IIB 

109TH CONGRESS 

1ST SESSION H. R. 27 

IN THE SENATE OF THE UNITED STATES 

MARCH 3, 2005 

Received; read twice and referred to the Committee on Health, Education, 

Labor, and Pensions 

AN ACT 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Job Training Improve5 ment Act of 2005’’. 

6 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. Training for realtime writers. 

Sec. 125. Business partnership grants. 

Sec. 126. National dislocated worker grants. 

Sec. 127. Authorization of appropriations for national activities. 

Sec. 128. Requirements and restrictions. 

Sec. 129. Nondiscrimination. 

Sec. 130. Administrative provisions. 

Sec. 131. General program requirements. 

TITLE II—ADULT EDUCATION, BASIC SKILLS, AND FAMILY 

LITERACY EDUCATION 

Sec. 201. Table of contents. 
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Sec. 202. Amendment. 

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. Client assistance program. 

Sec. 410. Protection and advocacy of individual rights. 

Sec. 411. Chairperson. 

Sec. 412. Authorizations of appropriations. 

Sec. 413. Conforming amendment. 

Sec. 414. 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— 
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1 (1) by striking paragraphs (13) and (24) and 

2 redesignating paragraphs (1) through (12) as para3 graphs (3) through (14), and paragraphs (14) 

4 through (23) as paragraphs (15) through (24), re5 spectively; 

6 (2) by inserting after ‘‘In this title:’’ the fol7 lowing new paragraphs: 

8 ‘‘(1) ACCRUED EXPENDITURES.—The term ‘ac9 crued expenditures’ means charges incurred by re10 cipients of funds under this title for a given period 

11 requiring the provision of funds for goods or other 

12 tangible property received; services performed by 

13 employees, contractors, subgrantees, and other pay14 ees; and other amounts becoming owed under pro15 grams assisted under this title for which no current 

16 services or performance is required, such as annu17 ities, insurance claims, and other benefit payments. 

18 ‘‘(2) ADMINISTRATIVE COSTS.—The term ‘ad19 ministrative costs’ means expenditures incurred by 

20 State and local workforce investment boards, direct 

21 recipients (including State grant recipients under 

22 subtitle B and recipients of awards under subtitle 

23 D), local grant recipients, local fiscal agents or local 

24 grant subrecipients, and one-stop operators in the 

25 performance of administrative functions and in car-
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1 rying out activities under this title which are not re2 lated to the direct provision of workforce investment 

3 services (including services to participants and em4 ployers). Such costs include both personnel and non5 personnel and both direct and indirect.’’; 

6 (3) in paragraph (6) (as so redesignated), by 

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

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

9 (4) in paragraph (10) (as so redesignated)— 

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

11 ‘‘and’’ after the semicolon; 

12 (B) in subparagraph (C)— 

13 (i) by striking ‘‘not less than 50 per14 cent of the cost of the training’’ and in15 serting ‘‘a significant portion of the cost of 

16 training, as determined by the local 

17 board’’; and 

18 (ii) by striking the period and insert19 ing ‘‘; and’’; and 

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

21 ‘‘(D) in the case of customized training 

22 with an employer in multiple local areas in the 

23 State, for which such employer pays a signifi24 cant portion of the cost of the training, as de25 termined by the Governor.’’; 
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1 (5) in paragraph (11)(A)(ii)(II) (as so redesig2 nated) by striking ‘‘section 134(c)’’ and inserting 

3 ‘‘section 121(e)’’; 

4 (6) in paragraph (14)(A) (as so redesignated) 

5 by striking ‘‘section 122(e)(3)’’ and inserting ‘‘sec6 tion 122’’; 

7 (7) in paragraph (25)— 

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

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

10 clause (ii) and inserting ‘‘poverty line for an 

11 equivalent period;’’; and 

12 (B) by redesignating subparagraphs (D) 

13 through (F) as subparagraphs (E) through (G), 

14 respectively, and inserting after subparagraph 

15 (C) the following: 

16 ‘‘(D) receives or is eligible to receive free 

17 or reduced price lunch under the Richard B. 

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

19 1751 et seq.);’’; 

20 (8) in paragraph (32) by striking ‘‘the Republic 

21 of the Marshall Islands, the Federated States of Mi22 cronesia,’’; and 

23 (9) by striking paragraph (33) and redesig24 nating paragraphs (34) through (53) as paragraphs 

25 (33) through (52), respectively. 
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1 SEC. 102. PURPOSE. 

2 Section 106 (29 U.S.C. 2811) is amended by insert3 ing at the end the following: ‘‘It is also the purpose of 

4 this subtitle to provide workforce investment activities in 

5 a manner that promotes the informed choice of partici6 pants and actively involves participants in decisions affect7 ing their participation in such activities.’’. 

8 SEC. 103. STATE WORKFORCE INVESTMENT BOARDS. 

9 (a) MEMBERSHIP.— 

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

11 2821(b)) is amended— 

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

13 as follows: 

14 ‘‘(C) representatives appointed by the Gov15 ernor, who are— 

16 ‘‘(i)(I) the lead State agency officials 

17 with responsibility for the programs and 

18 activities that are described in section 

19 121(b) and carried out by one-stop part20 ners; 

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

22 State agency official has responsibility for 

23 such a program or activity, a representa24 tive in the State with expertise relating to 

25 such program or activity; and 
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1 ‘‘(III) if not included under subclause 

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

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

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

5 that in a State that has established 2 or 

6 more designated State units to administer 

7 the vocational rehabilitation program, the 

8 board representative shall be the director 

9 of the designated State unit that serves the 

10 most individuals with disabilities in the 

11 State; 

12 ‘‘(ii) the State agency officials respon13 sible for economic development; 

14 ‘‘(iii) representatives of business in 

15 the State who— 

16 ‘‘(I) are owners of businesses, 

17 chief executive or operating officers of 

18 businesses, and other business execu19 tives or employers with optimum pol20 icy making or hiring authority, includ21 ing members of local boards described 

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

23 ‘‘(II) represent businesses with 

24 employment opportunities that reflect 
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1 employment opportunities in the 

2 State; and 

3 ‘‘(III) are appointed from among 

4 individuals nominated by State busi5 ness organizations and business trade 

6 associations; 

7 ‘‘(iv) chief elected officials (rep8 resenting both cities and counties, where 

9 appropriate); 

10 ‘‘(v) representatives of labor organiza11 tions, who have been nominated by State 

12 labor federations; and 

13 ‘‘(vi) such other representatives and 

14 State agency officials as the Governor may 

15 designate.’’; and 

16 (B) in paragraph (3), by striking ‘‘para17 graph (1)(C)(i)’’ and inserting ‘‘paragraph 

18 (1)(C)(iii)’’. 

19 (2) CONFORMING AMENDMENT.—Section 

20 111(c) (29 U.S.C 2811(c)) is amended by striking 

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

22 (b)(1)(C)(iii)’’. 

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

24 2811(d)) is amended— 
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1 (1) in paragraph (2), by striking ‘‘section 

2 134(c)’’ and inserting ‘‘section 121(e)’’; 

3 (2) by amending paragraph (3) to read as fol4 lows: 

5 ‘‘(3) development and review of statewide poli6 cies affecting the integrated provision of services 

7 through the one-stop delivery system described in 

8 section 121, including— 

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

10 the issuance of, certifications of one-stop cen11 ters; 

12 ‘‘(B) the criteria for the allocation of one13 stop center infrastructure funding under section 

14 121(h), and oversight of the use of such funds; 

15 ‘‘(C) approaches to facilitating equitable 

16 and efficient cost allocation in one-stop delivery 

17 systems; and 

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

19 statewide objectives for, and enhance the per20 formance of, one-stop delivery systems within 

21 the State;’’; 

22 (3) in paragraph (4), by inserting ‘‘and the de23 velopment of State criteria relating to the appoint24 ment and certification of local boards under section 

25 117’’ after ‘‘section 116’’; 
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1 (4) in paragraph (5), by striking ‘‘sections 

2 128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec3 tions 128(b)(3) and 133(b)(3)’’; and 

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

5 and inserting ‘‘section 136(i)’’. 

6 (c) ELIMINATION OF ALTERNATIVE ENTITY AND

7 PROVISION OF AUTHORITY TO HIRE STAFF.—Section 

8 111(e) (29 U.S.C. 2821(e)) is amended to read as follows: 

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

10 may hire staff to assist in carrying out the functions de11 scribed in subsection (d).’’. 

12 SEC. 104. STATE PLAN. 

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

14 2822(a)) is amended by striking ‘‘5-year strategy’’ and in15 serting ‘‘2-year strategy’’. 

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

17 is amended— 

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

19 128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec20 tions 128(b)(3) and 133(b)(3)’’; 

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

22 134(c)’’ and inserting ‘‘section 121(e)’’; 

23 (3) in paragraph (17)(A)— 

24 (A) in clause (iii) by striking ‘‘and’’; 
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1 (B) by amending clause (iv) to read as fol2 lows: 

3 ‘‘(iv) how the State will serve the em4 ployment and training needs of dislocated 

5 workers (including displaced homemakers 

6 and formerly self-employed and 

7 transitioning farmers, ranchers, and fisher8 man) low income individuals (including re9 cipients of public assistance), individuals 

10 with limited English proficiency, homeless 

11 individuals, ex-offenders, individuals train12 ing for nontraditional employment, and 

13 other individuals with multiple barriers to 

14 employment (including older individuals); 

15 and’’; and 

16 (C) by inserting after clause (iv) the fol17 lowing: 

18 ‘‘(v) how the State will serve the em19 ployment and training needs of individuals 

20 with disabilities, consistent with section 

21 188 and Executive Order 13217 (42 

22 U.S.C. 12131 note; relating to community23 based alternatives for individuals with dis24 abilities) including the provision of out25 reach, intake, assessments, and service de-
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1 livery, the development of performance 

2 measures, the training of staff, and other 

3 aspects of accessibility to program services, 

4 consistent with sections 504 and 508 of 

5 the Rehabilitation Act of 1973; and’’; 

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

7 opportunity grants’’ and inserting ‘‘youth challenge 

8 grants’’; and 

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

10 paragraphs: 

11 ‘‘(19) a description of the methodology for de12 termining one-stop partner program contributions 

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

14 under section 121(h)(1) and of the formula for allo15 cating such infrastructure funds to local areas under 

16 section 121(h)(3); and 

17 ‘‘(20) a description of any programs and strate18 gies the State will utilize to meet the needs of busi19 nesses in the State, including small businesses, 

20 which may include providing incentives and technical 

21 assistance to assist local areas in engaging employ22 ers in local workforce development activities.’’. 

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

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

25 and inserting ‘‘2-year period’’. 
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1 SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS. 

2 (a) DESIGNATION OF AREAS.— 

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

4 (29 U.S.C. 2831(a)(1)(B)) is amended by adding at 

5 the end the following clause: 

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

7 areas will promote efficiency in the admin8 istration and provision of services.’’. 

9 (2) AUTOMATIC DESIGNATION.—Section 

10 116(a)(2) (29 U.S.C. 2831(a)(2)) is amended to 

11 read as follows: 

12 ‘‘(2) AUTOMATIC DESIGNATION.— 

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

14 subparagraph (B) of this paragraph and sub15 section (b), the Governor shall approve a re16 quest for designation as a local area from— 

17 ‘‘(i) any unit of general local govern18 ment with a population of 500,000 or 

19 more; and 

20 ‘‘(ii) an area served by a rural con21 centrated employment program grant re22 cipient that served as a service delivery 

23 area or substate area under the Job Train24 ing Partnership Act (29 U.S.C. 1501 et 

25 seq.), 
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1 for the 2-year period covered by a State plan 

2 under section 112 if such request is made not 

3 later than the date of the submission of the 

4 State plan. 

5 ‘‘(B) CONTINUED DESIGNATION BASED ON

6 PERFORMANCE.—The Governor may deny a re7 quest for designation submitted pursuant to 

8 subparagraph (A) if such unit of government 

9 was designated as a local area for the preceding 

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

11 Governor determines that such local area did 

12 not perform successfully during such period.’’. 

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

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

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

16 designated region to prepare a single regional plan that 

17 incorporates the elements of the local plan under section 

18 118 and that is submitted and approved in lieu of separate 

19 local plans under such section.’’. 

20 SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS. 

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

22 2832(b)(2)(A)) is amended— 

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

24 that are in the leading industries in the local area, 
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1 and large and small businesses in the local area’’ 

2 after ‘‘local area’’; 

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

4 ‘‘(ii) a superintendent of the local sec5 ondary school system, an administrator of 

6 an entity providing adult education and lit7 eracy activities that is not a one-stop part8 ner designated under section 121(b)(1)(B), 

9 and the president or chief executive officer 

10 of a postsecondary educational institution 

11 serving the local area (including commu12 nity colleges, where such entities exist);’’; 

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

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

15 (4) by striking clause (vi). 

16 (b) AUTHORITY OF BOARD MEMBERS.—Section 

17 117(b)(3) (29 U.S.C. 2832(b) is amended— 

18 (1) in the heading, by inserting ‘‘AND REP19 RESENTATION’’ after ‘‘MEMBERS’’; and 

20 (2) by adding at the end the following: ‘‘The 

21 members of the board shall represent diverse geo22 graphic sections within the local area.’’. 

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

24 2832(d)) is amended— 
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1 (1) in paragraph (2)(B), by striking ‘‘by award2 ing grants’’ and all that follows through ‘‘youth 

3 council’’; and 

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

5 the appropriate use and management of the funds 

6 provided under this title for such programs, activi7 ties, and system’’ after ‘‘area’’. 

8 (d) AUTHORITY TO ESTABLISH COUNCILS AND

9 ELIMINATION OF REQUIREMENT FOR YOUTH COUN10 CILS.—Section 117(h) (29 U.S.C. 2832(h)) is amended to 

11 read as follows: 

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

13 board may establish councils to provide information and 

14 advice to assist the local board in carrying out activities 

15 under this title. Such councils may include a council com16 posed of one-stop partners to advise the local board on 

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

18 council composed of experts and stakeholders in youth 

19 programs to advise the local board on activities for youth, 

20 and such other councils as the local board determines are 

21 appropriate.’’. 

22 (e) REPEAL OF ALTERNATIVE ENTITY PROVISION.— 

23 Section 117 (29 U.S.C. 2832) is further amended by strik24 ing subsection (i). 
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1 SEC. 107. LOCAL PLAN. 

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

3 2833(a)) is amended by striking ‘‘5-year’’ and inserting 

4 ‘‘2-year’’. 

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

6 is amended— 

7 (1) by amending paragraph (2) to read as fol8 lows: 

9 ‘‘(2) a description of the one-stop delivery sys10 tem to be established or designated in the local area, 

11 including a description of how the local board will 

12 ensure the continuous improvement of eligible pro13 viders of services through the system and ensure 

14 that such providers meet the employment needs of 

15 local employers and participants;’’; 

16 (2) in paragraph (4), by striking ‘‘and dis17 located worker’’; 

18 (3) in paragraph (9), by striking ‘‘; and’’ and 

19 inserting a semicolon; and 

20 (4) by redesignating paragraph (10) as para21 graph (12) and inserting after paragraph (9) the fol22 lowing: 

23 ‘‘(10) a description of the strategies and serv24 ices that will be initiated in the local area to engage 

25 employers, including small employers, in workforce 

26 development activities; 
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1 ‘‘(11) how the local area will serve the employ2 ment and training needs of individuals with disabil3 ities, consistent with section 188 and Executive 

4 Order 13217 (42 U.S.C. 12131 note) including the 

5 provision of outreach, intake, assessments, and serv6 ice delivery, the development of performance meas7 ures, the training of staff, and other aspects of ac8 cessibility to program services, consistent with sec9 tions 504 and 508 of the Rehabilitation Act of 1973; 

10 and’’. 

11 SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYS12 TEMS. 

13 (a) ONE-STOP PARTNERS.— 

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

15 (29 U.S.C. 2841(b)(1)) is amended— 

16 (A) in subparagraph (B)— 

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

18 (ii) by redesignating clauses (iii) and 

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

20 and by redesignating clauses (vi) through 

21 (xii) as clauses (iv) through (x), respec22 tively; 

23 (iii) in clause (ix) (as so redesig24 nated), by striking ‘‘and’’ at the end; 
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1 (iv) in clause (x) (as so redesignated), 

2 by striking the period and inserting ‘‘; 

3 and’’; and 

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

5 redesignated) the following: 

6 ‘‘(xi) programs authorized under part 

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

8 U.S.C. 601 et. seq.), subject to subpara9 graph (C).’’; and 

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

11 following: 

12 ‘‘(C) DETERMINATION BY THE GOV13 ERNOR.—The program referred to in clause (xi) 

14 of subparagraph (B) shall be included as a re15 quired partner for purposes of this title in a 

16 State unless the Governor of the State notifies 

17 the Secretary and the Secretary of Health and 

18 Human Services in writing of a determination 

19 by the Governor not to include such programs 

20 as required partners for purposes of this title in 

21 the State.’’. 

22 (2) ADDITIONAL PARTNERS.—Section 

23 121(b)(2)(B) (29 U.S.C. 2841(b)(2)(B)) is amend24 ed— 
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1 (A) by striking clause (i) and redesignating 

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

3 (iv) respectively; 

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

5 striking ‘‘and’’ at the end; 

6 (C) in clause (iv) (as so redesignated) by 

7 striking the period and inserting a semicolon; 

8 and 

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

10 clauses: 

11 ‘‘(v) employment and training pro12 grams administered by the Social Security 

13 Administration, including the Ticket to 

14 Work program (established by Public Law 

15 106–170); 

16 ‘‘(vi) employment and training pro17 grams carried out by the Small Business 

18 Administration; 

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

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

21 451 et seq.) (relating to child support en22 forcement); 

23 ‘‘(viii) employment, training, and lit24 eracy services carried out by public librar25 ies; and 
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1 ‘‘(ix) programs carried out in the local 

2 area for individuals with disabilities, in3 cluding programs carried out by State 

4 agencies relating to mental health, mental 

5 retardation, and developmental disabilities, 

6 State Medicaid agencies, State Inde7 pendent Living Councils, and Independent 

8 Living Centers.’’. 

9 (b) PROVISION OF SERVICES.—Subtitle B of title I 

10 is amended— 

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

12 134(c)’’ and inserting ‘‘subsection (e)’’; 

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

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

15 from section 134, redesignating such subsection as 

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

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

18 and 

19 (4) by amending subsection (e) of section 121 

20 (as moved and redesignated by paragraph (2))— 

21 (A) in paragraph (1)(A), by striking ‘‘sub22 section (d)(2)’’ and inserting ‘‘section 

23 134(c)(2)’’; 

24 (B) in paragraph (1)(B)— 
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1 (i) by striking ‘‘subsection (d)’’ and 

2 inserting ‘‘section 134(c)’’; and 

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

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

5 (C) in paragraph (1)(C), by striking ‘‘sub6 section (e)’’ and inserting ‘‘section 134(d)’’; 

7 (D) in paragraph (1)(D), by striking ‘‘sec8 tion 121(b)’’ and inserting ‘‘subsection (b)’’; 

9 and 

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

11 as follows: 

12 ‘‘(E) shall provide access to the informa13 tion described in section 15(e) of the Wagner14 Peyser Act (29 U.S.C. 49l-2(e)).’’. 

15 (c) CERTIFICATION AND FUNDING OF ONE-STOP

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

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

18 subsections: 

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

20 ‘‘(1) IN GENERAL.—The State board shall es21 tablish procedures and criteria for periodically certi22 fying one-stop centers for the purpose of awarding 

23 the one-stop infrastructure funding described in sub24 section (h). 
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1 ‘‘(2) CRITERIA.—The criteria for certification 

2 under this subsection shall include minimum stand3 ards relating to the scope and degree of service inte4 gration achieved by the centers involving the pro5 grams provided by the one-stop partners, and how 

6 the centers ensure that such providers meet the em7 ployment needs of local employers and participants. 

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

9 centers certified under this subsection shall be eligi10 ble to receive the infrastructure grants authorized 

11 under subsection (h). 

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

13 ‘‘(1) PARTNER CONTRIBUTIONS.— 

14 ‘‘(A) PROVISION OF FUNDS.—Notwith15 standing any other provision of law, as deter16 mined under subparagraph (B), a portion of the 

17 Federal funds provided to the State and areas 

18 within the State under the Federal laws author19 izing the one-stop partner programs described 

20 in subsection (b)(1)(B) and participating addi21 tional partner programs described in (b)(2)(B) 

22 for a fiscal year shall be provided to the Gov23 ernor by such programs to carry out this sub24 section. 
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1 ‘‘(B) DETERMINATION OF GOVERNOR.— 

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

3 consultation with the State board, shall deter4 mine the portion of funds to be provided under 

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

6 in making such determination shall consider the 

7 proportionate use of the one-stop centers by 

8 each partner, the costs of administration for 

9 purposes not related to one-stop centers for 

10 each partner, and other relevant factors de11 scribed in paragraph (3). 

12 ‘‘(C) LIMITATIONS.— 

13 ‘‘(i) PROVISION FROM ADMINISTRA14 TIVE FUNDS.—The funds provided under 

15 this paragraph by each one-stop partner 

16 shall be provided only from funds available 

17 for the costs of administration under the 

18 program administered by such partner, 

19 and shall be subject to the limitations with 

20 respect to the portion of funds under such 

21 programs that may be used for administra22 tion. 

23 ‘‘(ii) FEDERAL DIRECT SPENDING

24 PROGRAMS.—Programs that are Federal 

25 direct spending under section 250(c)(8) of 
26 

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1 the Balanced Budget and Emergency Def2 icit Control Act of 1985 (2 U.S.C. 

3 900(c)(8)) shall not, for purposes of this 

4 paragraph, be required to provide an 

5 amount in excess of the amount deter6 mined to be equivalent to the proportionate 

7 use of the one-stop centers by such pro8 grams in the State. 

9 ‘‘(iii) NATIVE AMERICAN PRO10 GRAMS.—Native American programs estab11 lished under section 166 shall not be sub12 ject to the provisions of this subsection. 

13 The method for determining the appro14 priate portion of funds to be provided by 

15 such Native American programs to pay for 

16 the costs of infrastructure of a one-stop 

17 center certified under subsection (g) shall 

18 be determined as part of the development 

19 of the memorandum of understanding 

20 under subsection (c) for the one-stop cen21 ter and shall be stated in the memo22 randum. 

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

24 funds provided under paragraph (1), the Governor 

25 shall allocate funds to local areas in accordance with 
27 

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1 the formula established under paragraph (3) for the 

2 purposes of assisting in paying the costs of the in3 frastructure of One-Stop centers certified under sub4 section (g). 

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

6 shall develop a formula to be used by the Governor 

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

8 The formula shall include such factors as the State 

9 board determines are appropriate, which may in10 clude factors such as the number of centers in the 

11 local area that have been certified, the population 

12 served by such centers, and the performance of such 

13 centers. 

14 ‘‘(4) COSTS OF INFRASTRUCTURE.—For pur15 poses of this subsection, the term ‘costs of infra16 structure’ means the nonpersonnel costs that are 

17 necessary for the general operation of a one-stop 

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

19 costs of utilities and maintenance, equipment (in20 cluding adaptive technology for individuals with dis21 abilities), strategic planning activities for the center, 

22 and common outreach activities. 

23 ‘‘(i) OTHER FUNDS.— 

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

25 provided to carry out subsection (h), a portion of 
28 

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1 funds made available under Federal law authorizing 

2 the one-stop partner programs described in sub3 section (b)(1)(B) and participating partner pro4 grams described in subsection (b)(2)(B), or the 

5 noncash resources available under such programs 

6 shall be used to pay the costs relating to the oper7 ation of the one-stop delivery system that are not 

8 paid for from the funds provided under subsection 

9 (h), to the extent not inconsistent with the Federal 

10 law involved including— 

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

12 of the funds provided under subsection (h); 

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

14 the costs of infrastructure; and 

15 ‘‘(C) the costs of the provision of core serv16 ices applicable to each program. 

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

18 method for determining the appropriate portion of 

19 funds and noncash resources to be provided by each 

20 program under paragraph (1) shall be determined as 

21 part of the memorandum of understanding under 

22 subsection (c). The State board shall provide guid23 ance to facilitate the determination of appropriate 

24 allocation of the funds and noncash resources in 

25 local areas.’’. 
29 

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1 SEC. 109. ELIGIBLE PROVIDERS OF TRAINING SERVICES. 

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

3 follows: 

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

5 TRAINING SERVICES. 

6 ‘‘(a) IN GENERAL.—The Governor shall establish cri7 teria and procedures regarding the eligibility of providers 

8 of training services described in section 134(c)(4) to re9 ceive funds provided under section 133(b) for the provision 

10 of such training services. 

11 ‘‘(b) CRITERIA.— 

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

13 pursuant to subsection (a) shall take into account 

14 the performance of providers of training services 

15 with respect to the indicators described in section 

16 136 or other appropriate indicators (taking into con17 sideration the characteristics of the population 

18 served and relevant economic conditions), and such 

19 other factors as the Governor determines are appro20 priate to ensure the quality of services, the account21 ability of providers, how the centers ensure that 

22 such providers meet the needs of local employers and 

23 participants, whether providers of training allow par24 ticipants to attain a certification, certificate, or mas25 tery, and the informed choice of participants under 

26 chapter 5. Such criteria shall require that the pro-
30 

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1 vider submit appropriate, accurate and timely infor2 mation to the State for purposes of carrying out 

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

4 periodic review and renewal of eligibility under this 

5 section for providers of training services. The Gov6 ernor may authorize local areas in the State to es7 tablish additional criteria or to modify the criteria 

8 established by the Governor under this section for 

9 purposes of determining the eligibility of providers of 

10 training services to provide such services in the local 

11 area. 

12 ‘‘(2) LIMITATION.—In carrying out the require13 ments of this subsection, no personally identifiable 

14 information regarding a student, including Social 

15 Security number, student identification number, or 

16 other identifier, may be disclosed without the prior 

17 written consent of the parent or eligible student in 

18 compliance with section 444 of the General Edu19 cation Provisions Act (20 U.S.C. 1232g). 

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

21 under subsection (a) shall identify the application process 

22 for a provider of training services to become eligible to 

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

24 training services, and identify the respective roles of the 

25 State and local areas in receiving and reviewing applica-
31 

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1 tions and in making determinations of eligibility based on 

2 the criteria established under this section. The procedures 

3 shall also establish a process for a provider of training 

4 services to appeal a denial or termination of eligibility 

5 under this section that includes an opportunity for a hear6 ing and prescribes appropriate time limits to ensure 

7 prompt resolution of the appeal. 

8 ‘‘(d) INFORMATION TO ASSIST PARTICIPANTS IN

9 CHOOSING PROVIDERS.— 

10 ‘‘(1) IN GENERAL.—In order to facilitate and 

11 assist participants under chapter 5 in choosing pro12 viders of training services, the Governor shall ensure 

13 that an appropriate list or lists of providers deter14 mined eligible under this section in the State, ac15 companied by such information as the Governor de16 termines is appropriate, is provided to the local 

17 boards in the State to be made available to such 

18 participants and to members of the public through 

19 the one-stop delivery system in the State. 

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

21 out programs under the Act of August 16, 1937 

22 (commonly known as the ‘National Apprenticeship 

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

24 seq.) shall be included on the list of eligible pro-
32 

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1 viders described in paragraph (1) for so long as such 

2 entity remains certified by the Department of Labor. 

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

4 may enter into agreements, on a reciprocal basis, to per5 mit eligible providers of training services to accept indi6 vidual training accounts provided in another State. 

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

8 procedures, and information required under this section, 

9 the Governor shall solicit and take into consideration the 

10 recommendations of local boards and providers of training 

11 services within the State. 

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

13 the development of the criteria, procedures, and informa14 tion required under this section, the Governor shall pro15 vide an opportunity for interested members of the public, 

16 including representatives of business and labor organiza17 tions, to submit comments regarding such criteria, proce18 dures, and information. 

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

20 TRAINING EXCEPTION.— 

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

22 training or customized training shall not be subject 

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

24 ‘‘(2) COLLECTION AND DISSEMINATION OF IN25 FORMATION.—A one-stop operator in a local area 
33 

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1 shall collect such performance information from on2 the-job training and customized training providers 

3 as the Governor may require, determine whether the 

4 providers meet such performance criteria as the Gov5 ernor may require, and disseminate information 

6 identifying providers that meet the criteria as eligi7 ble providers, and the performance information, 

8 through the one-stop delivery system. Providers de9 termined to meet the criteria shall be considered to 

10 be identified as eligible providers of training serv11 ices.’’. 

12 SEC. 110. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 

13 (a) ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.— 

14 Section 123 (29 U.S.C. 2843) is amended to read as fol15 lows: 

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

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

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

19 area shall award grants or contracts on a competitive basis 

20 to providers of youth activities identified based on the cri21 teria in the State plan and shall conduct oversight with 

22 respect to such providers. 

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

24 or contracts on a sole-source basis if such board deter25 mines there are an insufficient number of eligible pro-
34 

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1 viders of training services in the local area involved (such 

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

3 basis under subsection (a).’’. 

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

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

6 to section 123 to read as follows: 

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

7 SEC. 111. YOUTH ACTIVITIES. 

8 (a) STATE ALLOTMENTS.— 

9 (1) IN GENERAL.—Section 127(a) (29 U.S.C. 

10 2852(a)) is amended to read as follows: 

11 ‘‘(a) ALLOTMENT AMONG STATES.— 

12 ‘‘(1) YOUTH ACTIVITIES.— 

13 ‘‘(A) YOUTH CHALLENGE GRANTS.— 

14 ‘‘(i) RESERVATION OF FUNDS.—Of 

15 the amount appropriated under section 

16 137(a) for each fiscal year, the Secretary 

17 shall reserve 25 percent to provide youth 

18 challenge grants under section 169. 

19 ‘‘(ii) LIMITATION.—Notwithstanding 

20 clause (i), if the amount appropriated 

21 under section 137(a) for a fiscal year ex22 ceeds $1,000,000,000, the Secretary shall 

23 reserve $250,000,000 to provide youth 

24 challenge grants under section 169. 
35 

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1 ‘‘(B) OUTLYING AREAS AND NATIVE AMER2 ICANS.— 

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

4 the amount to be reserved under subpara5 graph (A), of the remainder of the amount 

6 appropriated under section 137(a) for each 

7 fiscal year the Secretary shall— 

‘‘(I) reserve not more than 1 8 ⁄4 of 

9 one percent of such amount to provide 

10 assistance to the outlying areas to 

11 carry out youth activities and state12 wide workforce investment activities; 

13 and 

14 ‘‘(II) reserve not more than 1 

and 1 15 ⁄2 percent of such amount to 

16 provide youth activities under section 

17 166 (relating to Native Americans). 

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

19 Palau shall cease to be eligible to receive 

20 funding under this subparagraph upon en21 tering into an agreement for extension of 

22 United States educational assistance under 

23 the Compact of Free Association (approved 

24 by the Compact of Free Association 

25 Amendments Act of 2003 (Public Law 
36 

HR 27 RFS 

1 108–188)) after the date of enactment of 

2 the Job Training Improvement Act of 

3 2005. 

4 ‘‘(C) STATES.— 

5 ‘‘(i) IN GENERAL.—Of the remainder 

6 of the amount appropriated under section 

7 137(a) for a fiscal year that is available 

8 after determining the amounts to be re9 served under subparagraphs (A) and (B), 

10 the Secretary shall allot— 

11 ‘‘(I) the amount of the remainder 

12 that is less than or equal to the total 

13 amount that was allotted to States for 

14 fiscal year 2005 under section 

15 127(b)(1)(C) of this Act (as in effect 

16 on the day before the date of enact17 ment of the Job Training Improve18 ment Act of 2005) in accordance with 

19 the requirements of such section 

20 127(b)(1)(C); and 

21 ‘‘(II) the amount of the remain22 der, if any, in excess of the amount 

23 referred to in subclause (I) in accord24 ance with clause (ii). 
37 

HR 27 RFS 

1 ‘‘(ii) FORMULAS FOR EXCESS

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

3 of the amounts described in clause 

4 (i)(II)— 

‘‘(I) 331 5 ⁄3 percent shall be allot6 ted on the basis of the relative num7 ber of individuals in the civilian labor 

8 force who are ages 16–19 in each 

9 State, compared to the total number 

10 of individuals in the civilian labor 

11 force who are ages 16–19 in all 

12 States; 

‘‘(II) 331 13 ⁄3 percent shall be allot14 ted on the basis of the relative num15 ber of unemployed individuals in each 

16 State, compared to the total number 

17 of unemployed individuals in all 

18 States; and 

‘‘(III) 331 19 ⁄3 percent shall be allot20 ted on the basis of the relative num21 ber of disadvantaged youth who are 

22 ages 16 through 21 in each State, 

23 compared to the total number of dis24 advantaged youth who are ages 16 

25 through 21 in all States. 
38 

HR 27 RFS 

1 ‘‘(iii) MINIMUM AND MAXIMUM PER2 CENTAGES.—The Secretary shall ensure 

3 that no State shall receive an allotment for 

4 a fiscal year that is less than 90 percent 

5 or greater than 130 percent of the allot6 ment percentage of that State for the pre7 ceding fiscal year. 

8 ‘‘(iv) SMALL STATE MINIMUM ALLOT9 MENT.—Subject to clause (iii), the Sec10 retary shall ensure that no State shall re11 ceive an allotment under this paragraph 

that is less than 3 12 ⁄10 of 1 percent of the 

13 amount available under subparagraph (A). 

14 ‘‘(2) DEFINITIONS.—For the purposes of para15 graph (1), the following definitions apply: 

16 ‘‘(A) ALLOTMENT PERCENTAGE.—The 

17 term ‘allotment percentage’, used with respect 

18 to fiscal year 2006 or a subsequent fiscal year, 

19 means a percentage of the remainder described 

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

21 an allotment made under this subsection for the 

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

23 2005, means the percentage of the amounts al24 lotted to States under this chapter (as in effect 

25 on the day before the date of enactment of the 
39 

HR 27 RFS 

1 Job Training Improvement Act of 2005) that is 

2 received by the State involved for fiscal year 

3 2005. 

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

5 ‘disadvantaged youth’ means an individual who 

6 is age 16 through 21 who received an income, 

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

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

9 does not exceed the poverty line. 

10 ‘‘(3) SPECIAL RULE.—For purposes of the for11 mulas specified in paragraph (1)(C), the Secretary 

12 shall, as appropriate and to the extent practicable, 

13 exclude college students and members of the Armed 

14 Forces from the determination of the number of dis15 advantaged youth.’’. 

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

17 2552) is further amended— 

18 (A) by striking subsection (b); 

19 (B) by redesignating subsection (c) as sub20 section (b); 

21 (C) in subsection (b) (as so redesig22 nated)— 

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

24 as follows: 
40 

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1 ‘‘(2) AMOUNT.—The amount available for real2 lotment for a program year is equal to the amount 

3 by which the unexpended balance at the end of the 

4 program year prior to the program year for which 

5 the determination is made exceeds 30 percent of the 

6 total amount of funds available to the State under 

7 this section during such prior program year (includ8 ing amounts allotted to the State in all prior pro9 gram years that remained available). For purposes 

10 of this paragraph, the expended balance is the 

11 amount that is the difference between— 

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

13 the State under this section during the program 

14 year prior to the program year for which the 

15 determination is made (including amounts allot16 ted to the State in all prior program years that 

17 remained available); and 

18 ‘‘(B) the accrued expenditures during such 

19 prior program year.’’; 

20 (ii) in paragraph (3)— 

21 (I) by striking ‘‘for the prior pro22 gram year’’ and inserting ‘‘for the 

23 program year in which the determina24 tion is made’’; and 
41 

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1 (II) by striking ‘‘such prior pro2 gram year’’ and inserting ‘‘such pro3 gram year’’; 

4 (iii) by amending paragraph (4) to 

5 read as follows: 

6 ‘‘(4) ELIGIBILITY.—For purposes of this sub7 section, an eligible State means a State which does 

8 not have an amount available for reallotment under 

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

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

11 (iv) in paragraph (5), by striking ‘‘ob12 ligation’’ and inserting ‘‘accrued expendi13 ture’’. 

14 (b) WITHIN STATE ALLOCATIONS.— 

15 (1) RESERVATION FOR STATEWIDE ACTIVI16 TIES.—Section 128(a) is amended to read as follows: 

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

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

19 shall reserve not more than 10 percent of the 

20 amount allotted to the State under section 

21 127(a)(1)(C) for a fiscal year for statewide activi22 ties. 

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

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

25 and reserved under paragraph (1) or allotted under 
42 

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

2 Governor may use the reserved amounts to carry out 

3 statewide youth activities under section 129(b) or 

4 statewide employment and training activities under 

5 section 133.’’. 

6 (2) WITHIN STATE ALLOCATIONS.—Section 

7 128(b) is amended to read as follows: 

8 ‘‘(b) WITHIN STATE ALLOCATION.— 

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

10 the State under section 127(a)(1)(C) and not re11 served under subsection (a)(1)— 

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

13 allocated by the Governor to local areas in ac14 cordance with paragraph (2); and 

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

16 allocated by the Governor to local areas in ac17 cordance with paragraph (3). 

18 ‘‘(2) ESTABLISHED FORMULA.— 

19 ‘‘(A) IN GENERAL.—Of the amounts de20 scribed in paragraph (1)(A), the Governor shall 

21 allocate— 

‘‘(i) 331 22 ⁄3 percent shall be allotted on 

23 the basis of the relative number of individ24 uals in the civilian labor force who are ages 

25 16–19 in each local area, compared to the 
43 

HR 27 RFS 

1 total number of individuals in the civilian 

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

3 areas in the State; 

‘‘(ii) 331 4 ⁄3 percent shall be allotted on 

5 the basis of the relative number of unem6 ployed individuals in each local area, com7 pared to the total number of unemployed 

8 individuals in all local areas in the State; 

9 and 

‘‘(iii) 331 10 ⁄3 percent on the basis of the 

11 relative number of disadvantaged youth 

12 who are ages 16 through 21 in each local 

13 area, compared to the total number of dis14 advantaged youth who are ages 16 through 

15 21 in all local areas in the State. 

16 ‘‘(B) MINIMUM AND MAXIMUM PERCENT17 AGES.—The Governor shall ensure that no local 

18 area shall receive an allocation for a fiscal year 

19 under this paragraph that is less than 90 per20 cent or greater than 130 percent of the alloca21 tion percentage of the local area for the pre22 ceding fiscal year. 

23 ‘‘(C) DEFINITIONS.— 

24 ‘‘(i) ALLOCATION PERCENTAGE.—For 

25 purposes of this paragraph, the term ‘allo-
44 

HR 27 RFS 

1 cation percentage’, used with respect to fis2 cal year 2006 or a subsequent fiscal year, 

3 means a percentage of the amount de4 scribed in paragraph(1)(A) that is received 

5 through an allocation made under this 

6 paragraph for the fiscal year. The term, 

7 with respect to fiscal year 2005, means the 

8 percentage of the amounts allocated to 

9 local areas under this chapter (as in effect 

10 on the day before the date of enactment of 

11 the Job Training Improvement Act of 

12 2005) that is received by the local area in13 volved for fiscal year 2005. 

14 ‘‘(ii) DISADVANTAGED YOUTH.—The 

15 term ‘disadvantaged youth’ means an indi16 vidual who is age 16 through 21 who re17 ceived an income, or is a member of a fam18 ily that received a total family income, 

19 that, in relation to family size, does not ex20 ceed the poverty line. 

21 ‘‘(3) YOUTH DISCRETIONARY ALLOCATION.— 

22 The Governor shall allocate to local areas the 

23 amounts described in paragraph (1)(B) in accord24 ance with such demographic and economic factors as 
45 

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1 the Governor, after consultation with the State 

2 board and local boards, determines are appropriate. 

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

4 ‘‘(A) IN GENERAL.—Of the amounts allo5 cated to a local area under this subsection and 

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

7 10 percent of the amount may be used by the 

8 local boards for the administrative costs of car9 rying out local workforce investment activities 

10 under this chapter or chapter 5. 

11 ‘‘(B) USE OF FUNDS.—Funds made avail12 able for administrative costs under subpara13 graph (A) may be used for the administrative 

14 costs of any of the local workforce investment 

15 activities described in this chapter or chapter 5, 

16 regardless of whether the funds were allocated 

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

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

19 U.S.C. 2853(c)) is amended— 

20 (A) in paragraph (1), by striking ‘‘para21 graph (2)(A) or (3) of’’; 

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

23 follows: 

24 ‘‘(2) AMOUNT.—The amount available for re25 allocation for a program year is equal to the amount 
46 

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1 by which the unexpended balance at the end of the 

2 program year prior to the program year for which 

3 the determination is made exceeds 30 percent of the 

4 total amount of funds available to the local area 

5 under this section during such prior program year, 

6 (including amounts allotted to the local area in prior 

7 program years that remain available). For purposes 

8 of this paragraph, the unexpended balance is the 

9 amount that is the difference between— 

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

11 the local area under this section during the pro12 gram year prior to the program year for which 

13 the determination is made (including amounts 

14 allocated to the local area in all prior program 

15 years that remained available); and 

16 ‘‘(B) the accrued expenditures during such 

17 prior program year.’’; 

18 (C) by amending paragraph (3)— 

19 (i) by striking ‘‘subsection (b)(3)’’ the 

20 first two places it appears and inserting 

21 ‘‘subsection (b)’’; 

22 (ii) by striking ‘‘the prior program 

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

24 which the determination is made’’; 
47 

HR 27 RFS 

1 (iii) by striking ‘‘such prior program 

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

3 and 

4 (iv) by striking the last sentence; and 

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

6 follows: 

7 ‘‘(4) ELIGIBILITY.—For purposes of this sub8 section, an eligible local area means a local area 

9 which does not have an amount available for re10 allocation under paragraph (2) for the program year 

11 for which the determination under paragraph (2) is 

12 made.’’. 

13 (c) YOUTH PARTICIPANT ELIGIBILITY.—Section 

14 129(a) (29 U.S.C. 2854(a)) is amended to read as follows: 

15 ‘‘(a) YOUTH PARTICIPANT ELIGIBILITY.— 

16 ‘‘(1) IN GENERAL.—The individuals partici17 pating in activities carried out under this chapter by 

18 a local area during any program year shall be indi19 viduals who, at the time the eligibility determination 

20 is made, are— 

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

22 than age 24; and 

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

24 ‘‘(i) school dropouts; 
48 

HR 27 RFS 

1 ‘‘(ii) recipients of a secondary school 

2 diploma, General Educational Development 

3 credential (GED), or other State-recog4 nized equivalent (including recognized al5 ternative standards for individuals with 

6 disabilities) who are deficient in basic skills 

7 and not attending any school; 

8 ‘‘(iii) court-involved youth attending 

9 an alternative school; 

10 ‘‘(iv) youth in foster care or who have 

11 been in foster care; or 

12 ‘‘(v) in school youth who are low-in13 come individuals and one or more of the 

14 following: 

15 ‘‘(I) Deficient in literacy skills. 

16 ‘‘(II) Homeless, runaway, or fos17 ter children. 

18 ‘‘(III) Pregnant or parents. 

19 ‘‘(IV) Offenders. 

20 ‘‘(V) Individuals who require ad21 ditional assistance to complete an edu22 cational program, or to secure and 

23 hold employment. 

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

25 priority in the provision of services under this chap-
49 

HR 27 RFS 

1 ter shall be given to individuals who are school drop2 outs. 

3 ‘‘(3) LIMITATIONS ON ACTIVITIES FOR IN4 SCHOOL YOUTH.— 

5 ‘‘(A) PERCENTAGE OF FUNDS.—For any 

6 program year, not more than 30 percent of the 

7 funds available for statewide activities under 

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

9 funds available to local areas under subsection 

10 (c), may be used to provide activities for in11 school youth meeting the requirements of para12 graph (1)(B)(v). 

13 ‘‘(B) NON-SCHOOL HOURS REQUIRED.— 

14 ‘‘(i) IN GENERAL.—Except as pro15 vided in clause (ii), activities carried out 

16 under this chapter for in-school youth 

17 meeting the requirements of paragraph 

18 (1)(B)(v) shall only be carried out in non19 school hours or periods when school is not 

20 in session (such as before and after school 

21 or during recess). 

22 ‘‘(ii) EXCEPTION.—The requirements 

23 of clause (i) shall not apply to activities 

24 carried out for in-school youth meeting the 

25 requirements of paragraph (1)(B)(v) dur-
50 

HR 27 RFS 

1 ing school hours that are part of a pro2 gram that has demonstrated effectiveness 

3 in high school youth attaining diplomas.’’. 

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

5 (29 U.S.C. 2854(b)) is amended to read as follows: 

6 ‘‘(b) STATEWIDE ACTIVITIES.— 

7 ‘‘(1) IN GENERAL.—Funds reserved by a Gov8 ernor for a State as described in sections 128(a) and 

9 133(a)(1) may be used for statewide activities in10 cluding— 

11 ‘‘(A) additional assistance to local areas 

12 that have high concentrations of eligible youth; 

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

16 ‘‘(C) conducting evaluations under section 

17 136(e) of activities authorized under this chap18 ter and chapter 5 in coordination with evalua19 tions carried out by the Secretary under section 

20 172, research, and demonstration projects; 

21 ‘‘(D) 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 
51 

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1 Act, and for exemplary performance by local 

2 areas on the local performance measures; 

3 ‘‘(E) 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 ‘‘(F) operating a fiscal and management 

12 accountability system under section 136(f); and 

13 ‘‘(G) carrying out monitoring and over14 sight of activities under this chapter and chap15 ter 5. 

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

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

18 by the State for administrative activities carried out 

19 under this subsection and section 133(a). 

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

21 subsection or in section 134(a) may be used to de22 velop or implement education curricula for school 

23 systems in the State.’’. 

24 (e) LOCAL ELEMENTS AND REQUIREMENTS.— 
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1 (1) PROGRAM DESIGN.—Section 129(c)(1) (29 

2 U.S.C. 2854(c) (1)) is amended— 

3 (A) in the matter preceding subparagraph 

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

5 appropriate, of’’; 

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

7 directly linked to one or more of the perform8 ance outcomes relating to this chapter under 

9 section 136, and that’’ after ‘‘for each partici10 pant that’’; and 

11 (C) in subparagraph (C)— 

12 (i) by redesignating clauses (i) 

13 through (iv) as clauses (ii) through (v), re14 spectively; 

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

16 so redesignated) the following: 

17 ‘‘(i) activities leading to the attain18 ment of a secondary school diploma, Gen19 eral Educational Development credential 

20 (GED), or other State-recognized equiva21 lent (including recognized alternative 

22 standards for individuals with disabil23 ities);’’; 
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1 (iii) in clause (ii) (as so redesignated), 

2 by inserting ‘‘and advanced training’’ after 

3 ‘‘opportunities’’; 

4 (iv) in clause (iii) (as so redesig5 nated), by inserting ‘‘that lead to the at6 tainment of recognized credentials’’ after 

7 ‘‘learning’’; and 

8 (v) by amending clause (v) (as redes9 ignated by this subparagraph) to read as 

10 follows: 

11 ‘‘(v) effective connections to employers 

12 in sectors of the local labor market experi13 encing high growth in employment oppor14 tunities.’’. 

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

16 (29 U.S.C. 2854(c)(2)) is amended— 

17 (A) in subparagraph (A), by striking ‘‘sec18 ondary school, including dropout prevention 

19 strategies’’ and inserting ‘‘secondary school di20 ploma, General Educational Development cre21 dential (GED), or other State-recognized equiv22 alent (including recognized alternative stand23 ards for individuals with disabilities), including 

24 dropout prevention strategies’’; 
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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 (2)(B) 

15 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, of which up to $125,000,000 may be 

4 used to carry out section 171(d); 

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

6 used for demonstration projects under section 

7 171; and 

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

9 to provide technical assistance under section 

10 170; and 

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

12 amount appropriated under section 137(b) for a fis13 cal year in accordance with subsection (b).’’. 

14 (2) ALLOTMENT AMONG STATES.—Section 

15 132(b) (29 U.S.C. 2862(b)) is amended to read as 

16 follows: 

17 ‘‘(b) ALLOTMENT AMONG STATES FOR ADULT EM18 PLOYMENT AND TRAINING ACTIVITIES.— 

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

20 ‘‘(A) IN GENERAL.—From the amount 

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

22 fiscal year, the Secretary shall reserve not more 

than 1 23 ⁄4 of 1 percent to provide assistance to 

24 outlying areas to carry out employment and 
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1 training activities for adults and statewide 

2 workforce investment activities. 

3 ‘‘(B) RESTRICTION.—The Republic of 

4 Palau shall cease to be eligible to receive fund5 ing under this paragraph upon entering into an 

6 agreement for extension of United States edu7 cational assistance under the Compact of Free 

8 Association (approved by the Compact of Free 

9 Association Amendments Act of 2003 (Public 

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

11 the Job Training Improvement Act of 2005. 

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

13 remainder of the amount referred to under sub14 section (a)(2) for a fiscal year that is available after 

15 determining the amount to be reserved under para16 graph (1), the Secretary shall allot to the States for 

17 employment and training activities for adults and for 

18 statewide workforce investment activities— 

19 ‘‘(A) 26 percent in accordance with para20 graph (3); and 

21 ‘‘(B) 74 percent in accordance with para22 graph (4). 

23 ‘‘(3) BASE FORMULA.— 

24 ‘‘(A) FISCAL YEAR 2006.— 
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1 ‘‘(i) IN GENERAL.—Subject to clause 

2 (ii), the amount referred to in paragraph 

3 (2)(A) shall be allotted for fiscal year 2006 

4 on the basis of allotment percentage of 

5 each State under section 6 of the Wagner6 Peyser Act for fiscal year 2005. 

7 ‘‘(ii) EXCESS AMOUNTS.—If the 

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

9 fiscal year 2006 exceeds the amount that 

10 was available for allotment to the States 

11 under the Wagner-Peyser Act for fiscal 

12 year 2005, such excess amount shall be al13 lotted on the basis of the relative number 

14 of individuals in the civilian labor force in 

15 each State, compared to the total number 

16 of individuals in the civilian labor force in 

17 all States, adjusted to ensure that no State 

receives less than 3 18 ⁄10 of one percent of 

19 such excess amount. 

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

21 this subparagraph, the term ‘allotment 

22 percentage’ means the percentage of the 

23 amounts allotted to States under section 6 

24 of the Wagner-Peyser Act that is received 

25 by the State involved for fiscal year 2005. 
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1 ‘‘(B) FISCAL YEARS 2007 AND THERE2 AFTER.— 

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

4 (ii), the amount referred to in para5 graph(2)(A) shall be allotted for fiscal year 

6 2007 and each fiscal year thereafter on the 

7 basis of the allotment percentage of each 

8 State under this paragraph for the pre9 ceding fiscal year. 

10 ‘‘(ii) EXCESS AMOUNTS.—If the 

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

12 fiscal year 2007 or any fiscal year there13 after exceeds the amount that was avail14 able for allotment under this paragraph for 

15 the prior fiscal year, such excess amount 

16 shall be allotted on the basis of the relative 

17 number of individuals in the civilian labor 

18 force in each State, compared to the total 

19 number of individuals in the civilian labor 

20 force in all States, adjusted to ensure that 

no State receives less than 3 21 ⁄10 of one per22 cent of such excess amount. 

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

24 this subparagraph, the term ‘allotment 

25 percentage’ means the percentage of the 
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1 amounts allotted to States under this para2 graph in a fiscal year that is received by 

3 the State involved for such fiscal year. 

4 ‘‘(4) CONSOLIDATED FORMULA.— 

5 ‘‘(A) IN GENERAL.—Subject to subpara6 graphs (B) and (C), of the amount referred to 

7 in paragraph (2)(B)— 

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

9 basis of the relative number of unemployed 

10 individuals in each State, compared to the 

11 total number of unemployed individuals in 

12 all States; 

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

14 the basis of the relative excess number of 

15 unemployed individuals in each State, com16 pared to the total excess number of unem17 ployed individuals in all States; and 

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

19 the basis of the relative number of dis20 advantaged adults in each State, compared 

21 to the total number of disadvantaged 

22 adults in all States. 

23 ‘‘(B) MINIMUM AND MAXIMUM PERCENT24 AGES.— 
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1 ‘‘(i) MINIMUM PERCENTAGE.—The 

2 Secretary shall ensure that no State shall 

3 receive an allotment under this paragraph 

4 for a fiscal year that is less than 90 per5 cent of the allotment percentage of the 

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

8 ‘‘(ii) MAXIMUM PERCENTAGE.—Sub9 ject to clause (i), the Secretary shall en10 sure that no State shall receive an allot11 ment for a fiscal year under this para12 graph that is more than 130 percent of the 

13 allotment of the State under this para14 graph for the preceding fiscal year. 

15 ‘‘(C) SMALL STATE MINIMUM ALLOT16 MENT.—Subject to subparagraph (B), the Sec17 retary shall ensure that no State shall receive 

18 an allotment under this paragraph that is less 

than 2 19 ⁄10 of 1 percent of the amount available 

20 under subparagraph (A). 

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

22 this paragraph: 

23 ‘‘(i) ALLOTMENT PERCENTAGE.—The 

24 term ‘allotment percentage’, used with re25 spect to fiscal year 2006 or a subsequent 
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1 fiscal year, means a percentage of the 

2 amounts described in paragraph (2)(B) 

3 that is received through an allotment made 

4 under this paragraph for the fiscal year. 

5 The term, with respect to fiscal year 2005, 

6 means the percentage of the amounts allot7 ted to States under this chapter (as in ef8 fect on the day before the date of enact9 ment of the Job Training Improvement 

10 Act of 2005) and under reemployment 

11 service grants received by the State in12 volved for fiscal year 2005. 

13 ‘‘(ii) DISADVANTAGED ADULT.—The 

14 term ‘disadvantaged adult’ means an indi15 vidual who is age 22 through 72 who re16 ceived an income, or is a member of a fam17 ily that received a total family income, 

18 that, in relation to family size, does not ex19 ceed the poverty line. 

20 ‘‘(iii) EXCESS NUMBER.—The term 

21 ‘excess number’ means, used with respect 

22 to the excess number of unemployed indi23 viduals within a State, the number that 

24 represents the number of unemployed indi-
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viduals in excess of 41 1 ⁄2 percent of the ci2 vilian labor force in the State. 

3 ‘‘(5) ADJUSTMENTS IN ALLOTMENTS BASED ON

4 DIFFERENCES WITH UNCONSOLIDATED FOR5 MULAS.— 

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

7 ensure that for any fiscal year no State has an 

8 allotment difference, as defined in subpara9 graph (C), that is less than zero. The Secretary 

10 shall adjust the amounts allotted to the States 

11 under this subsection in accordance with sub12 paragraph (B) if necessary to carry out this 

13 subparagraph. 

14 ‘‘(B) ADJUSTMENTS IN ALLOTMENTS.— 

15 ‘‘(i) REDISTRIBUTION OF EXCESS

16 AMOUNTS.— 

17 ‘‘(I) IN GENERAL.—If necessary 

18 to carry out subparagraph (A), the 

19 Secretary shall reduce the amounts 

20 that would be allotted under para21 graphs (3) and (4) to States that have 

22 an excess allotment difference, as de23 fined in subclause (II), by the amount 

24 of such excess, and use such amounts 

25 to increase the allotments to States 
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1 that have an allotment difference less 

2 than zero. 

3 ‘‘(II) EXCESS AMOUNTS.—For 

4 purposes of subclause (I), the term 

5 ‘excess’ allotment difference means an 

6 allotment difference for a State that 

7 is— 

8 ‘‘(aa) in excess of 3 percent 

9 of the amount described in sub10 paragraph (C)(i)(II); or 

11 ‘‘(bb) in excess of a percent12 age established by the Secretary 

13 that is greater than 3 percent of 

14 the amount described in subpara15 graph (C)(i)(II) if the Secretary 

16 determines that such greater per17 centage is sufficient to carry out 

18 subparagraph (A). 

19 ‘‘(ii) USE OF AMOUNTS AVAILABLE

20 UNDER NATIONAL RESERVE ACCOUNT.—If 

21 the funds available under clause (i) are in22 sufficient to carry out subparagraph (A), 

23 the Secretary shall use funds reserved 

24 under section 132(a) in such amounts as 

25 are necessary to increase the allotments to 
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1 States to meet the requirements of sub2 paragraph (A). Such funds shall be used in 

3 the same manner as the States use the 

4 other funds allotted under this subsection. 

5 ‘‘(C) DEFINITION OF ALLOTMENT DIF6 FERENCE.— 

7 ‘‘(i) IN GENERAL.—For purposes of 

8 this paragraph, the term ‘allotment dif9 ference’ means the difference between— 

10 ‘‘(I) the total amount a State 

11 would receive of the amounts available 

12 for allotment under subsection (b)(2) 

13 for a fiscal year pursuant to para14 graphs (3) and (4); and 

15 ‘‘(II) the total amount the State 

16 would receive of the amounts available 

17 for allotment under subsection (b)(2) 

18 for the fiscal year if such amounts 

19 were allotted pursuant to the uncon20 solidated formulas (applied as de21 scribed in clause (iii)) that were used 

22 in allotting funds for fiscal year 2005. 

23 ‘‘(ii) UNCONSOLIDATED FORMULAS.— 

24 For purposes of clause (i), the unconsoli25 dated formulas are: 
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1 ‘‘(I) The requirements for the al2 lotment of funds to the States con3 tained in section 132(b)(1)(B) of this 

4 Act (as in effect on the day before the 

5 date of enactment of the Job Training 

6 Improvement Act of 2005) that were 

7 applicable to the allotment of funds 

8 under such section for fiscal year 

9 2005. 

10 ‘‘(II) The requirements for the 

11 allotment of funds to the States con12 tained in section 132(b)(2)(B) of this 

13 Act (as in effect on the day before the 

14 date of enactment of the Job Training 

15 Improvement Act of 2005) that were 

16 applicable to the allotment of funds 

17 under such section for fiscal year 

18 2005. 

19 ‘‘(III) The requirements for the 

20 allotment of funds to the States that 

21 were contained in section 6 of the 

22 Wagner-Peyser Act (as in effect on 

23 the day before the date of enactment 

24 of the Job Training Improvement Act 

25 of 2005) that were applicable to the 
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1 allotment of funds under such Act for 

2 fiscal year 2005. 

3 ‘‘(IV) The requirements for the 

4 allotment of funds to the States that 

5 were established by the Secretary for 

6 Reemployment Services Grants that 

7 were applicable to the allotment of 

8 funds for such grants for fiscal year 

9 2005. 

10 ‘‘(iii) PROPORTIONATE APPLICATION

11 OF UNCONSOLIDATED FORMULAS BASED

12 ON FISCAL YEAR 2005.—In calculating the 

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

14 unconsolidated formulas identified in 

15 clause (ii) shall be applied, respectively, 

16 only to the proportionate share of the total 

17 amount of funds available for allotment 

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

19 that is equal to the proportionate share to 

20 which each of the unconsolidated formulas 

21 applied with respect to the total amount of 

22 funds allotted to the States under all of 

23 the unconsolidated formulas in fiscal year 

24 2005. 
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1 ‘‘(iv) RULE OF CONSTRUCTION.—The 

2 amounts used to adjust the allotments to a 

3 State under subparagraph (B) for a fiscal 

4 year shall not be included in the calcula5 tion of the amounts under clause (i) for a 

6 subsequent fiscal year, including the cal7 culation of allocation percentages for a 

8 preceding fiscal year applicable to para9 graphs (3) and (4) and to the unconsoli10 dated formulas described in clause (ii).’’. 

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

12 2862(c)) is amended— 

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

14 follows: 

15 ‘‘(2) AMOUNT.—The amount available for real16 lotment for a program year is equal to the amount 

17 by which the unexpended balance at the end of the 

18 program year prior to the program year for which 

19 the determination is made exceeds 30 percent of the 

20 total amount of funds available to the State under 

21 this section during such prior program year (includ22 ing amounts allotted to the State in all prior pro23 gram years that remained available). For purposes 

24 of this paragraph, the expended balance is the 

25 amount that is the difference between— 
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1 ‘‘(A) the total amount of funds available to 

2 the State under this section during the program 

3 year prior to the program year for which the 

4 determination is made (including amounts allot5 ted to the State in all prior program years that 

6 remained available); and 

7 ‘‘(B) the accrued expenditures during such 

8 prior program year.’’; 

9 (B) in paragraph (3)— 

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

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

12 in which the determination is made’’; and 

13 (ii) by striking ‘‘such prior program 

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

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

16 follows: 

17 ‘‘(4) ELIGIBILITY.—For purposes of this sub18 section, an eligible State means a State that does 

19 not have an amount available for reallotment under 

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

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

22 (D) in paragraph (5), by striking ‘‘obliga23 tion’’ and inserting ‘‘accrued expenditure’’. 

24 (d) WITHIN STATE ALLOCATIONS.— 
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1 (1) RESERVATION FOR STATE ACTIVITIES.— 

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

3 read as follows: 

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

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

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

7 for a fiscal year to carry out the statewide activities de8 scribed in section 134(a).’’. 

9 (2) ALLOCATIONS TO LOCAL AREAS.—Section 

10 133(b) (29 U.S.C. 2863(b)) is amended to read as 

11 follows: 

12 ‘‘(b) ALLOCATIONS TO LOCAL AREAS.— 

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

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

15 under subsection (a)— 

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

17 allocated by the Governor to local areas in ac18 cordance with paragraph (2); and 

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

20 allocated by the Governor to local areas in ac21 cordance with paragraph (3). 

22 ‘‘(2) ESTABLISHED FORMULA.— 

23 ‘‘(A) IN GENERAL.—Of the amounts de24 scribed in paragraph (1)(A), the Governor shall 

25 allocate— 
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1 ‘‘(i) 60 percent on the basis of the rel2 ative number of unemployed individuals in 

3 each local area, compared to the total 

4 number of unemployed individuals in all 

5 local areas in the State; 

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

7 relative excess number of unemployed indi8 viduals in each local area, compared to the 

9 total excess number of unemployed individ10 uals in all local areas in the State; and 

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

12 the basis of the relative number of dis13 advantaged adults in each local area, com14 pared to the total number of disadvantaged 

15 adults in all local areas in the State. 

16 ‘‘(B) MINIMUM AND MAXIMUM PERCENT17 AGES.—The Governor shall ensure that no local 

18 area shall receive an allocation for a fiscal year 

19 under this paragraph that is less than 90 per20 cent or greater than 130 percent of the alloca21 tion percentage of the local area for the pre22 ceding fiscal year. 

23 ‘‘(C) DEFINITIONS.— 

24 ‘‘(i) ALLOCATION PERCENTAGE.—The 

25 term ‘allocation percentage’, used with re-
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1 spect to fiscal year 2006 or a subsequent 

2 fiscal year, means a percentage of the 

3 amount described in paragraph (1)(A) that 

4 is received through an allocation made 

5 under this paragraph for the fiscal year. 

6 The term, with respect to fiscal year 2005, 

7 means the percentage of the amounts allo8 cated to local areas under this chapter (as 

9 in effect on the day before the date of en10 actment of the Job Training Improvement 

11 Act of 2005) that is received by the local 

12 area involved for fiscal year 2005. 

13 ‘‘(ii) DISADVANTAGED ADULT.—The 

14 term ‘disadvantaged adult’ means an indi15 vidual who is age 22 through 72 who re16 ceived an income, or is a member of a fam17 ily that received a total family income, 

18 that, in relation to family size, does not ex19 ceed the poverty line. 

20 ‘‘(iii) EXCESS NUMBER.—The term 

21 ‘excess number’ means, used with respect 

22 to the excess number of unemployed indi23 viduals within a local area, the number 

24 that represents the number of unemployed 
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1 individuals in excess of 4.5 percent of the 

2 civilian labor force in the local area. 

3 ‘‘(3) DISCRETIONARY ALLOCATION.—The Gov4 ernor shall allocate to local areas the amounts de5 scribed in paragraph (1)(B) based on a formula de6 veloped in consultation with the State board and 

7 local boards. Such formula shall be objective and 

8 geographically equitable and may include such demo9 graphic and economic factors as the Governor, after 

10 consultation with the State board and local boards, 

11 determines are appropriate. 

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

13 ‘‘(A) IN GENERAL.—Of the amounts allo14 cated to a local area under this subsection and 

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

16 10 percent of the amount may be used by the 

17 local boards for the administrative costs of car18 rying out local workforce investment activities 

19 under this chapter or chapter 4. 

20 ‘‘(B) USE OF FUNDS.—Funds made avail21 able for administrative costs under subpara22 graph (A) may be used for the administrative 

23 costs of any of the local workforce investment 

24 activities described in this chapter or chapter 4, 
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1 regardless of whether the funds were allocated 

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

3 (3) REALLOCATION AMONG LOCAL AREAS.— 

4 Section 133(c) (29 U.S.C. 2863(c)) is amended— 

5 (A) in paragraph (1), by striking ‘‘para6 graph (2)(A) or (3) of’’; 

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

8 follows: 

9 ‘‘(2) AMOUNT.—The amount available for re10 allocation for a program year is equal to the amount 

11 by which the unexpended balance at the end of the 

12 program year prior to the program year for which 

13 the determination is made exceeds 30 percent of the 

14 total amount of funds available to the local area 

15 under this section during such prior program year 

16 (including amounts allotted to the local area in prior 

17 program years that remain available). For purposes 

18 of this paragraph, the unexpended balance is the 

19 amount that is the difference between— 

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

21 the local area under this section during the pro22 gram year prior to the program year for which 

23 the determination is made (including amounts 

24 allocated to the local area in all prior program 

25 years that remained available); and 
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1 ‘‘(B) the accrued expenditures during such 

2 prior program year.’’; 

3 (C) by amending paragraph (3)— 

4 (i) by striking ‘‘subsection (b)(3)’’ the 

5 first two places it appears and inserting 

6 ‘‘subsection (b)’’; 

7 (ii) by striking ‘‘the prior program 

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

9 which the determination is made’’; 

10 (iii) by striking ‘‘such prior program 

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

12 and 

13 (iv) by striking the last sentence; and 

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

15 follows: 

16 ‘‘(4) ELIGIBILITY.—For purposes of this sub17 section, an eligible local area means a local area 

18 which does not have an amount available for re19 allocation under paragraph (2) for the program year 

20 for which the determination under paragraph (2) is 

21 made.’’. 

22 (e) USE OF FUNDS FOR EMPLOYMENT AND TRAIN23 ING ACTIVITIES.— 

24 (1) STATEWIDE EMPLOYMENT AND TRAINING

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

2 U.S.C. 2864(a)(1) is amended to read as fol3 lows: 

4 ‘‘(1) IN GENERAL.— 

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

6 than 50 percent of the funds reserved by a Gov7 ernor under section 133(a) shall be used to sup8 port the provision of core services in local areas, 

9 consistent with the local plan, through one-stop 

10 delivery systems by distributing funds to local 

11 areas in accordance with subparagraph (B). 

12 Such funds may be used by States to employ 

13 State personnel to provide such services in des14 ignated local areas in consultation with local 

15 boards. 

16 ‘‘(B) METHOD OF DISTRIBUTING

17 FUNDS.—The method of distributing funds 

18 under this paragraph shall be developed in con19 sultation with the State board and local boards. 

20 Such method of distribution, which may include 

21 the formula established under section 

22 121(h)(3), shall be objective and geographically 

23 equitable, and may include factors such as the 

24 number of centers in the local area that have 
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1 been certified, the population served by such 

2 centers, and the performance of such centers. 

3 ‘‘(C) OTHER USE OF FUNDS.—Funds re4 served by a Governor for a State— 

5 ‘‘(i) under section 133(a) and not 

6 used under subparagraph (A), may be used 

7 for statewide activities described in para8 graph (2); and 

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

10 used under subparagraph (A), and under 

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

12 any of the statewide employment and 

13 training activities described in paragraph 

14 (3).’’. 

15 (B) STATEWIDE RAPID RESPONSE ACTIVI16 TIES.—Section 134(a)(2) (29 U.S.C. 

17 2864(a)(2)) is amended to read as follows: 

18 ‘‘(2) STATEWIDE RAPID RESPONSE ACTIVI19 TIES.—A State shall carry out statewide rapid re20 sponse activities using funds reserved as described in 

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

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

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

24 entity designated by the State, working in con-
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1 junction with the local boards and the chief 

2 elected officials in the local areas; and 

3 ‘‘(B) provision of additional assistance to 

4 local areas that experience disasters, mass lay5 offs or plant closings, or other events that pre6 cipitate substantial increases in the number of 

7 unemployed individuals, carried out in local 

8 areas by the State, working in conjunction with 

9 the local boards and the chief elected officials in 

10 the local areas.’’. 

11 (C) STATEWIDE EMPLOYMENT AND TRAIN12 ING ACTIVITIES.—Section 134(a)(3) (29 U.S.C. 

13 2864(a)(3)) is amended to read as follows: 

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

15 by a Governor for a State as described in sections 

16 133(a) and 128(a) may be used for statewide activi17 ties including— 

18 ‘‘(A) supporting the provision of core serv19 ices described in section 134(c)(2) in the one20 stop delivery system; 

21 ‘‘(B) conducting evaluations under section 

22 136(e) of activities authorized under this chap23 ter and chapter 4 in coordination with evalua24 tions carried out by the Secretary under section 

25 172, research, and demonstration projects; 
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1 ‘‘(C) providing incentive grants to local 

2 areas for regional cooperation among local 

3 boards (including local boards in a designated 

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

5 coordination of activities carried out under this 

6 Act, and for exemplary performance by local 

7 areas on the local performance measures; 

8 ‘‘(D) providing technical assistance and ca9 pacity building to local areas, one-stop opera10 tors, one-stop partners, and eligible providers, 

11 including the development and training of staff, 

12 the development of exemplary program activi13 ties, and the provision of technical assistance to 

14 local areas that fail to meet local performance 

15 measures; 

16 ‘‘(E) operating a fiscal and management 

17 accountability system under section 136(f); 

18 ‘‘(F) carrying out monitoring and oversight 

19 of activities carried out under this chapter and 

20 chapter 4; 

21 ‘‘(G) implementing innovative programs, 

22 such as incumbent worker training programs, 

23 programs and strategies designed to meet the 

24 needs of businesses in the State, including small 

25 businesses, and engage employers in workforce 
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1 activities, and programs serving individuals 

2 with disabilities consistent with section 188; 

3 ‘‘(H) developing strategies for effectively 

4 serving hard-to-serve populations and for inte5 grating programs and services among one-stop 

6 partners; 

7 ‘‘(I) implementing innovative programs for 

8 displaced homemakers, which for purposes of 

9 this subparagraph may include an individual 

10 who is receiving public assistance and is within 

11 2 years of exhausting lifetime eligibility under 

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

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

14 ‘‘(J) implementing programs to increase 

15 the number of individuals training for and 

16 placed in nontraditional employment; and 

17 ‘‘(K) carrying out activities to facilitate re18 mote access to services provided through a one19 stop delivery system, including facilitating ac20 cess through the use of technology.’’. 

21 (D) LIMITATION ON STATE ADMINISTRA22 TIVE EXPENDITURES.—Section 134(a) is fur23 ther amended by adding the following new 

24 paragraph: 
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1 ‘‘(4) LIMITATION.—Not more than 5 percent of 

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

3 by the State for administrative activities carried out 

4 under this subsection and section 128(a).’’. 

5 (2) LOCAL EMPLOYMENT AND TRAINING AC6 TIVITIES.—Section 134(b) (29 U.S.C. 2864(b)) is 

7 amended— 

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

9 and all that follows through ‘‘section 

10 133(b)(2)(B)’’ and inserting ‘‘under section 

11 133(b)’’; and 

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

13 ‘‘or dislocated workers, respectively’’ . 

14 (3) TECHNICAL AMENDMENT.—Section 134 is 

15 further amended by redesignating subsections (d) 

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

17 (4) REQUIRED LOCAL EMPLOYMENT AND

18 TRAINING ACTIVITIES.— 

19 (A) ALLOCATED FUNDS.—Section 

20 134(c)(1) (29 U.S.C. 2864(c)(1)) (as redesig21 nated by paragraph (3)) is amended to read as 

22 follows: 

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

24 area for adults under section 133(b) shall be used— 
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1 ‘‘(A) to establish a one-stop delivery sys2 tem as described in section 121(e); 

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

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

5 system in accordance with such paragraph; 

6 ‘‘(C) to provide the intensive services de7 scribed in paragraph (3) to adults described in 

8 such paragraph; and 

9 ‘‘(D) to provide training services described 

10 in paragraph (4) to adults described in such 

11 paragraph.’’. 

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

13 (29 U.S.C. 2864(c)(2)) (as redesignated by 

14 paragraph (3)) is amended— 

15 (i) by striking ‘‘who are adults or dis16 located workers’’; 

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

18 ‘‘under this subtitle’’ and inserting ‘‘under 

19 the one-stop partner programs described in 

20 section 121(b)’’; 

21 (iii) by amending subparagraph (D) to 

22 read as follows: 

23 ‘‘(D) labor exchange services, including— 
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1 ‘‘(i) job search and placement assist2 ance, and where appropriate career coun3 seling; 

4 ‘‘(ii) appropriate recruitment services 

5 for employers; and 

6 ‘‘(iii) reemployment services provided 

7 to unemployment claimants.’’; 

8 (iv) in subparagraph (I), by inserting 

9 ‘‘and the administration of the work test 

10 for the unemployment compensation sys11 tem’’ after ‘‘compensation’’; and 

12 (v) by amending subparagraph (J) to 

13 read as follows: 

14 ‘‘(J) assistance in establishing eligibility 

15 for programs of financial aid assistance for 

16 training and education programs that are not 

17 funded under this Act and are available in the 

18 local area; and’’. 

19 (C) INTENSIVE SERVICES.—Section 

20 134(c)(3) (29 U.S.C. 2864(c)(3) (as redesig21 nated by paragraph (3) of this subsection) is 

22 amended— 

23 (i) by amending subparagraph (A) to 

24 read as follows: 

25 ‘‘(A) IN GENERAL.— 
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1 ‘‘(i) ELIGIBILITY.—Funds allocated to 

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

3 used to provide intensive services for 

4 adults who— 

5 ‘‘(I) are unemployed and who 

6 have been determined by the one-stop 

7 operator to be— 

8 ‘‘(aa) unlikely or unable to 

9 obtain suitable employment 

10 through core services; and 

11 ‘‘(bb) in need of intensive 

12 services in order to obtain suit13 able employment; or 

14 ‘‘(II) are employed, but who are 

15 determined by a one-stop operator to 

16 be in need of intensive services to ob17 tain or retain suitable employment. 

18 ‘‘(ii) DEFINITION.—The Governor 

19 shall define the term ‘suitable employment’ 

20 for purposes of this subparagraph.’’; and 

21 (ii) in subparagraph (C)— 

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

23 participants seeking training services 

24 under paragraph (4)’’; and 
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1 (II) by adding the following 

2 clauses after clause (vi): 

3 ‘‘(vii) Internships and work experi4 ence. 

5 ‘‘(viii) Literacy activities relating to 

6 basic work readiness, information and com7 munication technology literacy activities, 

8 and financial literacy activities. 

9 ‘‘(ix) Out-of-area job search assistance 

10 and relocation assistance.’’. 

11 (D) TRAINING SERVICES.—Section 

12 134(c)(4) (as redesignated by paragraph (3) of 

13 this subsection) is amended— 

14 (i) by amending subparagraph (A) to 

15 read as follows: 

16 ‘‘(A) IN GENERAL.— 

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

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

19 used to provide training services to adults 

20 who— 

21 ‘‘(I) after an interview, evalua22 tion, or assessment, and case manage23 ment, have been determined by a one24 stop operator or one-stop partner, as 

25 appropriate, to— 
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1 ‘‘(aa) be unlikely or unable 

2 to obtain or retain suitable em3 ployment through intensive serv4 ices under paragraph (3)(A); 

5 ‘‘(bb) be in need of training 

6 services to obtain or retain suit7 able employment; and 

8 ‘‘(cc) have the skills and 

9 qualifications to successfully par10 ticipate in the selected program 

11 of training services; 

12 ‘‘(II) select programs of training 

13 services that are directly linked to the 

14 employment opportunities in the local 

15 area involved or in another area in 

16 which the adults receiving such serv17 ices are willing to commute or relo18 cate; 

19 ‘‘(III) who meet the requirements 

20 of subparagraph (B); and 

21 ‘‘(IV) who are determined eligible 

22 in accordance with the priority system 

23 in effect under subparagraph (E). 
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1 ‘‘(ii) DEFINITION.—The Governor 

2 shall define the term ‘suitable employment’ 

3 for purposes of this subparagraph.’’; 

4 (ii) in subparagraph (B)(i), by strik5 ing ‘‘Except’’ and inserting ‘‘Notwith6 standing section 479B of the Higher Edu7 cation Act of 1965 (20 U.S.C. 1087uu) 

8 and except’’; 

9 (iii) in subparagraph (D)— 

10 (I) by amending clause (iv) to 

11 read as follows: 

12 ‘‘(iv) entrepreneurial training, includ13 ing providing information about obtaining 

14 microcredit loans for the purpose of start15 ing a business, including contact informa16 tion of microcredit lenders operating within 

17 the local area;’’; 

18 (II) in clause (viii) by inserting 

19 ‘‘(including English as a Second Lan20 guage)’’ after ‘‘activities’’; and 

21 (III) by redesignating clause (ix) 

22 as clause (x) and inserting after 

23 clause (viii) the following: 
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1 ‘‘(ix) training that integrates occupa2 tional skills training and English language 

3 acquisition;’’; 

4 (iv) by amending subparagraph (E) to 

5 read as follows: 

6 ‘‘(E) PRIORITY.— 

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

8 given to unemployed individuals for the 

9 provision of intensive and training services 

10 under this subsection. 

11 ‘‘(ii) ADDITIONAL PRIORITY.—If the 

12 funds in the local area, including the funds 

13 allocated under section 133(b), for serving 

14 recipients of public assistance and other 

15 low-income individuals, including single 

16 parents, displaced homemakers, and preg17 nant single women, is limited, the priority 

18 for the provision of intensive and training 

19 services under this subsection shall include 

20 such recipients and individuals. 

21 ‘‘(iii) DETERMINATIONS.—The Gov22 ernor and the appropriate local board shall 

23 direct the one-stop operators in the local 

24 area with regard to making determinations 
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1 with respect to the priority of service under 

2 this subparagraph.’’; 

3 (v) in subparagraph (F), by adding 

4 the following clause after clause (iii): 

5 ‘‘(iv) ENHANCED INDIVIDUAL TRAIN6 ING ACCOUNTS.—Each local board may, 

7 through one-stop centers, assist individuals 

8 receiving individual training accounts 

9 through the establishment of such accounts 

10 that include, in addition to the funds pro11 vided under this paragraph, funds from 

12 other programs and sources that will assist 

13 the individual in obtaining training serv14 ices.’’; 

15 (vi) in subparagraph (G)(iv), by redes16 ignating subclause (IV) as subclause (V) 

17 and inserting after subclause (III) the fol18 lowing: 

19 ‘‘(IV) Individuals with disabil20 ities.’’; and 

21 (vii) by adding at the end the fol22 lowing: 

23 ‘‘(H) COMPUTER TECHNOLOGY.—In pro24 viding training services under subparagraph 

25 (G), funds allocated to a local area under this 
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1 title may be used to purchase computer tech2 nology for use by an individual who is eligible 

3 pursuant to subsection (A), only if— 

4 ‘‘(i) such purchase is part of an ongo5 ing training program; and 

6 ‘‘(ii) such purchase is necessary to en7 sure the individual can participate in such 

8 training program. 

9 Any purchase of computer technology under 

10 this subparagraph shall remain the property of 

11 the one-stop operator.’’. 

12 (5) PERMISSIBLE ACTIVITIES.—Section 134(d) 

13 (as redesignated by paragraph (3)) is amended— 

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

15 follows: 

16 ‘‘(1) DISCRETIONARY ONE-STOP DELIVERY AC17 TIVITIES.— 

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

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

20 provide, through the one-stop delivery system— 

21 ‘‘(i) customized screening and referral 

22 of qualified participants in training serv23 ices to employers; 
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1 ‘‘(ii) customized employment-related 

2 services to employers on a fee-for-service 

3 basis; 

4 ‘‘(iii) customer support to navigate 

5 among multiple services and activities for 

6 special participant populations that face 

7 multiple barriers to employment, including 

8 individuals with disabilities; 

9 ‘‘(iv) employment and training assist10 ance provided in coordination with child 

11 support enforcement activities of the State 

12 agency carrying out subtitle D of title IV 

13 of the Social Security Act; 

14 ‘‘(v) activities to improve services to 

15 local employers, including small employers 

16 in the local area, and increase linkages be17 tween the local workforce investment sys18 tem and employers; and 

19 ‘‘(vi) activities to facilitate remote ac20 cess to services provided through a one21 stop delivery system, including facilitating 

22 access through the use of technology. 

23 ‘‘(B) WORK SUPPORT ACTIVITIES FOR

24 LOW-WAGE WORKERS.— 
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1 ‘‘(i) IN GENERAL.—Funds allocated to 

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

3 provide, through the one-stop delivery sys4 tem and in collaboration with the appro5 priate programs and resources of the one6 stop partners, work support activities de7 signed to assist low-wage workers in re8 taining and enhancing employment. 

9 ‘‘(ii) ACTIVITIES.—The activities de10 scribed in clause (i) may include assistance 

11 in accessing financial supports for which 

12 such workers may be eligible and the provi13 sion of activities available through the one14 stop delivery system in a manner that en15 hances the opportunities of such workers 

16 to participate, such as the provision of em17 ployment and training activities during 

18 nontraditional hours and the provision of 

19 on-site child care while such activities are 

20 being provided.’’; and 

21 (B) by adding after paragraph (3) the fol22 lowing new paragraph: 

23 ‘‘(4) INCUMBENT WORKER TRAINING PRO24 GRAMS.— 
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1 ‘‘(A) IN GENERAL.—The local board may 

2 use up to 10 percent of the funds allocated to 

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

4 incumbent worker training programs in accord5 ance with this paragraph. 

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

7 programs for incumbent workers under this 

8 paragraph shall be carried out by the local area 

9 in conjunction with the employers of such work10 ers for the purpose of assisting such workers in 

11 obtaining the skills necessary to retain employ12 ment and avert layoffs. 

13 ‘‘(C) EMPLOYER MATCH REQUIRED.— 

14 ‘‘(i) IN GENERAL.—Employers partici15 pating in programs under this paragraph 

16 shall be required to pay a proportion of the 

17 costs of providing the training to the in18 cumbent workers. The Governor shall es19 tablish, or may authorize the local board to 

20 establish, the required portion of such 

21 costs, which shall not be less than— 

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

23 employers with 50 or fewer employees; 

24 ‘‘(II) 25 percent of the costs, for 

25 employers with more than 50 employ-
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1 ees but fewer than 100 employees; 

2 and 

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

4 employers with 100 or more employ5 ees. 

6 ‘‘(ii) CALCULATION OF MATCH.—The 

7 wages paid by an employer to a worker 

8 while they are attending training may be 

9 included as part of the requirement pay10 ment of the employer.’’. 

11 SEC. 113. PERFORMANCE ACCOUNTABILITY SYSTEM. 

12 (a) STATE PERFORMANCE MEASURES.— 

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

14 U.S.C. 2871(b)(1)) is amended— 

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

16 ‘‘and the customer satisfaction indicator of per17 formance described in paragraph (2)(B)’’; and 

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

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

20 (2)(B)’’. 

21 (2) INDICATORS OF PERFORMANCE.—Section 

22 136(b)(2) (29 U.S.C. 2871(b)(2)) is amended— 

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

24 ‘‘(except for self-service and information activi25 ties) and (for participants who are eligible 
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1 youth age 19 through 21) for youth activities 

2 authorized under section 129’’; 

3 (B) in subparagraph (A)(i)(II), by insert4 ing ‘‘and’’ after the semicolon; 

5 (C) in subparagraph (A)(i)(III), by strik6 ing ‘‘; and’’ and inserting a period; 

7 (D) by striking subparagraph (A)(i)(IV); 

8 (E) by amending subparagraph (A)(ii) to 

9 read as follows: 

10 ‘‘(ii) CORE INDICATORS FOR ELIGIBLE

11 YOUTH.—The core indicators of perform12 ance for youth activities authorized under 

13 section 129 shall consist of— 

14 ‘‘(I) entry into employment, edu15 cation or advanced training, or mili16 tary service; 

17 ‘‘(II) attainment of secondary 

18 school diploma, General Educational 

19 Development credential (GED), or 

20 other State-recognized equivalent (in21 cluding recognized alternative stand22 ards for individuals with disabilities); 

23 and 

24 ‘‘(III) literacy or numeracy 

25 gains.’’; 
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1 (F) by striking subparagraph (B); and 

2 (G) by redesignating subparagraph (C) as 

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

4 such subparagraph (as so redesignated) the fol5 lowing new sentence: ‘‘Such indicators may in6 clude customer satisfaction of employers and 

7 participants with services received from the 

8 workforce investment activities authorized 

9 under this subtitle.’’. 

10 (3) LEVELS OF PERFORMANCE.—Section 

11 136(b)(3)(A) (29 U.S.C. 2871(b)(3)(A)) is amend12 ed— 

13 (A) in clause (i), by striking ‘‘and the cus14 tomer satisfaction indicator described in para15 graph (2)(B)’’; 

16 (B) in clause (ii), by striking ‘‘and the cus17 tomer satisfaction indicator of performance, for 

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

19 (C) in clause (iii)— 

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

21 FIRST 3 YEARS’’; and 

22 (ii) by striking ‘‘and the customer sat23 isfaction indicator of performance, for the 

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

25 (D) in clause (iv)— 
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1 (i) by striking subclause (I); 

2 (ii) by redesignating subclauses (II) 

3 and (III) as subclauses (I) and (II), re4 spectively; and 

5 (iii) in subclause (I) (as so redesig6 nated)— 

7 (I) by striking ‘‘taking into ac8 count’’ and inserting ‘‘which shall be 

9 adjusted based on’’; 

10 (II) by inserting ‘‘, such as un11 employment rates and job losses or 

12 gains in particular industries’’ after 

13 ‘‘economic conditions’’; and 

14 (III) by inserting ‘‘, such as indi15 cators of poor work history, lack of 

16 work experience, low levels of literacy 

17 or English proficiency, disability sta18 tus, including the number of veterans 

19 with disabilities, and welfare depend20 ency’’ after ‘‘program’’; 

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

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

23 (v). 
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1 (4) ADDITIONAL INDICATORS.—Section 

2 136(b)(3)(B) is amended by striking ‘‘paragraph 

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

4 (b) LOCAL PERFORMANCE MEASURES.—Section 

5 136(c) (29 U.S.C 2871(c)) is amended— 

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

7 the customer satisfaction indicator of performance 

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

9 (2) in paragraph (1)(A)(ii), by striking ‘‘sub10 section (b)(2)(C)’’ and inserting ‘‘subsection 

11 (b)(2)(B)’’; and 

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

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

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

16 elected official, and the Governor shall ensure such 

17 levels are adjusted based on the specific economic 

18 characteristics (such as unemployment rates and job 

19 losses or gains in particular industries), demographic 

20 characteristics, or other characteristics of the popu21 lation to be served in the local area, such as poor 

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

23 literacy or English proficiency, disability status, in24 cluding the number of veterans with disabilities, and 

25 welfare dependency.’’. 
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1 (c) REPORT.—Section 136(d) (29 U.S.C. 2871(d)) is 

2 amended— 

3 (1) in paragraph (1), by striking ‘‘and the cus4 tomer satisfaction indicator’’ in both places that it 

5 appears; 

6 (2) in paragraph (2)— 

7 (A) in subparagraph (E), by striking ‘‘(ex8 cluding participants who received only self-serv9 ice and informational activities); and’’ and in10 serting a semicolon; 

11 (B) in subparagraph (F), by striking the 

12 period and inserting ‘‘; and’’; and 

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

14 ‘‘(G) the number of participants served 

15 and the cost per participant.’’; and 

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

17 ‘‘(4) DATA VALIDATION.—In preparing the re18 ports described in this subsection, the States shall 

19 establish procedures, consistent with guidelines 

20 issued by the Secretary, to ensure the information 

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

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

23 U.S.C. 2871(g)) is amended— 

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

25 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 chapters 4 

25 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 ‘‘(2) 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 ‘‘section 132(a), $3,140,000,000 for fiscal year 

6 2006 and such sums as may be necessary for each of fiscal 

7 years 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) INDUSTRY COUNCILS.—Section 154(b) (29 

13 U.S.C. 2894(b)) is amended— 

14 (1) in paragraph (1)(A), by striking ‘‘local and 

15 distant’’; and 

16 (2) by adding after paragraph (2) the following: 

17 ‘‘(3) EMPLOYERS OUTSIDE OF LOCAL AREAS.— 

18 The industry council may include, or otherwise pro19 vide for consultation with, employers from outside 

20 the local area who are likely to hire a significant 

21 number of enrollees from the Job Corps center.’’. 

22 (b) INDICATORS OF PERFORMANCE AND ADDITIONAL

23 INFORMATION.—Section 159(c) (29 U.S.C. 2893(c)) is 

24 amended— 
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1 (1) by amending paragraph (1) to read as fol2 lows: 

3 ‘‘(1) CORE INDICATORS.—The Secretary shall 

4 annually establish expected levels of performance for 

5 Job Corps centers and the Job Corps program relat6 ing to each of the core indicators for youth identified 

7 in section 136(b)(2)(A)(ii).’’; and 

8 (2) in paragraph (2), by striking ‘‘measures’’ 

9 each place it appears and inserting ‘‘indicators’’. 

10 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

11 161 (29 U.S.C. 2901) is amended by striking ‘‘1999 

12 through 2003’’ and inserting ‘‘2006 through 2011’’. 

13 SEC. 116. NATIVE AMERICAN PROGRAMS. 

14 (a) ADVISORY COUNCIL.—Section 166(h)(4)(C) (29 

15 U.S.C. 2911(h)(4)(C)) is amended to read as follows: 

16 ‘‘(C) DUTIES.—The Council shall advise 

17 the Secretary on the operation and administra18 tion of the programs assisted under this sec19 tion.’’. 

20 (b) ASSISTANCE TO AMERICAN SAMOANS IN HA21 WAII.—Section 166 (29 U.S.C. 2911) is further amended 

22 by striking subsection (j). 
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1 SEC. 117. MIGRANT AND SEASONAL FARMWORKER PRO2 GRAMS. 

3 Section 167(d) is amended by inserting ‘‘(including 

4 permanent housing)’’ after ‘‘housing’’. 

5 SEC. 118. VETERANS’ WORKFORCE INVESTMENT PRO6 GRAMS. 

7 Section 168(a)(3)(C) (29 U.S.C. 2913 (a)(3)(C)) is 

8 amended by striking ‘‘section 134(c)’’ and inserting ‘‘sec9 tion 121(e)’’. 

10 SEC. 119. YOUTH CHALLENGE GRANTS. 

11 (a) IN GENERAL.—Section 169 (29 U.S.C. 2914) is 

12 amended to read as follows: 

13 ‘‘SEC. 169. YOUTH CHALLENGE GRANTS. 

14 ‘‘(a) IN GENERAL.—Of the amounts reserved by the 

15 Secretary under section 127(a)(1)(A) for a fiscal year— 

16 ‘‘(1) the Secretary shall use not less than 80 

17 percent to award competitive grants under sub18 section (b); and 

19 ‘‘(2) the Secretary may use not more than 20 

20 percent to award discretionary grants under sub21 section (c). 

22 ‘‘(b) COMPETITIVE GRANTS TO STATES AND LOCAL

23 AREAS.— 

24 ‘‘(1) ESTABLISHMENT.—From the funds de25 scribed in subsection (a)(1), the Secretary shall 

26 award competitive grants to eligible entities to carry 
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1 out activities authorized under this section to assist 

2 eligible youth in acquiring the skills, credentials and 

3 employment experience necessary to succeed in the 

4 labor market. 

5 ‘‘(2) ELIGIBLE ENTITIES.—Grants under this 

6 subsection may be awarded to States, local boards, 

7 recipients of grants under section 166 (relating to 

8 Native American programs), and public or private 

9 entities (including consortia of such entities) apply10 ing in conjunction with local boards. 

11 ‘‘(3) GRANT PERIOD.—The Secretary may 

12 make a grant under this section for a period of 1 

13 year and may renew the grants for each of the 4 

14 succeeding years. 

15 ‘‘(4) AUTHORITY TO REQUIRE MATCH.—The 

16 Secretary may require that grantees under this sub17 section provide a non-Federal share of the cost of 

18 activities carried out under a grant awarded under 

19 this subsection. 

20 ‘‘(5) PARTICIPANT ELIGIBILITY.—Youth ages 

21 14 through 19 as of the time the eligibility deter22 mination is made may be eligible to participate in 

23 activities provided under this subsection. 

24 ‘‘(6) USE OF FUNDS.—Funds under this sub25 section may be used for activities that are designed 
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1 to assist youth in acquiring the skills, credentials 

2 and employment experience that are necessary to 

3 succeed in the labor market, including the activities 

4 identified in section 129. The activities may include 

5 activities such as— 

6 ‘‘(A) training and internships for out-of7 school youth in sectors of the economy experi8 encing or projected to experience high growth; 

9 ‘‘(B) after-school dropout prevention activi10 ties for in-school youth; 

11 ‘‘(C) activities designed to assist special 

12 youth populations, such as court-involved youth 

13 and youth with disabilities; and 

14 ‘‘(D) activities combining remediation of 

15 academic skills, work readiness training, and 

16 work experience, and including linkages to post17 secondary education, apprenticeships, and ca18 reer-ladder employment. 

19 ‘‘(7) APPLICATIONS.—To be eligible to receive a 

20 grant under this subsection, an eligible entity shall 

21 submit an application to the Secretary at such time, 

22 in such manner, and containing such information as 

23 the Secretary may require, including— 
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1 ‘‘(A) a description of the activities the eli2 gible entity will provide to eligible youth under 

3 this subsection; 

4 ‘‘(B) a description of the programs of dem5 onstrated effectiveness on which the provision 

6 of the activities under subparagraph (A) are 

7 based, and a description of how such activities 

8 will expand the base of knowledge relating to 

9 the provision of activities for youth; 

10 ‘‘(C) a description of the private and pub11 lic, and local and State resources that will be le12 veraged to provide the activities described under 

13 subparagraph (A) in addition to the funds pro14 vided under this subsection; and 

15 ‘‘(D) the levels of performance the eligible 

16 entity expects to achieve with respect to the in17 dicators of performance for youth specified in 

18 section 136(b)(2)(A)(ii). 

19 ‘‘(8) FACTORS FOR AWARD.—In awarding 

20 grants under this subsection the Secretary may con21 sider the quality of the proposed project, the goals 

22 to be achieved, the likelihood of successful implemen23 tation, the extent to which the project is based on 

24 proven strategies or the extent to which the project 

25 will expand the knowledge base on activities for 
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1 youth, and the additional State, local or private re2 sources that will be provided. 

3 ‘‘(9) EVALUATION.—The Secretary may reserve 

4 up to 5 percent of the funds described in sub5 section(a)(1) to provide technical assistance to, and 

6 conduct evaluations of the projects funded under 

7 this subsection (using appropriate techniques as de8 scribed in section 172(c)). 

9 ‘‘(c) DISCRETIONARY GRANTS FOR YOUTH ACTIVI10 TIES.— 

11 ‘‘(1) IN GENERAL.—From the funds described 

12 in subsection(a)(2), the Secretary may award grants 

13 to eligible entities to provide activities that will as14 sist youth in preparing for, and entering and retain15 ing, employment. 

16 ‘‘(2) ELIGIBLE ENTITIES.—Grants under this 

17 subsection may be awarded to public or private enti18 ties that the Secretary determines would effectively 

19 carry out activities relating to youth under this sub20 section. 

21 ‘‘(3) PARTICIPANT ELIGIBILITY.—Youth ages 

22 14 through 19 at the time the eligibility determina23 tion is made may be eligible to participate in activi24 ties under this subsection. 
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1 ‘‘(4) USE OF FUNDS.—Funds provided under 

2 this subsection may be used for activities that will 

3 assist youth in preparing for, and entering and re4 taining, employment, including the activities de5 scribed in section 129 for out-of-school youth, activi6 ties designed to assist in-school youth to stay in 

7 school and gain work experience, and such other ac8 tivities that the Secretary determines are appro9 priate. 

10 ‘‘(5) APPLICATIONS.—To be eligible to receive a 

11 grant under this subsection, an eligible entity shall 

12 submit an application to the Secretary at such time, 

13 in such manner, and containing such information as 

14 the Secretary may require. 

15 ‘‘(6) ADDITIONAL REQUIREMENTS.—The Sec16 retary may require the provision of a non-Federal 

17 share for projects funded under this subsection and 

18 may require participation of grantees in evaluations 

19 of such projects, including evaluations using the 

20 techniques as described in section 172(c).’’. 

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

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

23 to section 169 to read as follows: 

‘‘Sec. 169. Youth challenge grants.’’. 

24 SEC. 120. TECHNICAL ASSISTANCE. 

25 Section 170 (29 U.S.C. 2915) is amended— 
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1 (1) by striking subsection (b); 

2 (2) by striking 

3 ‘‘(a) GENERAL TECHNICAL ASSISTANCE.—’’; 

4 (3) by redesignating paragraphs (1), (2), and 

5 (3) as subsections (a), (b), and (c) respectively, and 

6 moving such subsections 2 ems to the left; 

7 (4) in subsection (a) (as redesignated by para8 graph (3))— 

9 (A) by inserting ‘‘the training of staff pro10 viding rapid response services, the training of 

11 other staff of recipients of funds under this 

12 title, peer review activities under this title, as13 sistance regarding accounting and program op14 eration practices (when such assistance would 

15 not be duplicative to assistance provided by the 

16 State), technical assistance to States that do 

17 not meet State performance measures described 

18 in section 136,’’ after ‘‘localities,’’; and 

19 (B) by striking ‘‘from carrying out activi20 ties’’ and all that follows up to the period and 

21 inserting ‘‘to implement the amendments made 

22 by the Job Training Improvement Act of 

23 2005’’; and 

24 (5) by inserting, after subsection (c) (as redes25 ignated by paragraph (3)), the following: 
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1 ‘‘(d) BEST PRACTICES COORDINATION.—The Sec2 retary shall establish a system whereby States may share 

3 information regarding best practices with regard to the 

4 operation of workforce investment activities under this 

5 Act.’’. 

6 SEC. 121. DEMONSTRATION, PILOT, MULTISERVICE, RE7 SEARCH AND MULTI-STATE PROJECTS. 

8 (a) DEMONSTRATION AND PILOT PROJECTS.—Sec9 tion 171(b) (29 U.S.C. 2916(b)) is amended— 

10 (1) in paragraph (1)— 

11 (A) by striking ‘‘Under a’’ and inserting 

12 ‘‘Consistent with the priorities specified in the’’; 

13 (B) by amending subparagraphs (A) 

14 through (D) to read as follows: 

15 ‘‘(A) projects that assist national employ16 ers in connecting with the workforce investment 

17 system established under this title in order to 

18 facilitate the recruitment and employment of 

19 needed workers and to provide information to 

20 such system on skills and occupations in de21 mand; 

22 ‘‘(B) projects that promote the develop23 ment of systems that will improve the effective24 ness and efficiency of programs carried out 

25 under this title; 
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1 ‘‘(C) projects that focus on opportunities 

2 for employment in industries and sectors of in3 dustries that are experiencing or are likely to 

4 experience high rates of growth, including those 

5 relating to information technology; 

6 ‘‘(D) projects carried out by States and 

7 local areas to test innovative approaches to de8 livering employment-related services;’’; 

9 (C) by striking subparagraph (E); 

10 (D) by redesignating subparagraphs (F) 

11 and (G) as subparagraphs (E) and (F), respec12 tively; 

13 (E) in subparagraph (F) (as so redesig14 nated, by striking ‘‘; and’’ and inserting a semi15 colon; 

16 (F) by inserting after subparagraph (F) 

17 (as so redesignated) the following: 

18 ‘‘(G) projects that provide retention grants 

19 to qualified job training programs upon place20 ment or retention of a low-income individual 

21 trained by that program in employment with a 

22 single employer for a period of 1 year, provided 

23 that such employment is providing to the low24 income individual an income not less than twice 

25 the poverty line for that individual;’’; 
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1 (G) by amending subparagraph (H) to 

2 read as follows: 

3 ‘‘(H) projects that focus on opportunities 

4 for employment in industries and sectors of in5 dustries that are being transformed by tech6 nology and innovation requiring new knowledge 

7 or skill sets for workers, including advanced 

8 manufacturing; and’’; and 

9 (H) by adding at the end the following: 

10 ‘‘(I) projects carried out by States and 

11 local areas to assist adults or out of school 

12 youth in starting a small business, including 

13 training and assistance in business or financial 

14 management or in developing other skills nec15 essary to operate a business.’’; and 

16 (2) in paragraph (2)— 

17 (A) by striking subparagraph (B); and 

18 (B) by redesignating subparagraph (C) as 

19 subparagraph (B). 

20 (b) MULTISERVICE PROJECTS.—Section 

21 171(c)(2)(B) (29 U.S.C. 2916(c)(2)(B)) is amended to 

22 read as follows: 

23 ‘‘(B) NET IMPACT STUDIES AND RE24 PORTS.—The Secretary shall conduct studies to 

25 determine the net impacts of programs, serv-
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1 ices, and activities carried out under this title. 

2 The Secretary shall prepare and disseminate to 

3 Congress and the public reports containing the 

4 results of such studies.’’. 

5 SEC. 122. COMMUNITY-BASED JOB TRAINING. 

6 Section 171(d) of the Workforce Investment Act of 

7 1998 is amended to read as follows: 

8 ‘‘(d) COMMUNITY-BASED JOB TRAINING.— 

9 ‘‘(1) DEMONSTRATION PROJECT.—In addition 

10 to the demonstration projects under subsection (b), 

11 the Secretary may establish and implement a na12 tional demonstration project designed to develop 

13 local solutions to the workforce challenges facing 

14 high-growth, high-skill industries with labor short15 ages, and increase opportunities for workers to gain 

16 access to employment in high-growth, high-demand 

17 occupations by promoting the establishment of part18 nerships among education entities, the workforce in19 vestment system, and businesses in high-growth, 

20 high-skill industries. 

21 ‘‘(2) GRANTS.—In carrying out the demonstra22 tion project under this subsection, the Secretary 

23 shall award competitive grants, in accordance with 

24 generally applicable Federal requirements, to eligible 
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1 entities to carry out activities authorized under this 

2 subsection. 

3 ‘‘(3) DEFINITIONS.— 

4 ‘‘(A) ELIGIBLE ENTITY.—In this sub5 section, the term ‘eligible entity’ means a com6 munity college or consortium of community col7 leges that shall work in conjunction with— 

8 ‘‘(i) the local workforce investment 

9 system; and 

10 ‘‘(ii) business or businesses in a quali11 fied industry or an industry association in 

12 a qualified industry. 

13 ‘‘(B) QUALIFIED INDUSTRY.—In this sub14 section, the term ‘qualified industry’ means an 

15 industry or economic sector that is projected to 

16 experience significant growth, such as an indus17 try and economic sector that— 

18 ‘‘(i) is projected to add substantial 

19 numbers of new jobs to the economy; 

20 ‘‘(ii) has significant impact on the 

21 economy; 

22 ‘‘(iii) impacts the growth of other in23 dustries and economic sectors; 
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1 ‘‘(iv) is being transformed by tech2 nology and innovation requiring new 

3 knowledge or skill sets for workers; 

4 ‘‘(v) is a new or emerging industry or 

5 economic sector that is projected to grow; 

6 or 

7 ‘‘(vi) has high-skilled occupations and 

8 significant labor shortages in the local 

9 area. 

10 ‘‘(C) COMMUNITY COLLEGE.—As used in 

11 this subsection, the term ‘community college’ 

12 means an institution of higher education, as de13 fined in section 101 of the Higher Education 

14 Act of 1965 (20 U.S.C. 1001), that provides 

15 not less than a 2-year program that is accept16 able for full credit toward a bachelor’s degree, 

17 or is a tribally controlled college or university. 

18 ‘‘(4) AUTHORITY TO REQUIRE NON-FEDERAL

19 SHARE.—The Secretary may require that recipients 

20 of grants under this subsection provide a non-Fed21 eral share, from either cash or noncash resources, of 

22 the costs of activities carried out under a grant 

23 awarded under this subsection. 

24 ‘‘(5) USE OF FUNDS.—Grants awarded under 

25 this subsection may be used for— 
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1 ‘‘(A) the development, by a community col2 lege, in consultation with representatives of 

3 qualified industries, of rigorous training and 

4 education programs related to employment in a 

5 qualified industry identified in the eligible enti6 ty’s application; 

7 ‘‘(B) training of adults and dislocated 

8 workers in the skills and competencies needed 

9 to obtain or upgrade employment in a qualified 

10 industry identified in the eligible entity’s appli11 cation; 

12 ‘‘(C) disseminating to adults and dis13 located workers, through the one-stop delivery 

14 system, information on high-growth, high-de15 mand occupations in qualified industries; 

16 ‘‘(D) placing, through the one-stop delivery 

17 system, trained individuals into employment in 

18 qualified industries; and 

19 ‘‘(E) increasing the integration of commu20 nity colleges with activities of businesses and 

21 the one-stop delivery system to meet the train22 ing needs for qualified industries. 

23 ‘‘(6) APPLICATIONS.—To be eligible to receive a 

24 grant under this subsection, an eligible entity shall 

25 submit an application to the Secretary at such time, 
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1 in such manner, and containing such information as 

2 the Secretary may require, including— 

3 ‘‘(A) a description of the community col4 lege that will offer training under the grant; 

5 ‘‘(B) an economic analysis of the local 

6 labor market to identify high-growth, high-de7 mand industries and identify the workforce 

8 issues faced by those industries; 

9 ‘‘(C) a description of the qualified industry 

10 for which training will occur and the availability 

11 of competencies on which training will be based; 

12 ‘‘(D) an assurance that the application was 

13 developed in consultation with the local board 

14 or boards in the area or areas where the pro15 posed grant will be used; 

16 ‘‘(E) performance outcomes for the grant, 

17 including expected number of individuals to be 

18 trained in a qualified industry, the employment 

19 and retention rates for such individuals in a 

20 qualified industry, and earnings increases for 

21 such individuals; 

22 ‘‘(F) a description of how the activities 

23 funded by the proposed grant will be coordi24 nated with activities provided through the one- 
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1 stop delivery system in the local area or areas; 

2 and 

3 ‘‘(G) a description of any local or private 

4 resources that will support the activities carried 

5 out under this subsection and allow the entity 

6 to carry out and expand such activities after 

7 the expiration of the grant. 

8 ‘‘(7) FACTORS FOR AWARD OF GRANT.— 

9 ‘‘(A) IN GENERAL.—In awarding grants 

10 under this subsection the Secretary shall con11 sider— 

12 ‘‘(i) the extent of public and private 

13 collaboration, including existing partner14 ships among industries, community col15 leges, and the public workforce investment 

16 system; 

17 ‘‘(ii) the extent to which the grant will 

18 provide job seekers with employment op19 portunities in high-growth, high-demand 

20 occupations; 

21 ‘‘(iii) the extent to which the grant 

22 will expand the local one-stop delivery sys23 tem’s capacity to be demand-driven and re24 sponsive to local economic needs; 
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1 ‘‘(iv) the extent to which local busi2 nesses commit to hire or retain individuals 

3 who receive training through the grant; 

4 and 

5 ‘‘(v) the extent to which the eligible 

6 entity commits to make any newly devel7 oped products, such as competencies or 

8 training curriculum, available for distribu9 tion nationally. 

10 ‘‘(B) LEVERAGING OF RESOURCES.—In 

11 awarding grants under this subsection, the Sec12 retary shall also consider— 

13 ‘‘(i) the extent to which local or pri14 vate resources, in addition to the funds 

15 provided under this subsection, will be 

16 made available to support the activities 

17 carried out under this subsection; and 

18 ‘‘(ii) the ability of an eligible entity to 

19 continue to carry out and expand such ac20 tivities after the expiration of the grant. 

21 ‘‘(C) DISTRIBUTION OF GRANTS.—In 

22 awarding grants under this subsection the Sec23 retary shall ensure an equitable distribution of 

24 such grants across geographically diverse areas. 
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1 ‘‘(8) PERFORMANCE ACCOUNTABILITY AND

2 EVALUATION.— 

3 ‘‘(A) PERFORMANCE ACCOUNTABILITY.— 

4 The Secretary shall require an eligible entity 

5 that receives a grant under this subsection to 

6 report to the Secretary on the employment out7 comes obtained by individuals receiving training 

8 under this subsection using the indicators of 

9 performance identified in the eligible entity’s 

10 grant application. 

11 ‘‘(B) EVALUATION.—The Secretary may 

12 require that an eligible entity that receives a 

13 grant under this subsection participate in an 

14 evaluation of activities carried out under this 

15 subsection, including an evaluation using the 

16 techniques described in section 172(c).’’. 

17 SEC. 123. PERSONAL REEMPLOYMENT ACCOUNTS. 

18 Section 171 of the Workforce Investment Act of 1998 

19 is further amended by adding at the end the following: 

20 ‘‘(e) PERSONAL REEMPLOYMENT ACCOUNTS.— 

21 ‘‘(1) DEFINITION.—In this subsection, the term 

22 ‘State’ means each of the several States of the 

23 United States, the District of Columbia, the Com24 monwealth of Puerto Rico, and the United States 

25 Virgin Islands. 
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1 ‘‘(2) DEMONSTRATION PROJECT.—In addition 

2 to the demonstration projects under subsection (b), 

3 the Secretary may establish and implement a na4 tional demonstration project designed to analyze and 

5 provide data on workforce training programs that 

6 accelerate the reemployment of unemployed individ7 uals, promote the retention in employment of such 

8 individuals, and provide such individuals with en9 hanced flexibility, choice, and control in obtaining 

10 intensive reemployment, training, and supportive 

11 services. 

12 ‘‘(3) GRANTS.— 

13 ‘‘(A) IN GENERAL.—In carrying out the 

14 demonstration project, the Secretary shall make 

15 grants, on a competitive basis, to eligible enti16 ties to provide personal reemployment accounts 

17 to eligible individuals. In awarding grants under 

18 this subsection the Secretary shall take into 

19 consideration awarding grants to eligible enti20 ties from diverse geographic areas, including 

21 rural areas. 

22 ‘‘(B) DURATION.—The Secretary shall 

23 make the grants for periods of not less than 2 

24 years and may renew the grant for each of the 

25 succeeding 3 years. 
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1 ‘‘(4) ELIGIBLE ENTITY.—In this subsection, the 

2 term ‘eligible entity’ means— 

3 ‘‘(A) a State; or 

4 ‘‘(B) a local board or consortium of local 

5 boards. 

6 ‘‘(5) USE OF FUNDS.— 

7 ‘‘(A) IN GENERAL.—An eligible entity that 

8 receives a grant under this subsection shall use 

9 the grant funds to provide, through a local area 

10 or areas, eligible individuals with personal re11 employment accounts. An eligible individual 

12 may receive only 1 personal reemployment ac13 count. 

14 ‘‘(B) GEOGRAPHIC AREA AND AMOUNT.— 

15 ‘‘(i) IN GENERAL.—The eligible entity 

16 shall establish the amount of a personal re17 employment account for each eligible indi18 vidual participating, which shall be uni19 form throughout the area represented by 

20 the eligible entity, and shall not exceed 

21 $3,000. 

22 ‘‘(ii) OPTION FOR STATES.—If the eli23 gible entity is a State, the eligible entity 

24 may choose to use the grant statewide, if 
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1 practicable, or only in specified local areas 

2 within a State. 

3 ‘‘(C) ELIGIBLE INDIVIDUALS.— 

4 ‘‘(i) IN GENERAL.—Each eligible enti5 ty shall establish eligibility criteria for indi6 viduals for personal reemployment ac7 counts in accordance with this subpara8 graph. 

9 ‘‘(ii) ELIGIBILITY CRITERIA REQUIRE10 MENTS.— 

11 ‘‘(I) IN GENERAL.—Subject to 

12 subclause (II), an individual shall be 

13 eligible to receive a personal reemploy14 ment account under a grant awarded 

15 under this subsection if, beginning 

16 after the date of enactment of this 

17 subsection, the individual— 

18 ‘‘(aa) is identified by the 

19 State pursuant to section 

20 303(j)(1) of the Social Security 

21 Act (42 U.S.C. 503(j)(1)) as like22 ly to exhaust regular unemploy23 ment compensation and in need 

24 of job search assistance to make 

25 a successful transition to new 
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1 employment, or the individual’s 

2 unemployment can be attributed 

3 in substantial part to unfair com4 petition from Federal Prison In5 dustries, Incorporated; 

6 ‘‘(bb) is receiving regular 

7 unemployment compensation 

8 under any Federal or State un9 employment compensation pro10 gram administered by the State; 

11 and 

12 ‘‘(cc) is eligible for not less 

13 than 20 weeks of regular unem14 ployment compensation described 

15 in item (bb). 

16 ‘‘(II) ADDITIONAL ELIGIBILITY

17 AND PRIORITY CRITERIA.—An eligible 

18 entity may establish criteria that are 

19 in addition to the criteria described in 

20 subclause (I) for the eligibility of indi21 viduals to receive a personal reemploy22 ment account under this subsection. 

23 An eligible entity may also establish 

24 criteria for priority in the provision of 

25 a personal reemployment account to 
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1 such eligible individuals under a grant 

2 awarded under this subsection. 

3 ‘‘(iii) TRANSITION RULE.— 

4 ‘‘(I) PREVIOUSLY IDENTIFIED AS

5 LIKELY TO EXHAUST UNEMPLOYMENT

6 COMPENSATION.— 

7 ‘‘(aa) IN GENERAL.—At the 

8 option of the eligible entity, and 

9 subject to item (bb), an indi10 vidual may be eligible to receive a 

11 personal reemployment account 

12 under this subsection if the indi13 vidual— 

14 ‘‘(AA) during the 13- 

15 week period ending the week 

16 prior to the date of the en17 actment of the subsection, 

18 was identified by the State 

19 pursuant to section 

20 303(j)(1) of the Social Secu21 rity Act (42 U.S.C. 

22 503(j)(1)) as likely to ex23 haust regular unemployment 

24 compensation and in need of 

25 job search assistance to 
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1 make a successful transition 

2 to new employment; and 

3 ‘‘(BB) otherwise meets 

4 the requirements of clause 

5 (ii)(I)(bb) and (cc). 

6 ‘‘(bb) ADDITIONAL ELIGI7 BILITY AND PRIORITY CRI8 TERIA.—An eligible entity may 

9 establish criteria that is in addi10 tion to the criteria described in 

11 item (aa) for the eligibility of in12 dividuals to receive a personal re13 employment account under this 

14 subsection. An eligible entity may 

15 also establish criteria for priority 

16 in the provision of such accounts 

17 to such eligible individuals under 

18 this subsection. 

19 ‘‘(II) PREVIOUSLY EXHAUSTED

20 UNEMPLOYMENT COMPENSATION.—At 

21 the option of the eligible entity, an in22 dividual may be eligible to receive a 

23 personal reemployment account under 

24 a grant awarded under this subsection 

25 if the individual— 
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1 ‘‘(aa) during the 26-week 

2 period ending the week prior to 

3 the date of the enactment of this 

4 subsection, exhausted all rights 

5 to any unemployment compensa6 tion; and 

7 ‘‘(bb)(AA) is enrolled in 

8 training and needs additional 

9 support to complete such train10 ing, with a priority of service to 

11 be provided to such individuals 

12 who are training for shortage oc13 cupations or high-growth indus14 tries; or 

15 ‘‘(BB) is separated from 

16 employment in an industry or oc17 cupation that has experienced de18 clining employment, or no longer 

19 provides any employment, in the 

20 local labor market during the 2- 

21 year period ending on the date of 

22 the determination of eligibility of 

23 the individual under this sub24 paragraph. 
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1 ‘‘(iv) NO INDIVIDUAL ENTITLE2 MENT.—Nothing in this subsection shall be 

3 construed to entitle any individual to re4 ceive a personal reemployment account. 

5 ‘‘(D) LIMITATIONS.— 

6 ‘‘(i) INFORMATION AND ATTESTA7 TION.—Prior to the establishment of a per8 sonal reemployment account for an eligible 

9 individual, the eligible entity receiving a 

10 grant, through the one-stop delivery sys11 tem in the participating local area or 

12 areas, shall ensure that the individual— 

13 ‘‘(I) is informed of the require14 ments applicable to the personal reem15 ployment account, including the allow16 able uses of funds from the account, 

17 the limitations on access to services 

18 described in paragraph (7)(A)(iii) and 

19 a description of such services, and the 

20 conditions for receiving a reemploy21 ment bonus; 

22 ‘‘(II) has the option to develop a 

23 personal reemployment plan which will 

24 identify the employment goals and ap25 propriate combination of services se-
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1 lected by the individual to achieve the 

2 employment goals; and 

3 ‘‘(III) signs an attestation that 

4 the individual has been given the op5 tion to develop a personal reemploy6 ment plan in accordance with sub7 clause (II), will comply with the re8 quirements under this subsection re9 lating to the personal reemployment 

10 accounts, and will reimburse the ac11 count or, if the account has been ter12 minated, the grant awarded under 

13 this subsection, for any amounts ex14 pended from the account that are not 

15 allowable. 

16 ‘‘(ii) PERIODIC INTERVIEWS.—If a re17 cipient exhausts his or her rights to any 

18 unemployment compensation, and the re19 cipient has a remaining balance in his or 

20 her personal reemployment account, the 

21 one-stop delivery system shall conduct peri22 odic interviews with the recipient to assist 

23 the recipient in meeting his or her indi24 vidual employment goals. 
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1 ‘‘(iii) USE OF PERSONAL REEMPLOY2 MENT ACCOUNTS.—The eligible entity re3 ceiving a grant shall ensure that eligible 

4 individuals receiving a personal reemploy5 ment account use the account in accord6 ance with paragraph (7). 

7 ‘‘(6) APPLICATION FOR GRANTS.—To be eligible 

8 to receive a grant under this subsection, an eligible 

9 entity shall submit an application to the Secretary at 

10 such time, in such manner, and containing such in11 formation as the Secretary may require, including— 

12 ‘‘(A) if the eligible entity is a State— 

13 ‘‘(i) assurance that the application 

14 was developed in conjunction with the local 

15 board or boards and chief elected officials 

16 where the personal reemployment accounts 

17 shall be made available; and 

18 ‘‘(ii) a description of the methods and 

19 procedures for providing funds to local 

20 areas where the personal reemployment ac21 counts shall be made available; 

22 ‘‘(B) a description of the criteria and 

23 methods to be used for determining eligibility 

24 for the personal reemployment account, includ25 ing whether the eligible entity intends to include 
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1 the optional categories described in paragraph 

2 (5)(C)(iii), and the additional criteria and pri3 ority for service that the eligible entity intends 

4 to apply, if any, pursuant to paragraph 

5 (5)(C)(ii)(II); 

6 ‘‘(C) a description of the methods or proce7 dures to be used to provide eligible individuals 

8 information relating to services and providers; 

9 ‘‘(D) a description of safeguards to ensure 

10 that funds from the personal reemployment ac11 counts are used for purposes authorized under 

12 this subsection and to ensure the quality and 

13 integrity of services and providers, consistent 

14 with the purpose of providing eligible individ15 uals with enhanced flexibility, choice, and con16 trol in obtaining intensive reemployment, train17 ing, and supportive services; 

18 ‘‘(E) a description of how the eligible enti19 ty will coordinate the activities carried out 

20 under this subsection with the employment and 

21 training activities carried out under section 134 

22 and other activities carried out by local boards 

23 through the one-stop delivery system in the 

24 State or local area; and 
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1 ‘‘(F) an assurance that the eligible entity 

2 will comply with any evaluation and reporting 

3 requirements the Secretary may require. 

4 ‘‘(7) USE OF PERSONAL REEMPLOYMENT AC5 COUNTS.— 

6 ‘‘(A) ALLOWABLE ACTIVITIES.— 

7 ‘‘(i) IN GENERAL.—Subject to the re8 quirements contained in clauses (ii) and 

9 (iii), a recipient of a personal reemploy10 ment account may use amounts in a per11 sonal reemployment account to purchase 1 

12 or more of the following: 

13 ‘‘(I) Intensive services, including 

14 those type of services specified in sec15 tion 134(d)(3)(C). 

16 ‘‘(II) Training services, including 

17 those types of services specified in sec18 tion 134(d)(4)(D). 

19 ‘‘(III) Supportive services, except 

20 for needs related payments. 

21 ‘‘(ii) DELIVERY OF SERVICES.—The 

22 following requirements relating to delivery 

23 of services shall apply to the grants under 

24 this subsection: 
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1 ‘‘(I) Recipients may use funds 

2 from the personal reemployment ac3 count to purchase the services de4 scribed in clause (i) through the one5 stop delivery system on a fee-for-serv6 ice basis, or through other providers, 

7 consistent with the safeguards de8 scribed in paragraph (6)(D). 

9 ‘‘(II) The eligible entity, through 

10 the one-stop delivery system in the 

11 participating local area, may pay costs 

12 for such services directly on behalf of 

13 the recipient, through a voucher sys14 tem, or by reimbursement to the re15 cipient upon receipt of appropriate 

16 cost documentation. 

17 ‘‘(III) Each eligible entity, 

18 through the one-stop delivery system 

19 in the participating local area, shall 

20 make available to recipients informa21 tion on training providers specified in 

22 section 134(d)(4)(F)(ii), information 

23 available to the one-stop delivery sys24 tem on providers of the intensive and 

25 supportive services described in clause 
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1 (i), and information relating to occu2 pations in demand in the local area. 

3 ‘‘(iii) LIMITATIONS.—The following 

4 limitations shall apply with respect to per5 sonal reemployment accounts under this 

6 subsection: 

7 ‘‘(I) Amounts in a personal reem8 ployment account may be used for up 

9 to 1 year from the date of the estab10 lishment of the account. 

11 ‘‘(II) Each recipient shall submit 

12 cost documentation as required by the 

13 one-stop delivery system. 

14 ‘‘(III) For the 1-year period fol15 lowing the establishment of the ac16 count, recipients may not receive in17 tensive, supportive, or training serv18 ices funded under this title except on 

19 a fee-for-services basis as specified in 

20 clause (ii)(I). 

21 ‘‘(IV) Amounts in a personal re22 employment account shall be non23 transferable. 

24 ‘‘(B) REEMPLOYMENT BONUS.— 
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1 ‘‘(i) IN GENERAL.—Subject to clause 

2 (ii)— 

3 ‘‘(I) if a recipient determined eli4 gible under paragraph (5)(C)(ii) ob5 tains full-time employment before the 

6 13th week of unemployment for which 

7 unemployment compensation is paid, 

8 the balance of his or her personal re9 employment account shall be provided 

10 directly to the recipient in cash; and 

11 ‘‘(II) if a recipient determined el12 igible under paragraph (5)(C)(iii) ob13 tains full-time employment before the 

14 end of the 13th week after the date 

15 on which the account is established, 

16 the balance of his or her personal re17 employment account shall be provided 

18 directly to the recipient in cash. 

19 ‘‘(ii) LIMITATIONS.—The following 

20 limitations shall apply with respect to a re21 cipient described in clause (i): 

22 ‘‘(I) 60 percent of the remaining 

23 personal reemployment account bal24 ance shall be paid to the recipient at 

25 the time of employment. 
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1 ‘‘(II) 40 percent of the remaining 

2 personal reemployment account shall 

3 be paid to the recipient after 26 weeks 

4 of employment retention. 

5 ‘‘(iii) EXCEPTION REGARDING SUBSE6 QUENT EMPLOYMENT.—If a recipient de7 scribed in clause (i) subsequently becomes 

8 unemployed due to a lack of work after re9 ceiving the portion of the reemployment 

10 bonus specified under clause (ii)(I), the in11 dividual may use the amount remaining in 

12 the personal reemployment account for the 

13 purposes described in subparagraph (A) 

14 but may not be eligible for additional cash 

15 payments under this subparagraph. 

16 ‘‘(8) PROGRAM INFORMATION AND EVALUA17 TION.— 

18 ‘‘(A) INFORMATION.—The Secretary may 

19 require from eligible entities the collection and 

20 reporting on such financial, performance, and 

21 other program-related information as the Sec22 retary determines is appropriate to carry out 

23 this subsection, including the evaluation de24 scribed in subparagraph (B). 

25 ‘‘(B) EVALUATION.— 
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1 ‘‘(i) IN GENERAL.—The Secretary, 

2 pursuant to the authority provided under 

3 section 172, shall, directly or through 

4 grants, contracts, or cooperative agreement 

5 with appropriate entities, conduct an eval6 uation of the activities carried out under 

7 any grants awarded under this subsection. 

8 ‘‘(ii) REPORT.—The report to Con9 gress under section 172(e) relating to the 

10 results of the evaluations required under 

11 section 172 shall include the recommenda12 tion of the Secretary with respect to the 

13 use of personal reemployment account as a 

14 mechanism to assist individuals in obtain15 ing and retaining employment.’’. 

16 SEC. 124. TRAINING FOR REALTIME WRITERS. 

17 Section 171 of the Workforce Investment Act of 1998 

18 is further amended by adding at the end the following: 

19 ‘‘(f) TRAINING FOR REALTIME WRITERS.— 

20 ‘‘(1) IN GENERAL.—The Secretary may make 

21 competitive grants to eligible entities under para22 graph (2)(A) to promote training and placement of 

23 individuals as realtime writers in order to meet the 

24 requirements for closed captioning of video program25 ming set forth in section 723 of the Communications 
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1 Act of 1934 (47 U.S.C. 613) and the rules pre2 scribed thereunder. 

3 ‘‘(2) LIMITATIONS.— 

4 ‘‘(A) ELIGIBLE ENTITIES.—For purposes 

5 of this subsection, an eligible entity is a court 

6 reporting or realtime writing training program 

7 that— 

8 ‘‘(i) can document and demonstrate to 

9 the Secretary that it meets appropriate 

10 standards of educational and financial ac11 countability, with a curriculum capable of 

12 training realtime writers, qualified to pro13 vide captioning services and includes ar14 rangements to assist in the placement of 

15 such individuals in employment as realtime 

16 writers; and 

17 ‘‘(ii) is and entity that— 

18 ‘‘(I) is an eligible provider of 

19 training services under section 122; or 

20 ‘‘(II) is accredited by an accred21 iting agency recognized by the De22 partment of Education; and partici23 pates in student aid programs under 

24 title IV of the Higher Education Act 

25 of 1965 (20 U.S.C. 1070 et seq.). 
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1 ‘‘(B) PRIORITY IN GRANTS.—In deter2 mining whether to award grants under this sec3 tion, the Secretary shall give priority to eligible 

4 entities that— 

5 ‘‘(i) demonstrate the greatest ability 

6 to increase their capacity to train realtime 

7 writers; 

8 ‘‘(ii) demonstrate the most promising 

9 collaboration with local workforce invest10 ment boards, local educational institutions, 

11 businesses, labor organizations, or other 

12 community-based organization having the 

13 potential to train or provide job placement 

14 assistance to realtime writers; and 

15 ‘‘(iii) propose the most promising and 

16 innovative approaches for initiating or ex17 panding training or job placement assist18 ance efforts for realtime writers. 

19 ‘‘(C) DURATION OF GRANT.—A grant 

20 under this subsection shall be for a period of 2 

21 years. 

22 ‘‘(D) MAXIMUM AMOUNT OF GRANT.—The 

23 amount of a grant provided under paragraph 

24 (1) to an entity eligible may not exceed 

25 $1,500,000. 
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1 ‘‘(3) APPLICATION.—To receive a grant under 

2 paragraph (1), an eligible entity shall submit an ap3 plication to the Secretary at such time and in such 

4 manner as the Secretary may require. The applica5 tion shall include— 

6 ‘‘(A) a description of the training and as7 sistance to be funded using the grant amount, 

8 including how such training and assistance will 

9 increase the number of realtime writers; 

10 ‘‘(B) a description of performance meas11 ures to be utilized to evaluate the progress of 

12 individuals receiving such training and assist13 ance in matters relating to enrollment, comple14 tion of training, and job placement and reten15 tion; 

16 ‘‘(C) a description of the manner in which 

17 the eligible entity intends to continue providing 

18 the training and assistance to be funded by the 

19 grant after the end of the grant period, includ20 ing any partnerships or arrangements estab21 lished for that purpose; 

22 ‘‘(D) a description of how the eligible enti23 ty will work with local workforce investment 

24 boards to ensure that training and assistance to 

25 be funded with the grant will further local 
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1 workforce goals, including the creation of edu2 cational opportunities for individuals who are 

3 from economically disadvantaged backgrounds 

4 or are dislocated workers; and 

5 ‘‘(E) such other information as the Sec6 retary may require. 

7 ‘‘(4) USE OF FUNDS.— 

8 ‘‘(A) IN GENERAL.—An eligible entity re9 ceiving a grant under paragraph (1) shall use 

10 the grant amount for purposes relating to the 

11 recruitment, training, assistance, and job place12 ment of individuals (including individuals who 

13 have completed a court reporting training pro14 gram) as realtime writers, including— 

15 ‘‘(i) recruitment activities; 

16 ‘‘(ii) the provision of training grants 

17 to individuals for training in realtime writ18 ing; 

19 ‘‘(iii) distance learning; 

20 ‘‘(iv) design and development of cur21 riculum to more effectively train realtime 

22 writing skills and education in the knowl23 edge bases necessary for the delivery of 

24 high quality closed captioning services; 
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1 ‘‘(v) assistance in job placement for 

2 upcoming and recent graduates with all 

3 types of captioning employers; and 

4 ‘‘(vi) encouragement of individuals 

5 with disabilities to pursue a career in 

6 realtime writing. 

7 ‘‘(B) ADMINISTRATIVE COSTS.—The recipi8 ent of a grant under paragraph (1) may not use 

9 more than 5 percent of the grant amount to 

10 pay administrative costs associated with activi11 ties funded by the grant. 

12 ‘‘(5) REPORTS.—Each eligible entity receiving a 

13 grant under paragraph (1) shall submit to the Sec14 retary, at the end of each year of the grant period, 

15 a report which shall include— 

16 ‘‘(A) a description of the use of grant 

17 amounts by the entity during such year; 

18 ‘‘(B) an assessment, utilizing the perform19 ance measures submitted by the entity in the 

20 application for the grant under paragraph 

21 (2)(D), of the effectiveness of activities carried 

22 out using such funds in increasing the number 

23 of realtime writers; and 

24 ‘‘(C) a description of the best practices 

25 identified by the entity as a result of the grant 
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1 for increasing the number of individuals who 

2 are trained, employed, and retained in employ3 ment as realtime writers.’’. 

4 SEC. 125. BUSINESS PARTNERSHIP GRANTS. 

5 Section 171 (29 U.S.C. 2916) is further amended by 

6 adding at the end the following: 

7 ‘‘(g) BUSINESS PARTNERSHIP GRANTS.— 

8 ‘‘(1) DEMONSTRATION PROJECT.—In addition 

9 to the demonstration projects under subsection (b), 

10 (d), and (e), the Secretary may make up to 10 com11 petitive grants per year to eligible entities to expand 

12 local sector-focused training and workforce develop13 ment in high growth, high wage industry sectors in 

14 one or more regions of particular States. 

15 ‘‘(2) ELIGIBLE ENTITIES.—For purposes of this 

16 subsection an eligible entity is a business or business 

17 partnership, including associations of single or re18 lated industry employers and employee representa19 tives, consortia of such employers, employee rep20 resentatives, and workforce development community21 based organizations, and higher education institu22 tions. 

23 ‘‘(3) USE OF FUNDS.—Grants awarded under 

24 this subsection may be used to— 
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1 ‘‘(A) provide workforce-directed business 

2 services to help employers in targeted industries 

3 better retain, support and advance their skilled 

4 workers; 

5 ‘‘(B) provide capacity building through re6 gional skill alliances, workforce intermediaries, 

7 and other collaborative entities to link busi8 nesses to public workforce systems and service 

9 providers targeted for their industry; 

10 ‘‘(C) conduct analyses of skills that are 

11 needed in the workforce in such industries cur12 rently and in the future to project new market 

13 opportunities in particular industries; 

14 ‘‘(D) develop rigorous training and edu15 cation programs related to employment in high16 growth, high-wage industries; 

17 ‘‘(E) develop skill standards and industry18 certified curricula used in preparing workers for 

19 employment in such industries; 

20 ‘‘(F) train adults and dislocated workers in 

21 the skills and competencies needed to obtain or 

22 upgrade employment; 

23 ‘‘(G) disseminate information on high24 growth, high-wage occupations; 
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1 ‘‘(H) place trained individuals into employ2 ment in high-growth, high-wage industries; 

3 ‘‘(I) increase integration between training 

4 providers, businesses, and the one-stop delivery 

5 system to meet the training needs of particular 

6 industries. 

7 ‘‘(4) REPORTS.—The Secretary shall track and 

8 annually report to the chairmen and ranking minor9 ity members of the Committee on Education and the 

10 Workforce of the House of Representatives and the 

11 Committee on Health, Education, Labor and Pen12 sions of the Senate, on the industries receiving 

13 grants under this subsection, the performance re14 sults of each such grant, and the percentage and 

15 amount of grants awarded to eligible entities for 

16 programs serving each of the following populations: 

17 incumbent workers, dislocated workers, adults, and 

18 youth.’’. 

19 SEC. 126. NATIONAL DISLOCATED WORKER GRANTS. 

20 (a) IN GENERAL.—Section 173 (29 U.S.C. 2916) is 

21 amended— 

22 (1) by amending the designation and heading to 

23 read as follows: 

24 ‘‘SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.’’; and 

25 (2) in subsection (a)— 
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1 (A) by striking ‘‘national emergency 

2 grants’’ in the matter preceding paragraph (1) 

3 and inserting ‘‘national dislocated worker 

4 grants’’; and 

5 (B) in paragraph (1), by striking ‘‘sub6 section (c)’’ and inserting ‘‘subsection (b)’’. 

7 (b) ADMINISTRATION.—Section 173 (29 U.S.C. 

8 2918) is further amended— 

9 (1) by striking subsection (b) and redesignating 

10 subsections (c) and (d) as subsections (b) and (c), 

11 respectively; and 

12 (2) by striking subsection (e) and redesignating 

13 subsections (f) and (g) as subsection (d) and (e), re14 spectively. 

15 (c) ELIGIBLE ENTITIES.—Section 173(b)(1)(B) (29 

16 U.S.C. 2918(b)(1)(B)) (as redesignated by subsection 

17 (b)(1) of this section) is amended by striking ‘‘, and other 

18 entities’’ and all that follows and inserting a period. 

19 (d) PARTICIPANT ELIGIBILITY FOR MILITARY

20 SPOUSES.—Section 173(b)(2)(A) (29 U.S.C. 

21 2918(b)(2)(A)) (as redesignated by subsection (b)(1) of 

22 this section) is amended— 

23 (1) in clause (iii), by striking ‘‘; or’’ and insert24 ing a semicolon; 
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1 (2) in clause (iv)(IV) by striking the period and 

2 inserting ‘‘; or’’; and 

3 (3) by inserting at the end the following: 

4 ‘‘(v) is the spouse of a member of the 

5 Armed Forces who is on active duty or 

6 full-time National Guard duty, or who was 

7 recently separated from such duties, and 

8 such spouse is in need of employment and 

9 training assistance to obtain or retain em10 ployment.’’. 

11 (e) CONFORMING AMENDMENT.—The table of con12 tents in section 1(b) is amended by amending the item 

13 related to section 173 to read as follows: 

‘‘Sec. 173. National dislocated worker grants.’’. 

14 SEC. 127. AUTHORIZATION OF APPROPRIATIONS FOR NA15 TIONAL ACTIVITIES. 

16 (a) IN GENERAL.—Section 174(a)(1) (29 U.S.C. 

17 2919(a)(1)) is amended by striking ‘‘1999 through 2003’’ 

18 and inserting ‘‘2006 through 2011’’. 

19 (b) RESERVATIONS.—Section 174(b) is amended to 

20 read as follows: 

21 ‘‘(b) TECHNICAL ASSISTANCE; DEMONSTRATION AND

22 PILOT PROJECTS; EVALUATIONS; INCENTIVE GRANTS.— 

23 ‘‘(1) DEMONSTRATION AND PILOT PROJECTS.— 

24 ‘‘(A) IN GENERAL.—There are authorized 

25 to be appropriated to carry out section 171, 
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1 $211,000,000 for fiscal year 2006 and such 

2 sums as may be necessary for fiscal years 2007 

3 through 2011. 

4 ‘‘(B) RESERVATION FOR COMMUNITY5 BASED JOB TRAINING.—Of the amount appro6 priated pursuant to subparagraph (A), the Sec7 retary shall reserve up to $125,000,000 for car8 rying out section 171(d). 

9 ‘‘(2) TECHNICAL ASSISTANCE, EVALUATIONS.— 

10 There are authorized to be appropriated to carry out 

11 section 170, section 172, and section 136 such sums 

12 as may be necessary for each of fiscal years 2006 

13 through 2011.’’. 

14 SEC. 128. REQUIREMENTS AND RESTRICTIONS. 

15 (a) IN GENERAL.—Section 181(c)(2)(A) (29 U.S.C. 

16 2931(c)(2)(A)) is amended in the matter preceding clause 

17 (i) by striking ‘‘shall’’ and inserting ‘‘may’’. 

18 (b) LIMITATIONS.—Section 181(e) (29 U.S.C. 

19 2931(e)) is amended by striking ‘‘training for’’ and insert20 ing ‘‘the entry into employment, retention in employment, 

21 or increases in earnings of’’. 

22 (c) REPORTS TO CONGRESS.—Section 185(e)(2) (29 

23 U.S.C. 2935(e)(2)) is amended by inserting ‘‘and the Sec24 retary shall submit to the Committee on Education and 

25 the Workforce of the House of Representatives and the 
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1 Committee on Health, Education, Labor, and Pensions of 

2 the Senate,’’ after ‘‘Secretary,’’. 

3 SEC. 129. 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 oth16 erwise permitted under title IX of the Edu17 cation Amendments of 1972), national origin, 

18 age, disability, or political affiliation or belief. 

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. 130. 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. 131. GENERAL PROGRAM REQUIREMENTS. 

13 Section 195 (29 U.S.C. 2945) is amended by adding 

14 at the end the following new paragraphs: 

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. 

22 ‘‘(15) Any report required to be submitted to 

23 Congress, or to a Committee of Congress, under this 

24 title shall be submitted to both the chairmen and 

25 ranking minority members of the Committee on 
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1 Education and the Workforce of the House of Rep2 resentatives and the Committee on Health, Edu3 cation, Labor, and Pensions of the Senate.’’. 

4 TITLE II—ADULT EDUCATION, 

5 BASIC SKILLS, AND FAMILY 

6 LITERACY EDUCATION 

7 SEC. 201. TABLE OF CONTENTS. 

8 The table of contents in section 1(b) is amended by 

9 amending the items relating to title II to read as follows: 

‘‘TITLE II—ADULT EDUCATION, 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.’’. 
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1 SEC. 202. AMENDMENT. 

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

3 as follows: 

4 ‘‘TITLE II—ADULT EDUCATION, 

5 BASIC SKILLS, AND FAMILY 

6 LITERACY EDUCATION 

7 ‘‘SEC. 201. SHORT TITLE. 

8 ‘‘This title may be cited as the ‘Adult Education, 

9 Basic Skills, and Family Literacy Education Act’. 

10 ‘‘SEC. 202. PURPOSE. 

11 ‘‘It is the purpose of this title to provide instructional 

12 opportunities for adults seeking to improve their literacy 

13 skills, including their basic reading, writing, speaking, and 

14 math skills, and support States and local communities in 

15 providing, on a voluntary basis, adult education, basic 

16 skills, and family literacy education programs, in order 

17 to— 

18 ‘‘(1) increase the literacy of adults, including 

19 the basic reading, writing, speaking, and math skills, 

20 to a level of proficiency necessary for adults to ob21 tain employment and self-sufficiency and to success22 fully advance in the workforce; 

23 ‘‘(2) assist adults in the completion of a sec24 ondary school education (or its equivalent) and the 

25 transition to a postsecondary educational institution; 
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1 ‘‘(3) assist adults who are parents to enable 

2 them to support the educational development of their 

3 children and make informed choices regarding their 

4 children’s education including, through instruction in 

5 basic reading, writing, speaking, and math skills; 

6 and 

7 ‘‘(4) assist immigrants who are not proficient in 

8 English in improving their reading, writing, speak9 ing, and math skills and acquiring an understanding 

10 of the American free enterprise system, individual 

11 freedom, and the responsibilities of citizenship. 

12 ‘‘SEC. 203. DEFINITIONS. 

13 ‘‘In this title: 

14 ‘‘(1) ADULT EDUCATION, BASIC SKILLS, AND

15 FAMILY LITERACY EDUCATION PROGRAMS.—The 

16 term ‘adult education, basic skills, and family lit17 eracy education programs’ means a sequence of aca18 demic instruction and educational services below the 

19 postsecondary level that increase an individual’s abil20 ity to read, write, and speak in English and perform 

21 mathematical computations leading to a level of pro22 ficiency equivalent to at least a secondary school 

23 completion that is provided for individuals— 

24 ‘‘(A) who are at least 16 years of age; 
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1 ‘‘(B) who are not enrolled or required to be 

2 enrolled in secondary school under State law; 

3 and 

4 ‘‘(C) who— 

5 ‘‘(i) lack sufficient mastery of basic 

6 reading, writing, speaking, and math skills 

7 to enable the individuals to function effec8 tively in society; 

9 ‘‘(ii) do not have a secondary school 

10 diploma, General Educational Development 

11 credential (GED), or other State-recog12 nized equivalent and have not achieved an 

13 equivalent level of education; or 

14 ‘‘(iii) are unable to read, write, or 

15 speak the English language. 

16 ‘‘(2) ELIGIBLE AGENCY.—The term ‘eligible 

17 agency’— 

18 ‘‘(A) means the primary entity or agency 

19 in a State or an outlying area responsible for 

20 administering or supervising policy for adult 

21 education, basic skills, and family literacy edu22 cation programs in the State or outlying area, 

23 respectively, consistent with the law of the 

24 State or outlying area, respectively; and 
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1 ‘‘(B) may be the State educational agency, 

2 the State agency responsible for administering 

3 workforce investment activities, or the State 

4 agency responsible for administering community 

5 or technical colleges. 

6 ‘‘(3) ELIGIBLE PROVIDER.—The term ‘eligible 

7 provider’ means— 

8 ‘‘(A) a local educational agency; 

9 ‘‘(B) a community-based or faith-based or10 ganization of demonstrated effectiveness; 

11 ‘‘(C) a volunteer literacy organization of 

12 demonstrated effectiveness; 

13 ‘‘(D) an institution of higher education; 

14 ‘‘(E) a public or private educational agen15 cy; 

16 ‘‘(F) a library; 

17 ‘‘(G) a public housing authority; 

18 ‘‘(H) an institution that is not described in 

19 any of subparagraphs (A) through (G) and has 

20 the ability to provide adult education, basic 

21 skills, and family literacy education programs to 

22 adults and families; or 

23 ‘‘(I) a consortium of the agencies, organi24 zations, institutions, libraries, or authorities de-
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1 scribed in any of subparagraphs (A) through 

2 (H). 

3 ‘‘(4) ENGLISH LANGUAGE ACQUISITION PRO4 GRAM.—The term ‘English language acquisition pro5 gram’ means a program of instruction designed to 

6 help individuals with limited English proficiency 

7 achieve competence in reading, writing, and speaking 

8 the English language. 

9 ‘‘(5) ESSENTIAL COMPONENTS OF READING IN10 STRUCTION.—The term ‘essential components of 

11 reading instruction’ has the meaning given to that 

12 term in section 1208 of the Elementary and Sec13 ondary Education Act of 1965. 

14 ‘‘(6) FAMILY LITERACY EDUCATION PRO15 GRAM.—The term ‘family literacy education pro16 gram’ means an educational program that— 

17 ‘‘(A) assists parents and students, on a 

18 voluntary basis, in achieving the purposes of 

19 this title as described in section 202; and 

20 ‘‘(B) is of sufficient intensity in terms of 

21 hours and of sufficient duration to make sus22 tainable changes in a family, is based upon sci23 entific research-based principles, and, for the 

24 purpose of substantially increasing the ability of 
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1 parents and children to read, write, and speak 

2 English, integrates— 

3 ‘‘(i) interactive literacy activities be4 tween parents and their children; 

5 ‘‘(ii) training for parents regarding 

6 how to be the primary teacher for their 

7 children and full partners in the education 

8 of their children; 

9 ‘‘(iii) parent literacy training that 

10 leads to economic self-sufficiency; and 

11 ‘‘(iv) an age-appropriate education to 

12 prepare children for success in school and 

13 life experiences. 

14 ‘‘(7) GOVERNOR.—The term ‘Governor’ means 

15 the chief executive officer of a State or outlying 

16 area. 

17 ‘‘(8) INDIVIDUAL WITH A DISABILITY.— 

18 ‘‘(A) IN GENERAL.—The term ‘individual 

19 with a disability’ means an individual with any 

20 disability (as defined in section 3 of the Ameri21 cans with Disabilities Act of 1990). 

22 ‘‘(B) INDIVIDUALS WITH DISABILITIES.— 

23 The term ‘individuals with disabilities’ means 

24 more than one individual with a disability. 
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1 ‘‘(9) INDIVIDUAL WITH LIMITED ENGLISH PRO2 FICIENCY.—The term ‘individual with limited 

3 English proficiency’ means an adult or out-of-school 

4 youth who has limited ability in reading, writing, 

5 speaking, or understanding the English language, 

6 and— 

7 ‘‘(A) whose native language is a language 

8 other than English; or 

9 ‘‘(B) who lives in a family or community 

10 environment where a language other than 

11 English is the dominant language. 

12 ‘‘(10) INSTITUTION OF HIGHER EDUCATION.— 

13 The term ‘institution of higher education’ has the 

14 meaning given to that term in section 101 of the 

15 Higher Education Act of 1965. 

16 ‘‘(11) LITERACY.—The term ‘literacy’ means an 

17 individual’s ability to read, write, and speak in 

18 English, compute, and solve problems at a level of 

19 proficiency necessary to obtain employment and to 

20 successfully make the transition to postsecondary 

21 education. 

22 ‘‘(12) LOCAL EDUCATIONAL AGENCY.—The 

23 term ‘local educational agency’ has the meaning 

24 given to that term in section 9101 of the Elemen25 tary and Secondary Education Act of 1965. 
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1 ‘‘(13) OUTLYING AREA.—The term ‘outlying 

2 area’ has the meaning given to that term in section 

3 101 of this Act. 

4 ‘‘(14) POSTSECONDARY EDUCATIONAL INSTITU5 TION.—The term ‘postsecondary educational institu6 tion’ means— 

7 ‘‘(A) an institution of higher education 

8 that provides not less than a 2-year program of 

9 instruction that is acceptable for credit toward 

10 a bachelor’s degree; 

11 ‘‘(B) a tribally controlled community col12 lege; or 

13 ‘‘(C) a nonprofit educational institution of14 fering certificate or apprenticeship programs at 

15 the postsecondary level. 

16 ‘‘(15) READING.—The term ‘reading’ has the 

17 meaning given to that term in section 1208 of the 

18 Elementary and Secondary Education Act of 1965. 

19 ‘‘(16) SCIENTIFICALLY BASED RESEARCH.— 

20 The term ‘scientifically based research’ has the 

21 meaning given to that term in section 9101 of the 

22 Elementary and Secondary Education Act of 1965. 

23 ‘‘(17) SECRETARY.—The term ‘Secretary’ 

24 means the Secretary of Education. 
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1 ‘‘(18) STATE.—The term ‘State’ means each of 

2 the several States of the United States, the District 

3 of Columbia, and the Commonwealth of Puerto Rico. 

4 ‘‘(19) STATE EDUCATIONAL AGENCY.—The 

5 term ‘State educational agency’ has the meaning 

6 given to that term in section 9101 of the Elemen7 tary and Secondary Education Act of 1965. 

8 ‘‘(20) WORKPLACE LITERACY PROGRAM.—The 

9 term ‘workplace literacy program’ means an edu10 cational program that is offered in collaboration be11 tween eligible providers and employers or employee 

12 organizations for the purpose of improving the pro13 ductivity of the workforce through the improvement 

14 of reading, writing, speaking, and math skills. 

15 ‘‘SEC. 204. HOME SCHOOLS. 

16 ‘‘Nothing in this title shall be construed to affect 

17 home schools, whether or not a home school is treated as 

18 a home school or a private school under State law, or to 

19 compel a parent engaged in home schooling to participate 

20 in an English language acquisition program, a family lit21 eracy education program, or an adult education, basic 

22 skills, and family literacy education program. 
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1 ‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS. 

2 ‘‘There are authorized to be appropriated to carry out 

3 this title $590,127,000 for fiscal year 2006 and such sums 

4 as may be necessary for fiscal years 2007 through 2011. 

5 ‘‘CHAPTER 1—FEDERAL PROVISIONS 

6 ‘‘SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE 

7 AGENCIES; ALLOTMENTS. 

8 ‘‘(a) RESERVATION OF FUNDS.—From the sums ap9 propriated under section 205 for a fiscal year, the Sec10 retary— 

11 ‘‘(1) shall reserve up to 1.72 percent for incen12 tive grants under section 213; 

13 ‘‘(2) shall reserve 1.75 percent to carry out sec14 tion 242; and 

15 ‘‘(3) shall reserve up to 1.55 percent to carry 

16 out section 243. 

17 ‘‘(b) GRANTS TO ELIGIBLE AGENCIES.— 

18 ‘‘(1) IN GENERAL.—From the sums appro19 priated under section 205 and not reserved under 

20 subsection (a) for a fiscal year, the Secretary shall 

21 award a grant to each eligible agency having a State 

22 plan approved under section 224 in an amount equal 

23 to the sum of the initial allotment under subsection 

24 (c)(1) and the additional allotment under subsection 

25 (c)(2) for the eligible agency for the fiscal year, sub26 ject to subsections (f) and (g). 
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1 ‘‘(2) PURPOSE OF GRANTS.—The Secretary 

2 may award a grant under paragraph (1) only if the 

3 eligible agency involved agrees to expend the grant 

4 in accordance with the provisions of this title. 

5 ‘‘(c) ALLOTMENTS.— 

6 ‘‘(1) INITIAL ALLOTMENTS.—From the sums 

7 appropriated under section 205 and not reserved 

8 under subsection (a) for a fiscal year, the Secretary 

9 shall allot to each eligible agency having a State 

10 plan approved under section 224— 

11 ‘‘(A) $100,000, in the case of an eligible 

12 agency serving an outlying area; and 

13 ‘‘(B) $250,000, in the case of any other el14 igible agency. 

15 ‘‘(2) ADDITIONAL ALLOTMENTS.—From the 

16 sums appropriated under section 205, not reserved 

17 under subsection (a), and not allotted under para18 graph (1), for a fiscal year, the Secretary shall allot 

19 to each eligible agency that receives an initial allot20 ment under paragraph (1) an additional amount 

21 that bears the same relationship to such sums as the 

22 number of qualifying adults in the State or outlying 

23 area served by the eligible agency bears to the num24 ber of such adults in all States and outlying areas. 
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1 ‘‘(d) QUALIFYING ADULT.—For the purpose of sub2 section (c)(2), the term ‘qualifying adult’ means an adult 

3 who— 

4 ‘‘(1) is at least 16 years of age; 

5 ‘‘(2) is beyond the age of compulsory school at6 tendance under the law of the State or outlying 

7 area; 

8 ‘‘(3) does not have a secondary school diploma, 

9 General Educational Development credential (GED), 

10 or other State-recognized equivalent; and 

11 ‘‘(4) is not enrolled in secondary school. 

12 ‘‘(e) SPECIAL RULE.— 

13 ‘‘(1) IN GENERAL.—From amounts made avail14 able under subsection (c) for the Republic of Palau, 

15 the Secretary shall award grants to Guam, American 

16 Samoa, the Commonwealth of the Northern Mariana 

17 Islands, or the Republic of Palau to carry out activi18 ties described in this title in accordance with the 

19 provisions of this title as determined by the Sec20 retary. 

21 ‘‘(2) TERMINATION OF ELIGIBILITY.—Notwith22 standing any other provision of law, the Republic of 

23 Palau shall be eligible to receive a grant under this 

24 title until an agreement for the extension of United 

25 States education assistance under the Compact of 
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1 Free Association for the Republic of Palau becomes 

2 effective. 

3 ‘‘(3) ADMINISTRATIVE COSTS.—The Secretary 

4 may provide not more than 5 percent of the funds 

5 made available for grants under this subsection to 

6 pay the administrative costs of the Pacific Region 

7 Educational Laboratory regarding activities assisted 

8 under this subsection. 

9 ‘‘(f) HOLD-HARMLESS PROVISIONS.— 

10 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

11 (c), and subject to paragraphs (2) and (3), for fiscal 

12 year 2006 and each succeeding fiscal year, no eligi13 ble agency shall receive an allotment under this title 

14 that is less than 90 percent of the allotment the eli15 gible agency received for the preceding fiscal year 

16 under this title. 

17 ‘‘(2) EXCEPTION.—An eligible agency that re18 ceives for the preceding fiscal year only an initial al19 lotment under subsection (c)(1) (and no additional 

20 allotment under subsection (c)(2)) shall receive an 

21 allotment equal to 100 percent of the initial allot22 ment. 

23 ‘‘(3) RATABLE REDUCTION.—If for any fiscal 

24 year the amount available for allotment under this 

25 title is insufficient to satisfy the provisions of para-
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1 graph (1), the Secretary shall ratably reduce the 

2 payments to all eligible agencies, as necessary. 

3 ‘‘(g) REALLOTMENT.—The portion of any eligible 

4 agency’s allotment under this title for a fiscal year that 

5 the Secretary determines will not be required for the pe6 riod such allotment is available for carrying out activities 

7 under this title, shall be available for reallotment from 

8 time to time, on such dates during such period as the Sec9 retary shall fix, to other eligible agencies in proportion to 

10 the original allotments to such agencies under this title 

11 for such year. 

12 ‘‘SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM. 

13 ‘‘(a) PURPOSE.—The purpose of this section is to es14 tablish a comprehensive performance accountability sys15 tem, composed of the activities described in this section, 

16 to assess the effectiveness of eligible agencies in achieving 

17 continuous improvement of adult education, basic skills, 

18 and family literacy education programs funded under this 

19 title, in order to optimize the return on investment of Fed20 eral funds in adult education, basic skills, and family lit21 eracy education programs. 

22 ‘‘(b) ELIGIBLE AGENCY PERFORMANCE MEAS23 URES.— 
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1 ‘‘(1) IN GENERAL.—For each eligible agency, 

2 the eligible agency performance measures shall con3 sist of— 

4 ‘‘(A)(i) the core indicators of performance 

5 described in paragraph (2)(A); and 

6 ‘‘(ii) employment performance indicators 

7 identified by the eligible agency under para8 graph (2)(B); and 

9 ‘‘(B) an eligible agency adjusted level of 

10 performance for each indicator described in 

11 subparagraph (A). 

12 ‘‘(2) INDICATORS OF PERFORMANCE.— 

13 ‘‘(A) CORE INDICATORS OF PERFORM14 ANCE.—The core indicators of performance 

15 shall include the following: 

16 ‘‘(i) Measurable improvements in lit17 eracy, including basic skill levels in read18 ing, writing, and speaking the English lan19 guage and basic math, leading to pro20 ficiency in each skill. 

21 ‘‘(ii) Receipt of a secondary school di22 ploma, General Educational Development 

23 credential (GED), or other State-recog24 nized equivalent. 
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1 ‘‘(iii) Placement in postsecondary edu2 cation or other training programs. 

3 ‘‘(B) EMPLOYMENT PERFORMANCE INDI4 CATORS.—Consistent with applicable Federal 

5 and State privacy laws, an eligible agency shall 

6 identify in the State plan the following indi7 vidual participant employment performance in8 dicators: 

9 ‘‘(i) Entry into employment. 

10 ‘‘(ii) Retention in employment. 

11 ‘‘(iii) Increase in earnings. 

12 ‘‘(3) LEVELS OF PERFORMANCE.— 

13 ‘‘(A) ELIGIBLE AGENCY ADJUSTED LEVELS

14 OF PERFORMANCE FOR CORE INDICATORS.— 

15 ‘‘(i) IN GENERAL.—For each eligible 

16 agency submitting a State plan, there shall 

17 be established, in accordance with this sub18 paragraph, levels of performance for each 

19 of the core indicators of performance de20 scribed in paragraph (2)(A) for adult edu21 cation, basic skills, and family literacy edu22 cation programs authorized under this 

23 title. The levels of performance established 

24 under this subparagraph shall, at a min25 imum— 
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1 ‘‘(I) be expressed in an objective, 

2 quantifiable, and measurable form; 

3 and 

4 ‘‘(II) show the progress of the el5 igible agency toward continuously and 

6 significantly improving the agency’s 

7 performance outcomes in an objective, 

8 quantifiable, and measurable form. 

9 ‘‘(ii) IDENTIFICATION IN STATE

10 PLAN.—Each eligible agency shall identify, 

11 in the State plan submitted under section 

12 224, expected levels of performance for 

13 each of the core indicators of performance 

14 for the first 3 program years covered by 

15 the State plan. 

16 ‘‘(iii) AGREEMENT ON ELIGIBLE

17 AGENCY ADJUSTED LEVELS OF PERFORM18 ANCE FOR FIRST 3 YEARS.—In order to en19 sure an optimal return on the investment 

20 of Federal funds in adult education, basic 

21 skills, and family literacy education pro22 grams authorized under this title, the Sec23 retary and each eligible agency shall reach 

24 agreement on levels of student perform25 ance for each of the core indicators of per-
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1 formance, for the first 3 program years 

2 covered by the State plan, taking into ac3 count the levels identified in the State plan 

4 under clause (ii) and the factors described 

5 in clause (iv). The levels agreed to under 

6 this clause shall be considered to be the eli7 gible agency adjusted levels of performance 

8 for the eligible agency for such years and 

9 shall be incorporated into the State plan 

10 prior to the approval of such plan. 

11 ‘‘(iv) FACTORS.—The agreement de12 scribed in clause (iii) or (v) shall take into 

13 account— 

14 ‘‘(I) how the levels involved com15 pare with the eligible agency’s ad16 justed levels of performance, taking 

17 into account factors including the 

18 characteristics of participants when 

19 the participants entered the program; 

20 and 

21 ‘‘(II) the extent to which such 

22 levels promote continuous and signifi23 cant improvement in performance on 

24 the student proficiency measures used 

25 by such eligible agency and ensure op-
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1 timal return on the investment of 

2 Federal funds. 

3 ‘‘(v) AGREEMENT ON ELIGIBLE AGEN4 CY ADJUSTED LEVELS OF PERFORMANCE

5 FOR SECOND 3 YEARS.—Prior to the fourth 

6 program year covered by the State plan, 

7 the Secretary and each eligible agency 

8 shall reach agreement on levels of student 

9 performance for each of the core indicators 

10 of performance for the fourth, fifth, and 

11 sixth program years covered by the State 

12 plan, taking into account the factors de13 scribed in clause (iv). The levels agreed to 

14 under this clause shall be considered to be 

15 the eligible agency adjusted levels of per16 formance for the eligible agency for such 

17 years and shall be incorporated into the 

18 State plan. 

19 ‘‘(vi) REVISIONS.—If unanticipated 

20 circumstances arise in a State resulting in 

21 a significant change in the factors de22 scribed in clause (iv)(I), the eligible agency 

23 may request that the eligible agency ad24 justed levels of performance agreed to 

25 under clause (iii) or (v) be revised. 
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1 ‘‘(B) LEVELS OF EMPLOYMENT PERFORM2 ANCE.—The eligible agency shall identify, in the 

3 State plan, eligible agency levels of performance 

4 for each of the employment performance indica5 tors described in paragraph (2)(B). Such levels 

6 shall be considered to be eligible agency ad7 justed levels of performance for purposes of this 

8 title. 

9 ‘‘(c) REPORT.— 

10 ‘‘(1) IN GENERAL.—Each eligible agency that 

11 receives a grant under section 211(b) shall annually 

12 prepare and submit to the Secretary, the Governor, 

13 the State legislature, and eligible providers a report 

14 on the progress of the eligible agency in achieving el15 igible agency performance measures, including the 

16 following: 

17 ‘‘(A) Information on the levels of perform18 ance achieved by the eligible agency with re19 spect to the core indicators of performance and 

20 employment performance indicators. 

21 ‘‘(B) The number and type of each eligible 

22 provider that receives funding under such 

23 grant. 

24 ‘‘(2) INFORMATION DISSEMINATION.—The Sec25 retary— 
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1 ‘‘(A) shall make the information contained 

2 in such reports available to the general public 

3 through publication (including on the Internet 

4 site of the Department of Education) and other 

5 appropriate methods; 

6 ‘‘(B) shall disseminate State-by-State com7 parisons of the information; and 

8 ‘‘(C) shall provide the appropriate commit9 tees of the Congress with copies of such re10 ports. 

11 ‘‘SEC. 213. INCENTIVE GRANTS FOR STATES. 

12 ‘‘(a) IN GENERAL.—From funds appropriated under 

13 section 211(a)(1), the Secretary may award grants to 

14 States for exemplary performance in carrying out pro15 grams under this title. Such awards shall be based on 

16 States exceeding the core indicators of performance estab17 lished under section 212(b)(2)(A) and may be based on 

18 the performance of the State in serving populations, such 

19 as those described in section 224(b)(10), including the lev20 els of service provided and the performance outcomes, and 

21 such other factors relating to the performance of the State 

22 under this title as the Secretary determines appropriate. 

23 ‘‘(b) USE OF FUNDS.—The funds awarded to a State 

24 under this paragraph may be used to carry out any activi-
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1 ties authorized under this title, including demonstrations 

2 and innovative programs for hard-to-serve populations. 

3 ‘‘CHAPTER 2—STATE PROVISIONS 

4 ‘‘SEC. 221. STATE ADMINISTRATION. 

5 ‘‘Each eligible agency shall be responsible for the fol6 lowing activities under this title: 

7 ‘‘(1) The development, submission, implementa8 tion, and monitoring of the State plan. 

9 ‘‘(2) Consultation with other appropriate agen10 cies, groups, and individuals that are involved in, or 

11 interested in, the development and implementation 

12 of activities assisted under this title. 

13 ‘‘(3) Coordination and avoidance of duplication 

14 with other Federal and State education, training, 

15 corrections, public housing, and social service pro16 grams. 

17 ‘‘SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING RE18 QUIREMENT. 

19 ‘‘(a) STATE DISTRIBUTION OF FUNDS.—Each eligi20 ble agency receiving a grant under this title for a fiscal 

21 year— 

22 ‘‘(1) shall use an amount not less than 82.5 

23 percent of the grant funds to award grants and con24 tracts under section 231 and to carry out section 
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1 225, of which not more than 10 percent of such 

2 amount shall be available to carry out section 225; 

3 ‘‘(2) shall use not more than 12.5 percent of 

4 the grant funds to carry out State leadership activi5 ties under section 223; and 

6 ‘‘(3) shall use not more than 5 percent of the 

7 grant funds, or $75,000, whichever is greater, for 

8 the administrative expenses of the eligible agency. 

9 ‘‘(b) MATCHING REQUIREMENT.— 

10 ‘‘(1) IN GENERAL.—In order to receive a grant 

11 from the Secretary under section 211(b), each eligi12 ble agency shall provide, for the costs to be incurred 

13 by the eligible agency in carrying out the adult edu14 cation, basic skills, and family literacy education 

15 programs for which the grant is awarded, a non16 Federal contribution in an amount at least equal 

17 to— 

18 ‘‘(A) in the case of an eligible agency serv19 ing an outlying area, 12 percent of the total 

20 amount of funds expended for adult education, 

21 basic skills, and family literacy education pro22 grams in the outlying area, except that the Sec23 retary may decrease the amount of funds re24 quired under this subparagraph for an eligible 

25 agency; and 
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1 ‘‘(B) in the case of an eligible agency serv2 ing a State, 25 percent of the total amount of 

3 funds expended for adult education, basic skills, 

4 and family literacy education programs in the 

5 State. 

6 ‘‘(2) NON-FEDERAL CONTRIBUTION.—An eligi7 ble agency’s non-Federal contribution required under 

8 paragraph (1) may be provided in cash or in kind, 

9 fairly evaluated, and shall include only non-Federal 

10 funds that are used for adult education, basic skills, 

11 and family literacy education programs in a manner 

12 that is consistent with the purpose of this title. 

13 ‘‘SEC. 223. STATE LEADERSHIP ACTIVITIES. 

14 ‘‘(a) IN GENERAL.—Each eligible agency may use 

15 funds made available under section 222(a)(2) for any of 

16 the following adult education, basic skills, and family lit17 eracy education programs: 

18 ‘‘(1) The establishment or operation of profes19 sional development programs to improve the quality 

20 of instruction provided pursuant to local activities 

21 required under section 231(b), including instruction 

22 incorporating the essential components of reading 

23 instruction and instruction provided by volunteers or 

24 by personnel of a State or outlying area. 
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1 ‘‘(2) The provision of technical assistance to eli2 gible providers of adult education, basic skills, and 

3 family literacy education programs, including for the 

4 development and dissemination of scientifically based 

5 research instructional practices in reading, writing, 

6 speaking, math, and English language acquisition 

7 programs. 

8 ‘‘(3) The provision of assistance to eligible pro9 viders in developing, implementing, and reporting 

10 measurable progress in achieving the objectives of 

11 this title. 

12 ‘‘(4) The provision of technology assistance, in13 cluding staff training, to eligible providers of adult 

14 education, basic skills, and family literacy education 

15 programs, including distance learning activities, to 

16 enable the eligible providers to improve the quality 

17 of such activities. 

18 ‘‘(5) The development and implementation of 

19 technology applications or distance learning, includ20 ing professional development to support the use of 

21 instructional technology. 

22 ‘‘(6) Coordination with other public programs, 

23 including welfare-to-work, workforce development, 

24 and job training programs. 
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1 ‘‘(7) Coordination with existing support serv2 ices, such as transportation, child care, and other 

3 assistance designed to increase rates of enrollment 

4 in, and successful completion of, adult education, 

5 basic skills, and family literacy education programs, 

6 for adults enrolled in such activities. 

7 ‘‘(8) The development and implementation of a 

8 system to assist in the transition from adult basic 

9 education to postsecondary education. 

10 ‘‘(9) Activities to promote workplace literacy 

11 programs. 

12 ‘‘(10) Activities to promote and complement 

13 local outreach initiatives described in section 243(7). 

14 ‘‘(11) Other activities of statewide significance, 

15 including assisting eligible providers in achieving 

16 progress in improving the skill levels of adults who 

17 participate in programs under this title. 

18 ‘‘(12) Integration of literacy, instructional, and 

19 occupational skill training and promotion of linkages 

20 with employees. 

21 ‘‘(b) COORDINATION.—In carrying out this section, 

22 eligible agencies shall coordinate where possible, and avoid 

23 duplicating efforts, in order to maximize the impact of the 

24 activities described in subsection (a). 
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1 ‘‘(c) STATE-IMPOSED REQUIREMENTS.—Whenever a 

2 State or outlying area implements any rule or policy relat3 ing to the administration or operation of a program au4 thorized under this title that has the effect of imposing 

5 a requirement that is not imposed under Federal law (in6 cluding any rule or policy based on a State or outlying 

7 area interpretation of a Federal statute, regulation, or 

8 guideline), the State or outlying area shall identify, to eli9 gible providers, the rule or policy as being imposed by the 

10 State or outlying area. 

11 ‘‘SEC. 224. STATE PLAN. 

12 ‘‘(a) 6-YEAR PLANS.— 

13 ‘‘(1) IN GENERAL.—Each eligible agency desir14 ing a grant under this title for any fiscal year shall 

15 submit to, or have on file with, the Secretary a 6- 

16 year State plan. 

17 ‘‘(2) COMPREHENSIVE PLAN OR APPLICA18 TION.—The eligible agency may submit the State 

19 plan as part of a comprehensive plan or application 

20 for Federal education assistance. 

21 ‘‘(b) PLAN CONTENTS.—The eligible agency shall in22 clude in the State plan or any revisions to the State plan— 

23 ‘‘(1) an objective assessment of the needs of in24 dividuals in the State or outlying area for adult edu25 cation, basic skills, and family literacy education 
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1 programs, including individuals most in need or 

2 hardest to serve; 

3 ‘‘(2) a description of the adult education, basic 

4 skills, and family literacy education programs that 

5 will be carried out with funds received under this 

6 title; 

7 ‘‘(3) a description of how the eligible agency 

8 will evaluate and measure annually the effectiveness 

9 and improvement of the adult education, basic skills, 

10 and family literacy education programs based on the 

11 performance measures described in section 212 in12 cluding— 

13 ‘‘(A) how the eligible agency will evaluate 

14 and measure annually such effectiveness on a 

15 grant-by-grant basis; and 

16 ‘‘(B) how the eligible agency— 

17 ‘‘(i) will hold eligible providers ac18 countable regarding the progress of such 

19 providers in improving the academic 

20 achievement of participants in adult edu21 cation programs under this title and re22 garding the core indicators of performance 

23 described in section 212(b)(2)(A); and 

24 ‘‘(ii) will use technical assistance, 

25 sanctions, and rewards (including alloca-
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1 tion of grant funds based on performance 

2 and termination of grant funds based on 

3 nonperformance); 

4 ‘‘(4) a description of the performance measures 

5 described in section 212 and how such performance 

6 measures have significantly improved adult edu7 cation, basic skills, and family literacy education 

8 programs in the State or outlying area; 

9 ‘‘(5) an assurance that the eligible agency will, 

10 in addition to meeting all of the other requirements 

11 of this title, award not less than one grant under 

12 this title to an eligible provider that— 

13 ‘‘(A) offers flexible schedules and necessary 

14 support services (such as child care and trans15 portation) to enable individuals, including indi16 viduals with disabilities, or individuals with 

17 other special needs, to participate in adult edu18 cation, basic skills, and family literacy edu19 cation programs; and 

20 ‘‘(B) attempts to coordinate with support 

21 services that are not provided under this title 

22 prior to using funds for adult education, basic 

23 skills, and family literacy education programs 

24 provided under this title for support services; 
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1 ‘‘(6) an assurance that the funds received under 

2 this title will not be expended for any purpose other 

3 than for activities under this title; 

4 ‘‘(7) a description of how the eligible agency 

5 will fund local activities in accordance with the 

6 measurable goals described in section 231(d); 

7 ‘‘(8) an assurance that the eligible agency will 

8 expend the funds under this title only in a manner 

9 consistent with fiscal requirements in section 241; 

10 ‘‘(9) a description of the process that will be 

11 used for public participation and comment with re12 spect to the State plan, which process— 

13 ‘‘(A) shall include consultation with the 

14 State workforce investment board, the State 

15 board responsible for administering community 

16 or technical colleges, the Governor, the State 

17 educational agency, the State board or agency 

18 responsible for administering block grants for 

19 temporary assistance to needy families under 

20 title IV of the Social Security Act, the State 

21 council on disabilities, the State vocational re22 habilitation agency, other State agencies that 

23 promote the improvement of adult education, 

24 basic skills, and family literacy education pro-
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1 grams, and direct providers of such programs; 

2 and 

3 ‘‘(B) may include consultation with the 

4 State agency on higher education, institutions 

5 responsible for professional development of 

6 adult education, basic skills, and family literacy 

7 education programs instructors, representatives 

8 of business and industry, refugee assistance 

9 programs, and faith-based organizations; 

10 ‘‘(10) a description of the eligible agency’s 

11 strategies for serving populations that include, at a 

12 minimum— 

13 ‘‘(A) low-income individuals; 

14 ‘‘(B) individuals with disabilities; 

15 ‘‘(C) the unemployed; 

16 ‘‘(D) the underemployed; and 

17 ‘‘(E) individuals with multiple barriers to 

18 educational enhancement, including individuals 

19 with limited English proficiency; 

20 ‘‘(11) a description of how the adult education, 

21 basic skills, and family literacy education programs 

22 that will be carried out with any funds received 

23 under this title will be integrated with other adult 

24 education, career development, and employment and 
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1 training activities in the State or outlying area 

2 served by the eligible agency; 

3 ‘‘(12) a description of the steps the eligible 

4 agency will take to ensure direct and equitable ac5 cess, as required in section 231(c)(1), including— 

6 ‘‘(A) how the State will build the capacity 

7 of community-based and faith-based organiza8 tions to provide adult education, basic skills, 

9 and family literacy education programs; and 

10 ‘‘(B) how the State will increase the par11 ticipation of business and industry in adult edu12 cation, basic skills, and family literacy edu13 cation programs; 

14 ‘‘(13) an assessment of the adequacy of the sys15 tem of the State or outlying area to ensure teacher 

16 quality and a description of how the State or out17 lying area will use funds received under this subtitle 

18 to improve teacher quality, including professional de19 velopment on the use of scientifically based research 

20 to improve instruction; and 

21 ‘‘(14) a description of how the eligible agency 

22 will consult with any State agency responsible for 

23 postsecondary education to develop adult education 

24 that prepares students to enter postsecondary edu-
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1 cation without the need for remediation upon com2 pletion of secondary school equivalency programs. 

3 ‘‘(c) PLAN REVISIONS.—When changes in conditions 

4 or other factors require substantial revisions to an ap5 proved State plan, the eligible agency shall submit the re6 visions of the State plan to the Secretary. 

7 ‘‘(d) CONSULTATION.—The eligible agency shall— 

8 ‘‘(1) submit the State plan, and any revisions to 

9 the State plan, to the Governor, the chief State 

10 school officer, or the State officer responsible for ad11 ministering community or technical colleges, or out12 lying area for review and comment; and 

13 ‘‘(2) ensure that any comments regarding the 

14 State plan by the Governor, the chief State school 

15 officer, or the State officer responsible for admin16 istering community or technical colleges, and any re17 vision to the State plan, are submitted to the Sec18 retary. 

19 ‘‘(e) PLAN APPROVAL.—A State plan submitted to 

20 the Secretary shall be approved by the Secretary only if 

21 the plan is consistent with the specific provisions of this 

22 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 education, basic skills, and family lit25 eracy education 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 education, basic skills, and family 

7 literacy education programs (including proficiency in 

8 reading, 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 exceeding its perform8 ance 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, to ensure that an indi6 vidual has the skills needed to compete in the work7 place and exercise the rights and responsibilities of 

8 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 education, basic skills, and family 

11 literacy education programs offer rigorous reading, 

12 writing, speaking, and math content that are based 

13 on scientifically based 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 education, basic skills, and family literacy edu13 cation programs; 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 education, basic skills, and family 

22 literacy 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 education, basic skills, and family lit14 eracy education programs under this title shall supplement 

15 and not supplant other State or local public funds ex16 pended for adult education, basic skills, and family literacy 

17 education programs. 

18 ‘‘(b) MAINTENANCE OF EFFORT.— 

19 ‘‘(1) IN GENERAL.— 

20 ‘‘(A) DETERMINATION.—An eligible agency 

21 may receive funds under this title for any fiscal 

22 year if the Secretary finds that the fiscal effort 

23 per student or the aggregate expenditures of 

24 such eligible agency for activities under this 

25 title, in the second preceding fiscal year, were 
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1 not less than 90 percent of the fiscal effort per 

2 student or the aggregate expenditures of such 

3 eligible agency for adult education, basic skills, 

4 and family literacy education programs, in the 

5 third preceding fiscal year. 

6 ‘‘(B) PROPORTIONATE REDUCTION.—Sub7 ject to paragraphs (2), (3), and (4), for any fis8 cal year with respect to which the Secretary de9 termines under subparagraph (A) that the fiscal 

10 effort or the aggregate expenditures of an eligi11 ble agency for the preceding program year were 

12 less than such effort or expenditures for the 

13 second preceding program year, the Secretary— 

14 ‘‘(i) shall determine the percentage 

15 decreases in such effort or in such expendi16 tures; and 

17 ‘‘(ii) shall decrease the payment made 

18 under this title for such program year to 

19 the agency for adult education, basic skills, 

20 and family literacy education programs by 

21 the lesser of such percentages. 

22 ‘‘(2) COMPUTATION.—In computing the fiscal 

23 effort and aggregate expenditures under paragraph 

24 (1), the Secretary shall exclude capital expenditures 

25 and special one-time project costs. 
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1 ‘‘(3) DECREASE IN FEDERAL SUPPORT.—If the 

2 amount made available for adult education, basic 

3 skills, and family literacy education programs under 

4 this title for a fiscal year is less than the amount 

5 made available for adult education, basic skills, and 

6 family literacy education programs under this title 

7 for the preceding fiscal year, then the fiscal effort 

8 per student and the aggregate expenditures of an el9 igible agency required in order to avoid a reduction 

10 under paragraph (1)(B) shall be decreased by the 

11 same percentage as the percentage decrease in the 

12 amount so made 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 and disseminate rigorous sci8 entific research on the effectiveness of instruc9 tional practices and organizational strategies re10 lating to programs on the acquisition of skills 

11 in reading, writing, and English language ac12 quisition for 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) ensure a broad understanding of sci19 entifically 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, including State and 

24 local educational agencies; 
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1 ‘‘(D) facilitate coordination and informa2 tion sharing among national organizations and 

3 associations interested in programs that provide 

4 services to improve skills in reading, writing, 

5 and English language acquisition for children, 

6 youth, and adults; 

7 ‘‘(E) coordinate with the appropriate of8 fices in the Department of Education, the De9 partment of Health and Human Services, the 

10 Department of Labor, and other Federal agen11 cies to apply the findings of scientifically based 

12 research related to programs on reading, writ13 ing, and English language acquisition for chil14 dren, youth, and adults; 

15 ‘‘(F) establish a national electronic data16 base and Internet site describing and fostering 

17 communication on scientifically based programs 

18 in reading, writing, and English language ac19 quisition for children, youth, and adults, includ20 ing professional development programs; and 

21 ‘‘(G) provide opportunities for technical as22 sistance, meetings, and conferences that will 

23 foster increased coordination among Federal, 

24 State, and local agencies and entities and im25 provement of reading, writing, and English lan-
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1 guage acquisition skills for children, youth, and 

2 adults. 

3 ‘‘(2) COORDINATION.—In identifying scientif4 ically based research on reading, writing, and 

5 English language acquisition for children, youth, and 

6 adults, the Institute shall use standards for research 

7 quality that are consistent with those established by 

8 the Institute of Education Sciences. 

9 ‘‘(3) GRANTS, CONTRACTS, AND COOPERATIVE

10 AGREEMENTS.— 

11 ‘‘(A) IN GENERAL.—The Institute may 

12 award grants to, or enter into contracts or co13 operative agreements with, individuals, public 

14 or private institutions, agencies, organizations, 

15 or consortia of such individuals, institutions, 

16 agencies, or organizations, to carry out the ac17 tivities of the Institute. 

18 ‘‘(B) REGULATIONS.—The Director may 

19 adopt the general administrative regulations of 

20 the Department of Education, as applicable, for 

21 use by the Institute. 

22 ‘‘(C) RELATION TO OTHER LAWS.—The 

23 duties and powers of the Institute under this 

24 title are in addition to the duties and powers of 

25 the Institute under subparts 1, 2, and 3 of part 
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1 B of the Elementary and Secondary Education 

2 Act of 1965 (commonly referred to as Reading 

3 First, Early Reading First, and the William F. 

4 Goodling Even Start Family Literacy Program, 

5 respectively). 

6 ‘‘(c) VISITING SCHOLARS.—The Institute may estab7 lish a visiting scholars program, with such stipends and 

8 allowances as the Director considers necessary, for out9 standing researchers, scholars, and individuals who— 

10 ‘‘(1) have careers in adult education, workforce 

11 development, or scientifically based reading, writing, 

12 or English language acquisition; and 

13 ‘‘(2) can assist the Institute in translating re14 search into practice and providing analysis that ad15 vances instruction in the fields of reading, writing, 

16 and English language acquisition for children, youth, 

17 and adults. 

18 ‘‘(d) INTERNS AND VOLUNTEERS.—The Institute, in 

19 consultation with the National Institute for Literacy Advi20 sory Board, may award paid and unpaid internships to 

21 individuals seeking to assist the Institute in carrying out 

22 its purpose. Notwithstanding section 1342 of title 31, 

23 United States Code, the Institute may accept and use vol24 untary and uncompensated services as the Institute deter25 mines necessary. 
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1 ‘‘(e) NATIONAL INSTITUTE FOR LITERACY ADVISORY

2 BOARD.— 

3 ‘‘(1) ESTABLISHMENT.— 

4 ‘‘(A) IN GENERAL.—There shall be a Na5 tional Institute for Literacy Advisory Board (in 

6 this section referred to as the ‘Board’), which 

7 shall consist of 10 individuals appointed by the 

8 President with the advice and consent of the 

9 Senate. 

10 ‘‘(B) QUALIFICATIONS.—The Board shall 

11 be composed of individuals who— 

12 ‘‘(i) are not otherwise officers or em13 ployees of the Federal Government; and 

14 ‘‘(ii) are knowledgeable about current 

15 effective scientifically based research find16 ings on instruction in reading, writing, and 

17 English language acquisition for children, 

18 youth, and adults. 

19 ‘‘(C) COMPOSITION.—The Board may in20 clude— 

21 ‘‘(i) representatives of business, indus22 try, labor, literacy organizations, adult 

23 education providers, community colleges, 

24 students with disabilities, and State agen-
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1 cies, including State directors of adult edu2 cation; and 

3 ‘‘(ii) individuals who, and representa4 tives of entities that, have been successful 

5 in improving skills in reading, writing, and 

6 English language acquisition for children, 

7 youth, and adults. 

8 ‘‘(2) DUTIES.—The Board shall— 

9 ‘‘(A) make recommendations concerning 

10 the appointment of the Director of the Insti11 tute; 

12 ‘‘(B) provide independent advice on the op13 eration of the Institute; 

14 ‘‘(C) receive reports from the Interagency 

15 Group and the Director; and 

16 ‘‘(D) review the biennial report to the Con17 gress under subsection (k). 

18 ‘‘(3) FEDERAL ADVISORY COMMITTEE ACT.— 

19 Except as otherwise provided, the Board shall be 

20 subject to the provisions of the Federal Advisory 

21 Committee Act. 

22 ‘‘(4) APPOINTMENTS.— 

23 ‘‘(A) IN GENERAL.—Each member of the 

24 Board shall be appointed for a term of 3 years, 

25 except that the initial terms for members may 
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1 be 1, 2, or 3 years in order to establish a rota2 tion in which one-third of the members are se3 lected each year. Any such member may be ap4 pointed for not more than 2 consecutive terms. 

5 ‘‘(B) VACANCIES.—Any member appointed 

6 to fill a vacancy occurring before the expiration 

7 of the term for which the member’s predecessor 

8 was appointed shall be appointed only for the 

9 remainder of that term. A member may serve 

10 after the expiration of that member’s term until 

11 a successor has taken office. 

12 ‘‘(5) QUORUM.—A majority of the members of 

13 the Board shall constitute a quorum, but a lesser 

14 number may hold hearings. A recommendation of 

15 the Board may be passed only by a majority of the 

16 Board’s members present at a meeting for which 

17 there is a quorum. 

18 ‘‘(6) ELECTION OF OFFICERS.—The Chair19 person and Vice Chairperson of the Board shall be 

20 elected by the members of the Board. The term of 

21 office of the Chairperson and Vice Chairperson shall 

22 be 2 years. 

23 ‘‘(7) MEETINGS.—The Board shall meet at the 

24 call of the Chairperson or a majority of the members 

25 of the Board. 
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1 ‘‘(f) GIFTS, BEQUESTS, AND DEVISES.— 

2 ‘‘(1) IN GENERAL.—The Institute may accept, 

3 administer, and use gifts or donations of services, 

4 money, or property, whether real or personal, tan5 gible or intangible. 

6 ‘‘(2) RULES.—The Board shall establish writ7 ten rules setting forth the criteria to be used by the 

8 Institute in determining whether the acceptance of 

9 contributions of services, money, or property whether 

10 real or personal, tangible or intangible, would reflect 

11 unfavorably upon the ability of the Institute or any 

12 employee to carry out the responsibilities of the In13 stitute or employee, or official duties, in a fair and 

14 objective manner, or would compromise the integrity, 

15 or the appearance of the integrity, of the Institute’s 

16 programs or any official involved in those programs. 

17 ‘‘(g) MAILS.—The Board and the Institute may use 

18 the United States mails in the same manner and under 

19 the same conditions as other departments and agencies of 

20 the United States. 

21 ‘‘(h) DIRECTOR.—The Secretary of Education, after 

22 considering recommendations made by the Board and con23 sulting with the Interagency Group, shall appoint and fix 

24 the pay of the Director of the Institute and, when nec25 essary, shall appoint an Interim Director of the Institute. 
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1 ‘‘(i) APPLICABILITY OF CERTAIN CIVIL SERVICE

2 LAWS.—The Director and staff of the Institute may be 

3 appointed without regard to the provisions of title 5, 

4 United States Code, governing appointments in the com5 petitive service, and may be paid without regard to the 

6 provisions of chapter 51 and subchapter III of chapter 53 

7 of that title relating to classification and General Schedule 

8 pay rates, except that an individual so appointed may not 

9 receive pay in excess of the annual rate of basic pay pay10 able for level IV of the Executive Schedule. 

11 ‘‘(j) EXPERTS AND CONSULTANTS.—The Institute 

12 may procure temporary and intermittent services under 

13 section 3109(b) of title 5, United States Code. 

14 ‘‘(k) BIENNIAL REPORT.— 

15 ‘‘(1) IN GENERAL.—The Institute shall submit 

16 a report biennially to the Committee on Education 

17 and the Workforce of the House of Representatives 

18 and the Committee on Health, Education, Labor, 

19 and Pensions of the Senate. Each report submitted 

20 under this subsection shall include— 

21 ‘‘(A) a comprehensive and detailed descrip22 tion of the Institute’s operations, activities, fi23 nancial condition, and accomplishments in iden24 tifying and describing programs on reading, 

25 writing, and English language acquisition for 
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1 children, youth, and adults for the period cov2 ered by the report; and 

3 ‘‘(B) a description of how plans for the op4 eration of the Institute for the succeeding 2 fis5 cal years will facilitate achievement of the pur6 pose of the Institute. 

7 ‘‘(2) FIRST REPORT.—The Institute shall sub8 mit its first report under this subsection to the Con9 gress not later than 1 year after the date of the en10 actment of the Job Training Improvement Act of 

11 2005. 

12 ‘‘(l) ADDITIONAL FUNDING.—In addition to the 

13 funds authorized under section 205 and reserved for the 

14 Institute under section 211, the Secretary of Education, 

15 the Secretary of Health and Human Services, the Sec16 retary of Labor, or the head of any other Federal agency 

17 or department that participates in the activities of the In18 stitute may provide funds to the Institute for activities 

19 that the Institute is authorized to perform under this sec20 tion. 

21 ‘‘SEC. 243. NATIONAL LEADERSHIP ACTIVITIES. 

22 ‘‘The Secretary shall establish and carry out a pro23 gram of national leadership activities that may include the 

24 following: 
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1 ‘‘(1) Technical assistance, on request, including 

2 assistance— 

3 ‘‘(A) on request to volunteer community4 and faith-based organizations, including but not 

5 limited to, improving their fiscal management, 

6 research-based instruction, and reporting re7 quirements, and the development of measurable 

8 objectives to carry out the requirements of this 

9 title; 

10 ‘‘(B) in developing valid, measurable, and 

11 reliable performance data, and using perform12 ance information for the improvement of adult 

13 education basic skills, English language acquisi14 tion, and family literacy education programs; 

15 ‘‘(C) on adult education professional devel16 opment; and 

17 ‘‘(D) in using distance learning and im18 proving the application of technology in the 

19 classroom, including instruction in English lan20 guage acquisition for individuals who have lim21 ited English proficiency. 

22 ‘‘(2) Providing for the conduct of research on 

23 national literacy basic skill acquisition levels among 

24 adults, including the number of limited English pro-
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1 ficient adults functioning at different levels of read2 ing proficiency. 

3 ‘‘(3) Improving the coordination, efficiency, and 

4 effectiveness of adult education and workforce devel5 opment services at the national, State, and local lev6 els. 

7 ‘‘(4) Determining how participation in adult 

8 education basic skills, English language acquisition, 

9 and family literacy education programs prepares in10 dividuals for entry into and success in postsecondary 

11 education and employment, and in the case of pris12 on-based services, the effect on recidivism. 

13 ‘‘(5) Evaluating how different types of pro14 viders, including community and faith-based organi15 zations or private for-profit agencies measurably im16 prove the skills of participants in adult education 

17 basic skills, English language acquisition, and family 

18 literacy education programs. 

19 ‘‘(6) Identifying model integrated basic and 

20 workplace skills education programs, including pro21 grams for individuals with limited English pro22 ficiency coordinated literacy and employment serv23 ices, and effective strategies for serving adults with 

24 disabilities. 
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1 ‘‘(7) Supporting the development of an entity 

2 that would produce and distribute technology-based 

3 programs and materials for adult education, basic 

4 skills, and family literacy education programs using 

5 an intercommunication system, as that term is de6 fined in section 397 of the Communications Act of 

7 1934, and expand the effective outreach and use of 

8 such programs and materials to adult education eli9 gible providers. 

10 ‘‘(8) Initiating other activities designed to im11 prove the measurable quality and effectiveness of 

12 adult education basic skills, English language acqui13 sition, and family literacy education programs na14 tionwide.’’. 

15 TITLE III—AMENDMENTS TO 

16 THE WAGNER-PEYSER ACT 

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

18 The Wagner-Peyser Act (29 U.S.C. 49 et. seq.) is 

19 amended— 

20 (1) by striking sections 1 through 13; 

21 (2) in section 14 by inserting ‘‘of Labor’’ after 

22 ‘‘Secretary’’; and 

23 (3) by amending section 15 to read as follows: 
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1 ‘‘SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION 

2 SYSTEM. 

3 ‘‘(a) SYSTEM CONTENT.— 

4 ‘‘(1) IN GENERAL.—The Secretary of Labor, in 

5 accordance with the provisions of this section, shall 

6 oversee the development, maintenance, and contin7 uous improvement of a nationwide workforce and 

8 labor market information system that includes— 

9 ‘‘(A) statistical data from cooperative sta10 tistical survey and projection programs and 

11 data from administrative reporting systems 

12 that, taken together, enumerate, estimate, and 

13 project employment opportunities and condi14 tions at national, State, and local levels in a 

15 timely manner, including statistics on— 

16 ‘‘(i) employment and unemployment 

17 status of national, State, and local popu18 lations, including self-employed, part-time, 

19 and seasonal workers; 

20 ‘‘(ii) industrial distribution of occupa21 tions, as well as current and projected em22 ployment opportunities, wages, benefits 

23 (where data is available), and skill trends 

24 by occupation and industry, with particular 

25 attention paid to State and local condi26 tions; 
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1 ‘‘(iii) the incidence of, industrial and 

2 geographical location of, and number of 

3 workers displaced by, permanent layoffs 

4 and plant closings; and 

5 ‘‘(iv) employment and earnings infor6 mation maintained in a longitudinal man7 ner to be used for research and program 

8 evaluation; 

9 ‘‘(B) information on State and local em10 ployment opportunities, and other appropriate 

11 statistical data related to labor market dynam12 ics, which— 

13 ‘‘(i) shall be current and comprehen14 sive; 

15 ‘‘(ii) shall meet the needs identified 

16 through the consultations described in sub17 paragraphs (A) and (B) of subsection 

18 (e)(2); and 

19 ‘‘(iii) shall meet the needs for the in20 formation identified in section 134(d); 

21 ‘‘(C) technical standards (which the Sec22 retary shall publish annually) for data and in23 formation described in subparagraphs (A) and 

24 (B) that, at a minimum, meet the criteria of 

25 chapter 35 of title 44, United States Code; 
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1 ‘‘(D) procedures to ensure compatibility 

2 and additivity of the data and information de3 scribed in subparagraphs (A) and (B) from na4 tional, State, and local levels; 

5 ‘‘(E) procedures to support standardization 

6 and aggregation of data from administrative re7 porting systems described in subparagraph (A) 

8 of employment-related programs; 

9 ‘‘(F) analysis of data and information de10 scribed in subparagraphs (A) and (B) for uses 

11 such as— 

12 ‘‘(i) national, State, and local policy13 making; 

14 ‘‘(ii) implementation of Federal poli15 cies (including allocation formulas); 

16 ‘‘(iii) program planning and evalua17 tion; and 

18 ‘‘(iv) researching labor market dynam19 ics; 

20 ‘‘(G) wide dissemination of such data, in21 formation, and analysis in a user-friendly man22 ner and voluntary technical standards for dis23 semination mechanisms; and 

24 ‘‘(H) programs of— 
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1 ‘‘(i) training for effective data dis2 semination; 

3 ‘‘(ii) research and demonstration; and 

4 ‘‘(iii) programs and technical assist5 ance. 

6 ‘‘(2) INFORMATION TO BE CONFIDENTIAL.— 

7 ‘‘(A) IN GENERAL.—No officer or em8 ployee of the Federal Government or agent of 

9 the Federal Government may— 

10 ‘‘(i) use any submission that is fur11 nished for exclusively statistical purposes 

12 under the provisions of this section for any 

13 purpose other than the statistical purposes 

14 for which the submission is furnished; 

15 ‘‘(ii) make any publication or media 

16 transmittal of the data contained in the 

17 submission described in clause (i) that per18 mits information concerning individual 

19 subjects to be reasonably inferred by either 

20 direct or indirect means; or 

21 ‘‘(iii) permit anyone other than a 

22 sworn officer, employee, or agent of any 

23 Federal department or agency, or a con24 tractor (including an employee of a con25 tractor) of such department or agency, to 
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1 examine an individual submission described 

2 in clause (i), 

3 without the consent of the individual, agency, or 

4 other person who is the subject of the submis5 sion or provides that submission. 

6 ‘‘(B) IMMUNITY FROM LEGAL PROCESS.— 

7 Any submission (including any data derived 

8 from the submission) that is collected and re9 tained by a Federal department or agency, or 

10 an officer, employee, agent, or contractor of 

11 such a department or agency, for exclusively 

12 statistical purposes under this section shall be 

13 immune from the legal process and shall not, 

14 without the consent of the individual, agency, or 

15 other person who is the subject of the submis16 sion or provides that submission, be admitted 

17 as evidence or used for any purpose in any ac18 tion, suit, or other judicial or administrative 

19 proceeding. 

20 ‘‘(C) RULE OF CONSTRUCTION.—Nothing 

21 in this section shall be construed to provide im22 munity from the legal process for such submis23 sion (including any data derived from the sub24 mission) if the submission is in the possession 

25 of any person, agency, or entity other than the 
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1 Federal Government or an officer, employee, 

2 agent, or contractor of the Federal Government, 

3 or if the submission is independently collected, 

4 retained, or produced for purposes other than 

5 the purposes of this Act. 

6 ‘‘(b) SYSTEM RESPONSIBILITIES.— 

7 ‘‘(1) IN GENERAL.—The workforce and labor 

8 market information system described in subsection 

9 (a) shall be planned, administered, overseen, and 

10 evaluated through a cooperative governance struc11 ture involving the Federal Government and States. 

12 ‘‘(2) DUTIES.—The Secretary, with respect to 

13 data collection, analysis, and dissemination of labor 

14 employment statistics for the system, shall carry out 

15 the following duties: 

16 ‘‘(A) Assign responsibilities within the De17 partment of Labor for elements of the work18 force and labor market information system de19 scribed in subsection (a) to ensure that all sta20 tistical and administrative data collected is con21 sistent with appropriate Bureau of Labor Sta22 tistics standards and definitions. 

23 ‘‘(B) Actively seek the cooperation of other 

24 Federal agencies to establish and maintain 

25 mechanisms for ensuring complementarity and 
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1 nonduplication in the development and oper2 ation of statistical and administrative data col3 lection activities. 

4 ‘‘(C) Eliminate gaps and duplication in 

5 statistical undertakings, with the systemization 

6 of wage surveys as an early priority. 

7 ‘‘(D) In collaboration with the Bureau of 

8 Labor Statistics and States, develop and main9 tain the elements of the workforce and labor 

10 market information system described in sub11 section (a), including the development of con12 sistent procedures and definitions for use by the 

13 States in collecting the data and information 

14 described in subparagraphs (A) and (B) of sub15 section (a)(1). 

16 ‘‘(E) Establish procedures for the system 

17 to ensure that— 

18 ‘‘(i) such data and information are 

19 timely; 

20 ‘‘(ii) paperwork and reporting for the 

21 system are reduced to a minimum; and 

22 ‘‘(iii) States and localities are fully in23 volved in the development and continuous 

24 improvement of the system at all levels, in25 cluding ensuring the provision, to such 
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1 States and localities, of budget information 

2 necessary for carrying out their respon3 sibilities under subsection (e). 

4 ‘‘(c) NATIONAL ELECTRONIC TOOLS TO PROVIDE

5 SERVICES.—The Secretary is authorized to assist in the 

6 development of national electronic tools that may be used 

7 to facilitate the delivery of core services described in sec8 tion 134 and to provide workforce information to individ9 uals through the one-stop delivery systems described in 

10 section 121 and through other appropriate delivery sys11 tems. 

12 ‘‘(d) COORDINATION WITH THE STATES.— 

13 ‘‘(1) IN GENERAL.—The Secretary, working 

14 through the Bureau of Labor Statistics and the Em15 ployment and Training Administration, shall regu16 larly consult with representatives of State agencies 

17 carrying out workforce information activities regard18 ing strategies for improving the workforce and labor 

19 market information system. 

20 ‘‘(2) FORMAL CONSULTATIONS.—At least twice 

21 each year, the Secretary, working through the Bu22 reau of Labor Statistics, shall conduct formal con23 sultations regarding programs carried out by the 

24 Bureau of Labor Statistics with representatives of 

25 each of the 10 Federal regions of the Department of 
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1 Labor, elected from the State directors affiliated 

2 with State agencies that perform the duties de3 scribed in subsection (e)(2). 

4 ‘‘(e) STATE RESPONSIBILITIES.— 

5 ‘‘(1) IN GENERAL.—In order to receive Federal 

6 financial assistance under this section, the Governor 

7 of a State shall— 

8 ‘‘(A) be responsible for the management of 

9 the portions of the workforce and labor market 

10 information system described in subsection (a) 

11 that comprise a statewide workforce and labor 

12 market information system and for the State’s 

13 participation in the development of the annual 

14 plan; 

15 ‘‘(B) establish a process for the oversight 

16 of such system; 

17 ‘‘(C) consult with State and local employ18 ers, participants, and local workforce invest19 ment boards about the labor market relevance 

20 of the data to be collected and disseminated 

21 through the statewide workforce and labor mar22 ket information system; 

23 ‘‘(D) consult with State educational agen24 cies and local educational agencies concerning 

25 the provision of employment statistics in order 
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1 to meet the needs of secondary school and post2 secondary school students who seek such infor3 mation; 

4 ‘‘(E) collect and disseminate for the sys5 tem, on behalf of the State and localities in the 

6 State, the information and data described in 

7 subparagraphs (A) and (B) of subsection 

8 (a)(1); 

9 ‘‘(F) maintain and continuously improve 

10 the statewide workforce and labor market infor11 mation system in accordance with this section; 

12 ‘‘(G) perform contract and grant respon13 sibilities for data collection, analysis, and dis14 semination for such system; 

15 ‘‘(H) conduct such other data collection, 

16 analysis, and dissemination activities as will en17 sure an effective statewide workforce and labor 

18 market information system; 

19 ‘‘(I) actively seek the participation of other 

20 State and local agencies in data collection, anal21 ysis, and dissemination activities in order to en22 sure complementarity, compatibility, and useful23 ness of data; 

24 ‘‘(J) participate in the development of the 

25 annual plan described in subsection (c); and 
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1 ‘‘(K) utilize the quarterly records described 

2 in section 136(f)(2) of the Workforce Invest3 ment Act of 1998 to assist the State and other 

4 States in measuring State progress on State 

5 performance measures. 

6 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

7 this section shall be construed as limiting the ability 

8 of a Governor to conduct additional data collection, 

9 analysis, and dissemination activities with State 

10 funds or with Federal funds from sources other than 

11 this section. 

12 ‘‘(f) NONDUPLICATION REQUIREMENT.—None of the 

13 functions and activities carried out pursuant to this sec14 tion shall duplicate the functions and activities carried out 

15 under the Carl D. Perkins Vocational and Applied Tech16 nology Education Act (20 U.S.C. 2301 et seq.). 

17 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

18 are authorized to be appropriated to carry out this section 

19 such sums as may be necessary for each of the fiscal years 

20 2006 through 2011. 

21 ‘‘(h) DEFINITION.—In this section, the term ‘local 

22 area’ means the smallest geographical area for which data 

23 can be produced with statistical reliability.’’. 
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1 TITLE IV—AMENDMENTS TO THE 

2 REHABILITATION ACT OF 1973 

3 SEC. 401. FINDINGS. 

4 Section 2(a) of the Rehabilitation Act of 1973 (29 

5 U.S.C. 701(a)) is amended— 

6 (1) in paragraph (5), by striking ‘‘and’’ at the 

7 end; 

8 (2) in paragraph (6), by striking the period and 

9 inserting ‘‘; and’’; and 

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

11 ‘‘(7) there is a substantial need to improve and 

12 expand services for students with disabilities under 

13 this Act.’’. 

14 SEC. 402. REHABILITATION SERVICES ADMINISTRATION. 

15 Section 3(a) of the Rehabilitation Act of 1973 (29 

16 U.S.C. 702(a)) is amended— 

17 (1) by striking ‘‘Office of the Secretary’’ and 

18 inserting ‘‘Department of Education’’; 

19 (2) by striking ‘‘President by and with the ad20 vice and consent of the Senate’’ and inserting ‘‘Sec21 retary, except that the Commissioner appointed 

22 under the authority existing on the day prior to the 

23 date of enactment of the Job Training Improvement 

24 Act of 2005 may continue to serve in the former ca25 pacity’’; and 
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1 (3) by striking ‘‘, and the Commissioner shall 

2 be the principal officer,’’. 

3 SEC. 403. DIRECTOR. 

4 (a) IN GENERAL.—The Rehabilitation Act of 1973 

5 (29 U.S.C. 701 et seq.) is amended— 

6 (1) by striking ‘‘Commissioner’’ each place it 

7 appears, except in sections 3(a) (as amended by sec8 tion 402) and 21, and inserting ‘‘Director’’; 

9 (2) in section 100(d)(2)(B), by striking 

10 ‘‘COMMISIONER’’ and inserting ‘‘DIRECTOR’’; 

11 (3) in section 706, by striking 

12 ‘‘COMMISIONER’’ and inserting ‘‘DIRECTOR’’; and 

13 (4) in section 723(a)(3), by striking 

14 ‘‘COMMISIONER’’ and inserting ‘‘DIRECTOR’’. 

15 (b) EXCEPTION.—Section 21 of the Rehabilitation 

16 Act of 1973 (29 U.S.C. 718) is amended— 

17 (1) in subsection (b)(1)— 

18 (A) by striking ‘‘Commissioner’’ the first 

19 place it appears and inserting ‘‘Director of the 

20 Rehabilitation Services Administration’’; and 

21 (B) by striking ‘‘(referred to in this sub22 section as the ‘Director’)’’; and 

23 (2) by striking ‘‘Commissioner and the Direc24 tor’’ each place it appears and inserting ‘‘both such 

25 Directors’’. 
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1 SEC. 404. DEFINITIONS. 

2 Section 7 of the Rehabilitation Act of 1973 (29 

3 U.S.C. 705) is amended— 

4 (1) by redesignating paragraphs (35) through 

5 (39) as paragraphs (36), (37), (38), (40), and (41), 

6 respectively; 

7 (2) in subparagraph (A)(ii) of paragraph (36) 

8 (as redesignated in paragraph (1)), by striking 

9 ‘‘paragraph (36)(C)’’ and inserting ‘‘paragraph 

10 (37)(C)’’; 

11 (3) by inserting after paragraph (34) the fol12 lowing: 

13 ‘‘(35)(A) The term ‘student with a disability’ 

14 means an individual with a disability who— 

15 ‘‘(i) is not younger than 16 and not older 

16 than 21; 

17 ‘‘(ii) has been determined to be eligible 

18 under section 102(a) for assistance under this 

19 title; and 

20 ‘‘(iii)(I) is eligible for, and is receiving, 

21 special education under part B of the Individ22 uals with Disabilities Education Act (20 U.S.C. 

23 1411 et seq.); or 

24 ‘‘(II) is an individual with a disability, for 

25 purposes of section 504. 
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1 ‘‘(B) The term ‘students with disabilities’ 

2 means more than 1 student with a disability.’’; and 

3 (4) by inserting after paragraph (38) (as redes4 ignated by paragraph (1)) the following: 

5 ‘‘(39) The term ‘transition services expansion 

6 year’ means— 

7 ‘‘(A) the first fiscal year for which the 

8 amount appropriated under section 100(b) ex9 ceeds the amount appropriated under section 

10 100(b) for fiscal year 2004 by not less than 

11 $100,000,000; and 

12 ‘‘(B) each fiscal year subsequent to that 

13 first fiscal year.’’. 

14 SEC. 405. STATE PLAN. 

15 (a) COORDINATION WITH EDUCATION OFFICIALS

16 AND ASSISTIVE TECHNOLOGY PROGRAMS.—Section 

17 101(a)(11) of the Rehabilitation Act of 1973 (29 U.S.C. 

18 721(a)(11)) is amended— 

19 (1) in subparagraph (D)(i) by inserting ‘‘, 

20 which may be provided using alternative means of 

21 meeting participation (such as video conferences and 

22 conference calls)’’ before the semicolon; and 

23 (2) by adding at the end the following: 

24 ‘‘(G) COORDINATION WITH ASSISTIVE

25 TECHNOLOGY PROGRAMS.—The State plan shall 
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1 include an assurance that the designated State 

2 unit and the lead agency responsible for car3 rying out duties under the Assistive Technology 

4 Act of 1998 (29 U.S.C. 3001), as amended, 

5 have developed working relationships and co6 ordinate their activities.’’. 

7 (b) ASSESSMENT AND STRATEGIES.—Section 

8 101(a)(15) of the Rehabilitation Act of 1973 (29 U.S.C. 

9 721(a)(15)) is amended— 

10 (1) in subparagraph (A) 

11 (A) in clause (i)— 

12 (i) in subclause (II), by striking 

13 ‘‘and’’ at the end; 

14 (ii) in subclause (III), by adding 

15 ‘‘and’’ at the end; and 

16 (iii) by adding at the end the fol17 lowing: 

18 ‘‘(IV) in a transition services ex19 pansion year, students with disabil20 ities, including their need for transi21 tion services;’’; and 

22 (B) by redesignating clauses (ii) and (iii) 

23 as clauses (iii) and (iv), respectively, and insert24 ing after clause (i) the following: 
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1 ‘‘(ii) include an assessment of the 

2 transition services provided under this Act, 

3 and coordinated with transition services 

4 under the Individuals with Disabilities 

5 Education Act, as to those services meet6 ing the needs of individuals with disabil7 ities;’’; and 

8 (2) in subparagraph (D)— 

9 (A) by redesignating clauses (iii), (iv), and 

10 (v) as clauses (iv), (v), and (vi), respectively; 

11 and 

12 (B) by inserting after clause (ii) the fol13 lowing: 

14 ‘‘(iii) in a transition services expan15 sion year, the methods to be used to im16 prove and expand vocational rehabilitation 

17 services for students with disabilities, in18 cluding the coordination of services de19 signed to facilitate the transition of such 

20 students from the receipt of educational 

21 services in school to the receipt of voca22 tional rehabilitation services under this 

23 title or to postsecondary education or em24 ployment;’’. 
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1 (c) SERVICES FOR STUDENTS WITH DISABILITIES.— 

2 Section 101(a) of the Rehabilitation Act of 1973 (29 

3 U.S.C. 721(a)) is further amended by adding at the end 

4 the following: 

5 ‘‘(25) SERVICES FOR STUDENTS WITH DISABIL6 ITIES.—The State plan for a transition services ex7 pansion year shall provide an assurance satisfactory 

8 to the Secretary that the State— 

9 ‘‘(A) has developed and implemented strat10 egies to address the needs identified in the as11 sessment described in paragraph (15), and 

12 achieve the goals and priorities identified by the 

13 State, to improve and expand vocational reha14 bilitation services for students with disabilities 

15 on a statewide basis in accordance with para16 graph (15); and 

17 ‘‘(B) from funds reserved under section 

18 110A, shall carry out programs or activities de19 signed to improve and expand vocational reha20 bilitation services for students with disabilities 

21 that— 

22 ‘‘(i) facilitate the transition of the stu23 dents with disabilities from the receipt of 

24 educational services in school, to the re25 ceipt of vocational rehabilitation services 
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1 under this title, including, at a minimum, 

2 those services specified in the interagency 

3 agreement required in paragraph (11)(D); 

4 ‘‘(ii) improve the achievement of post5 school goals of students with disabilities, 

6 including improving the achievement 

7 through participation (as appropriate when 

8 vocational goals are discussed) in meetings 

9 regarding individualized education pro10 grams developed under section 614 of the 

11 Individuals with Disabilities Education Act 

12 (20 U.S.C. 1414); 

13 ‘‘(iii) provide vocational guidance, ca14 reer exploration services, and job search 

15 skills and strategies and technical assist16 ance to students with disabilities; 

17 ‘‘(iv) support the provision of training 

18 and technical assistance to State and local 

19 educational agency and designated State 

20 agency personnel responsible for the plan21 ning and provision of services to students 

22 with disabilities; and 

23 ‘‘(v) support outreach activities to stu24 dents with disabilities who are eligible for, 

25 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);’’; 

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 ‘‘(B) In a transition services expansion year, 

23 services for groups of individuals with disabilities 

24 who meet the requirements of clauses (i) and (iii) of 

25 section 7(35)(A), including services described in 

26 clauses (i), (ii), (iii), and (v) of section 
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1 101(a)(25)(B), to assist in the transition from 

2 school to post-school activities.’’; and 

3 (3) in subsection (b) by inserting at the end, 

4 the following: 

5 ‘‘(7) The establishment, development, or im6 provement of assistive technology demonstration, 

7 loan, reutilization, or financing programs in coordi8 nation with activities authorized under the Assistive 

9 Technology Act of 1998 (29. U.S.C. 3001), as 

10 amended, to promote access to assistive technology 

11 for individuals with disabilities and employers.’’. 

12 SEC. 407. STANDARDS AND INDICATORS. 

13 Section 106(a) of the Rehabilitation Act of 1973 (29 

14 U.S.C. 726(a)) is amended by striking paragraph (1)(C) 

15 and all that follows through paragraph (2) and inserting 

16 the following: 

17 ‘‘(2) MEASURES.—The standards and indica18 tors shall include outcome and related measures of 

19 program performance that— 

20 ‘‘(A) facilitate the accomplishment of the 

21 purpose and policy of this title; 

22 ‘‘(B) to the maximum extent practicable, 

23 are consistent with the core indicators of per24 formance, and corresponding State adjusted lev25 els of performance, established under section 
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1 136(b) of the Workforce Investment Act of 

2 1998 (29 U.S.C. 2871(b)); and 

3 ‘‘(C) include measures of the program’s 

4 performance with respect to the transition to 

5 post-school vocational activities, and achieve6 ment of the post-school vocational goals, of stu7 dents with disabilities served under the pro8 gram.’’. 

9 SEC. 408. RESERVATION FOR EXPANDED TRANSITION 

10 SERVICES. 

11 The Rehabilitation Act of 1973 is amended by insert12 ing after section 110 (29 U.S.C. 730) the following: 

13 ‘‘SEC. 110A. RESERVATION FOR EXPANDED TRANSITION 

14 SERVICES. 

15 ‘‘(a) RESERVATION.—From the State allotment 

16 under section 110 in a transition services expansion year, 

17 each State shall reserve an amount calculated by the Di18 rector under subsection (b) to carry out programs and ac19 tivities under sections 101(a)(25)(B) and 103(b)(6). 

20 ‘‘(b) CALCULATION.—The Director shall calculate the 

21 amount to be reserved for such programs and activities 

22 for a fiscal year by each State by multiplying $50,000,000 

23 by the percentage determined by dividing— 

24 ‘‘(1) the amount allotted to that State under 

25 section 110 for the prior fiscal year, by 
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1 ‘‘(2) the total amount allotted to all States 

2 under section 110 for that prior fiscal year.’’. 

3 SEC. 409. CLIENT ASSISTANCE PROGRAM. 

4 Section 112(e)(1) of the Rehabilitation Act of 1973 

5 (29 U.S.C. 732(e)(1)) is amended by redesignating sub6 paragraph (D) as subparagraph (E) and inserting after 

7 subparagraph (C) the following: 

8 ‘‘(D) The Secretary shall make grants to the protec9 tion and advocacy system serving the American Indian 

10 Consortium to provide services in accordance with this sec11 tion. The amount of such grants shall be the same as pro12 vided to territories under this subsection. ’’. 

13 SEC. 410. PROTECTION AND ADVOCACY OF INDIVIDUAL 

14 RIGHTS. 

15 Section 509(g)(2) of the Rehabilitation Act of 1973 

16 (29 U.S.C. 794e(g)(2)) is amended by striking ‘‘was paid’’ 

17 and inserting ‘‘was paid, except that program income gen18 erated from such amount shall remain available to such 

19 system for one additional fiscal year’’. 

20 SEC. 411. CHAIRPERSON. 

21 Section 705(b)(5) of the Rehabilitation Act of 1973 

22 (29 U.S.C. 796d(b)(5)) is amended to read as follows: 

23 ‘‘(5) CHAIRPERSON.—The Council shall select a 

24 chairperson from among the voting membership of 

25 the Council.’’. 
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1 SEC. 412. AUTHORIZATIONS OF APPROPRIATIONS. 

2 The Rehabilitation Act of 1973 is further amended— 

3 (1) in section 100(b)(1) by striking ‘‘fiscal 

4 years 1999 through 2003’’ and inserting ‘‘fiscal 

5 years 2006 through 2011’’; 

6 (2) in section 100(d)(1)(B) by striking ‘‘fiscal 

7 year 2003’’ and inserting ‘‘fiscal year 2011’’; 

8 (3) in section 110(c) by amending paragraph 

9 (2) to read as follows: 

10 ‘‘(2) The sum referred to in paragraph (1) shall 

11 be, as determined by the Secretary, not less than 1 

12 percent and not more than 1.5 percent of the 

13 amount referred to in paragraph (1) for each of fis14 cal years 2003 through 2011.’’; 

15 (4) in section 112(h) by striking ‘‘fiscal years 

16 1999 through 2003’’ and inserting ‘‘fiscal years 

17 2006 through 2011’’; 

18 (5) in section 201(a) by striking ‘‘fiscal years 

19 1999 through 2003’’ each place it appears and in20 serting ‘‘fiscal years 2006 through 2011’’; 

21 (6) in section 302(i) by striking ‘‘fiscal years 

22 1999 through 2003’’ and inserting ‘‘fiscal years 

23 2006 through 2011’’; 

24 (7) in section 303(e) by striking ‘‘fiscal years 

25 1999 through 2003’’ and inserting ‘‘fiscal years 

26 2006 through 2011’’; 
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1 (8) in section 304(b) by striking ‘‘fiscal years 

2 1999 through 2003’’ and inserting ‘‘fiscal years 

3 2006 through 2011’’; 

4 (9) in section 305(b) by striking ‘‘fiscal years 

5 1999 through 2003’’ and inserting ‘‘fiscal years 

6 2006 through 2011’’; 

7 (10) in section 405 by striking ‘‘fiscal years 

8 1999 through 2003’’ and inserting ‘‘fiscal years 

9 2006 through 2011’’; 

10 (11) in section 502(j) by striking ‘‘fiscal years 

11 1999 through 2003’’ and inserting ‘‘fiscal years 

12 2006 through 2011’’; 

13 (12) in section 509(l) by striking ‘‘fiscal years 

14 1999 through 2003’’ and inserting ‘‘fiscal years 

15 2006 through 2011’’; 

16 (13) in section 612 by striking ‘‘fiscal years 

17 1999 through 2003’’ and inserting ‘‘fiscal years 

18 2006 through 2011’’; 

19 (14) in section 628 by striking ‘‘fiscal years 

20 1999 through 2003’’ and inserting ‘‘fiscal years 

21 2006 through 2011’’; 

22 (15) in section 714 by striking ‘‘fiscal years 

23 1999 through 2003’’ and inserting ‘‘fiscal years 

24 2006 through 2011’’; 
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1 (16) in section 727 by striking ‘‘fiscal years 

2 1999 through 2003’’ and inserting ‘‘fiscal years 

3 2006 through 2011’’; and 

4 (17) in section 753 by striking ‘‘fiscal years 

5 1999 through 2003’’ and inserting ‘‘fiscal years 

6 2006 through 2011’’. 

7 SEC. 413. CONFORMING AMENDMENT. 

8 Section 1(b) of the Rehabilitation Act of 1973 is 

9 amended by inserting after the item relating to section 

10 110 the following: 

‘‘Sec. 110A. Reservation for expanded transition services.’’. 

11 SEC. 414. HELEN KELLER NATIONAL CENTER ACT. 

12 (a) GENERAL AUTHORIZATION OF APPROPRIA13 TIONS.—The first sentence of section 205(a) of the Helen 

14 Keller National Center Act (29 U.S.C. 1904(a)) is amend15 ed by striking ‘‘1999 through 2003’’ and inserting ‘‘2006 

16 through 2011’’. 

17 (b) HELEN KELLER NATIONAL CENTER FEDERAL

18 ENDOWMENT FUND.—The first sentence of section 

19 208(h) of such Act (29 U.S.C. 1907(h)) is amended by 

20 striking ‘‘1999 through 2003’’ and inserting ‘‘2006 

21 through 2011’’. 
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1 TITLE V—TRANSITION AND 

2 EFFECTIVE DATE 

3 SEC. 501. TRANSITION PROVISIONS. 

4 The Secretary of Labor shall take such actions as the 

5 Secretary determines to be appropriate to provide for the 

6 orderly implementation of this Act. 

7 SEC. 502. EFFECTIVE DATE. 

8 Except as otherwise provided in this Act, this Act and 

9 the amendments made by this Act, shall take effect on 

10 the date of enactment of this Act. 

Passed the House of Representatives March 2, 

2005. 

Attest: JEFF TRANDAHL, 

Clerk.