in section 134(c)(4) that 
                                such participants received.
                            ``(iii) Indicator relating to credential.--
                        For purposes of clause (i)(IV) and (ii)(IV), 
                        program participants who obtain a regular 
                        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, within 1 year after exit from 
                        the program, obtained or retained employment, 
                        have been removed from public assistance, or 
                        are in an education or training program leading 
                        to a recognized postsecondary credential 
                        described in clause (i)(IV).
                    ``(B) Additional indicators.--A State may identify 
                in the State plan additional indicators for workforce 
                investment activities authorized under this 
                subtitle.''; and
                    (B) in paragraph (3)--
                            (i) in subparagraph (A)--
                                    (I) in the heading, by striking 
                                ``and customer satisfaction 
                                indicator'';
                                    (II) in clause (i), by striking 
                                ``and the customer satisfaction 
                                indicator described in paragraph 
                                (2)(B)'';
                                    (III) in clause (ii), by striking 
                                ``and the customer satisfaction 
                                indicator of performance, for the first 
                                3'' and inserting ``, for the first 
                                2'';
                                    (IV) in clause (iii)--
                                            (aa) in the heading, by 
                                        striking ``3 years'' and 
                                        inserting ``2 years''; and
                                            (bb) by striking ``and the 
                                        customer satisfaction indicator 
                                        of performance, for the first 3 
                                        program years'' and inserting 
                                        ``for the first 2 program 
                                        years'';
                                    (V) in clause (iv)--
                                            (aa) by striking subclause 
                                        (I) and redesignating 
                                        subclauses (II) and (III) as 
                                        subclauses (I) and (II), 
                                        respectively; and
                                            (bb) in subclause (I) (as 
                                        so redesignated)--

                                                    (AA) by striking 
                                                ``taking into account'' 
                                                and inserting ``which 
                                                shall be adjusted based 
                                                on'';

                                                    (BB) by inserting 
                                                ``, such as 
                                                unemployment rates and 
                                                job losses or gains in 
                                                particular industries'' 
                                                after ``economic 
                                                conditions''; and

                                                    (CC) by inserting 
                                                ``, such as indicators 
                                                of poor work 
                                                experience, dislocation 
                                                from high-wage 
                                                employment, low levels 
                                                of literacy or English 
                                                proficiency, disability 
                                                status, including the 
                                                number of veterans with 
                                                disabilities, and 
                                                welfare dependency'' 
                                                after ``program'';

                                    (VI) by striking clause (v) and 
                                redesignating clause (vi) as clause 
                                (v); and
                                    (VII) in clause (v) (as so 
                                redesignated),
                                            (aa) by striking 
                                        ``described in clause 
                                        (iv)(II)'' and inserting 
                                        ``described in clause 
                                        (iv)(I)''; and
                                            (bb) striking ``or (v)''; 
                                        and
                            (ii) in subparagraph (B), by striking 
                        ``paragraph (2)(C)'' and inserting ``paragraph 
                        (2)(B)'';
            (2) in subsection (c)(1)(A)--
                    (A) by amending clause (i) to read as follows:
                            ``(i) the core indicators of performance 
                        described in subsection (b)(2)(A) for 
                        activities described in such subsections, other 
                        than statewide workforce investment activities; 
                        and'';
                    (B) in clause (ii), by striking ``(b)(2)(C)'' and 
                inserting ``(b)(2)(B)''; and
                    (C) by amending paragraph (3) to read as follows:
            ``(3) Determinations.--In determining such local levels of 
        performance, the local board, the chief elected official, and 
        the Governor shall ensure such levels are adjusted based on the 
        specific economic characteristics (such as unemployment rates 
        and job losses or gains in particular industries), demographic 
        characteristics, or other characteristics of the population to 
        be served in the local area, such as poor work history, lack of 
        work experience, dislocation from high-wage employment, low 
        levels of literacy or English proficiency, disability status, 
        including the number of veterans with disabilities, and welfare 
        dependency.'';
            (3) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by striking ``127 or''; and
                            (ii) by striking ``and the customer 
                        satisfaction indicator'' each place it appears;
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``section 134(d)(4)'' and inserting ``section 
                        134)(c)(4)'';
                            (ii) in subparagraph (E), by striking 
                        ``(excluding participants who received only 
                        self-service and information activities); and'' 
                        and inserting a semicolon;
                            (iii) by striking ``and'' at the end of 
                        subparagraph (E);
                            (iv) by striking the period at the end of 
                        subparagraph (F) and inserting ``; and''; and
                            (v) by adding at the end, the following:
                    ``(G) with respect to each local area in the 
                State--
                            ``(i) the number of individuals who 
                        received work ready services described under 
                        section 134(c)(2) and the number of individuals 
                        who received training services described under 
                        section 134(c)(4) during the most recent 
                        program year and fiscal year, and the preceding 
                        5 program years, and where the individuals 
                        received the training, disaggregated by the 
                        type of entity that provided the training;
                            ``(ii) the number of individuals who 
                        successfully exited out of work ready services 
                        described under section 134(c)(2) and the 
                        number of individuals who exited out of 
                        training services described under section 
                        134(c)(4) during the most recent program year 
                        and fiscal year, and the preceding 5 program 
                        years, and where the individuals received the 
                        training, disaggregated by the type of entity 
                        that provided the training; and
                            ``(iii) the average cost per participant of 
                        those individuals who received work ready 
                        services described under section 134(c)(2) and 
                        the average cost per participant of those 
                        individuals who received training services 
                        described under section 134(c)(4) during the 
                        most recent program year and fiscal year, and 
                        the preceding 5 program years, and where the 
                        individuals received the training, 
                        disaggregated by the type of entity that 
                        provided the training.'';
                    (C) in paragraph (3), by striking ``through 
                publication'' and inserting ``through electronic 
                means''; and
                    (D) by adding at the end the following:
            ``(4) Data validation.--In preparing the reports described 
        in this subsection, each State shall establish procedures, 
        consistent with guidelines issued by the Secretary, to ensure 
        the information contained in the report is valid and 
        reliable.'';
            (4) in subsection (g)--
                    (A) in subsection (g)(1)(A), by striking ``or 
                (B)'';
                    (B) in paragraph (1)(B), by striking ``may reduce 
                by not more than 5 percent,'' and inserting ``shall 
                reduce''; and
                    (C) by striking paragraph (2) and inserting the 
                following:
            ``(2) Funds resulting from reduced allotments.--The 
        Secretary shall return to the Treasury the amount retained, as 
        a result of a reduction in an allotment to a State made under 
        paragraph (1)(B).'';
            (5) in subsection (h)(1), by striking ``or (B)'';
            (6) in subsection (h)(2)--
                    (A) in subparagraph (A), by amending the matter 
                preceding clause (i) to read as follows:
                    ``(A) In general.--If such failure continues for a 
                second consecutive year, the Governor shall take 
                corrective actions, including the development of a 
                reorganization plan. Such plan shall--'';
                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (C) and (D), respectively;
                    (C) by inserting after subparagraph (A), the 
                following:
                    ``(B) Reduction in the amount of grant.--If such 
                failure continues for a third consecutive year, the 
                Governor of a State shall reduce the amount of the 
                grant that would (in the absence of this subparagraph) 
                be payable to the local area under such program for the 
                program year after such third consecutive year. Such 
                penalty shall be based on the degree of failure to meet 
                local levels of performance.'';
                    (D) in subparagraph (C)(i) (as so redesignated), by 
                striking ``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 a plan'' and inserting 
                ``corrective actions under subparagraphs (A) and (B) 
                may, not later than 30 days after receiving notice of 
                the actions, appeal to the Governor to rescind or 
                revise such actions''; and
                    (E) in subparagraph (D) (as so redesignated), by 
                striking ``subparagraph (B)'' each place it appears and 
                inserting ``subparagraph (C)'';
            (7) in subsection (i)(1)(C), by striking ``(b)(3)(A)(vi)'' 
        and inserting ``(b)(3)(A)(v)'';
            (8) in subsection (i)(1)(B), by striking ``subsection 
        (b)(2)(C)'' and inserting ``subsection (b)(2)(B)''; and
            (9) by adding at the end the following subsection:
    ``(j) Use of Core Indicators for Other Programs.--In addition to 
the programs carried out under chapter 5, and consistent with the 
requirements of the applicable authorizing laws, the Secretary shall 
use the core indicators of performance described in subsection 
(b)(2)(A) to assess the effectiveness of the programs described under 
section 121(b)(1)(B) that are carried out by the Secretary.''.

SEC. 115. AUTHORIZATION OF APPROPRIATIONS.

    Section 137 is amended to read as follows:

``SEC. 137. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out the 
activities described in section 132, $6,080,237,000 for fiscal year 
2013 and each of the 5 succeeding fiscal years.''.

SEC. 116. TECHNICAL ASSISTANCE.

    Section 170 (29 U.S.C. 2915) is amended--
            (1) by striking subsection (b);
            (2) by striking:
    ``(a) General Technical Assistance.--'';
            (3) by redesignating paragraphs (1), (2), and (3) as 
        subsections (a), (b), and (c) respectively, and moving such 
        subsections 2 ems to the left;
            (4) in subsection (a) (as so redesignated)--
                    (A) by inserting ``the training of staff providing 
                rapid response services, the training of other staff of 
                recipients of funds under this title, assistance 
                regarding accounting and program operation practices 
                (when such assistance would not be duplicative to 
                assistance provided by the State), technical assistance 
                to States that do not meet State performance measures 
                described in section 136,'' after ``localities,''; and
                    (B) by striking ``from carrying out activities'' 
                and all that follows up to the period and inserting 
                ``to implement the amendments made by the Workforce 
                Investment Improvement Act of 2011''; and
            (5) in subsection (b) (as so redesignated) by striking ``, 
        or recipient of financial assistance under any of section 166 
        through 169,''; and
            (6) by inserting, after subsection (c) (as redesignated by 
        paragraph (3)), the following:
    ``(d) Best Practices Coordination.--The Secretary shall--
            ``(1) establish a system through which States may share 
        information regarding best practices with regard to the 
        operation of workforce investment activities under this Act; 
        and
            ``(2) evaluate and disseminate information regarding best 
        practices and identify knowledge gaps.''.

SEC. 117. EVALUATIONS.

    Section 172 is amended--
            (1) in subsection (a), by striking ``the Secretary shall 
        provide for the continuing evaluation of the programs and 
        activities, including those programs and activities carried out 
        under section 171'' and inserting ``the Secretary, through 
        grants, contracts, or cooperative agreements, shall conduct, at 
        least once every 5 years, an independent evaluation of the 
        programs and activities funded under this Act'';
            (2) in subsection (a)(4) is amended to read as follows:
            ``(4) the impact of receiving services and not receiving 
        services under such programs and activities on the community, 
        businesses, and individuals;'';
            (3) in subsection (c) is amended to read as follows:
    ``(c) Techniques.--Evaluations conducted under this section shall 
utilize appropriate and rigorous methodology and research designs, 
including the use of control groups chosen by scientific random 
assignment methodologies, quasi-experimental methods, impact analysis 
and the use of administrative data. The Secretary shall conduct an 
impact analysis, as described in subsection (a)(4), of the formula 
grant program under subtitle B not later than 2014, and thereafter 
shall conduct such an analysis not less than once every four years.'';
            (4) in subsection (e) is amended by striking ``the 
        Committee on Labor and Human Resources of the Senate'' and 
        inserting ``the Committee on Health, Education, Labor, and 
        Pensions of the Senate''; and
            (5) by adding at the end, the following:
    ``(g) Public Availability.--The results of the evaluations 
conducted under this section shall be made publicly available, 
including by posting such results on the Department's website.''.

SEC. 118. AMENDMENTS TO SECTION 173.

    Section 173 (29 U.S.C. 2918) is amended--
            (1) by amending the heading for section 173 to read as 
        follows: ``national dislocated worker grants'';
            (2) in subsection (a)--
                    (A) by striking ``national emergency grants'' in 
                the matter preceding paragraph (1) and inserting 
                ``national dislocated worker grants'';
                    (B) in paragraph (1), by striking ``subsection 
                (c)'' and inserting ``subsection (b)''; and
                    (C) in paragraph (4)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``section 
                                173(c)(1)(B)'' and inserting ``section 
                                173(h)(1)(B)''; and
                                    (II) by striking ``subsection (f)'' 
                                and inserting ``subsection (d)''; and
                            (ii) in subparagraph (B), by striking 
                        ``subsection (g)'' and inserting ``subsection 
                        (e)'';
            (3) by striking subsections (b) and (e) and redesignating 
        subsections (c), (d), (f), and (g) as subsections (b) through 
        (e), respectively;
            (4) in subsection (b)(1)(B) (as so redesignated), by 
        striking ``an entity described in section 166(c)'' and all that 
        follows, and replacing with ``and section 132(a)(2).'';
            (5) in subsection (b)(2)(A) (as so redesignated)--
                    (A) in the matter preceding clause (i), by striking 
                ``national emergency grant'' and inserting ``national 
                dislocated worker grant'';
                    (B) in clause (iii), by striking ``; or'' and 
                inserting a semicolon;
                    (C) in clause (iv)(IV) by striking the period and 
                inserting ``; or''; and
                    (D) by inserting at the end the following:
                            ``(v) is the spouse of a member of the 
                        Armed Forces who is on active duty or full-time 
                        National Guard duty, or who was recently 
                        separated from such duties, and such spouse is 
                        in need of employment and training assistance 
                        to obtain or retain employment.'';
            (6) in subsection (b)(2)(C) (as so redesignated), by 
        striking ``national emergency grant'' and inserting ``national 
        dislocated worker grants'';
            (7) in subsection (d)(2) (as so redesignated), by striking 
        ``subsection (g)'' and inserting ``subsection (e)'';
            (8) strike subsection (d)(3)(B) (as so redesignated);
            (9) in subsection (d)(5) (as so redesignated), by striking 
        ``subsection (g)'' and inserting ``subsection (e)'';
            (10) in subsection (d)(6) (as so redesignated), by striking 
        ``subsection (g)'' and inserting ``subsection (e)'';
            (11) in subsection (e)(1)(A) (as so redesignated), by 
        striking ``subsection (f)(1)(A)'' and inserting ``subsection 
        (d)(1)(A)''; and
            (12) strike subsection (e)(4)(B) (as so redesignated).

SEC. 119. REQUIREMENTS AND RESTRICTIONS.

    Section 181 (29 U.S.C. 2931) is amended--
            (1) in subsection (b)(6), by striking ``, including 
        representatives of businesses and labor organizations'';
            (2) in subsection (c)(2)(A), in the matter preceding clause 
        (i), by striking ``shall'' and inserting ``may'';
            (3) in subsection (e)--
                    (A) by striking ``training for'' and inserting 
                ``the entry into employment, retention in employment, 
                or increases in earnings of''; and
                    (B) by striking ``under subtitle B'' and inserting 
                ``this Act''; and
            (4) by adding at the end the following:
    ``(g) Salary and Bonus Limitation.--No funds provided under this 
title shall be used by a recipient or subrecipient of such funds to pay 
the salary and bonuses of an individual, either as direct costs or 
indirect costs, at a rate in excess of Level II of the Federal 
Executive Pay Schedule (5 U.S.C. 5313). This limitation shall not apply 
to vendors providing goods and services as defined in OMB Circular A-
133. Where States are recipients of such funds, States may establish a 
lower limit for salaries and bonuses of those receiving salaries and 
bonuses from subrecipients of such funds, taking into account factors 
including the relative cost-of-living in the State, the compensation 
levels for comparable State or local government employees, and the size 
of the organizations that administer the programs.
    ``(h) General Authority.--
            ``(1) In general.--The Employment and Training 
        Administration of the U.S. Department of Labor (hereinafter in 
        this Act referred to as the `Administration') shall administer 
        all programs authorized under title I and III of this Act. The 
        Administration shall be headed by an Assistant Secretary 
        appointed by the President by and with the advice and consent 
        of the Senate. Except for titles II and IV, the Administration 
        shall be the principal agency, and the Assistant Secretary 
        shall be the principal officer, of such Department for carrying 
        out this Act.
            ``(2) Qualifications.--The Assistant Secretary shall be an 
        individual with substantial experience in workforce development 
        and in workforce development management. The Assistant 
        Secretary shall also, to the maximum extent possible, possess 
        knowledge and have worked in or with the State or local 
        workforce investment system or have been a member of the 
        business community. In the performance of the functions of the 
        office, the Assistant Secretary shall be directly responsible 
        to the Secretary or the Under Secretary as designed by the 
        Secretary. The functions of the Assistant Secretary shall not 
        be delegated to any officer not directly responsible, both with 
        respect to program operation and administration, to the 
        Assistant Secretary. Any reference in this Act to duties to be 
        carried out by the Assistant Secretary shall be considered to 
        be a reference to duties to be carried out by the Secretary 
        acting through the Assistant Secretary.''.

SEC. 120. PROMPT ALLOCATION OF FUNDS.

    Section 182 (29 U.S.C. 2932) is amended--
            (1) in subsection (c), by striking ``127 or''; and
            (2) in subsection (e)--
                    (A) by striking ``sections 128 and 133'' and 
                inserting ``section 133''; and
                    (B) by striking ``127 or''.

SEC. 121. FISCAL CONTROLS; SANCTIONS.

    Section 184(a)(2) (29 U.S.C. 2934(a)(2)) is amended by striking 
subparagraph (B).

SEC. 122. REPORTS TO CONGRESS.

    Section 185 (29 U.S.C. 2935) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (2), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (3), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) shall have the option to submit or disseminate 
        electronically any reports, records, plans, or any other data 
        that are required to be collected or disseminated under this 
        title.''; and
            (2) in subsection (e)(2), by inserting ``and the Secretary 
        shall submit 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,'' after 
        ``Secretary,''.

SEC. 123. ADMINISTRATIVE PROVISIONS.

    Section 189 (29 U.S.C. 2939) is amended--
            (1) in subsection (g)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--Appropriations for any fiscal year for 
        programs and activities carried out under this title shall be 
        available for obligation only on the basis of a program year. 
        The program year shall begin on July 1 in the fiscal year for 
        which the appropriation is made.''; and
                    (B) in paragraph (2)--
                            (i) by striking ``each State'' and 
                        inserting ``each recipient''; and
                            (ii) by striking ``171 or'';
            (2) in subsection (i)(4)--
                    (A) in subparagraph (A)--
                            (i) by striking ``requirements of 
                        subparagraph (B)'' and all that follows through 
                        ``any of the statutory or regulatory 
                        requirements of subtitle B'' and inserting 
                        ``requirements of subparagraph (B) or (D), any 
                        of the statutory or regulatory requirements of 
                        subtitle B''; and
                            (ii) by striking clause (ii); and
                    (B) by adding at the end the following:
                    ``(D) Expedited process for extending approved 
                waivers to additional states.--In lieu of the 
                requirements of subparagraphs (B) and (C), the 
                Secretary may establish an expedited procedure for the 
                purpose of extending to additional States the waiver of 
                statutory or regulatory requirements that have been 
                approved for a State pursuant to a request under 
                subparagraph (B). Such procedure shall ensure that the 
                extension of such waivers to additional States are 
                accompanied by appropriate conditions relating the 
                implementation of such waivers.''.

SEC. 124. STATE LEGISLATIVE AUTHORITY.

    Section 191(a) (29 U.S.C. 2941(a)) is amended--
            (1) by striking ``consistent with the provisions of this 
        title'' and inserting ``consistent with State law and the 
        provisions of this title''; and
            (2) by striking ``consistent with the terms and conditions 
        required under this title'' and inserting ``consistent with 
        State law and the terms and conditions required under this 
        title''.

SEC. 125. CONTINUATION OF STATE ACTIVITIES AND POLICIES.

    Section 194 (20 U.S.C. 2944) is amended--
            (1) in subsection (a)(1)(A), by striking ``127 or'';
            (2) in subsection (a)(1)(B), by striking ``127 or''; and
            (3) in subsection (a)(2), by striking ``127 or''.

SEC. 126. GENERAL PROGRAM REQUIREMENTS.

    Section 195 (29 U.S.C. 2945) is amended--
            (1) in paragraph (7), by inserting at the end the 
        following:
                    ``(D) Funds received by a public or private 
                nonprofit entity that are not described in paragraph 
                (B), such as funds privately raised from philanthropic 
                foundations, businesses, or other private entities, 
                shall not be considered to be income under this title 
                and shall not be subject to the requirements of this 
                section.''; and
            (2) by adding at the end the following new paragraphs:
            ``(14) Funds provided under this title shall not be used to 
        establish or operate stand-alone fee-for-service enterprises 
        that compete with private sector employment agencies within the 
        meaning of section 701(c) of the Civil Rights Act of 1964 (42 
        U.S.C. 2000e(c)), except that for purposes of this paragraph, 
        such an enterprise does not include one-stop centers.
            ``(15) Any report required to be submitted to Congress, or 
        to a Committee of Congress, under this title shall be submitted 
        to both the chairmen and ranking minority members of the 
        Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate.''.

SEC. 127. STATE UNIFIED PLAN.

    Section 501 (20 U.S.C. 9271) is amended--
            (1) by amending subsection (b) to read as follows:
    ``(b) State Unified Plan.--
            ``(1) In general.--A State may develop and submit to the 
        appropriate Secretaries a State unified plan for 2 or more of 
        the activities or programs set forth in paragraph (2). The 
        State unified plan shall cover one or more of the activities 
        set forth in subparagraphs (A) and (B) of paragraph (2) and may 
        cover one or more of the activities set forth in subparagraphs 
        (C) through (N) of paragraph (2). For purposes of this 
        paragraph, the activities and programs described in 
        subparagraphs (A) and (B) of paragraph (2) shall not be 
        considered to be 2 or more activities or programs for purposes 
        of the unified plan. Such activities or programs shall be 
        considered to be 1 activity or program.
            ``(2) Activities and programs.--The activities and programs 
        referred to in paragraph (1) are as follows:
                    ``(A) Programs and activities authorized under 
                title I.
                    ``(B) Programs and activities authorized under 
                title II.
                    ``(C) Programs authorized under the Rehabilitation 
                Act of 1973.
                    ``(D) Secondary career education programs 
                authorized under the Carl D. Perkins Career and Applied 
                Technology Education Act.
                    ``(E) Postsecondary career education programs 
                authorized under the Carl D. Perkins Career and Applied 
                Technology Education Act.
                    ``(F) Programs and activities authorized under 
                title II of the Trade Act of 1974.
                    ``(G) National Apprenticeship Act of 1937.
                    ``(H) Programs authorized under the Community 
                Services Block Grant Act.
                    ``(I) Programs authorized under the part A of title 
                IV of the Social Security Act.
                    ``(J) Programs authorized under State unemployment 
                compensation laws (in accordance with applicable 
                Federal law).
                    ``(K) Work programs authorized under section 6(o) 
                of the Food Stamp Act of 1977.
                    ``(L) Programs and activities authorized title I of 
                the Housing and Community Development Act of 1974.
                    ``(M) Programs and activities authorized under the 
                Public Workers and Economic Development Act of 1965.
                    ``(N) Activities as defined under chapter 41 of 
                title 38, United States Code.''; and
            (2) by adding at the end, the following:
    ``(e) Authority To Consolidate Funds Into Workforce Investment 
Fund.--
            ``(1) In general.--A State may consolidate funds allotted 
        to a State under an approved application under subsection (d) 
        into the Workforce Investment Fund under section 132(b) in 
        order to reduce inefficiencies in the administration of 
        federally-funded State and local employment and training 
        programs.
            ``(2) Treatment of funds.--
                    ``(A) In general.--Notwithstanding subsection (c), 
                a State with an approved application under subsection 
                (d) may treat any and all funds consolidated into the 
                Workforce Investment Fund as if they were original 
                funds allotted to a State under section 132(b).
                    ``(B) Applicability.--Such a State shall continue 
                to make reservations, except the reservation under 
                section 133(a)(1), and allotments in accordance with 
                section 133(b)(2).
            ``(3) Special rule.--A State may not consolidate funds 
        allocated to the State under the Carl D. Perkins Career and 
        Technical Education Act of 2006.''.

        TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

SEC. 201. AMENDMENT.

    Title II (29 U.S.C. 2901 et seq.) is amended to read as follows:

       ``TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

``SEC. 201. SHORT TITLE.

    ``This title may be cited as the `Adult Education and Family 
Literacy Education Act'.

``SEC. 202. PURPOSE.

    ``It is the purpose of this title to provide instructional 
opportunities for adults seeking to improve their literacy skills, 
including their basic reading, writing, speaking, and math skills, and 
support States and local communities in providing, on a voluntary 
basis, adult education and family literacy education programs, in order 
to--
            ``(1) increase the literacy of adults, including the basic 
        reading, writing, speaking, and math skills, to a level of 
        proficiency necessary for adults to obtain employment and self-
        sufficiency and to successfully advance in the workforce;
            ``(2) assist adults in the completion of a secondary school 
        education (or its equivalent) and the transition to a 
        postsecondary educational institution;
            ``(3) assist adults who are parents to enable them to 
        support the educational development of their children and make 
        informed choices regarding their children's education 
        including, through instruction in basic reading, writing, 
        speaking, and math skills; and
            ``(4) assist adults who are not proficient in English in 
        improving their reading, writing, speaking, listening, 
        comprehension, and math skills.

``SEC. 203. DEFINITIONS.

    ``In this title:
            ``(1) Adult education and family literacy education 
        programs.--The term `adult education and family literacy 
        education programs' means a sequence of academic instruction 
        and educational services below the postsecondary level that 
        increase an individual's ability to read, write, and speak 
        English and perform mathematical computations leading to a 
        level of proficiency equivalent to at least a secondary school 
        completion that is provided for individuals--
                    ``(A) who are at least 16 years of age;
                    ``(B) who are not enrolled or required to be 
                enrolled in secondary school under State law; and
                    ``(C) who--
                            ``(i) lack sufficient mastery of basic 
                        reading, writing, speaking, and math skills to 
                        enable the individuals to function effectively 
                        in society;
                            ``(ii) do not have a secondary school 
                        diploma or its equivalent and have not achieved 
                        an equivalent level of education; or
                            ``(iii) are English learners.
            ``(2) Eligible agency.--The term `eligible agency'--
                    ``(A) means the primary entity or agency in a State 
                or an outlying area responsible for administering or 
                supervising policy for adult education and family 
                literacy education programs in the State or outlying 
                area, respectively, consistent with the law of the 
                State or outlying area, respectively; and
                    ``(B) may be the State educational agency, the 
                State agency responsible for administering workforce 
                investment activities, or the State agency responsible 
                for administering community or technical colleges.
            ``(3) Eligible provider.--The term `eligible provider' 
        means--
                    ``(A) a local educational agency;
                    ``(B) a community-based or faith-based organization 
                of demonstrated effectiveness;
                    ``(C) a volunteer literacy organization of 
                demonstrated effectiveness;
                    ``(D) an institution of higher education;
                    ``(E) a public or private educational agency;
                    ``(F) a library;
                    ``(G) a public housing authority;
                    ``(H) an institution that is not described in any 
                of subparagraphs (A) through (G) and has the ability to 
                provide adult education, basic skills, and family 
                literacy education programs to adults and families; or
                    ``(I) a consortium of the agencies, organizations, 
                institutions, libraries, or authorities described in 
                any of subparagraphs (A) through (H).
            ``(4) English language acquisition program.--The term 
        `English language acquisition program' means a program of 
        instruction--
                    ``(A) designed to help English learners achieve 
                competence in reading, writing, speaking, and 
                comprehension of the English language; and
                    ``(B) that may lead to--
                            ``(i) attainment of a secondary school 
                        diploma or its recognized equivalent;
                            ``(ii) transition to success in 
                        postsecondary education and training; and
                            ``(iii) employment or career advancement.
            ``(5) Family literacy education program.--The term `family 
        literacy education program' means an educational program that--
                    ``(A) assists parents and students, on a voluntary 
                basis, in achieving the purposes of this title as 
                described in section 202; and
                    ``(B) is of sufficient intensity in terms of hours 
                and of sufficient duration to make sustainable changes 
                in a family, is evidence-based, and, for the purpose of 
                substantially increasing the ability of parents and 
                children to read, write, and speak English, 
                integrates--
                            ``(i) interactive literacy activities 
                        between parents and their children;
                            ``(ii) training for parents regarding how 
                        to be the primary teacher for their children 
                        and full partners in the education of their 
                        children;
                            ``(iii) parent literacy training that leads 
                        to economic self-sufficiency; and
                            ``(iv) an age-appropriate education to 
                        prepare children for success in school and life 
                        experiences.
            ``(6) Governor.--The term `Governor' means the chief 
        executive officer of a State or outlying area.
            ``(7) Individual with a disability.--
                    ``(A) In general.--The term `individual with a 
                disability' means an individual with any disability (as 
                defined in section 3 of the Americans with Disabilities 
                Act of 1990).
                    ``(B) Individuals with disabilities.--The term 
                `individuals with disabilities' means more than one 
                individual with a disability.
            ``(8) English learner.--The term `English learner' means an 
        adult or out-of-school youth who has limited ability in 
        reading, writing, speaking, or understanding the English 
        language, and--
                    ``(A) whose native language is a language other 
                than English; or
                    ``(B) who lives in a family or community 
                environment where a language other than English is the 
                dominant language.
            ``(9) Integrated education and training.--The term 
        `integrated education and training' means services that provide 
        adult education and literacy activities contextually and 
        concurrently with workforce preparation activities and 
        workforce training for a specific occupation or occupational 
        cluster. Such services may include offering adult education 
        services concurrent with credit-bearing postsecondary education 
        and training, including through co-instruction.
            ``(10) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965.
            ``(11) Literacy.--The term `literacy' means an individual's 
        ability to read, write, and speak in English, compute, and 
        solve problems at a level of proficiency necessary to obtain 
        employment and to successfully make the transition to 
        postsecondary education.
            ``(12) Local educational agency.--The term `local 
        educational agency' has the meaning given the term in section 
        9101 of the Elementary and Secondary Education Act of 1965.
            ``(13) Outlying area.--The term `outlying area' has the 
        meaning given the term in section 101 of this Act.
            ``(14) Postsecondary educational institution.--The term 
        `postsecondary educational institution' means--
                    ``(A) an institution of higher education that 
                provides not less than a 2-year program of instruction 
                that is acceptable for credit toward a bachelor's 
                degree;
                    ``(B) a tribally controlled community college; or
                    ``(C) a nonprofit educational institution offering 
                certificate or apprenticeship programs at the 
                postsecondary level.
            ``(15) Secretary.--The term `Secretary' means the Secretary 
        of Education.
            ``(16) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            ``(17) State educational agency.--The term `State 
        educational agency' has the meaning given the term in section 
        9101 of the Elementary and Secondary Education Act of 1965.
            ``(18) Workplace literacy program.--The term `workplace 
        literacy program' means an educational program that is offered 
        in collaboration between eligible providers and employers or 
        employee organizations for the purpose of improving the 
        productivity of the workforce through the improvement of 
        reading, writing, speaking, and math skills.

``SEC. 204. HOME SCHOOLS.

    ``Nothing in this title shall be construed to affect home schools, 
whether or not a home school is treated as a home school or a private 
school under State law, or to compel a parent engaged in home schooling 
to participate in adult education and family literacy education 
activities under this title.

``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title, 
$606,294,933 for fiscal years 2013 and for each of the 5 succeeding 
fiscal years.

                    ``Subtitle A--FEDERAL PROVISIONS

``SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES; 
              ALLOTMENTS.

    ``(a) Reservation of Funds.--From the sums appropriated under 
section 205 for a fiscal year, the Secretary shall reserve 2.0 percent 
to carry out section 242.
    ``(b) Grants to Eligible Agencies.--
            ``(1) In general.--From the sums appropriated under section 
        205 and not reserved under subsection (a) for a fiscal year, 
        the Secretary shall award a grant to each eligible agency 
        having a State plan approved under section 224 in an amount 
        equal to the sum of the initial allotment under subsection 
        (c)(1) and the additional allotment under subsection (c)(2) for 
        the eligible agency for the fiscal year, subject to subsections 
        (f) and (g).
            ``(2) Purpose of grants.--The Secretary may award a grant 
        under paragraph (1) only if the eligible agency involved agrees 
        to expend the grant in accordance with the provisions of this 
        title.
    ``(c) Allotments.--
            ``(1) Initial allotments.--From the sums appropriated under 
        section 205 and not reserved under subsection (a) for a fiscal 
        year, the Secretary shall allot to each eligible agency having 
        a State plan approved under section 224--
                    ``(A) $100,000, in the case of an eligible agency 
                serving an outlying area; and
                    ``(B) $250,000, in the case of any other eligible 
                agency.
            ``(2) Additional allotments.--From the sums appropriated 
        under section 205, not reserved under subsection (a), and not 
        allotted under paragraph (1), for a fiscal year, the Secretary 
        shall allot to each eligible agency that receives an initial 
        allotment under paragraph (1) an additional amount that bears 
        the same relationship to such sums as the number of qualifying 
        adults in the State or outlying area served by the eligible 
        agency bears to the number of such adults in all States and 
        outlying areas.
    ``(d) Qualifying Adult.--For the purpose of subsection (c)(2), the 
term `qualifying adult' means an adult who--
            ``(1) is at least 16 years of age;
            ``(2) is beyond the age of compulsory school attendance 
        under the law of the State or outlying area;
            ``(3) does not have a secondary school diploma or its 
        recognized equivalent; and
            ``(4) is not enrolled in secondary school.
    ``(e) Special Rule.--
            ``(1) In general.--From amounts made available under 
        subsection (c) for the Republic of Palau, the Secretary shall 
        award grants to Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, or the Republic of Palau to carry out 
        activities described in this title in accordance with the 
        provisions of this title as determined by the Secretary.
            ``(2) Termination of eligibility.--Notwithstanding any 
        other provision of law, the Republic of Palau shall be eligible 
        to receive a grant under this title until an agreement for the 
        extension of United States education assistance under the 
        Compact of Free Association for the Republic of Palau becomes 
        effective.
    ``(f) Hold-Harmless Provisions.--
            ``(1) In general.--Notwithstanding subsection (c), and 
        subject to paragraphs (2) and (3), for fiscal year 2013 and 
        each succeeding fiscal year, no eligible agency shall receive 
        an allotment under this title that is less than 90 percent of 
        the allotment the eligible agency received for the preceding 
        fiscal year under this title.
            ``(2) Exception.--An eligible agency that receives for the 
        preceding fiscal year only an initial allotment under 
        subsection (c)(1) (and no additional allotment under subsection 
        (c)(2)) shall receive an allotment equal to 100 percent of the 
        initial allotment.
            ``(3) Ratable reduction.--If for any fiscal year the amount 
        available for allotment under this title is insufficient to 
        satisfy the provisions of paragraph (1), the Secretary shall 
        ratably reduce the payments to all eligible agencies, as 
        necessary.
    ``(g) Reallotment.--The portion of any eligible agency's allotment 
under this title for a fiscal year that the Secretary determines will 
not be required for the period such allotment is available for carrying 
out activities under this title, shall be available for reallotment 
from time to time, on such dates during such period as the Secretary 
shall fix, to other eligible agencies in proportion to the original 
allotments to such agencies under this title for such year.

``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.

    ``Programs and activities authorized under this title are subject 
to the performance accountability provisions described in paragraph 
(2)(A) and (3) of section 136(b) and may, at a State's discretion, 
include additional indicators identified in the State plan approved 
under section 224.

                     ``Subtitle B--STATE PROVISIONS

``SEC. 221. STATE ADMINISTRATION.

    ``Each eligible agency shall be responsible for the following 
activities under this title:
            ``(1) The development, submission, implementation, and 
        monitoring of the State plan.
            ``(2) Consultation with other appropriate agencies, groups, 
        and individuals that are involved in, or interested in, the 
        development and implementation of activities assisted under 
        this title.
            ``(3) Coordination and avoidance of duplication with other 
        Federal and State education, training, corrections, public 
        housing, and social service programs.

``SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.

    ``(a) State Distribution of Funds.--Each eligible agency receiving 
a grant under this title for a fiscal year--
            ``(1) shall use an amount not less than 82.5 percent of the 
        grant funds to award grants and contracts under section 231 and 
        to carry out section 225, of which not more than 10 percent of 
        such amount shall be available to carry out section 225;
            ``(2) shall use not more than 12.5 percent of the grant 
        funds to carry out State leadership activities under section 
        223; and
            ``(3) shall use not more than 5 percent of the grant funds, 
        or $65,000, whichever is greater, for the administrative 
        expenses of the eligible agency.
    ``(b) Matching Requirement.--
            ``(1) In general.--In order to receive a grant from the 
        Secretary under section 211(b), each eligible agency shall 
        provide, for the costs to be incurred by the eligible agency in 
        carrying out the adult education and family literacy education 
        programs for which the grant is awarded, a non-Federal 
        contribution in an amount that is not less than--
                    ``(A) in the case of an eligible agency serving an 
                outlying area, 12 percent of the total amount of funds 
                expended for adult education and family literacy 
                education programs in the outlying area, except that 
                the Secretary may decrease the amount of funds required 
                under this subparagraph for an eligible agency; and
                    ``(B) in the case of an eligible agency serving a 
                State, 25 percent of the total amount of funds expended 
                for adult education and family literacy education 
                programs in the State.
            ``(2) Non-federal contribution.--An eligible agency's non-
        Federal contribution required under paragraph (1) may be 
        provided in cash or in kind, fairly evaluated, and shall 
        include only non-Federal funds that are used for adult 
        education and family literacy education programs in a manner 
        that is consistent with the purpose of this title.

``SEC. 223. STATE LEADERSHIP ACTIVITIES.

    ``(a) In General.--Each eligible agency may use funds made 
available under section 222(a)(2) for any of the following adult 
education and family literacy education programs:
            ``(1) The establishment or operation of professional 
        development programs to improve the quality of instruction 
        provided pursuant to local activities required under section 
        231(b).
            ``(2) The provision of technical assistance to eligible 
        providers of adult education and family literacy education 
        programs, including for the development and dissemination of 
        evidence based research instructional practices in reading, 
        writing, speaking, math, and English language acquisition 
        programs.
            ``(3) The provision of assistance to eligible providers in 
        developing, implementing, and reporting measurable progress in 
        achieving the objectives of this title.
            ``(4) The provision of technology assistance, including 
        staff training, to eligible providers of adult education and 
        family literacy education programs, including distance 
        education activities, to enable the eligible providers to 
        improve the quality of such activities.
            ``(5) The development and implementation of technology 
        applications or distance education, including professional 
        development to support the use of instructional technology.
            ``(6) Coordination with other public programs, including 
        welfare-to-work, workforce development, and job training 
        programs.
            ``(7) Coordination with existing support services, such as 
        transportation, child care, and other assistance designed to 
        increase rates of enrollment in, and successful completion of, 
        adult education and family literacy education programs, for 
        adults enrolled in such activities.
            ``(8) The development and implementation of a system to 
        assist in the transition from adult basic education to 
        postsecondary education.
            ``(9) Activities to promote workplace literacy programs.
            ``(10) Other activities of statewide significance, 
        including assisting eligible providers in achieving progress in 
        improving the skill levels of adults who participate in 
        programs under this title.
            ``(11) Integration of literacy, instructional, and 
        occupational skill training and promotion of linkages with 
        employees.
    ``(b) Coordination.--In carrying out this section, eligible 
agencies shall coordinate where possible, and avoid duplicating 
efforts, in order to maximize the impact of the activities described in 
subsection (a).
    ``(c) State-Imposed Requirements.--Whenever a State or outlying 
area implements any rule or policy relating to the administration or 
operation of a program authorized under this title that has the effect 
of imposing a requirement that is not imposed under Federal law 
(including any rule or policy based on a State or outlying area 
interpretation of a Federal statute, regulation, or guideline), the 
State or outlying area shall identify, to eligible providers, the rule 
or policy as being imposed by the State or outlying area.

``SEC. 224. STATE PLAN.

    ``(a) 3-Year Plans.--
            ``(1) In general.--Each eligible agency desiring a grant 
        under this title for any fiscal year shall submit to, or have 
        on file with, the Secretary a 3-year State plan.
            ``(2) State unified plan.--The eligible agency may submit 
        the State plan as part of a State unified plan described in 
        section 501.
    ``(b) Plan Contents.--The eligible agency shall include in the 
State plan or any revisions to the State plan--
            ``(1) an objective assessment of the needs of individuals 
        in the State or outlying area for adult education and family 
        literacy education programs, including individuals most in need 
        or hardest to serve;
            ``(2) a description of the adult education and family 
        literacy education programs that will be carried out with funds 
        received under this title;
            ``(3) an assurance that the funds received under this title 
        will not be expended for any purpose other than for activities 
        under this title;
            ``(4) a description of how the eligible agency will fund 
        local activities in accordance with the measurable goals 
        described in section 231(d);
            ``(5) an assurance that the eligible agency will expend the 
        funds under this title only in a manner consistent with fiscal 
        requirements in section 241;
            ``(6) a description of the process that will be used for 
        public participation and comment with respect to the State 
        plan, which process--
                    ``(A) shall include consultation with the State 
                workforce investment board, the State board responsible 
                for administering community or technical colleges, the 
                Governor, the State educational agency, the State board 
                or agency responsible for administering block grants 
                for temporary assistance to needy families under title 
                IV of the Social Security Act, the State council on 
                disabilities, the State vocational rehabilitation 
                agency, and other State agencies that promote the 
                improvement of adult education and family literacy 
                education programs, and direct providers of such 
                programs; and
                    ``(B) may include consultation with the State 
                agency on higher education, institutions responsible 
                for professional development of adult education and 
                family literacy education programs instructors, 
                representatives of business and industry, refugee 
                assistance programs, and faith-based organizations;
            ``(7) a description of the eligible agency's strategies for 
        serving populations that include, at a minimum--
                    ``(A) low-income individuals;
                    ``(B) individuals with disabilities;
                    ``(C) the unemployed;
                    ``(D) the underemployed; and
                    ``(E) individuals with multiple barriers to 
                educational enhancement, including English learners;
            ``(8) a description of how the adult education and family 
        literacy education programs that will be carried out with any 
        funds received under this title will be integrated with other 
        adult education, career development, and employment and 
        training activities in the State or outlying area served by the 
        eligible agency;
            ``(9) a description of the steps the eligible agency will 
        take to ensure direct and equitable access, as required in 
        section 231(c)(1), including--
                    ``(A) how the State will build the capacity of 
                community-based and faith-based organizations to 
                provide adult education and family literacy education 
                programs; and
                    ``(B) how the State will increase the participation 
                of business and industry in adult education and family 
                literacy education programs;
            ``(10) an assessment of the adequacy of the system of the 
        State or outlying area to ensure teacher quality and a 
        description of how the State or outlying area will use funds 
        received under this subtitle to improve teacher quality, 
        including evidence-based professional development to improve 
        instruction; and
            ``(11) a description of how the eligible agency will 
        consult with any State agency responsible for postsecondary 
        education to develop adult education that prepares students to 
        enter postsecondary education without the need for remediation 
        upon completion of secondary school equivalency programs.
    ``(c) Plan Revisions.--When changes in conditions or other factors 
require substantial revisions to an approved State plan, the eligible 
agency shall submit the revisions of the State plan to the Secretary.
    ``(d) Consultation.--The eligible agency shall--
            ``(1) submit the State plan, and any revisions to the State 
        plan, to the Governor, the chief State school officer, or the 
        State officer responsible for administering community or 
        technical colleges, or outlying area for review and comment; 
        and
            ``(2) ensure that any comments regarding the State plan by 
        the Governor, the chief State school officer, or the State 
        officer responsible for administering community or technical 
        colleges, and any revision to the State plan, are submitted to 
        the Secretary.
    ``(e) Plan Approval.--The Secretary shall--
            ``(1) approve a State plan within 120 days after receiving 
        the plan unless the Secretary makes a written determination 
        within 30 days after receiving the plan that the plan does not 
        meet the requirements of this section or is inconsistent with 
        specific provisions of this subtitle; and
            ``(2) not finally disapprove of a State plan before 
        offering the eligible agency the opportunity, prior to the 
        expiration of the 30-day period beginning on the date on which 
        the eligible agency received the written determination 
        described in paragraph (3), to review the plan and providing 
        technical assistance in order to assist the eligible agency in 
        meeting the requirements of this subtitle.

``SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER 
              INSTITUTIONALIZED INDIVIDUALS.

    ``(a) Program Authorized.--From funds made available under section 
222(a)(1) for a fiscal year, each eligible agency shall carry out 
corrections education and education for other institutionalized 
individuals.
    ``(b) Uses of Funds.--The funds described in subsection (a) shall 
be used for the cost of educational programs for criminal offenders in 
correctional institutions and for other institutionalized individuals, 
including academic programs for--
            ``(1) basic skills education;
            ``(2) special education programs as determined by the 
        eligible agency;
            ``(3) reading, writing, speaking, and math programs;
            ``(4) secondary school credit or diploma programs or their 
        recognized equivalent;
            ``(5) integrated education and training;
            ``(6) postsecondary correctional education linked to 
        employment; and
            ``(7) transition to re-entry initiatives and other post-
        release services with the goal of reducing recidivism.
    ``(c) Priority.--Each eligible agency that is using assistance 
provided under this section to carry out a program for criminal 
offenders within a correctional institution shall give priority to 
serving individuals who are likely to leave the correctional 
institution within 5 years of participation in the program.
    ``(d) Definitions.--For purposes of this section:
            ``(1) Correctional institution.--The term `correctional 
        institution' means any--
                    ``(A) prison;
                    ``(B) jail;
                    ``(C) reformatory;
                    ``(D) work farm;
                    ``(E) detention center; or
                    ``(F) halfway house, community-based rehabilitation 
                center, or any other similar institution designed for 
                the confinement or rehabilitation of criminal 
                offenders.
            ``(2) Criminal offender.--The term `criminal offender' 
        means any individual who is charged with, or convicted of, any 
        criminal offense.

                     ``Subtitle C--LOCAL PROVISIONS

``SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

    ``(a) Grants and Contracts.--From grant funds made available under 
section 222(a)(1), each eligible agency shall award multi-year grants 
or contracts, on a competitive basis, to eligible providers within the 
State or outlying area that meet the conditions and requirements of 
this title to enable the eligible providers to develop, implement, and 
improve adult education and family literacy education programs within 
the State.
    ``(b) Local Activities.--The eligible agency shall require eligible 
providers receiving a grant or contract under subsection (a) to 
establish or operate--
            ``(1) programs that provide adult education and literacy 
        activities;
            ``(2) programs that provide such activities concurrently 
        with postsecondary education or training or employment 
        activities; and
            ``(3) credit-bearing postsecondary coursework.
    ``(c) Direct and Equitable Access; Same Process.--Each eligible 
agency receiving funds under this title shall ensure that--
            ``(1) all eligible providers have direct and equitable 
        access to apply for grants or contracts under this section; and
            ``(2) the same grant or contract announcement process and 
        application process is used for all eligible providers in the 
        State or outlying area.
    ``(d) Measurable Goals.--The eligible agency shall require eligible 
providers receiving a grant or contract under subsection (a) to 
demonstrate--
            ``(1) the eligible provider's measurable goals for 
        participant outcomes to be achieved annually on the core 
        indicators of performance described in section 136(b)(2)(A);
            ``(2) the past effectiveness of the eligible provider in 
        improving the basic academic skills of adults and, for eligible 
        providers receiving grants in the prior year, the success of 
        the eligible provider receiving funding under this title in 
        exceeding its performance goals in the prior year;
            ``(3) the commitment of the eligible provider to serve 
        individuals in the community who are the most in need of basic 
        academic skills instruction services, including individuals who 
        are low-income or have minimal reading, writing, speaking, and 
        math skills, or are English learners;
            ``(4) the program is of sufficient intensity and duration 
        for participants to achieve substantial learning gains;
            ``(5) educational practices are evidence-based;
            ``(6) the activities of the eligible provider effectively 
        employ advances in technology, and delivery systems including 
        distance education;
            ``(7) the activities provide instruction in real-life 
        contexts, including integrated education and training when 
        appropriate, to ensure that an individual has the skills needed 
        to compete in the workplace and exercise the rights and 
        responsibilities of citizenship;
            ``(8) the activities are staffed by well-trained 
        instructors, counselors, and administrators who meet minimum 
        qualifications established by the State;
            ``(9) the activities are coordinated with other available 
        resources in the community, such as through strong links with 
        elementary schools and secondary schools, postsecondary 
        educational institutions, local workforce investment boards, 
        one-stop centers, job training programs, community-based and 
        faith-based organizations, and social service agencies;
            ``(10) the activities offer flexible schedules and support 
        services (such as child care and transportation) that are 
        necessary to enable individuals, including individuals with 
        disabilities or other special needs, to attend and complete 
        programs;
            ``(11) the activities include a high-quality information 
        management system that has the capacity to report measurable 
        participant outcomes (consistent with section 136) and to 
        monitor program performance;
            ``(12) the local communities have a demonstrated need for 
        additional English language acquisition programs, and 
        integrated education and training programs;
            ``(13) the capacity of the eligible provider to produce 
        valid information on performance results, including enrollments 
        and measurable participant outcomes;
            ``(14) adult education and family literacy education 
        programs offer rigorous reading, writing, speaking, and math 
        content that are evidence based; and
            ``(15) applications of technology, and services to be 
        provided by the eligible providers, are of sufficient intensity 
        and duration to increase the amount and quality of learning and 
        lead to measurable learning gains within specified time 
        periods.
    ``(e) Special Rule.--Eligible providers may use grant funds under 
this title to serve children participating in family literacy programs 
assisted under this part, provided that other sources of funds 
available to provide similar services for such children are used first.

``SEC. 232. LOCAL APPLICATION.

    ``Each eligible provider desiring a grant or contract under this 
title shall submit an application to the eligible agency containing 
such information and assurances as the eligible agency may require, 
including--
            ``(1) a description of how funds awarded under this title 
        will be spent consistent with the requirements of this title;
            ``(2) a description of any cooperative arrangements the 
        eligible provider has with other agencies, institutions, or 
        organizations for the delivery of adult education and family 
        literacy education programs; and
            ``(3) each of the demonstrations required by section 
        231(d).

``SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

    ``(a) In General.--Subject to subsection (b), of the amount that is 
made available under this title to an eligible provider--
            ``(1) at least 95 percent shall be expended for carrying 
        out adult education and family literacy education programs; and
            ``(2) the remaining amount shall be used for planning, 
        administration, personnel and professional development, 
        development of measurable goals in reading, writing, speaking, 
        and math, and interagency coordination.
    ``(b) Special Rule.--In cases where the cost limits described in 
subsection (a) are too restrictive to allow for adequate planning, 
administration, personnel development, and interagency coordination, 
the eligible provider may negotiate with the eligible agency in order 
to determine an adequate level of funds to be used for noninstructional 
purposes.

                    ``Subtitle D--GENERAL PROVISIONS

``SEC. 241. ADMINISTRATIVE PROVISIONS.

    ``Funds made available for adult education and family literacy 
education programs under this title shall supplement and not supplant 
other State or local public funds expended for adult education and 
family literacy education programs.

``SEC. 242. NATIONAL ACTIVITIES.

    ``The Secretary shall establish and carry out a program of national 
activities that may include the following:
            ``(1) Providing technical assistance to eligible entities, 
        on request, to--
                    ``(A) improve their fiscal management, research-
                based instruction, and reporting requirements to carry 
                out the requirements of this title;
                    ``(B) improve its performance on the core 
                indicators of performance described in section 136;
                    ``(C) provide adult education professional 
                development; and
                    ``(D) use distance education and improve the 
                application of technology in the classroom, including 
                instruction in English language acquisition for English 
                learners.
            ``(2) Providing for the conduct of research on national 
        literacy basic skill acquisition levels among adults, including 
        the number of adult English learners functioning at different 
        levels of reading proficiency.
            ``(3) Improving the coordination, efficiency, and 
        effectiveness of adult education and workforce development 
        services at the national, State, and local levels.
            ``(4) Determining how participation in adult education, 
        English language acquisition, and family literacy education 
        programs prepares individuals for entry into and success in 
        postsecondary education and employment, and in the case of 
        prison-based services, the effect on recidivism.
            ``(5) Evaluating how different types of providers, 
        including community and faith-based organizations or private 
        for-profit agencies measurably improve the skills of 
        participants in adult education, English language acquisition, 
        and family literacy education programs.
            ``(6) Identifying model integrated basic and workplace 
        skills education programs, including programs for English 
        learners coordinated literacy and employment services, and 
        effective strategies for serving adults with disabilities.
            ``(7) Initiating other activities designed to improve the 
        measurable quality and effectiveness of adult education, 
        English language acquisition, and family literacy education 
        programs nationwide.''.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

SEC. 301. AMENDMENTS TO THE WAGNER-PEYSER ACT.

    The Wagner-Peyser Act (29 U.S.C. 49 et seq.) is amended--
            (1) by striking sections 1 through 13;
            (2) in section 14 by inserting ``of Labor'' after 
        ``Secretary''; and
            (3) by amending section 15 to read as follows:

``SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.

    ``(a) System Content.--
            ``(1) In general.--The Secretary of Labor, in accordance 
        with the provisions of this section, shall oversee the 
        development, maintenance, and continuous improvement of a 
        nationwide workforce and labor market information system that 
        includes--
                    ``(A) statistical data from cooperative statistical 
                survey and projection programs and data from 
                administrative reporting systems that, taken together, 
                enumerate, estimate, and project employment 
                opportunities and conditions at national, State, and 
                local levels in a timely manner, including statistics 
                on--
                            ``(i) employment and unemployment status of 
                        national, State, and local populations, 
                        including self-employed, part-time, and 
                        seasonal workers;
                            ``(ii) industrial distribution of 
                        occupations, as well as current and projected 
                        employment opportunities, wages, benefits 
                        (where data is available), and skill trends by 
                        occupation and industry, with particular 
                        attention paid to State and local conditions;
                            ``(iii) the incidence of, industrial and 
                        geographical location of, and number of workers 
                        displaced by, permanent layoffs and plant 
                        closings; and
                            ``(iv) employment and earnings information 
                        maintained in a longitudinal manner to be used 
                        for research and program evaluation;
                    ``(B) information on State and local employment 
                opportunities, and other appropriate statistical data 
                related to labor market dynamics, which--
                            ``(i) shall be current and comprehensive;
                            ``(ii) shall meet the needs identified 
                        through the consultations described in 
                        subparagraphs (A) and (B) of subsection (e)(2); 
                        and
                            ``(iii) shall meet the needs for the 
                        information identified in section 121;
                    ``(C) technical standards (which the Secretary 
                shall publish annually) for data and information 
                described in subparagraphs (A) and (B) that, at a 
                minimum, meet the criteria of chapter 35 of title 44, 
                United States Code;
                    ``(D) procedures to ensure compatibility and 
                additivity of the data and information described in 
                subparagraphs (A) and (B) from national, State, and 
                local levels;
                    ``(E) procedures to support standardization and 
                aggregation of data from administrative reporting 
                systems described in subparagraph (A) of employment-
                related programs;
                    ``(F) analysis of data and information described in 
                subparagraphs (A) and (B) for uses such as--
                            ``(i) national, State, and local 
                        policymaking;
                            ``(ii) implementation of Federal policies 
                        (including allocation formulas);
                            ``(iii) program planning and evaluation; 
                        and
                            ``(iv) researching labor market dynamics;
                    ``(G) wide dissemination of such data, information, 
                and analysis in a user-friendly manner and voluntary 
                technical standards for dissemination mechanisms; and
                    ``(H) programs of--
                            ``(i) training for effective data 
                        dissemination;
                            ``(ii) research and demonstration; and
                            ``(iii) programs and technical assistance.
            ``(2) Information to be confidential.--
                    ``(A) In general.--No officer or employee of the 
                Federal Government or agent of the Federal Government 
                may--
                            ``(i) use any submission that is furnished 
                        for exclusively statistical purposes under the 
                        provisions of this section for any purpose 
                        other than the statistical purposes for which 
                        the submission is furnished;
                            ``(ii) disclose to the public any 
                        publication or media transmittal of the data 
                        contained in the submission described in clause 
                        (i) that permits information concerning an 
                        individual subject to be reasonably inferred by 
                        either direct or indirect means; or
                            ``(iii) permit anyone other than a sworn 
                        officer, employee, or agent of any Federal 
                        department or agency, or a contractor 
                        (including an employee of a contractor) of such 
                        department or agency, to examine an individual 
                        submission described in clause (i),
                without the consent of the individual, agency, or other 
                person who is the subject of the submission or provides 
                that submission.
                    ``(B) Immunity from legal process.--Any submission 
                (including any data derived from the submission) that 
                is collected and retained by a Federal department or 
                agency, or an officer, employee, agent, or contractor 
                of such a department or agency, for exclusively 
                statistical purposes under this section shall be immune 
                from the legal process and shall not, without the 
                consent of the individual, agency, or other person who 
                is the subject of the submission or provides that 
                submission, be admitted as evidence or used for any 
                purpose in any action, suit, or other judicial or 
                administrative proceeding.
                    ``(C) Rule of construction.--Nothing in this 
                section shall be construed to provide immunity from the 
                legal process for such submission (including any data 
                derived from the submission) if the submission is in 
                the possession of any person, agency, or entity other 
                than the Federal Government or an officer, employee, 
                agent, or contractor of the Federal Government, or if 
                the submission is independently collected, retained, or 
                produced for purposes other than the purposes of this 
                Act.
    ``(b) System Responsibilities.--
            ``(1) In general.--The workforce and labor market 
        information system described in subsection (a) shall be 
        planned, administered, overseen, and evaluated through a 
        cooperative governance structure involving the Federal 
        Government and States.
            ``(2) Duties.--The Secretary, with respect to data 
        collection, analysis, and dissemination of workforce and labor 
        market information for the system, shall carry out the 
        following duties:
                    ``(A) Assign responsibilities within the Department 
                of Labor for elements of the workforce and labor market 
                information system described in subsection (a) to 
                ensure that all statistical and administrative data 
                collected is consistent with appropriate Bureau of 
                Labor Statistics standards and definitions.
                    ``(B) Actively seek the cooperation of other 
                Federal agencies to establish and maintain mechanisms 
                for ensuring complementarity and nonduplication in the 
                development and operation of statistical and 
                administrative data collection activities.
                    ``(C) Eliminate gaps and duplication in statistical 
                undertakings, with the systemization of wage surveys as 
                an early priority.
                    ``(D) In collaboration with the Bureau of Labor 
                Statistics and States, develop and maintain the 
                elements of the workforce and labor market information 
                system described in subsection (a), including the 
                development of consistent procedures and definitions 
                for use by the States in collecting the data and 
                information described in subparagraphs (A) and (B) of 
                subsection (a)(1).
                    ``(E) Establish procedures for the system to ensure 
                that--
                            ``(i) such data and information are timely;
                            ``(ii) paperwork and reporting for the 
                        system are reduced to a minimum; and
                            ``(iii) States and localities are fully 
                        involved in the development and continuous 
                        improvement of the system at all levels.
    ``(c) National Electronic Tools To Provide Services.--The Secretary 
is authorized to assist in the development of national electronic tools 
that may be used to facilitate the delivery of work ready services 
described in section 134(c)(2) and to provide workforce information to 
individuals through the one-stop delivery systems described in section 
121 and through other appropriate delivery systems.
    ``(d) Coordination With the States.--
            ``(1) In general.--The Secretary, working through the 
        Bureau of Labor Statistics and the Employment and Training 
        Administration, shall regularly consult with representatives of 
        State agencies carrying out workforce information activities 
        regarding strategies for improving the workforce and labor 
        market information system.
            ``(2) Formal consultations.--At least twice each year, the 
        Secretary, working through the Bureau of Labor Statistics, 
        shall conduct formal consultations regarding programs carried 
        out by the Bureau of Labor Statistics with representatives of 
        each of the Federal regions of the Bureau of Labor Statistics, 
        elected (pursuant to a process established by the Secretary) 
        from the State directors affiliated with State agencies that 
        perform the duties described in subsection (e)(2).
    ``(e) State Responsibilities.--
            ``(1) In general.--In order to receive Federal financial 
        assistance under this section, the Governor of a State shall--
                    ``(A) be responsible for the management of the 
                portions of the workforce and labor market information 
                system described in subsection (a) that comprise a 
                statewide workforce and labor market information system 
                and for the State's participation in the development of 
                the annual plan;
                    ``(B) establish a process for the oversight of such 
                system;
                    ``(C) consult with State and local employers, 
                participants, and local workforce investment boards 
                about the labor market relevance of the data to be 
                collected and disseminated through the statewide 
                workforce and labor market information system;
                    ``(D) consult with State educational agencies and 
                local educational agencies concerning the provision of 
                employment statistics in order to meet the needs of 
                secondary school and postsecondary school students who 
                seek such information;
                    ``(E) collect and disseminate for the system, on 
                behalf of the State and localities in the State, the 
                information and data described in subparagraphs (A) and 
                (B) of subsection (a)(1);
                    ``(F) maintain and continuously improve the 
                statewide workforce and labor market information system 
                in accordance with this section;
                    ``(G) perform contract and grant responsibilities 
                for data collection, analysis, and dissemination for 
                such system;
                    ``(H) conduct such other data collection, analysis, 
                and dissemination activities as will ensure an 
                effective statewide workforce and labor market 
                information system;
                    ``(I) actively seek the participation of other 
                State and local agencies in data collection, analysis, 
                and dissemination activities in order to ensure 
                complementarity, compatibility, and usefulness of data;
                    ``(J) participate in the development of the annual 
                plan described in subsection (c); and
                    ``(K) utilize the quarterly records described in 
                section 136(f)(2) to assist the State and other States 
                in measuring State progress on State performance 
                measures.
            ``(2) Rule of construction.--Nothing in this section shall 
        be construed as limiting the ability of a Governor to conduct 
        additional data collection, analysis, and dissemination 
        activities with State funds or with Federal funds from sources 
        other than this section.
    ``(f) Nonduplication Requirement.--None of the functions and 
activities carried out pursuant to this section shall duplicate the 
functions and activities carried out under the Carl D. Perkins Career 
and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $63,473,000 for fiscal year 2013 
and each of the 5 succeeding fiscal years.
    ``(h) Definition.--In this section, the term `local area' means the 
smallest geographical area for which data can be produced with 
statistical reliability.''.

              TITLE IV--REPEALS AND CONFORMING AMENDMENTS

SEC. 401. REPEALS.

    The following provisions are repealed:
            (1) Chapter 4 of subtitle B of title I, subtitle C of title 
        I, and sections 166, 167, 168, 169, 171, 173A, 174, 192, 502, 
        503, and 506 of the Workforce Investment Act of 1998.
            (2) Title V of the Older Americans Act of 1965.
            (3) Sections 1 through 13 of the Wagner-Peyser Act of 1933.
            (4) Section 428 of the H-1B Visa Reform Act of 2004.
            (5) Youth Conservation Corps Act of 1970 (16 U.S.C. 1701 et 
        seq.).
            (6) Section 1151 of title 20, United States Code (Grants to 
        States for workplace and community transition training for 
        incarcerated individuals).
            (7) Section 412 of the Immigration and Nationality Act (8 
        U.S.C. 1522) and section 501(a) of the Refugee Education 
        Assistance Act of 1980 (94 Stat. 1809; 8 U.S.C. 1522 note).
            (8) Section 231 of the Second Chance Act of 2007 (Public 
        Law 110-199).
            (9) Chapter 27 of title 29, United States Code (Women in 
        Apprenticeship and Nontraditional Occupations).

SEC. 402. AMENDMENT TO THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, 
              COMPENSATION, AND LIABILITY ACT OF 1980.

    Section 104(k)(6) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9604) is amended by 
striking ``, training,''.

SEC. 403. AMENDMENTS TO THE FOOD AND NUTRITION ACT OF 2008.

    (a) Definition.--Section 3(t) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2012(t)) is amended--
            (1) by striking ``and (2)'' and inserting ``(2)'', and
            (2) by inserting before the period at the end the 
        following:
``, and (3) when referencing employment and training activities under 
section 6(d)(4), a State board as defined in section 101 of the 
Workforce Investment Act of 1998 (29 U.S.C. 2801)''.
    (b) Eligible Households.--Section 5 of the Food and Nutrition Act 
of 2008 (7 U.S.C. 2014) is amended--
            (1) in subsection (d)(14) by striking ``section (d)(4)(I)'' 
        and inserting ``section (d)(4)(C)'', and
            (2) in subsection (g)(3) by striking ``constituting 
        adequate participation in an employment and training program 
        under section 6(d)'' and inserting ``allows the individual to 
        participate in employment and training activities under section 
        6(d)(4)''.
    (c) Eligibility Disqualifications.--Section 6(d)(4) of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)) is amended to read as 
follows:
            ``(4) Employment and training.--
                    ``(A) Implementation.--Each State agency shall 
                provide employment and training services authorized 
                under section 134 of the Workforce Investment Act of 
                1998 (29 U.S.C. 2864) to eligible members of households 
                participating in the supplemental nutrition assistance 
                program in gaining skills, training, work, or 
                experience that will increase their ability to obtain 
                regular employment.
                    ``(B) Statewide workforce development system.--
                Consistent with subparagraph (A), employment and 
                training services shall be provided through the 
                statewide workforce development system, including the 
                One-Stop delivery system, authorized by the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801 et seq.).
                    ``(C) Reimbursements.--
                            ``(i) Actual costs.--The State agency may 
                        provide payments or reimbursement to 
                        participants served under this paragraph for--
                                    ``(I) the actual costs of 
                                transportation and other actual costs 
                                (other than dependent care costs) that 
                                are reasonably necessary and directly 
                                related to the individual participating 
                                in employment and training activities; 
                                and
                                    ``(II) the actual costs of such 
                                dependent care expenses that are 
                                determined by the State agency to be 
                                necessary for the individual to 
                                participate in employment and training 
                                activities (other than an individual 
                                who is the caretaker relative of a 
                                dependent in a family receiving 
                                benefits under part A of title IV of 
                                the Social Security Act (42 U.S.C. 601 
                                et seq.) in a local area where an 
                                employment, training, or education 
                                program under title IV of such Act is 
                                in operation), except that no such 
                                payment or reimbursement shall exceed 
                                the applicable local market rate.
                            ``(ii) Service contracts and vouchers.--In 
                        lieu of providing reimbursements or payments 
                        for dependent care expenses under clause (i), a 
                        State agency may, at its option, arrange for 
                        dependent care through providers by the use of 
                        purchase of service contracts or vouchers or by 
                        providing vouchers to the household.
                            ``(iii) Value of reimbursements.--The value 
                        of any dependent care services provided for or 
                        arranged under clause (ii), or any amount 
                        received as a payment or reimbursement under 
                        clause (i), shall--
                                    ``(I) not be treated as income for 
                                the purposes of any other Federal or 
                                federally assisted program that bases 
                                eligibility for, or the amount of 
                                benefits on, need; and
                                    ``(II) not be claimed as an 
                                employment-related expense for the 
                                purposes of the credit provided under 
                                section 21 of the Internal Revenue Code 
                                of 1986 (26 U.S.C. 21).''.
    (d) Administration.--Section 11(e)(19) of the Food and Nutrition 
Act of 2008 (7 U.S.C. 2020(e)(11) is amended to read as follows:
    ``(19) the plans of the State agency for providing employment and 
training services under section 6(d)(4);''.
    (e) Administrative Cost-Sharing and Quality Control.--Section 16(h) 
of the Food and Nutrition Act of 2008 (7 U.S.C. 2025) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A) by striking ``carry out 
                employment and training programs'' and inserting 
                ``provide employment and training services to eligible 
                households under section 6(d)(4)'', and
                    (B) in subparagraph (D) by striking ``operating an 
                employment and training program'' and inserting 
                ``providing employment and training services consistent 
                with section 6(d)(4)'',
            (2) in paragraph (3) by striking ``related to participation 
        in an employment and training program'' and inserting ``the 
        individual participating in employment and training 
        activities'',
            (3) in paragraph (4) by striking ``for operating an 
        employment and training program'' and inserting ``to provide 
        employment and training services'', and
            (4) by amending paragraph (5) to read as follows:
            ``(5) Monitoring.--The Secretary, in conjunction with the 
        Secretary of Labor, shall monitor each State agency responsible 
        for administering employment and training services under 
        section 6(d)(4) to ensure funds are being spent effectively and 
        efficiently. Each program of employment and training receiving 
        funds under section 6(d)(4) shall be subject to the 
        requirements of the performance accountability system, 
        including having to meet the state performance measures 
        included in section 136 of the Workforce Investment Act (29 
        U.S.C. 2871).''.
    (f) Research, Demonstration, and Evaluations.--Section 17 of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2026) is amended--
            (1) in subsection (b) by striking paragraph (3), and
            (2) in subsection (g)--
                    (A) by inserting ``, in conjunction with the 
                Secretary of Labor,'' after ``Secretary'', and
                    (B) by striking ``programs established'' and 
                inserting ``activities provided to eligible 
                households''.
    (g) Minnesota Family Investment Project.--Section 22(b)(4) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2031(b)(4)) is amended by 
striking ``equivalent to those offered under the employment and 
training program''.

SEC. 404. CONFORMING AMENDMENT TO TABLE OF CONTENTS.

    The table of contents in section 1(b) is amended to read as 
follows:

``Sec. 1. Short title; table of contents.
                ``TITLE I--WORKFORCE INVESTMENT SYSTEMS

             ``Subtitle A--Workforce Investment Definitions

``Sec. 101. Definitions.
     ``Subtitle B--Statewide and Local Workforce Investment Systems

``Sec. 106. Purpose.
                     ``Chapter 1--State Provisions

``Sec. 111. State workforce investment boards.
``Sec. 112. State plan.
                     ``Chapter 2--Local Provisions

``Sec. 116. Local workforce investment areas.
``Sec. 117. Local workforce investment boards.
``Sec. 118. Local plan.
         ``Chapter 3--Workforce Investment Activities Providers

``Sec. 121. Establishment of one-stop delivery systems.
``Sec. 122. Identification of eligible providers of training services.
``Sec. 123. [Repealed].
                        ``Chapter 4--[Repealed]

            ``Chapter 5--Employment and Training Activities

``Sec. 131. General authorization.
``Sec. 132. State allotments.
``Sec. 133. Within State allocations.
``Sec. 134. Use of funds for employment and training activities.
                    ``Chapter 6--General Provisions

``Sec. 136. Performance accountability system.
``Sec. 137. Authorization of appropriations.
                        ``Subtitle C--[Repealed]

                    ``Subtitle D--National Programs

``Sec. 166. [Repealed]
``Sec. 167. [Repealed]
``Sec. 168. [Repealed]
``Sec. 169. [Repealed]
``Sec. 170. Technical assistance.
``Sec. 171. [Repealed]
``Sec. 172. Evaluations.
``Sec. 173. National emergency grants.
``Sec. 173A. [Repealed]
``Sec. 174. [Repealed]
                      ``Subtitle E--Administration

``Sec. 181. Requirements and restrictions.
``Sec. 182. Prompt allocation of funds.
``Sec. 183. Monitoring.
``Sec. 184. Fiscal controls; sanctions.
``Sec. 185. Reports; recordkeeping; investigations.
``Sec. 186. Administrative adjudication.
``Sec. 187. Judicial review.
``Sec. 188. Nondiscrimination.
``Sec. 189. Administrative provisions.
``Sec. 190. References.
``Sec. 191. State legislative authority.
``Sec. 192. [Repealed].
``Sec. 193. Use of certain real property.
``Sec. 194. Continuation of State activities and policies.
``Sec. 195. General program requirements.
            ``Subtitle F--Repeals and Conforming Amendments

``Sec. 199. Repeals.
``Sec. 199A. Conforming amendments.
       ``TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

``Sec. 201. Short title.
``Sec. 202. Purpose.
``Sec. 203. Definitions.
``Sec. 204. Home schools.
``Sec. 205. Authorization of appropriations.
                    ``Subtitle A--FEDERAL PROVISIONS

``Sec. 211. Reservation of funds; grants to eligible agencies; 
                            allotments.
``Sec. 212. Performance accountability system.
                     ``Subtitle B--STATE PROVISIONS

``Sec. 221. State administration.
``Sec. 222. State distribution of funds; matching requirement.
``Sec. 223. State leadership activities.
``Sec. 224. State plan.
``Sec. 225. Programs for corrections education and other 
                            institutionalized individuals.
                     ``Subtitle C--LOCAL PROVISIONS

``Sec. 231. Grants and contracts for eligible providers.
``Sec. 232. Local application.
``Sec. 233. Local administrative cost limits.
                    ``Subtitle D--GENERAL PROVISIONS

``Sec. 241. Administrative provisions.
``Sec. 242. National activities.
          ``TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                    ``Subtitle A--Wagner-Peyser Act

``Sec. 301. Definitions.
``Sec. 302. Functions.
``Sec. 303. Designation of State agencies.
``Sec. 304. Appropriations.
``Sec. 305. Disposition of allotted funds.
``Sec. 306. State plans.
``Sec. 307. Repeal of Federal advisory council.
``Sec. 308. Regulations.
``Sec. 309. Employment statistics.
``Sec. 310. Technical amendments.
``Sec. 311. Effective date.
               ``Subtitle B--Linkages With Other Programs

``Sec. 321. Trade Act of 1974.
``Sec. 322. Veterans' employment programs.
``Sec. 323. Older Americans Act of 1965.
        ``Subtitle C--Twenty-First Century Workforce Commission

``Sec. 331. Short title.
``Sec. 332. Findings.
``Sec. 333. Definitions.
``Sec. 334. Establishment of Twenty-First Century Workforce Commission.
``Sec. 335. Duties of the Commission.
``Sec. 336. Powers of the Commission.
``Sec. 337. Commission personnel matters.
``Sec. 338. Termination of the Commission.
``Sec. 339. Authorization of appropriations.
``Subtitle D--Application of Civil Rights and Labor-Management Laws to 
                      the Smithsonian Institution

``Sec. 341. Application of civil rights and labor-management laws to 
                            the Smithsonian Institution.
           ``TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998

``Sec. 401. Short title.
``Sec. 402. Title.
``Sec. 403. General provisions.
``Sec. 404. Vocational rehabilitation services.
``Sec. 405. Research and training.
``Sec. 406. Professional development and special projects and 
                            demonstrations.
``Sec. 407. National Council on Disability.
``Sec. 408. Rights and advocacy.
``Sec. 409. Employment opportunities for individuals with disabilities.
``Sec. 410. Independent living services and centers for independent 
                            living.
``Sec. 411. Repeal.
``Sec. 412. Helen Keller National Center Act.
``Sec. 413. President's Committee on Employment of People With 
                            Disabilities.
``Sec. 414. Conforming amendments.
                     ``TITLE V--GENERAL PROVISIONS

``Sec. 501. State unified plan.
``Sec. 502. [Repealed]
``Sec. 503. [Repealed]
``Sec. 504. Privacy.
``Sec. 505. Buy-American requirements.
``Sec. 506. [Repealed]
``Sec. 507. Effective date.''.

         TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973

SEC. 501. FINDINGS.

    Section 2(a) of the Rehabilitation Act of 1973 (29 U.S.C. 701(a)) 
is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(7) there is a substantial need to improve and expand 
        services for students with disabilities under this Act.''.

SEC. 502. REHABILITATION SERVICES ADMINISTRATION.

    (a) Rehabilitation Services Administration.--The Rehabilitation Act 
of 1973 (29 U.S.C. 701 et seq.) is amended--
            (1) in section 3(a) (29 U.S.C. 702(a))--
                    (A) by striking ``Office of the Secretary'' and 
                inserting ``Department of Education'';
                    (B) by striking ``President by and with the advice 
                and consent of the Senate'' and inserting 
                ``Secretary''; and
                    (C) by striking ``, and the Commissioner shall be 
                the principal officer,'';
            (2) by striking ``Commissioner'' each place it appears 
        (except in section 21) and inserting ``Director'';
            (3) in the heading for subparagraph (B) of section 
        100(d)(2), by striking ``commissioner'' and inserting 
        ``director'';
            (4) in the heading for section 706, by striking 
        ``commissioner'' and inserting ``director'';
            (5) in the heading for paragraph (3) of section 723(a), by 
        striking ``commissioner'' and inserting ``director''; and
            (6) in section 21 (29 U.S.C. 718)--
                    (A) in subsection (b)(1)--
                            (i) by striking ``Commissioner'' the first 
                        place it appears and inserting ``Director of 
                        the Rehabilitation Services Administration''; 
                        and
                            (ii) by striking ``(referred to in this 
                        subsection as the `Director')'';
                    (B) by striking ``the Commissioner and the 
                Director'' each place it appears and inserting ``both 
                such Directors''; and
                    (C) by striking ``The Commissioner and the 
                Director'' and inserting ``Both such Directors''.
    (b) Effective Date; Application.--The amendments made by subsection 
(a) shall--
            (1) take effect on the date of the enactment of this Act; 
        and
            (2) apply with respect to the appointments of Directors of 
        the Rehabilitation Services Administration made on or after the 
        date of enactment of this Act, and the Directors so appointed.

SEC. 503. DEFINITIONS.

    Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705) is 
amended--
            (1) by redesignating paragraphs (35) through (39) as 
        paragraphs (36) through (40), respectively;
            (2) in subparagraph (A)(ii) of paragraph (36) (as 
        redesignated by paragraph (1)), by striking ``paragraph 
        (36)(C)'' and inserting ``paragraph (37)(C)''; and
            (3) by inserting after paragraph (34) the following:
            ``(35)(A) The term `student with a disability' means an 
        individual with a disability who--
                            ``(i) is not younger than 16 and not older 
                        than 21;
                            ``(ii) has been determined to be eligible 
                        under section 102(a) for assistance under this 
                        title; and
                            ``(iii)(I) is eligible for, and is 
                        receiving, special education under part B of 
                        the Individuals with Disabilities Education Act 
                        (20 U.S.C. 1411 et seq.); or
                            ``(II) is an individual with a disability, 
                        for purposes of section 504.
            ``(B) The term `students with disabilities' means more than 
        1 student with a disability.''.

SEC. 504. STATE PLAN.

    Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) 
is amended--
            (1) in paragraph (11)--
                    (A) in subparagraph (D)(i), by inserting before the 
                semicolon the following: ``, which may be provided 
                using alternative means of meeting participation (such 
                as video conferences and conference calls)''; and
                    (B) by adding at the end the following:
                    ``(G) Coordination with assistive technology 
                programs.--The State plan shall include an assurance 
                that the designated State unit and the lead agency 
                responsible for carrying out duties under the Assistive 
                Technology Act of 1998 (29 U.S.C. 3001 et seq.) have 
                developed working relationships and coordinate their 
                activities.'';
            (2) in paragraph (15)--
                    (A) in subparagraph (A)--
                            (i) in clause (i)--
                                    (I) in subclause (II), by striking 
                                ``and'' at the end;
                                    (II) in subclause (III), by adding 
                                ``and'' at the end; and
                                    (III) by adding at the end the 
                                following:
                                    ``(IV) students with disabilities, 
                                including their need for transition 
                                services;'';
                            (ii) by redesignating clauses (ii) and 
                        (iii) as clauses (iii) and (iv), respectively; 
                        and
                            (iii) by inserting after clause (i) the 
                        following:
                            ``(ii) include an assessment of the 
                        transition services provided under this Act, 
                        and coordinated with transition services under 
                        the Individuals with Disabilities Education 
                        Act, as to those services meeting the needs of 
                        individuals with disabilities;''; and
                    (B) in subparagraph (D)--
                            (i) by redesignating clauses (iii), (iv), 
                        and (v) as clauses (iv), (v), and (vi), 
                        respectively; and
                            (ii) by inserting after clause (ii) the 
                        following:
                            ``(iii) the methods to be used to improve 
                        and expand vocational rehabilitation services 
                        for students with disabilities, including the 
                        coordination of services designed to facilitate 
                        the transition of such students from the 
                        receipt of educational services in school to 
                        the receipt of vocational rehabilitation 
                        services under this title or to postsecondary 
                        education or employment;'';
            (3) in paragraph (22)--
                    (A) by striking ``carrying out part B of title VI, 
                including''; and
                    (B) by striking ``that part to supplement funds 
                made available under part B of'';
            (4) in paragraph (24)(A), by striking ``part A of title 
        VI'' and inserting ``section 109A''; and
            (5) by adding at the end the following:
            ``(25) Collaboration with industry.--The State plan shall 
        describe how the designated State agency will carry out the 
        provisions of section 109A, including--
                    ``(A) the criteria such agency will use to award 
                grants under such section; and
                    ``(B) how the activities carried out under such 
                grants will be coordinated with other services provided 
                under this title.
            ``(26) Services for students with disabilities.--The State 
        plan shall provide an assurance satisfactory to the Secretary 
        that the State--
                    ``(A) has developed and implemented strategies to 
                address the needs identified in the assessment 
                described in paragraph (15), and achieve the goals and 
                priorities identified by the State, to improve and 
                expand vocational rehabilitation services for students 
                with disabilities on a statewide basis in accordance 
                with paragraph (15); and
                    ``(B) from funds reserved under section 110A, shall 
                carry out programs or activities designed to improve 
                and expand vocational rehabilitation services for 
                students with disabilities that--
                            ``(i) facilitate the transition of students 
                        with disabilities from the receipt of 
                        educational services in school, to the receipt 
                        of vocational rehabilitation services under 
                        this title, including, at a minimum, those 
                        services specified in the interagency agreement 
                        required in paragraph (11)(D);
                            ``(ii) improve the achievement of post-
                        school goals of students with disabilities, 
                        including improving the achievement through 
                        participation (as appropriate when career goals 
                        are discussed) in meetings regarding 
                        individualized education programs developed 
                        under section 614 of the Individuals with 
                        Disabilities Education Act (20 U.S.C. 1414);
                            ``(iii) provide career guidance, career 
                        exploration services, job search skills and 
                        strategies, and technical assistance to 
                        students with disabilities;
                            ``(iv) support the provision of training 
                        and technical assistance to State and local 
                        educational agencies and designated State 
                        agency personnel responsible for the planning 
                        and provision of services to students with 
                        disabilities; and
                            ``(v) support outreach activities to 
                        students with disabilities who are eligible 
                        for, and need, services under this title.''.

SEC. 505. SCOPE OF SERVICES.

    Section 103 of the Rehabilitation Act of 1973 (29 U.S.C. 723) is 
amended--
            (1) in subsection (a), by striking paragraph (15) and 
        inserting the following:
            ``(15) transition services for students with disabilities, 
        that facilitate the achievement of the employment outcome 
        identified in the individualized plan for employment, including 
        services described in clauses (i) through (iii) of section 
        101(a)(26)(B);'';
            (2) in subsection (b), by striking paragraph (6) and 
        inserting the following:
            ``(6)(A)(i) Consultation and technical assistance services 
        to assist State and local educational agencies in planning for 
        the transition of students with disabilities from school to 
        post-school activities, including employment.
            ``(ii) Training and technical assistance described in 
        section 101(a)(26)(B)(iv).
            ``(B) Services for groups of individuals with disabilities 
        who meet the requirements of clauses (i) and (iii) of section 
        7(35)(A), including services described in clauses (i), (ii), 
        (iii), and (v) of section 101(a)(26)(B), to assist in the 
        transition from school to post-school activities.''; and
            (3) in subsection (b) by inserting at the end, the 
        following:
            ``(7) The establishment, development, or improvement of 
        assistive technology demonstration, loan, reutilization, or 
        financing programs in coordination with activities authorized 
        under the Assistive Technology Act of 1998 (29 U.S.C. 3001) to 
        promote access to assistive technology for individuals with 
        disabilities and employers.''.

SEC. 506. STANDARDS AND INDICATORS.

    Section 106(a) of the Rehabilitation Act of 1973 (29 U.S.C. 726(a)) 
is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Standards and Indicators.--The performance standards and 
indicators for the vocational rehabilitation program carried out under 
this title--
            ``(1) shall be subject to paragraphs (2)(A) and (3) of 
        section 136(b) of the Workforce Investment Act of 1998; and
            ``(2) may, at a State's discretion, include additional 
        indicators identified in the State plan submitted under section 
        101.''; and
            (2) in subsection (b)(2)(B), by striking clause (i) and 
        inserting the following:
                            ``(i) on a biannual basis, review the 
                        program improvement efforts of the State and, 
                        if the State has not improved its performance 
                        to acceptable levels, as determined by the 
                        Director, direct the State to make revisions to 
                        the plan to improve performance; and''.

SEC. 507. COLLABORATION WITH INDUSTRY.

    The Rehabilitation Act of 1973 is amended by inserting after 
section 109 (29 U.S.C. 729) the following:

``SEC. 109A. COLLABORATION WITH INDUSTRY.

    ``(a) Authority.--A State shall use not less than one-half of one 
percent of the payment the State receives under section 111 for a 
fiscal year to award grants to eligible entities to create practical 
job and career readiness and training programs, and to provide job 
placements and career advancement.
    ``(b) Application.--To receive a grant under this section, an 
eligible entity shall submit an application to a designated State 
agency at such time, in such manner, and containing such information as 
such agency shall require. Such application shall include, at a 
minimum--
            ``(1) a plan for evaluating the effectiveness of the 
        program;
            ``(2) a plan for collecting and reporting the data and 
        information described under subparagraphs (A) through (C) of 
        section 101(a)(10), as determined appropriate by the designated 
        State agency; and
            ``(3) a plan for providing for the non-Federal share of the 
        costs of the program.
    ``(c) Activities.--An eligible entity receiving a grant under this 
section shall use the grant funds to carry out a program that provides 
one or more of the following:
            ``(1) Job development, job placement, and career 
        advancement services for individuals with disabilities.
            ``(2) Training in realistic work settings in order to 
        prepare individuals with disabilities for employment and career 
        advancement in the competitive market.
            ``(3) Providing individuals with disabilities with such 
        support services as may be required in order to maintain the 
        employment and career advancement for which the individuals 
        have received training.
    ``(d) Awards.--Grants under this section shall--
            ``(1) be awarded for a period not to exceed 5 years; and
            ``(2) be awarded competitively.
    ``(e) Eligible Entity Defined.--For the purposes of this section, 
the term `eligible entity' means a for-profit business, alone or in 
partnership with one or more of the following:
            ``(1) Community rehabilitation providers.
            ``(2) Indian tribes.
            ``(3) Tribal organizations.
    ``(f) Federal Share.--The Federal share of a program under this 
section shall not exceed 80 percent of the costs of the program.
    ``(g) Eligibility for Services.--An individual shall be eligible 
for services provided under a program under this section if the 
individual is determined under section 102(a)(1) to be eligible for 
assistance under this title.''.

SEC. 508. RESERVATION FOR EXPANDED TRANSITION SERVICES.

    The Rehabilitation Act of 1973 is amended by inserting after 
section 110 (29 U.S.C. 730) the following:

``SEC. 110A. RESERVATION FOR EXPANDED TRANSITION SERVICES.

    ``Each State shall reserve not less than 10 percent of the funds 
allotted to the State under section 110(a) to carry out programs and 
activities under sections 101(a)(26)(B) and 103(b)(6).''.

SEC. 509. CLIENT ASSISTANCE PROGRAM.

    Section 112(e)(1) of the Rehabilitation Act of 1973 (29 U.S.C. 
732(e)(1)) is amended by redesignating subparagraph (D) as subparagraph 
(E) and inserting after subparagraph (C) the following:
                    ``(D) The Secretary shall make grants to the 
                protection and advocacy system serving the American 
                Indian Consortium to provide services in accordance 
                with this section. The amount of such grants shall be 
                the same as provided to territories under this 
                subsection.''.

SEC. 510. TITLE III REPEALS.

    Title III of the Rehabilitation Act of 1973 (29 U.S.C. 771 et seq.) 
is amended--
            (1) in section 301(a)--
                    (A) in paragraph (2), by inserting ``and'' at the 
                end;
                    (B) by striking paragraphs (3) and (4); and
                    (C) by redesignating paragraph (5) as paragraph 
                (3);
            (2) in section 302(g)--
                    (A) in the heading, by striking ``and in-service 
                training''; and
                    (B) by striking paragraph (3);
            (3) by striking sections 304 and 305; and
            (4) by redesignating section 306 as section 304.

SEC. 511. REPEAL OF TITLE VI.

    The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended 
by repealing title VI.

SEC. 512. CHAIRPERSON.

    Section 705(b)(5) of the Rehabilitation Act of 1973 (29 U.S.C. 
796d(b)(5)) is amended to read as follows:
            ``(5) Chairperson.--The Council shall select a chairperson 
        from among the voting membership of the Council.''.

SEC. 513. AUTHORIZATIONS OF APPROPRIATIONS.

    The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is further 
amended--
            (1) in section 100(b)(1) (29 U.S.C. 720(b)(1)), by striking 
        ``such sums as may be necessary for fiscal years 1999 through 
        2003'' and inserting ``$3,121,712,000 for fiscal year 2013 and 
        each of the 5 succeeding fiscal years'';
            (2) in section 110(c) (29 U.S.C. 730(c)), by amending 
        paragraph (2) to read as follows:
            ``(2) The sum referred to in paragraph (1) shall be, as 
        determined by the Secretary, not less than 1 percent and not 
        more than 1.5 percent of the amount referred to in paragraph 
        (1) for each of fiscal years 2013 through 2018.'';
            (3) in section 112(h) (29 U.S.C. 732(h)) by striking ``such 
        sums as may be necessary for fiscal years 1999 through 2003'' 
        and inserting ``$12,240,000 for fiscal year 2013 and each of 
        the 5 succeeding fiscal years'';
            (4) by amending subsection (a) of section 201 (29 U.S.C. 
        761(a)) to read as follows:
    ``(a) There are authorized to be appropriated $108,817,000 for 
fiscal year 2013 and each of the 5 succeeding fiscal years to carry out 
this title.'';
            (5) in section 302(i) (29 U.S.C. 772(i)) by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$35,515,000 for fiscal year 2013 
        and each of the 5 succeeding fiscal years'';
            (6) in section 303(e) (29 U.S.C. 773(e)) by striking ``such 
        sums as may be necessary for fiscal years 1999 through 2003'' 
        and inserting ``$5,325,000 for fiscal year 2013 and each of the 
        5 succeeding fiscal years'';
            (7) in section 405 (29 U.S.C. 785) by striking ``such sums 
        as may be necessary for each of the fiscal years 1999 through 
        2003'' and inserting ``$3,258,000 for fiscal year 2013 and each 
        of the 5 succeeding fiscal years'';
            (8) in section 502(j) (29 U.S.C. 792(j)) by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$7,400,000 for fiscal year 2013 
        and each of the 5 succeeding fiscal years'';
            (9) in section 509(l) (29 U.S.C. 794e(l)) by striking 
        ``such sums as may be necessary for each of the fiscal years 
        1999 through 2003'' and inserting ``$18,031,000 for fiscal year 
        2013 and each of the 5 succeeding fiscal years'';
            (10) in section 714 (29 U.S.C. 796e-3), by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$23,359,000 for fiscal year 2013 
        and each of the 5 succeeding fiscal years'';
            (11) in section 727 (29 U.S.C. 796f-6), by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$79,953,000 for fiscal year 2013 
        and each of the 5 succeeding fiscal years''; and
            (12) in section 753 (29 U.S.C. 7961), by striking ``such 
        sums as may be necessary for each of the fiscal years 1999 
        through 2003'' and inserting ``$34,018,000 for fiscal year 2013 
        and each of the 5 succeeding fiscal years''.

SEC. 514. CONFORMING AMENDMENTS.

    Section 1(b) of the Rehabilitation Act of 1973 is amended--
            (1) by inserting after the item relating to section 109 the 
        following:

``Sec. 109A. Collaboration with industry.'';
            (2) by inserting after the item relating to section 110 the 
        following:

``Sec. 110A. Reservation for expanded transition services.'';
            (3) by striking the item related to section 304 and 
        inserting the following:

``Sec. 304. Measuring of project outcomes and performance.'';
            (4) by striking the items related to sections 305 and 306; 
        and
            (5) by striking the items related to title VI.
                                 <all>
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