I 

109TH CONGRESS 

1ST SESSION H. R. 27 

To enhance the workforce investment system of the Nation by strengthening 

one-stop career centers, providing for more effective governance arrangements, promoting access to a more comprehensive array of employment, 

training, and related services, establishing a targeted approach to serving 

youth, and improving performance accountability, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 4, 2005 

Mr. MCKEON (for himself, Mr. BOEHNER, Mr. TIBERI, Mr. PORTER, and Mr. 

KLINE) introduced the following bill; which was referred to the Committee on Education and the Workforce 

A BILL 

To enhance the workforce investment system of the Nation 

by strengthening one-stop career centers, providing for 

more effective governance arrangements, promoting access to a more comprehensive array of employment, 

training, and related services, establishing a targeted approach to serving youth, and improving performance accountability, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Job Training Improve3 ment Act of 2005’’. 

4 SEC. 2. TABLE OF CONTENTS. 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

Sec. 3. References. 

TITLE I—AMENDMENTS TO TITLE I OF 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 systems. 

Sec. 109. Eligible providers of training services. 

Sec. 110. Eligible providers of youth activities. 

Sec. 111. Youth Activities. 

Sec. 112. Comprehensive programs for adults. 

Sec. 113. Performance accountability system. 

Sec. 114. Authorization of appropriations. 

Sec. 115. Job corps. 

Sec. 116. Native American programs. 

Sec. 117. Migrant and seasonal farmworker programs. 

Sec. 118. Veterans’ workforce investment programs. 

Sec. 119. Youth challenge grants. 

Sec. 120. Technical assistance. 

Sec. 121. Demonstration, pilot, multiservice, research and multi-State projects. 

Sec. 122. Community-based job training. 

Sec. 123. Personal Reemployment Accounts. 

Sec. 124. National dislocated worker grants. 

Sec. 125. Authorization of appropriations for national activities. 

Sec. 126. Requirements and restrictions. 

Sec. 127. Nondiscrimination. 

Sec. 128. Administrative provisions. 

Sec. 129. General program requirements. 

TITLE II—ADULT EDUCATION 

PART A—ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION

Sec. 201. Table of contents. 

Sec. 202. Amendment. 

PART B—GENERAL PROVISIONS

Sec. 211. Transition. 
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TITLE III—AMENDMENTS TO THE WAGNER-PEYSER ACT 

Sec. 301. Amendments to the Wagner-Peyser Act. 

TITLE IV—AMENDMENTS TO THE REHABILITATION ACT OF 1973 

Sec. 401. Findings. 

Sec. 402. Rehabilitation services administration. 

Sec. 403. Director. 

Sec. 404. Definitions. 

Sec. 405. State plan. 

Sec. 406. Scope of services. 

Sec. 407. Standards and indicators. 

Sec. 408. Reservation for expanded transition services. 

Sec. 409. Chairperson. 

Sec. 410. Authorizations of appropriations. 

Sec. 411. Conforming amendment. 

Sec. 412. Helen Keller National Center Act. 

TITLE V—TRANSITION AND EFFECTIVE DATE 

Sec. 501. Transition provisions. 

Sec. 502. Effective date. 

1 SEC. 3. REFERENCES. 

2 Except as otherwise expressly provided, wherever in 

3 this Act an amendment or repeal is expressed in terms 

4 of an amendment to, or repeal of, a section or other provi5 sion, the amendment or repeal shall be considered to be 

6 made to a section or other provision of the Workforce In7 vestment Act of 1998 (20 U.S.C. 9201 et seq.). 

8 TITLE I—AMENDMENTS TO 

9 TITLE I OF THE WORKFORCE 

10 INVESTMENT ACT OF 1998 

11 SEC. 101. DEFINITIONS. 

12 Section 101 (29 U.S.C. 2801) is amended— 

13 (1) by striking paragraph (13) and redesig14 nating paragraphs (1) through (12) as paragraphs 

15 (2) through (13) respectively; 
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1 (2) by inserting after ‘‘In this title:’’ the fol2 lowing new paragraph: 

3 ‘‘(1) ACCRUED EXPENDITURES.—The term ‘ac4 crued expenditures’ means charges incurred by re5 cipients of funds under this title for a given period 

6 requiring the provision of funds for goods or other 

7 tangible property received; services performed by 

8 employees, contractors, subgrantees, and other pay9 ees; and other amounts becoming owed under pro10 grams assisted under this title for which no current 

11 services or performance is required, such as annu12 ities, insurance claims, and other benefit pay13 ments.’’; 

14 (3) in paragraph (5) (as so redesignated), by 

15 inserting ‘‘(or such other level as the Governor may 

16 establish)’’ after ‘‘8th grade level’’; 

17 (4) in paragraph (9) (as so redesignated)— 

18 (A) in subparagraph (B), by striking 

19 ‘‘and’’ after the semicolon; 

20 (B) in subparagraph (C)— 

21 (i) by striking ‘‘not less than 50 per22 cent of the cost of the training’’ and in23 serting ‘‘a significant portion of the cost of 

24 training, as determined by the local 

25 board’’; and 
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1 (ii) by striking the period and insert2 ing ‘‘; and’’; and 

3 (C) by adding at the end the following: 

4 ‘‘(D) for customized training with an em5 ployer in multiple local areas in the State, a 

6 significant portion of the cost of the training, 

7 as determined by the Governor.’’; 

8 (5) in paragraph 10(A)(ii)(II) (as so redesig9 nated) by striking ‘‘section 134(c)’’ and inserting 

10 ‘‘section 121(e)’’; 

11 (6) in paragraph (13)(A) (as so redesignated) 

12 by striking ‘‘section 122(e)(3)’’ and inserting ‘‘sec13 tion 122’’. 

14 (7) by striking paragraph (24) and redesig15 nating paragraphs (25) through (32) as paragraphs 

16 (24) through (31), respectively; 

17 (8) in paragraph (24) (as so redesignated)— 

18 (A) in subparagraph (B), by striking 

19 ‘‘higher of—’’ and all that follows through 

20 ‘‘such subparagraph’’ and inserting ‘‘poverty 

21 line for an equivalent period;’’; and 

22 (B) by redesignating subparagraphs (D) 

23 through (F) as subparagraph (E) through (G), 

24 respectively, and inserting after subparagraph 

25 (C) the following: 
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1 ‘‘(D) receives or is eligible to receive free 

2 or reduced price lunch under the Richard B. 

3 Russell National School Lunch Act (42 U.S.C. 

4 1751 et seq.);’’; 

5 (9) in paragraph (31) (as so redesignated) by 

6 striking ‘‘the Republic of the Marshall Islands, the 

7 Federated States of Micronesia,’’; and 

8 (10) by striking paragraph (33) and redesig9 nating paragraphs (34) through (53) as paragraphs 

10 (32) through (51), respectively. 

11 SEC. 102. PURPOSE. 

12 Section 106 (29 U.S.C. 2811) is amended by insert13 ing at the end the following: ‘‘It is also the purpose of 

14 this subtitle to provide workforce investment activities in 

15 a manner that promotes the informed choice of partici16 pants and actively involves participants in decisions affect17 ing their participation in such activities.’’. 

18 SEC. 103. STATE WORKFORCE INVESTMENT BOARDS. 

19 (a) MEMBERSHIP.— 

20 (1) IN GENERAL.—Section 111(b) (29 U.S.C. 

21 2821(b)) is amended— 

22 (A) by amending paragraph (1)(C) to read 

23 as follows: 

24 ‘‘(C) representatives appointed by the Gov25 ernor, who are— 
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1 ‘‘(i)(I) the lead State agency officials 

2 with responsibility for the programs and 

3 activities that are described in section 

4 121(b) and carried out by one-stop part5 ners; 

6 ‘‘(II) in any case in which no lead 

7 State agency official has responsibility for 

8 such a program or activity, a representa9 tive in the State with expertise relating to 

10 such program or activity; and 

11 ‘‘(III) if not included under subclause 

12 (I), the director of the State unit, defined 

13 in section 7(8)(B) of the Rehabilitation 

14 Act of 1973 (29 U.S.C. 705(8)(B)) except 

15 that in a State that has established 2 or 

16 more designated State units to administer 

17 the vocational rehabilitation program, the 

18 board representative shall be the director 

19 of the designated State unit that serves the 

20 most individuals with disabilities in the 

21 State; 

22 ‘‘(ii) the State agency officials respon23 sible for economic development; 

24 ‘‘(iii) representatives of business in 

25 the State who— 
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1 ‘‘(I) are owners of businesses, 

2 chief executive or operating officers of 

3 businesses, and other business execu4 tives or employers with optimum pol5 icy making or hiring authority, includ6 ing members of local boards described 

7 in section 117(b)(2)(A)(i); 

8 ‘‘(II) represent businesses with 

9 employment opportunities that reflect 

10 employment opportunities in the 

11 State; and 

12 ‘‘(III) are appointed from among 

13 individuals nominated by State busi14 ness organizations and business trade 

15 associations; 

16 ‘‘(iv) chief elected officials (rep17 resenting both cities and counties, where 

18 appropriate); 

19 ‘‘(v) representatives of labor organiza20 tions, who have been nominated by State 

21 labor federations; and 

22 ‘‘(vi) such other representatives and 

23 State agency officials as the Governor may 

24 designate.’’; and 
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1 (B) in paragraph (3), by striking ‘‘para2 graph (1)(C)(i)’’ and inserting ‘‘paragraph 

3 (1)(C)(iii)’’. 

4 (2) CONFORMING AMENDMENT.—Section 

5 111(c) (29 U.S.C 2811(c)) is amended by striking 

6 ‘‘subsection (b)(1)(C)(i)’’ and inserting ‘‘subsection 

7 (b)(1)(C)(iii)’’. 

8 (b) FUNCTIONS.—Section 111(d) (29 U.S.C. 

9 2811(d)) is amended— 

10 (1) in paragraph (2), by striking ‘‘section 

11 134(c)’’ and inserting ‘‘section 121(e)’’; 

12 (2) by amending paragraph (3) to read as fol13 lows: 

14 ‘‘(3) development and review of statewide poli15 cies affecting the integrated provision of services 

16 through the one-stop delivery system described in 

17 section 121, including— 

18 ‘‘(A) the development of criteria for, and 

19 the issuance of, certifications of one-stop cen20 ters; 

21 ‘‘(B) the criteria for the allocation of one22 stop center infrastructure funding under section 

23 121(h), and oversight of the use of such funds; 
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1 ‘‘(C) approaches to facilitating equitable 

2 and efficient cost allocation in one-stop delivery 

3 systems; and 

4 ‘‘(D) such other matters that may promote 

5 statewide objectives for, and enhance the per6 formance of, one-stop delivery systems within 

7 the State;’’; 

8 (3) in paragraph (4), by inserting ‘‘and the de9 velopment of State criteria relating to the appoint10 ment and certification of local boards under section 

11 117’’ after ‘‘section 116’’; 

12 (4) in paragraph (5), by striking ‘‘sections 

13 128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec14 tions 128(b)(3) and 133(b)(3)’’; and 

15 (5) in paragraph (9), by striking ‘‘section 503’’ 

16 and inserting ‘‘section 136(i)’’. 

17 (c) ELIMINATION OF ALTERNATIVE ENTITY AND

18 PROVISION OF AUTHORITY TO HIRE STAFF.—Section 

19 111(e) (29 U.S.C. 2821(e)) is amended to read as follows: 

20 ‘‘(e) AUTHORITY TO HIRE STAFF.—The State board 

21 may hire staff to assist in carrying out the functions de22 scribed in subsection (d).’’. 
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1 SEC. 104. STATE PLAN. 

2 (a) PLANNING CYCLE.—Section 112(a) (29 U.S.C. 

3 2822(a)) is amended by striking ‘‘5-year strategy’’ and in4 serting ‘‘2-year strategy’’. 

5 (b) CONTENTS.—Section 112(b) (29 U.S.C. 2822(b)) 

6 is amended— 

7 (1) in paragraph (12)(A), by striking ‘‘sections 

8 128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec9 tions 128(b)(3) and 133(b)(3)’’; 

10 (2) in paragraph (14), by striking ‘‘section 

11 134(c)’’ and inserting ‘‘section 121(e)’’; 

12 (3) in paragraph (17)(A) 

13 (A) in clause (iii) by striking ‘‘and’’; 

14 (B) by amending clause (iv) to read as fol15 lows: 

16 ‘‘(iv) how the State will serve the em17 ployment and training needs of dislocated 

18 workers (including displaced homemakers 

19 and formerly self-employed and 

20 transitioning farmers, ranchers, and fisher21 man) low income individuals (including re22 cipients of public assistance), homeless in23 dividuals, ex-offenders, individuals training 

24 for nontraditional employment, and other 

25 individuals with multiple barriers to em-
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1 ployment (including older individuals);’’; 

2 and 

3 (C) by adding the following new clause 

4 after clause (iv): 

5 ‘‘(v) how the State will serve the em6 ployment and training needs of individuals 

7 with disabilities, consistent with section 

8 188 and Executive Order 13217 (42 

9 U.S.C. 12131 note; relating to community10 based alternatives for individuals with dis11 abilities) including the provision of out12 reach, intake, assessments, and service de13 livery, the development of performance 

14 measures, and the training of staff;’’; 

15 (4) in paragraph (18)(D), by striking ‘‘youth 

16 opportunity grants’’ and inserting ‘‘youth challenge 

17 grants’’; and 

18 (5) by adding at the end the following new 

19 paragraphs: 

20 ‘‘(19) a description of the methodology for de21 termining one-stop partner program contributions 

22 for the cost of the infrastructure of one-stop centers 

23 under section 121(h)(1) and of the formula for allo24 cating such infrastructure funds to local areas under 

25 section 121(h)(3); and 
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1 ‘‘(20) a description of any programs and strate2 gies the State will utilize to meet the needs of busi3 nesses in the State, including small businesses, 

4 which may include providing incentives and technical 

5 assistance to assist local areas in engaging employ6 ers in local workforce development activities.’’. 

7 (c) MODIFICATION TO PLAN.—Section 112(d) (29 

8 U.S.C. 2822(d)) is amended by striking ‘‘5-year period’’ 

9 and inserting ‘‘2-year period’’. 

10 SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS. 

11 (a) DESIGNATION OF AREAS.— 

12 (1) CONSIDERATIONS.—Section 116(a)(1)(B) 

13 (29 U.S.C. 2831(a)(1)(B)) is amended by adding at 

14 the end the following clause: 

15 ‘‘(vi) The extent to which such local 

16 areas will promote efficiency in the admin17 istration and provision of services.’’. 

18 (2) AUTOMATIC DESIGNATION.—Section 

19 116(a)(2) (29 U.S.C. 2831(a)(2)) is amended to 

20 read as follows: 

21 ‘‘(2) AUTOMATIC DESIGNATION.— 

22 ‘‘(A) IN GENERAL.—Except as provided in 

23 subparagraph (B) of this paragraph and sub24 section (b), the Governor shall approve a re25 quest for designation as a local area from— 
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1 ‘‘(i) any unit of general local govern2 ment with a population of 500,000 or 

3 more; and 

4 ‘‘(ii) an area served by a rural con5 centrated employment program grant re6 cipient that served as a service delivery 

7 area or substate area under the Job Train8 ing Partnership Act (29 U.S.C. 1501 et 

9 seq.), 

10 for the 2-year period covered by a State plan 

11 under section 112 if such request is made not 

12 later than the date of the submission of the 

13 State plan. 

14 ‘‘(B) CONTINUED DESIGNATION BASED ON

15 PERFORMANCE.—The Governor may deny a re16 quest for designation submitted pursuant to 

17 subparagraph (A) if such unit of government 

18 was designated as a local area for the preceding 

19 2-year period covered by a State plan and the 

20 Governor determines that such local area did 

21 not perform successfully during such period.’’. 

22 (b) REGIONAL PLANNING.—Section 116(c)(1) (29 

23 U.S.C. 2831(c)(1)) is amended by adding at the end the 

24 following: ‘‘The State may require the local boards for the 

25 designated region to prepare a single regional plan that 
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1 incorporates the elements of the local plan under section 

2 118 and that is submitted and approved in lieu of separate 

3 local plans under such section.’’. 

4 SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS. 

5 (a) COMPOSITION.—Section 117(b)(2)(A) (29 U.S.C. 

6 2832(b)(2)(A)) is amended— 

7 (1) in clause (i)(II), by inserting ‘‘, businesses 

8 that are in the leading industries in the local area, 

9 and large and small businesses in the local area’’ 

10 after ‘‘local area’’; 

11 (2) by amending clause (ii) to read as follows: 

12 ‘‘(ii) a superintendent of the local secondary school 

13 system, an administrator of an entity providing adult edu14 cation and literacy activities that is not a one-stop partner 

15 designated under section 121(b)(1)(B), and the president 

16 or chief executive officer of a postsecondary educational 

17 institution serving the local area (including community 

18 colleges, where such entities exist);’’; 

19 (3) in clause (iv), by striking the semicolon and 

20 inserting ‘‘and faith-based organizations; and’’; and 

21 (4) by striking clause (vi). 

22 (b) AUTHORITY OF BOARD MEMBERS.—Section 

23 117(b)(3) (29 U.S.C. 2832(b) is amended— 

24 (1) in the heading, by inserting ‘‘AND REP25 RESENTATION’’ after ‘‘MEMBERS’’; and 
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1 (2) by adding at the end the following: ‘‘The 

2 members of the board shall represent diverse geo3 graphic sections within the local area.’’. 

4 (c) FUNCTIONS.—Section 117(d) (29 U.S.C. 

5 2832(d)) is amended— 

6 (1) in paragraph (2)(B), by striking ‘‘local 

7 area’’ and all that follows and inserting ‘‘local 

8 area.’’; and 

9 (2) in paragraph (4) by inserting ‘‘and ensure 

10 the appropriate use and management of the funds 

11 provided under this title for such programs, activi12 ties, and system’’ after ‘‘area’’. 

13 (d) AUTHORITY TO ESTABLISH COUNCILS AND

14 ELIMINATION OF REQUIREMENT FOR YOUTH COUN15 CILS.—Section 117(h) (29 U.S.C. 2832(h)) is amended to 

16 read as follows: 

17 ‘‘(h) ESTABLISHMENT OF COUNCILS.—The local 

18 board may establish councils to provide information and 

19 advice to assist the local board in carrying out activities 

20 under this title. Such councils may include a council com21 posed of one-stop partners to advise the local board on 

22 the operation of the one-stop delivery system, a youth 

23 council composed of experts and stakeholders in youth 

24 programs to advise the local board on activities for youth, 
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1 and such other councils as the local board determines are 

2 appropriate.’’. 

3 (e) REPEAL OF ALTERNATIVE ENTITY PROVISION.— 

4 Section 117 (29 U.S.C. 2832) is further amended by strik5 ing subsection (i). 

6 SEC. 107. LOCAL PLAN. 

7 (a) PLANNING CYCLE.—Section 118(a) (29 U.S.C. 

8 2833(a)) is amended by striking ‘‘5-year’’ and inserting 

9 ‘‘2-year’’. 

10 (b) CONTENTS.—Section 118(b) (29 U.S.C. 2833(b)) 

11 is amended— 

12 (1) by amending paragraph (2) to read as fol13 lows: 

14 ‘‘(2) a description of the one-stop delivery sys15 tem to be established or designated in the local area, 

16 including a description of how the local board will 

17 ensure the continuous improvement of eligible pro18 viders of services through the system and ensure 

19 that such providers meets the employment needs of 

20 local employers and participants.’’; 

21 (2) in paragraph (4), by striking ‘‘and dis22 located worker’’; 

23 (3) by redesignating paragraph (10) as para24 graph (11); and 
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1 (4) by inserting after paragraph (9) the fol2 lowing: 

3 ‘‘(10) a description of the strategies and serv4 ices that will be initiated in the local area to engage 

5 employers, including small employers, in workforce 

6 development activities.’’. 

7 SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYS8 TEMS. 

9 (a) ONE-STOP PARTNERS.— 

10 (1) REQUIRED PARTNERS.—Section 121(b)(1) 

11 (29 U.S.C. 2841(b)(1)) is amended— 

12 (A) in subparagraph (B)— 

13 (i) by striking clauses (ii) and (v); 

14 (ii) by redesignating clauses (iii) and 

15 (iv) as clauses (ii) and (iii), respectively, 

16 and by redesignating clauses (vi) through 

17 (xii) as clauses (iv) through (x), respec18 tively; 

19 (iii) in clause (ix) (as so redesig20 nated), by striking ‘‘and’’; 

21 (iv) in clause (x) (as so redesignated), 

22 by striking the period and inserting ‘‘; 

23 and’’; and 

24 (v) by inserting after clause (x)(as so 

25 redesignated) the following: 
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1 ‘‘(xi) programs authorized under part 

2 A of title IV of the Social Security Act (42 

3 U.S.C. 601 et. seq.), subject to subpara4 graph (C).’’; and 

5 (B) by adding after subparagraph (B) the 

6 following: 

7 ‘‘(C) DETERMINATION BY THE GOV8 ERNOR.—The program referred to in clauses 

9 (xi) of subparagraph (B) shall be included as a 

10 required partner for purposes of this title in a 

11 State unless the Governor of the State notifies 

12 the Secretary and the Secretary of Health and 

13 Human Services in writing of a determination 

14 by the Governor not to include such programs 

15 as required partners for purposes of this title in 

16 the State.’’. 

17 (2) ADDITIONAL PARTNERS.—Section 

18 121(b)(2)(B) (29 U.S.C. 2841(b)(2)(B)) is amend19 ed— 

20 (A) by striking clause (i) and redesignating 

21 clauses (ii) through (v) as clauses (i) through 

22 (iv) respectively; 

23 (B) in clause (iii) (as so redesignated) by 

24 striking ‘‘and’’ at the end; 
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1 (C) in clause (iv) (as so redesignated) by 

2 striking the period and inserting a semicolon; 

3 and 

4 (D) by adding at the end the following new 

5 clauses: 

6 ‘‘(v) employment and training pro7 grams administered by the Social Security 

8 Administration, including the Ticket to 

9 Work program (established by Public Law 

10 106–170); 

11 ‘‘(vi) employment and training pro12 grams carried out by the Small Business 

13 Administration; 

14 ‘‘(vii) programs under part D of title 

15 IV of the Social Security Act (42 U.S.C. 

16 451 et seq.) (relating to child support en17 forcement); and 

18 ‘‘(viii) programs carried out in the 

19 local area for individuals with disabilities, 

20 including programs carried out by State 

21 agencies relating to mental health, mental 

22 retardation, and developmental disabilities, 

23 State Medicaid agencies, State Inde24 pendent Living Councils, and Independent 

25 Living Centers.’’. 
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1 (b) PROVISION OF SERVICES.—Subtitle B of title I 

2 is amended— 

3 (1) in section 121(d)(2), by striking ‘‘section 

4 134(c)’’ and inserting ‘‘subsection (e)’’; 

5 (2) by striking subsection (e) of section 121; 

6 (3) by moving subsection (c) of section 134 

7 from section 134, redesignating such subsection as 

8 subsection (e), and inserting such subsection (as so 

9 redesignated) after subsection (d) of section 121; 

10 and 

11 (4) by amending subsection (e) (as moved and 

12 redesignated by paragraph (2))— 

13 (A) in paragraph (1)(A), by striking ‘‘sub14 section (d)(2)’’ and inserting ‘‘section 

15 134(c)(2)’’; 

16 (B) in paragraph (1)(B)— 

17 (i) by striking ‘‘subsection (d)’’ and 

18 inserting ‘‘section 134(c)’’; and 

19 (ii) by striking ‘‘subsection (d)(4)(G)’’ 

20 and inserting ‘‘section 134(c)(4)(G)’’; 

21 (C) in paragraph (1)(C), by striking ‘‘sub22 section (e)’’ and inserting ‘‘section 134(d)’’; 

23 (D) in paragraph (1)(D)— 

24 (i) by striking ‘‘section 121(b)’’ and 

25 inserting ‘‘subsection (b)’’; and 
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1 (ii) by striking ‘‘and’’ at the end; and 

2 (E) by amending paragraph (1)(E) to read 

3 as follows: 

4 ‘‘(E) shall provide access to the informa5 tion described in section 15(e) of the Wagner6 Peyser Act (29 U.S.C. 49l-2(e)).’’. 

7 (c) CERTIFICATION AND FUNDING OF ONE-STOP

8 CENTERS.—Section 121 (as amended by subsection (b)) 

9 is further amended by adding at the end the following new 

10 subsections: 

11 ‘‘(g) CERTIFICATION OF ONE-STOP CENTERS.— 

12 ‘‘(1) IN GENERAL.—The State board shall es13 tablish procedures and criteria for periodically certi14 fying one-stop center for the purpose of awarding 

15 the one-stop infrastructure funding described in sub16 section (h). 

17 ‘‘(2) CRITERIA.—The criteria for certification 

18 under this subsection shall include minimum stand19 ards relating to the scope and degree of service inte20 gration achieved by the centers involving the pro21 grams provided by the one-stop partners, and how 

22 the centers ensure that such providers meet the em23 ployment needs of local employers and participants. 

24 ‘‘(3) EFFECT OF CERTIFICATION.—One-stop 

25 centers certified under this subsection shall be eligi-
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1 ble to receive the infrastructure grants authorized 

2 under subsection (h). 

3 ‘‘(h) ONE-STOP INFRASTRUCTURE FUNDING.— 

4 ‘‘(1) PARTNER CONTRIBUTIONS.— 

5 ‘‘(A) PROVISION OF FUNDS.—Notwith6 standing any other provision of law, as deter7 mined under subparagraph (B), a portion of the 

8 Federal funds provided to the State and areas 

9 within the State under the Federal laws author10 izing the one-stop partner programs described 

11 in subsection (b)(1)(B) and participating addi12 tional partner programs described in (b)(2)(B) 

13 for a fiscal year shall be provided to the Gov14 ernor by such programs to carry out this sub15 section. 

16 ‘‘(B) DETERMINATION OF GOVERNOR.— 

17 Subject to subparagraph (C), the Governor, in 

18 consultation with the State board, shall deter19 mine the portion of funds to be provided under 

20 subparagraph (A) by each one-stop partner and 

21 in making such determination shall consider the 

22 proportionate use of the one-stop centers by 

23 each partner, the costs of administration for 

24 purposes not related to one-stop centers for 
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1 each partner, and other relevant factors de2 scribed in paragraph (3). 

3 ‘‘(C) LIMITATIONS.— 

4 ‘‘(i) PROVISION FROM ADMINISTRA5 TIVE FUNDS.—The funds provided under 

6 this paragraph by each one-stop partner 

7 shall be provided only from funds available 

8 for the costs of administration under the 

9 program administered by such partner, 

10 and shall be subject to the limitations with 

11 respect to the portion of funds under such 

12 programs that may be used for administra13 tion. 

14 ‘‘(ii) FEDERAL DIRECT SPENDING

15 PROGRAMS.—Programs that are Federal 

16 direct spending under section 250(c)(8) of 

17 the Balanced Budget and Emergency Def18 icit Control Act of 1985 (2 U.S.C. 

19 900(c)(8)) shall not, for purposes of this 

20 paragraph, be required to provide an 

21 amount in excess of the amount deter22 mined to be equivalent to the proportionate 

23 use of the one-stop centers by such pro24 grams in the State. 
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1 ‘‘(iii) NATIVE AMERICAN PRO2 GRAMS.—Native American programs estab3 lished under section 166 shall not be sub4 ject to the provisions of this subsection. 

5 The method for determining the appro6 priate portion of funds to be provided by 

7 such Native American programs to pay for 

8 the costs of infrastructure of a one-stop 

9 center certified under subsection (g) shall 

10 be determined as part of the development 

11 of the memorandum of understanding 

12 under subsection (c) for the one-stop cen13 ter and shall be stated in the memo14 randum. 

15 ‘‘(2) ALLOCATION BY GOVERNOR.—From the 

16 funds provided under paragraph (1), the Governor 

17 shall allocate funds to local areas in accordance with 

18 the formula established under paragraph (3) for the 

19 purposes of assisting in paying the costs of the in20 frastructure of One-Stop centers certified under sub21 section (g). 

22 ‘‘(3) ALLOCATION FORMULA.—The State board 

23 shall develop a formula to be used by the Governor 

24 to allocate the funds described in paragraph (1). 

25 The formula shall include such factors as the State 
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1 board determines are appropriate, which may in2 clude factors such as the number of centers in the 

3 local area that have been certified, the population 

4 served by such centers, and the performance of such 

5 centers. 

6 ‘‘(4) COSTS OF INFRASTRUCTURE.—For pur7 poses of this subsection, the term ‘costs of infra8 structure’ means the nonpersonnel costs that are 

9 necessary for the general operation of a one-stop 

10 center, including the rental costs of the facilities, the 

11 costs of utilities and maintenance, equipment (in12 cluding adaptive technology for individuals with dis13 abilities), strategic planning activities for the center, 

14 and common outreach activities. 

15 ‘‘(i) OTHER FUNDS.— 

16 ‘‘(1) IN GENERAL.—In addition to the funds 

17 provided to carry out subsection (h), a portion of 

18 funds made available under Federal law authorizing 

19 the one-stop partner programs described in sub20 section (b)(1)(B) and participating partner pro21 grams described in subsection (b)(2)(B), or the 

22 noncash resources available under such programs 

23 shall be used to pay the costs relating to the oper24 ation of the one-stop delivery system that are not 

25 paid for from the funds provided under subsection 
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1 (h), to the extent not inconsistent with the Federal 

2 law involved including— 

3 ‘‘(A) infrastructure costs that are in excess 

4 of the funds provided under subsection (h); 

5 ‘‘(B) common costs that are in addition to 

6 the costs of infrastructure; and 

7 ‘‘(C) the costs of the provision of core serv8 ices applicable to each program. 

9 ‘‘(2) DETERMINATION AND GUIDANCE.—The 

10 method for determining the appropriate portion of 

11 funds and noncash resources to be provided by each 

12 program under paragraph (1) shall be determined as 

13 part of the memorandum of understanding under 

14 subsection (c). The State board shall provide guid15 ance to facilitate the determination of appropriate 

16 allocation of the funds and noncash resources in 

17 local areas.’’. 

18 SEC. 109. ELIGIBLE PROVIDERS OF TRAINING SERVICES. 

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

20 follows: 

21 ‘‘SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF 

22 TRAINING SERVICES. 

23 ‘‘(a) IN GENERAL.—The Governor shall establish cri24 teria and procedures regarding the eligibility of providers 

25 of training services described in section 134(c)(4) to re-
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1 ceive funds provided under section 133(b) for the provision 

2 of such training services. 

3 ‘‘(b) CRITERIA.— 

4 ‘‘(1) IN GENERAL.—The criteria established 

5 pursuant to subsection (a) shall take into account 

6 the performance of providers of training services 

7 with respect to the indicators described in section 

8 136 or other appropriate indicators (taking into con9 sideration the characteristics of the population 

10 served and relevant economic conditions), and such 

11 other factors as the Governor determines are appro12 priate to ensure the quality of services, the account13 ability of providers, how the centers ensure that 

14 such providers meet the needs of local employers and 

15 participants, and the informed choice of participants 

16 under chapter 5. Such criteria shall require that the 

17 provider submit appropriate, accurate and timely in18 formation to the State for purposes of carrying out 

19 subsection (d). The criteria shall also provide for 

20 periodic review and renewal of eligibility under this 

21 section for providers of training services. The Gov22 ernor may authorize local areas in the State to es23 tablish additional criteria or to modify the criteria 

24 established by the Governor under this section for 

25 purposes of determining the eligibility of providers of 
29 

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1 training services to provide such services in the local 

2 area. 

3 ‘‘(2) LIMITATION.—In carrying out the require4 ments of this subsection, no personally identifiable 

5 information regarding a student, including Social 

6 Security number, student identification number, or 

7 other identifier, may be disclosed without the prior 

8 written consent of the parent or eligible student in 

9 compliance with section 444 of the General Edu10 cation Provisions Act (20 U.S.C. 1232g). 

11 ‘‘(c) PROCEDURES.—The procedures established 

12 under subsection (a) shall identify the application process 

13 for a provider of training services to become eligible to 

14 receive funds under section 133(b) for the provision of 

15 training services, and identify the respective roles of the 

16 State and local areas in receiving and reviewing applica17 tions and in making determinations of eligibility based on 

18 the criteria established under this section. The procedures 

19 shall also establish a process for a provider of training 

20 services to appeal a denial or termination of eligibility 

21 under this section that includes an opportunity for a hear22 ing and prescribes appropriate time limits to ensure 

23 prompt resolution of the appeal. 

24 ‘‘(d) INFORMATION TO ASSIST PARTICIPANTS IN

25 CHOOSING PROVIDERS.— 
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1 ‘‘(1) IN GENERAL.—In order to facilitate and 

2 assist participants under chapter 5 in choosing pro3 viders of training services, the Governor shall ensure 

4 that an appropriate list or lists of providers deter5 mined eligible under this section in the State, ac6 companied by such information as the Governor de7 termines is appropriate, is provided to the local 

8 boards in the State to be made available to such 

9 participants and to members of the public through 

10 the one-stop delivery system in the State. 

11 ‘‘(2) SPECIAL RULE.—An entity that carries 

12 out programs under the Act of August 16, 1937 

13 (commonly known as the ‘National Apprenticeship 

14 Act’, 50 Stat. 664, chapter 663; 29 U.S.C. 50 et 

15 seq.) shall be included on the list of eligible pro16 viders described in paragraph (1) for so long as such 

17 entity remains certified by the Department of Labor. 

18 ‘‘(e) AGREEMENTS WITH OTHER STATES.—States 

19 may enter into agreements, on a reciprocal basis, to per20 mit eligible providers of training services to accept indi21 vidual training accounts provided in another State. 

22 ‘‘(f) RECOMMENDATIONS.—In developing the criteria, 

23 procedures, and information required under this section, 

24 the Governor shall solicit and take into consideration the 
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1 recommendations of local boards and providers of training 

2 services within the State. 

3 ‘‘(g) OPPORTUNITY TO SUBMIT COMMENTS.—During 

4 the development of the criteria, procedures, and informa5 tion required under this section, the Governor shall pro6 vide an opportunity for interested members of the public, 

7 including representatives of business and labor organiza8 tions, to submit comments regarding such criteria, proce9 dures, and information. 

10 ‘‘(h) ON-THE-JOB TRAINING OR CUSTOMIZED

11 TRAINING EXCEPTION.—

12 ‘‘(1) IN GENERAL.—Providers of on-the-job 

13 training or customized training shall not be subject 

14 to the requirements of subsections (a) through (g). 

15 ‘‘(2) COLLECTION AND DISSEMINATION OF IN16 FORMATION.—A one-stop operator in a local area 

17 shall collect such performance information from on18 the-job training and customized training providers 

19 as the Governor may require, determine whether the 

20 providers meet such performance criteria as the Gov21 ernor may require, and disseminate information 

22 identifying providers that meet the criteria as eligi23 ble providers, and the performance information, 

24 through the one-stop delivery system. Providers de25 termined to meet the criteria shall be considered to 
32 

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1 be identified as eligible providers of training serv2 ices.’’. 

3 SEC. 110. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 

4 (a) ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.— 

5 Section 123 (29 U.S.C. 2843) is amended to read as fol6 lows: 

7 ‘‘SEC. 123. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 

8 ‘‘(a) IN GENERAL.—From the funds allocated under 

9 section 128(b) to a local area, the local board for such 

10 area shall award grants or contracts on a competitive basis 

11 to providers of youth activities identified based on the cri12 teria in the State plan and shall conduct oversight with 

13 respect to such providers. 

14 ‘‘(b) EXCEPTIONS.—A local board may award grants 

15 or contracts on a sole-source basis if such board deter16 mines there are an insufficient number of eligible pro17 viders of training services in the local area involved (such 

18 as rural areas) for grants to be awarded on a competitive 

19 basis under subsection (a).’’. 

20 (b) CLERICAL AMENDMENT.—The table of contents 

21 in section 1(b) is amended by amending the item related 

22 to section 123 to read as follows: 

‘‘Sec. 123. Eligible providers of youth activities.’’. 

23 SEC. 111. YOUTH ACTIVITIES. 

24 (a) STATE ALLOTMENTS.— 
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1 (1) IN GENERAL.—Section 127(a) (29 U.S.C. 

2 2852(a)) is amended to read as follows: 

3 ‘‘(a) ALLOTMENT AMONG STATES.— 

4 ‘‘(1) YOUTH ACTIVITIES.— 

5 ‘‘(A) YOUTH CHALLENGE GRANTS.— 

6 ‘‘(i) RESERVATION OF FUNDS.—Of 

7 the amount appropriated under section 

8 137(a) for each fiscal year, the Secretary 

9 shall reserve 25 percent to provide youth 

10 challenge grants under section 169. 

11 ‘‘(ii) LIMITATION.—Notwithstanding 

12 clause (i), if the amount appropriated 

13 under section 137(a) for a fiscal year ex14 ceeds $1,000,000,000, the Secretary shall 

15 reserve $250,000,000 to provide youth 

16 challenge grants under section 169. 

17 ‘‘(B) OUTLYING AREAS AND NATIVE AMER18 ICANS.— 

19 ‘‘(i) IN GENERAL.—After determining 

20 the amount to be reserved under subpara21 graph (A), of the remainder of the amount 

22 appropriated under section 137(a) for each 

23 fiscal year the Secretary shall— 

‘‘(I) reserve not more than 1 24 ⁄4 of 

25 one percent of such amount to provide 
34 

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1 assistance to the outlying areas to 

2 carry out youth activities and state3 wide workforce investment activities; 

4 and 

5 ‘‘(II) reserve not more than 1 

and 1 6 ⁄2 percent of such amount to 

7 provide youth activities under section 

8 166 (relating to Native Americans). 

9 ‘‘(ii) RESTRICTION.—The Republic of 

10 Palau shall cease to be eligible to receive 

11 funding under this subparagraph upon en12 tering into an agreement for extension of 

13 United States educational assistance under 

14 the Compact of Free Association (approved 

15 by the Compact of Free Association 

16 Amendments Act of 2003 (Public Law 

17 108–188)) after the date of enactment of 

18 the Job Training Improvement Act of 

19 2005. 

20 ‘‘(C) STATES.— 

21 ‘‘(i) IN GENERAL.—Of the remainder 

22 of the amount appropriated under section 

23 137(a) for a fiscal year that is available 

24 after determining the amounts to be re-
35 

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1 served under subparagraphs (A) and (B), 

2 the Secretary shall allot— 

3 ‘‘(I) the amount of the remainder 

4 that is less than or equal to the total 

5 amount that was allotted to States for 

6 fiscal year 2003 under section 

7 127(b)(1)(C) of this Act (as in effect 

8 on the day before the date of enact9 ment of the Job Training Improve10 ment Act of 2005) in accordance with 

11 the requirements of such section 

12 127(b)(1)(C); and 

13 ‘‘(II) the amount of the remain14 der, if any, in excess of the amount 

15 referred to in subclause (I) in accord16 ance with clause (ii). 

17 ‘‘(ii) FORMULAS FOR EXCESS

18 FUNDS.—Subject to clauses (iii) and (iv), 

19 of the amounts described in clause 

20 (i)(II)— 

‘‘(I) 331 21 ⁄3 percent shall be allot22 ted on the basis of the relative num23 ber of individuals in the civilian labor 

24 force who are ages 16–19 in each 

25 State, compared to the total number 
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1 of individuals in the civilian labor 

2 force who are ages 16–19 in all 

3 States; 

‘‘(II) 331 4 ⁄3 percent shall be allot5 ted on the basis of the relative num6 ber of unemployed individuals in each 

7 State, compared to the total number 

8 of unemployed individuals in all 

9 States; and 

‘‘(III) 331 10 ⁄3 percent shall be allot11 ted on the basis of the relative num12 ber of disadvantaged youth who are 

13 ages 16 through 21 in each State, 

14 compared to the total number of dis15 advantaged youth who are ages 16 

16 through 21 in all States. 

17 ‘‘(iii) MINIMUM AND MAXIMUM PER18 CENTAGES.—The Secretary shall ensure 

19 that no State shall receive an allotment for 

20 a fiscal year that is less than 90 percent 

21 or greater than 130 percent of the allot22 ment percentage of that State for the pre23 ceding fiscal year. 

24 ‘‘(iv) SMALL STATE MINIMUM ALLOT25 MENT.—Subject to clause (iii), the Sec-
37 

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1 retary shall ensure that no State shall re2 ceive an allotment under this paragraph 

that is less than 3 3 ⁄10 of 1 percent of the 

4 amount available under subparagraph (A). 

5 ‘‘(2) DEFINITIONS.—For the purposes of para6 graph (1), the following definitions apply: 

7 ‘‘(A) ALLOTMENT PERCENTAGE.—The 

8 term ‘allotment percentage’, used with respect 

9 to fiscal year 2006 or a subsequent fiscal year, 

10 means a percentage of the remainder described 

11 in paragraph (1)(C)(i) that is received through 

12 an allotment made under this subsection for the 

13 fiscal year. The term, with respect to fiscal year 

14 2005, means the percentage of the amounts al15 lotted to States under this chapter (as in effect 

16 on the day before the date of enactment of the 

17 Job Training Improvement Act of 2005) that is 

18 received by the State involved for fiscal year 

19 2005. 

20 ‘‘(B) DISADVANTAGED YOUTH.—The term 

21 ‘disadvantaged youth’ means an individual who 

22 is age 16 through 21 who received an income, 

23 or is a member of a family that received a total 

24 family income, that, in relation to family size, 

25 does not exceed the poverty line. 
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1 ‘‘(3) SPECIAL RULE.—For purposes of the for2 mulas specified in paragraph (1)(C), the Secretary 

3 shall, as appropriate and to the extent practicable, 

4 exclude college students and members of the Armed 

5 Forces from the determination of the number of dis6 advantaged youth.’’. 

7 (2) REALLOTMENT.—Section 127 (29 U.S.C. 

8 2552) is further amended—- 

9 (A) by striking subsection (b); 

10 (B) by redesignating subsection (c) as sub11 section (b); 

12 (C) in subsection (b) (as so redesig13 nated)— 

14 (i) by amending paragraph (2) to read 

15 as follows: 

16 ‘‘(2) AMOUNT.—The amount available for real17 lotment for a program year is equal to the amount 

18 by which the unexpended balance at the end of the 

19 program year prior to the program year for which 

20 the determination is made exceeds 30 percent of the 

21 total amount of funds available to the State under 

22 this section during such prior program year (includ23 ing amounts allotted to the State in all prior pro24 gram years that remained available). For purposes 
39 

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1 of this paragraph, the expended balance is the 

2 amount that is the difference between— 

3 ‘‘(A) the total amount of funds available to 

4 the State under this section during the program 

5 year prior to the program year for which the 

6 determination is made (including amounts allot7 ted to the State in all prior program years that 

8 remained available); and 

9 ‘‘(B) the accrued expenditures during such 

10 prior program year.’’; 

11 (ii) in paragraph (3)— 

12 (I) by striking ‘‘for the prior pro13 gram year’’ and inserting ‘‘for the 

14 program year in which the determina15 tion is made’’; and 

16 (II) by striking ‘‘such prior pro17 gram year’’ and inserting ‘‘such pro18 gram year’’; 

19 (iii) by amending paragraph (4) to 

20 read as follows: 

21 ‘‘(4) ELIGIBILITY.—For purposes of this sub22 section, an eligible State means a State which does 

23 not have an amount available for reallotment under 

24 paragraph (2) for the program year for which the 

25 determination under paragraph (2) is made.’’; and 
40 

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1 (iv) in paragraph (5), by striking ‘‘ob2 ligation’’ and inserting ‘‘accrued expendi3 ture’’. 

4 (b) WITHIN STATE ALLOCATIONS.— 

5 (1) RESERVATION FOR STATEWIDE ACTIVI6 TIES.—Section 128(a) is amended to read as follows: 

7 ‘‘(a) RESERVATION FOR STATEWIDE ACTIVITIES.— 

8 ‘‘(1) IN GENERAL.—The Governor of a State 

9 shall reserve not more than 10 percent of the 

10 amount allotted to the State under section 

11 127(a)(1)(C) for a fiscal year for statewide activi12 ties. 

13 ‘‘(2) USE OF FUNDS.—Regardless of whether 

14 the amounts are allotted under section 127(a)(1)(C) 

15 and reserved under paragraph (1) or allotted under 

16 section 132 and reserved under section 133(a), the 

17 Governor may use the reserved amounts to carry out 

18 statewide youth activities under section 129(b) or 

19 statewide employment and training activities under 

20 section 133.’’. 

21 (2) WITHIN STATE ALLOCATIONS.—Section 

22 128(b) is amended to read as follows: 

23 ‘‘(b) WITHIN STATE ALLOCATION.— 
41 

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1 ‘‘(1) IN GENERAL.—Of the amounts allotted to 

2 the State under section 127(a)(1)(C) and not re3 served under subsection (a)(1)— 

4 ‘‘(A) 80 percent of such amounts shall be 

5 allocated by the Governor to local areas in ac6 cordance with paragraph (2); and 

7 ‘‘(B) 20 percent of such amounts shall be 

8 allocated by the Governor to local areas in ac9 cordance with paragraph (3). 

10 ‘‘(2) ESTABLISHED FORMULA.— 

11 ‘‘(A) IN GENERAL.—Of the amounts de12 scribed in paragraph (1)(A), the Governor shall 

13 allocate— 

‘‘(i) 331 14 ⁄3 percent shall be allotted on 

15 the basis of the relative number of individ16 uals in the civilian labor force who are ages 

17 16–19 in each local area, compared to the 

18 total number of individuals in the civilian 

19 labor force who are ages 16–19 in all local 

20 areas in the State; 

‘‘(ii) 331 21 ⁄3 percent shall be allotted on 

22 the basis of the relative number of unem23 ployed individuals in each local area, com24 pared to the total number of unemployed 
42 

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1 individuals in all local areas in the State; 

2 and 

‘‘(iii) 331 3 ⁄3 percent on the basis of the 

4 relative number of disadvantaged youth 

5 who are ages 16 through 21 in each local 

6 area, compared to the total number of dis7 advantaged youth who are ages 16 through 

8 21 in all local areas in the State. 

9 ‘‘(B) MINIMUM AND MAXIMUM PERCENT10 AGES.—The Governor shall ensure that no local 

11 area shall receive an allocation for a fiscal year 

12 under this paragraph that is less than 90 per13 cent or greater than 130 percent of the alloca14 tion percentage of the local area for the pre15 ceding fiscal year. 

16 ‘‘(C) DEFINITIONS.— 

17 ‘‘(i) ALLOCATION PERCENTAGE.—For 

18 purposes of this paragraph, the term ‘allo19 cation percentage’, used with respect to fis20 cal year 2006 or a subsequent fiscal year, 

21 means a percentage of amount described in 

22 paragraph(1)(A) that is received through 

23 an allocation made under this paragraph 

24 for the fiscal year. The term, with respect 

25 to fiscal year 2005, means the percentage 
43 

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1 of the amounts allocated to local areas 

2 under this chapter (as in effect on the day 

3 before the date of enactment of the Job 

4 Training Improvement Act of 2005) that is 

5 received by the local area involved for fis6 cal year 2005. 

7 ‘‘(ii) DISADVANTAGED YOUTH.—The 

8 term ‘disadvantaged youth’ means an indi9 vidual who is age 16 through 21 who re10 ceived an income, or is a member of a fam11 ily that received a total family income, 

12 that, in relation to family size, does not ex13 ceed the poverty line. 

14 ‘‘(3) YOUTH DISCRETIONARY ALLOCATION.— 

15 The Governor shall allocate to local areas the 

16 amounts described in paragraph (1)(B) in accord17 ance with such demographic and economic factors as 

18 the Governor, after consultation with the State 

19 board and local boards, determines are appropriate. 

20 ‘‘(4) LOCAL ADMINISTRATIVE COST LIMIT.— 

21 ‘‘(A) IN GENERAL.—Of the amounts allo22 cated to a local area under this subsection and 

23 section 133(b) for a fiscal year, not more than 

24 10 percent of the amount may be used by the 

25 local boards for the administrative costs of car-
44 

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1 rying out local workforce investment activities 

2 under this chapter or chapter 5. 

3 ‘‘(B) USE OF FUNDS.—Funds made avail4 able for administrative costs under subpara5 graph (A) may be used for the administrative 

6 costs of any of the local workforce investment 

7 activities described in this chapter or chapter 5, 

8 regardless of whether the funds were allocated 

9 under this subsection or section 133(b).’’. 

10 (3) REALLOCATION.—Section 128(c) (29 

11 U.S.C. 2853(c)) is amended— 

12 (A) in paragraph (1), by striking ‘‘para13 graph (2)(A) or (3) of’’; 

14 (B) by amending paragraph (2) to read as 

15 follows: 

16 ‘‘(2) AMOUNT.—The amount available for re17 allocation for a program year is equal to the amount 

18 by which the unexpended balance at the end of the 

19 program year prior to the program year for which 

20 the determination is made exceeds 30 percent of the 

21 total amount of funds available to the local area 

22 under this section during such prior program year, 

23 (including amounts allotted to the local area in prior 

24 program years that remain available). For purposes 
45 

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1 of this paragraph, the unexpended balance is the 

2 amount that is the difference between— 

3 ‘‘(A) the total amount of funds available to 

4 the local area under this section during the pro5 gram year prior to the program year for which 

6 the determination is made (including amounts 

7 allocated to the local area in all prior program 

8 years that remained available); and 

9 ‘‘(B) the accrued expenditures during such 

10 prior program year.’’; 

11 (C) by amending paragraph (3)— 

12 (i) by striking ‘‘subsection (b)(3)’’ 

13 each place it appears and inserting ‘‘sub14 section (b)’’; 

15 (ii) by striking ‘‘the prior program 

16 year’’ and inserting ‘‘the program year in 

17 which the determination is made’’; 

18 (iii) by striking ‘‘such prior program 

19 year’’ and inserting ‘‘such program year’’; 

20 and 

21 (iv) by striking the last sentence; and 

22 (D) by amending paragraph (4) to read as 

23 follows: 

24 ‘‘(4) ELIGIBILITY.—For purposes of this sub25 section, an eligible local area means a local area 
46 

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1 which does not have an amount available for re2 allocation under paragraph (2) for the program year 

3 for which the determination under paragraph (2) is 

4 made.’’. 

5 (c) YOUTH PARTICIPANT ELIGIBILITY.—Section 

6 129(a) (29 U.S.C. 2854(a)) is amended to read as follows: 

7 ‘‘(a) YOUTH PARTICIPANT ELIGIBILITY.— 

8 ‘‘(1) IN GENERAL.—The individuals partici9 pating in activities carried out under this chapter by 

10 a local area during any program year shall be indi11 viduals who, at the time the eligibility determination 

12 is made, are— 

13 ‘‘(A) not younger than age 16 or older 

14 than age 24; and 

15 ‘‘(B) one or more of the following: 

16 ‘‘(i) school dropouts; 

17 ‘‘(ii) recipients of a secondary school 

18 diploma or General Educational Develop19 ment credential (GED) (including recog20 nized alternative standards for individuals 

21 with disabilities) who are deficient in basic 

22 skills; 

23 ‘‘(iii) court-involved youth attending 

24 an alternative school; 
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1 ‘‘(iv) youth in foster care or who have 

2 been in foster care; or 

3 ‘‘(v) in school youth who are low-in4 come individuals and one or more of the 

5 following: 

6 ‘‘(I) Deficient in literacy skills. 

7 ‘‘(II) Homeless, runaway, or fos8 ter children. 

9 ‘‘(III) Pregnant or parents. 

10 ‘‘(IV) Offenders. 

11 ‘‘(V) Individuals who require ad12 ditional assistance to complete an edu13 cational program, or to secure and 

14 hold employment. 

15 ‘‘(2) PRIORITY FOR SCHOOL DROPOUTS.—A 

16 priority in the provision of services under this chap17 ter shall be given to individuals who are school drop18 outs. 

19 ‘‘(3) LIMITATIONS ON ACTIVITIES FOR IN20 SCHOOL YOUTH.— 

21 ‘‘(A) PERCENTAGE OF FUNDS.—For any 

22 program year, not more than 30 percent of the 

23 funds available for statewide activities under 

24 subsection (b), and not more than 30 percent of 

25 funds available to local areas under subsection 
48 

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1 (c), may be used to provide activities for in2 school youth meeting the requirements of para3 graph (1)(B)(v). 

4 ‘‘(B) NON-SCHOOL HOURS REQUIRED.— 

5 Activities carried out under this chapter for in6 school youth meeting the requirements of para7 graph (1)(B)(v) shall only be carried out in 

8 non-school hours or periods when school is not 

9 in session (such as before and after school or 

10 during summer recess).’’. 

11 (d) STATEWIDE YOUTH ACTIVITIES.—Section 129(b) 

12 (29 U.S.C. 2854(b)) is amended to read as follows: 

13 ‘‘(b) STATEWIDE ACTIVITIES.— 

14 ‘‘(1) IN GENERAL.—Funds reserved by a Gov15 ernor for a State as described in sections 128(a) and 

16 133(a)(1) may be used for statewide activities in17 cluding— 

18 ‘‘(A) additional assistance to local areas 

19 that have high concentrations of eligible youth; 

20 ‘‘(B) supporting the provision of core serv21 ices described in section 134(c)(2) in the one22 stop delivery system; 

23 ‘‘(C) conducting evaluations under section 

24 136(e) of activities authorized under this chap25 ter and chapter 5 in coordination with evalua-
49 

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1 tions carried out by the Secretary under section 

2 172, research, and demonstration projects; 

3 ‘‘(D) providing incentive grants to local 

4 areas for regional cooperation among local 

5 boards (including local boards in a designated 

6 region as described in section 116(c)), for local 

7 coordination of activities carried out under this 

8 Act, and for exemplary performance by local 

9 areas on the local performance measures; 

10 ‘‘(E) providing technical assistance and ca11 pacity building to local areas, one-stop opera12 tors, one-stop partners, and eligible providers, 

13 including the development and training of staff, 

14 the development of exemplary program activi15 ties, and the provision of technical assistance to 

16 local areas that fail to meet local performance 

17 measures; 

18 ‘‘(F) operating a fiscal and management 

19 accountability system under section 136(f); and 

20 ‘‘(G) carrying out monitoring and over21 sight of activities under this chapter and chap22 ter 5. 

23 ‘‘(2) LIMITATION.—Not more than 5 percent of 

24 the funds allotted under section 127(b) shall be used 
50 

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1 by the State for administrative activities carried out 

2 under this subsection and section 133(a). 

3 ‘‘(3) PROHIBITION.—No funds described in this 

4 subsection or in section 134(a) may be used to de5 velop or implement education curricula for school 

6 systems in the State.’’. 

7 (e) LOCAL ELEMENTS AND REQUIREMENTS.— 

8 (1) PROGRAM DESIGN.—Section 129(c)(1) (29 

9 U.S.C. 2854(c) (1)) is amended— 

10 (A) in the matter preceding subparagraph 

11 (A), by striking ‘‘paragraph (2)(A) or (3), as 

12 appropriate, of’’; 

13 (B) in subparagraph (B), by inserting ‘‘are 

14 directly linked to one or more of the perform15 ance outcomes relating to this chapter under 

16 section 136, and that’’ after ‘‘for each partici17 pant that’’; and 

18 (C) in subparagraph (C)— 

19 (i) by redesignating clauses (i) 

20 through (iv) as clauses (ii) through (v), re21 spectively; 

22 (ii) by inserting before clause (ii) (as 

23 so redesignated) the following: 

24 ‘‘(i) activities leading to the attainment of a sec25 ondary school diploma or the General Educational Devel-
51 

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1 opment credential (GED) (including recognized alter2 native standards for individuals with disabilities);’’; 

3 (iii) in clause (ii) (as so redesignated), 

4 by inserting ‘‘and advanced training’’ after 

5 ‘‘opportunities’’; 

6 (iv) in clause (iii) (as so redesig7 nated), by inserting ‘‘that lead to the at8 tainment of recognized credentials’’ after 

9 ‘‘learning’’; and 

10 (v) by amending clause (v) (as redes11 ignated by this subparagraph) to read as 

12 follows: 

13 ‘‘(v) effective connections to employers in sectors of 

14 the local labor market experiencing high growth in employ15 ment opportunities.’’. 

16 (2) PROGRAM ELEMENTS.—Section 129(c)(2) 

17 (29 U.S.C. 2854(c)(2)) is amended— 

18 (A) in subparagraph (A), by striking ‘‘sec19 ondary school, including dropout prevention 

20 strategies’’ and inserting ‘‘secondary school di21 ploma or the General Educational Development 

22 credential (GED) (including recognized alter23 native standards for individuals with disabil24 ities), including dropout prevention strategies’’; 
52 

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1 (B) in subparagraph (I), by striking ‘‘and’’ 

2 at the end; 

3 (C) in subparagraph (J), by striking the 

4 period at the end and inserting a semicolon; 

5 and 

6 (D) by adding at the end the following: 

7 ‘‘(K) on-the-job training opportunities; and 

8 ‘‘(L) financial literacy skills.’’. 

9 (3) ADDITIONAL REQUIREMENTS.—Section 

10 129(c)(3)(A) (29 U.S.C. 2854(c)(3)(A)) is amended 

11 in the matter preceding clause (i) by striking ‘‘or ap12 plicant who meets the minimum income criteria to 

13 be considered an eligible youth’’. 

14 (4) PRIORITY AND EXCEPTIONS.—Section 

15 129(c) (29 U.S.C. 2854(c)) is further amended— 

16 (A) by striking paragraphs (4) and (5); 

17 (B) by redesignating paragraph (6) as 

18 paragraph (4); 

19 (C) by redesignating paragraph (7) as 

20 paragraph (5), and in such redesignated para21 graph (5) by striking ‘‘youth councils’’ and in22 serting ‘‘local boards’’; and 

23 (D) by redesignating paragraph (8) as 

24 paragraph (6). 
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1 SEC. 112. COMPREHENSIVE PROGRAMS FOR ADULTS. 

2 (a) TITLE AMENDMENT.— 

3 (1) The title heading of chapter 5 is amended 

4 to read as follows: 

5 ‘‘CHAPTER 5—COMPREHENSIVE EMPLOY6 MENT AND TRAINING ACTIVITIES FOR 

7 ADULTS’’. 

8 (2) CLERICAL AMENDMENT.—The table of con9 tents in section 1(b) is amended by amending the 

10 item related to the heading for chapter 5 to read as 

11 follows: 

‘‘Chapter 5—Comprehensive Employment and Training Activities for Adults.’’. 

12 (b) GENERAL AUTHORIZATION.—Section 131 (29 

13 U.S.C. 2861) is amended— 

14 (1) by striking ‘‘paragraphs (1)(B) and 

15 (2)(B)of’’; and 

16 (2) by striking ‘‘, and dislocated workers,’’. 

17 (c) STATE ALLOTMENTS.— 

18 (1) IN GENERAL.—Section 132(a) (29 U.S.C. 

19 2862(a)) is amended to read as follows: 

20 ‘‘(a) IN GENERAL.—The Secretary shall— 

21 ‘‘(1) reserve 10 percent of the amount appro22 priated under section 137(b) for a fiscal year, of 

23 which— 
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1 ‘‘(A) not less than 75 percent shall be used 

2 for national dislocated worker grants under sec3 tion 173; 

4 ‘‘(B) not more than 20 percent may be 

5 used for demonstration projects under section 

6 171; and 

7 ‘‘(C) not more than 5 percent may be used 

8 to provide technical assistance under section 

9 170; and 

10 ‘‘(2) make allotments from 90 percent of the 

11 amount appropriated under section 137(b) for a fis12 cal year in accordance with subsection (b).’’. 

13 (2) ALLOTMENT AMONG STATES.—Section 

14 132(b) (29 U.S.C. 2862(b)) is amended to read as 

15 follows: 

16 ‘‘(b) ALLOTMENT AMONG STATES FOR ADULT EM17 PLOYMENT AND TRAINING ACTIVITIES.— 

18 ‘‘(1) RESERVATION FOR OUTLYING AREAS.— 

19 ‘‘(A) IN GENERAL.—From the amount 

20 made available under subsection (a)(2) for a 

21 fiscal year, the Secretary shall reserve not more 

than 1 22 ⁄4 of 1 percent to provide assistance to 

23 outlying areas to carry out employment and 

24 training activities for adults and statewide 

25 workforce investment activities. 
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1 ‘‘(B) RESTRICTION.—The Republic of 

2 Palau shall cease to be eligible to receive fund3 ing under this paragraph upon entering into an 

4 agreement for extension of United States edu5 cational assistance under the Compact of Free 

6 Association (approved by the Compact of Free 

7 Association Amendments Act of 2003 (Public 

8 Law 108–188)) after the date of enactment of 

9 the Job Training Improvement Act of 2005. 

10 ‘‘(2) STATES.—Subject to paragraph (5), of the 

11 remainder of the amount referred to under sub12 section (a)(2) for a fiscal year that is available after 

13 determining the amount to be reserved under para14 graph (1), the Secretary shall allot to the States for 

15 employment and training activities for adults and for 

16 statewide workforce investment activities— 

17 ‘‘(A) 26 percent in accordance with para18 graph (3); and 

19 ‘‘(B) 74 percent in accordance with para20 graph (4). 

21 ‘‘(3) BASE FORMULA.— 

22 ‘‘(A) FISCAL YEAR 2006.— 

23 ‘‘(i) IN GENERAL.—Subject to clause 

24 (ii), the amount referred to in paragraph 

25 (2)(A) shall be allotted for fiscal year 2006 
56 

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1 on the basis of allotment percentage of 

2 each State under section 6 of the Wagner3 Peyser Act for fiscal year 2005. 

4 ‘‘(ii) EXCESS AMOUNTS.—If the 

5 amount referred to in paragraph (2)(A) for 

6 fiscal year 2006 exceeds the amount that 

7 was available for allotment to the States 

8 under the Wagner-Peyser Act for fiscal 

9 year 2005, such excess amount shall be al10 lotted on the basis of the relative number 

11 of individuals in the civilian labor force in 

12 each State, compared to the total number 

13 of individuals in the civilian labor force in 

14 all States, adjusted to ensure that no State 

receives less than 3 15 ⁄10 of one percent of 

16 such excess amount. 

17 ‘‘(iii) DEFINITION.—For purposes of 

18 this subparagraph, the term ‘allotment 

19 percentage’ means the percentage of the 

20 amounts allotted to States under section 6 

21 of the Wagner-Peyser Act that is received 

22 by the State involved for fiscal year 2005. 

23 ‘‘(B) FISCAL YEARS 2007 AND THERE24 AFTER.— 
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1 ‘‘(i) IN GENERAL.—Subject to clause 

2 (ii), the amount referred to in para3 graph(2)(A) shall be allotted for fiscal year 

4 2007 and each fiscal year thereafter on the 

5 basis of the allotment percentage of each 

6 State under this paragraph for the pre7 ceding fiscal year. 

8 ‘‘(ii) EXCESS AMOUNTS.—If the 

9 amount referred to in paragraph (2)(A) for 

10 fiscal year 2007 or any fiscal year there11 after exceeds the amount that was avail12 able for allotment under this paragraph for 

13 the prior fiscal year, such excess amount 

14 shall be allotted on the basis of the relative 

15 number of individuals in the civilian labor 

16 force in each State, compared to the total 

17 number of individuals in the civilian labor 

18 force in all States, adjusted to ensure that 

no State receives less than 3 19 ⁄10 of one per20 cent of such excess amount. 

21 ‘‘(iii) DEFINITION.—For purposes of 

22 this subparagraph, the term ‘allotment 

23 percentage’ means the percentage of the 

24 amounts allotted to States under this para-
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1 graph in a fiscal year that is received by 

2 the State involved for such fiscal year. 

3 ‘‘(4) CONSOLIDATED FORMULA.— 

4 ‘‘(A) IN GENERAL.—Subject to subpara5 graphs (B) and (C), of the amount referred to 

6 in paragraph (2)(B)— 

7 ‘‘(i) 60 percent shall be allotted on the 

8 basis of the relative number of unemployed 

9 individuals in each State, compared to the 

10 total number of unemployed individuals in 

11 all States; 

12 ‘‘(ii) 25 percent shall be allotted on 

13 the basis of the relative excess number of 

14 unemployed individuals in each State, com15 pared to the total excess number of unem16 ployed individuals in all States; and 

17 ‘‘(iii) 15 percent shall be allotted on 

18 the basis of the relative number of dis19 advantaged adults in each State, compared 

20 to the total number of disadvantaged 

21 adults in all States. 

22 ‘‘(B) MINIMUM AND MAXIMUM PERCENT23 AGES.— 

24 ‘‘(i) MINIMUM PERCENTAGE.—The 

25 Secretary shall ensure that no State shall 
59 

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1 receive an allotment under this paragraph 

2 for a fiscal year that is less than 90 per3 cent of the allotment percentage of the 

4 State under this paragraph for the pre5 ceding fiscal year. 

6 ‘‘(ii) MAXIMUM PERCENTAGE.—Sub7 ject to clause (i), the Secretary shall en8 sure that no State shall receive an allot9 ment for a fiscal year under this para10 graph that is more than 130 percent of the 

11 allotment of the State under this para12 graph for the preceding fiscal year. 

13 ‘‘(C) SMALL STATE MINIMUM ALLOT14 MENT.—Subject to subparagraph (B), the Sec15 retary shall ensure that no State shall receive 

16 an allotment under this paragraph that is less 

than 2 17 ⁄10 of 1 percent of the amount available 

18 under subparagraph (A). 

19 ‘‘(D) DEFINITIONS.—For the purposes of 

20 this paragraph: 

21 ‘‘(i) ALLOTMENT PERCENTAGE.—The 

22 term ‘allotment percentage’, used with re23 spect to fiscal year 2006 or a subsequent 

24 fiscal year, means a percentage of the 

25 amounts described in paragraph (2)(B) 
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1 that is received through an allotment made 

2 under this paragraph for the fiscal year. 

3 The term, with respect to fiscal year 2005, 

4 means the percentage of the amounts allot5 ted to States under this chapter (as in ef6 fect on the day before the date of enact7 ment of the Job Training Improvement 

8 Act of 2005) and under reemployment 

9 service grants received by the State in10 volved for fiscal year 2005. 

11 ‘‘(ii) DISADVANTAGED ADULT.—The 

12 term ‘disadvantaged adult’ means an indi13 vidual who is age 22 through 72 who re14 ceived an income, or is a member of a fam15 ily that received a total family income, 

16 that, in relation to family size, does not ex17 ceed the poverty line. 

18 ‘‘(iii) EXCESS NUMBER.—The term 

19 ‘excess number’ means, used with respect 

20 to the excess number of unemployed indi21 viduals within a State, the number that 

22 represents the number of unemployed individuals in excess of 41 23 ⁄2 percent of the ci24 vilian labor force in the State. 
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1 ‘‘(5) ADJUSTMENTS IN ALLOTMENTS BASED ON

2 DIFFERENCES WITH UNCONSOLIDATED FOR3 MULAS.— 

4 ‘‘(A) IN GENERAL.—The Secretary shall 

5 ensure that for any fiscal year no State has an 

6 allotment difference, as defined in subpara7 graph (C), that is less than zero. The Secretary 

8 shall adjust the amounts allotted to the States 

9 under this subsection in accordance with sub10 paragraph (B) if necessary to carry out this 

11 subparagraph.. 

12 ‘‘(B) ADJUSTMENTS IN ALLOTMENTS.— 

13 ‘‘(i) REDISTRIBUTION OF EXCESS

14 AMOUNTS.— 

15 ‘‘(I) IN GENERAL.—If necessary 

16 to carry out subparagraph (A), the 

17 Secretary shall reduce the amounts 

18 that would be allotted under para19 graphs (3) and (4) to States that have 

20 an excess allotment difference, as de21 fined in subclause (II), by the amount 

22 of such excess, and use such amounts 

23 to increase the allotments to States 

24 that have an allotment difference less 

25 than zero. 
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1 ‘‘(II) EXCESS AMOUNTS.—For 

2 purposes of subclause (I), the term 

3 ‘excess’ allotment difference means an 

4 allotment difference for a State that 

5 is— 

6 ‘‘(aa) in excess of 3 percent 

7 of the amount described in sub8 paragraph (C)(i)(II); or 

9 ‘‘(bb) in excess of a percent10 age established by the Secretary 

11 that is greater than 3 percent of 

12 the amount described in subpara13 graph (C)(i)(II) if the Secretary 

14 determines that such greater per15 centage is sufficient to carry out 

16 subparagraph (A). 

17 ‘‘(ii) USE OF AMOUNTS AVAILABLE

18 UNDER NATIONAL RESERVE ACCOUNT.—If 

19 the funds available under clause (i) are in20 sufficient to carry out subparagraph (A), 

21 the Secretary shall use funds reserved 

22 under section 132(a) in such amounts as 

23 are necessary to increase the allotments to 

24 States to meet the requirements of sub25 paragraph (A). Such funds shall be used in 
63 

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1 the same manner as the States use the 

2 other funds allotted under this subsection. 

3 ‘‘(C) DEFINITION OF ALLOTMENT DIF4 FERENCE.— 

5 ‘‘(i) IN GENERAL.—For purposes of 

6 this paragraph, the term ‘allotment dif7 ference’ means the difference between— 

8 ‘‘(I) the total amount a State 

9 would receive of the amounts available 

10 for allotment under subsection (b)(2) 

11 for a fiscal year pursuant to para12 graphs (3) and (4); and 

13 ‘‘(II) the total amount the State 

14 would receive of the amounts available 

15 for allotment under subsection (b)(2) 

16 for the fiscal year if such amounts 

17 were allotted pursuant to the uncon18 solidated formulas (applied as de19 scribed in clause (iii)) that were used 

20 in allotting funds for fiscal year 2005. 

21 ‘‘(ii) UNCONSOLIDATED FORMULAS.— 

22 For purposes of clause (i), the unconsoli23 dated formulas are: 

24 ‘‘(I) The requirements for the al25 lotment of funds to the States con-
64 

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1 tained in section 132(b)(1)(B) of this 

2 Act (as in effect on the day before the 

3 date of enactment of the Job Training 

4 Improvement Act of 2005) that were 

5 applicable to the allotment of funds 

6 under such section for fiscal year 

7 2005. 

8 ‘‘(II) The requirements for the 

9 allotment of funds to the States con10 tained in section 132(b)(2)(B) of this 

11 Act (as in effect on the day before the 

12 date of enactment of the Job Training 

13 Improvement Act of 2005) that were 

14 applicable to the allotment of funds 

15 under such section for fiscal year 

16 2005. 

17 ‘‘(III) The requirements for the 

18 allotment of funds to the States that 

19 were contained in section 6 of the 

20 Wagner-Peyser Act (as in effect on 

21 the day before the date of enactment 

22 of the Job Training Improvement Act 

23 of 2005) that were applicable to the 

24 allotment of funds under such Act for 

25 fiscal year 2005. 
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1 ‘‘(IV) The requirements for the 

2 allotment of funds to the States that 

3 were established by the Secretary for 

4 Reemployment Services Grants that 

5 were applicable to the allotment of 

6 funds for such grants for fiscal year 

7 2005. 

8 ‘‘(iii) PROPORTIONATE APPLICATION

9 OF UNCONSOLIDATED FORMULAS BASED

10 ON FISCAL YEAR 2005.—In calculating the 

11 amount under clause (i)(II), each of the 

12 unconsolidated formulas identified in 

13 clause (ii) shall be applied, respectively, 

14 only to the proportionate share of the total 

15 amount of funds available for allotment 

16 under subsection (b)(2) for a fiscal year 

17 that is equal to the proportionate share to 

18 which each of the unconsolidated formulas 

19 applied with respect to the total amount of 

20 funds allotted to the States under all of 

21 the unconsolidated formulas in fiscal year 

22 2005. 

23 ‘‘(iv) RULE OF CONSTRUCTION.—The 

24 amounts used to adjust the allotments to a 

25 State under subparagraph (B) for a fiscal 
66 

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1 year shall not be included in the calcula2 tion of the amounts under clause (i) for a 

3 subsequent fiscal year, including the cal4 culation of allocation percentages for a 

5 preceding fiscal year applicable to para6 graphs (3) and (4) and to the unconsoli7 dated formulas described in clause (ii).’’. 

8 (3) REALLOTMENT.—Section 132(c) (29 U.S.C. 

9 2862(c)) is amended— 

10 (A) by amending paragraph (2) to read as 

11 follows: 

12 ‘‘(2) AMOUNT.—The amount available for real13 lotment for a program year is equal to the amount 

14 by which the unexpended balance at the end of the 

15 program year prior to the program year for which 

16 the determination is made exceeds 30 percent of the 

17 total amount of funds available to the State under 

18 this section during such prior program year (includ19 ing amounts allotted to the State in all prior pro20 gram years that remained available). For purposes 

21 of this paragraph, the expended balance is the 

22 amount that is the difference between— 

23 ‘‘(A) the total amount of funds available to 

24 the State under this section during the program 

25 year prior to the program year for which the 
67 

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1 determination is made (including amounts allot2 ted to the State in all prior program years that 

3 remained available); and 

4 ‘‘(B) the accrued expenditures during such 

5 prior program year.’’; 

6 (B) in paragraph (3)— 

7 (i) by striking ‘‘for the prior program 

8 year’’ and inserting ‘‘for the program year 

9 in which the determination is made’’; and 

10 (ii) by striking ‘‘such prior program 

11 year’’ and inserting ‘‘such program year’’; 

12 and 

13 (C) by amending paragraph (4) to read as 

14 follows: 

15 ‘‘(4) ELIGIBILITY.—For purposes of this sub16 section, an eligible State means a State that does 

17 not have an amount available for reallotment under 

18 paragraph (2) for the program year for which the 

19 determination under paragraph (2) is made.’’; 

20 (D) in paragraph (5), by striking ‘‘obliga21 tion’’ and inserting ‘‘accrued expenditure’’. 

22 (d) WITHIN STATE ALLOCATIONS.— 

23 (1) RESERVATION FOR STATE ACTIVITIES.— 

24 Section 133(a) (29 U.S.C. 2863(a)) is amended to 

25 read as follows: 
68 

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1 ‘‘(a) RESERVATION FOR STATEWIDE ACTIVITIES.— 

2 The Governor of a State may reserve up to 50 percent 

3 of the total amount allotted to the State under section 132 

4 for a fiscal year to carry out the statewide activities de5 scribed in section 134(a).’’. 

6 (2) ALLOCATIONS TO LOCAL AREAS.—Section 

7 133(b) (29 U.S.C. 2863(b)) is amended to read as 

8 follows: 

9 ‘‘(b) ALLOCATIONS TO LOCAL AREAS.— 

10 ‘‘(1) IN GENERAL.—Of the amounts allotted to 

11 the State under section 132(b)(2) and not reserved 

12 under subsection (a)— 

13 ‘‘(A) 85 percent of such amounts shall be 

14 allocated by the Governor to local areas in ac15 cordance with paragraph (2); and 

16 ‘‘(B) 15 percent of such amounts shall be 

17 allocated by the Governor to local areas in ac18 cordance with paragraph (3). 

19 ‘‘(2) ESTABLISHED FORMULA.— 

20 ‘‘(A) IN GENERAL.—Of the amounts de21 scribed in paragraph (1)(A), the Governor shall 

22 allocate— 

23 ‘‘(i) 60 percent on the basis of the rel24 ative number of unemployed individuals in 

25 each local area, compared to the total 
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1 number of unemployed individuals in all 

2 local areas in the State; 

3 ‘‘(ii) 25 percent on the basis of the 

4 relative excess number of unemployed indi5 viduals in each local area, compared to the 

6 total excess number of unemployed individ7 uals in all local areas in the State; and 

8 ‘‘(iii) 15 percent shall be allotted on 

9 the basis of the relative number of dis10 advantaged adults in each local area, com11 pared to the total number of disadvantaged 

12 adults in all local areas in the State. 

13 ‘‘(B) MINIMUM AND MAXIMUM PERCENT14 AGES.—The Governor shall ensure that no local 

15 area shall receive an allocation for a fiscal year 

16 under this paragraph that is less than 90 per17 cent or greater than 130 percent of the alloca18 tion percentage of the local area for the pre19 ceding fiscal year. 

20 ‘‘(C) DEFINITIONS.— 

21 ‘‘(i) ALLOCATION PERCENTAGE.—The 

22 term ‘allocation percentage’, used with re23 spect to fiscal year 2006 or a subsequent 

24 fiscal year, means a percentage of amount 

25 described in paragraph (1)(A) that is re-
70 

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1 ceived through an allocation made under 

2 this paragraph for the fiscal year. The 

3 term, with respect to fiscal year 2005, 

4 means the percentage of the amounts allo5 cated to local areas under this chapter (as 

6 in effect on the day before the date of en7 actment of the Job Training Improvement 

8 Act of 2005) that is received by the local 

9 area involved for fiscal year 2005. 

10 ‘‘(ii) DISADVANTAGED ADULT.—The 

11 term ‘disadvantaged adult’ means an indi12 vidual who is age 22 through 72 who re13 ceived an income, or is a member of a fam14 ily that received a total family income, 

15 that, in relation to family size, does not ex16 ceed the poverty line. 

17 ‘‘(iii) EXCESS NUMBER.—The term 

18 ‘excess number’ means, used with respect 

19 to the excess number of unemployed indi20 viduals within a local area, the number 

21 that represents the number of unemployed 

22 individuals in excess of 4.5 percent of the 

23 civilian labor force in the local area. 

24 ‘‘(3) DISCRETIONARY ALLOCATION.—The Gov25 ernor shall allocate to local areas the amounts de-
71 

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1 scribed in paragraph (1)(B) based on a formula de2 veloped in consultation with the State board and 

3 local boards. Such formula shall be objective and 

4 geographically equitable and may include such demo5 graphic and economic factors as the Governor, after 

6 consultation with the State board and local boards, 

7 determines are appropriate. 

8 ‘‘(4) LOCAL ADMINISTRATIVE COST LIMIT.— 

9 ‘‘(A) IN GENERAL.—Of the amounts allo10 cated to a local area under this subsection and 

11 section 128(b) for a fiscal year, not more than 

12 10 percent of the amount may be used by the 

13 local boards for the administrative costs of car14 rying out local workforce investment activities 

15 under this chapter or chapter 4. 

16 ‘‘(B) USE OF FUNDS.—Funds made avail17 able for administrative costs under subpara18 graph (A) may be used for the administrative 

19 costs of any of the local workforce investment 

20 activities described in this chapter or chapter 4, 

21 regardless of whether the funds were allocated 

22 under this subsection or section 128(b).’’. 

23 (3) REALLOCATION AMONG LOCAL AREAS.— 

24 Section 133(c) (29 U.S.C. 2863(c)) is amended— 
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1 (A) in paragraph (1), by striking ‘‘para2 graph (2)(A) or (3) of’’; 

3 (B) by amending paragraph (2) to read as 

4 follows: 

5 ‘‘(2) AMOUNT.—The amount available for re6 allocation for a program year is equal to the amount 

7 by which the unexpended balance at the end of the 

8 program year prior to the program year for which 

9 the determination is made exceeds 30 percent of the 

10 total amount of funds available to the local area 

11 under this section during such prior program year 

12 (including amounts allotted to the local area in prior 

13 program years that remain available). For purposes 

14 of this paragraph, the unexpended balance is the 

15 amount that is the difference between— 

16 ‘‘(A) the total amount of funds available to 

17 the local area under this section during the pro18 gram year prior to the program year for which 

19 the determination is made (including amounts 

20 allocated to the local area in all prior program 

21 years that remained available); and 

22 ‘‘(B) the accrued expenditures during such 

23 prior program year.’’; 

24 (C) by amending paragraph (3)— 
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1 (i) by striking ‘‘subsection (b)(3)’’ 

2 each place it appears and inserting ‘‘sub3 section (b)’’; 

4 (ii) by striking ‘‘the prior program 

5 year’’ and inserting ‘‘the program year in 

6 which the determination is made’’; 

7 (iii) by striking ‘‘such prior program 

8 year’’ and inserting ‘‘such program year’’; 

9 and 

10 (iv) by striking the last sentence; and 

11 (D) by amending paragraph (4) to read as 

12 follows: 

13 ‘‘(4) ELIGIBILITY.—For purposes of this sub14 section, an eligible local area means a local area 

15 which does not have an amount available for re16 allocation under paragraph (2) for the program year 

17 for which the determination under paragraph (2) is 

18 made.’’. 

19 (e) USE OF FUNDS FOR EMPLOYMENT AND TRAIN20 ING ACTIVITIES.— 

21 (1) STATEWIDE EMPLOYMENT AND TRAINING

22 ACTIVITIES.— 

23 (A) IN GENERAL.—Section 134(a)(1) (29 

24 U.S.C. 2864(a)(1) is amended to read as fol25 lows: 
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1 ‘‘(1) IN GENERAL.— 

2 ‘‘(A) REQUIRED USE OF FUNDS.—Not less 

3 than 50 percent of the funds reserved by a Gov4 ernor under section 133(a) shall be used to sup5 port the provision of core services in local areas, 

6 consistent with the local plan, through one-stop 

7 delivery systems by distributing funds to local 

8 areas in accordance with subparagraph (B). 

9 Such funds may be used by States to employ 

10 State personnel to provide such services in des11 ignated local areas in consultation with local 

12 boards. 

13 ‘‘(B) METHOD OF DISTRIBUTING

14 FUNDS.—The method of distributing funds 

15 under this paragraph shall be developed in con16 sultation with the State board and local boards. 

17 Such method of distribution, which may include 

18 the formula established under section 

19 121(h)(3), shall be objective and geographically 

20 equitable, and may include factors such as the 

21 number of centers in the local area that have 

22 been certified, the population served by such 

23 centers, and the performance of such centers. 

24 ‘‘(C) OTHER USE OF FUNDS.—Funds re25 served by a Governor for a State— 
75 

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1 ‘‘(i) under section 133(a) and not 

2 used under subparagraph (A), may be used 

3 for statewide activities described in para4 graph (2); and 

5 ‘‘(ii) under section 133(a) and not 

6 used under subparagraph (A), and under 

7 section 128(a) may be used to carry out 

8 any of the statewide employment and 

9 training activities described in paragraph 

10 (3).’’. 

11 (B) STATEWIDE RAPID RESPONSE ACTIVI12 TIES.—Section 134(a)(2) (29 U.S.C. 

13 2864(a)(2)) is amended to read as follows: 

14 ‘‘(2) STATEWIDE RAPID RESPONSE ACTIVI15 TIES.—A State shall carry out statewide rapid re16 sponse activities using funds reserved as described in 

17 section 133(a). Such activities shall include— 

18 ‘‘(A) provision of rapid response activities, 

19 carried out in local areas by the State or by an 

20 entity designated by the State, working in con21 junction with the local boards and the chief 

22 elected officials in the local areas; and 

23 ‘‘(B) provision of additional assistance to 

24 local areas that experience disasters, mass lay25 offs or plant closings, or other events that pre-
76 

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1 cipitate substantial increases in the number of 

2 unemployed individuals, carried out in local 

3 areas by the State, working in conjunction with 

4 the local boards and the chief elected officials in 

5 the local areas.’’. 

6 (C) STATEWIDE EMPLOYMENT AND TRAIN7 ING ACTIVITIES.—Section 134(a)(3) (29 U.S.C. 

8 2864(a)(3)) is amended to read as follows: 

9 ‘‘(3) STATEWIDE ACTIVITIES.—Funds reserved 

10 by a Governor for a State as described in sections 

11 133(a) and 128(a) may be used for statewide activi12 ties including— 

13 ‘‘(A) supporting the provision of core serv14 ices described in section 134(c)(2) in the one15 stop delivery system; 

16 ‘‘(B) conducting evaluations under section 

17 136(e) of activities authorized under this chap18 ter and chapter 4 in coordination with evalua19 tions carried out by the Secretary under section 

20 172, research, and demonstration projects; 

21 ‘‘(C) providing incentive grants to local 

22 areas for regional cooperation among local 

23 boards (including local boards in a designated 

24 region as described in section 116(c)), for local 

25 coordination of activities carried out under this 
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1 Act, and for exemplary performance by local 

2 areas on the local performance measures; 

3 ‘‘(D) providing technical assistance and ca4 pacity building to local areas, one-stop opera5 tors, one-stop partners, and eligible providers, 

6 including the development and training of staff, 

7 the development of exemplary program activi8 ties, and the provision of technical assistance to 

9 local areas that fail to meet local performance 

10 measures; 

11 ‘‘(E) operating a fiscal and management 

12 accountability system under section 136(f); 

13 ‘‘(F) carrying out monitoring and oversight 

14 of activities carried out under this chapter and 

15 chapter 4; 

16 ‘‘(G) implementing innovative programs, 

17 such as incumbent worker training programs, 

18 programs and strategies designed to meet the 

19 needs of businesses in the State, including small 

20 businesses, and engage employers in workforce 

21 activities, and programs serving individuals 

22 with disabilities consistent with section 188; 

23 ‘‘(H) developing strategies for effectively 

24 serving hard-to-serve populations and for inte-
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1 grating programs and services among one-stop 

2 partners; 

3 ‘‘(I) implementing innovative programs for 

4 displaced homemakers, which for purposes of 

5 this subparagraph may include an individual 

6 who is receiving public assistance and is within 

7 2 years of exhausting lifetime eligibility under 

8 Part A of title IV of the Social Security Act (42 

9 U.S.C. 601 et seq.); 

10 ‘‘(J) implementing programs to increase 

11 the number of individuals training for and 

12 placed in nontraditional employment; and 

13 ‘‘(K) carrying out activities to facilitate re14 mote access to services provided through a one15 stop delivery system, including facilitating ac16 cess through the use of technology.’’. 

17 (D) LIMITATION ON STATE ADMINISTRA18 TIVE EXPENDITURES.—Section 134(a) is fur19 ther amended by adding the following new 

20 paragraph: 

21 ‘‘(4) LIMITATION.—Not more than 5 percent of 

22 the funds allotted under section 132(b) shall be used 

23 by the State for administrative activities carried out 

24 under this subsection and section 128(a).’’. 
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1 (2) LOCAL EMPLOYMENT AND TRAINING AC2 TIVITIES.—Section 134(b) (29 U.S.C. 2864(b)) is 

3 amended— 

4 (A) by striking ‘‘under paragraph (2)(A)’’ 

5 and all that follows through ‘‘section 

6 133(b)(2)(B)’’ and inserting ‘‘under section 

7 133(b)’’; 

8 (B) in paragraphs (1) and (2), by striking 

9 ‘‘or dislocated workers, respectively’’ both 

10 places it appears; and 

11 (C) by redesignating subsections (d) and 

12 (e) as subsections (c) and (d), respectively. 

13 (3) REQUIRED LOCAL EMPLOYMENT AND

14 TRAINING ACTIVITIES.— 

15 (A) ALLOCATED FUNDS.—Section 

16 134(c)(1) (29 U.S.C. 2864(c)(1)) (as redesig17 nated by paragraph (2)) is amended to read as 

18 follows: 

19 ‘‘(1) IN GENERAL.—Funds allocated to a local 

20 area for adults under section 133(b) shall be used— 

21 ‘‘(A) to establish a one-stop delivery sys22 tem as described in section 121(e); 

23 ‘‘(B) to provide the core services described 

24 in paragraph (2) through the one-stop delivery 

25 system in accordance with such paragraph; 
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1 ‘‘(C) to provide the intensive services de2 scribed in paragraph (3) to adults described in 

3 such paragraph; and 

4 ‘‘(D) to provide training services described 

5 in paragraph (4) to adults described in such 

6 paragraph.’’. 

7 (B) CORE SERVICES.—Section 134(c)(2) 

8 (29 U.S.C. 2864(c)(2)) (as redesignated by 

9 paragraph (2)) is amended— 

10 (i) by striking ‘‘who are adults or dis11 located workers’’; 

12 (ii) in subparagraph (A), by striking 

13 ‘‘under this subtitle’’ and inserting ‘‘under 

14 the one-stop partner programs described in 

15 section 121(b)’’; 

16 (iii) by amending subparagraph (D) to 

17 read as follows: 

18 ‘‘(D) labor exchange services, including— 

19 ‘‘(i) job search and placement assist20 ance, and where appropriate career coun21 seling; 

22 ‘‘(ii) appropriate recruitment services 

23 for employers; and 

24 ‘‘(iii) reemployment services provided 

25 to unemployment claimants.’’; 
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1 (iv) in subparagraph (I), by inserting 

2 ‘‘and the administration of the work test 

3 for the unemployment compensation sys4 tem’’ after ‘‘compensation’’; and 

5 (v) by amending subparagraph (J) to 

6 read as follows: 

7 ‘‘(J) assistance in establishing eligibility 

8 for programs of financial aid assistance for 

9 training and education programs that are not 

10 funded under this Act and are available in the 

11 local area; and’’. 

12 (C) INTENSIVE SERVICES.—Section 

13 134(c)(3) (29 U.S.C. 2864(c)(3) (as redesig14 nated by paragraph (2) of this subsection) is 

15 amended— 

16 (i) by amending subparagraph (A) to 

17 read as follows: 

18 ‘‘(A) IN GENERAL.— 

19 ‘‘(i) ELIGIBILITY.—Funds allocated to 

20 a local area under section 133(b) shall be 

21 used to provide intensive services for 

22 adults who— 

23 ‘‘(I) ARE UNEMPLOYED AND

24 WHO HAVE BEEN DETERMINED BY

25 THE ONE-STOP OPERATOR TO BE.— 
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1 ‘‘(aa) unlikely or unable to 

2 obtain suitable employment 

3 through core services; and 

4 ‘‘(bb) in need of intensive 

5 services in order to obtain suit6 able employment; or 

7 ‘‘(II) are employed, but who are 

8 determined by a one-stop operator to 

9 be in need of intensive services to ob10 tain or retain suitable employment. 

11 ‘‘(ii) DEFINITION.—The Governor 

12 shall define the term ‘suitable employment’ 

13 for purposes of this subparagraph.’’. 

14 (ii) in subparagraph (C)— 

15 (I) in clause (v), by striking ‘‘for 

16 participants seeking training services 

17 under paragraph (4)’’; and 

18 (II) by adding the following 

19 clauses after clause (vi): 

20 ‘‘(vii) Internships and work experi21 ence. 

22 ‘‘(viii) Literacy activities relating to 

23 basic work readiness, and financial literacy 

24 activities. 
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1 ‘‘(ix) Out-of-area job search assistance 

2 and relocation assistance.’’. 

3 (D) TRAINING SERVICES.—Section 

4 134(c)(4) (as redesignated by paragraph (2) of 

5 this subsection) is amended— 

6 (i) by amending subparagraph (A) to 

7 read as follows: 

8 ‘‘(A) IN GENERAL.— 

9 ‘‘(i) ELIGIBILITY.—Funds allocated to 

10 a local area under section 133(b) shall be 

11 used to provide training services to adults 

12 who— 

13 ‘‘(I) after an interview, evalua14 tion, or assessment, and case manage15 ment, have been determined by a one16 stop operator or one-stop partner, as 

17 appropriate, to— 

18 ‘‘(aa) be unlikely or unable 

19 to obtain or retain suitable em20 ployment through intensive serv21 ices under paragraph (3)(A); 

22 ‘‘(bb) be in need of training 

23 services to obtain or retain suit24 able employment; and 
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1 ‘‘(cc) have the skills and 

2 qualifications to successfully par3 ticipate in the selected program 

4 of training services; 

5 ‘‘(II) select programs of training 

6 services that are directly linked to the 

7 employment opportunities in the local 

8 area involved or in another area in 

9 which the adults receiving such serv10 ices are willing to commute or relo11 cate; 

12 ‘‘(III) who meet the requirements 

13 of subparagraph (B); and 

14 ‘‘(IV) who are determined eligible 

15 in accordance with the priority system 

16 in effect under subparagraph (E). 

17 ‘‘(ii) The Governor shall define the 

18 term ‘suitable employment’ for purposes of 

19 this subparagraph.’’; 

20 (ii) in subparagraph (B)(i), by strik21 ing ‘‘Except’’ and inserting ‘‘Notwith22 standing section 479B of the Higher Edu23 cation Act of 1965 (20 U.S.C. 1087uu) 

24 and except’’; 
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1 (iii) by amending subparagraph (E) to 

2 read as follows: 

3 ‘‘(E) PRIORITY.— 

4 ‘‘(i) IN GENERAL.—A priority shall be 

5 given to unemployed individuals for the 

6 provision of intensive and training services 

7 under this subsection. 

8 ‘‘(ii) ADDITIONAL PRIORITY.—If the 

9 funds in the local area, including the funds 

10 allocated under section 133(b), for serving 

11 recipients of public assistance and other 

12 low-income individuals, including single 

13 parents, displaced homemakers, and preg14 nant single women, is limited, the priority 

15 for the provision of intensive and training 

16 services under this subsection shall include 

17 such recipients and individuals. 

18 ‘‘(iii) DETERMINATIONS.—The Gov19 ernor and the appropriate local board shall 

20 direct the one-stop operators in the local 

21 area with regard to making determinations 

22 with respect to the priority of service under 

23 this subparagraph.’’; 

24 (iv) in subparagraph (F), by adding 

25 the following clause after clause (iii): 
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1 ‘‘(iv) ENHANCED INDIVIDUAL TRAIN2 ING ACCOUNTS.—Each local board may, 

3 through one-stop centers, assist individuals 

4 receiving individual training accounts 

5 through the establishment of such accounts 

6 that include, in addition to the funds pro7 vided under this paragraph, funds from 

8 other programs and sources that will assist 

9 the individual in obtaining training serv10 ices.’’; and 

11 (v) in subparagraph (G)(iv), by redes12 ignating subclause (IV) as subclause (V) 

13 and inserting after subclause (III) the fol14 lowing: 

15 ‘‘(IV) Individuals with disabil16 ities.’’. 

17 (4) PERMISSIBLE ACTIVITIES.—Section 134(d) 

18 (as redesignated by paragraph (2)) is amended— 

19 (A) by amending paragraph (1) to read as 

20 follows: 

21 ‘‘(1) DISCRETIONARY ONE-STOP DELIVERY AC22 TIVITIES.— 

23 ‘‘(A) IN GENERAL.—Funds allocated to a 

24 local area under section 133(b) may be used to 

25 provide, through the one-stop delivery system— 
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1 ‘‘(i) customized screening and referral 

2 of qualified participants in training serv3 ices to employers; 

4 ‘‘(ii) customized employment-related 

5 services to employers on a fee-for-service 

6 basis; 

7 ‘‘(iii) customer support to navigate 

8 among multiple services and activities for 

9 special participant populations that face 

10 multiple barriers to employment, including 

11 individuals with disabilities; 

12 ‘‘(iv) employment and training assist13 ance provided in coordination with child 

14 support enforcement activities of the State 

15 agency carrying out subtitle D of title IV 

16 of the Social Security Act; 

17 ‘‘(v) activities to improve services to 

18 local employers, including small employers 

19 in the local area, and increase linkages be20 tween the local workforce investment sys21 tem and employers; and 

22 ‘‘(vi) activities to facilitate remote ac23 cess to services provided through a one24 stop delivery system, including facilitating 

25 access through the use of technology. 
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1 ‘‘(B) WORK SUPPORT ACTIVITIES FOR

2 LOW-WAGE WORKERS.— 

3 ‘‘(i) IN GENERAL.—Funds allocated to 

4 a local area under 133(b) may be used to 

5 provide, through the one-stop delivery sys6 tem and in collaboration with the appro7 priate programs and resources of the one8 stop partners, work support activities de9 signed to assist low-wage workers in re10 taining and enhancing employment. 

11 ‘‘(ii) ACTIVITIES.—The activities de12 scribed in clause (i) may include assistance 

13 in accessing financial supports for which 

14 such workers may be eligible and the provi15 sion of activities available through the one16 stop delivery system in a manner that en17 hances the opportunities of such workers 

18 to participate, such as the provision of em19 ployment and training activities during 

20 nontraditional hours and the provision of 

21 on-site child care while such activities are 

22 being provided.’’; and 

23 (B) by adding after paragraph (3) the fol24 lowing new paragraph: 
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1 ‘‘(4) INCUMBENT WORKER TRAINING PRO2 GRAMS.— 

3 ‘‘(A) IN GENERAL.—The local board may 

4 use up to 10 percent of the funds allocated to 

5 a local area under section 133(b) to carry out 

6 incumbent worker training programs in accord7 ance with this paragraph. 

8 ‘‘(B) TRAINING ACTIVITIES.—The training 

9 programs for incumbent workers under this 

10 paragraph shall be carried out by the local area 

11 in conjunction with the employers of such work12 ers for the purpose of assisting such workers in 

13 obtaining the skills necessary to retain employ14 ment and avert layoffs. 

15 ‘‘(C) EMPLOYER MATCH REQUIRED.— 

16 ‘‘(i) IN GENERAL.—Employers partici17 pating in programs under this paragraph 

18 shall be required to pay a proportion of the 

19 costs of providing the training to the in20 cumbent workers. The Governor shall es21 tablish, or may authorize the local board to 

22 establish, the required portion of such 

23 costs, which shall not be less than— 

24 ‘‘(I) 10 percent of the costs, for 

25 employers with 50 or fewer employees; 
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1 ‘‘(II) 25 percent of the costs, for 

2 employers with more than 50 employ3 ees but fewer than 100 employees; 

4 and 

5 ‘‘(III) 50 percent of the costs, for 

6 employers with 100 or more employ7 ees. 

8 ‘‘(ii) CALCULATION OF MATCH.—The 

9 wages paid by an employer to a worker 

10 while they are attending training may be 

11 included as part of the requirement pay12 ment of the employer.’’. 

13 SEC. 113. PERFORMANCE ACCOUNTABILITY SYSTEM. 

14 (a) STATE PERFORMANCE MEASURES.— 

15 (1) IN GENERAL.—Section 136(b)(1) (29 

16 U.S.C. 2871(b)(1)) is amended— 

17 (A) in subparagraph (A)(i), by striking 

18 ‘‘and the customer satisfaction indicator of per19 formance described in paragraph (2)(B)’’; and 

20 (B) in subparagraph (A)(ii), by striking 

21 ‘‘paragraph (2)(C)’’ and inserting ‘‘paragraph 

22 (2)(B)’’. 

23 (2) INDICATORS OF PERFORMANCE.—Section 

24 136(b)(2) (29 U.S.C. 2871(b)(2)) is amended— 
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1 (A) in subparagraph (A)(i), by striking 

2 ‘‘(except for self-service and information activi3 ties) and (for participants who are eligible 

4 youth age 19 through 21) for youth activities 

5 authorized under section 129’’; 

6 (B) by amending subparagraph (A)(i)(IV) 

7 to read as follows: 

8 ‘‘(IV) the efficiency of the pro9 gram in obtaining the outcomes de10 scribed in subclauses (I) through 

11 (III).’’; 

12 (C) by amending subparagraph (A)(ii) to 

13 read as follows: 

14 ‘‘(ii) CORE INDICATORS FOR ELIGIBLE

15 YOUTH.—The core indicators of perform16 ance for youth activities authorized under 

17 section 129 shall consist of— 

18 ‘‘(I) entry into employment, edu19 cation or advanced training, or mili20 tary service; 

21 ‘‘(II) attainment of secondary 

22 school diplomas or the General Edu23 cational Development credential 

24 (GED) (including recognized alter-
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1 native standards for individuals with 

2 disabilities); 

3 ‘‘(III) literacy or numeracy gains; 

4 and 

5 ‘‘(IV) the efficiency of the pro6 gram in obtaining the outcomes de7 scribed in subclauses (I) through 

8 (III).’’; 

9 (D) by striking subparagraph (B); and 

10 (E) by redesignating subparagraph (C) as 

11 subparagraph (B), and by adding at the end of 

12 such subparagraph (as so redesignated) the fol13 lowing new sentence: ‘‘Such indicators may in14 clude customer satisfaction of employers and 

15 participants with services received from the 

16 workforce investment activities authorized 

17 under this subtitle.’’. 

18 (3) LEVELS OF PERFORMANCE.—Section 

19 136(b)(3)(A) (29 U.S.C. 2871(b)(3)(A)) is amend20 ed— 

21 (A) in clause (i), by striking ‘‘and the cus22 tomer satisfaction indicator described in para23 graph (2)(B)’’; 
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1 (B) in clause (ii), by striking ‘‘and the cus2 tomer satisfaction indicator of performance, for 

3 the first 3’’ and inserting ‘‘for the 2’’; 

4 (C) in clause (iii)— 

5 (i) in the heading, by striking ‘‘FOR

6 FIRST 3 YEARS’’; and 

7 (ii) by striking ‘‘and the customer sat8 isfaction indicator of performance, for the 

9 first 3’’ and inserting ‘‘for the 2’’; 

10 (D) in clause (iv)— 

11 (i) by striking subclause (I); 

12 (ii) by redesignating subclauses (II) 

13 and (III) as subclauses (I) and (II), re14 spectively; and 

15 (iii) in subclause (I) (as so redesig16 nated)— 

17 (I) by striking ‘‘taking into ac18 count’’ and inserting ‘‘which shall be 

19 adjusted based on’’; 

20 (II) by inserting ‘‘such as unem21 ployment rates and job losses or gains 

22 in particular industries’’ after ‘‘eco23 nomic conditions’’; and 

24 (III) by inserting ‘‘such as indi25 cators of poor work history, lack of 
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1 work experience, low levels of literacy 

2 or English proficiency, disability sta3 tus, and welfare dependency’’ after 

4 ‘‘program’’; 

5 (E) by striking clause (v); and 

6 (F) by redesignating clause (vi) as clause 

7 (v). 

8 (4) ADDITIONAL INDICATORS.—Section 

9 136(b)(3)(B) is amended by striking ‘‘paragraph 

10 (2)(C)’’ and inserting ‘‘paragraph (2)(B)’’. 

11 (b) LOCAL PERFORMANCE MEASURES.—Section 

12 136(c) (29 U.S.C 2871(c)) is amended— 

13 (1) in paragraph (1)(A)(i), by striking ‘‘, and 

14 the customer satisfaction indicator of performance 

15 described in subsection (b)(2)(B),’’; 

16 (2) in paragraph (1)(A)(ii), by striking ‘‘sub17 section (b)(2)(C)’’ and inserting ‘‘subsection 

18 (b)(2)(B)’’; and 

19 (3) by amending paragraph (3) to read as fol20 lows: 

21 ‘‘(3) DETERMINATIONS.—In determining such 

22 local levels of performance, the local board, the chief 

23 elected official, and the Governor shall ensure such 

24 levels are adjusted based on the specific economic 

25 characteristics (such as unemployment rates and job 
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1 losses or gains in particular industries), demographic 

2 characteristics, or other characteristics of the popu3 lation to be served in the local area, such as poor 

4 work history, lack of work experience, low levels of 

5 literacy or English proficiency, disability status, and 

6 welfare dependency.’’. 

7 (c) REPORT.—Section 136(d) (29 U.S.C. 2871(d)) is 

8 amended— 

9 (1) in paragraph (1), by striking ‘‘and the cus10 tomer satisfaction indicator’’ in both places that it 

11 appears; 

12 (2) in paragraph (2)(E), by striking ‘‘(excluding 

13 participants who received only self-service and infor14 mational activities)’’; and 

15 (3) by adding at the end the following: 

16 ‘‘(4) DATA VALIDATION.—In preparing the re17 ports described in this subsection, the States shall 

18 establish procedures, consistent with guidelines 

19 issued by the Secretary, to ensure the information 

20 contained in the report is valid and reliable.’’. 

21 (d) SANCTIONS FOR STATE.—Section 136(g) (29 

22 U.S.C. 2871(g)) is amended— 

23 (1) in paragraph (1)(A), by striking ‘‘or (B)’’; 

24 and 
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1 (2) in paragraph (2), by striking ‘‘section 503’’ 

2 and inserting ‘‘section 136(i)’’. 

3 (e) SANCTIONS FOR LOCAL AREAS.—Section 136(h) 

4 (29 U.S.C. 2871(h)) is amended— 

5 (1) in paragraph (1), by striking ‘‘or (B)’’; and 

6 (2) by amending paragraph (2)(B) to read as 

7 follows: 

8 ‘‘(B) APPEAL TO GOVERNOR.—A local area 

9 that is subject to a reorganization plan under 

10 subparagraph (A) may, not later than 30 days 

11 after receiving notice of the reorganization plan, 

12 appeal to the Governor to rescind or revise such 

13 plan. In such case, the Governor shall make a 

14 final decision not later than 30 days after the 

15 receipt of the appeal.’’. 

16 (f) INCENTIVE GRANTS.—Section 136(i) (29 U.S.C. 

17 2871(i)) is amended to read as follows: 

18 ‘‘(i) INCENTIVE GRANTS FOR STATES AND LOCAL

19 AREAS.— 

20 ‘‘(1) INCENTIVE GRANTS FOR STATES.— 

21 ‘‘(A) IN GENERAL.—From funds appro22 priated under section 174, the Secretary may 

23 award grants to States for exemplary perform24 ance in carrying programs under this chapters 

25 4 and 5 of this title. Such awards may be based 
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1 on States meeting or exceeding the performance 

2 measures established under this section, on the 

3 performance of the State in serving special pop4 ulations, including the levels of service provided 

5 and the performance outcomes, and such other 

6 factors relating to the performance of the State 

7 under this title as the Secretary determines is 

8 appropriate. 

9 ‘‘(B) USE OF FUNDS.—The funds awarded 

10 to a State under this paragraph may be used to 

11 carry out any activities authorized under chap12 ters 4 and 5 of this title, including demonstra13 tions and innovative programs for special popu14 lations. 

15 ‘‘(3) INCENTIVE GRANTS FOR LOCAL AREAS.— 

16 ‘‘(A) IN GENERAL.—From funds reserved 

17 under sections 128(a) and 133(a), the Governor 

18 may award incentive grants to local areas for 

19 exemplary performance with respect to the 

20 measures established under this section and 

21 with the performance of the local area in serv22 ing special populations, including the levels of 

23 service and the performance outcomes. 

24 ‘‘(B) USE OF FUNDS.—The funds awarded 

25 to a local area may be used to carry out activi-
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1 ties authorized for local areas under chapters 4 

2 and 5 of this title, and such demonstration or 

3 other innovative programs to serve special pop4 ulations as may be approved by the Governor.’’. 

5 (g) USE OF CORE INDICATORS FOR OTHER PRO6 GRAMS.—Section 136 (29 U.S.C. 2871) is further amend7 ed by adding at the end the following subsection: 

8 ‘‘(j) USE OF CORE INDICATORS FOR OTHER PRO9 GRAMS.—In addition to the programs carried out under 

10 chapters 4 and 5, and consistent with the requirements 

11 of the applicable authorizing laws, the Secretary shall use 

12 the core indicators of performance described in subsection 

13 (b)(2)(A) to assess the effectiveness of the programs de14 scribed under section 121(b)(1)(B) that are carried out 

15 by the Secretary.’’. 

16 (h) REPEAL OF DEFINITIONS.—Sections 502 and 

17 503 (and the items related to such sections in the table 

18 of contents) are repealed. 

19 SEC. 114. AUTHORIZATION OF APPROPRIATIONS. 

20 (a) YOUTH ACTIVITIES.—Section 137(a) (29 U.S.C. 

21 2872(a)) is amended by striking ‘‘such sums as may be 

22 necessary for each of fiscal years 1999 through 2003’’ and 

23 inserting ‘‘$1,250,000,000 for fiscal year 2006 and such 

24 sums as may be necessary for each of fiscal years 2007 

25 through 2011’’. 
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1 (b) ADULT EMPLOYMENT AND TRAINING ACTIVI2 TIES.—Section 137(b) (29 U.S.C. 2872(b)) is amended by 

3 striking ‘‘section 132(a)(1), such sums as may be nec4 essary for each of fiscal years 1999 through 2003’’ and 

5 inserting ‘‘132(a), $3,140,000,000 for fiscal year 2006 

6 and such sums as may be necessary for each of fiscal years 

7 2007 through 2011’’. 

8 (c) DISLOCATED WORKER EMPLOYMENT AND

9 TRAINING ACTIVITIES.—Section 137 is further amended 

10 by striking subsection (c). 

11 SEC. 115. JOB CORPS. 

12 (a) COMMUNITY PARTICIPATION.—Section 153 (29 

13 U.S.C. 2893) is amended— 

14 (1) by amending subsection (a) to read as fol15 lows: 

16 ‘‘(a) BUSINESS AND COMMUNITY PARTICIPATION.— 

17 The director of each Job Corps center shall ensure the 

18 establishment and development of the business and com19 munity relationships and networks described in subsection 

20 (b) in order to enhance the effectiveness of such center.’’; 

21 (2) in subsection (b)— 

22 (A) in the heading, by striking ‘‘RESPON23 SIBILITIES’’ and inserting ‘‘NETWORKS’’; and 

24 (B) by striking ‘‘The responsibilities of the 

25 Liaison’’ and inserting ‘‘The activities carried 
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1 out by each Job Corps center under this sec2 tion’’; and 

3 (3) in subsection (c), by striking ‘‘The Liaison 

4 for’’ and inserting ‘‘The director of’’. 

5 (b) INDUSTRY COUNCILS.—Section 154(b) (29 

6 U.S.C. 2894(b)) is amended— 

7 (1) in paragraph (1)(A), by striking ‘‘local and 

8 distant’’; and 

9 (2) by adding after paragraph (2) the following: 

10 ‘‘(3) EMPLOYERS OUTSIDE OF LOCAL AREAS.— 

11 The industry council may include, or otherwise pro12 vide for consultation with, employers from outside 

13 the local area who are likely to hire a significant 

14 number of enrollees from the Job Corps center.’’. 

15 (c) INDICATORS OF PERFORMANCE AND ADDITIONAL

16 INFORMATION.—Section 159(c) (29 U.S.C. 2893(c)) is 

17 amended— 

18 (1) by amending paragraph (1) to read as fol19 lows: 

20 ‘‘(1) CORE INDICATORS.—The Secretary shall 

21 annually establish expected levels of performance for 

22 Job Corps centers and the Job Corps program relat23 ing to each of the core indicators for youth identified 

24 in section 136(b)(2)(A)(ii).’’; and 
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1 (2) in paragraph (2), by striking ‘‘measures’’ 

2 each place it appears and inserting ‘‘indicators’’. 

3 (d) AUTHORIZATION OF APPROPRIATIONS.—Section 

4 161 (29 U.S.C. 2901) is amended by striking ‘‘1999 

5 through 2003’’ and inserting ‘‘2006 through 2011’’. 

6 SEC. 116. NATIVE AMERICAN PROGRAMS. 

7 (a) ADVISORY COUNCIL.—Section 166(h)(4)(C) (29 

8 U.S.C. 2911(h)(4)(C)) is amended to read as follows: 

9 ‘‘(C) DUTIES.—The Council shall advise 

10 the Secretary on the operation and administra11 tion of the programs assisted under this sec12 tion.’’. 

13 (b) ASSISTANCE TO AMERICAN SAMOANS IN HA14 WAII.—Section 166 (29 U.S.C. 2911) is further amended 

15 by striking subsection (j). 

16 SEC. 117. MIGRANT AND SEASONAL FARMWORKER PRO17 GRAMS. 

18 Section 167(d) is amended by inserting ‘‘(including 

19 permanent housing)’’ after ‘‘housing’’. 

20 SEC. 118. VETERANS’ WORKFORCE INVESTMENT PRO21 GRAMS. 

22 Section 168(a)(3)(C) (29 U.S.C. 2913 (a)(3)(C)) is 

23 amended by striking ‘‘section 134(c)’’ and inserting ‘‘sec24 tion 121(e)’’. 
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1 SEC. 119. YOUTH CHALLENGE GRANTS. 

2 (a) IN GENERAL.—Section 169 (29 U.S.C. 2914) is 

3 amended to read as follows: 

4 ‘‘SEC. 169. YOUTH CHALLENGE GRANTS. 

5 ‘‘(a) IN GENERAL.—Of the amounts reserved by the 

6 Secretary under section 127(a)(1)(A) for a fiscal year— 

7 ‘‘(1) the Secretary shall use not less than 80 

8 percent to award competitive grants under sub9 section (b); and 

10 ‘‘(2) the Secretary may use not more than 20 

11 percent to award discretionary grants under sub12 section (c). 

13 ‘‘(b) COMPETITIVE GRANTS TO STATES AND LOCAL

14 AREAS.— 

15 ‘‘(1) ESTABLISHMENT.—From the funds de16 scribed in subsection (a)(1), the Secretary shall 

17 award competitive grants to eligible entities to carry 

18 out activities authorized under this section to assist 

19 eligible youth in acquiring the skills, credentials and 

20 employment experience necessary to succeed in the 

21 labor market. 

22 ‘‘(2) ELIGIBLE ENTITIES.—Grants under this 

23 subsection may be awarded to States, local boards, 

24 recipients of grants under section 166 (relating to 

25 Native American programs), and public or private 
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1 entities (including consortia of such entities) apply2 ing in conjunction with local boards. 

3 ‘‘(3) GRANT PERIOD.—The Secretary may 

4 make a grant under this section for a period of 1 

5 year and may renew the grants for each of the 4 

6 succeeding years. 

7 ‘‘(4) AUTHORITY TO REQUIRE MATCH.—The 

8 Secretary may require that grantees under this sub9 section provide a non-Federal share of the cost of 

10 activities carried out under a grant awarded under 

11 this subsection. 

12 ‘‘(5) PARTICIPANT ELIGIBILITY.—Youth ages 

13 14 through 19 as of the time the eligibility deter14 mination is made may be eligible to participate in 

15 activities provided under this subsection. 

16 ‘‘(6) USE OF FUNDS.—Funds under this sub17 section may be used for activities that are designed 

18 to assist youth in acquiring the skills, credentials 

19 and employment experience that are necessary to 

20 succeed in the labor market, including the activities 

21 identified in section 129. The activities may include 

22 activities such as— 

23 ‘‘(A) training and internships for out-of24 school youth in sectors of economy experiencing 

25 or projected to experience high growth; 
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1 ‘‘(B) after-school dropout prevention activi2 ties for in-school youth; 

3 ‘‘(C) activities designed to assist special 

4 youth populations, such as court-involved youth 

5 and youth with disabilities; and 

6 ‘‘(D) activities combining remediation of 

7 academic skills, work readiness training, and 

8 work experience, and including linkages to post9 secondary education, apprenticeships, and ca10 reer-ladder employment. 

11 ‘‘(7) APPLICATIONS.—To be eligible to receive a 

12 grant under this subsection, an eligible entity shall 

13 submit an application to the Secretary at such time, 

14 in such manner, and containing such information as 

15 the Secretary may require, including— 

16 ‘‘(A) a description of the activities the eli17 gible entity will provide to eligible youth under 

18 this subsection; 

19 ‘‘(B) a description of the programs of dem20 onstrated effectiveness on which the provision 

21 of the activities under subparagraph (A) are 

22 based, and a description of how such activities 

23 will expand the base of knowledge relating to 

24 the provision of activities for youth; 
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1 ‘‘(C) a description of the private and pub2 lic, and local and State resources that will be le3 veraged to provide the activities described under 

4 subparagraph (A) in addition the funds pro5 vided under this subsection; and 

6 ‘‘(D) the levels of performance the eligible 

7 entity expects to achieve with respect to the in8 dicators of performance for youth specified in 

9 section 136(b)(2)(A)(ii). 

10 ‘‘(8) FACTORS FOR AWARD.—In awarding 

11 grants under this subsection the Secretary may con12 sider the quality of the proposed project, the goals 

13 to be achieved, the likelihood of successful implemen14 tation, the extent to which the project is based on 

15 proven strategies or the extent to which the project 

16 will expand the knowledge base on activities for 

17 youth, and the additional State, local or private re18 sources that will be provided. 

19 ‘‘(9) EVALUATION.—The Secretary may reserve 

20 up to 5 percent of the funds described in sub21 section(a)(1) to provide technical assistance to, and 

22 conduct evaluations of the projects funded under 

23 this subsection (using appropriate techniques as de24 scribed in section 172(c)). 
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1 ‘‘(c) DISCRETIONARY GRANTS FOR YOUTH ACTIVI2 TIES.— 

3 ‘‘(1) IN GENERAL.—From the funds described 

4 in subsection(a)(2), the Secretary may award grants 

5 to eligible entities to provide activities that will as6 sist youth in preparing for, and entering and retain7 ing, employment. 

8 ‘‘(2) ELIGIBLE ENTITIES.—Grants under this 

9 subsection may be awarded to public or private enti10 ties that the Secretary determines would effectively 

11 carry out activities relating to youth under this sub12 section. 

13 ‘‘(3) PARTICIPANT ELIGIBILITY.—Youth ages 

14 14 through 19 at the time the eligibility determina15 tion is made may be eligible to participate in activi16 ties under this subsection. 

17 ‘‘(4) USE OF FUNDS.—Funds provided under 

18 this subsection may be used for activities that will 

19 assist youth in preparing for, and entering and re20 taining, employment, including the activities de21 scribed in section 129 for out-of-school youth, activi22 ties designed to assist in-school youth to stay in 

23 school and gain work experience, and such other ac24 tivities that the Secretary determines are appro25 priate. 
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1 ‘‘(5) APPLICATIONS.—To be eligible to receive a 

2 grant under this subsection, an eligible entity shall 

3 submit an application to the Secretary at such time, 

4 in such manner, and containing such information as 

5 the Secretary may require. 

6 ‘‘(6) ADDITIONAL REQUIREMENTS.—The Sec7 retary may require the provision of a non-Federal 

8 share for projects funded under this subsection and 

9 may require participation of grantees in evaluations 

10 of such projects, including evaluations using the 

11 techniques as described in section 172(c).’’. 

12 (b) CLERICAL AMENDMENT.—The table of contents 

13 in section1(b) is amended by amending the item related 

14 to section 169 to read as follows: 

‘‘Sec. 169. Youth challenge grants.’’. 

15 SEC. 120. TECHNICAL ASSISTANCE. 

16 Section 170 (29 U.S.C. 2915) is amended— 

17 (1) by striking subsection (b); 

18 (2) by striking 

19 ‘‘(a) GENERAL TECHNICAL ASSISTANCE.—’’. 

20 (3) by redesignating paragraphs (1), (2), and 

21 (3) as subsections (a), (b), and (c) respectively, and 

22 moving such subsections 2 ems to the left; 

23 (4) in subsection (a) (as redesignated by para24 graph (3))— 
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1 (A) by inserting ‘‘the training of staff pro2 viding rapid response services, the training of 

3 other staff of recipients of funds under this 

4 title, peer review activities under this title, as5 sistance regarding accounting and program op6 eration practices (when such assistance would 

7 not be duplicative to assistance provided by the 

8 State),’’ after ‘‘localities,’’; and 

9 (B) by striking ‘‘from carrying out activi10 ties’’ and all that follows up to the period and 

11 inserting ‘‘to implement the amendments made 

12 by the Job Training Improvement Act of 

13 2005’’; and 

14 (5) by inserting, after subsection (c) (as redes15 ignated by paragraph (3)), the following: 

16 ‘‘(d) BEST PRACTICES COORDINATION.—The Sec17 retary shall establish a system whereby States may share 

18 information regarding best practices with regards to the 

19 operation of workforce investment activities under this 

20 Act.’’. 

21 SEC. 121. DEMONSTRATION, PILOT, MULTISERVICE, RE22 SEARCH AND MULTI-STATE PROJECTS. 

23 (a) DEMONSTRATION AND PILOT PROJECTS.—Sec24 tion 171(b) (29 U.S.C. 2916(b)) is amended— 

25 (1) in paragraph (1)— 
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1 (A) by striking ‘‘Under a’’ and inserting 

2 ‘‘Consistent with the priorities specified in the’’; 

3 (B) by amending subparagraphs (A) 

4 through (D) to read as follows: 

5 ‘‘(A) projects that assist national employ6 ers in connecting with the workforce investment 

7 system established under this title in order to 

8 facilitate the recruitment and employment of 

9 needed workers and to provide information to 

10 such system on skills and occupations in de11 mand; 

12 ‘‘(B) projects that promote the develop13 ment of systems that will improve the effective14 ness and efficiency of programs carried out 

15 under this title; 

16 ‘‘(C) projects that focus on opportunities 

17 for employment in industries and sectors of in18 dustries that are experiencing or are likely to 

19 experience high rates of growth; 

20 ‘‘(D) projects carried out by States and 

21 local areas to test innovative approaches to de22 livering employment-related services;’’; 

23 (C) by striking subparagraph (E); 
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1 (D) by redesignating subparagraphs (F) 

2 and (G) as subparagraphs (E) and (F), respec3 tively; 

4 (E) by inserting after subparagraph (F) 

5 (as so redesignated) the following: 

6 ‘‘(G) projects that provide retention grants 

7 to qualified job training programs upon place8 ment or retention of a low-income individual 

9 trained by that program in employment with a 

10 single employer for a period of 1 year, provided 

11 that such employment is providing to the low12 income individual an income not less than twice 

13 the poverty line for that individual.’’; and 

14 (F) by striking subparagraph (H); and 

15 (2) in paragraph (2)— 

16 (A) by striking subparagraph (B); and 

17 (B) by redesignating subparagraph (C) as 

18 subparagraph (B). 

19 (b) MULTISERVICE PROJECTS.—Section 

20 171(c)(2)(B) (29 U.S.C. 2916(c)(2)(B)) is amended to 

21 read as follows: 

22 ‘‘(B) NET IMPACT STUDIES AND RE23 PORTS.—The Secretary shall conduct studies to 

24 determine the net impacts of programs, serv25 ices, and activities carried out under this title. 
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1 The Secretary shall prepare and disseminate to 

2 Congress and the public reports containing the 

3 results of such studies.’’. 

4 SEC. 122. COMMUNITY-BASED JOB TRAINING. 

5 Section 171(d) of the Workforce Investment Act of 

6 1998 is amended to read as follows: 

7 ‘‘(d) COMMUNITY-BASED JOB TRAINING.—In addi8 tion to the demonstration projects under subsection (b), 

9 the Secretary may establish and implement a national 

10 demonstration project designed to develop local solutions 

11 to the workforce challenge facing high-growth, high-skill 

12 industries with labor shortages, and increase opportunities 

13 for workers to gain access to employment in high-growth, 

14 high-demand occupations.’’. 

15 SEC. 123. PERSONAL REEMPLOYMENT ACCOUNTS. 

16 Section 171 of the Workforce Investment Act of 1998 

17 is further amended by adding at the end the following: 

18 ‘‘(e) PERSONAL REEMPLOYMENT ACCOUNTS.— 

19 ‘‘(1) DEFINITION.—In this subsection, the term 

20 ‘State’ means each of the several States of the 

21 United States, the District of Columbia, the Com22 monwealth of Puerto Rico, and the United States 

23 Virgin Islands. 

24 ‘‘(2) DEMONSTRATION PROJECT.—In addition 

25 to the demonstration projects under subsection (b), 
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1 the Secretary may establish and implement a na2 tional demonstration project designed to analyze and 

3 provide data on workforce training programs that 

4 accelerate the reemployment of unemployed individ5 uals, promote the retention in employment of such 

6 individuals, and provide such individuals with en7 hanced flexibility, choice, and control in obtaining 

8 intensive reemployment, training, and supportive 

9 services. 

10 ‘‘(3) GRANTS.— 

11 ‘‘(A) IN GENERAL.—In carrying out the 

12 demonstration project, the Secretary shall make 

13 grants, on a competitive basis, to eligible enti14 ties to provide personal reemployment accounts 

15 to eligible individuals. In awarding grants under 

16 this subsection the Secretary shall take into 

17 consideration awarding grants to eligible enti18 ties from diverse geographic areas, including 

19 rural areas. 

20 ‘‘(B) DURATION.—The Secretary shall 

21 make the grants for periods of not less than 2 

22 years and may renew the grant for each of the 

23 succeeding 3 years. 

24 ‘‘(4) ELIGIBLE ENTITY.—In this subsection, the 

25 term ‘eligible entity’ means— 
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1 ‘‘(A) a State; or 

2 ‘‘(B) a local board or consortium of local 

3 boards. 

4 ‘‘(5) USE OF FUNDS.— 

5 ‘‘(A) IN GENERAL.—An eligible entity that 

6 receives a grant under this subsection shall use 

7 the grant funds to provide, through a local area 

8 or areas, eligible individuals with personal re9 employment accounts. An eligible individual 

10 may receive only 1 personal reemployment ac11 count. 

12 ‘‘(B) GEOGRAPHIC AREA AND AMOUNT.— 

13 ‘‘(i) IN GENERAL.—The eligible entity 

14 shall establish the amount of a personal re15 employment account for each eligible indi16 vidual participating, which shall be uni17 form throughout the area represented by 

18 the eligible entity, and shall not exceed 

19 $3,000. 

20 ‘‘(ii) OPTION FOR STATES.—If the eli21 gible entity is a State, the eligible entity 

22 may choose to use the grant statewide, if 

23 practicable, or only in specified local areas 

24 within a State. 

25 ‘‘(C) ELIGIBLE INDIVIDUALS.— 
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1 ‘‘(i) IN GENERAL.—Each eligible enti2 ty shall establish eligibility criteria for indi3 viduals for personal reemployment ac4 counts in accordance with this subpara5 graph. 

6 ‘‘(ii) ELIGIBILITY CRITERIA REQUIRE7 MENTS.— 

8 ‘‘(I) IN GENERAL.—Subject to 

9 subclause (II), an individual shall be 

10 eligible to receive a personal reemploy11 ment account under a grant awarded 

12 under this subsection if, beginning 

13 after the date of enactment of this 

14 subsection, the individual— 

15 ‘‘(aa) is identified by the 

16 State pursuant to section 

17 303(j)(1) of the Social Security 

18 Act (42 U.S.C. 503(j)(1)) as like19 ly to exhaust regular unemploy20 ment compensation and in need 

21 of job search assistance to make 

22 a successful transition to new 

23 employment, or the individual’s 

24 unemployment can be attributed 

25 in substantial part to unfair com-
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1 petition from Federal Prison In2 dustries, Incorporated; 

3 ‘‘(bb) is receiving regular 

4 unemployment compensation 

5 under any Federal or State un6 employment compensation pro7 gram administered by the State; 

8 and 

9 ‘‘(cc) is eligible for not less 

10 than 20 weeks of regular unem11 ployment compensation described 

12 in item (bb). 

13 ‘‘(II) ADDITIONAL ELIGIBILITY

14 AND PRIORITY CRITERIA.—An eligible 

15 entity may establish criteria that are 

16 in addition to the criteria described in 

17 subclause (I) for the eligibility of indi18 viduals to receive a personal reemploy19 ment account under this subsection. 

20 An eligible entity may also establish 

21 criteria for priority in the provision of 

22 a personal reemployment account to 

23 such eligible individuals under a grant 

24 awarded under this subsection. 

25 ‘‘(iii) TRANSITION RULE.— 
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1 ‘‘(I) PREVIOUSLY IDENTIFIED AS

2 LIKELY TO EXHAUST UNEMPLOYMENT

3 COMPENSATION.— 

4 ‘‘(aa) IN GENERAL.—At the 

5 option of the eligible entity, and 

6 subject to item (bb), an indi7 vidual may be eligible to receive a 

8 personal reemployment account 

9 under this subsection if the indi10 vidual— 

11 ‘‘(AA) during the 13- 

12 week period ending the week 

13 prior to the date of the en14 actment of the subsection, 

15 was identified by the State 

16 pursuant to section 

17 303(j)(1) of the Social Secu18 rity Act (42 U.S.C. 

19 503(j)(1)) as likely to ex20 haust regular unemployment 

21 compensation and in need of 

22 job search assistance to 

23 make a successful transition 

24 to new employment; and 
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1 ‘‘(BB) otherwise meets 

2 the requirements of clause 

3 (ii)(I)(bb) and (cc). 

4 ‘‘(bb) ADDITIONAL ELIGI5 BILITY AND PRIORITY CRI6 TERIA.—An eligible entity may 

7 establish criteria that is in addi8 tion to the criteria described in 

9 item (aa) for the eligibility of in10 dividuals to receive a personal re11 employment account under this 

12 subsection. An eligible entity may 

13 also establish criteria for priority 

14 in the provision of such accounts 

15 to such eligible individuals under 

16 this subsection. 

17 ‘‘(II) PREVIOUSLY EXHAUSTED

18 UNEMPLOYMENT COMPENSATION.—At 

19 the option of the eligible entity, an in20 dividual may be eligible to receive a 

21 personal reemployment account under 

22 a grant awarded under this subsection 

23 if the individual— 

24 ‘‘(aa) during the 26-week 

25 period ending the week prior to 
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1 the date of the enactment of this 

2 subsection, exhausted all rights 

3 to any unemployment compensa4 tion; and 

5 ‘‘(bb)(AA) is enrolled in 

6 training and needs additional 

7 support to complete such train8 ing, with a priority of service to 

9 be provided to such individuals 

10 who are training for shortage oc11 cupations or high-growth indus12 tries; or 

13 ‘‘(BB) is separated from 

14 employment in an industry or oc15 cupation that has experienced de16 clining employment, or no longer 

17 provides any employment, in the 

18 local labor market during the 2- 

19 year period ending on the date of 

20 the determination of eligibility of 

21 the individual under this sub22 paragraph. 

23 ‘‘(iv) NO INDIVIDUAL ENTITLE24 MENT.—Nothing in this subsection shall be 
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1 construed to entitle any individual to re2 ceive a personal reemployment account. 

3 ‘‘(D) LIMITATIONS.— 

4 ‘‘(i) INFORMATION AND ATTESTA5 TION.—Prior to the establishment of a per6 sonal reemployment account for an eligible 

7 individual, the eligible entity receiving a 

8 grant, through the one-stop delivery sys9 tem in the participating local area or 

10 areas, shall ensure that the individual— 

11 ‘‘(I) is informed of the require12 ments applicable to the personal reem13 ployment account, including the allow14 able uses of funds from the account, 

15 the limitations on access to services 

16 described in paragraph (7)(A)(iii) and 

17 a description of such services, and the 

18 conditions for receiving a reemploy19 ment bonus; 

20 ‘‘(II) has the option to develop a 

21 personal reemployment plan which will 

22 identify the employment goals and ap23 propriate combination of services se24 lected by the individual to achieve the 

25 employment goals; and 
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1 ‘‘(III) signs an attestation that 

2 the individual has been given the op3 tion to develop a personal reemploy4 ment plan in accordance with sub5 clause (II), will comply with the re6 quirements under this subsection re7 lating to the personal reemployment 

8 accounts, and will reimburse the ac9 count or, if the account has been ter10 minated, the grant awarded under 

11 this subsection, for any amounts ex12 pended from the account that are not 

13 allowable. 

14 ‘‘(ii) PERIODIC INTERVIEWS.—If a re15 cipient exhausts his or her rights to any 

16 unemployment compensation, and the re17 cipient has a remaining balance in his or 

18 her personal reemployment account, the 

19 one-stop delivery system shall conduct peri20 odic interviews with the recipient to assist 

21 the recipient in meeting his or her indi22 vidual employment goals. 

23 ‘‘(iii) USE OF PERSONAL REEMPLOY24 MENT ACCOUNTS.—The eligible entity re25 ceiving a grant shall ensure that eligible 
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1 individuals receiving a personal reemploy2 ment account use the account in accord3 ance with paragraph (7). 

4 ‘‘(6) APPLICATION FOR GRANTS.—To be eligible 

5 to receive a grant under this subsection, an eligible 

6 entity shall submit an application to the Secretary at 

7 such time, in such manner, and containing such in8 formation as the Secretary may require, including— 

9 ‘‘(A) if the eligible entity is a State— 

10 ‘‘(i) assurance that the application 

11 was developed in conjunction with the local 

12 board or boards and chief elected officials 

13 where the personal reemployment accounts 

14 shall be made available; and 

15 ‘‘(ii) a description of the methods and 

16 procedures for providing funds to local 

17 areas where the personal reemployment ac18 counts shall be made available; and 

19 ‘‘(B) a description of the criteria and 

20 methods to be used for determining eligibility 

21 for the personal reemployment account, includ22 ing whether the eligible entity intends to include 

23 the optional categories described in paragraph 

24 (5)(C)(iii), and the additional criteria and pri25 ority for service that the eligible entity intends 
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1 to apply, if any, pursuant to paragraph 

2 (5)(C)(ii)(II); 

3 ‘‘(C) a description of the methods or proce4 dures to be used to provide eligible individuals 

5 information relating to services and providers; 

6 ‘‘(D) a description of safeguards to ensure 

7 that funds from the personal reemployment ac8 counts are used for purposes authorized under 

9 this subsection and to ensure the quality and 

10 integrity of services and providers, consistent 

11 with the purpose of providing eligible individ12 uals with enhanced flexibility, choice, and con13 trol in obtaining intensive reemployment, train14 ing, and supportive services; 

15 ‘‘(E) a description of how the eligible enti16 ty will coordinate the activities carried out 

17 under this subsection with the employment and 

18 training activities carried out under section 134 

19 and other activities carried out by local boards 

20 through the one-stop delivery system in the 

21 State or local area; and 

22 ‘‘(F) an assurance that the eligible entity 

23 will comply with any evaluation and reporting 

24 requirements the Secretary may require. 
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1 ‘‘(7) USE OF PERSONAL REEMPLOYMENT AC2 COUNTS.— 

3 ‘‘(A) ALLOWABLE ACTIVITIES.— 

4 ‘‘(i) IN GENERAL.—Subject to the re5 quirements contained in clauses (ii) and 

6 (iii), a recipient of a personal reemploy7 ment account may use amounts in a per8 sonal reemployment account to purchase 1 

9 or more of the following: 

10 ‘‘(I) Intensive services, including 

11 those type of services specified in sec12 tion 134(d)(3)(C). 

13 ‘‘(II) Training services, including 

14 those types of services specified in sec15 tion 134(d)(4)(D). 

16 ‘‘(III) Supportive services, except 

17 for needs related payments. 

18 ‘‘(ii) DELIVERY OF SERVICES.—The 

19 following requirements relating to delivery 

20 of services shall apply to the grants under 

21 this subsection: 

22 ‘‘(I) Recipients may use funds 

23 from the personal reemployment ac24 count to purchase the services de25 scribed in clause (i) through the one- 
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1 stop delivery system on a fee-for-serv2 ice basis, or through other providers, 

3 consistent with the safeguards de4 scribed in paragraph (6)(D). 

5 ‘‘(II) The eligible entity, through 

6 the one-stop delivery system in the 

7 participating local area, may pay costs 

8 for such services directly on behalf of 

9 the recipient, through a voucher sys10 tem, or by reimbursement to the re11 cipient upon receipt of appropriate 

12 cost documentation. 

13 ‘‘(III) Each eligible entity, 

14 through the one-stop delivery system 

15 in the participating local area, shall 

16 make available to recipients informa17 tion on training providers specified in 

18 section 134(d)(4)(F)(ii), information 

19 available to the one-stop delivery sys20 tem on providers of the intensive and 

21 supportive services described in clause 

22 (i), and information relating to occu23 pations in demand in the local area. 

24 ‘‘(iii) LIMITATIONS.—The following 

25 limitations shall apply with respect to per-
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1 sonal reemployment accounts under this 

2 subsection: 

3 ‘‘(I) Amounts in a personal reem4 ployment account may be used for up 

5 to 1 year from the date of the estab6 lishment of the account. 

7 ‘‘(II) Each recipient shall submit 

8 cost documentation as required by the 

9 one-stop delivery system. 

10 ‘‘(III) For the 1-year period fol11 lowing the establishment of the ac12 count, recipients may not receive in13 tensive, supportive, or training serv14 ices funded under this title except on 

15 a fee-for-services basis as specified in 

16 clause (ii)(I). 

17 ‘‘(IV) Amounts in a personal re18 employment account shall be non19 transferable. 

20 ‘‘(B) REEMPLOYMENT BONUS.— 

21 ‘‘(i) IN GENERAL.—Subject to clause 

22 (ii)— 

23 ‘‘(I) if a recipient determined eli24 gible under paragraph (5)(C)(ii) ob25 tains full-time employment before the 
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1 13th week of unemployment for which 

2 unemployment compensation is paid, 

3 the balance of his or her personal re4 employment account shall be provided 

5 directly to the recipient in cash; and 

6 ‘‘(II) if a recipient determined el7 igible under paragraph (5)(C)(iii) ob8 tains full-time employment before the 

9 end of the 13th week after the date 

10 on which the account is established, 

11 the balance of his or her personal re12 employment account shall be provided 

13 directly to the recipient in cash. 

14 ‘‘(ii) LIMITATIONS.—The following 

15 limitations shall apply with respect to a re16 cipient described in clause (i): 

17 ‘‘(I) 60 percent of the remaining 

18 personal reemployment account bal19 ance shall be paid to the recipient at 

20 the time of employment. 

21 ‘‘(II) 40 percent of the remaining 

22 personal reemployment account shall 

23 be paid to the recipient after 26 weeks 

24 of employment retention. 
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1 ‘‘(iii) EXCEPTION REGARDING SUBSE2 QUENT EMPLOYMENT.—If a recipient de3 scribed in clause (i) subsequently becomes 

4 unemployed due to a lack of work after re5 ceiving the portion of the reemployment 

6 bonus specified under clause (ii)(I), the in7 dividual may use the amount remaining in 

8 the personal reemployment account for the 

9 purposes described in subparagraph (A) 

10 but may not be eligible for additional cash 

11 payments under this subparagraph. 

12 ‘‘(8) PROGRAM INFORMATION AND EVALUA13 TION.— 

14 ‘‘(A) INFORMATION.—The Secretary may 

15 require from eligible entities the collection and 

16 reporting on such financial, performance, and 

17 other program-related information as the Sec18 retary determines is appropriate to carry out 

19 this subsection, including the evaluation de20 scribed in subparagraph (B). 

21 ‘‘(B) EVALUATION.— 

22 ‘‘(i) IN GENERAL.—The Secretary, 

23 pursuant to the authority provided under 

24 section 172, shall, directly or through 

25 grants, contracts, or cooperative agreement 
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1 with appropriate entities, conduct an eval2 uation of the activities carried out under 

3 any grants awarded under this subsection. 

4 ‘‘(ii) REPORT.—The report to Con5 gress under section 172(e) relating to the 

6 results of the evaluations required under 

7 section 172 shall include the recommenda8 tion of the Secretary with respect to the 

9 use of personal reemployment account as a 

10 mechanism to assist individuals in obtain11 ing and retaining employment.’’. 

12 SEC. 124. NATIONAL DISLOCATED WORKER GRANTS. 

13 (a) IN GENERAL.—Section 173 (29 U.S.C. 2916) is 

14 amended—

15 (1) by amending the designation and heading to 

16 read as follows: 

17 ‘‘SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.’’; 

18 and 

19 (2) in subsection (a)—

20 (A) by striking ‘‘national emergency 

21 grants’’ in the matter preceding paragraph (1) 

22 and inserting ‘‘national dislocated worker 

23 grants’’; and 

24 (B) in paragraph (1), by striking ‘‘sub25 section (c)’’ and inserting ‘‘subsection (b)’’. 
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1 (b) ADMINISTRATION.—Section 173 (29 U.S.C. 

2 2918) is further amended— 

3 (1) by striking subsection (b) and redesignating 

4 subsections (c) and (d) as subsections (b) and (c), 

5 respectively; and 

6 (2) by striking subsection (e) and redesignating 

7 subsections (f) and (g) as subsection (d) and (e), re8 spectively. 

9 (c) ELIGIBLE ENTITIES.—Section 173(b)(1)(B) (29 

10 U.S.C. 2918(b)(1)(B)) (as redesignated by subsection (b) 

11 of this section) is amended by striking ‘‘, and other enti12 ties’’ and all that follows and inserting a period. 

13 (d) PARTICIPANT ELIGIBILITY FOR MILITARY

14 SPOUSES.—Section 173(b)(2)(A) (29 U.S.C. 

15 2918(b)(2)(A)) (as redesignated by subsection (b)) is 

16 amended— 

17 (1) in clause (iii), by striking ‘‘; or’’ and insert18 ing a semicolon; 

19 (2) in clause (iv)(IV) by striking the period and 

20 inserting ‘‘; or’’; and 

21 (3) by inserting at the end the following: 

22 ‘‘(v) is the spouse of a member of the 

23 Armed Forces who is on active duty or 

24 full-time National Guard duty, or who was 

25 recently separated from such duties, and 
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1 such spouse is in need of employment and 

2 training assistance to obtain or retain em3 ployment.’’. 

4 (e) CONFORMING AMENDMENT.—The table of con5 tents in section 1(b) is amended by amending the item 

6 related to section 173 to read as follows: 

‘‘Sec. 173. National dislocated worker grants.’’. 

7 SEC. 125. AUTHORIZATION OF APPROPRIATIONS FOR NA8 TIONAL ACTIVITIES. 

9 (a) IN GENERAL.—Section 174(a)(1) (29 U.S.C. 

10 2919(a)(1)) is amended by striking ‘‘1999 through 2003’’ 

11 and inserting ‘‘2006 through 2011’’. 

12 (b) RESERVATIONS.—Section 174(b) is amended to 

13 read as follows: 

14 ‘‘(b) TECHNICAL ASSISTANCE; DEMONSTRATION AND

15 PILOT PROJECTS; EVALUATIONS; INCENTIVE GRANTS.— 

16 There are authorized to be appropriated to carry out sec17 tions 170 through 172 and section 136 such sums as may 

18 be necessary for each of fiscal years 2006 through 2011.’’. 

19 SEC. 126. REQUIREMENTS AND RESTRICTIONS. 

20 (a) IN GENERAL.—Section 181(c)(2)(A) (29 U.S.C. 

21 2931(c)(2)(A)) is amended in the matter preceding clause 

22 (i) by striking ‘‘shall’’ and inserting ‘‘may’’. 

23 (b) LIMITATIONS.—Section 181(e) is amended by 

24 striking ‘‘training for’’ and inserting ‘‘the entry into em-
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1 ployment, retention in employment, or increases in earn2 ings of’’. 

3 SEC. 127. NONDISCRIMINATION. 

4 Section 188(a)(2) (29 U.S.C. 2931(a)(2)) is amended 

5 to read as follows: 

6 ‘‘(2) PROHIBITION OF DISCRIMINATION RE7 GARDING PARTICIPATION, BENEFITS, AND EMPLOY8 MENT.— 

9 ‘‘(A) IN GENERAL.—Except as provided in 

10 subparagraph (B), no individual shall be ex11 cluded from participation in, denied the benefits 

12 of, subjected to discrimination under, or denied 

13 employment in the administration of or in con14 nection with any such program or activity be15 cause of race, color, religion, sex, (except as 

16 otherwise permitted under title IX of the Edu17 cation Amendments of 1972), national origin, 

18 age, disability, or political affiliation. 

19 ‘‘(B) EXEMPTION FOR RELIGIOUS ORGANI20 ZATIONS.—Subparagraph (A) shall not apply to 

21 a recipient of financial assistance under this 

22 title that is a religious corporation, association, 

23 educational institution, or society, with respect 

24 to the employment of individuals of a particular 

25 religion to perform work connected with the 
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1 carrying on by such corporation, association, 

2 educational institution, or society of its activi3 ties Such recipients shall comply with the other 

4 requirements contained in subparagraph (A).’’. 

5 SEC. 128. ADMINISTRATIVE PROVISIONS. 

6 (a) PROGRAM YEAR.—Section 189(g)(1) (29 U.S.C. 

7 2939(g)(1)) is amended to read as follows: 

8 ‘‘(1) IN GENERAL.—Appropriations for any fis9 cal year for programs and activities carried out 

10 under this title shall be available for obligation only 

11 on the basis of a program year. The program year 

12 shall begin on July 1 in the fiscal year for which the 

13 appropriation is made.’’. 

14 (b) AVAILABILITY.—Section 189(g)(2) (29 U.S.C. 

15 2939(g)(2)) is amended by striking ‘‘each State’’ and in16 serting ‘‘each recipient’’. 

17 (c) GENERAL WAIVERS.—Section 189(i)(4) (29 

18 U.S.C. 2939(i)(4)) is amended— 

19 (1) in subparagraph (A), in the matter pre20 ceding clause (i), by inserting ‘‘, or in accordance 

21 with subparagraph (D),’’ after ‘‘subparagraph (B)’’; 

22 and 

23 (2) by adding the following subparagraph: 

24 ‘‘(D) EXPEDITED PROCESS FOR EXTEND25 ING APPROVED WAIVERS TO ADDITIONAL
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1 STATES.—In lieu of the requirements of sub2 paragraphs (B) and (C), the Secretary may es3 tablish an expedited procedure for the purpose 

4 of extending to additional States the waiver of 

5 statutory or regulatory requirements that have 

6 been approved for a State pursuant to a request 

7 under subparagraph (B). Such procedure shall 

8 ensure that the extension of such waivers to ad9 ditional States are accompanied by appropriate 

10 conditions relating the implementation of such 

11 waivers.’’. 

12 SEC. 129. GENERAL PROGRAM REQUIREMENTS. 

13 Section 195 (29 U.S.C. 2945) is amended by adding 

14 at the end the following new paragraph: 

15 ‘‘(14) Funds provided under this title shall not 

16 be used to establish or operate stand-alone fee-for17 service enterprises that compete with private sector 

18 employment agencies within the meaning of section 

19 701(c) of the Civil Rights Act of 1964 (42 U.S.C. 

20 2000e(c)). For purposes of this paragraph, such an 

21 enterprise does not include one-stop centers.’’. 
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1 TITLE II—ADULT EDUCATION 

2 PART A—ADULT BASIC SKILLS AND FAMILY 

3 LITERACY EDUCATION 

4 SEC. 201. TABLE OF CONTENTS. 

5 The table of contents in section 1(b) is amended by 

6 amending the items relating to title II to read as follows:

‘‘TITLE II—ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION

‘‘Sec. 201. Short title. 

‘‘Sec. 202. Purpose. 

‘‘Sec. 203. Definitions. 

‘‘Sec. 204. Home schools. 

‘‘Sec. 205. Authorization of appropriations. 

‘‘CHAPTER 1—FEDERAL PROVISIONS

‘‘Sec. 211. Reservation of funds; grants to eligible agencies; allotments. 

‘‘Sec. 212. Performance accountability system. 

‘‘Sec. 213. Incentive grants for States. 

‘‘CHAPTER 2—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. 

‘‘CHAPTER 3—LOCAL PROVISIONS

‘‘Sec. 231. Grants and contracts for eligible providers. 

‘‘Sec. 232. Local application. 

‘‘Sec. 233. Local administrative cost limits. 

‘‘CHAPTER 4—GENERAL PROVISIONS

‘‘Sec. 241. Administrative provisions. 

‘‘Sec. 242. National Institute for Literacy. 

‘‘Sec. 243. National leadership activities.

7 SEC. 202. AMENDMENT. 

8 Title II is amended to read as follows: 
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1 ‘‘TITLE II—ADULT BASIC SKILLS 

2 AND FAMILY LITERACY EDU3 CATION 

4 ‘‘SEC. 201. SHORT TITLE. 

5 ‘‘This title may be cited as the ‘Adult Basic Skills 

6 and Family Literacy Education Act’. 

7 ‘‘SEC. 202. PURPOSE. 

8 ‘‘It is the purpose of this title to provide instructional 

9 opportunities for adults seeking to improve their basic 

10 reading, writing, speaking, and math skills, and support 

11 States and local communities in providing, on a voluntary 

12 basis, adult basic skills and family literacy programs, in 

13 order to— 

14 ‘‘(1) increase the basic reading, writing, speak15 ing, and math skills necessary for adults to obtain 

16 employment and self-sufficiency and to successfully 

17 advance in the workforce; 

18 ‘‘(2) assist adults in the completion of a sec19 ondary school education (or its equivalent) and the 

20 transition to a postsecondary educational institution; 

21 ‘‘(3) increase the basic reading, writing, speak22 ing, and math skills of parents to enable them to 

23 support the educational development of their chil24 dren and make informed choices regarding their 

25 children’s education; and 
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1 ‘‘(4) assist immigrants who are not proficient in 

2 English in improving their reading, writing, speak3 ing, and math skills and acquiring an understanding 

4 of the American free enterprise system, individual 

5 freedom, and the responsibilities of citizenship. 

6 ‘‘SEC. 203. DEFINITIONS. 

7 ‘‘In this title: 

8 ‘‘(1) ADULT BASIC SKILLS AND FAMILY LIT9 ERACY EDUCATION PROGRAMS.—The term ‘adult 

10 basic skills and family literacy education programs’ 

11 means a sequence of academic instruction and edu12 cational services below the postsecondary level that 

13 increase an individual’s ability to read, write, and 

14 speak in English and perform mathematical com15 putations leading to a level of proficiency equivalent 

16 to secondary school completion that is provided for 

17 individuals— 

18 ‘‘(A) who are at least 16 years of age; 

19 ‘‘(B) who are not enrolled or required to be 

20 enrolled in secondary school under State law; 

21 and 

22 ‘‘(C) who— 

23 ‘‘(i) lack sufficient mastery of basic 

24 reading, writing, speaking, and math skills 
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1 to enable the individuals to function effec2 tively in society; 

3 ‘‘(ii) do not have a secondary school 

4 diploma or the General Equivalency Di5 ploma (GED) (including recognized alter6 native standards for individuals with dis7 abilities), and have not achieved an equiva8 lent level of education; or 

9 ‘‘(iii) are unable to read, write, or 

10 speak the English language. 

11 ‘‘(2) ELIGIBLE AGENCY.—The term ‘eligible 

12 agency’— 

13 ‘‘(A) means the sole entity or agency in a 

14 State or an outlying area responsible for admin15 istering or supervising policy for adult basic 

16 skills and family literacy education programs in 

17 the State or outlying area, respectively, con18 sistent with the law of the State or outlying 

19 area, respectively; and 

20 ‘‘(B) may be the State educational agency, 

21 the State agency responsible for administering 

22 workforce investment activities, or the State 

23 agency responsible for administering community 

24 or technical colleges. 
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1 ‘‘(3) ELIGIBLE PROVIDER.—The term ‘eligible 

2 provider’ means— 

3 ‘‘(A) a local educational agency; 

4 ‘‘(B) a community-based or faith-based or5 ganization of demonstrated effectiveness; 

6 ‘‘(C) a volunteer literacy organization of 

7 demonstrated effectiveness; 

8 ‘‘(D) an institution of higher education; 

9 ‘‘(E) a public or private educational agen10 cy; 

11 ‘‘(F) a library; 

12 ‘‘(G) a public housing authority; 

13 ‘‘(H) an institution that is not described in 

14 any of subparagraphs (A) through (G) and has 

15 the ability to provide adult basic skills and fam16 ily literacy education programs to adults and 

17 families; or 

18 ‘‘(I) a consortium of the agencies, organi19 zations, institutions, libraries, or authorities de20 scribed in any of subparagraphs (A) through 

21 (H). 

22 ‘‘(4) ENGLISH LANGUAGE ACQUISITION PRO23 GRAM.—The term ‘English language acquisition pro24 gram’ means a program of instruction designed to 

25 help individuals with limited English proficiency 
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1 achieve competence in reading, writing, and speaking 

2 the English language. 

3 ‘‘(5) ESSENTIAL COMPONENTS OF READING IN4 STRUCTION.—The term ‘essential components of 

5 reading instruction’ has the meaning given to that 

6 term in section 1208 of the Elementary and Sec7 ondary Education Act of 1965. 

8 ‘‘(6) FAMILY LITERACY EDUCATION PRO9 GRAMS.—The term ‘family literacy education pro10 grams’ means educational programs that— 

11 ‘‘(A) assist parents and students, on a vol12 untary basis, in achieving the purposes of this 

13 title as described in section 202; and 

14 ‘‘(B) are of sufficient intensity in terms of 

15 hours and of sufficient duration to make sus16 tainable changes in a family, are based upon 

17 scientific research-based principles, and for the 

18 purpose of substantially increasing the ability of 

19 parents and children to read, write, and speak 

20 English integrate— 

21 ‘‘(i) interactive literacy activities be22 tween parents and their children; 

23 ‘‘(ii) training for parents regarding 

24 how to be the primary teacher for their 
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1 children and full partners in the education 

2 of their children; 

3 ‘‘(iii) parent literacy training that 

4 leads to economic self-sufficiency; and 

5 ‘‘(iv) an age-appropriate education to 

6 prepare children for success in school and 

7 life experiences. 

8 ‘‘(7) GOVERNOR.—The term ‘Governor’ means 

9 the chief executive officer of a State or outlying 

10 area. 

11 ‘‘(8) INDIVIDUAL WITH A DISABILITY.— 

12 ‘‘(A) IN GENERAL.—The term ‘individual 

13 with a disability’ means an individual with any 

14 disability (as defined in section 3 of the Ameri15 cans with Disabilities Act of 1990). 

16 ‘‘(B) INDIVIDUALS WITH DISABILITIES.— 

17 The term ‘individuals with disabilities’ means 

18 more than one individual with a disability. 

19 ‘‘(9) INDIVIDUAL WITH LIMITED ENGLISH PRO20 FICIENCY.—The term ‘individual with limited 

21 English proficiency’ means an adult or out-of-school 

22 youth who has limited ability in reading, writing, 

23 speaking, or understanding the English language, 

24 and— 
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1 ‘‘(A) whose native language is a language 

2 other than English; or 

3 ‘‘(B) who lives in a family or community 

4 environment where a language other than 

5 English is the dominant language. 

6 ‘‘(10) INSTITUTION OF HIGHER EDUCATION.— 

7 The term ‘institution of higher education’ has the 

8 meaning given to that term in section 101 of the 

9 Higher Education Act of 1965. 

10 ‘‘(11) LITERACY.—The term ‘literacy’ means an 

11 individual’s ability to read, write, and speak in 

12 English, compute, and solve problems proficiently. 

13 ‘‘(12) LOCAL EDUCATIONAL AGENCY.—The 

14 term ‘local educational agency’ has the meaning 

15 given to that term in section 9101 of the Elemen16 tary and Secondary Education Act of 1965. 

17 ‘‘(13) OUTLYING AREA.—The term ‘outlying 

18 area’ has the meaning given to that term in section 

19 101 of this Act. 

20 ‘‘(14) POSTSECONDARY EDUCATIONAL INSTITU21 TION.—The term ‘postsecondary educational institu22 tion’ means— 

23 ‘‘(A) an institution of higher education 

24 that provides not less than a 2-year program of 
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1 instruction that is acceptable for credit toward 

2 a bachelor’s degree; 

3 ‘‘(B) a tribally controlled community col4 lege; or 

5 ‘‘(C) a nonprofit educational institution of6 fering certificate or apprenticeship programs at 

7 the postsecondary level. 

8 ‘‘(15) READING.—The term ‘reading’ has the 

9 meaning given to that term in section 1208 of the 

10 Elementary and Secondary Education Act of 1965. 

11 ‘‘(16) SCIENTIFICALLY BASED READING RE12 SEARCH.—The term ‘scientifically based reading re13 search’ has the meaning given to that term in sec14 tion 1208 of the Elementary and Secondary Edu15 cation Act of 1965. 

16 ‘‘(17) SECRETARY.—The term ‘Secretary’ 

17 means the Secretary of Education. 

18 ‘‘(18) STATE.—The term ‘State’ means each of 

19 the several States of the United States, the District 

20 of Columbia, and the Commonwealth of Puerto Rico. 

21 ‘‘(19) STATE EDUCATIONAL AGENCY.—The 

22 term ‘State educational agency’ has the meaning 

23 given to that term in section 9101 of the Elemen24 tary and Secondary Education Act of 1965. 
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1 ‘‘(20) WORKPLACE LITERACY PROGRAM.—The 

2 term ‘workplace literacy program’ means an edu3 cational program that is offered in collaboration be4 tween eligible providers and employers or employee 

5 organizations for the purpose of improving the pro6 ductivity of the workforce through the improvement 

7 of reading, writing, speaking, and math skills. 

8 ‘‘SEC. 204. HOME SCHOOLS. 

9 ‘‘Nothing in this title shall be construed to affect 

10 home schools, whether or not a home school is treated as 

11 a home school or a private school under State law, or to 

12 compel a parent engaged in home schooling to participate 

13 in an English language acquisition program, a family lit14 eracy education program, or an adult basic skills and fam15 ily literacy education program. 

16 ‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS. 

17 ‘‘There are authorized to be appropriated to carry out 

18 this title $590,127,000 for fiscal year 2005 and such sums 

19 as may be necessary for fiscal years 2006 through 2011. 

20 ‘‘CHAPTER 1—FEDERAL PROVISIONS 

21 ‘‘SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE 

22 AGENCIES; ALLOTMENTS. 

23 ‘‘(a) RESERVATION OF FUNDS.—From the sums ap24 propriated under section 205 for a fiscal year, the Sec25 retary— 
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1 ‘‘(1) shall reserve up to 1.72 percent for incen2 tive grants under section 213; 

3 ‘‘(2) shall reserve 1.75 percent to carry out sec4 tion 242; and 

5 ‘‘(3) shall reserve up to 1.55 percent to carry 

6 out section 243. 

7 ‘‘(b) GRANTS TO ELIGIBLE AGENCIES.— 

8 ‘‘(1) IN GENERAL.—From the sums appro9 priated under section 205 and not reserved under 

10 subsection (a) for a fiscal year, the Secretary shall 

11 award a grant to each eligible agency having a State 

12 plan approved under section 224 in an amount equal 

13 to the sum of the initial allotment under subsection 

14 (c)(1) and the additional allotment under subsection 

15 (c)(2) for the eligible agency for the fiscal year, sub16 ject to subsections (f) and (g). 

17 ‘‘(2) PURPOSE OF GRANTS.—The Secretary 

18 may award a grant under paragraph (1) only if the 

19 eligible agency involved agrees to expend the grant 

20 in accordance with the provisions of this title. 

21 ‘‘(c) ALLOTMENTS.— 

22 ‘‘(1) INITIAL ALLOTMENTS.—From the sums 

23 appropriated under section 205 and not reserved 

24 under subsection (a) for a fiscal year, the Secretary 
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1 shall allot to each eligible agency having a State 

2 plan approved under section 224— 

3 ‘‘(A) $100,000, in the case of an eligible 

4 agency serving an outlying area; and 

5 ‘‘(B) $250,000, in the case of any other el6 igible agency. 

7 ‘‘(2) ADDITIONAL ALLOTMENTS.—From the 

8 sums appropriated under section 205, not reserved 

9 under subsection (a), and not allotted under para10 graph (1), for a fiscal year, the Secretary shall allot 

11 to each eligible agency that receives an initial allot12 ment under paragraph (1) an additional amount 

13 that bears the same relationship to such sums as the 

14 number of qualifying adults in the State or outlying 

15 area served by the eligible agency bears to the num16 ber of such adults in all States and outlying areas. 

17 ‘‘(d) QUALIFYING ADULT.—For the purpose of sub18 section (c)(2), the term ‘qualifying adult’ means an adult 

19 who— 

20 ‘‘(1) is at least 16 years of age; 

21 ‘‘(2) is beyond the age of compulsory school at22 tendance under the law of the State or outlying 

23 area; 

24 ‘‘(3) does not have a secondary school diploma 

25 or the General Equivalency Diploma (GED) (includ-
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1 ing recognized alternative standards for individuals 

2 with disabilities); and 

3 ‘‘(4) is not enrolled in secondary school. 

4 ‘‘(e) SPECIAL RULE.— 

5 ‘‘(1) IN GENERAL.—From amounts made avail6 able under subsection (c) for the Republic of the 

7 Marshall Islands, the Federated States of Micro8 nesia, and the Republic of Palau, the Secretary shall 

9 award grants to Guam, American Samoa, the Com10 monwealth of the Northern Mariana Islands, the Re11 public of the Marshall Islands, the Federated States 

12 of Micronesia, or the Republic of Palau to carry out 

13 activities described in this title in accordance with 

14 the provisions of this title as determined by the Sec15 retary. 

16 ‘‘(2) TERMINATION OF ELIGIBILITY.—Notwith17 standing any other provision of law, the Republic of 

18 the Marshall Islands, the Federated States of Micro19 nesia, and the Republic of Palau shall be eligible to 

20 receive a grant under this title until an agreement 

21 for the extension of United States education assist22 ance under the Compact of Free Association for 

23 each of the Freely Associated States becomes effec24 tive. 
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1 ‘‘(3) ADMINISTRATIVE COSTS.—The Secretary 

2 may provide not more than 5 percent of the funds 

3 made available for grants under this subsection to 

4 pay the administrative costs of the Pacific Region 

5 Educational Laboratory regarding activities assisted 

6 under this subsection. 

7 ‘‘(f) HOLD-HARMLESS PROVISIONS.— 

8 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

9 (c), and subject to paragraphs (2) and (3), for fiscal 

10 year 2004 and each succeeding fiscal year, no eligi11 ble agency shall receive an allotment under this title 

12 that is less than 90 percent of the allotment the eli13 gible agency received for the preceding fiscal year 

14 under this title. 

15 ‘‘(2) EXCEPTION.—An eligible agency that re16 ceives for the preceding fiscal year only an initial al17 lotment under subsection (c)(1) (and no additional 

18 allotment under subsection (c)(2)) shall receive an 

19 allotment equal to 100 percent of the initial allot20 ment. 

21 ‘‘(3) RATABLE REDUCTION.—If for any fiscal 

22 year the amount available for allotment under this 

23 title is insufficient to satisfy the provisions of para24 graph (1), the Secretary shall ratably reduce the 

25 payments to all eligible agencies, as necessary. 
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1 ‘‘(g) REALLOTMENT.—The portion of any eligible 

2 agency’s allotment under this title for a fiscal year that 

3 the Secretary determines will not be required for the pe4 riod such allotment is available for carrying out activities 

5 under this title, shall be available for reallotment from 

6 time to time, on such dates during such period as the Sec7 retary shall fix, to other eligible agencies in proportion to 

8 the original allotments to such agencies under this title 

9 for such year. 

10 ‘‘SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM. 

11 ‘‘(a) PURPOSE.—The purpose of this section is to es12 tablish a comprehensive performance accountability sys13 tem, composed of the activities described in this section, 

14 to assess the effectiveness of eligible agencies in achieving 

15 continuous improvement of adult basic skills and family 

16 literacy education programs funded under this title, in 

17 order to optimize the return on investment of Federal 

18 funds in adult basic skills and family literacy education 

19 programs. 

20 ‘‘(b) ELIGIBLE AGENCY PERFORMANCE MEAS21 URES.— 

22 ‘‘(1) IN GENERAL.—For each eligible agency, 

23 the eligible agency performance measures shall con24 sist of— 
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1 ‘‘(A)(i) the core indicators of performance 

2 described in paragraph (2)(A); and 

3 ‘‘(ii) employment performance indicators 

4 identified by the eligible agency under para5 graph (2)(B); and 

6 ‘‘(B) an eligible agency adjusted level of 

7 performance for each indicator described in 

8 subparagraph (A). 

9 ‘‘(2) INDICATORS OF PERFORMANCE.— 

10 ‘‘(A) CORE INDICATORS OF PERFORM11 ANCE.—The core indicators of performance 

12 shall include the following: 

13 ‘‘(i) Measurable improvements in 

14 basic skill levels in reading, writing, and 

15 speaking the English language and basic 

16 math, leading to proficiency in each skill. 

17 ‘‘(ii) Receipt of a secondary school di18 ploma or the General Equivalency Diploma 

19 (GED) (including recognized alternative 

20 standards for individuals with disabilities). 

21 ‘‘(iii) Placement in postsecondary edu22 cation or other training programs. 

23 ‘‘(B) EMPLOYMENT PERFORMANCE INDI24 CATORS.—Consistent with applicable Federal 

25 and State privacy laws, an eligible agency shall 
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1 identify in the State plan the following indi2 vidual participant employment performance in3 dicators— 

4 ‘‘(i) entry into employment; 

5 ‘‘(ii) retention in employment; and 

6 ‘‘(iii) increase in earnings. 

7 ‘‘(3) LEVELS OF PERFORMANCE.— 

8 ‘‘(A) ELIGIBLE AGENCY ADJUSTED LEVELS

9 OF PERFORMANCE FOR CORE INDICATORS.— 

10 ‘‘(i) IN GENERAL.—For each eligible 

11 agency submitting a State plan, there shall 

12 be established, in accordance with this sub13 paragraph, levels of performance for each 

14 of the core indicators of performance de15 scribed in paragraph (2)(A) for adult basic 

16 skills and family literacy education pro17 grams authorized under this title. The lev18 els of performance established under this 

19 subparagraph shall, at a minimum— 

20 ‘‘(I) be expressed in an objective, 

21 quantifiable, and measurable form; 

22 and 

23 ‘‘(II) show the progress of the el24 igible agency toward continuously and 

25 significantly improving the agency’s 
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1 performance outcomes in an objective, 

2 quantifiable, and measurable form. 

3 ‘‘(ii) IDENTIFICATION IN STATE

4 PLAN.—Each eligible agency shall identify, 

5 in the State plan submitted under section 

6 224, expected levels of performance for 

7 each of the core indicators of performance 

8 for the first 3 program years covered by 

9 the State plan. 

10 ‘‘(iii) AGREEMENT ON ELIGIBLE

11 AGENCY ADJUSTED LEVELS OF PERFORM12 ANCE FOR FIRST 3 YEARS.—In order to en13 sure an optimal return on the investment 

14 of Federal funds in adult basic skills and 

15 family literacy education programs author16 ized under this title, the Secretary and 

17 each eligible agency shall reach agreement 

18 on levels of student proficiency for each of 

19 the core indicators of performance, for the 

20 first 3 program years covered by the State 

21 plan, taking into account the levels identi22 fied in the State plan under clause (ii) and 

23 the factors described in clause (iv). The 

24 levels agreed to under this clause shall be 

25 considered to be the eligible agency ad-
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1 justed levels of performance for the eligible 

2 agency for such years and shall be incor3 porated into the State plan prior to the ap4 proval of such plan. 

5 ‘‘(iv) FACTORS.—The agreement de6 scribed in clause (iii) or (v) shall take into 

7 account— 

8 ‘‘(I) how the levels involved com9 pare with the eligible agency’s ad10 justed levels of performance, taking 

11 into account factors including the 

12 characteristics of participants when 

13 the participants entered the program; 

14 and 

15 ‘‘(II) the extent to which such 

16 levels promote continuous and signifi17 cant improvement in performance on 

18 the student proficiency measures used 

19 by such eligible agency and ensure op20 timal return on the investment of 

21 Federal funds. 

22 ‘‘(v) AGREEMENT ON ELIGIBLE AGEN23 CY ADJUSTED LEVELS OF PERFORMANCE

24 FOR SECOND 3 YEARS.—Prior to the fourth 

25 program year covered by the State plan, 
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1 the Secretary and each eligible agency 

2 shall reach agreement on levels of student 

3 proficiency for each of the core indicators 

4 of performance for the fourth, fifth, and 

5 sixth program years covered by the State 

6 plan, taking into account the factors de7 scribed in clause (iv). The levels agreed to 

8 under this clause shall be considered to be 

9 the eligible agency adjusted levels of per10 formance for the eligible agency for such 

11 years and shall be incorporated into the 

12 State plan. 

13 ‘‘(vi) REVISIONS.—If unanticipated 

14 circumstances arise in a State resulting in 

15 a significant change in the factors de16 scribed in clause (iv)(I), the eligible agency 

17 may request that the eligible agency ad18 justed levels of performance agreed to 

19 under clause (iii) or (v) be revised. 

20 ‘‘(B) LEVELS OF EMPLOYMENT PERFORM21 ANCE.—The eligible agency shall identify, in the 

22 State plan, eligible agency levels of performance 

23 for each of the employment performance indica24 tors described in paragraph (2)(B). Such levels 

25 shall be considered to be eligible agency ad-
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1 justed levels of performance for purposes of this 

2 title. 

3 ‘‘(c) REPORT.— 

4 ‘‘(1) IN GENERAL.—Each eligible agency that 

5 receives a grant under section 211(b) shall annually 

6 prepare and submit to the Secretary, the Governor, 

7 the State legislature, eligible providers, and the gen8 eral public within the State, a report on the progress 

9 of the eligible agency in achieving eligible agency 

10 performance measures, including the following: 

11 ‘‘(A) Information on the levels of perform12 ance achieved by the eligible agency with re13 spect to the core indicators of performance and 

14 employment performance indicators. 

15 ‘‘(B) The number and type of each eligible 

16 provider that receives funding under such 

17 grant. 

18 ‘‘(2) INFORMATION DISSEMINATION.—The Sec19 retary— 

20 ‘‘(A) shall make the information contained 

21 in such reports available to the general public 

22 through publication and other appropriate 

23 methods; 

24 ‘‘(B) shall disseminate State-by-State com25 parisons of the information; and 
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1 ‘‘(C) shall provide the appropriate commit2 tees of the Congress with copies of such re3 ports. 

4 ‘‘SEC. 213. INCENTIVE GRANTS FOR STATES. 

5 ‘‘(a) IN GENERAL.—From funds appropriated under 

6 section 211(a)(2), the Secretary may award grants to 

7 States for exemplary performance in carrying out pro8 grams under this title. Such awards shall be based on 

9 States meeting or exceeding the core indicators of per10 formance established under section 212(b)(2)(A) and may 

11 be based on the performance of the State in serving popu12 lations, such as those described in section 224(b)(10), in13 cluding the levels of service provided and the performance 

14 outcomes, and such other factors relating to the perform15 ance of the State under this title as the Secretary deter16 mines appropriate. 

17 ‘‘(b) USE OF FUNDS.—The funds awarded to a State 

18 under this paragraph may be used to carry out any activi19 ties authorized under this title, including demonstrations 

20 and innovative programs for hard-to-serve populations. 

21 ‘‘CHAPTER 2—STATE PROVISIONS 

22 ‘‘SEC. 221. STATE ADMINISTRATION. 

23 ‘‘Each eligible agency shall be responsible for the fol24 lowing activities under this title: 
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1 ‘‘(1) The development, submission, implementa2 tion, and monitoring of the State plan. 

3 ‘‘(2) Consultation with other appropriate agen4 cies, groups, and individuals that are involved in, or 

5 interested in, the development and implementation 

6 of activities assisted under this title. 

7 ‘‘(3) Coordination and avoidance of duplication 

8 with other Federal and State education, training, 

9 corrections, public housing, and social service pro10 grams. 

11 ‘‘SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING RE12 QUIREMENT. 

13 ‘‘(a) STATE DISTRIBUTION OF FUNDS.—Each eligi14 ble agency receiving a grant under this title for a fiscal 

15 year— 

16 ‘‘(1) shall use an amount not less than 82.5 

17 percent of the grant funds to award grants and con18 tracts under section 231 and to carry out section 

19 225, of which not more than 10 percent of such 

20 amount shall be available to carry out section 225; 

21 ‘‘(2) shall use not more than 12.5 percent of 

22 the grant funds to carry out State leadership activi23 ties under section 223; and 
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1 ‘‘(3) shall use not more than 5 percent of the 

2 grant funds, or $75,000, whichever is greater, for 

3 the administrative expenses of the eligible agency. 

4 ‘‘(b) MATCHING REQUIREMENT.— 

5 ‘‘(1) IN GENERAL.—In order to receive a grant 

6 from the Secretary under section 211(b), each eligi7 ble agency shall provide, for the costs to be incurred 

8 by the eligible agency in carrying out the adult basic 

9 skills and family literacy education programs for 

10 which the grant is awarded, a non-Federal contribu11 tion in an amount at least equal to— 

12 ‘‘(A) in the case of an eligible agency serv13 ing an outlying area, 12 percent of the total 

14 amount of funds expended for adult basic skills 

15 and family literacy education programs in the 

16 outlying area, except that the Secretary may 

17 decrease the amount of funds required under 

18 this subparagraph for an eligible agency; and 

19 ‘‘(B) in the case of an eligible agency serv20 ing a State, 25 percent of the total amount of 

21 funds expended for adult basic skills and family 

22 literacy education programs in the State. 

23 ‘‘(2) NON-FEDERAL CONTRIBUTION.—An eligi24 ble agency’s non-Federal contribution required under 

25 paragraph (1) may be provided in cash or in kind, 
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1 fairly evaluated, and shall include only non-Federal 

2 funds that are used for adult basic skills and family 

3 literacy education programs in a manner that is con4 sistent with the purpose of this title. 

5 ‘‘SEC. 223. STATE LEADERSHIP ACTIVITIES. 

6 ‘‘(a) IN GENERAL.—Each eligible agency may use 

7 funds made available under section 222(a)(2) for any of 

8 the following adult basic skills and family literacy edu9 cation programs: 

10 ‘‘(1) The establishment or operation of profes11 sional development programs to improve the quality 

12 of instruction provided pursuant to local activities 

13 required under section 231(b), including instruction 

14 incorporating the essential components of reading 

15 instruction and instruction provided by volunteers or 

16 by personnel of a State or outlying area. 

17 ‘‘(2) The provision of technical assistance to eli18 gible providers of adult basic skills and family lit19 eracy education programs for development and dis20 semination of scientific research-based instructional 

21 practices in reading, writing, speaking, math, and 

22 English language acquisition programs. 

23 ‘‘(3) The provision of assistance to eligible pro24 viders in developing, implementing, and reporting 
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1 measurable progress in achieving the objectives of 

2 this title. 

3 ‘‘(4) The provision of technology assistance, in4 cluding staff training, to eligible providers of adult 

5 basic skills and family literacy education programs, 

6 including distance learning activities, to enable the 

7 eligible providers to improve the quality of such ac8 tivities. 

9 ‘‘(5) The development and implementation of 

10 technology applications or distance learning, includ11 ing professional development to support the use of 

12 instructional technology. 

13 ‘‘(6) Coordination with other public programs, 

14 including welfare-to-work, workforce development, 

15 and job training programs. 

16 ‘‘(7) Coordination with existing support serv17 ices, such as transportation, child care, and other 

18 assistance designed to increase rates of enrollment 

19 in, and successful completion of, adult basic skills 

20 and family literacy education programs, for adults 

21 enrolled in such activities. 

22 ‘‘(8) The development and implementation of a 

23 system to assist in the transition from adult basic 

24 education to postsecondary education. 
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1 ‘‘(9) Activities to promote workplace literacy 

2 programs. 

3 ‘‘(10) Activities to promote and complement 

4 local outreach initiatives described in section 243(7). 

5 ‘‘(11) Other activities of statewide significance, 

6 including assisting eligible agencies in achieving 

7 progress in improving the skill levels of adults who 

8 participate in programs under this title. 

9 ‘‘(b) COORDINATION.—In carrying out this section, 

10 eligible agencies shall coordinate where possible, and avoid 

11 duplicating efforts, in order to maximize the impact of the 

12 activities described in subsection (a). 

13 ‘‘(c) STATE-IMPOSED REQUIREMENTS.—Whenever a 

14 State or outlying area implements any rule or policy relat15 ing to the administration or operation of a program au16 thorized under this title that has the effect of imposing 

17 a requirement that is not imposed under Federal law (in18 cluding any rule or policy based on a State or outlying 

19 area interpretation of a Federal statute, regulation, or 

20 guideline), the State or outlying area shall identify, to eli21 gible providers, the rule or policy as being imposed by the 

22 State or outlying area. 

23 ‘‘SEC. 224. STATE PLAN. 

24 ‘‘(a) 6-YEAR PLANS.— 
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1 ‘‘(1) IN GENERAL.—Each eligible agency desir2 ing a grant under this title for any fiscal year shall 

3 submit to, or have on file with, the Secretary a 6- 

4 year State plan. 

5 ‘‘(2) COMPREHENSIVE PLAN OR APPLICA6 TION.—The eligible agency may submit the State 

7 plan as part of a comprehensive plan or application 

8 for Federal education assistance. 

9 ‘‘(b) PLAN CONTENTS.—The eligible agency shall in10 clude in the State plan or any revisions to the State plan— 

11 ‘‘(1) an objective assessment of the needs of in12 dividuals in the State or outlying area for adult 

13 basic skills and family literacy education programs, 

14 including individuals most in need or hardest to 

15 serve; 

16 ‘‘(2) a description of the adult basic skills and 

17 family literacy education programs that will be car18 ried out with funds received under this title; 

19 ‘‘(3) a description of how the eligible agency 

20 will evaluate and measure annually the effectiveness 

21 and improvement of the adult basic skills and family 

22 literacy education programs based on the perform23 ance measures described in section 212 including— 
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1 ‘‘(A) how the eligible agency will evaluate 

2 and measure annually such effectiveness on a 

3 grant-by-grant basis; and 

4 ‘‘(B) how the eligible agency— 

5 ‘‘(i) will hold eligible providers ac6 countable regarding the progress of such 

7 providers in improving the academic 

8 achievement of participants in adult edu9 cation programs under this title and re10 garding the core indicators of performance 

11 described in section 212(b)(2)(A); and 

12 ‘‘(ii) will use technical assistance, 

13 sanctions, and rewards (including alloca14 tion of grant funds based on performance 

15 and termination of grant funds based on 

16 nonperformance); 

17 ‘‘(4) a description of the performance measures 

18 described in section 212 and how such performance 

19 measures have significantly improved adult basic 

20 skills and family literacy education programs in the 

21 State or outlying area; 

22 ‘‘(5) an assurance that the eligible agency will, 

23 in addition to meeting all of the other requirements 

24 of this title, award not less than one grant under 

25 this title to an eligible provider that— 
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1 ‘‘(A) offers flexible schedules and necessary 

2 support services (such as child care and trans3 portation) to enable individuals, including indi4 viduals with disabilities, or individuals with 

5 other special needs, to participate in adult basic 

6 skills and family literacy education programs; 

7 and 

8 ‘‘(B) attempts to coordinate with support 

9 services that are not provided under this title 

10 prior to using funds for adult basic skills and 

11 family literacy education programs provided 

12 under this title for support services; 

13 ‘‘(6) an assurance that the funds received under 

14 this title will not be expended for any purpose other 

15 than for activities under this title; 

16 ‘‘(7) a description of how the eligible agency 

17 will fund local activities in accordance with the 

18 measurable goals described in section 231(d); 

19 ‘‘(8) an assurance that the eligible agency will 

20 expend the funds under this title only in a manner 

21 consistent with fiscal requirements in section 241; 

22 ‘‘(9) a description of the process that will be 

23 used for public participation and comment with re24 spect to the State plan, which process— 
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1 ‘‘(A) shall include consultation with the 

2 State workforce investment board, the State 

3 board responsible for administering community 

4 or technical colleges, the Governor, the State 

5 educational agency, the State board or agency 

6 responsible for administering block grants for 

7 temporary assistance to needy families under 

8 title IV of the Social Security Act, the State 

9 council on disabilities, the State vocational re10 habilitation agency, other State agencies that 

11 promote the improvement of adult basic skills 

12 and family literacy education programs, and di13 rect providers of such programs; and 

14 ‘‘(B) may include consultation with the 

15 State agency on higher education, institutions 

16 responsible for professional development of 

17 adult basic skills and family literacy education 

18 programs instructors, representatives of busi19 ness and industry, refugee assistance programs, 

20 and faith-based organizations; 

21 ‘‘(10) a description of the eligible agency’s 

22 strategies for serving populations that include, at a 

23 minimum— 

24 ‘‘(A) low-income individuals; 

25 ‘‘(B) individuals with disabilities; 
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1 ‘‘(C) the unemployed; 

2 ‘‘(D) the underemployed; and 

3 ‘‘(E) individuals with multiple barriers to 

4 educational enhancement, including individuals 

5 with limited English proficiency; 

6 ‘‘(11) a description of how the adult basic skills 

7 and family literacy education programs that will be 

8 carried out with any funds received under this title 

9 will be integrated with other adult education, career 

10 development, and employment and training activities 

11 in the State or outlying area served by the eligible 

12 agency; 

13 ‘‘(12) a description of the steps the eligible 

14 agency will take to ensure direct and equitable ac15 cess, as required in section 231(c)(1), including— 

16 ‘‘(A) how the State will build the capacity 

17 of community-based and faith-based organiza18 tions to provide adult basic skills and family lit19 eracy education programs; and 

20 ‘‘(B) how the State will increase the par21 ticipation of business and industry in adult 

22 basic skills and family literacy education pro23 grams; and 

24 ‘‘(13) a description of how the eligible agency 

25 will consult with any State agency responsible for 
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1 postsecondary education to develop adult education 

2 that prepares students to enter postsecondary edu3 cation without the need for remediation upon com4 pletion of secondary school equivalency programs. 

5 ‘‘(c) PLAN REVISIONS.—When changes in conditions 

6 or other factors require substantial revisions to an ap7 proved State plan, the eligible agency shall submit the re8 visions of the State plan to the Secretary. 

9 ‘‘(d) CONSULTATION.—The eligible agency shall— 

10 ‘‘(1) submit the State plan, and any revisions to 

11 the State plan, to the Governor, the chief State 

12 school officer, or the State officer responsible for ad13 ministering community or technical colleges, or out14 lying area for review and comment; and 

15 ‘‘(2) ensure that any comments regarding the 

16 State plan by the Governor, the chief State school 

17 officer, or the State officer responsible for admin18 istering community or technical colleges, and any re19 vision to the State plan, are submitted to the Sec20 retary. 

21 ‘‘(e) PLAN APPROVAL.—A State plan submitted to 

22 the Secretary shall be approved by the Secretary only if 

23 the plan is consistent with the specific provisions of this 

24 title. 
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1 ‘‘SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND 

2 OTHER INSTITUTIONALIZED INDIVIDUALS. 

3 ‘‘(a) PROGRAM AUTHORIZED.—From funds made 

4 available under section 222(a)(1) for a fiscal year, each 

5 eligible agency shall carry out corrections education and 

6 education for other institutionalized individuals. 

7 ‘‘(b) USES OF FUNDS.—The funds described in sub8 section (a) shall be used for the cost of educational pro9 grams for criminal offenders in correctional institutions 

10 and for other institutionalized individuals, including aca11 demic programs for— 

12 ‘‘(1) basic skills education; 

13 ‘‘(2) special education programs as determined 

14 by the eligible agency; 

15 ‘‘(3) reading, writing, speaking, and math pro16 grams; and 

17 ‘‘(4) secondary school credit or diploma pro18 grams or their recognized equivalent. 

19 ‘‘(c) PRIORITY.—Each eligible agency that is using 

20 assistance provided under this section to carry out a pro21 gram for criminal offenders within a correctional institu22 tion shall give priority to serving individuals who are likely 

23 to leave the correctional institution within 5 years of par24 ticipation in the program. 

25 ‘‘(d) DEFINITIONS.—For purposes of this section: 
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1 ‘‘(1) CORRECTIONAL INSTITUTION.—The term 

2 ‘correctional institution’ means any— 

3 ‘‘(A) prison; 

4 ‘‘(B) jail; 

5 ‘‘(C) reformatory; 

6 ‘‘(D) work farm; 

7 ‘‘(E) detention center; or 

8 ‘‘(F) halfway house, community-based re9 habilitation center, or any other similar institu10 tion designed for the confinement or rehabilita11 tion of criminal offenders. 

12 ‘‘(2) CRIMINAL OFFENDER.—The term ‘crimi13 nal offender’ means any individual who is charged 

14 with, or convicted of, any criminal offense. 

15 ‘‘CHAPTER 3—LOCAL PROVISIONS 

16 ‘‘SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PRO17 VIDERS. 

18 ‘‘(a) GRANTS AND CONTRACTS.—From grant funds 

19 made available under section 211(b), each eligible agency 

20 shall award multiyear grants or contracts, on a competi21 tive basis, to eligible providers within the State or outlying 

22 area that meet the conditions and requirements of this 

23 title to enable the eligible providers to develop, implement, 

24 and improve adult basic skills and family literacy edu25 cation programs within the State. 
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1 ‘‘(b) LOCAL ACTIVITIES.—The eligible agency shall 

2 require eligible providers receiving a grant or contract 

3 under subsection (a) to establish or operate one or more 

4 programs of instruction that provide services or instruc5 tion in one or more of the following categories: 

6 ‘‘(1) Adult basic skills and family literacy edu7 cation programs (including proficiency in reading, 

8 writing, speaking, and math). 

9 ‘‘(2) Workplace literacy programs. 

10 ‘‘(3) English language acquisition programs. 

11 ‘‘(4) Family literacy education programs. 

12 ‘‘(c) DIRECT AND EQUITABLE ACCESS; SAME PROC13 ESS.—Each eligible agency receiving funds under this title 

14 shall ensure that— 

15 ‘‘(1) all eligible providers have direct and equi16 table access to apply for grants or contracts under 

17 this section; and 

18 ‘‘(2) the same grant or contract announcement 

19 process and application process is used for all eligi20 ble providers in the State or outlying area. 

21 ‘‘(d) MEASURABLE GOALS.—The eligible agency shall 

22 require eligible providers receiving a grant or contract 

23 under subsection (a) to demonstrate— 

24 ‘‘(1) the eligible provider’s measurable goals for 

25 participant outcomes to be achieved annually on the 
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1 core indicators of performance and employment per2 formance indicators described in section 212(b)(2); 

3 ‘‘(2) the past effectiveness of the eligible pro4 vider in improving the basic academic skills of adults 

5 and, for eligible providers receiving grants in the 

6 prior year, the success of the eligible provider receiv7 ing funding under this title in meeting or exceeding 

8 its performance goals in the prior year; 

9 ‘‘(3) the commitment of the eligible provider to 

10 serve individuals in the community who are the most 

11 in need of basic academic skills instruction services, 

12 including individuals who are low-income or have 

13 minimal reading, writing, speaking, and math skills, 

14 or limited English proficiency; 

15 ‘‘(4) the program— 

16 ‘‘(A) is of sufficient intensity and duration 

17 for participants to achieve substantial learning 

18 gains; and 

19 ‘‘(B) uses instructional practices that in20 clude the essential components of reading in21 struction; 

22 ‘‘(5) educational practices are based on scientif23 ically based research; 
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1 ‘‘(6) the activities of the eligible provider effec2 tively employ advances in technology, as appropriate, 

3 including the use of computers; 

4 ‘‘(7) the activities provide instruction in real-life 

5 contexts, when appropriate and scientifically based, 

6 to ensure that an individual has the skills needed to 

7 compete in the workplace and exercise the rights and 

8 responsibilities of citizenship; 

9 ‘‘(8) the activities are staffed by well-trained in10 structors, counselors, and administrators; 

11 ‘‘(9) the activities are coordinated with other 

12 available resources in the community, such as 

13 through strong links with elementary schools and 

14 secondary schools, postsecondary educational institu15 tions, one-stop centers, job training programs, com16 munity-based and faith-based organizations, and so17 cial service agencies; 

18 ‘‘(10) the activities offer flexible schedules and 

19 support services (such as child care and transpor20 tation) that are necessary to enable individuals, in21 cluding individuals with disabilities or other special 

22 needs, to attend and complete programs; 

23 ‘‘(11) the activities include a high-quality infor24 mation management system that has the capacity to 

25 report measurable participant outcomes and to mon-
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1 itor program performance against the performance 

2 measures established by the eligible agency; 

3 ‘‘(12) the local communities have a dem4 onstrated need for additional English language ac5 quisition programs; 

6 ‘‘(13) the capacity of the eligible provider to 

7 produce valid information on performance results, 

8 including enrollments and measurable participant 

9 outcomes; 

10 ‘‘(14) adult basic skills and family literacy edu11 cation programs offer rigorous reading, writing, 

12 speaking, and math content that are based on sci13 entific research; and 

14 ‘‘(15) applications of technology, and services to 

15 be provided by the eligible providers, are of sufficient 

16 intensity and duration to increase the amount and 

17 quality of learning and lead to measurable learning 

18 gains within specified time periods. 

19 ‘‘(e) SPECIAL RULE.—Eligible providers may use 

20 grant funds under this title to serve children participating 

21 in family literacy programs assisted under this part, pro22 vided that other sources of funds available to provide simi23 lar services for such children are used first. 
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1 ‘‘SEC. 232. LOCAL APPLICATION. 

2 ‘‘Each eligible provider desiring a grant or contract 

3 under this title shall submit an application to the eligible 

4 agency containing such information and assurances as the 

5 eligible agency may require, including— 

6 ‘‘(1) a description of how funds awarded under 

7 this title will be spent consistent with the require8 ments of this title; 

9 ‘‘(2) a description of any cooperative arrange10 ments the eligible provider has with other agencies, 

11 institutions, or organizations for the delivery of 

12 adult basic skills and family literacy education pro13 grams; and 

14 ‘‘(3) each of the demonstrations required by 

15 section 231(d). 

16 ‘‘SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS. 

17 ‘‘(a) IN GENERAL.—Subject to subsection (b), of the 

18 amount that is made available under this title to an eligi19 ble provider— 

20 ‘‘(1) at least 95 percent shall be expended for 

21 carrying out adult basic skills and family literacy 

22 education programs; and 

23 ‘‘(2) the remaining amount shall be used for 

24 planning, administration, personnel and professional 

25 development, development of measurable goals in 
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1 reading, writing, speaking, and math, and inter2 agency coordination. 

3 ‘‘(b) SPECIAL RULE.—In cases where the cost limits 

4 described in subsection (a) are too restrictive to allow for 

5 adequate planning, administration, personnel develop6 ment, and interagency coordination, the eligible provider 

7 may negotiate with the eligible agency in order to deter8 mine an adequate level of funds to be used for noninstruc9 tional purposes. 

10 ‘‘CHAPTER 4—GENERAL PROVISIONS 

11 ‘‘SEC. 241. ADMINISTRATIVE PROVISIONS. 

12 ‘‘(a) SUPPLEMENT NOT SUPPLANT.—Funds made 

13 available for adult basic skills and family literacy edu14 cation programs under this title shall supplement and not 

15 supplant other State or local public funds expended for 

16 adult basic skills and family literacy education programs. 

17 ‘‘(b) MAINTENANCE OF EFFORT.— 

18 ‘‘(1) IN GENERAL.— 

19 ‘‘(A) DETERMINATION.—An eligible agency 

20 may receive funds under this title for any fiscal 

21 year if the Secretary finds that the fiscal effort 

22 per student or the aggregate expenditures of 

23 such eligible agency for activities under this 

24 title, in the second preceding fiscal year, were 

25 not less than 90 percent of the fiscal effort per 
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1 student or the aggregate expenditures of such 

2 eligible agency for adult basic skills and family 

3 literacy education programs, in the third pre4 ceding fiscal year. 

5 ‘‘(B) PROPORTIONATE REDUCTION.—Sub6 ject to paragraphs (2), (3), and (4), for any fis7 cal year with respect to which the Secretary de8 termines under subparagraph (A) that the fiscal 

9 effort or the aggregate expenditures of an eligi10 ble agency for the preceding program year were 

11 less than such effort or expenditures for the 

12 second preceding program year, the Secretary— 

13 ‘‘(i) shall determine the percentage 

14 decreases in such effort or in such expendi15 tures; and 

16 ‘‘(ii) shall decrease the payment made 

17 under this title for such program year to 

18 the agency for adult basic skills and family 

19 literacy education programs by the lesser 

20 of such percentages. 

21 ‘‘(2) COMPUTATION.—In computing the fiscal 

22 effort and aggregate expenditures under paragraph 

23 (1), the Secretary shall exclude capital expenditures 

24 and special one-time project costs. 
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1 ‘‘(3) DECREASE IN FEDERAL SUPPORT.—If the 

2 amount made available for adult basic skills and 

3 family literacy education programs under this title 

4 for a fiscal year is less than the amount made avail5 able for adult basic skills and family literacy edu6 cation programs under this title for the preceding 

7 fiscal year, then the fiscal effort per student and the 

8 aggregate expenditures of an eligible agency required 

9 in order to avoid a reduction under paragraph 

10 (1)(B) shall be decreased by the same percentage as 

11 the percentage decrease in the amount so made 

12 available. 

13 ‘‘(4) WAIVER.—The Secretary may waive the 

14 requirements of this subsection for not more than 1 

15 fiscal year, if the Secretary determines that a waiver 

16 would be equitable due to exceptional or uncontrol17 lable circumstances, such as a natural disaster or an 

18 unforeseen and precipitous decline in the financial 

19 resources of the State or outlying area of the eligible 

20 agency. If the Secretary grants a waiver under the 

21 preceding sentence for a fiscal year, the level of ef22 fort required under paragraph (1) shall not be re23 duced in the subsequent fiscal year because of the 

24 waiver. 
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1 ‘‘SEC. 242. NATIONAL INSTITUTE FOR LITERACY. 

2 ‘‘(a) IN GENERAL.— 

3 ‘‘(1) PURPOSE.—The purpose of the National 

4 Institute for Literacy is to promote the improvement 

5 of literacy, including skills in reading, writing, and 

6 English language acquisition for children, youth, and 

7 adults, through practices derived from the findings 

8 of scientifically based research. 

9 ‘‘(2) ESTABLISHMENT.—There is established a 

10 National Institute for Literacy (in this section re11 ferred to as the ‘Institute’). The Institute shall be 

12 administered under the terms of an interagency 

13 agreement entered into, reviewed annually, and 

14 modified as needed by the Secretary of Education 

15 with the Secretary of Health and Human Services 

16 and the Secretary of Labor (in this section referred 

17 to as the ‘Interagency Group’). 

18 ‘‘(3) OFFICES.—The Institute shall have offices 

19 separate from the offices of the Department of Edu20 cation, the Department of Health and Human Serv21 ices, and the Department of Labor. 

22 ‘‘(4) ADMINISTRATIVE SUPPORT.—The Depart23 ment of Education shall provide administrative sup24 port for the Institute. 
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1 ‘‘(5) DAILY OPERATIONS.—The Director of the 

2 Institute shall administer the daily operations of the 

3 Institute. 

4 ‘‘(b) DUTIES.— 

5 ‘‘(1) IN GENERAL.—To carry out its purpose, 

6 the Institute may— 

7 ‘‘(A) identify rigorous scientific research 

8 on the effectiveness of instructional practices 

9 and organizational strategies relating to pro10 grams on the acquisition of skills in reading, 

11 writing, and English language acquisition for 

12 children, youth, and adults; 

13 ‘‘(B) create and widely disseminate mate14 rials about the acquisition and application of 

15 skills in reading, writing, and English language 

16 acquisition for children, youth, and adults based 

17 on scientifically based research; 

18 ‘‘(C) promote a broad understanding of 

19 scientifically based research on reading, writing, 

20 and English language acquisition for children, 

21 youth, and adults among Federal agencies with 

22 responsibilities for administering programs that 

23 provide related services; 

24 ‘‘(D) facilitate coordination and informa25 tion sharing among national organizations and 
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1 associations interested in programs that provide 

2 services to improve skills in reading, writing, 

3 and English language acquisition for children, 

4 youth, and adults; 

5 ‘‘(E) work cooperatively with the appro6 priate offices in the Department of Education, 

7 the Department of Health and Human Services, 

8 the Department of Labor, and other Federal 

9 agencies to apply the findings of scientifically 

10 based research related to programs on reading, 

11 writing, and English language acquisition for 

12 children, youth, and adults; and 

13 ‘‘(F) establish a national electronic data14 base and Internet site describing scientifically 

15 based programs on reading, writing, and 

16 English language acquisition for children, 

17 youth, and adults, including professional devel18 opment programs. 

19 ‘‘(2) COORDINATION.—In identifying scientif20 ically based research on reading, writing, and 

21 English language acquisition for children, youth, and 

22 adults, the Institute shall use standards for research 

23 quality that are consistent with those established by 

24 the Institute of Education Sciences. 
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1 ‘‘(3) GRANTS, CONTRACTS, AND COOPERATIVE

2 AGREEMENTS.— 

3 ‘‘(A) IN GENERAL.—The Institute may 

4 award grants to, or enter into contracts or co5 operative agreements with, individuals, public 

6 or private institutions, agencies, organizations, 

7 or consortia of such individuals, institutions, 

8 agencies, or organizations, to carry out the ac9 tivities of the Institute. 

10 ‘‘(B) REGULATIONS.—The Director may 

11 adopt the general administrative regulations of 

12 the Department of Education, as applicable, for 

13 use by the Institute. 

14 ‘‘(C) RELATION TO OTHER LAWS.—The 

15 duties and powers of the Institute under this 

16 title are in addition to the duties and powers of 

17 the Institute under subparts 1, 2, and 3 of part 

18 B of the Elementary and Secondary Education 

19 Act of 1965 (commonly referred to as Reading 

20 First, Early Reading First, and the William F. 

21 Goodling Even Start Family Literacy Program, 

22 respectively). 

23 ‘‘(c) VISITING SCHOLARS.—The Institute may estab24 lish a visiting scholars program, with such stipends and 
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1 allowances as the Director considers necessary, for out2 standing researchers, scholars, and individuals who— 

3 ‘‘(1) have careers in adult education, workforce 

4 development, or scientifically based reading, writing, 

5 or English language acquisition; and 

6 ‘‘(2) can assist the Institute in translating re7 search into practice and providing analysis that ad8 vances instruction in the fields of reading, writing, 

9 and English language acquisition for children, youth, 

10 and adults. 

11 ‘‘(d) INTERNS AND VOLUNTEERS.—The Institute, in 

12 consultation with the National Institute for Literacy Advi13 sory Board, may award paid and unpaid internships to 

14 individuals seeking to assist the Institute in carrying out 

15 its purpose. Notwithstanding section 1342 of title 31, 

16 United States Code, the Institute may accept and use vol17 untary and uncompensated services as the Institute deter18 mines necessary. 

19 ‘‘(e) NATIONAL INSTITUTE FOR LITERACY ADVISORY

20 BOARD.— 

21 ‘‘(1) ESTABLISHMENT.— 

22 ‘‘(A) IN GENERAL.—There shall be a Na23 tional Institute for Literacy Advisory Board (in 

24 this section referred to as the ‘Board’), which 

25 shall consist of 7 individuals appointed by the 
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1 President with the advice and consent of the 

2 Senate. 

3 ‘‘(B) QUALIFICATIONS.—The Board shall 

4 be composed of individuals who— 

5 ‘‘(i) are not otherwise officers or em6 ployees of the Federal Government; and 

7 ‘‘(ii) are knowledgeable about current 

8 successful scientific research findings on 

9 instruction in reading, writing, and 

10 English language acquisition for children, 

11 youth, and adults. 

12 ‘‘(C) COMPOSITION.—The Board may in13 clude— 

14 ‘‘(i) representatives of business, indus15 try, labor, literacy organizations, adult 

16 education providers, community colleges, 

17 and students with disabilities; and 

18 ‘‘(ii) individuals who, and representa19 tives of entities that, have been successful 

20 in improving skills in reading, writing, and 

21 English language acquisition for children, 

22 youth, and adults. 

23 ‘‘(2) DUTIES.—The Board shall— 
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1 ‘‘(A) make recommendations to the Sec2 retary of Education concerning the appointment 

3 of the Director of the Institute; 

4 ‘‘(B) provide independent advice on the op5 eration of the Institute; 

6 ‘‘(C) receive reports from the Interagency 

7 Group and the Director; and 

8 ‘‘(D) review the biennial report to the Con9 gress under subsection (k). 

10 ‘‘(3) FEDERAL ADVISORY COMMITTEE ACT.— 

11 Except as otherwise provided, the Board shall be 

12 subject to the provisions of the Federal Advisory 

13 Committee Act. 

14 ‘‘(4) APPOINTMENTS.— 

15 ‘‘(A) IN GENERAL.—Each member of the 

16 Board shall be appointed for a term of 3 years, 

17 except that the initial terms for members may 

18 be 1, 2, or 3 years in order to establish a rota19 tion in which one-third of the members are se20 lected each year. Any such member may be ap21 pointed for not more than 2 consecutive terms. 

22 ‘‘(B) VACANCIES.—Any member appointed 

23 to fill a vacancy occurring before the expiration 

24 of the term for which the member’s predecessor 

25 was appointed shall be appointed only for the 
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1 remainder of that term. A member may serve 

2 after the expiration of that member’s term until 

3 a successor has taken office. 

4 ‘‘(5) QUORUM.—A majority of the members of 

5 the Board shall constitute a quorum, but a lesser 

6 number may hold hearings. A recommendation of 

7 the Board may be passed only by a majority of the 

8 Board’s members present at a meeting for which 

9 there is a quorum. 

10 ‘‘(6) ELECTION OF OFFICERS.—The Chair11 person and Vice Chairperson of the Board shall be 

12 elected by the members of the Board. The term of 

13 office of the Chairperson and Vice Chairperson shall 

14 be 2 years. 

15 ‘‘(7) MEETINGS.—The Board shall meet at the 

16 call of the Chairperson or a majority of the members 

17 of the Board. 

18 ‘‘(f) GIFTS, BEQUESTS, AND DEVISES.— 

19 ‘‘(1) IN GENERAL.—The Institute may accept, 

20 administer, and use gifts or donations of services, 

21 money, or property, whether real or personal, tan22 gible or intangible. 

23 ‘‘(2) RULES.—The Board shall establish writ24 ten rules setting forth the criteria to be used by the 

25 Institute in determining whether the acceptance of 
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1 contributions of services, money, or property whether 

2 real or personal, tangible or intangible, would reflect 

3 unfavorably upon the ability of the Institute or any 

4 employee to carry out the responsibilities of the In5 stitute or employee, or official duties, in a fair and 

6 objective manner, or would compromise the integrity, 

7 or the appearance of the integrity, of the Institute’s 

8 programs or any official involved in those programs. 

9 ‘‘(g) MAILS.—The Board and the Institute may use 

10 the United States mails in the same manner and under 

11 the same conditions as other departments and agencies of 

12 the United States. 

13 ‘‘(h) DIRECTOR.—The Secretary of Education, after 

14 considering recommendations made by the Board and con15 sulting with the Interagency Group, shall appoint and fix 

16 the pay of the Director of the Institute and, when nec17 essary, shall appoint an Interim Director of the Institute. 

18 ‘‘(i) APPLICABILITY OF CERTAIN CIVIL SERVICE

19 LAWS.—The Director and staff of the Institute may be 

20 appointed without regard to the provisions of title 5, 

21 United States Code, governing appointments in the com22 petitive service, and may be paid without regard to the 

23 provisions of chapter 51 and subchapter III of chapter 53 

24 of that title relating to classification and General Schedule 

25 pay rates, except that an individual so appointed may not 
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1 receive pay in excess of the annual rate of basic pay pay2 able for level IV of the Executive Schedule. 

3 ‘‘(j) EXPERTS AND CONSULTANTS.—The Institute 

4 may procure temporary and intermittent services under 

5 section 3109(b) of title 5, United States Code. 

6 ‘‘(k) BIENNIAL REPORT.—

7 ‘‘(1) IN GENERAL.—The Institute shall submit 

8 a report biennially to the Committee on Education 

9 and the Workforce of the House of Representatives 

10 and the Committee on Health, Education, Labor, 

11 and Pensions of the Senate. Each report submitted 

12 under this subsection shall include—

13 ‘‘(A) a comprehensive and detailed descrip14 tion of the Institute’s operations, activities, fi15 nancial condition, and accomplishments in iden16 tifying and describing programs on reading, 

17 writing, and English language acquisition for 

18 children, youth, and adults for the period cov19 ered by the report; and 

20 ‘‘(B) a description of how plans for the op21 eration of the Institute for the succeeding 2 fis22 cal years will facilitate achievement of the pur23 pose of the Institute. 

24 ‘‘(2) FIRST REPORT.—The Institute shall sub25 mit its first report under this subsection to the Con-
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1 gress not later than 1 year after the date of the en2 actment of the Job Training Improvement Act of 

3 2005. 

4 ‘‘(l) FUNDING.—

5 ‘‘(1) ADDITIONAL FUNDING.—In addition to the 

6 funds authorized under section 205 and reserved for 

7 the Institute under section 211, the Secretary of 

8 Education, the Secretary of Health and Human 

9 Services, the Secretary of Labor, or the head of any 

10 other Federal agency or department that partici11 pates in the activities of the Institute may provide 

12 funds to the Institute for activities that the Institute 

13 is authorized to perform under this section. 

14 ‘‘SEC. 243. NATIONAL LEADERSHIP ACTIVITIES. 

15 ‘‘The Secretary shall establish and carry out a pro16 gram of national leadership activities that may include the 

17 following: 

18 ‘‘(1) Technical assistance, on request, including 

19 assistance—

20 ‘‘(A) on requests to volunteer community21 and faith-based organizations, including but not 

22 limited to, improving their fiscal management, 

23 research-based instruction, and reporting re24 quirements, and the development of measurable 
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1 objectives to carry out the requirements of this 

2 title; 

3 ‘‘(B) in developing valid, measurable, and 

4 reliable performance data, and using perform5 ance information for the improvement of adult 

6 basic skills and family literacy education pro7 grams; 

8 ‘‘(C) on adult education professional devel9 opment; and 

10 ‘‘(D) in using distance learning and im11 proving the application of technology in the 

12 classroom. 

13 ‘‘(2) Providing for the conduct of research on 

14 national literacy basic skill acquisition levels among 

15 adults, including the number of adults functioning at 

16 different levels of reading proficiency. 

17 ‘‘(3) Improving the coordination, efficiency, and 

18 effectiveness of adult education and workforce devel19 opment services at the national, State, and local lev20 els. 

21 ‘‘(4) Determining how participation in adult 

22 basic skills and family literacy education programs 

23 prepares individuals for entry into and success in 

24 postsecondary education and employment, and in the 
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1 case of prison-based services, the effect on recidi2 vism. 

3 ‘‘(5) Evaluating how different types of pro4 viders, including community and faith-based organi5 zations or private for-profit agencies measurably im6 prove the skills of participants in adult basic skills 

7 and family literacy education programs. 

8 ‘‘(6) Identifying model integrated basic and 

9 workplace skills education programs, coordinated lit10 eracy and employment services, and effective strate11 gies for serving adults with disabilities. 

12 ‘‘(7) Supporting the development of an entity 

13 that would produce and distribute technology-based 

14 programs and materials for adult basic skills and 

15 family literacy education programs using an inter16 communication system, as that term is defined in 

17 section 397 of the Communications Act of 1934, and 

18 expand the effective outreach and use of such pro19 grams and materials to adult education eligible pro20 viders. 

21 ‘‘(8) Initiating other activities designed to im22 prove the measurable quality and effectiveness of 

23 adult basic skills and family literacy education pro24 grams nationwide.’’. 
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1 PART B—GENERAL PROVISIONS 

2 SEC. 211. TRANSITION. 

3 The Secretary shall take such actions as the Sec4 retary determines to be appropriate to provide for the or5 derly implementation of this title. 

6 TITLE III—AMENDMENTS TO 

7 THE WAGNER-PEYSER ACT 

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

9 The Wagner-Peyser Act (29 U.S.C. 49 et. seq.) is 

10 amended—

11 (1) by striking sections 1 through 13; 

12 (2) in section 14 by inserting ‘‘of Labor’’ after 

13 ‘‘Secretary’’; and 

14 (3) by amending section 15 to read as follows: 

15 ‘‘SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION 

16 SYSTEM. 

17 ‘‘(a) SYSTEM CONTENT.—

18 ‘‘(1) IN GENERAL.—The Secretary of Labor, in 

19 accordance with the provisions of this section, shall 

20 oversee the development, maintenance, and contin21 uous improvement of a nationwide workforce and 

22 labor market information system that includes—

23 ‘‘(A) statistical data from cooperative sta24 tistical survey and projection programs and 

25 data from administrative reporting systems 

26 that, taken together, enumerate, estimate, and 
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1 project employment opportunities and condi2 tions at national, State, and local levels in a 

3 timely manner, including statistics on—

4 ‘‘(i) employment and unemployment 

5 status of national, State, and local popu6 lations, including self-employed, part-time, 

7 and seasonal workers; 

8 ‘‘(ii) industrial distribution of occupa9 tions, as well as current and projected em10 ployment opportunities, wages, benefits 

11 (where data is available), and skill trends 

12 by occupation and industry, with particular 

13 attention paid to State and local condi14 tions; 

15 ‘‘(iii) the incidence of, industrial and 

16 geographical location of, and number of 

17 workers displaced by, permanent layoffs 

18 and plant closings; and 

19 ‘‘(iv) employment and earnings infor20 mation maintained in a longitudinal man21 ner to be used for research and program 

22 evaluation; 

23 ‘‘(B) information on State and local em24 ployment opportunities, and other appropriate 
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1 statistical data related to labor market dynam2 ics, which—

3 ‘‘(i) shall be current and comprehen4 sive; 

5 ‘‘(ii) shall meet the needs identified 

6 through the consultations described in sub7 paragraphs (A) and (B) of subsection 

8 (e)(2); and 

9 ‘‘(iii) shall meet the needs for the in10 formation identified in section 134(d); 

11 ‘‘(C) technical standards (which the Sec12 retary shall publish annually) for data and in13 formation described in subparagraphs (A) and 

14 (B) that, at a minimum, meet the criteria of 

15 chapter 35 of title 44, United States Code; 

16 ‘‘(D) procedures to ensure compatibility 

17 and additivity of the data and information de18 scribed in subparagraphs (A) and (B) from na19 tional, State, and local levels; 

20 ‘‘(E) procedures to support standardization 

21 and aggregation of data from administrative re22 porting systems described in subparagraph (A) 

23 of employment-related programs; 
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1 ‘‘(F) analysis of data and information de2 scribed in subparagraphs (A) and (B) for uses 

3 such as—

4 ‘‘(i) national, State, and local policy5 making; 

6 ‘‘(ii) implementation of Federal poli7 cies (including allocation formulas); 

8 ‘‘(iii) program planning and evalua9 tion; and 

10 ‘‘(iv) researching labor market dynam11 ics; 

12 ‘‘(G) wide dissemination of such data, in13 formation, and analysis in a user-friendly man14 ner and voluntary technical standards for dis15 semination mechanisms; and 

16 ‘‘(H) programs of—

17 ‘‘(i) training for effective data dis18 semination; 

19 ‘‘(ii) research and demonstration; and 

20 ‘‘(iii) programs and technical assist21 ance. 

22 ‘‘(2) INFORMATION TO BE CONFIDENTIAL.—

23 ‘‘(A) IN GENERAL.—No officer or em24 ployee of the Federal Government or agent of 

25 the Federal Government may—
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1 ‘‘(i) use any submission that is fur2 nished for exclusively statistical purposes 

3 under the provisions of this section for any 

4 purpose other than the statistical purposes 

5 for which the submission is furnished; 

6 ‘‘(ii) make any publication or media 

7 transmittal of the data contained in the 

8 submission described in clause (i) that per9 mits information concerning individual 

10 subjects to be reasonably inferred by either 

11 direct or indirect means; or 

12 ‘‘(iii) permit anyone other than a 

13 sworn officer, employee, or agent of any 

14 Federal department or agency, or a con15 tractor (including an employee of a con16 tractor) of such department or agency, to 

17 examine an individual submission described 

18 in clause (i); 

19 without the consent of the individual, agency, or 

20 other person who is the subject of the submis21 sion or provides that submission. 

22 ‘‘(B) IMMUNITY FROM LEGAL PROCESS.—

23 Any submission (including any data derived 

24 from the submission) that is collected and re25 tained by a Federal department or agency, or 
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1 an officer, employee, agent, or contractor of 

2 such a department or agency, for exclusively 

3 statistical purposes under this section shall be 

4 immune from the legal process and shall not, 

5 without the consent of the individual, agency, or 

6 other person who is the subject of the submis7 sion or provides that submission, be admitted 

8 as evidence or used for any purpose in any ac9 tion, suit, or other judicial or administrative 

10 proceeding. 

11 ‘‘(C) RULE OF CONSTRUCTION.—Nothing 

12 in this section shall be construed to provide im13 munity from the legal process for such submis14 sion (including any data derived from the sub15 mission) if the submission is in the possession 

16 of any person, agency, or entity other than the 

17 Federal Government or an officer, employee, 

18 agent, or contractor of the Federal Government, 

19 or if the submission is independently collected, 

20 retained, or produced for purposes other than 

21 the purposes of this Act. 

22 ‘‘(b) SYSTEM RESPONSIBILITIES.—

23 ‘‘(1) IN GENERAL.—The workforce and labor 

24 market information system described in subsection 

25 (a) shall be planned, administered, overseen, and 
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1 evaluated through a cooperative governance struc2 ture involving the Federal Government and States. 

3 ‘‘(2) DUTIES.—The Secretary, with respect to 

4 data collection, analysis, and dissemination of labor 

5 employment statistics for the system, shall carry out 

6 the following duties: 

7 ‘‘(A) Assign responsibilities within the De8 partment of Labor for elements of the work9 force and labor market information system de10 scribed in subsection (a) to ensure that all sta11 tistical and administrative data collected is con12 sistent with appropriate Bureau of Labor Sta13 tistics standards and definitions. 

14 ‘‘(B) Actively seek the cooperation of other 

15 Federal agencies to establish and maintain 

16 mechanisms for ensuring complementarity and 

17 nonduplication in the development and oper18 ation of statistical and administrative data col19 lection activities. 

20 ‘‘(C) Eliminate gaps and duplication in 

21 statistical undertakings, with the systemization 

22 of wage surveys as an early priority. 

23 ‘‘(D) In collaboration with the Bureau of 

24 Labor Statistics and States, develop and main25 tain the elements of the workforce and labor 
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1 market information system described in sub2 section (a), including the development of con3 sistent procedures and definitions for use by the 

4 States in collecting the data and information 

5 described in subparagraphs (A) and (B) of sub6 section (a)(1). 

7 ‘‘(E) Establish procedures for the system 

8 to ensure that—

9 ‘‘(i) such data and information are 

10 timely; 

11 ‘‘(ii) paperwork and reporting for the 

12 system are reduced to a minimum; and 

13 ‘‘(iii) States and localities are fully in14 volved in the development and continuous 

15 improvement of the system at all levels, in16 cluding ensuring the provision, to such 

17 States and localities, of budget information 

18 necessary for carrying out their respon19 sibilities under subsection (e). 

20 ‘‘(c) NATIONAL ELECTRONIC TOOLS TO PROVIDE

21 SERVICES.—The Secretary is authorized to assist in the 

22 development of national electronic tools that may be used 

23 to facilitate the delivery of core services described in sec24 tion 134 and to provide workforce information to individ-
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1 uals through the one-stop delivery systems descried in sec2 tion 121 and through other appropriate delivery systems. 

3 ‘‘(d) COORDINATION WITH THE STATES.—

4 ‘‘(1) IN GENERAL.—The Secretary, working 

5 through the Bureau of Labor Statistics and the Em6 ployment and Training Administration, shall regu7 larly consult with representatives of State agencies 

8 carrying out workforce information activities regard9 ing strategies for improving the workforce and labor 

10 market information system. 

11 ‘‘(2) FORMAL CONSULTATIONS.—At least twice 

12 each year, the Secretary, working through the Bu13 reau of Labor Statistics, shall conduct formal con14 sultations regarding programs carried out by the 

15 Bureau of Labor Statistics with representatives of 

16 each of the 10 Federal regions of the Department of 

17 Labor, elected from the State directors affiliated 

18 with State agencies that perform the duties de19 scribed in subsection (e)(2). 

20 ‘‘(e) STATE RESPONSIBILITIES.—

21 ‘‘(1) DESIGNATION OF STATE AGENCY.—In 

22 order to receive Federal financial assistance under 

23 this section, the Governor of a State shall—

24 ‘‘(A) designate a single State agency to be 

25 responsible for the management of the portions 
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1 of the workforce and labor market information 

2 system described in subsection (a) that com3 prise a statewide workforce and labor market 

4 information system and for the State’s partici5 pation in the development of the annual plan; 

6 and 

7 ‘‘(B) establish a process for the oversight 

8 of such system. 

9 ‘‘(2) DUTIES.—In order to receive Federal fi10 nancial assistance under this section, the State agen11 cy shall—

12 ‘‘(A) consult with State and local employ13 ers, participants, and local workforce invest14 ment boards about the labor market relevance 

15 of the data to be collected and disseminated 

16 through the statewide workforce and labor mar17 ket information system; 

18 ‘‘(B) consult with State educational agen19 cies and local educational agencies concerning 

20 the provision of employment statistics in order 

21 to meet the needs of secondary school and post22 secondary school students who seek such infor23 mation; 

24 ‘‘(C) collect and disseminate for the sys25 tem, on behalf of the State and localities in the 
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1 State, the information and data described in 

2 subparagraphs (A) and (B) of subsection 

3 (a)(1); 

4 ‘‘(D) maintain and continuously improve 

5 the statewide workforce and labor market infor6 mation system in accordance with this section; 

7 ‘‘(E) perform contract and grant respon8 sibilities for data collection, analysis, and dis9 semination for such system; 

10 ‘‘(F) conduct such other data collection, 

11 analysis, and dissemination activities as will en12 sure an effective statewide workforce and labor 

13 market information system; 

14 ‘‘(G) actively seek the participation of 

15 other State and local agencies in data collec16 tion, analysis, and dissemination activities in 

17 order to ensure complementarity, compatibility, 

18 and usefulness of data; 

19 ‘‘(H) participate in the development of the 

20 annual plan described in subsection (c); and 

21 ‘‘(I) utilize the quarterly records described 

22 in section 136(f)(2) of the Workforce Invest23 ment Act of 1998 to assist the State and other 

24 States in measuring State progress on State 

25 performance measures. 
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1 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

2 this section shall be construed as limiting the ability 

3 of a State agency to conduct additional data collec4 tion, analysis, and dissemination activities with 

5 State funds or with Federal funds from sources 

6 other than this section. 

7 ‘‘(f) NONDUPLICATION REQUIREMENT.—None of the 

8 functions and activities carried out pursuant to this sec9 tion shall duplicate the functions and activities carried out 

10 under the Carl D. Perkins Vocational and Applied Tech11 nology Education Act (20 U.S.C. 2301 et seq.). 

12 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated to carry out this section 

14 such sums as may be necessary for each of the fiscal years 

15 2006 through 2011. 

16 ‘‘(h) DEFINITION.—In this section, the term ‘local 

17 area’ means the smallest geographical area for which data 

18 can be produced with statistical reliability.’’. 

19 TITLE IV—AMENDMENTS TO THE 

20 REHABILITATION ACT OF 1973

21 SEC. 401. FINDINGS. 

22 Section 2(a) of the Rehabilitation Act of 1973 (29 

23 U.S.C. 701(a)) is amended—

24 (1) in paragraph (5), by striking ‘‘and’’ at the 

25 end; 
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1 (2) in paragraph (6), by striking the period and 

2 inserting ‘‘; and’’; and 

3 (3) by adding at the end the following: 

4 ‘‘(7) there is a substantial need to improve and 

5 expand services for students with disabilities under 

6 this Act.’’. 

7 SEC. 402. REHABILITATION SERVICES ADMINISTRATION. 

8 Section 3(a) of the Rehabilitation Act of 1973 (29 

9 U.S.C. 702(a)) is amended—

10 (1) by striking ‘‘Office of the Secretary’’ and 

11 inserting ‘‘Department of Education’’; 

12 (2) by striking ‘‘President by and with the ad13 vice and consent of the Senate’’ and inserting ‘‘Sec14 retary, except that the current Commissioner ap15 pointed under the authority existing on the day prior 

16 to the date of enactment of the Job Training Im17 provement Act of 2005 may continue to serve in the 

18 former capacity’’; and 

19 (3) by striking ‘‘, and the Commissioner shall 

20 be the principal officer,’’. 

21 SEC. 403. DIRECTOR. 

22 (a) IN GENERAL.—The Rehabilitation Act of 1973 

23 (29 U.S.C. 701 et seq.) is amended by striking ‘‘Commis24 sioner’’ each place it appears, except in section 21, and 

25 inserting ‘‘Director’’. 
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1 (b) EXCEPTION.—Section 21 of the Rehabilitation 

2 Act of 1973 (29 U.S.C. 718) is amended—

3 (1) in subsection (b)(1)—

4 (A) by striking ‘‘Commissioner’’ the first 

5 place it appears and inserting ‘‘Director of the 

6 Rehabilitation Services Administration’’; and 

7 (B) by striking ‘‘(referred to in this sub8 section as the ‘Director’ ’’; and 

9 (2) by striking ‘‘Commissioner and the Direc10 tor’’ each place it appears and inserting ‘‘both such 

11 Directors’’. 

12 SEC. 404. DEFINITIONS. 

13 Section 7 of the Rehabilitation Act of 1973 (29 

14 U.S.C. 705) is amended—

15 (1) by redesignating paragraphs (35) through 

16 (39) as paragraphs (36), (37), (38), (40), and (41), 

17 respectively; 

18 (2) in subparagraph (A)(ii) of paragraph (36) 

19 (as redesignated in paragraph (1)), by striking 

20 ‘‘paragraph (36)(C)’’ and inserting ‘‘paragraph 

21 (37)(C)’’; 

22 (3) by inserting after paragraph (34) the fol23 lowing: 

24 ‘‘(35)(A) The term ‘student with a disability’ 

25 means an individual with a disability who—
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1 ‘‘(i) is not younger than 16 and not older 

2 than 21; 

3 ‘‘(ii) has been determined to be eligible 

4 under section 102(a) for assistance under this 

5 title; and 

6 ‘‘(iii)(I) is eligible for, and is receiving, 

7 special education under part B of the Individ8 uals with Disabilities Education Act (20 U.S.C. 

9 1411 et seq.); or 

10 ‘‘(II) is an individual with a disability, for 

11 purposes of section 504. 

12 ‘‘(B) The term ‘students with disabilities’ 

13 means more than 1 student with a disability.’’; and 

14 (4) by inserting after paragraph (38) the fol15 lowing: 

16 ‘‘(39) The term ‘transition services expansion 

17 year’ means—

18 ‘‘(A) the first fiscal year for which the 

19 amount appropriated under section 100(b) ex20 ceeds the amount appropriated under section 

21 100(b) for fiscal year 2004 by not less than 

22 $100,000,000; and 

23 ‘‘(B) each fiscal year subsequent to that 

24 first fiscal year.’’. 
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1 SEC. 405. STATE PLAN. 

2 (a) COORDINATION WITH EDUCATION OFFICIALS.—

3 Section 101(a) of the Rehabilitation Act of 1973 (29 

4 U.S.C. 721(a)) is amended—

5 (1) in paragraph (11)(D)(i) by inserting ‘‘, 

6 which may be provided using alternative means of 

7 meeting participation (such as video conferences and 

8 conference calls)’’ before the semicolon. 

9 (b) ASSESSMENT AND STRATEGIES.—Section 

10 101(a)(15) of the Rehabilitation Act of 1973 (29 U.S.C. 

11 721(a)(15)) is amended—

12 (1) in subparagraph (A) 

13 (A) in clause (i)—

14 (i) in subclause (II), by striking 

15 ‘‘and’’ at the end; 

16 (ii) in subclause (III), by adding 

17 ‘‘and’’ at the end; and 

18 (iii) by adding at the end the fol19 lowing: 

20 ‘‘(IV) in a transition services ex21 pansion year, students with disabil22 ities, including their need for transi23 tion services;’’; and 

24 (B) by redesignating clauses (ii) and (iii) 

25 as clauses (iii) and (iv), respectively, and insert26 ing after clause (i) the following: 
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1 ‘‘(ii) include an assessment of the transition services 

2 provided under this Act, and coordinated with transition 

3 services under the Individuals with Disabilities Education 

4 Act, as to those services meeting the needs of individuals 

5 with disabilities.’’; and 

6 (2) in subparagraph (D)—

7 (A) by redesignating clauses (iii), (iv), and 

8 (v) as clauses (iv), (v), and (vi), respectively; 

9 and 

10 (B) by inserting after clause (ii) the fol11 lowing: 

12 ‘‘(iii) in a transition services expan13 sion year, the methods to be used to im14 prove and expand vocational rehabilitation 

15 services for students with disabilities, in16 cluding the coordination of services de17 signed to facilitate the transition of such 

18 students from the receipt of educational 

19 services in school to the receipt of voca20 tional rehabilitation services under this 

21 title or to postsecondary education or em22 ployment;’’. 

23 (c) SERVICES FOR STUDENTS WITH DISABILITIES.—

24 Section 101(a) of the Rehabilitation Act of 1973 (29 
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1 U.S.C. 721(a)) is amended by adding at the end the fol2 lowing: 

3 ‘‘(25) SERVICES FOR STUDENTS WITH DISABIL4 ITIES.—The State plan for a transition services ex5 pansion year shall provide an assurance satisfactory 

6 to the Secretary that the State—

7 ‘‘(A) has developed and implemented strat8 egies to address the needs identified in the as9 sessment described in paragraph (15), and 

10 achieve the goals and priorities identified by the 

11 State, to improve and expand vocational reha12 bilitation services for students with disabilities 

13 on a statewide basis in accordance with para14 graph (15); and 

15 ‘‘(B) from funds reserved under section 

16 110A, shall carry out programs or activities de17 signed to improve and expand vocational reha18 bilitation services for students with disabilities 

19 that—

20 ‘‘(i) facilitate the transition of the stu21 dents with disabilities from the receipt of 

22 educational services in school, to the re23 ceipt of vocational rehabilitation services 

24 under this title, including, at a minimum, 
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1 those services specified in the interagency 

2 agreement required in paragraph (11)(D); 

3 ‘‘(ii) improve the achievement of post4 school goals of students with disabilities, 

5 including improving the achievement 

6 through participation (as appropriate when 

7 vocational goals are discussed) in meetings 

8 regarding individualized education pro9 grams developed under section 614 of the 

10 Individuals with Disabilities Education Act 

11 (20 U.S.C. 1414); 

12 ‘‘(iii) provide vocational guidance, ca13 reer exploration services, and job search 

14 skills and strategies and technical assist15 ance to students with disabilities; 

16 ‘‘(iv) support the provision of training 

17 and technical assistance to State and local 

18 educational agency and designated State 

19 agency personnel responsible for the plan20 ning and provision of services to students 

21 with disabilities; and 

22 ‘‘(v) support outreach activities to stu23 dents with disabilities who are eligible for, 

24 and need, services under this title.’’. 
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1 SEC. 406. SCOPE OF SERVICES. 

2 Section 103 of the Rehabilitation Act of 1973 (29 

3 U.S.C. 723) is amended—

4 (1) in subsection (a), by striking paragraph 

5 (15) and inserting the following: 

6 ‘‘(15) transition services for students with dis7 abilities, that facilitate the achievement of the em8 ployment outcome identified in the individualized 

9 plan for employment, including, in a transition serv10 ices expansion year, services described in clauses (i) 

11 through (iii) of section 101(a)(25)(B);’’; and 

12 (2) in subsection (b), by striking paragraph (6) 

13 and inserting the following: 

14 ‘‘(6)(A)(i) Consultation and technical assistance 

15 services to assist State and local educational agen16 cies in planning for the transition of students with 

17 disabilities from school to post-school activities, in18 cluding employment. 

19 ‘‘(ii) In a transition services expansion year, 

20 training and technical assistance described in section 

21 101(a)(25)(B)(iv). 

22 Consultation and technical assistance services to assist 

23 State and local educational agencies in planning for the 

24 transition of students with disabilities from school to post25 school activities, including employment. 
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1 ‘‘(B) In a transition services expansion year, 

2 services for groups of individuals with disabilities 

3 who meet the requirements of clauses (i) and (iii) of 

4 section 7(35)(A), including services described in 

5 clauses (i), (ii), (iii), and (v) of section 

6 101(a)(25)(B), to assist in the transition from 

7 school to post-school activities.’’. 

8 SEC. 407. STANDARDS AND INDICATORS. 

9 Section 106(a) of the Rehabilitation Act of 1973 (29 

10 U.S.C. 726(a)) is amended by striking paragraph (1)(C) 

11 and all that follows through paragraph (2) and inserting 

12 the following: 

13 ‘‘(2) MEASURES.—The standards and indica14 tors shall include outcome and related measures of 

15 program performance that—

16 ‘‘(A) facilitate the accomplishment of the 

17 purpose and policy of this title; 

18 ‘‘(B) to the maximum extent practicable, 

19 are consistent with the core indicators of per20 formance, and corresponding State adjusted lev21 els of performance, established under section 

22 136(b) of the Workforce Investment Act of 

23 1998 (29 U.S.C. 2871(b)); and 

24 ‘‘(C) include measures of the program’s 

25 performance with respect to the transition to 
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1 post-school vocational activities, and achieve2 ment of the post-school vocational goals, of stu3 dents with disabilities served under the pro4 gram.’’. 

5 SEC. 408. RESERVATION FOR EXPANDED TRANSITION 

6 SERVICES. 

7 The Rehabilitation Act of 1973 is amended by insert8 ing after section 110 (29 U.S.C. 730) the following: 

9 ‘‘SEC. 110A. RESERVATION FOR EXPANDED TRANSITION 

10 SERVICES. 

11 ‘‘(a) RESERVATION.—From the State allotment 

12 under section 110 in a transition services expansion year, 

13 each State shall reserve an amount calculated by the Com14 missioner under subsection (b) to carry out programs and 

15 activities under sections 101(a)(25)(B) and 103(b)(6). 

16 ‘‘(b) CALCULATION.—The Commissioner shall cal17 culate the amount to be reserved for such programs and 

18 activities for a fiscal year by each State by multiplying 

19 $50,000,000 by the percentage determined by dividing—

20 ‘‘(1) the amount allotted to that State under 

21 section 110 for the prior fiscal year; by 

22 ‘‘(2) the total amount allotted to all States 

23 under section 110 for that prior fiscal year.’’. 
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1 SEC. 409. CHAIRPERSON. 

2 Section 705(b)(5) of the Rehabilitation Act of 1973 

3 (29 U.S.C. 796d(b)(5)) is amended to read as follows: 

4 ‘‘(5) CHAIRPERSON.—The Council shall select a 

5 chairperson from among the voting membership of 

6 the Council.’’. 

7 SEC. 410. AUTHORIZATIONS OF APPROPRIATIONS. 

8 The Rehabilitation Act of 1973 is further amended—

9 (1) in section 100(b)(1) by striking ‘‘fiscal 

10 years 1999 through 2003’’ and inserting ‘‘fiscal 

11 years 2006 through 2011’’; 

12 (2) in section 100(d)(1)(B) by striking ‘‘fiscal 

13 year 2003’’ and inserting ‘‘fiscal year 2009’’; 

14 (3) in section 110(c) by amending paragraph 

15 (2) to read as follows: 

16 ‘‘(2) The sum referred to in paragraph (1) shall 

17 be, as determined by the Secretary, not less than 1 

18 percent and not more than 1.5 percent of the 

19 amount referred to in paragraph (1) for each of fis20 cal years 2003 through 2011.’’; 

21 (4) in section 112(h) by striking ‘‘fiscal years 

22 1999 through 2003’’ and inserting ‘‘fiscal years 

23 2006 through 2011’’; 

24 (5) in section 201(a) by striking ‘‘fiscal years 

25 1999 through 2003’’ each place it appears and in26 serting ‘‘fiscal years 2006 through 2011’’; 
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1 (6) in section 302(i) by striking ‘‘fiscal years 

2 1999 through 2003’’ and inserting ‘‘fiscal years 

3 2006 through 2011’’; 

4 (7) in section 303(e) by striking ‘‘fiscal years 

5 1999 through 2003’’ and inserting ‘‘fiscal years 

6 2006 through 2011’’; 

7 (8) in section 304(b) by striking ‘‘fiscal years 

8 1999 through 2003’’ and inserting ‘‘fiscal years 

9 2006 through 2011’’; 

10 (9) in section 305(b) by striking ‘‘fiscal years 

11 1999 through 2003’’ and insert ‘‘fiscal years 2006 

12 through 2011’’; 

13 (10) in section 405 by striking ‘‘fiscal years 

14 1999 through 2003’’ and inserting ‘‘fiscal years 

15 2006 through 2011’’; 

16 (11) in section 502(j) by striking ‘‘fiscal years 

17 1999 through 2003’’ and inserting ‘‘fiscal years 

18 2006 through 2011’’; 

19 (12) in section 509(i) by striking ‘‘fiscal years 

20 1999 through 2003’’ and inserting ‘‘fiscal years 

21 2006 through 2011’’; 

22 (13) in section 612 by striking ‘‘fiscal years 

23 1999 through 2003’’ and inserting ‘‘fiscal years 

24 2006 through 2011’’; 
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1 (14) in section 628 by striking ‘‘fiscal years 

2 1999 through 2003’’ and inserting ‘‘fiscal years 

3 2006 through 2011’’; 

4 (15) in section 714 by striking ‘‘fiscal years 

5 1999 through 2003’’ and inserting ‘‘fiscal years 

6 2006 through 2011’’; 

7 (16) in section 727 by striking ‘‘fiscal years 

8 1999 through 2003’’ and inserting ‘‘fiscal years 

9 2006 through 2011’’; and 

10 (17) in section 753 by striking ‘‘fiscal years 

11 1999 through 2003’’ and inserting ‘‘fiscal years 

12 2006 through 2011’’. 

13 SEC. 411. CONFORMING AMENDMENT. 

14 Section 1(b) of the Rehabilitation Act of 1973 is 

15 amended by inserting after the item relating to section 

16 110 the following:

‘‘Sec. 110A. Reservation for expanded transition services.’’.

17 SEC. 412. HELEN KELLER NATIONAL CENTER ACT. 

18 (a) GENERAL AUTHORIZATION OF APPROPRIA19 TIONS.—The first sentence of section 205(a) of the Helen 

20 Keller National Center Act (29 U.S.C. 1904(a)) is amend21 ed by striking ‘‘1999 through 2003’’ and inserting ‘‘2006 

22 through 2011’’. 

23 (b) HELEN KELLER NATIONAL CENTER FEDERAL

24 ENDOWMENT FUND.—The first sentence of section 

25 208(h) of such Act (29 U.S.C. 1907(h)) is amended by 
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1 striking ‘‘1999 through 2003’’ and inserting ‘‘2006 

2 through 2011’’. 

3 TITLE V—TRANSITION AND 

4 EFFECTIVE DATE 

5 SEC. 501. TRANSITION PROVISIONS. 

6 The Secretary of Labor shall take such actions as the 

7 Secretary determines to be appropriate to provide for the 

8 orderly implementation of this Act. 

9 SEC. 502. EFFECTIVE DATE. 

10 Except as otherwise provided in this Act, this Act and 

11 the amendments made by this Act, shall take effect on 

12 the date of enactment of this Act.

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