IB 

Union Calendar No. 4

109TH CONGRESS 

1ST SESSION H. R. 27

[Report No. 109–9] 

To enhance the workforce investment system of the Nation by strengthening 

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

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

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

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 4, 2005

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

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

FEBRUARY 25, 2005

Additional sponsors: Mr. NORWOOD, Mrs. MILLER of Michigan, Mr. HALL, 

Mrs. CAPITO, Mrs. DRAKE, Mr. ENGLISH of Pennsylvania, Mr. 

FORTUN ̃O, Mr. RADANOVICH, Mr. SESSIONS, Mr. BOUSTANY, and Mr. 

LATHAM

FEBRUARY 25, 2005

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on January 4, 2005] 

A BILL

To enhance the workforce investment system of the Nation 

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

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

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

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. 
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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. 

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 of 

4 an amendment to, or repeal of, a section or other provision, 

5 the amendment or repeal shall be considered to be made 

6 to a section or other provision of the Workforce Investment 

7 Act of 1998 (20 U.S.C. 9201 et seq.). 
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1 TITLE I—AMENDMENTS TO 

2 TITLE I OF THE WORKFORCE 

3 INVESTMENT ACT OF 1998

4 SEC. 101. DEFINITIONS. 

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

6 (1) by striking paragraphs (13) and (24) and re7 designating paragraphs (1) through (12) as para8 graphs (3) through (14), and paragraphs (14) through 

9 (23) as paragraphs (15) through (24), respectively; 

10 (2) by inserting after ‘‘In this title:’’ the fol11 lowing new paragraphs: 

12 ‘‘(1) ACCRUED EXPENDITURES.—The term ‘ac13 crued expenditures’ means charges incurred by recipi14 ents of funds under this title for a given period re15 quiring the provision of funds for goods or other tan16 gible property received; services performed by employ17 ees, contractors, subgrantees, and other payees; and 

18 other amounts becoming owed under programs as19 sisted under this title for which no current services or 

20 performance is required, such as annuities, insurance 

21 claims, and other benefit payments. 

22 ‘‘(2) ADMINISTRATIVE COSTS.—The term ‘admin23 istrative costs’ means expenditures incurred by State 

24 and local workforce investment boards, direct recipi25 ents (including State grant recipients under subtitle 
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1 B and recipients of awards under subtitle D), local 

2 grant recipients, local fiscal agents or local grant sub3 recipients, and one-stop operators in the performance 

4 of administrative functions and in carrying out ac5 tivities under this title which are not related to the 

6 direct provision of workforce investment services (in7 cluding services to participants and employers). Such 

8 costs include both personnel and non-personnel and 

9 both direct and indirect.’’; 

10 (3) in paragraph (6) (as so redesignated), by in11 serting ‘‘(or such other level as the Governor may es12 tablish)’’ after ‘‘8th grade level’’; 

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

14 (A) in subparagraph (B), by striking ‘‘and’’ 

15 after the semicolon; 

16 (B) in subparagraph (C)—

17 (i) by striking ‘‘not less than 50 per18 cent of the cost of the training’’ and insert19 ing ‘‘a significant portion of the cost of 

20 training, as determined by the local board’’; 

21 and 

22 (ii) by striking the period and insert23 ing ‘‘; and’’; and 

24 (C) by adding at the end the following: 
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1 ‘‘(D) in the case of customized training 

2 with an employer in multiple local areas in the 

3 State, for which such employer pays a signifi4 cant portion of the cost of the training, as deter5 mined by the Governor.’’; 

6 (5) in paragraph (11)(A)(ii)(II) (as so redesig7 nated) by striking ‘‘section 134(c)’’ and inserting 

8 ‘‘section 121(e)’’; 

9 (6) in paragraph (14)(A) (as so redesignated) by 

10 striking ‘‘section 122(e)(3)’’ and inserting ‘‘section 

11 122’’; 

12 (7) in paragraph (25)—

13 (A) in subparagraph (B), by striking ‘‘high14 er of—’’ and all that follows through clause (ii) 

15 and inserting ‘‘poverty line for an equivalent pe16 riod;’’; and 

17 (B) by redesignating subparagraphs (D) 

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

19 respectively, and inserting after subparagraph 

20 (C) the following: 

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

22 reduced price lunch under the Richard B. Russell 

23 National School Lunch Act (42 U.S.C. 1751 et 

24 seq.);’’; 
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1 (8) in paragraph (32) by striking ‘‘the Republic 

2 of the Marshall Islands, the Federated States of Mi3 cronesia,’’; and 

4 (9) by striking paragraph (33) and redesig5 nating paragraphs (34) through (53) as paragraphs 

6 (33) through (52), respectively. 

7 SEC. 102. PURPOSE. 

8 Section 106 (29 U.S.C. 2811) is amended by inserting 

9 at the end the following: ‘‘It is also the purpose of this sub10 title to provide workforce investment activities in a manner 

11 that promotes the informed choice of participants and ac12 tively involves participants in decisions affecting their par13 ticipation in such activities.’’. 

14 SEC. 103. STATE WORKFORCE INVESTMENT BOARDS. 

15 (a) MEMBERSHIP.—

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

17 2821(b)) is amended—

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

19 as follows: 

20 ‘‘(C) representatives appointed by the Gov21 ernor, who are—

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

23 with responsibility for the programs and ac24 tivities that are described in section 121(b) 

25 and carried out by one-stop partners; 
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1 ‘‘(II) in any case in which no lead 

2 State agency official has responsibility for 

3 such a program or activity, a representative 

4 in the State with expertise relating to such 

5 program or activity; and 

6 ‘‘(III) if not included under subclause 

7 (I), the director of the State unit, defined in 

8 section 7(8)(B) of the Rehabilitation Act of 

9 1973 (29 U.S.C. 705(8)(B)) except that in 

10 a State that has established 2 or more des11 ignated State units to administer the voca12 tional rehabilitation program, the board 

13 representative shall be the director of the 

14 designated State unit that serves the most 

15 individuals with disabilities in the State; 

16 ‘‘(ii) the State agency officials respon17 sible for economic development; 

18 ‘‘(iii) representatives of business in the 

19 State who—

20 ‘‘(I) are owners of businesses, chief 

21 executive or operating officers of busi22 nesses, and other business executives or 

23 employers with optimum policy mak24 ing or hiring authority, including 
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1 members of local boards described in 

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

3 ‘‘(II) represent businesses with 

4 employment opportunities that reflect 

5 employment opportunities in the State; 

6 and 

7 ‘‘(III) are appointed from among 

8 individuals nominated by State busi9 ness organizations and business trade 

10 associations; 

11 ‘‘(iv) chief elected officials (rep12 resenting both cities and counties, where ap13 propriate); 

14 ‘‘(v) representatives of labor organiza15 tions, who have been nominated by State 

16 labor federations; and 

17 ‘‘(vi) such other representatives and 

18 State agency officials as the Governor may 

19 designate.’’; and 

20 (B) in paragraph (3), by striking ‘‘para21 graph (1)(C)(i)’’ and inserting ‘‘paragraph 

22 (1)(C)(iii)’’. 

23 (2) CONFORMING AMENDMENT.—Section 111(c) 

24 (29 U.S.C 2811(c)) is amended by striking ‘‘sub-
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1 section (b)(1)(C)(i)’’ and inserting ‘‘subsection 

2 (b)(1)(C)(iii)’’. 

3 (b) FUNCTIONS.—Section 111(d) (29 U.S.C. 2811(d)) 

4 is amended—

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

6 134(c)’’ and inserting ‘‘section 121(e)’’; 

7 (2) by amending paragraph (3) to read as fol8 lows: 

9 ‘‘(3) development and review of statewide policies 

10 affecting the integrated provision of services through 

11 the one-stop delivery system described in section 121, 

12 including—

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

14 issuance of, certifications of one-stop centers; 

15 ‘‘(B) the criteria for the allocation of one16 stop center infrastructure funding under section 

17 121(h), and oversight of the use of such funds; 

18 ‘‘(C) approaches to facilitating equitable 

19 and efficient cost allocation in one-stop delivery 

20 systems; and 

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

22 statewide objectives for, and enhance the per23 formance of, one-stop delivery systems within the 

24 State;’’; 
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1 (3) in paragraph (4), by inserting ‘‘and the de2 velopment of State criteria relating to the appoint3 ment and certification of local boards under section 

4 117’’ after ‘‘section 116’’; 

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

6 128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec7 tions 128(b)(3) and 133(b)(3)’’; and 

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

9 and inserting ‘‘section 136(i)’’. 

10 (c) ELIMINATION OF ALTERNATIVE ENTITY AND PRO11 VISION OF AUTHORITY TO HIRE STAFF.—Section 111(e) 

12 (29 U.S.C. 2821(e)) is amended to read as follows: 

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

14 may hire staff to assist in carrying out the functions de15 scribed in subsection (d).’’. 

16 SEC. 104. STATE PLAN. 

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

18 2822(a)) is amended by striking ‘‘5-year strategy’’ and in19 serting ‘‘2-year strategy’’. 

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

21 amended—

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

23 128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec24 tions 128(b)(3) and 133(b)(3)’’; 
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1 (2) in paragraph (14), by striking ‘‘section 

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

3 (3) in paragraph (17)(A)—

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

5 (B) by amending clause (iv) to read as fol6 lows: 

7 ‘‘(iv) how the State will serve the em8 ployment and training needs of dislocated 

9 workers (including displaced homemakers 

10 and formerly self-employed and 

11 transitioning farmers, ranchers, and fisher12 man) low income individuals (including re13 cipients of public assistance), individuals 

14 with limited English proficiency, homeless 

15 individuals, ex-offenders, individuals train16 ing for nontraditional employment, and 

17 other individuals with multiple barriers to 

18 employment (including older individuals); 

19 and’’; and 

20 (C) by inserting after clause (iv) the fol21 lowing: 

22 ‘‘(v) how the State will serve the em23 ployment and training needs of individuals 

24 with disabilities, consistent with section 188 

25 and Executive Order 13217 (42 U.S.C. 
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1 12131 note; relating to community-based al2 ternatives for individuals with disabilities) 

3 including the provision of outreach, intake, 

4 assessments, and service delivery, the devel5 opment of performance measures, the train6 ing of staff, and other aspects of accessi7 bility to program services, consistent with 

8 sections 504 and 508 of the Rehabilitation 

9 Act of 1973; and’’; 

10 (4) in paragraph (18)(D), by striking ‘‘youth op11 portunity grants’’ and inserting ‘‘youth challenge 

12 grants’’; and 

13 (5) by adding at the end the following new para14 graphs: 

15 ‘‘(19) a description of the methodology for deter16 mining one-stop partner program contributions for 

17 the cost of the infrastructure of one-stop centers under 

18 section 121(h)(1) and of the formula for allocating 

19 such infrastructure funds to local areas under section 

20 121(h)(3); and 

21 ‘‘(20) a description of any programs and strate22 gies the State will utilize to meet the needs of busi23 nesses in the State, including small businesses, which 

24 may include providing incentives and technical as-
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1 sistance to assist local areas in engaging employers in 

2 local workforce development activities.’’. 

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

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

5 and inserting ‘‘2-year period’’. 

6 SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS. 

7 (a) DESIGNATION OF AREAS.—

8 (1) CONSIDERATIONS.—Section 116(a)(1)(B) (29 

9 U.S.C. 2831(a)(1)(B)) is amended by adding at the 

10 end the following clause: 

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

12 areas will promote efficiency in the admin13 istration and provision of services.’’. 

14 (2) AUTOMATIC DESIGNATION.—Section 

15 116(a)(2) (29 U.S.C. 2831(a)(2)) is amended to read 

16 as follows: 

17 ‘‘(2) AUTOMATIC DESIGNATION.—

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

19 subparagraph (B) of this paragraph and sub20 section (b), the Governor shall approve a request 

21 for designation as a local area from—

22 ‘‘(i) any unit of general local govern23 ment with a population of 500,000 or more; 

24 and 
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1 ‘‘(ii) an area served by a rural con2 centrated employment program grant re3 cipient that served as a service delivery 

4 area or substate area under the Job Train5 ing Partnership Act (29 U.S.C. 1501 et 

6 seq.), 

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

8 under section 112 if such request is made not 

9 later than the date of the submission of the State 

10 plan. 

11 ‘‘(B) CONTINUED DESIGNATION BASED ON

12 PERFORMANCE.—The Governor may deny a re13 quest for designation submitted pursuant to sub14 paragraph (A) if such unit of government was 

15 designated as a local area for the preceding 2-

16 year period covered by a State plan and the 

17 Governor determines that such local area did not 

18 perform successfully during such period.’’. 

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

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

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

22 designated region to prepare a single regional plan that in23 corporates the elements of the local plan under section 118 

24 and that is submitted and approved in lieu of separate local 

25 plans under such section.’’. 
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1 SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS. 

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

3 2832(b)(2)(A)) is amended—

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

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

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

7 after ‘‘local area’’; 

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

9 ‘‘(ii) a superintendent of the local sec10 ondary school system, an administrator of 

11 an entity providing adult education and 

12 literacy activities that is not a one-stop 

13 partner designated under section 

14 121(b)(1)(B), and the president or chief ex15 ecutive officer of a postsecondary edu16 cational institution serving the local area 

17 (including community colleges, where such 

18 entities exist);’’; 

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

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

21 (4) by striking clause (vi). 

22 (b) AUTHORITY OF BOARD MEMBERS.—Section 

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

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

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

4 (c) FUNCTIONS.—Section 117(d) (29 U.S.C. 2832(d)) 

5 is amended—

6 (1) in paragraph (2)(B), by striking ‘‘by award7 ing grants’’ and all that follows through ‘‘youth coun8 cil’’; and 

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

10 the appropriate use and management of the funds 

11 provided under this title for such programs, activities, 

12 and system’’ after ‘‘area’’. 

13 (d) AUTHORITY TO ESTABLISH COUNCILS AND ELIMI14 NATION OF REQUIREMENT FOR YOUTH COUNCILS.—Section 

15 117(h) (29 U.S.C. 2832(h)) is amended to read as follows: 

16 ‘‘(h) ESTABLISHMENT OF COUNCILS.—The local board 

17 may establish councils to provide information and advice 

18 to assist the local board in carrying out activities under 

19 this title. Such councils may include a council composed 

20 of one-stop partners to advise the local board on the oper21 ation of the one-stop delivery system, a youth council com22 posed of experts and stakeholders in youth programs to ad23 vise the local board on activities for youth, and such other 

24 councils as the local board determines are appropriate.’’. 
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1 (e) REPEAL OF ALTERNATIVE ENTITY PROVISION.—

2 Section 117 (29 U.S.C. 2832) is further amended by strik3 ing subsection (i). 

4 SEC. 107. LOCAL PLAN. 

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

6 2833(a)) is amended by striking ‘‘5-year’’ and inserting ‘‘2-

7 year’’. 

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

9 amended—

10 (1) by amending paragraph (2) to read as fol11 lows: 

12 ‘‘(2) a description of the one-stop delivery system 

13 to be established or designated in the local area, in14 cluding a description of how the local board will en15 sure the continuous improvement of eligible providers 

16 of services through the system and ensure that such 

17 providers meet the employment needs of local employ18 ers and participants;’’; 

19 (2) in paragraph (4), by striking ‘‘and dis20 located worker’’; 

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

22 inserting a semicolon; and 

23 (4) by redesignating paragraph (10) as para24 graph (12) and inserting after paragraph (9) the fol25 lowing: 
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1 ‘‘(10) a description of the strategies and services 

2 that will be initiated in the local area to engage em3 ployers, including small employers, in workforce de4 velopment activities; 

5 ‘‘(11) how the local area will serve the employ6 ment and training needs of individuals with disabil7 ities, consistent with section 188 and Executive Order 

8 13217 (42 U.S.C. 12131 note) including the provision 

9 of outreach, intake, assessments, and service delivery, 

10 the development of performance measures, the train11 ing of staff, and other aspects of accessibility to pro12 gram services, consistent with sections 504 and 508 of 

13 the Rehabilitation Act of 1973; and’’. 

14 SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYS15 TEMS. 

16 (a) ONE-STOP PARTNERS.—

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

18 (29 U.S.C. 2841(b)(1)) is amended—

19 (A) in subparagraph (B)—

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

21 (ii) by redesignating clauses (iii) and 

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

23 and by redesignating clauses (vi) through 

24 (xii) as clauses (iv) through (x), respec25 tively; 
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1 (iii) in clause (ix) (as so redesignated), 

2 by striking ‘‘and’’ at the end; 

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

4 by striking the period and inserting ‘‘; 

5 and’’; and 

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

7 redesignated) the following: 

8 ‘‘(xi) programs authorized under part 

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

10 U.S.C. 601 et. seq.), subject to subparagraph 

11 (C).’’; and 

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

13 following: 

14 ‘‘(C) DETERMINATION BY THE GOVERNOR.—

15 The program referred to in clause (xi) of sub16 paragraph (B) shall be included as a required 

17 partner for purposes of this title in a State un18 less the Governor of the State notifies the Sec19 retary and the Secretary of Health and Human 

20 Services in writing of a determination by the 

21 Governor not to include such programs as re22 quired partners for purposes of this title in the 

23 State.’’. 

24 (2) ADDITIONAL PARTNERS.—Section 

25 121(b)(2)(B) (29 U.S.C. 2841(b)(2)(B)) is amended—
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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 Independent 

7 Living Councils, and Independent Living 

8 Centers.’’. 

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

10 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 from 

15 section 134, redesignating such subsection as sub16 section (e), and inserting such subsection (as so redes17 ignated) after subsection (d) of section 121; and 

18 (4) by amending subsection (e) of section 121 (as 

19 moved and redesignated by paragraph (2))—

20 (A) in paragraph (1)(A), by striking ‘‘sub21 section (d)(2)’’ and inserting ‘‘section 134(c)(2)’’; 

22 (B) in paragraph (1)(B)—

23 (i) by striking ‘‘subsection (d)’’ and in24 serting ‘‘section 134(c)’’; and 
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1 (ii) by striking ‘‘subsection (d)(4)(G)’’ 

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

3 (C) in paragraph (1)(C), by striking ‘‘sub4 section (e)’’ and inserting ‘‘section 134(d)’’; 

5 (D) in paragraph (1)(D), by striking ‘‘sec6 tion 121(b)’’ and inserting ‘‘subsection (b)’’; and 

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

8 as follows: 

9 ‘‘(E) shall provide access to the information 

10 described in section 15(e) of the Wagner-Peyser 

11 Act (29 U.S.C. 49l-2(e)).’’. 

12 (c) CERTIFICATION AND FUNDING OF ONE-STOP CEN13 TERS.—Section 121 (as amended by subsection (b)) is fur14 ther amended by adding at the end the following new sub15 sections: 

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

17 ‘‘(1) IN GENERAL.—The State board shall estab18 lish procedures and criteria for periodically certifying 

19 one-stop centers for the purpose of awarding the one20 stop infrastructure funding described in subsection 

21 (h). 

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

23 under this subsection shall include minimum stand24 ards relating to the scope and degree of service inte25 gration achieved by the centers involving the pro-
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1 grams provided by the one-stop partners, and how the 

2 centers ensure that such providers meet the employ3 ment needs of local employers and participants. 

4 ‘‘(3) EFFECT OF CERTIFICATION.—One-stop cen5 ters certified under this subsection shall be eligible to 

6 receive the infrastructure grants authorized under 

7 subsection (h). 

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

9 ‘‘(1) PARTNER CONTRIBUTIONS.—

10 ‘‘(A) PROVISION OF FUNDS.—Notwith11 standing any other provision of law, as deter12 mined under subparagraph (B), a portion of the 

13 Federal funds provided to the State and areas 

14 within the State under the Federal laws author15 izing the one-stop partner programs described in 

16 subsection (b)(1)(B) and participating addi17 tional partner programs described in (b)(2)(B) 

18 for a fiscal year shall be provided to the Gov19 ernor by such programs to carry out this sub20 section. 

21 ‘‘(B) DETERMINATION OF GOVERNOR.—Sub22 ject to subparagraph (C), the Governor, in con23 sultation with the State board, shall determine 

24 the portion of funds to be provided under sub25 paragraph (A) by each one-stop partner and in 
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1 making such determination shall consider the 

2 proportionate use of the one-stop centers by each 

3 partner, the costs of administration for purposes 

4 not related to one-stop centers for each partner, 

5 and other relevant factors described in para6 graph (3). 

7 ‘‘(C) LIMITATIONS.—

8 ‘‘(i) PROVISION FROM ADMINISTRATIVE

9 FUNDS.—The funds provided under this 

10 paragraph by each one-stop partner shall be 

11 provided only from funds available for the 

12 costs of administration under the program 

13 administered by such partner, and shall be 

14 subject to the limitations with respect to the 

15 portion of funds under such programs that 

16 may be used for administration. 

17 ‘‘(ii) FEDERAL DIRECT SPENDING PRO18 GRAMS.—Programs that are Federal direct 

19 spending under section 250(c)(8) of the Bal20 anced Budget and Emergency Deficit Con21 trol Act of 1985 (2 U.S.C. 900(c)(8)) shall 

22 not, for purposes of this paragraph, be re23 quired to provide an amount in excess of 

24 the amount determined to be equivalent to 
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1 the proportionate use of the one-stop centers 

2 by such programs in the State. 

3 ‘‘(iii) NATIVE AMERICAN PROGRAMS.—

4 Native American programs established 

5 under section 166 shall not be subject to the 

6 provisions of this subsection. The method for 

7 determining the appropriate portion of 

8 funds to be provided by such Native Amer9 ican programs to pay for the costs of infra10 structure of a one-stop center certified under 

11 subsection (g) shall be determined as part of 

12 the development of the memorandum of un13 derstanding under subsection (c) for the 

14 one-stop center and shall be stated in the 

15 memorandum. 

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

17 funds provided under paragraph (1), the Governor 

18 shall allocate funds to local areas in accordance with 

19 the formula established under paragraph (3) for the 

20 purposes of assisting in paying the costs of the infra21 structure of One-Stop centers certified under sub22 section (g). 

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

24 shall develop a formula to be used by the Governor to 

25 allocate the funds described in paragraph (1). The 
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1 formula shall include such factors as the State board 

2 determines are appropriate, which may include fac3 tors such as the number of centers in the local area 

4 that have been certified, the population served by such 

5 centers, and the performance of such centers. 

6 ‘‘(4) COSTS OF INFRASTRUCTURE.—For purposes 

7 of this subsection, the term ‘costs of infrastructure’ 

8 means the nonpersonnel costs that are necessary for 

9 the general operation of a one-stop center, including 

10 the rental costs of the facilities, the costs of utilities 

11 and maintenance, equipment (including adaptive 

12 technology for individuals with disabilities), strategic 

13 planning activities for the center, and common out14 reach activities. 

15 ‘‘(i) OTHER FUNDS.—

16 ‘‘(1) IN GENERAL.—In addition to the funds pro17 vided to carry out subsection (h), a portion of funds 

18 made available under Federal law authorizing the 

19 one-stop partner programs described in subsection 

20 (b)(1)(B) and participating partner programs de21 scribed in subsection (b)(2)(B), or the noncash re22 sources available under such programs shall be used 

23 to pay the costs relating to the operation of the one24 stop delivery system that are not paid for from the 

25 funds provided under subsection (h), to the extent not 
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1 inconsistent with the Federal law involved includ2 ing—

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

4 of the funds provided under subsection (h); 

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

6 the costs of infrastructure; and 

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

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

10 method for determining the appropriate portion of 

11 funds and noncash resources to be provided by each 

12 program under paragraph (1) shall be determined as 

13 part of the memorandum of understanding under sub14 section (c). The State board shall provide guidance to 

15 facilitate the determination of appropriate allocation 

16 of the funds and noncash resources in local areas.’’. 

17 SEC. 109. ELIGIBLE PROVIDERS OF TRAINING SERVICES. 

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

19 follows: 

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

21 TRAINING SERVICES. 

22 ‘‘(a) IN GENERAL.—The Governor shall establish cri23 teria and procedures regarding the eligibility of providers 

24 of training services described in section 134(c)(4) to receive 
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1 funds provided under section 133(b) for the provision of 

2 such training services. 

3 ‘‘(b) CRITERIA.—

4 ‘‘(1) IN GENERAL.—The criteria established pur5 suant to subsection (a) shall take into account the 

6 performance of providers of training services with re7 spect to the indicators described in section 136 or 

8 other appropriate indicators (taking into consider9 ation the characteristics of the population served and 

10 relevant economic conditions), and such other factors 

11 as the Governor determines are appropriate to ensure 

12 the quality of services, the accountability of providers, 

13 how the centers ensure that such providers meet the 

14 needs of local employers and participants, whether 

15 providers of training allow participants to attain a 

16 certification, certificate, or mastery, and the informed 

17 choice of participants under chapter 5. Such criteria 

18 shall require that the provider submit appropriate, 

19 accurate and timely information to the State for pur20 poses of carrying out subsection (d). The criteria shall 

21 also provide for periodic review and renewal of eligi22 bility under this section for providers of training 

23 services. The Governor may authorize local areas in 

24 the State to establish additional criteria or to modify 

25 the criteria established by the Governor under this 
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1 section for purposes of determining the eligibility of 

2 providers of training services to provide such services 

3 in the local area. 

4 ‘‘(2) LIMITATION.—In carrying out the require5 ments of this subsection, no personally identifiable in6 formation regarding a student, including Social Secu7 rity number, student identification number, or other 

8 identifier, may be disclosed without the prior written 

9 consent of the parent or eligible student in compliance 

10 with section 444 of the General Education Provisions 

11 Act (20 U.S.C. 1232g). 

12 ‘‘(c) PROCEDURES.—The procedures established under 

13 subsection (a) shall identify the application process for a 

14 provider of training services to become eligible to receive 

15 funds under section 133(b) for the provision of training 

16 services, and identify the respective roles of the State and 

17 local areas in receiving and reviewing applications and in 

18 making determinations of eligibility based on the criteria 

19 established under this section. The procedures shall also es20 tablish a process for a provider of training services to ap21 peal a denial or termination of eligibility under this section 

22 that includes an opportunity for a hearing and prescribes 

23 appropriate time limits to ensure prompt resolution of the 

24 appeal. 
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1 ‘‘(d) INFORMATION TO ASSIST PARTICIPANTS IN

2 CHOOSING PROVIDERS.—

3 ‘‘(1) IN GENERAL.—In order to facilitate and as4 sist participants under chapter 5 in choosing pro5 viders of training services, the Governor shall ensure 

6 that an appropriate list or lists of providers deter7 mined eligible under this section in the State, accom8 panied by such information as the Governor deter9 mines is appropriate, is provided to the local boards 

10 in the State to be made available to such participants 

11 and to members of the public through the one-stop de12 livery system in the State. 

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

14 programs under the Act of August 16, 1937 (com15 monly known as the ‘National Apprenticeship Act’, 

16 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.) shall 

17 be included on the list of eligible providers described 

18 in paragraph (1) for so long as such entity remains 

19 certified by the Department of Labor. 

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

21 may enter into agreements, on a reciprocal basis, to permit 

22 eligible providers of training services to accept individual 

23 training accounts provided in another State. 

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

25 procedures, and information required under this section, the 
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1 Governor shall solicit and take into consideration the rec2 ommendations of local boards and providers of training 

3 services within the State. 

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

5 the development of the criteria, procedures, and information 

6 required under this section, the Governor shall provide an 

7 opportunity for interested members of the public, including 

8 representatives of business and labor organizations, to sub9 mit comments regarding such criteria, procedures, and in10 formation. 

11 ‘‘(h) ON-THE-JOB TRAINING OR CUSTOMIZED TRAIN12 ING EXCEPTION.—

13 ‘‘(1) IN GENERAL.—Providers of on-the-job train14 ing or customized training shall not be subject to the 

15 requirements of subsections (a) through (g). 

16 ‘‘(2) COLLECTION AND DISSEMINATION OF INFOR17 MATION.—A one-stop operator in a local area shall 

18 collect such performance information from on-the-job 

19 training and customized training providers as the 

20 Governor may require, determine whether the pro21 viders meet such performance criteria as the Governor 

22 may require, and disseminate information identifying 

23 providers that meet the criteria as eligible providers, 

24 and the performance information, through the one25 stop delivery system. Providers determined to meet the 
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1 criteria shall be considered to be identified as eligible 

2 providers of training services.’’. 

3 SEC. 110. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 

4 (a) ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.—

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

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

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

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

9 shall award grants or contracts on a competitive basis to 

10 providers of youth activities identified based on the criteria 

11 in the State plan and shall conduct oversight with respect 

12 to such providers. 

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

14 or contracts on a sole-source basis if such board determines 

15 there are an insufficient number of eligible providers of 

16 training services in the local area involved (such as rural 

17 areas) for grants to be awarded on a competitive basis 

18 under subsection (a).’’. 

19 (b) CLERICAL AMENDMENT.—The table of contents in 

20 section 1(b) is amended by amending the item related to 

21 section 123 to read as follows:

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

22 SEC. 111. YOUTH ACTIVITIES. 

23 (a) STATE ALLOTMENTS.—

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

25 2852(a)) is amended to read as follows: 
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1 ‘‘(a) ALLOTMENT AMONG STATES.—

2 ‘‘(1) YOUTH ACTIVITIES.—

3 ‘‘(A) YOUTH CHALLENGE GRANTS.—

4 ‘‘(i) RESERVATION OF FUNDS.—Of the 

5 amount appropriated under section 137(a) 

6 for each fiscal year, the Secretary shall re7 serve 25 percent to provide youth challenge 

8 grants under section 169. 

9 ‘‘(ii) LIMITATION.—Notwithstanding 

10 clause (i), if the amount appropriated 

11 under section 137(a) for a fiscal year ex12 ceeds $1,000,000,000, the Secretary shall re13 serve $250,000,000 to provide youth chal14 lenge grants under section 169. 

15 ‘‘(B) OUTLYING AREAS AND NATIVE AMERI16 CANS.—

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

18 the amount to be reserved under subpara19 graph (A), of the remainder of the amount 

20 appropriated under section 137(a) for each 

21 fiscal year the Secretary shall—

‘‘(I) reserve not more than 1 22 ⁄4 of 

23 one percent of such amount to provide 

24 assistance to the outlying areas to 

25 carry out youth activities and state-
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1 wide workforce investment activities; 

2 and 

3 ‘‘(II) reserve not more than 1 and 

1 4 ⁄2 percent of such amount to provide 

5 youth activities under section 166 (re6 lating to Native Americans). 

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

8 Palau shall cease to be eligible to receive 

9 funding under this subparagraph upon en10 tering into an agreement for extension of 

11 United States educational assistance under 

12 the Compact of Free Association (approved 

13 by the Compact of Free Association Amend14 ments Act of 2003 (Public Law 108–188)) 

15 after the date of enactment of the Job 

16 Training Improvement Act of 2005. 

17 ‘‘(C) STATES.—

18 ‘‘(i) IN GENERAL.—Of the remainder of 

19 the amount appropriated under section 

20 137(a) for a fiscal year that is available 

21 after determining the amounts to be re22 served under subparagraphs (A) and (B), 

23 the Secretary shall allot—

24 ‘‘(I) the amount of the remainder 

25 that is less than or equal to the total 
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1 amount that was allotted to States for 

2 fiscal year 2005 under section 

3 127(b)(1)(C) of this Act (as in effect on 

4 the day before the date of enactment of 

5 the Job Training Improvement Act of 

6 2005) in accordance with the require7 ments of such section 127(b)(1)(C); and 

8 ‘‘(II) the amount of the remain9 der, if any, in excess of the amount re10 ferred to in subclause (I) in accordance 

11 with clause (ii). 

12 ‘‘(ii) FORMULAS FOR EXCESS

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

14 the amounts described in clause (i)(II)—

‘‘(I) 331 15 ⁄3 percent shall be allotted 

16 on the basis of the relative number of 

17 individuals in the civilian labor force 

18 who are ages 16–19 in each State, 

19 compared to the total number of indi20 viduals in the civilian labor force who 

21 are ages 16–19 in all States; 

‘‘(II) 331 22 ⁄3 percent shall be allot23 ted on the basis of the relative number 

24 of unemployed individuals in each 

25 State, compared to the total number of 
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1 unemployed individuals in all States; 

2 and 

‘‘(III) 331 3 ⁄3 percent shall be allot4 ted on the basis of the relative number 

5 of disadvantaged youth who are ages 

6 16 through 21 in each State, compared 

7 to the total number of disadvantaged 

8 youth who are ages 16 through 21 in 

9 all States. 

10 ‘‘(iii) MINIMUM AND MAXIMUM PER11 CENTAGES.—The Secretary shall ensure that 

12 no State shall receive an allotment for a fis13 cal year that is less than 90 percent or 

14 greater than 130 percent of the allotment 

15 percentage of that State for the preceding 

16 fiscal year. 

17 ‘‘(iv) SMALL STATE MINIMUM ALLOT18 MENT.—Subject to clause (iii), the Sec19 retary shall ensure that no State shall re20 ceive an allotment under this paragraph 

that is less than 3 21 ⁄10 of 1 percent of the 

22 amount available under subparagraph (A). 

23 ‘‘(2) DEFINITIONS.—For the purposes of para24 graph (1), the following definitions apply: 
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1 ‘‘(A) ALLOTMENT PERCENTAGE.—The term 

2 ‘allotment percentage’, used with respect to fiscal 

3 year 2006 or a subsequent fiscal year, means a 

4 percentage of the remainder described in para5 graph (1)(C)(i) that is received through an allot6 ment made under this subsection for the fiscal 

7 year. The term, with respect to fiscal year 2005, 

8 means the percentage of the amounts allotted to 

9 States under this chapter (as in effect on the day 

10 before the date of enactment of the Job Training 

11 Improvement Act of 2005) that is received by the 

12 State involved for fiscal year 2005. 

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

14 ‘disadvantaged youth’ means an individual who 

15 is age 16 through 21 who received an income, or 

16 is a member of a family that received a total 

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

18 does not exceed the poverty line. 

19 ‘‘(3) SPECIAL RULE.—For purposes of the for20 mulas specified in paragraph (1)(C), the Secretary 

21 shall, as appropriate and to the extent practicable, ex22 clude college students and members of the Armed 

23 Forces from the determination of the number of dis24 advantaged youth.’’. 
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1 (2) REALLOTMENT.—Section 127 (29 U.S.C. 

2 2552) is further amended—

3 (A) by striking subsection (b); 

4 (B) by redesignating subsection (c) as sub5 section (b); 

6 (C) in subsection (b) (as so redesignated)—

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

8 as follows: 

9 ‘‘(2) AMOUNT.—The amount available for real10 lotment 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 the 

13 determination is made exceeds 30 percent of the total 

14 amount of funds available to the State under this sec15 tion during such prior program year (including 

16 amounts allotted to the State in all prior program 

17 years that remained available). For purposes of this 

18 paragraph, the expended balance is the amount that 

19 is the difference between—

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

21 the State under this section during the program 

22 year prior to the program year for which the de23 termination is made (including amounts allotted 

24 to the State in all prior program years that re25 mained available); and 
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1 ‘‘(B) the accrued expenditures during such 

2 prior program year.’’; 

3 (ii) in paragraph (3)—

4 (I) by striking ‘‘for the prior pro5 gram year’’ and inserting ‘‘for the pro6 gram year in which the determination 

7 is made’’; and 

8 (II) by striking ‘‘such prior pro9 gram year’’ and inserting ‘‘such pro10 gram year’’; 

11 (iii) by amending paragraph (4) to 

12 read as follows: 

13 ‘‘(4) ELIGIBILITY.—For purposes of this sub14 section, an eligible State means a State which does 

15 not have an amount available for reallotment under 

16 paragraph (2) for the program year for which the de17 termination under paragraph (2) is made.’’; and 

18 (iv) in paragraph (5), by striking ‘‘ob19 ligation’’ and inserting ‘‘accrued expendi20 ture’’. 

21 (b) WITHIN STATE ALLOCATIONS.—

22 (1) RESERVATION FOR STATEWIDE ACTIVITIES.—

23 Section 128(a) is amended to read as follows: 

24 ‘‘(a) RESERVATION FOR STATEWIDE ACTIVITIES.—
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1 ‘‘(1) IN GENERAL.—The Governor of a State 

2 shall reserve not more than 10 percent of the amount 

3 allotted to the State under section 127(a)(1)(C) for a 

4 fiscal year for statewide activities. 

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

6 amounts are allotted under section 127(a)(1)(C) and 

7 reserved under paragraph (1) or allotted under sec8 tion 132 and reserved under section 133(a), the Gov9 ernor may use the reserved amounts to carry out 

10 statewide youth activities under section 129(b) or 

11 statewide employment and training activities under 

12 section 133.’’. 

13 (2) WITHIN STATE ALLOCATIONS.—Section 

14 128(b) is amended to read as follows: 

15 ‘‘(b) WITHIN STATE ALLOCATION.—

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

17 the State under section 127(a)(1)(C) and not reserved 

18 under subsection (a)(1)—

19 ‘‘(A) 80 percent of such amounts shall be al20 located by the Governor to local areas in accord21 ance with paragraph (2); and 

22 ‘‘(B) 20 percent of such amounts shall be al23 located by the Governor to local areas in accord24 ance with paragraph (3). 

25 ‘‘(2) ESTABLISHED FORMULA.—
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1 ‘‘(A) IN GENERAL.—Of the amounts de2 scribed in paragraph (1)(A), the Governor shall 

3 allocate—

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

5 the basis of the relative number of individ6 uals in the civilian labor force who are ages 

7 16–19 in each local area, compared to the 

8 total number of individuals in the civilian 

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

10 areas in the State; 

‘‘(ii) 331 11 ⁄3 percent shall be allotted on 

12 the basis of the relative number of unem13 ployed individuals in each local area, com14 pared to the total number of unemployed 

15 individuals in all local areas in the State; 

16 and 

‘‘(iii) 331 17 ⁄3 percent on the basis of the 

18 relative number of disadvantaged youth who 

19 are ages 16 through 21 in each local area, 

20 compared to the total number of disadvan21 taged youth who are ages 16 through 21 in 

22 all local areas in the State. 

23 ‘‘(B) MINIMUM AND MAXIMUM PERCENT24 AGES.—The Governor shall ensure that no local 

25 area shall receive an allocation for a fiscal year 
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1 under this paragraph that is less than 90 percent 

2 or greater than 130 percent of the allocation per3 centage of the local area for the preceding fiscal 

4 year. 

5 ‘‘(C) DEFINITIONS.—

6 ‘‘(i) ALLOCATION PERCENTAGE.—For 

7 purposes of this paragraph, the term ‘allo8 cation percentage’, used with respect to fis9 cal year 2006 or a subsequent fiscal year, 

10 means a percentage of the amount described 

11 in paragraph(1)(A) that is received through 

12 an allocation made under this paragraph 

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

14 fiscal year 2005, means the percentage of 

15 the amounts allocated to local areas under 

16 this chapter (as in effect on the day before 

17 the date of enactment of the Job Training 

18 Improvement Act of 2005) that is received 

19 by the local area involved for fiscal year 

20 2005. 

21 ‘‘(ii) DISADVANTAGED YOUTH.—The 

22 term ‘disadvantaged youth’ means an indi23 vidual who is age 16 through 21 who re24 ceived an income, or is a member of a fam25 ily that received a total family income, 
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1 that, in relation to family size, does not ex2 ceed the poverty line. 

3 ‘‘(3) YOUTH DISCRETIONARY ALLOCATION.—The 

4 Governor shall allocate to local areas the amounts de5 scribed in paragraph (1)(B) in accordance with such 

6 demographic and economic factors as the Governor, 

7 after consultation with the State board and local 

8 boards, determines are appropriate. 

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

10 ‘‘(A) IN GENERAL.—Of the amounts allo11 cated to a local area under this subsection and 

12 section 133(b) for a fiscal year, not more than 10 

13 percent of the amount may be used by the local 

14 boards for the administrative costs of carrying 

15 out local workforce investment activities under 

16 this chapter or chapter 5. 

17 ‘‘(B) USE OF FUNDS.—Funds made avail18 able for administrative costs under subparagraph 

19 (A) may be used for the administrative costs of 

20 any of the local workforce investment activities 

21 described in this chapter or chapter 5, regardless 

22 of whether the funds were allocated under this 

23 subsection or section 133(b).’’. 

24 (3) REALLOCATION.—Section 128(c) (29 U.S.C. 

25 2853(c)) is amended—
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1 (A) in paragraph (1), by striking ‘‘para2 graph (2)(A) or (3) of’’; 

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

4 follows: 

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

7 by which the unexpended balance at the end of the 

8 program year prior to the program year for which the 

9 determination is made exceeds 30 percent of the total 

10 amount of funds available to the local area under this 

11 section during such prior program year, (including 

12 amounts allotted to the local area in prior program 

13 years that remain available). For purposes of this 

14 paragraph, the unexpended balance is the amount 

15 that is the difference between—

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

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

19 the determination is made (including amounts 

20 allocated to the local area in all prior program 

21 years that remained available); and 

22 ‘‘(B) the accrued expenditures during such 

23 prior program year.’’; 

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

2 first two places it appears and inserting 

3 ‘‘subsection (b)’’; 

4 (ii) by striking ‘‘the prior program 

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

6 which the determination is made’’; 

7 (iii) by striking ‘‘such prior program 

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

9 and 

10 (iv) by striking the last sentence; and 

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

12 follows: 

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

15 which does not have an amount available for realloca16 tion under paragraph (2) for the program year for 

17 which the determination under paragraph (2) is 

18 made.’’. 

19 (c) YOUTH PARTICIPANT ELIGIBILITY.—Section 

20 129(a) (29 U.S.C. 2854(a)) is amended to read as follows: 

21 ‘‘(a) YOUTH PARTICIPANT ELIGIBILITY.—

22 ‘‘(1) IN GENERAL.—The individuals partici23 pating in activities carried out under this chapter by 

24 a local area during any program year shall be indi-
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1 viduals who, at the time the eligibility determination 

2 is made, are—

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

4 age 24; and 

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

6 ‘‘(i) school dropouts; 

7 ‘‘(ii) recipients of a secondary school 

8 diploma, General Educational Development 

9 credential (GED), or other State-recognized 

10 equivalent (including recognized alternative 

11 standards for individuals with disabilities) 

12 who are deficient in basic skills and not at13 tending any school; 

14 ‘‘(iii) court-involved youth attending 

15 an alternative school; 

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

17 been in foster care; or 

18 ‘‘(v) in school youth who are low-in19 come individuals and one or more of the fol20 lowing: 

21 ‘‘(I) Deficient in literacy skills. 

22 ‘‘(II) Homeless, runaway, or fos23 ter children. 

24 ‘‘(III) Pregnant or parents. 

25 ‘‘(IV) Offenders. 
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1 ‘‘(V) Individuals who require ad2 ditional assistance to complete an edu3 cational program, or to secure and 

4 hold employment. 

5 ‘‘(2) PRIORITY FOR SCHOOL DROPOUTS.—A pri6 ority in the provision of services under this chapter 

7 shall be given to individuals who are school dropouts. 

8 ‘‘(3) LIMITATIONS ON ACTIVITIES FOR IN-SCHOOL

9 YOUTH.—

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

11 program year, not more than 30 percent of the 

12 funds available for statewide activities under 

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

14 funds available to local areas under subsection 

15 (c), may be used to provide activities for in16 school youth meeting the requirements of para17 graph (1)(B)(v). 

18 ‘‘(B) NON-SCHOOL HOURS REQUIRED.—

19 ‘‘(i) IN GENERAL.—Except as provided 

20 in clause (ii), activities carried out under 

21 this chapter for in-school youth meeting the 

22 requirements of paragraph (1)(B)(v) shall 

23 only be carried out in non-school hours or 

24 periods when school is not in session (such 

25 as before and after school or during recess). 
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1 ‘‘(ii) EXCEPTION.—The requirements of 

2 clause (i) shall not apply to activities car3 ried out for in-school youth meeting the re4 quirements of paragraph (1)(B)(v) during 

5 school hours that are part of a program 

6 that has demonstrated effectiveness in high 

7 school youth attaining diplomas.’’. 

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

9 (29 U.S.C. 2854(b)) is amended to read as follows: 

10 ‘‘(b) STATEWIDE ACTIVITIES.—

11 ‘‘(1) IN GENERAL.—Funds reserved by a Gov12 ernor for a State as described in sections 128(a) and 

13 133(a)(1) may be used for statewide activities includ14 ing—

15 ‘‘(A) additional assistance to local areas 

16 that have high concentrations of eligible youth; 

17 ‘‘(B) supporting the provision of core serv18 ices described in section 134(c)(2) in the one-stop 

19 delivery system; 

20 ‘‘(C) conducting evaluations under section 

21 136(e) of activities authorized under this chapter 

22 and chapter 5 in coordination with evaluations 

23 carried out by the Secretary under section 172, 

24 research, and demonstration projects; 
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1 ‘‘(D) 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 ‘‘(E) 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 activities, 

13 and the provision of technical assistance to local 

14 areas that fail to meet local performance meas15 ures; 

16 ‘‘(F) operating a fiscal and management 

17 accountability system under section 136(f); and 

18 ‘‘(G) carrying out monitoring and oversight 

19 of activities under this chapter and chapter 5. 

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

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

22 by the State for administrative activities carried out 

23 under this subsection and section 133(a). 

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

25 subsection or in section 134(a) may be used to develop 
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1 or implement education curricula for school systems 

2 in the State.’’. 

3 (e) LOCAL ELEMENTS AND REQUIREMENTS.—

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

5 U.S.C. 2854(c) (1)) is amended—

6 (A) in the matter preceding subparagraph 

7 (A), by striking ‘‘paragraph (2)(A) or (3), as ap8 propriate, of’’; 

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

10 directly linked to one or more of the performance 

11 outcomes relating to this chapter under section 

12 136, and that’’ after ‘‘for each participant that’’; 

13 and 

14 (C) in subparagraph (C)—

15 (i) by redesignating clauses (i) through 

16 (iv) as clauses (ii) through (v), respectively; 

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

18 so redesignated) the following: 

19 ‘‘(i) activities leading to the attain20 ment of a secondary school diploma, Gen21 eral Educational Development credential 

22 (GED), or other State-recognized equivalent 

23 (including recognized alternative standards 

24 for individuals with disabilities);’’; 
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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 redesignated), 

5 by inserting ‘‘that lead to the attainment of 

6 recognized credentials’’ after ‘‘learning’’; 

7 and 

8 (v) by amending clause (v) (as redesig9 nated by this subparagraph) to read as fol10 lows: 

11 ‘‘(v) effective connections to employers 

12 in sectors of the local labor market experi13 encing high growth in employment opportu14 nities.’’. 

15 (2) PROGRAM ELEMENTS.—Section 129(c)(2) (29 

16 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 equiva22 lent (including recognized alternative standards 

23 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 pe4 riod at the end and inserting a semicolon; and 

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

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

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

8 (3) ADDITIONAL REQUIREMENTS.—Section 

9 129(c)(3)(A) (29 U.S.C. 2854(c)(3)(A)) is amended in 

10 the matter preceding clause (i) by striking ‘‘or appli11 cant who meets the minimum income criteria to be 

12 considered an eligible youth’’. 

13 (4) PRIORITY AND EXCEPTIONS.—Section 129(c) 

14 (29 U.S.C. 2854(c)) is further amended—

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

16 (B) by redesignating paragraph (6) as 

17 paragraph (4); 

18 (C) by redesignating paragraph (7) as 

19 paragraph (5), and in such redesignated para20 graph (5) by striking ‘‘youth councils’’ and in21 serting ‘‘local boards’’; and 

22 (D) by redesignating paragraph (8) as 

23 paragraph (6). 

24 SEC. 112. COMPREHENSIVE PROGRAMS FOR ADULTS. 

25 (a) TITLE AMENDMENT.—
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1 (1) The title heading of chapter 5 is amended to 

2 read as follows: 

3 ‘‘CHAPTER 5—COMPREHENSIVE EMPLOY4 MENT AND TRAINING ACTIVITIES FOR 

5 ADULTS’’. 

6 (2) CLERICAL AMENDMENT.—The table of con7 tents in section 1(b) is amended by amending the 

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

9 follows:

‘‘CHAPTER 5—COMPREHENSIVE EMPLOYMENT AND TRAINING ACTIVITIES FOR

ADULTS’’.

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

11 U.S.C. 2861) is amended—

12 (1) by striking ‘‘paragraphs (1)(B) and (2)(B) 

13 of’’; and 

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

15 (c) STATE ALLOTMENTS.—

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

17 2862(a)) is amended to read as follows: 

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

19 ‘‘(1) reserve 10 percent of the amount appro20 priated under section 137(b) for a fiscal year, of 

21 which—

22 ‘‘(A) not less than 75 percent shall be used 

23 for national dislocated worker grants under sec-
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1 tion 173, of which up to $125,000,000 may be 

2 used to carry out section 171(d); 

3 ‘‘(B) not more than 20 percent may be used 

4 for demonstration projects under section 171; 

5 and 

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

7 to provide technical assistance under section 170; 

8 and 

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

10 amount appropriated under section 137(b) for a fiscal 

11 year in accordance with subsection (b).’’. 

12 (2) ALLOTMENT AMONG STATES.—Section 132(b) 

13 (29 U.S.C. 2862(b)) is amended to read as follows: 

14 ‘‘(b) ALLOTMENT AMONG STATES FOR ADULT EM15 PLOYMENT AND TRAINING ACTIVITIES.—

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

17 ‘‘(A) IN GENERAL.—From the amount made 

18 available under subsection (a)(2) for a fiscal 

19 year, the Secretary shall reserve not more than 

1 20 ⁄4 of 1 percent to provide assistance to outlying 

21 areas to carry out employment and training ac22 tivities for adults and statewide workforce invest23 ment activities. 

24 ‘‘(B) RESTRICTION.—The Republic of Palau 

25 shall cease to be eligible to receive funding under 
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1 this paragraph upon entering into an agreement 

2 for extension of United States educational assist3 ance under the Compact of Free Association (ap4 proved by the Compact of Free Association 

5 Amendments Act of 2003 (Public Law 108–188)) 

6 after the date of enactment of the Job Training 

7 Improvement Act of 2005. 

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

9 remainder of the amount referred to under subsection 

10 (a)(2) for a fiscal year that is available after deter11 mining the amount to be reserved under paragraph 

12 (1), the Secretary shall allot to the States for employ13 ment and training activities for adults and for state14 wide workforce investment activities—

15 ‘‘(A) 26 percent in accordance with para16 graph (3); and 

17 ‘‘(B) 74 percent in accordance with para18 graph (4). 

19 ‘‘(3) BASE FORMULA.—

20 ‘‘(A) FISCAL YEAR 2006.—

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

22 (ii), the amount referred to in paragraph 

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

24 on the basis of allotment percentage of each 
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1 State under section 6 of the Wagner-Peyser 

2 Act for fiscal year 2005. 

3 ‘‘(ii) EXCESS AMOUNTS.—If the 

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

5 fiscal year 2006 exceeds the amount that 

6 was available for allotment to the States 

7 under the Wagner-Peyser Act for fiscal year 

8 2005, such excess amount shall be allotted 

9 on the basis of the relative number of indi10 viduals in the civilian labor force in each 

11 State, compared to the total number of indi12 viduals in the civilian labor force in all 

13 States, adjusted to ensure that no State receives less than 3 14 ⁄10 of one percent of such 

15 excess amount. 

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

17 this subparagraph, the term ‘allotment per18 centage’ means the percentage of the 

19 amounts allotted to States under section 6 

20 of the Wagner-Peyser Act that is received by 

21 the State involved for fiscal year 2005. 

22 ‘‘(B) FISCAL YEARS 2007 AND THERE23 AFTER.—

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

25 (ii), the amount referred to in para-
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1 graph(2)(A) shall be allotted for fiscal year 

2 2007 and each fiscal year thereafter on the 

3 basis of the allotment percentage of each 

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

6 ‘‘(ii) EXCESS AMOUNTS.—If the 

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

8 fiscal year 2007 or any fiscal year there9 after exceeds the amount that was available 

10 for allotment under this paragraph for the 

11 prior fiscal year, such excess amount shall 

12 be allotted on the basis of the relative num13 ber of individuals in the civilian labor force 

14 in each State, compared to the total number 

15 of individuals in the civilian labor force in 

16 all States, adjusted to ensure that no State 

receives less than 3 17 ⁄10 of one percent of such 

18 excess amount. 

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

20 this subparagraph, the term ‘allotment per21 centage’ means the percentage of the 

22 amounts allotted to States under this para23 graph in a fiscal year that is received by 

24 the State involved for such fiscal year. 

25 ‘‘(4) CONSOLIDATED FORMULA.—
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graphs (B) and (C), of the amount referred to in 

3 paragraph (2)(B)—

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

5 basis of the relative number of unemployed 

6 individuals in each State, compared to the 

7 total number of unemployed individuals in 

8 all States; 

9 ‘‘(ii) 25 percent shall be allotted on the 

10 basis of the relative excess number of unem11 ployed individuals in each State, compared 

12 to the total excess number of unemployed 

13 individuals in all States; and 

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

15 the basis of the relative number of disadvan16 taged adults in each State, compared to the 

17 total number of disadvantaged adults in all 

18 States. 

19 ‘‘(B) MINIMUM AND MAXIMUM PERCENT20 AGES.—

21 ‘‘(i) MINIMUM PERCENTAGE.—The Sec22 retary shall ensure that no State shall re23 ceive an allotment under this paragraph for 

24 a fiscal year that is less than 90 percent of 
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1 the allotment percentage of the State under 

2 this paragraph for the preceding fiscal year. 

3 ‘‘(ii) MAXIMUM PERCENTAGE.—Subject 

4 to clause (i), the Secretary shall ensure that 

5 no State shall receive an allotment for a fis6 cal year under this paragraph that is more 

7 than 130 percent of the allotment of the 

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

10 ‘‘(C) SMALL STATE MINIMUM ALLOTMENT.—

11 Subject to subparagraph (B), the Secretary shall 

12 ensure that no State shall receive an allotment 

under this paragraph that is less than 2 13 ⁄10 of 1 

14 percent of the amount available under subpara15 graph (A). 

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

17 this paragraph: 

18 ‘‘(i) ALLOTMENT PERCENTAGE.—The 

19 term ‘allotment percentage’, used with re20 spect to fiscal year 2006 or a subsequent fis21 cal year, means a percentage of the amounts 

22 described in paragraph (2)(B) that is re23 ceived through an allotment made under 

24 this paragraph for the fiscal year. The term, 

25 with respect to fiscal year 2005, means the 
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1 percentage of the amounts allotted to States 

2 under this chapter (as in effect on the day 

3 before the date of enactment of the Job 

4 Training Improvement Act of 2005) and 

5 under reemployment service grants received 

6 by the State involved for fiscal year 2005. 

7 ‘‘(ii) DISADVANTAGED ADULT.—The 

8 term ‘disadvantaged adult’ means an indi9 vidual who is age 22 through 72 who re10 ceived an income, or is a member of a fam11 ily that received a total family income, 

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

14 ‘‘(iii) EXCESS NUMBER.—The term ‘ex15 cess number’ means, used with respect to the 

16 excess number of unemployed individuals 

17 within a State, the number that represents 

18 the number of unemployed individuals in 

excess of 41 19 ⁄2 percent of the civilian labor 

20 force in the State. 

21 ‘‘(5) ADJUSTMENTS IN ALLOTMENTS BASED ON

22 DIFFERENCES WITH UNCONSOLIDATED FORMULAS.—

23 ‘‘(A) IN GENERAL.—The Secretary shall en24 sure that for any fiscal year no State has an al25 lotment difference, as defined in subparagraph 
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1 (C), that is less than zero. The Secretary shall 

2 adjust the amounts allotted to the States under 

3 this subsection in accordance with subparagraph 

4 (B) if necessary to carry out this subparagraph. 

5 ‘‘(B) ADJUSTMENTS IN ALLOTMENTS.—

6 ‘‘(i) REDISTRIBUTION OF EXCESS

7 AMOUNTS.—

8 ‘‘(I) IN GENERAL.—If necessary to 

9 carry out subparagraph (A), the Sec10 retary shall reduce the amounts that 

11 would be allotted under paragraphs (3) 

12 and (4) to States that have an excess 

13 allotment difference, as defined in sub14 clause (II), by the amount of such ex15 cess, and use such amounts to increase 

16 the allotments to States that have an 

17 allotment difference less than zero. 

18 ‘‘(II) EXCESS AMOUNTS.—For 

19 purposes of subclause (I), the term ‘ex20 cess’ allotment difference means an al21 lotment difference for a State that is—

22 ‘‘(aa) in excess of 3 percent 

23 of the amount described in sub24 paragraph (C)(i)(II); or 
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1 ‘‘(bb) in excess of a percent2 age established by the Secretary 

3 that is greater than 3 percent of 

4 the amount described in subpara5 graph (C)(i)(II) if the Secretary 

6 determines that such greater per7 centage is sufficient to carry out 

8 subparagraph (A). 

9 ‘‘(ii) USE OF AMOUNTS AVAILABLE

10 UNDER NATIONAL RESERVE ACCOUNT.—If 

11 the funds available under clause (i) are in12 sufficient to carry out subparagraph (A), 

13 the Secretary shall use funds reserved under 

14 section 132(a) in such amounts as are nec15 essary to increase the allotments to States to 

16 meet the requirements of subparagraph (A). 

17 Such funds shall be used in the same man18 ner as the States use the other funds allotted 

19 under this subsection. 

20 ‘‘(C) DEFINITION OF ALLOTMENT DIF21 FERENCE.—

22 ‘‘(i) IN GENERAL.—For purposes of 

23 this paragraph, the term ‘allotment dif24 ference’ means the difference between—
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1 ‘‘(I) the total amount a State 

2 would receive of the amounts available 

3 for allotment under subsection (b)(2) 

4 for a fiscal year pursuant to para5 graphs (3) and (4); and 

6 ‘‘(II) the total amount the State 

7 would receive of the amounts available 

8 for allotment under subsection (b)(2) 

9 for the fiscal year if such amounts were 

10 allotted pursuant to the unconsolidated 

11 formulas (applied as described in 

12 clause (iii)) that were used in allotting 

13 funds for fiscal year 2005. 

14 ‘‘(ii) UNCONSOLIDATED FORMULAS.—

15 For purposes of clause (i), the unconsoli16 dated formulas are: 

17 ‘‘(I) The requirements for the al18 lotment of funds to the States con19 tained in section 132(b)(1)(B) of this 

20 Act (as in effect on the day before the 

21 date of enactment of the Job Training 

22 Improvement Act of 2005) that were 

23 applicable to the allotment of funds 

24 under such section for fiscal year 2005. 
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1 ‘‘(II) The requirements for the al2 lotment of funds to the States con3 tained in section 132(b)(2)(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 2005. 

9 ‘‘(III) The requirements for the al10 lotment of funds to the States that were 

11 contained in section 6 of the Wagner12 Peyser Act (as in effect on the day be13 fore the date of enactment of the Job 

14 Training Improvement Act of 2005) 

15 that were applicable to the allotment of 

16 funds under such Act for fiscal year 

17 2005. 

18 ‘‘(IV) The requirements for the al19 lotment of funds to the States that were 

20 established by the Secretary for Reem21 ployment Services Grants that were 

22 applicable to the allotment of funds for 

23 such grants for fiscal year 2005. 

24 ‘‘(iii) PROPORTIONATE APPLICATION

25 OF UNCONSOLIDATED FORMULAS BASED ON
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1 FISCAL YEAR 2005.—In calculating the 

2 amount under clause (i)(II), each of the un3 consolidated formulas identified in clause 

4 (ii) shall be applied, respectively, only to 

5 the proportionate share of the total amount 

6 of funds available for allotment under sub7 section (b)(2) for a fiscal year that is equal 

8 to the proportionate share to which each of 

9 the unconsolidated formulas applied with 

10 respect to the total amount of funds allotted 

11 to the States under all of the unconsolidated 

12 formulas in fiscal year 2005. 

13 ‘‘(iv) RULE OF CONSTRUCTION.—The 

14 amounts used to adjust the allotments to a 

15 State under subparagraph (B) for a fiscal 

16 year shall not be included in the calculation 

17 of the amounts under clause (i) for a subse18 quent fiscal year, including the calculation 

19 of allocation percentages for a preceding fis20 cal year applicable to paragraphs (3) and 

21 (4) and to the unconsolidated formulas de22 scribed in clause (ii).’’. 

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

24 2862(c)) is amended—
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1 (A) by amending paragraph (2) to read as 

2 follows: 

3 ‘‘(2) AMOUNT.—The amount available for real4 lotment for a program year is equal to the amount 

5 by which the unexpended balance at the end of the 

6 program year prior to the program year for which the 

7 determination is made exceeds 30 percent of the total 

8 amount of funds available to the State under this sec9 tion during such prior program year (including 

10 amounts allotted to the State in all prior program 

11 years that remained available). For purposes of this 

12 paragraph, the expended balance is the amount that 

13 is the difference between—

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

15 the State under this section during the program 

16 year prior to the program year for which the de17 termination is made (including amounts allotted 

18 to the State in all prior program years that re19 mained available); and 

20 ‘‘(B) the accrued expenditures during such 

21 prior program year.’’; 

22 (B) in paragraph (3)—

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

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

25 in which the determination is made’’; and 
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1 (ii) by striking ‘‘such prior program 

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

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

4 follows: 

5 ‘‘(4) ELIGIBILITY.—For purposes of this sub6 section, an eligible State means a State that does not 

7 have an amount available for reallotment under para8 graph (2) for the program year for which the deter9 mination under paragraph (2) is made.’’; and 

10 (D) in paragraph (5), by striking ‘‘obliga11 tion’’ and inserting ‘‘accrued expenditure’’. 

12 (d) WITHIN STATE ALLOCATIONS.—

13 (1) RESERVATION FOR STATE ACTIVITIES.—Sec14 tion 133(a) (29 U.S.C. 2863(a)) is amended to read 

15 as follows: 

16 ‘‘(a) RESERVATION FOR STATEWIDE ACTIVITIES.—The 

17 Governor of a State may reserve up to 50 percent of the 

18 total amount allotted to the State under section 132 for a 

19 fiscal year to carry out the statewide activities described 

20 in section 134(a).’’. 

21 (2) ALLOCATIONS TO LOCAL AREAS.—Section 

22 133(b) (29 U.S.C. 2863(b)) is amended to read as fol23 lows: 

24 ‘‘(b) ALLOCATIONS TO LOCAL AREAS.—
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1 ‘‘(1) IN GENERAL.—Of the amounts allotted to 

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

3 under subsection (a)—

4 ‘‘(A) 85 percent of such amounts shall be al5 located by the Governor to local areas in accord6 ance with paragraph (2); and 

7 ‘‘(B) 15 percent of such amounts shall be al8 located by the Governor to local areas in accord9 ance with paragraph (3). 

10 ‘‘(2) ESTABLISHED FORMULA.—

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

13 allocate—

14 ‘‘(i) 60 percent on the basis of the rel15 ative number of unemployed individuals in 

16 each local area, compared to the total num17 ber of unemployed individuals in all local 

18 areas in the State; 

19 ‘‘(ii) 25 percent on the basis of the rel20 ative excess number of unemployed individ21 uals in each local area, compared to the 

22 total excess number of unemployed individ23 uals in all local areas in the State; and 

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

25 the basis of the relative number of disadvan-
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1 taged adults in each local area, compared to 

2 the total number of disadvantaged adults in 

3 all local areas in the State. 

4 ‘‘(B) MINIMUM AND MAXIMUM PERCENT5 AGES.—The Governor shall ensure that no local 

6 area shall receive an allocation for a fiscal year 

7 under this paragraph that is less than 90 percent 

8 or greater than 130 percent of the allocation per9 centage of the local area for the preceding fiscal 

10 year. 

11 ‘‘(C) DEFINITIONS.—

12 ‘‘(i) ALLOCATION PERCENTAGE.—The 

13 term ‘allocation percentage’, used with re14 spect to fiscal year 2006 or a subsequent fis15 cal year, means a percentage of the amount 

16 described in paragraph (1)(A) that is re17 ceived through an allocation made under 

18 this paragraph for the fiscal year. The term, 

19 with respect to fiscal year 2005, means the 

20 percentage of the amounts allocated to local 

21 areas under this chapter (as in effect on the 

22 day before the date of enactment of the Job 

23 Training Improvement Act of 2005) that is 

24 received by the local area involved for fiscal 

25 year 2005. 
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1 ‘‘(ii) DISADVANTAGED ADULT.—The 

2 term ‘disadvantaged adult’ means an indi3 vidual who is age 22 through 72 who re4 ceived an income, or is a member of a fam5 ily that received a total family income, 

6 that, in relation to family size, does not ex7 ceed the poverty line. 

8 ‘‘(iii) EXCESS NUMBER.—The term ‘ex9 cess number’ means, used with respect to the 

10 excess number of unemployed individuals 

11 within a local area, the number that rep12 resents the number of unemployed individ13 uals in excess of 4.5 percent of the civilian 

14 labor force in the local area. 

15 ‘‘(3) DISCRETIONARY ALLOCATION.—The Gov16 ernor shall allocate to local areas the amounts de17 scribed in paragraph (1)(B) based on a formula de18 veloped in consultation with the State board and local 

19 boards. Such formula shall be objective and geo20 graphically equitable and may include such demo21 graphic and economic factors as the Governor, after 

22 consultation with the State board and local boards, 

23 determines are appropriate. 

24 ‘‘(4) LOCAL ADMINISTRATIVE COST LIMIT.—
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1 ‘‘(A) IN GENERAL.—Of the amounts allo2 cated to a local area under this subsection and 

3 section 128(b) for a fiscal year, not more than 10 

4 percent of the amount may be used by the local 

5 boards for the administrative costs of carrying 

6 out local workforce investment activities under 

7 this chapter or chapter 4. 

8 ‘‘(B) USE OF FUNDS.—Funds made avail9 able for administrative costs under subparagraph 

10 (A) may be used for the administrative costs of 

11 any of the local workforce investment activities 

12 described in this chapter or chapter 4, regardless 

13 of whether the funds were allocated under this 

14 subsection or section 128(b).’’. 

15 (3) REALLOCATION AMONG LOCAL AREAS.—Sec16 tion 133(c) (29 U.S.C. 2863(c)) is amended—

17 (A) in paragraph (1), by striking ‘‘para18 graph (2)(A) or (3) of’’; 

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

20 follows: 

21 ‘‘(2) AMOUNT.—The amount available for re22 allocation for a program year is equal to the amount 

23 by which the unexpended balance at the end of the 

24 program year prior to the program year for which the 

25 determination is made exceeds 30 percent of the total 
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1 amount of funds available to the local area under this 

2 section during such prior program year (including 

3 amounts allotted to the local area in prior program 

4 years that remain available). For purposes of this 

5 paragraph, the unexpended balance is the amount 

6 that is the difference between—

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

8 the local area under this section during the pro9 gram year prior to the program year for which 

10 the determination is made (including amounts 

11 allocated to the local area in all prior program 

12 years that remained available); and 

13 ‘‘(B) the accrued expenditures during such 

14 prior program year.’’; 

15 (C) by amending paragraph (3)—

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

17 first two places it appears and inserting 

18 ‘‘subsection (b)’’; 

19 (ii) by striking ‘‘the prior program 

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

21 which the determination is made’’; 

22 (iii) by striking ‘‘such prior program 

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

24 and 

25 (iv) by striking the last sentence; and 
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1 (D) by amending paragraph (4) to read as 

2 follows: 

3 ‘‘(4) ELIGIBILITY.—For purposes of this sub4 section, an eligible local area means a local area 

5 which does not have an amount available for realloca6 tion under paragraph (2) for the program year for 

7 which the determination under paragraph (2) is 

8 made.’’. 

9 (e) USE OF FUNDS FOR EMPLOYMENT AND TRAINING

10 ACTIVITIES.—

11 (1) STATEWIDE EMPLOYMENT AND TRAINING AC12 TIVITIES.—

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

14 U.S.C. 2864(a)(1) is amended to read as follows: 

15 ‘‘(1) IN GENERAL.—

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

17 than 50 percent of the funds reserved by a Gov18 ernor under section 133(a) shall be used to sup19 port the provision of core services in local areas, 

20 consistent with the local plan, through one-stop 

21 delivery systems by distributing funds to local 

22 areas in accordance with subparagraph (B). 

23 Such funds may be used by States to employ 

24 State personnel to provide such services in des-
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1 ignated local areas in consultation with local 

2 boards. 

3 ‘‘(B) METHOD OF DISTRIBUTING FUNDS.—

4 The method of distributing funds under this 

5 paragraph shall be developed in consultation 

6 with the State board and local boards. Such 

7 method of distribution, which may include the 

8 formula established under section 121(h)(3), shall 

9 be objective and geographically equitable, and 

10 may include factors such as the number of cen11 ters in the local area that have been certified, the 

12 population served by such centers, and the per13 formance of such centers. 

14 ‘‘(C) OTHER USE OF FUNDS.—Funds re15 served by a Governor for a State—

16 ‘‘(i) under section 133(a) and not used 

17 under subparagraph (A), may be used for 

18 statewide activities described in paragraph 

19 (2); and 

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

21 used under subparagraph (A), and under 

22 section 128(a) may be used to carry out any 

23 of the statewide employment and training 

24 activities described in paragraph (3).’’. 
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1 (B) STATEWIDE RAPID RESPONSE ACTIVI2 TIES.—Section 134(a)(2) (29 U.S.C. 2864(a)(2)) 

3 is amended to read as follows: 

4 ‘‘(2) STATEWIDE RAPID RESPONSE ACTIVITIES.—

5 A State shall carry out statewide rapid response ac6 tivities using funds reserved as described in section 

7 133(a). Such activities shall include—

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

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

10 entity designated by the State, working in con11 junction with the local boards and the chief elect12 ed officials in the local areas; and 

13 ‘‘(B) provision of additional assistance to 

14 local areas that experience disasters, mass layoffs 

15 or plant closings, or other events that precipitate 

16 substantial increases in the number of unem17 ployed individuals, carried out in local areas by 

18 the State, working in conjunction with the local 

19 boards and the chief elected officials in the local 

20 areas.’’. 

21 (C) STATEWIDE EMPLOYMENT AND TRAIN22 ING ACTIVITIES.—Section 134(a)(3) (29 U.S.C. 

23 2864(a)(3)) is amended to read as follows: 

24 ‘‘(3) STATEWIDE ACTIVITIES.—Funds reserved by 

25 a Governor for a State as described in sections 133(a) 
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1 and 128(a) may be used for statewide activities in2 cluding—

3 ‘‘(A) supporting the provision of core serv4 ices described in section 134(c)(2) in the one-stop 

5 delivery system; 

6 ‘‘(B) conducting evaluations under section 

7 136(e) of activities authorized under this chapter 

8 and chapter 4 in coordination with evaluations 

9 carried out by the Secretary under section 172, 

10 research, and demonstration projects; 

11 ‘‘(C) providing incentive grants to local 

12 areas for regional cooperation among local 

13 boards (including local boards in a designated 

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

15 coordination of activities carried out under this 

16 Act, and for exemplary performance by local 

17 areas on the local performance measures; 

18 ‘‘(D) providing technical assistance and ca19 pacity building to local areas, one-stop opera20 tors, one-stop partners, and eligible providers, 

21 including the development and training of staff, 

22 the development of exemplary program activities, 

23 and the provision of technical assistance to local 

24 areas that fail to meet local performance meas25 ures; 
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1 ‘‘(E) operating a fiscal and management 

2 accountability system under section 136(f); 

3 ‘‘(F) carrying out monitoring and oversight 

4 of activities carried out under this chapter and 

5 chapter 4; 

6 ‘‘(G) implementing innovative programs, 

7 such as incumbent worker training programs, 

8 programs and strategies designed to meet the 

9 needs of businesses in the State, including small 

10 businesses, and engage employers in workforce 

11 activities, and programs serving individuals 

12 with disabilities consistent with section 188; 

13 ‘‘(H) developing strategies for effectively 

14 serving hard-to-serve populations and for inte15 grating programs and services among one-stop 

16 partners; 

17 ‘‘(I) implementing innovative programs for 

18 displaced homemakers, which for purposes of this 

19 subparagraph may include an individual who is 

20 receiving public assistance and is within 2 years 

21 of exhausting lifetime eligibility under Part A of 

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

23 601 et seq.); 
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1 ‘‘(J) implementing programs to increase the 

2 number of individuals training for and placed 

3 in nontraditional employment; and 

4 ‘‘(K) carrying out activities to facilitate re5 mote access to services provided through a one6 stop delivery system, including facilitating access 

7 through the use of technology.’’. 

8 (D) LIMITATION ON STATE ADMINISTRATIVE

9 EXPENDITURES.—Section 134(a) is further 

10 amended by adding the following new para11 graph: 

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

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

14 by the State for administrative activities carried out 

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

16 (2) LOCAL EMPLOYMENT AND TRAINING ACTIVI17 TIES.—Section 134(b) (29 U.S.C. 2864(b)) is amend18 ed—

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

20 and all that follows through ‘‘section 

21 133(b)(2)(B)’’ and inserting ‘‘under section 

22 133(b)’’; and 

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

24 ‘‘or dislocated workers, respectively’’ . 
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1 (3) TECHNICAL AMENDMENT.—Section 134 is 

2 further amended by redesignating subsections (d) and 

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

4 (4) REQUIRED LOCAL EMPLOYMENT AND TRAIN5 ING ACTIVITIES.—

6 (A) ALLOCATED FUNDS.—Section 134(c)(1) 

7 (29 U.S.C. 2864(c)(1)) (as redesignated by para8 graph (3)) is amended to read as follows: 

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

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

11 ‘‘(A) to establish a one-stop delivery system 

12 as described in section 121(e); 

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

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

15 system in accordance with such paragraph; 

16 ‘‘(C) to provide the intensive services de17 scribed in paragraph (3) to adults described in 

18 such paragraph; and 

19 ‘‘(D) to provide training services described 

20 in paragraph (4) to adults described in such 

21 paragraph.’’. 

22 (B) CORE SERVICES.—Section 134(c)(2) (29 

23 U.S.C. 2864(c)(2)) (as redesignated by para24 graph (3)) is amended—
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1 (i) by striking ‘‘who are adults or dis2 located workers’’; 

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

4 ‘‘under this subtitle’’ and inserting ‘‘under 

5 the one-stop partner programs described in 

6 section 121(b)’’; 

7 (iii) by amending subparagraph (D) to 

8 read as follows: 

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

10 ‘‘(i) job search and placement assist11 ance, and where appropriate career coun12 seling; 

13 ‘‘(ii) appropriate recruitment services 

14 for employers; and 

15 ‘‘(iii) reemployment services provided 

16 to unemployment claimants.’’; 

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

18 ‘‘and the administration of the work test for 

19 the unemployment compensation system’’ 

20 after ‘‘compensation’’; and 

21 (v) by amending subparagraph (J) to 

22 read as follows: 

23 ‘‘(J) assistance in establishing eligibility for 

24 programs of financial aid assistance for training 

25 and education programs that are not funded 
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1 under this Act and are available in the local 

2 area; and’’. 

3 (C) INTENSIVE SERVICES.—Section 

4 134(c)(3) (29 U.S.C. 2864(c)(3) (as redesignated 

5 by paragraph (3) of this subsection) is amend6 ed—

7 (i) by amending subparagraph (A) to 

8 read as follows: 

9 ‘‘(A) IN GENERAL.—

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

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

12 used to provide intensive services for adults 

13 who—

14 ‘‘(I) are unemployed and who 

15 have been determined by the one-stop 

16 operator to be—

17 ‘‘(aa) unlikely or unable to 

18 obtain suitable employment 

19 through core services; and 

20 ‘‘(bb) in need of intensive 

21 services in order to obtain suitable 

22 employment; or 

23 ‘‘(II) are employed, but who are 

24 determined by a one-stop operator to 
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1 be in need of intensive services to ob2 tain or retain suitable employment. 

3 ‘‘(ii) DEFINITION.—The Governor shall 

4 define the term ‘suitable employment’ for 

5 purposes of this subparagraph.’’; and 

6 (ii) in subparagraph (C)—

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

8 participants seeking training services 

9 under paragraph (4)’’; and 

10 (II) by adding the following 

11 clauses after clause (vi): 

12 ‘‘(vii) Internships and work experience. 

13 ‘‘(viii) Literacy activities relating to 

14 basic work readiness, information and com15 munication technology literacy activities, 

16 and financial literacy activities. 

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

18 and relocation assistance.’’. 

19 (D) TRAINING SERVICES.—Section 

20 134(c)(4) (as redesignated by paragraph (3) of 

21 this subsection) is amended—

22 (i) by amending subparagraph (A) to 

23 read as follows: 

24 ‘‘(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 training services to adults 

4 who—

5 ‘‘(I) after an interview, evalua6 tion, or assessment, and case manage7 ment, have been determined by a one8 stop operator or one-stop partner, as 

9 appropriate, to—

10 ‘‘(aa) be unlikely or unable 

11 to obtain or retain suitable em12 ployment through intensive serv13 ices under paragraph (3)(A); 

14 ‘‘(bb) be in need of training 

15 services to obtain or retain suit16 able employment; and 

17 ‘‘(cc) have the skills and 

18 qualifications to successfully par19 ticipate in the selected program of 

20 training services; 

21 ‘‘(II) select programs of training 

22 services that are directly linked to the 

23 employment opportunities in the local 

24 area involved or in another area in 
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1 which the adults receiving such services 

2 are willing to commute or relocate; 

3 ‘‘(III) who meet the requirements 

4 of subparagraph (B); and 

5 ‘‘(IV) who are determined eligible 

6 in accordance with the priority system 

7 in effect under subparagraph (E). 

8 ‘‘(ii) DEFINITION.—The Governor shall 

9 define the term ‘suitable employment’ for 

10 purposes of this subparagraph.’’; 

11 (ii) in subparagraph (B)(i), by strik12 ing ‘‘Except’’ and inserting ‘‘Notwith13 standing section 479B of the Higher Edu14 cation Act of 1965 (20 U.S.C. 1087uu) and 

15 except’’; 

16 (iii) in subparagraph (D)—

17 (I) by amending clause (iv) to 

18 read as follows: 

19 ‘‘(iv) entrepreneurial training, includ20 ing providing information about obtaining 

21 microcredit loans for the purpose of starting 

22 a business, including contact information of 

23 microcredit lenders operating within the 

24 local area;’’; 
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1 (II) in clause (viii) by inserting 

2 ‘‘(including English as a Second Lan3 guage)’’ after ‘‘activities’’; and 

4 (III) by redesignating clause (ix) 

5 as clause (x) and inserting after clause 

6 (viii) the following: 

7 ‘‘(ix) training that integrates occupa8 tional skills training and English language 

9 acquisition;’’; 

10 (iv) by amending subparagraph (E) to 

11 read as follows: 

12 ‘‘(E) PRIORITY.—

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

14 given to unemployed individuals for the 

15 provision of intensive and training services 

16 under this subsection. 

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

18 funds in the local area, including the funds 

19 allocated under section 133(b), for serving 

20 recipients of public assistance and other 

21 low-income individuals, including single 

22 parents, displaced homemakers, and preg23 nant single women, is limited, the priority 

24 for the provision of intensive and training 
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1 services under this subsection shall include 

2 such recipients and individuals. 

3 ‘‘(iii) DETERMINATIONS.—The Gov4 ernor and the appropriate local board shall 

5 direct the one-stop operators in the local 

6 area with regard to making determinations 

7 with respect to the priority of service under 

8 this subparagraph.’’; 

9 (v) in subparagraph (F), by adding the 

10 following clause after clause (iii): 

11 ‘‘(iv) ENHANCED INDIVIDUAL TRAINING

12 ACCOUNTS.—Each local board may, through 

13 one-stop centers, assist individuals receiving 

14 individual training accounts through the es15 tablishment of such accounts that include, 

16 in addition to the funds provided under this 

17 paragraph, funds from other programs and 

18 sources that will assist the individual in ob19 taining training services.’’; 

20 (vi) in subparagraph (G)(iv), by redes21 ignating subclause (IV) as subclause (V) 

22 and inserting after subclause (III) the fol23 lowing: 

24 ‘‘(IV) Individuals with disabil25 ities.’’; and 
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1 (vii) by adding at the end the fol2 lowing: 

3 ‘‘(H) COMPUTER TECHNOLOGY.—In pro4 viding training services under subparagraph 

5 (G), funds allocated to a local area under this 

6 title may be used to purchase computer tech7 nology for use by an individual who is eligible 

8 pursuant to subsection (A), only if—

9 ‘‘(i) such purchase is part of an ongo10 ing training program; and 

11 ‘‘(ii) such purchase is necessary to en12 sure the individual can participate in such 

13 training program. 

14 Any purchase of computer technology under this 

15 subparagraph shall remain the property of the 

16 one-stop operator.’’. 

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

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

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

20 follows: 

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

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

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

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

2 of qualified participants in training serv3 ices to employers; 

4 ‘‘(ii) customized employment-related 

5 services to employers on a fee-for-service 

6 basis; 

7 ‘‘(iii) customer support to navigate 

8 among multiple services and activities for 

9 special participant populations that face 

10 multiple barriers to employment, including 

11 individuals with disabilities; 

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

14 support enforcement activities of the State 

15 agency carrying out subtitle D of title IV of 

16 the Social Security Act; 

17 ‘‘(v) activities to improve services to 

18 local employers, including small employers 

19 in the local area, and increase linkages be20 tween the local workforce investment system 

21 and employers; and 

22 ‘‘(vi) activities to facilitate remote ac23 cess to services provided through a one-stop 

24 delivery system, including facilitating ac25 cess through the use of technology. 
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1 ‘‘(B) WORK SUPPORT ACTIVITIES FOR LOW2 WAGE WORKERS.—

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

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

5 provide, through the one-stop delivery sys6 tem and in collaboration with the appro7 priate programs and resources of the one8 stop partners, work support activities de9 signed to assist low-wage workers in retain10 ing and enhancing employment. 

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

13 in accessing financial supports for which 

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

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

20 nontraditional hours and the provision of 

21 on-site child care while such activities are 

22 being provided.’’; and 

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

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

4 use up to 10 percent of the funds allocated to a 

5 local area under section 133(b) to carry out in6 cumbent worker training programs in accord7 ance with this paragraph. 

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

9 programs for incumbent workers under this 

10 paragraph shall be carried out by the local area 

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

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

15 ‘‘(C) EMPLOYER MATCH REQUIRED.—

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

18 shall be required to pay a proportion of the 

19 costs of providing the training to the in20 cumbent workers. The Governor shall estab21 lish, or may authorize the local board to es22 tablish, the required portion of such costs, 

23 which shall not be less than—

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

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

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

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

5 employers with 100 or more employees. 

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 U.S.C. 

14 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 youth 
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1 age 19 through 21) for youth activities author2 ized 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 striking 

6 ‘‘; 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 performance 

12 for youth activities authorized under section 

13 129 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 under 

9 this subtitle.’’. 

10 (3) LEVELS OF PERFORMANCE.—Section 

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

12 (A) in clause (i), by striking ‘‘and the cus13 tomer satisfaction indicator described in para14 graph (2)(B)’’; 

15 (B) in clause (ii), by striking ‘‘and the cus16 tomer satisfaction indicator of performance, for 

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

18 (C) in clause (iii)—

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

20 FIRST 3 YEARS’’; and 

21 (ii) by striking ‘‘and the customer sat22 isfaction indicator of performance, for the 

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

24 (D) in clause (iv)—

25 (i) by striking subclause (I); 
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1 (ii) by redesignating subclauses (II) 

2 and (III) as subclauses (I) and (II), respec3 tively; and 

4 (iii) in subclause (I) (as so redesig5 nated)—

6 (I) by striking ‘‘taking into ac7 count’’ and inserting ‘‘which shall be 

8 adjusted based on’’; 

9 (II) by inserting ‘‘, such as unem10 ployment rates and job losses or gains 

11 in particular industries’’ after ‘‘eco12 nomic conditions’’; and 

13 (III) by inserting ‘‘, such as indi14 cators of poor work history, lack of 

15 work experience, low levels of literacy 

16 or English proficiency, disability sta17 tus, including the number of veterans 

18 with disabilities, and welfare depend19 ency’’ after ‘‘program’’; 

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

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

22 (v). 

23 (4) ADDITIONAL INDICATORS.—Section 

24 136(b)(3)(B) is amended by striking ‘‘paragraph 

25 (2)(C)’’ and inserting ‘‘paragraph (2)(B)’’. 
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1 (b) LOCAL PERFORMANCE MEASURES.—Section 

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

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

4 the customer satisfaction indicator of performance de5 scribed in subsection (b)(2)(B),’’; 

6 (2) in paragraph (1)(A)(ii), by striking ‘‘sub7 section (b)(2)(C)’’ and inserting ‘‘subsection 

8 (b)(2)(B)’’; and 

9 (3) by amending paragraph (3) to read as fol10 lows: 

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

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

13 elected official, and the Governor shall ensure such 

14 levels are adjusted based on the specific economic 

15 characteristics (such as unemployment rates and job 

16 losses or gains in particular industries), demographic 

17 characteristics, or other characteristics of the popu18 lation to be served in the local area, such as poor 

19 work history, lack of work experience, low levels of lit20 eracy or English proficiency, disability status, includ21 ing the number of veterans with disabilities, and wel22 fare dependency.’’. 

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

24 amended—
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1 (1) in paragraph (1), by striking ‘‘and the cus2 tomer satisfaction indicator’’ in both places that it 

3 appears; 

4 (2) in paragraph (2)—

5 (A) in subparagraph (E), by striking ‘‘(ex6 cluding participants who received only self-serv7 ice and informational activities); and’’ and in8 serting a semicolon; 

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

10 period and inserting ‘‘; and’’; and 

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

12 ‘‘(G) the number of participants served and 

13 the cost per participant.’’; and 

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

15 ‘‘(4) DATA VALIDATION.—In preparing the re16 ports described in this subsection, the States shall es17 tablish procedures, consistent with guidelines issued 

18 by the Secretary, to ensure the information contained 

19 in the report is valid and reliable.’’. 

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

21 U.S.C. 2871(g)) is amended—

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

23 and 

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

25 and inserting ‘‘section 136(i)’’. 
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1 (e) SANCTIONS FOR LOCAL AREAS.—Section 136(h) 

2 (29 U.S.C. 2871(h)) is amended—

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

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

5 follows: 

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

7 that is subject to a reorganization plan under 

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

9 after receiving notice of the reorganization plan, 

10 appeal to the Governor to rescind or revise such 

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

12 final decision not later than 30 days after the re13 ceipt of the appeal.’’. 

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

15 2871(i)) is amended to read as follows: 

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

17 AREAS.—

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

19 ‘‘(A) IN GENERAL.—From funds appro20 priated under section 174, the Secretary may 

21 award grants to States for exemplary perform22 ance in carrying programs under chapters 4 and 

23 5 of this title. Such awards may be based on 

24 States meeting or exceeding the performance 

25 measures established under this section, on the 
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1 performance of the State in serving special popu2 lations, including the levels of service provided 

3 and the performance outcomes, and such other 

4 factors relating to the performance of the State 

5 under this title as the Secretary determines is 

6 appropriate. 

7 ‘‘(B) USE OF FUNDS.—The funds awarded 

8 to a State under this paragraph may be used to 

9 carry out any activities authorized under chap10 ters 4 and 5 of this title, including demonstra11 tions and innovative programs for special popu12 lations. 

13 ‘‘(2) INCENTIVE GRANTS FOR LOCAL AREAS.—

14 ‘‘(A) IN GENERAL.—From funds reserved 

15 under sections 128(a) and 133(a), the Governor 

16 may award incentive grants to local areas for 

17 exemplary performance with respect to the meas18 ures established under this section and with the 

19 performance of the local area in serving special 

20 populations, including the levels of service and 

21 the performance outcomes. 

22 ‘‘(B) USE OF FUNDS.—The funds awarded 

23 to a local area may be used to carry out activi24 ties authorized for local areas under chapters 4 

25 and 5 of this title, and such demonstration or 
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1 other innovative programs to serve special popu2 lations as may be approved by the Governor.’’. 

3 (g) USE OF CORE INDICATORS FOR OTHER PRO4 GRAMS.—Section 136 (29 U.S.C. 2871) is further amended 

5 by adding at the end the following subsection: 

6 ‘‘(j) USE OF CORE INDICATORS FOR OTHER PRO7 GRAMS.—In addition to the programs carried out under 

8 chapters 4 and 5, and consistent with the requirements of 

9 the applicable authorizing laws, the Secretary shall use the 

10 core indicators of performance described in subsection 

11 (b)(2)(A) to assess the effectiveness of the programs de12 scribed under section 121(b)(1)(B) that are carried out by 

13 the Secretary.’’. 

14 (h) REPEAL OF DEFINITIONS.—Sections 502 and 503 

15 (and the items related to such sections in the table of con16 tents) are repealed. 

17 SEC. 114. AUTHORIZATION OF APPROPRIATIONS. 

18 (a) YOUTH ACTIVITIES.—Section 137(a) (29 U.S.C. 

19 2872(a)) is amended by striking ‘‘such sums as may be nec20 essary for each of fiscal years 1999 through 2003’’ and in21 serting ‘‘$1,250,000,000 for fiscal year 2006 and such sums 

22 as may be necessary for each of fiscal years 2007 through 

23 2011’’. 

24 (b) ADULT EMPLOYMENT AND TRAINING ACTIVI25 TIES.—Section 137(b) (29 U.S.C. 2872(b)) is amended by 
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1 striking ‘‘section 132(a)(1), such sums as may be necessary 

2 for each of fiscal years 1999 through 2003’’ and inserting 

3 ‘‘section 132(a), $3,140,000,000 for fiscal year 2006 and 

4 such sums as may be necessary for each of fiscal years 2007 

5 through 2011’’. 

6 (c) DISLOCATED WORKER EMPLOYMENT AND TRAIN7 ING ACTIVITIES.—Section 137 is further amended by strik8 ing subsection (c). 

9 SEC. 115. JOB CORPS. 

10 (a) INDUSTRY COUNCILS.—Section 154(b) (29 U.S.C. 

11 2894(b)) is amended—

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

13 distant’’; and 

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

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

16 The industry council may include, or otherwise pro17 vide for consultation with, employers from outside the 

18 local area who are likely to hire a significant number 

19 of enrollees from the Job Corps center.’’. 

20 (b) INDICATORS OF PERFORMANCE AND ADDITIONAL

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

22 amended—

23 (1) by amending paragraph (1) to read as fol24 lows: 
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1 ‘‘(1) CORE INDICATORS.—The Secretary shall 

2 annually establish expected levels of performance for 

3 Job Corps centers and the Job Corps program relat4 ing to each of the core indicators for youth identified 

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

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

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

8 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

9 161 (29 U.S.C. 2901) is amended by striking ‘‘1999 through 

10 2003’’ and inserting ‘‘2006 through 2011’’. 

11 SEC. 116. NATIVE AMERICAN PROGRAMS. 

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

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

14 ‘‘(C) DUTIES.—The Council shall advise the 

15 Secretary on the operation and administration 

16 of the programs assisted under this section.’’. 

17 (b) ASSISTANCE TO AMERICAN SAMOANS IN HAWAII.—

18 Section 166 (29 U.S.C. 2911) is further amended by strik19 ing subsection (j). 

20 SEC. 117. MIGRANT AND SEASONAL FARMWORKER PRO21 GRAMS. 

22 Section 167(d) is amended by inserting ‘‘(including 

23 permanent housing)’’ after ‘‘housing’’. 
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1 SEC. 118. VETERANS’ WORKFORCE INVESTMENT PRO2 GRAMS. 

3 Section 168(a)(3)(C) (29 U.S.C. 2913 (a)(3)(C)) is 

4 amended by striking ‘‘section 134(c)’’ and inserting ‘‘sec5 tion 121(e)’’. 

6 SEC. 119. YOUTH CHALLENGE GRANTS. 

7 (a) IN GENERAL.—Section 169 (29 U.S.C. 2914) is 

8 amended to read as follows: 

9 ‘‘SEC. 169. YOUTH CHALLENGE GRANTS. 

10 ‘‘(a) IN GENERAL.—Of the amounts reserved by the 

11 Secretary under section 127(a)(1)(A) for a fiscal year—

12 ‘‘(1) the Secretary shall use not less than 80 per13 cent to award competitive grants under subsection 

14 (b); and 

15 ‘‘(2) the Secretary may use not more than 20 

16 percent to award discretionary grants under sub17 section (c). 

18 ‘‘(b) COMPETITIVE GRANTS TO STATES AND LOCAL

19 AREAS.—

20 ‘‘(1) ESTABLISHMENT.—From the funds de21 scribed in subsection (a)(1), the Secretary shall award 

22 competitive grants to eligible entities to carry out ac23 tivities authorized under this section to assist eligible 

24 youth in acquiring the skills, credentials and employ25 ment experience necessary to succeed in the labor 

26 market. 
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1 ‘‘(2) ELIGIBLE ENTITIES.—Grants under this 

2 subsection may be awarded to States, local boards, re3 cipients of grants under section 166 (relating to Na4 tive American programs), and public or private enti5 ties (including consortia of such entities) applying in 

6 conjunction with local boards. 

7 ‘‘(3) GRANT PERIOD.—The Secretary may make 

8 a grant under this section for a period of 1 year and 

9 may renew the grants for each of the 4 succeeding 

10 years. 

11 ‘‘(4) AUTHORITY TO REQUIRE MATCH.—The Sec12 retary may require that grantees under this sub13 section provide a non-Federal share of the cost of ac14 tivities carried out under a grant awarded under this 

15 subsection. 

16 ‘‘(5) PARTICIPANT ELIGIBILITY.—Youth ages 14 

17 through 19 as of the time the eligibility determination 

18 is made may be eligible to participate in activities 

19 provided under this subsection. 

20 ‘‘(6) USE OF FUNDS.—Funds under this sub21 section may be used for activities that are designed to 

22 assist youth in acquiring the skills, credentials and 

23 employment experience that are necessary to succeed 

24 in the labor market, including the activities identified 
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1 in section 129. The activities may include activities 

2 such as—

3 ‘‘(A) training and internships for out-of4 school youth in sectors of the economy experi5 encing or projected to experience high growth; 

6 ‘‘(B) after-school dropout prevention activi7 ties for in-school youth; 

8 ‘‘(C) activities designed to assist special 

9 youth populations, such as court-involved youth 

10 and youth with disabilities; and 

11 ‘‘(D) activities combining remediation of 

12 academic skills, work readiness training, and 

13 work experience, and including linkages to post14 secondary education, apprenticeships, and ca15 reer-ladder employment. 

16 ‘‘(7) APPLICATIONS.—To be eligible to receive a 

17 grant under this subsection, an eligible entity shall 

18 submit an application to the Secretary at such time, 

19 in such manner, and containing such information as 

20 the Secretary may require, including—

21 ‘‘(A) a description of the activities the eligi22 ble entity will provide to eligible youth under 

23 this subsection; 

24 ‘‘(B) a description of the programs of dem25 onstrated effectiveness on which the provision of 
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1 the activities under subparagraph (A) are based, 

2 and a description of how such activities will ex3 pand the base of knowledge relating to the provi4 sion of activities for youth; 

5 ‘‘(C) a description of the private and pub6 lic, and local and State resources that will be le7 veraged to provide the activities described under 

8 subparagraph (A) in addition to the funds pro9 vided under this subsection; and 

10 ‘‘(D) the levels of performance the eligible 

11 entity expects to achieve with respect to the indi12 cators of performance for youth specified in sec13 tion 136(b)(2)(A)(ii). 

14 ‘‘(8) FACTORS FOR AWARD.—In awarding grants 

15 under this subsection the Secretary may consider the 

16 quality of the proposed project, the goals to be 

17 achieved, the likelihood of successful implementation, 

18 the extent to which the project is based on proven 

19 strategies or the extent to which the project will ex20 pand the knowledge base on activities for youth, and 

21 the additional State, local or private resources that 

22 will be provided. 

23 ‘‘(9) EVALUATION.—The Secretary may reserve 

24 up to 5 percent of the funds described in sub25 section(a)(1) to provide technical assistance to, and 
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1 conduct evaluations of the projects funded under this 

2 subsection (using appropriate techniques as described 

3 in section 172(c)). 

4 ‘‘(c) DISCRETIONARY GRANTS FOR YOUTH ACTIVI5 TIES.—

6 ‘‘(1) IN GENERAL.—From the funds described in 

7 subsection(a)(2), the Secretary may award grants to 

8 eligible entities to provide activities that will assist 

9 youth in preparing for, and entering and retaining, 

10 employment. 

11 ‘‘(2) ELIGIBLE ENTITIES.—Grants under this 

12 subsection may be awarded to public or private enti13 ties that the Secretary determines would effectively 

14 carry out activities relating to youth under this sub15 section. 

16 ‘‘(3) PARTICIPANT ELIGIBILITY.—Youth ages 14 

17 through 19 at the time the eligibility determination is 

18 made may be eligible to participate in activities 

19 under this subsection. 

20 ‘‘(4) USE OF FUNDS.—Funds provided under 

21 this subsection may be used for activities that will as22 sist youth in preparing for, and entering and retain23 ing, employment, including the activities described in 

24 section 129 for out-of-school youth, activities designed 

25 to assist in-school youth to stay in school and gain 
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1 work experience, and such other activities that the 

2 Secretary determines are appropriate. 

3 ‘‘(5) APPLICATIONS.—To be eligible to receive a 

4 grant under this subsection, an eligible entity shall 

5 submit an application to the Secretary at such time, 

6 in such manner, and containing such information as 

7 the Secretary may require. 

8 ‘‘(6) ADDITIONAL REQUIREMENTS.—The Sec9 retary may require the provision of a non-Federal 

10 share for projects funded under this subsection and 

11 may require participation of grantees in evaluations 

12 of such projects, including evaluations using the tech13 niques as described in section 172(c).’’. 

14 (b) CLERICAL AMENDMENT.—The table of contents in 

15 section 1(b) is amended by amending the item related to 

16 section 169 to read as follows:

‘‘Sec. 169. Youth challenge grants.’’.

17 SEC. 120. TECHNICAL ASSISTANCE. 

18 Section 170 (29 U.S.C. 2915) is amended—

19 (1) by striking subsection (b); 

20 (2) by striking 

21 ‘‘(a) GENERAL TECHNICAL ASSISTANCE.—’’; 

22 (3) by redesignating paragraphs (1), (2), and (3) 

23 as subsections (a), (b), and (c) respectively, and mov24 ing such subsections 2 ems to the left; 
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1 (4) in subsection (a) (as redesignated by para2 graph (3))—

3 (A) by inserting ‘‘the training of staff pro4 viding rapid response services, the training of 

5 other staff of recipients of funds under this title, 

6 peer review activities under this title, assistance 

7 regarding accounting and program operation 

8 practices (when such assistance would not be du9 plicative to assistance provided by the State), 

10 technical assistance to States that do not meet 

11 State performance measures described in section 

12 136,’’ after ‘‘localities,’’; and 

13 (B) by striking ‘‘from carrying out activi14 ties’’ and all that follows up to the period and 

15 inserting ‘‘to implement the amendments made 

16 by the Job Training Improvement Act of 2005’’; 

17 and 

18 (5) by inserting, after subsection (c) (as redesig19 nated by paragraph (3)), the following: 

20 ‘‘(d) BEST PRACTICES COORDINATION.—The Secretary 

21 shall establish a system whereby States may share informa22 tion regarding best practices with regard to the operation 

23 of workforce investment activities under this Act.’’. 
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1 SEC. 121. DEMONSTRATION, PILOT, MULTISERVICE, RE2 SEARCH AND MULTI-STATE PROJECTS. 

3 (a) DEMONSTRATION AND PILOT PROJECTS.—Section 

4 171(b) (29 U.S.C. 2916(b)) is amended—

5 (1) in paragraph (1)—

6 (A) by striking ‘‘Under a’’ and inserting 

7 ‘‘Consistent with the priorities specified in the’’; 

8 (B) by amending subparagraphs (A) 

9 through (D) to read as follows: 

10 ‘‘(A) projects that assist national employers 

11 in connecting with the workforce investment sys12 tem established under this title in order to facili13 tate the recruitment and employment of needed 

14 workers and to provide information to such sys15 tem on skills and occupations in demand; 

16 ‘‘(B) projects that promote the development 

17 of systems that will improve the effectiveness and 

18 efficiency of programs carried out under this 

19 title; 

20 ‘‘(C) projects that focus on opportunities for 

21 employment in industries and sectors of indus22 tries that are experiencing or are likely to expe23 rience high rates of growth, including those relat24 ing to information technology; 
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1 ‘‘(D) projects carried out by States and 

2 local areas to test innovative approaches to deliv3 ering employment-related services;’’; 

4 (C) by striking subparagraph (E); 

5 (D) by redesignating subparagraphs (F) 

6 and (G) as subparagraphs (E) and (F), respec7 tively; 

8 (E) in subparagraph (F) (as so redesig9 nated, by striking ‘‘; and’’ and inserting a semi10 colon; 

11 (F) by inserting after subparagraph (F) (as 

12 so redesignated) the following: 

13 ‘‘(G) projects that provide retention grants 

14 to qualified job training programs upon place15 ment or retention of a low-income individual 

16 trained by that program in employment with a 

17 single employer for a period of 1 year, provided 

18 that such employment is providing to the low-in19 come individual an income not less than twice 

20 the poverty line for that individual;’’; 

21 (G) by amending subparagraph (H) to read 

22 as follows: 

23 ‘‘(H) projects that focus on opportunities for 

24 employment in industries and sectors of indus25 tries that are being transformed by technology 
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1 and innovation requiring new knowledge or skill 

2 sets for workers, including advanced manufac3 turing; and’’; and 

4 (H) by adding at the end the following: 

5 ‘‘(I) projects carried out by States and local 

6 areas to assist adults or out of school youth in 

7 starting a small business, including training 

8 and assistance in business or financial manage9 ment or in developing other skills necessary to 

10 operate a business.’’; and 

11 (2) in paragraph (2)—

12 (A) by striking subparagraph (B); and 

13 (B) by redesignating subparagraph (C) as 

14 subparagraph (B). 

15 (b) MULTISERVICE PROJECTS.—Section 171(c)(2)(B) 

16 (29 U.S.C. 2916(c)(2)(B)) is amended to read as follows: 

17 ‘‘(B) NET IMPACT STUDIES AND RE18 PORTS.—The Secretary shall conduct studies to 

19 determine the net impacts of programs, services, 

20 and activities carried out under this title. The 

21 Secretary shall prepare and disseminate to Con22 gress and the public reports containing the re23 sults of such studies.’’. 
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1 SEC. 122. COMMUNITY-BASED JOB TRAINING. 

2 Section 171(d) of the Workforce Investment Act of 1998 

3 is amended to read as follows: 

4 ‘‘(d) COMMUNITY-BASED JOB TRAINING.—

5 ‘‘(1) DEMONSTRATION PROJECT.—In addition to 

6 the demonstration projects under subsection (b), the 

7 Secretary may establish and implement a national 

8 demonstration project designed to develop local solu9 tions to the workforce challenges facing high-growth, 

10 high-skill industries with labor shortages, and in11 crease opportunities for workers to gain access to em12 ployment in high-growth, high-demand occupations 

13 by promoting the establishment of partnerships 

14 among education entities, the workforce investment 

15 system, and businesses in high-growth, high-skill in16 dustries. 

17 ‘‘(2) GRANTS.—In carrying out the demonstra18 tion project under this subsection, the Secretary shall 

19 award competitive grants, in accordance with gen20 erally applicable Federal requirements, to eligible en21 tities to carry out activities authorized under this 

22 subsection. 

23 ‘‘(3) DEFINITIONS.—

24 ‘‘(A) ELIGIBLE ENTITY.—In this subsection, 

25 the term ‘eligible entity’ means a community col-
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1 lege or consortium of community colleges that 

2 shall work in conjunction with—

3 ‘‘(i) the local workforce investment sys4 tem; and 

5 ‘‘(ii) business or businesses in a quali6 fied industry or an industry association in 

7 a qualified industry. 

8 ‘‘(B) QUALIFIED INDUSTRY.—In this sub9 section, the term ‘qualified industry’ means an 

10 industry or economic sector that is projected to 

11 experience significant growth, such as an indus12 try and economic sector that—

13 ‘‘(i) is projected to add substantial 

14 numbers of new jobs to the economy; 

15 ‘‘(ii) has significant impact on the 

16 economy; 

17 ‘‘(iii) impacts the growth of other in18 dustries and economic sectors; 

19 ‘‘(iv) is being transformed by tech20 nology and innovation requiring new 

21 knowledge or skill sets for workers; 

22 ‘‘(v) is a new or emerging industry or 

23 economic sector that is projected to grow; or 

24 ‘‘(vi) has high-skilled occupations and 

25 significant labor shortages in the local area. 
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1 ‘‘(C) COMMUNITY COLLEGE.—As used in 

2 this subsection, the term ‘community college’ 

3 means an institution of higher education, as de4 fined in section 101 of the Higher Education Act 

5 of 1965 (20 U.S.C. 1001), that provides not less 

6 than a 2-year program that is acceptable for full 

7 credit toward a bachelor’s degree, or is a tribally 

8 controlled college or university. 

9 ‘‘(4) AUTHORITY TO REQUIRE NON-FEDERAL

10 SHARE.—The Secretary may require that recipients of 

11 grants under this subsection provide a non-Federal 

12 share, from either cash or noncash resources, of the 

13 costs of activities carried out under a grant awarded 

14 under this subsection. 

15 ‘‘(5) USE OF FUNDS.—Grants awarded under 

16 this subsection may be used for—

17 ‘‘(A) the development, by a community col18 lege, in consultation with representatives of 

19 qualified industries, of rigorous training and 

20 education programs related to employment in a 

21 qualified industry identified in the eligible enti22 ty’s application; 

23 ‘‘(B) training of adults and dislocated 

24 workers in the skills and competencies needed to 

25 obtain or upgrade employment in a qualified in-
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1 dustry identified in the eligible entity’s applica2 tion; 

3 ‘‘(C) disseminating to adults and dislocated 

4 workers, through the one-stop delivery system, in5 formation on high-growth, high-demand occupa6 tions in qualified industries; 

7 ‘‘(D) placing, through the one-stop delivery 

8 system, trained individuals into employment in 

9 qualified industries; and 

10 ‘‘(E) increasing the integration of commu11 nity colleges with activities of businesses and the 

12 one-stop delivery system to meet the training 

13 needs for qualified industries. 

14 ‘‘(6) APPLICATIONS.—To be eligible to receive a 

15 grant under this subsection, an eligible entity shall 

16 submit an application to the Secretary at such time, 

17 in such manner, and containing such information as 

18 the Secretary may require, including—

19 ‘‘(A) a description of the community college 

20 that will offer training under the grant; 

21 ‘‘(B) an economic analysis of the local labor 

22 market to identify high-growth, high-demand in23 dustries and identify the workforce issues faced 

24 by those industries; 
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1 ‘‘(C) a description of the qualified industry 

2 for which training will occur and the avail3 ability of competencies on which training will be 

4 based; 

5 ‘‘(D) an assurance that the application was 

6 developed in consultation with the local board or 

7 boards in the area or areas where the proposed 

8 grant will be used; 

9 ‘‘(E) performance outcomes for the grant, 

10 including expected number of individuals to be 

11 trained in a qualified industry, the employment 

12 and retention rates for such individuals in a 

13 qualified industry, and earnings increases for 

14 such individuals; 

15 ‘‘(F) a description of how the activities 

16 funded by the proposed grant will be coordinated 

17 with activities provided through the one-stop de18 livery system in the local area or areas; and 

19 ‘‘(G) a description of any local or private 

20 resources that will support the activities carried 

21 out under this subsection and allow the entity to 

22 carry out and expand such activities after the 

23 expiration of the grant. 

24 ‘‘(7) FACTORS FOR AWARD OF GRANT.—
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1 ‘‘(A) IN GENERAL.—In awarding grants 

2 under this subsection the Secretary shall con3 sider—

4 ‘‘(i) the extent of public and private 

5 collaboration, including existing partner6 ships among industries, community colleges, 

7 and the public workforce investment system; 

8 ‘‘(ii) the extent to which the grant will 

9 provide job seekers with employment oppor10 tunities in high-growth, high-demand occu11 pations; 

12 ‘‘(iii) the extent to which the grant will 

13 expand the local one-stop delivery system’s 

14 capacity to be demand-driven and respon15 sive to local economic needs; 

16 ‘‘(iv) the extent to which local busi17 nesses commit to hire or retain individuals 

18 who receive training through the grant; and 

19 ‘‘(v) the extent to which the eligible en20 tity commits to make any newly developed 

21 products, such as competencies or training 

22 curriculum, available for distribution na23 tionally. 
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1 ‘‘(B) LEVERAGING OF RESOURCES.—In 

2 awarding grants under this subsection, the Sec3 retary shall also consider—

4 ‘‘(i) the extent to which local or private 

5 resources, in addition to the funds provided 

6 under this subsection, will be made avail7 able to support the activities carried out 

8 under this subsection; and 

9 ‘‘(ii) the ability of an eligible entity to 

10 continue to carry out and expand such ac11 tivities after the expiration of the grant. 

12 ‘‘(C) DISTRIBUTION OF GRANTS.—In 

13 awarding grants under this subsection the Sec14 retary shall ensure an equitable distribution of 

15 such grants across geographically diverse areas. 

16 ‘‘(8) PERFORMANCE ACCOUNTABILITY AND EVAL17 UATION.—

18 ‘‘(A) PERFORMANCE ACCOUNTABILITY.—The 

19 Secretary shall require an eligible entity that re20 ceives a grant under this subsection to report to 

21 the Secretary on the employment outcomes ob22 tained by individuals receiving training under 

23 this subsection using the indicators of perform24 ance identified in the eligible entity’s grant ap25 plication. 
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1 ‘‘(B) EVALUATION.—The Secretary may re2 quire that an eligible entity that receives a grant 

3 under this subsection participate in an evalua4 tion of activities carried out under this sub5 section, including an evaluation using the tech6 niques described in section 172(c).’’. 

7 SEC. 123. PERSONAL REEMPLOYMENT ACCOUNTS. 

8 Section 171 of the Workforce Investment Act of 1998 

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

10 ‘‘(e) PERSONAL REEMPLOYMENT ACCOUNTS.—

11 ‘‘(1) DEFINITION.—In this subsection, the term 

12 ‘State’ means each of the several States of the United 

13 States, the District of Columbia, the Commonwealth 

14 of Puerto Rico, and the United States Virgin Islands. 

15 ‘‘(2) DEMONSTRATION PROJECT.—In addition to 

16 the demonstration projects under subsection (b), the 

17 Secretary may establish and implement a national 

18 demonstration project designed to analyze and pro19 vide data on workforce training programs that accel20 erate the reemployment of unemployed individuals, 

21 promote the retention in employment of such individ22 uals, and provide such individuals with enhanced 

23 flexibility, choice, and control in obtaining intensive 

24 reemployment, training, and supportive services. 

25 ‘‘(3) GRANTS.—
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1 ‘‘(A) IN GENERAL.—In carrying out the 

2 demonstration project, the Secretary shall make 

3 grants, on a competitive basis, to eligible entities 

4 to provide personal reemployment accounts to el5 igible individuals. In awarding grants under 

6 this subsection the Secretary shall take into con7 sideration awarding grants to eligible entities 

8 from diverse geographic areas, including rural 

9 areas. 

10 ‘‘(B) DURATION.—The Secretary shall make 

11 the grants for periods of not less than 2 years 

12 and may renew the grant for each of the suc13 ceeding 3 years. 

14 ‘‘(4) ELIGIBLE ENTITY.—In this subsection, the 

15 term ‘eligible entity’ means—

16 ‘‘(A) a State; or 

17 ‘‘(B) a local board or consortium of local 

18 boards. 

19 ‘‘(5) USE OF FUNDS.—

20 ‘‘(A) IN GENERAL.—An eligible entity that 

21 receives a grant under this subsection shall use 

22 the grant funds to provide, through a local area 

23 or areas, eligible individuals with personal reem24 ployment accounts. An eligible individual may 

25 receive only 1 personal reemployment account. 
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1 ‘‘(B) GEOGRAPHIC AREA AND AMOUNT.—

2 ‘‘(i) IN GENERAL.—The eligible entity 

3 shall establish the amount of a personal re4 employment account for each eligible indi5 vidual participating, which shall be uni6 form throughout the area represented by the 

7 eligible entity, and shall not exceed $3,000. 

8 ‘‘(ii) OPTION FOR STATES.—If the eli9 gible entity is a State, the eligible entity 

10 may choose to use the grant statewide, if 

11 practicable, or only in specified local areas 

12 within a State. 

13 ‘‘(C) ELIGIBLE INDIVIDUALS.—

14 ‘‘(i) IN GENERAL.—Each eligible entity 

15 shall establish eligibility criteria for indi16 viduals for personal reemployment accounts 

17 in accordance with this subparagraph. 

18 ‘‘(ii) ELIGIBILITY CRITERIA REQUIRE19 MENTS.—

20 ‘‘(I) IN GENERAL.—Subject to 

21 subclause (II), an individual shall be 

22 eligible to receive a personal reemploy23 ment account under a grant awarded 

24 under this subsection if, beginning 
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1 after the date of enactment of this sub2 section, the individual—

3 ‘‘(aa) is identified by the 

4 State pursuant to section 

5 303(j)(1) of the Social Security 

6 Act (42 U.S.C. 503(j)(1)) as likely 

7 to exhaust regular unemployment 

8 compensation and in need of job 

9 search assistance to make a suc10 cessful transition to new employ11 ment, or the individual’s unem12 ployment can be attributed in 

13 substantial part to unfair com14 petition from Federal Prison In15 dustries, Incorporated; 

16 ‘‘(bb) is receiving regular un17 employment compensation under 

18 any Federal or State unemploy19 ment compensation program ad20 ministered by the State; and 

21 ‘‘(cc) is eligible for not less 

22 than 20 weeks of regular unem23 ployment compensation described 

24 in item (bb). 
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1 ‘‘(II) ADDITIONAL ELIGIBILITY

2 AND PRIORITY CRITERIA.—An eligible 

3 entity may establish criteria that are 

4 in addition to the criteria described in 

5 subclause (I) for the eligibility of indi6 viduals to receive a personal reemploy7 ment account under this subsection. An 

8 eligible entity may also establish cri9 teria for priority in the provision of a 

10 personal reemployment account to such 

11 eligible individuals under a grant 

12 awarded under this subsection. 

13 ‘‘(iii) TRANSITION RULE.—

14 ‘‘(I) PREVIOUSLY IDENTIFIED AS

15 LIKELY TO EXHAUST UNEMPLOYMENT

16 COMPENSATION.—

17 ‘‘(aa) IN GENERAL.—At the 

18 option of the eligible entity, and 

19 subject to item (bb), an individual 

20 may be eligible to receive a per21 sonal reemployment account 

22 under this subsection if the indi23 vidual—

24 ‘‘(AA) during the 13-

25 week period ending the week 
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1 prior to the date of the enact2 ment of the subsection, was 

3 identified by the State pursu4 ant to section 303(j)(1) of the 

5 Social Security Act (42 

6 U.S.C. 503(j)(1)) as likely to 

7 exhaust regular unemploy8 ment compensation and in 

9 need of job search assistance 

10 to make a successful transi11 tion to new employment; and 

12 ‘‘(BB) otherwise meets 

13 the requirements of clause 

14 (ii)(I)(bb) and (cc). 

15 ‘‘(bb) ADDITIONAL ELIGI16 BILITY AND PRIORITY CRITERIA.—

17 An eligible entity may establish 

18 criteria that is in addition to the 

19 criteria described in item (aa) for 

20 the eligibility of individuals to re21 ceive a personal reemployment ac22 count under this subsection. An 

23 eligible entity may also establish 

24 criteria for priority in the provi25 sion of such accounts to such eligi-
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1 ble individuals under this sub2 section. 

3 ‘‘(II) PREVIOUSLY EXHAUSTED

4 UNEMPLOYMENT COMPENSATION.—At 

5 the option of the eligible entity, an in6 dividual may be eligible to receive a 

7 personal reemployment account under 

8 a grant awarded under this subsection 

9 if the individual—

10 ‘‘(aa) during the 26-week pe11 riod ending the week prior to the 

12 date of the enactment of this sub13 section, exhausted all rights to 

14 any unemployment compensation; 

15 and 

16 ‘‘(bb)(AA) is enrolled in 

17 training and needs additional 

18 support to complete such training, 

19 with a priority of service to be 

20 provided to such individuals who 

21 are training for shortage occupa22 tions or high-growth industries; or 

23 ‘‘(BB) is separated from em24 ployment in an industry or occu25 pation that has experienced de-
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1 clining employment, or no longer 

2 provides any employment, in the 

3 local labor market during the 2-

4 year period ending on the date of 

5 the determination of eligibility of 

6 the individual under this sub7 paragraph. 

8 ‘‘(iv) NO INDIVIDUAL ENTITLEMENT.—

9 Nothing in this subsection shall be construed 

10 to entitle any individual to receive a per11 sonal reemployment account. 

12 ‘‘(D) LIMITATIONS.—

13 ‘‘(i) INFORMATION AND ATTESTA14 TION.—Prior to the establishment of a per15 sonal reemployment account for an eligible 

16 individual, the eligible entity receiving a 

17 grant, through the one-stop delivery system 

18 in the participating local area or areas, 

19 shall ensure that the individual—

20 ‘‘(I) is informed of the require21 ments applicable to the personal reem22 ployment account, including the allow23 able uses of funds from the account, the 

24 limitations on access to services de25 scribed in paragraph (7)(A)(iii) and a 
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1 description of such services, and the 

2 conditions for receiving a reemploy3 ment bonus; 

4 ‘‘(II) has the option to develop a 

5 personal reemployment plan which will 

6 identify the employment goals and ap7 propriate combination of services se8 lected by the individual to achieve the 

9 employment goals; and 

10 ‘‘(III) signs an attestation that 

11 the individual has been given the op12 tion to develop a personal reemploy13 ment plan in accordance with sub14 clause (II), will comply with the re15 quirements under this subsection relat16 ing to the personal reemployment ac17 counts, and will reimburse the account 

18 or, if the account has been terminated, 

19 the grant awarded under this sub20 section, for any amounts expended 

21 from the account that are not allow22 able. 

23 ‘‘(ii) PERIODIC INTERVIEWS.—If a re24 cipient exhausts his or her rights to any un25 employment compensation, and the recipi-
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1 ent has a remaining balance in his or her 

2 personal reemployment account, the one3 stop delivery system shall conduct periodic 

4 interviews with the recipient to assist the 

5 recipient in meeting his or her individual 

6 employment goals. 

7 ‘‘(iii) USE OF PERSONAL REEMPLOY8 MENT ACCOUNTS.—The eligible entity re9 ceiving a grant shall ensure that eligible in10 dividuals receiving a personal reemploy11 ment account use the account in accordance 

12 with paragraph (7). 

13 ‘‘(6) APPLICATION FOR GRANTS.—To be eligible 

14 to receive a grant under this subsection, an eligible 

15 entity shall submit an application to the Secretary at 

16 such time, in such manner, and containing such in17 formation as the Secretary may require, including—

18 ‘‘(A) if the eligible entity is a State—

19 ‘‘(i) assurance that the application was 

20 developed in conjunction with the local 

21 board or boards and chief elected officials 

22 where the personal reemployment accounts 

23 shall be made available; and 

24 ‘‘(ii) a description of the methods and 

25 procedures for providing funds to local 
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1 areas where the personal reemployment ac2 counts shall be made available; 

3 ‘‘(B) a description of the criteria and meth4 ods to be used for determining eligibility for the 

5 personal reemployment account, including 

6 whether the eligible entity intends to include the 

7 optional categories described in paragraph 

8 (5)(C)(iii), and the additional criteria and pri9 ority for service that the eligible entity intends 

10 to apply, if any, pursuant to paragraph 

11 (5)(C)(ii)(II); 

12 ‘‘(C) a description of the methods or proce13 dures to be used to provide eligible individuals 

14 information relating to services and providers; 

15 ‘‘(D) a description of safeguards to ensure 

16 that funds from the personal reemployment ac17 counts are used for purposes authorized under 

18 this subsection and to ensure the quality and in19 tegrity of services and providers, consistent with 

20 the purpose of providing eligible individuals 

21 with enhanced flexibility, choice, and control in 

22 obtaining intensive reemployment, training, and 

23 supportive services; 

24 ‘‘(E) a description of how the eligible entity 

25 will coordinate the activities carried out under 
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1 this subsection with the employment and train2 ing activities carried out under section 134 and 

3 other activities carried out by local boards 

4 through the one-stop delivery system in the State 

5 or local area; and 

6 ‘‘(F) an assurance that the eligible entity 

7 will comply with any evaluation and reporting 

8 requirements the Secretary may require. 

9 ‘‘(7) USE OF PERSONAL REEMPLOYMENT AC10 COUNTS.—

11 ‘‘(A) ALLOWABLE ACTIVITIES.—

12 ‘‘(i) IN GENERAL.—Subject to the re13 quirements contained in clauses (ii) and 

14 (iii), a recipient of a personal reemploy15 ment account may use amounts in a per16 sonal reemployment account to purchase 1 

17 or more of the following: 

18 ‘‘(I) Intensive services, including 

19 those type of services specified in sec20 tion 134(d)(3)(C). 

21 ‘‘(II) Training services, including 

22 those types of services specified in sec23 tion 134(d)(4)(D). 

24 ‘‘(III) Supportive services, except 

25 for needs related payments. 
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1 ‘‘(ii) DELIVERY OF SERVICES.—The 

2 following requirements relating to delivery 

3 of services shall apply to the grants under 

4 this subsection: 

5 ‘‘(I) Recipients may use funds 

6 from the personal reemployment ac7 count to purchase the services described 

8 in clause (i) through the one-stop deliv9 ery system on a fee-for-service basis, or 

10 through other providers, consistent 

11 with the safeguards described in para12 graph (6)(D). 

13 ‘‘(II) The eligible entity, through 

14 the one-stop delivery system in the par15 ticipating local area, may pay costs 

16 for such services directly on behalf of 

17 the recipient, through a voucher sys18 tem, or by reimbursement to the recipi19 ent upon receipt of appropriate cost 

20 documentation. 

21 ‘‘(III) Each eligible entity, 

22 through the one-stop delivery system in 

23 the participating local area, shall 

24 make available to recipients informa25 tion on training providers specified in 
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1 section 134(d)(4)(F)(ii), information 

2 available to the one-stop delivery sys3 tem on providers of the intensive and 

4 supportive services described in clause 

5 (i), and information relating to occu6 pations in demand in the local area. 

7 ‘‘(iii) LIMITATIONS.—The following 

8 limitations shall apply with respect to per9 sonal reemployment accounts under this 

10 subsection: 

11 ‘‘(I) Amounts in a personal reem12 ployment account may be used for up 

13 to 1 year from the date of the establish14 ment of the account. 

15 ‘‘(II) Each recipient shall submit 

16 cost documentation as required by the 

17 one-stop delivery system. 

18 ‘‘(III) For the 1-year period fol19 lowing the establishment of the ac20 count, recipients may not receive in21 tensive, supportive, or training services 

22 funded under this title except on a fee23 for-services basis as specified in clause 

24 (ii)(I). 
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1 ‘‘(IV) Amounts in a personal re2 employment account shall be non3 transferable. 

4 ‘‘(B) REEMPLOYMENT BONUS.—

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

6 (ii)—

7 ‘‘(I) if a recipient determined eli8 gible under paragraph (5)(C)(ii) ob9 tains full-time employment before the 

10 13th week of unemployment for which 

11 unemployment compensation is paid, 

12 the balance of his or her personal reem13 ployment account shall be provided di14 rectly to the recipient in cash; and 

15 ‘‘(II) if a recipient determined eli16 gible under paragraph (5)(C)(iii) ob17 tains full-time employment before the 

18 end of the 13th week after the date on 

19 which the account is established, the 

20 balance of his or her personal reem21 ployment account shall be provided di22 rectly to the recipient in cash. 

23 ‘‘(ii) LIMITATIONS.—The following 

24 limitations shall apply with respect to a re25 cipient described in clause (i): 
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1 ‘‘(I) 60 percent of the remaining 

2 personal reemployment account bal3 ance shall be paid to the recipient at 

4 the time of employment. 

5 ‘‘(II) 40 percent of the remaining 

6 personal reemployment account shall 

7 be paid to the recipient after 26 weeks 

8 of employment retention. 

9 ‘‘(iii) EXCEPTION REGARDING SUBSE10 QUENT EMPLOYMENT.—If a recipient de11 scribed in clause (i) subsequently becomes 

12 unemployed due to a lack of work after re13 ceiving the portion of the reemployment 

14 bonus specified under clause (ii)(I), the in15 dividual may use the amount remaining in 

16 the personal reemployment account for the 

17 purposes described in subparagraph (A) but 

18 may not be eligible for additional cash pay19 ments under this subparagraph. 

20 ‘‘(8) PROGRAM INFORMATION AND EVALUA21 TION.—

22 ‘‘(A) INFORMATION.—The Secretary may 

23 require from eligible entities the collection and 

24 reporting on such financial, performance, and 

25 other program-related information as the Sec-
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1 retary determines is appropriate to carry out 

2 this subsection, including the evaluation de3 scribed in subparagraph (B). 

4 ‘‘(B) EVALUATION.—

5 ‘‘(i) IN GENERAL.—The Secretary, pur6 suant to the authority provided under sec7 tion 172, shall, directly or through grants, 

8 contracts, or cooperative agreement with ap9 propriate entities, conduct an evaluation of 

10 the activities carried out under any grants 

11 awarded under this subsection. 

12 ‘‘(ii) REPORT.—The report to Congress 

13 under section 172(e) relating to the results 

14 of the evaluations required under section 

15 172 shall include the recommendation of the 

16 Secretary with respect to the use of personal 

17 reemployment account as a mechanism to 

18 assist individuals in obtaining and retain19 ing employment.’’. 

20 SEC. 124. TRAINING FOR REALTIME WRITERS. 

21 Section 171 of the Workforce Investment Act of 1998 

22 is further amended by adding at the end the following: 

23 ‘‘(f) TRAINING FOR REALTIME WRITERS.—

24 ‘‘(1) IN GENERAL.—The Secretary may make 

25 competitive grants to eligible entities under para-
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1 graph (2)(A) to promote training and placement of 

2 individuals as realtime writers in order to meet the 

3 requirements for closed captioning of video program4 ming set forth in section 723 of the Communications 

5 Act of 1934 (47 U.S.C. 613) and the rules prescribed 

6 thereunder. 

7 ‘‘(2) LIMITATIONS.—

8 ‘‘(A) ELIGIBLE ENTITIES.—For purposes of 

9 this subsection, an eligible entity is a court re10 porting or realtime writing training program 

11 that— 

12 ‘‘(i) can document and demonstrate to 

13 the Secretary that it meets appropriate 

14 standards of educational and financial ac15 countability, with a curriculum capable of 

16 training realtime writers, qualified to pro17 vide captioning services and includes ar18 rangements to assist in the placement of 

19 such individuals in employment as realtime 

20 writers; and 

21 ‘‘(ii) is and entity that— 

22 ‘‘(I) is an eligible provider of 

23 training services under section 122; or 

24 ‘‘(II) is accredited by an accred25 iting agency recognized by the Depart-
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1 ment of Education; and participates in 

2 student aid programs under title IV of 

3 the Higher Education Act of 1965 (20 

4 U.S.C. 1070 et seq.). 

5 ‘‘(B) PRIORITY IN GRANTS.—In determining 

6 whether to award grants under this section, the 

7 Secretary shall give priority to eligible entities 

8 that— 

9 ‘‘(i) demonstrate the greatest ability to 

10 increase their capacity to train realtime 

11 writers; 

12 ‘‘(ii) demonstrate the most promising 

13 collaboration with local workforce invest14 ment boards, local educational institutions, 

15 businesses, labor organizations, or other 

16 community-based organization having the 

17 potential to train or provide job placement 

18 assistance to realtime writers; and 

19 ‘‘(iii) propose the most promising and 

20 innovative approaches for initiating or ex21 panding training or job placement assist22 ance efforts for realtime writers. 

23 ‘‘(C) DURATION OF GRANT.—A grant under 

24 this subsection shall be for a period of 2 years. 
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1 ‘‘(D) MAXIMUM AMOUNT OF GRANT.—The 

2 amount of a grant provided under paragraph (1) 

3 to an entity eligible may not exceed $1,500,000. 

4 ‘‘(3) APPLICATION.—To receive a grant under 

5 paragraph (1), an eligible entity shall submit an ap6 plication to the Secretary at such time and in such 

7 manner as the Secretary may require. The applica8 tion shall include— 

9 ‘‘(A) a description of the training and as10 sistance to be funded using the grant amount, 

11 including how such training and assistance will 

12 increase the number of realtime writers; 

13 ‘‘(B) a description of performance measures 

14 to be utilized to evaluate the progress of individ15 uals receiving such training and assistance in 

16 matters relating to enrollment, completion of 

17 training, and job placement and retention; 

18 ‘‘(C) a description of the manner in which 

19 the eligible entity intends to continue providing 

20 the training and assistance to be funded by the 

21 grant after the end of the grant period, including 

22 any partnerships or arrangements established for 

23 that purpose; 

24 ‘‘(D) a description of how the eligible entity 

25 will work with local workforce investment boards 
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1 to ensure that training and assistance to be 

2 funded with the grant will further local work3 force goals, including the creation of educational 

4 opportunities for individuals who are from eco5 nomically disadvantaged backgrounds or are dis6 located workers; and 

7 ‘‘(E) such other information as the Sec8 retary may require. 

9 ‘‘(4) USE OF FUNDS.—

10 ‘‘(A) IN GENERAL.—An eligible entity re11 ceiving a grant under paragraph (1) shall use 

12 the grant amount for purposes relating to the re13 cruitment, training, assistance, and job place14 ment of individuals (including individuals who 

15 have completed a court reporting training pro16 gram) as realtime writers, including—

17 ‘‘(i) recruitment activities; 

18 ‘‘(ii) the provision of training grants 

19 to individuals for training in realtime writ20 ing; 

21 ‘‘(iii) distance learning; 

22 ‘‘(iv) design and development of cur23 riculum to more effectively train realtime 

24 writing skills and education in the knowl-
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1 edge bases necessary for the delivery of high 

2 quality closed captioning services; 

3 ‘‘(v) assistance in job placement for 

4 upcoming and recent graduates with all 

5 types of captioning employers; and 

6 ‘‘(vi) encouragement of individuals 

7 with disabilities to pursue a career in 

8 realtime writing. 

9 ‘‘(B) ADMINISTRATIVE COSTS.—The recipi10 ent of a grant under paragraph (1) may not use 

11 more than 5 percent of the grant amount to pay 

12 administrative costs associated with activities 

13 funded by the grant. 

14 ‘‘(5) REPORTS.—Each eligible entity receiving a 

15 grant under paragraph (1) shall submit to the Sec16 retary, at the end of each year of the grant period, 

17 a report which shall include—

18 ‘‘(A) a description of the use of grant 

19 amounts by the entity during such year; 

20 ‘‘(B) an assessment, utilizing the perform21 ance measures submitted by the entity in the ap22 plication for the grant under paragraph (2)(D), 

23 of the effectiveness of activities carried out using 

24 such funds in increasing the number of realtime 

25 writers; and 
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1 ‘‘(C) a description of the best practices iden2 tified by the entity as a result of the grant for 

3 increasing the number of individuals who are 

4 trained, employed, and retained in employment 

5 as realtime writers.’’. 

6 SEC. 125. BUSINESS PARTNERSHIP GRANTS. 

7 Section 171 (29 U.S.C. 2916) is further amended by 

8 adding at the end the following: 

9 ‘‘(g) BUSINESS PARTNERSHIP GRANTS.—

10 ‘‘(1) DEMONSTRATION PROJECT.—In addition to 

11 the demonstration projects under subsection (b), (d), 

12 and (e), the Secretary may make up to 10 competitive 

13 grants per year to eligible entities to expand local sec14 tor-focused training and workforce development in 

15 high growth, high wage industry sectors in one or 

16 more regions of particular States. 

17 ‘‘(2) ELIGIBLE ENTITIES.—For purposes of this 

18 subsection an eligible entity is a business or business 

19 partnership, including associations of single or re20 lated industry employers and employee representa21 tives, consortia of such employers, employee represent22 atives, and workforce development community-based 

23 organizations, and higher education institutions. 

24 ‘‘(3) USE OF FUNDS.—Grants awarded under 

25 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 businesses 

8 to public workforce systems and service providers 

9 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 grants 

13 under this subsection, the performance results of each 

14 such grant, and the percentage and amount of grants 

15 awarded to eligible entities for programs serving each 

16 of the following populations: incumbent workers, dis17 located workers, adults, and youth.’’. 

18 SEC. 126. NATIONAL DISLOCATED WORKER GRANTS. 

19 (a) IN GENERAL.—Section 173 (29 U.S.C. 2916) is 

20 amended—

21 (1) by amending the designation and heading to 

22 read as follows: 

23 ‘‘SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.’’; and 

24 (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. 2918) 

8 is further amended—

9 (1) by striking subsection (b) and redesignating 

10 subsections (c) and (d) as subsections (b) and (c), re11 spectively; 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 (b)(1) 

17 of this section) is amended by striking ‘‘, and other entities’’ 

18 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. 2918(b)(2)(A)) 

21 (as redesignated by subsection (b)(1) of this section) is 

22 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 full6 time National Guard duty, or who was re7 cently separated from such duties, and such 

8 spouse is in need of employment and train9 ing assistance to obtain or retain employ10 ment.’’. 

11 (e) CONFORMING AMENDMENT.—The table of contents 

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

13 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 to 

25 be appropriated to carry out section 171, 
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1 $211,000,000 for fiscal year 2006 and such sums 

2 as may be necessary for fiscal years 2007 

3 through 2011. 

4 ‘‘(B) RESERVATION FOR COMMUNITY-BASED

5 JOB TRAINING.—Of the amount appropriated 

6 pursuant to subparagraph (A), the Secretary 

7 shall reserve up to $125,000,000 for carrying out 

8 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. 2931(e)) 

19 is amended by striking ‘‘training for’’ and inserting ‘‘the 

20 entry into employment, retention in employment, or in21 creases 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 the 

25 Workforce of the House of Representatives and the Com-
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1 mittee on Health, Education, Labor, and Pensions of the 

2 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 REGARD7 ING PARTICIPATION, BENEFITS, AND EMPLOYMENT.—

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

9 subparagraph (B), no individual shall be ex10 cluded from participation in, denied the benefits 

11 of, subjected to discrimination under, or denied 

12 employment in the administration of or in con13 nection with, any such program or activity be14 cause of race, color, religion, sex (except as other15 wise permitted under title IX of the Education 

16 Amendments of 1972), national origin, age, dis17 ability, or political affiliation or belief. 

18 ‘‘(B) EXEMPTION FOR RELIGIOUS ORGANI19 ZATIONS.—Subparagraph (A) shall not apply to 

20 a recipient of financial assistance under this 

21 title that is a religious corporation, association, 

22 educational institution, or society, with respect 

23 to the employment of individuals of a particular 

24 religion to perform work connected with the car25 rying on by such corporation, association, edu-
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1 cational institution, or society of its activities. 

2 Such recipients shall comply with the other re3 quirements contained in subparagraph (A).’’. 

4 SEC. 130. ADMINISTRATIVE PROVISIONS. 

5 (a) PROGRAM YEAR.—Section 189(g)(1) (29 U.S.C. 

6 2939(g)(1)) is amended to read as follows: 

7 ‘‘(1) IN GENERAL.—Appropriations for any fis8 cal year for programs and activities carried out 

9 under this title shall be available for obligation only 

10 on the basis of a program year. The program year 

11 shall begin on July 1 in the fiscal year for which the 

12 appropriation is made.’’. 

13 (b) AVAILABILITY.—Section 189(g)(2) (29 U.S.C. 

14 2939(g)(2)) is amended by striking ‘‘each State’’ and insert15 ing ‘‘each recipient’’. 

16 (c) GENERAL WAIVERS.—Section 189(i)(4) (29 U.S.C. 

17 2939(i)(4)) is amended—

18 (1) in subparagraph (A), in the matter preceding 

19 clause (i), by inserting ‘‘, or in accordance with sub20 paragraph (D)’’ after ‘‘subparagraph (B)’’; and 

21 (2) by adding the following subparagraph: 

22 ‘‘(D) EXPEDITED PROCESS FOR EXTENDING

23 APPROVED WAIVERS TO ADDITIONAL STATES.—

24 In lieu of the requirements of subparagraphs (B) 

25 and (C), the Secretary may establish an expe-
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1 dited procedure for the purpose of extending to 

2 additional States the waiver of statutory or regu3 latory requirements that have been approved for 

4 a State pursuant to a request under subpara5 graph (B). Such procedure shall ensure that the 

6 extension of such waivers to additional States 

7 are accompanied by appropriate conditions re8 lating the implementation of such waivers.’’. 

9 SEC. 131. GENERAL PROGRAM REQUIREMENTS. 

10 Section 195 (29 U.S.C. 2945) is amended by adding 

11 at the end the following new paragraphs: 

12 ‘‘(14) Funds provided under this title shall not 

13 be used to establish or operate stand-alone fee-for-serv14 ice enterprises that compete with private sector em15 ployment agencies within the meaning of section 

16 701(c) of the Civil Rights Act of 1964 (42 U.S.C. 

17 2000e(c)). For purposes of this paragraph, such an 

18 enterprise does not include one-stop centers. 

19 ‘‘(15) Any report required to be submitted to 

20 Congress, or to a Committee of Congress, under this 

21 title shall be submitted to both the chairmen and 

22 ranking minority members of the Committee on Edu23 cation and the Workforce of the House of Representa24 tives and the Committee on Health, Education, 

25 Labor, and Pensions of the Senate.’’. 
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1 TITLE II—ADULT EDUCATION, 

2 BASIC SKILLS, AND FAMILY 

3 LITERACY EDUCATION 

4 SEC. 201. TABLE OF CONTENTS. 

5 The table of contents in section 1(b) is amended by 

6 amending the items relating to title II to read as follows:

‘‘TITLE II—ADULT 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.’’.

7 SEC. 202. AMENDMENT. 

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

9 as follows: 
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1 ‘‘TITLE II—ADULT EDUCATION, 

2 BASIC SKILLS, AND FAMILY 

3 LITERACY EDUCATION 

4 ‘‘SEC. 201. SHORT TITLE. 

5 ‘‘This title may be cited as the ‘Adult Education, Basic 

6 Skills, and Family Literacy Education Act’. 

7 ‘‘SEC. 202. PURPOSE. 

8 ‘‘It is the purpose of this title to provide instructional 

9 opportunities for adults seeking to improve their literacy 

10 skills, including their basic reading, writing, speaking, and 

11 math skills, and support States and local communities in 

12 providing, on a voluntary basis, adult education, basic 

13 skills, and family literacy education programs, in order 

14 to—

15 ‘‘(1) increase the literacy of adults, including the 

16 basic reading, writing, speaking, and math skills, to 

17 a level of proficiency necessary for adults to obtain 

18 employment and self-sufficiency and to successfully 

19 advance in the workforce; 

20 ‘‘(2) assist adults in the completion of a sec21 ondary school education (or its equivalent) and the 

22 transition to a postsecondary educational institution; 

23 ‘‘(3) assist adults who are parents to enable them 

24 to support the educational development of their chil25 dren and make informed choices regarding their chil-
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1 dren’s education including, through instruction in 

2 basic reading, writing, speaking, and math skills; and 

3 ‘‘(4) assist immigrants who are not proficient in 

4 English in improving their reading, writing, speak5 ing, and math skills and acquiring an understanding 

6 of the American free enterprise system, individual 

7 freedom, and the responsibilities of citizenship. 

8 ‘‘SEC. 203. DEFINITIONS. 

9 ‘‘In this title: 

10 ‘‘(1) ADULT EDUCATION, BASIC SKILLS, AND

11 FAMILY LITERACY EDUCATION PROGRAMS.—The term 

12 ‘adult education, basic skills, and family literacy edu13 cation programs’ means a sequence of academic in14 struction and educational services below the postsec15 ondary level that increase an individual’s ability to 

16 read, write, and speak in English and perform math17 ematical computations leading to a level of pro18 ficiency equivalent to at least a secondary school com19 pletion that is provided for individuals—

20 ‘‘(A) who are at least 16 years of age; 

21 ‘‘(B) who are not enrolled or required to be 

22 enrolled in secondary school under State law; 

23 and 

24 ‘‘(C) who—
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1 ‘‘(i) lack sufficient mastery of basic 

2 reading, writing, speaking, and math skills 

3 to enable the individuals to function effec4 tively in society; 

5 ‘‘(ii) do not have a secondary school 

6 diploma, General Educational Development 

7 credential (GED), or other State-recognized 

8 equivalent and have not achieved an equiva9 lent level of education; or 

10 ‘‘(iii) are unable to read, write, or 

11 speak the English language. 

12 ‘‘(2) ELIGIBLE AGENCY.—The term ‘eligible 

13 agency’—

14 ‘‘(A) means the primary entity or agency in 

15 a State or an outlying area responsible for ad16 ministering or supervising policy for adult edu17 cation, basic skills, and family literacy edu18 cation programs in the State or outlying area, 

19 respectively, consistent with the law of the State 

20 or outlying area, respectively; and 

21 ‘‘(B) may be the State educational agency, 

22 the State agency responsible for administering 

23 workforce investment activities, or the State 

24 agency responsible for administering community 

25 or technical colleges. 
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1 ‘‘(3) ELIGIBLE PROVIDER.—The term ‘eligible 

2 provider’ means—

3 ‘‘(A) a local educational agency; 

4 ‘‘(B) a community-based or faith-based or5 ganization of demonstrated effectiveness; 

6 ‘‘(C) a volunteer literacy organization of 

7 demonstrated effectiveness; 

8 ‘‘(D) an institution of higher education; 

9 ‘‘(E) a public or private educational agen10 cy; 

11 ‘‘(F) a library; 

12 ‘‘(G) a public housing authority; 

13 ‘‘(H) an institution that is not described in 

14 any of subparagraphs (A) through (G) and has 

15 the ability to provide adult education, basic 

16 skills, and family literacy education programs to 

17 adults and families; or 

18 ‘‘(I) a consortium of the agencies, organiza19 tions, institutions, libraries, or authorities de20 scribed in any of subparagraphs (A) through 

21 (H). 

22 ‘‘(4) ENGLISH LANGUAGE ACQUISITION PRO23 GRAM.—The term ‘English language acquisition pro24 gram’ means a program of instruction designed to 

25 help individuals with limited English proficiency 
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1 achieve competence in reading, writing, and speaking 

2 the English language. 

3 ‘‘(5) ESSENTIAL COMPONENTS OF READING IN4 STRUCTION.—The term ‘essential components of read5 ing instruction’ has the meaning given to that term 

6 in section 1208 of the Elementary and Secondary 

7 Education Act of 1965. 

8 ‘‘(6) FAMILY LITERACY EDUCATION PROGRAM.—

9 The term ‘family literacy education program’ means 

10 an educational program that—

11 ‘‘(A) assists parents and students, on a vol12 untary basis, in achieving the purposes of this 

13 title as described in section 202; and 

14 ‘‘(B) is of sufficient intensity in terms of 

15 hours and of sufficient duration to make sustain16 able changes in a family, is based upon scientific 

17 research-based principles, and, for the purpose of 

18 substantially increasing the ability of parents 

19 and children to read, write, and speak English, 

20 integrates—

21 ‘‘(i) interactive literacy activities be22 tween parents and their children; 

23 ‘‘(ii) training for parents regarding 

24 how to be the primary teacher for their chil-
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1 dren and full partners in the education of 

2 their children; 

3 ‘‘(iii) parent literacy training that 

4 leads to economic self-sufficiency; and 

5 ‘‘(iv) an age-appropriate education to 

6 prepare children for success in school and 

7 life experiences. 

8 ‘‘(7) GOVERNOR.—The term ‘Governor’ means 

9 the chief executive officer of a State or outlying area. 

10 ‘‘(8) INDIVIDUAL WITH A DISABILITY.—

11 ‘‘(A) IN GENERAL.—The term ‘individual 

12 with a disability’ means an individual with any 

13 disability (as defined in section 3 of the Ameri14 cans with Disabilities Act of 1990). 

15 ‘‘(B) INDIVIDUALS WITH DISABILITIES.—

16 The term ‘individuals with disabilities’ means 

17 more than one individual with a disability. 

18 ‘‘(9) INDIVIDUAL WITH LIMITED ENGLISH PRO19 FICIENCY.—The term ‘individual with limited 

20 English proficiency’ means an adult or out-of-school 

21 youth who has limited ability in reading, writing, 

22 speaking, or understanding the English language, 

23 and—

24 ‘‘(A) whose native language is a language 

25 other than English; or 
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1 ‘‘(B) who lives in a family or community 

2 environment where a language other than 

3 English is the dominant language. 

4 ‘‘(10) INSTITUTION OF HIGHER EDUCATION.—

5 The term ‘institution of higher education’ has the 

6 meaning given to that term in section 101 of the 

7 Higher Education Act of 1965. 

8 ‘‘(11) LITERACY.—The term ‘literacy’ means an 

9 individual’s ability to read, write, and speak in 

10 English, compute, and solve problems at a level of 

11 proficiency necessary to obtain employment and to 

12 successfully make the transition to postsecondary edu13 cation. 

14 ‘‘(12) LOCAL EDUCATIONAL AGENCY.—The term 

15 ‘local educational agency’ has the meaning given to 

16 that term in section 9101 of the Elementary and Sec17 ondary Education Act of 1965. 

18 ‘‘(13) OUTLYING AREA.—The term ‘outlying 

19 area’ has the meaning given to that term in section 

20 101 of this Act. 

21 ‘‘(14) POSTSECONDARY EDUCATIONAL INSTITU22 TION.—The term ‘postsecondary educational institu23 tion’ means—

24 ‘‘(A) an institution of higher education that 

25 provides not less than a 2-year program of in-
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1 struction that is acceptable for credit toward a 

2 bachelor’s degree; 

3 ‘‘(B) a tribally controlled community col4 lege; or 

5 ‘‘(C) a nonprofit educational institution of6 fering certificate or apprenticeship programs at 

7 the postsecondary level. 

8 ‘‘(15) READING.—The term ‘reading’ has the 

9 meaning given to that term in section 1208 of the El10 ementary and Secondary Education Act of 1965. 

11 ‘‘(16) SCIENTIFICALLY BASED RESEARCH.—The 

12 term ‘scientifically based research’ has the meaning 

13 given to that term in section 9101 of the Elementary 

14 and Secondary Education Act of 1965. 

15 ‘‘(17) SECRETARY.—The term ‘Secretary’ means 

16 the Secretary of Education. 

17 ‘‘(18) STATE.—The term ‘State’ means each of 

18 the several States of the United States, the District of 

19 Columbia, and the Commonwealth of Puerto Rico. 

20 ‘‘(19) STATE EDUCATIONAL AGENCY.—The term 

21 ‘State educational agency’ has the meaning given to 

22 that term in section 9101 of the Elementary and Sec23 ondary Education Act of 1965. 

24 ‘‘(20) WORKPLACE LITERACY PROGRAM.—The 

25 term ‘workplace literacy program’ means an edu-
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1 cational program that is offered in collaboration be2 tween eligible providers and employers or employee 

3 organizations for the purpose of improving the pro4 ductivity of the workforce through the improvement of 

5 reading, writing, speaking, and math skills. 

6 ‘‘SEC. 204. HOME SCHOOLS. 

7 ‘‘Nothing in this title shall be construed to affect home 

8 schools, whether or not a home school is treated as a home 

9 school or a private school under State law, or to compel 

10 a parent engaged in home schooling to participate in an 

11 English language acquisition program, a family literacy 

12 education program, or an adult education, basic skills, and 

13 family literacy education program. 

14 ‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS. 

15 ‘‘There are authorized to be appropriated to carry out 

16 this title $590,127,000 for fiscal year 2006 and such sums 

17 as may be necessary for fiscal years 2007 through 2011. 

18 ‘‘CHAPTER 1—FEDERAL PROVISIONS 

19 ‘‘SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE 

20 AGENCIES; ALLOTMENTS. 

21 ‘‘(a) RESERVATION OF FUNDS.—From the sums ap22 propriated under section 205 for a fiscal year, the Sec23 retary—

24 ‘‘(1) shall reserve up to 1.72 percent for incentive 

25 grants under section 213; 
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1 ‘‘(2) shall reserve 1.75 percent to carry out sec2 tion 242; and 

3 ‘‘(3) shall reserve up to 1.55 percent to carry out 

4 section 243. 

5 ‘‘(b) GRANTS TO ELIGIBLE AGENCIES.—

6 ‘‘(1) IN GENERAL.—From the sums appropriated 

7 under section 205 and not reserved under subsection 

8 (a) for a fiscal year, the Secretary shall award a 

9 grant to each eligible agency having a State plan ap10 proved under section 224 in an amount equal to the 

11 sum of the initial allotment under subsection (c)(1) 

12 and the additional allotment under subsection (c)(2) 

13 for the eligible agency for the fiscal year, subject to 

14 subsections (f) and (g). 

15 ‘‘(2) PURPOSE OF GRANTS.—The Secretary may 

16 award a grant under paragraph (1) only if the eligi17 ble agency involved agrees to expend the grant in ac18 cordance with the provisions of this title. 

19 ‘‘(c) ALLOTMENTS.—

20 ‘‘(1) INITIAL ALLOTMENTS.—From the sums ap21 propriated under section 205 and not reserved under 

22 subsection (a) for a fiscal year, the Secretary shall 

23 allot to each eligible agency having a State plan ap24 proved under section 224—
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1 ‘‘(A) $100,000, in the case of an eligible 

2 agency serving an outlying area; and 

3 ‘‘(B) $250,000, in the case of any other eli4 gible agency. 

5 ‘‘(2) ADDITIONAL ALLOTMENTS.—From the sums 

6 appropriated under section 205, not reserved under 

7 subsection (a), and not allotted under paragraph (1), 

8 for a fiscal year, the Secretary shall allot to each eli9 gible agency that receives an initial allotment under 

10 paragraph (1) an additional amount that bears the 

11 same relationship to such sums as the number of 

12 qualifying adults in the State or outlying area served 

13 by the eligible agency bears to the number of such 

14 adults in all States and outlying areas. 

15 ‘‘(d) QUALIFYING ADULT.—For the purpose of sub16 section (c)(2), the term ‘qualifying adult’ means an adult 

17 who—

18 ‘‘(1) is at least 16 years of age; 

19 ‘‘(2) is beyond the age of compulsory school at20 tendance under the law of the State or outlying area; 

21 ‘‘(3) does not have a secondary school diploma, 

22 General Educational Development credential (GED), 

23 or other State-recognized equivalent; and 

24 ‘‘(4) is not enrolled in secondary school. 

25 ‘‘(e) SPECIAL RULE.—
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1 ‘‘(1) IN GENERAL.—From amounts made avail2 able under subsection (c) for the Republic of Palau, 

3 the Secretary shall award grants to Guam, American 

4 Samoa, the Commonwealth of the Northern Mariana 

5 Islands, or the Republic of Palau to carry out activi6 ties described in this title in accordance with the pro7 visions of this title as determined by the Secretary. 

8 ‘‘(2) TERMINATION OF ELIGIBILITY.—Notwith9 standing any other provision of law, the Republic of 

10 Palau shall be eligible to receive a grant under this 

11 title until an agreement for the extension of United 

12 States education assistance under the Compact of 

13 Free Association for the Republic of Palau becomes ef14 fective. 

15 ‘‘(3) ADMINISTRATIVE COSTS.—The Secretary 

16 may provide not more than 5 percent of the funds 

17 made available for grants under this subsection to 

18 pay the administrative costs of the Pacific Region 

19 Educational Laboratory regarding activities assisted 

20 under this subsection. 

21 ‘‘(f) HOLD-HARMLESS PROVISIONS.—

22 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

23 (c), and subject to paragraphs (2) and (3), for fiscal 

24 year 2006 and each succeeding fiscal year, no eligible 

25 agency shall receive an allotment under this title that 
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1 is less than 90 percent of the allotment the eligible 

2 agency received for the preceding fiscal year under 

3 this title. 

4 ‘‘(2) EXCEPTION.—An eligible agency that re5 ceives for the preceding fiscal year only an initial al6 lotment under subsection (c)(1) (and no additional al7 lotment under subsection (c)(2)) shall receive an allot8 ment equal to 100 percent of the initial allotment. 

9 ‘‘(3) RATABLE REDUCTION.—If for any fiscal 

10 year the amount available for allotment under this 

11 title is insufficient to satisfy the provisions of para12 graph (1), the Secretary shall ratably reduce the pay13 ments to all eligible agencies, as necessary. 

14 ‘‘(g) REALLOTMENT.—The portion of any eligible 

15 agency’s allotment under this title for a fiscal year that the 

16 Secretary determines will not be required for the period 

17 such allotment is available for carrying out activities under 

18 this title, shall be available for reallotment from time to 

19 time, on such dates during such period as the Secretary 

20 shall fix, to other eligible agencies in proportion to the origi21 nal allotments to such agencies under this title for such 

22 year. 

23 ‘‘SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM. 

24 ‘‘(a) PURPOSE.—The purpose of this section is to es25 tablish a comprehensive performance accountability system, 
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1 composed of the activities described in this section, to assess 

2 the effectiveness of eligible agencies in achieving continuous 

3 improvement of adult education, basic skills, and family 

4 literacy education programs funded under this title, in 

5 order to optimize the return on investment of Federal funds 

6 in adult education, basic skills, and family literacy edu7 cation programs. 

8 ‘‘(b) ELIGIBLE AGENCY PERFORMANCE MEASURES.—

9 ‘‘(1) IN GENERAL.—For each eligible agency, the 

10 eligible agency performance measures shall consist 

11 of—

12 ‘‘(A)(i) the core indicators of performance 

13 described in paragraph (2)(A); and 

14 ‘‘(ii) employment performance indicators 

15 identified by the eligible agency under para16 graph (2)(B); and 

17 ‘‘(B) an eligible agency adjusted level of 

18 performance for each indicator described in sub19 paragraph (A). 

20 ‘‘(2) INDICATORS OF PERFORMANCE.—

21 ‘‘(A) CORE INDICATORS OF PERFORM22 ANCE.—The core indicators of performance shall 

23 include the following: 

24 ‘‘(i) Measurable improvements in lit25 eracy, including basic skill levels in read-
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1 ing, writing, and speaking the English lan2 guage and basic math, leading to pro3 ficiency in each skill. 

4 ‘‘(ii) Receipt of a secondary school di5 ploma, General Educational Development 

6 credential (GED), or other State-recognized 

7 equivalent. 

8 ‘‘(iii) Placement in postsecondary edu9 cation or other training programs. 

10 ‘‘(B) EMPLOYMENT PERFORMANCE INDICA11 TORS.—Consistent with applicable Federal and 

12 State privacy laws, an eligible agency shall iden13 tify in the State plan the following individual 

14 participant employment performance indicators: 

15 ‘‘(i) Entry into employment. 

16 ‘‘(ii) Retention in employment. 

17 ‘‘(iii) Increase in earnings. 

18 ‘‘(3) LEVELS OF PERFORMANCE.—

19 ‘‘(A) ELIGIBLE AGENCY ADJUSTED LEVELS

20 OF PERFORMANCE FOR CORE INDICATORS.—

21 ‘‘(i) IN GENERAL.—For each eligible 

22 agency submitting a State plan, there shall 

23 be established, in accordance with this sub24 paragraph, levels of performance for each of 

25 the core indicators of performance described 
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1 in paragraph (2)(A) for adult education, 

2 basic skills, and family literacy education 

3 programs authorized under this title. The 

4 levels of performance established under this 

5 subparagraph shall, at a minimum—

6 ‘‘(I) be expressed in an objective, 

7 quantifiable, and measurable form; 

8 and 

9 ‘‘(II) show the progress of the eli10 gible agency toward continuously and 

11 significantly improving the agency’s 

12 performance outcomes in an objective, 

13 quantifiable, and measurable form. 

14 ‘‘(ii) IDENTIFICATION IN STATE

15 PLAN.—Each eligible agency shall identify, 

16 in the State plan submitted under section 

17 224, expected levels of performance for each 

18 of the core indicators of performance for the 

19 first 3 program years covered by the State 

20 plan. 

21 ‘‘(iii) AGREEMENT ON ELIGIBLE AGEN22 CY ADJUSTED LEVELS OF PERFORMANCE

23 FOR FIRST 3 YEARS.—In order to ensure an 

24 optimal return on the investment of Federal 

25 funds in adult education, basic skills, and 
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1 family literacy education programs author2 ized under this title, the Secretary and each 

3 eligible agency shall reach agreement on lev4 els of student performance for each of the 

5 core indicators of performance, for the first 

6 3 program years covered by the State plan, 

7 taking into account the levels identified in 

8 the State plan under clause (ii) and the fac9 tors described in clause (iv). The levels 

10 agreed to under this clause shall be consid11 ered to be the eligible agency adjusted levels 

12 of performance for the eligible agency for 

13 such years and shall be incorporated into 

14 the State plan prior to the approval of such 

15 plan. 

16 ‘‘(iv) FACTORS.—The agreement de17 scribed in clause (iii) or (v) shall take into 

18 account—

19 ‘‘(I) how the levels involved com20 pare with the eligible agency’s adjusted 

21 levels of performance, taking into ac22 count factors including the characteris23 tics of participants when the partici24 pants entered the program; and 
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1 ‘‘(II) the extent to which such lev2 els promote continuous and significant 

3 improvement in performance on the 

4 student proficiency measures used by 

5 such eligible agency and ensure opti6 mal return on the investment of Fed7 eral funds. 

8 ‘‘(v) AGREEMENT ON ELIGIBLE AGENCY

9 ADJUSTED LEVELS OF PERFORMANCE FOR

10 SECOND 3 YEARS.—Prior to the fourth pro11 gram year covered by the State plan, the 

12 Secretary and each eligible agency shall 

13 reach agreement on levels of student per14 formance for each of the core indicators of 

15 performance for the fourth, fifth, and sixth 

16 program years covered by the State plan, 

17 taking into account the factors described in 

18 clause (iv). The levels agreed to under this 

19 clause shall be considered to be the eligible 

20 agency adjusted levels of performance for the 

21 eligible agency for such years and shall be 

22 incorporated into the State plan. 

23 ‘‘(vi) REVISIONS.—If unanticipated 

24 circumstances arise in a State resulting in 

25 a significant change in the factors described 
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1 in clause (iv)(I), the eligible agency may re2 quest that the eligible agency adjusted levels 

3 of performance agreed to under clause (iii) 

4 or (v) be revised. 

5 ‘‘(B) LEVELS OF EMPLOYMENT PERFORM6 ANCE.—The eligible agency shall identify, in the 

7 State plan, eligible agency levels of performance 

8 for each of the employment performance indica9 tors described in paragraph (2)(B). Such levels 

10 shall be considered to be eligible agency adjusted 

11 levels of performance for purposes of this title. 

12 ‘‘(c) REPORT.—

13 ‘‘(1) IN GENERAL.—Each eligible agency that re14 ceives a grant under section 211(b) shall annually 

15 prepare and submit to the Secretary, the Governor, 

16 the State legislature, and eligible providers a report 

17 on the progress of the eligible agency in achieving eli18 gible agency performance measures, including the fol19 lowing: 

20 ‘‘(A) Information on the levels of perform21 ance achieved by the eligible agency with respect 

22 to the core indicators of performance and em23 ployment performance indicators. 

24 ‘‘(B) The number and type of each eligible 

25 provider that receives funding under such grant. 
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1 ‘‘(2) INFORMATION DISSEMINATION.—The Sec2 retary—

3 ‘‘(A) shall make the information contained 

4 in such reports available to the general public 

5 through publication (including on the Internet 

6 site of the Department of Education) and other 

7 appropriate methods; 

8 ‘‘(B) shall disseminate State-by-State com9 parisons of the information; and 

10 ‘‘(C) shall provide the appropriate commit11 tees of the Congress with copies of such reports. 

12 ‘‘SEC. 213. INCENTIVE GRANTS FOR STATES. 

13 ‘‘(a) IN GENERAL.—From funds appropriated under 

14 section 211(a)(1), the Secretary may award grants to States 

15 for exemplary performance in carrying out programs under 

16 this title. Such awards shall be based on States exceeding 

17 the core indicators of performance established under section 

18 212(b)(2)(A) and may be based on the performance of the 

19 State in serving populations, such as those described in sec20 tion 224(b)(10), including the levels of service provided and 

21 the performance outcomes, and such other factors relating 

22 to the performance of the State under this title as the Sec23 retary determines appropriate. 

24 ‘‘(b) USE OF FUNDS.—The funds awarded to a State 

25 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 of 

12 activities assisted under this title. 

13 ‘‘(3) Coordination and avoidance of duplication 

14 with other Federal and State education, training, cor15 rections, public housing, and social service programs. 

16 ‘‘SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING RE17 QUIREMENT. 

18 ‘‘(a) STATE DISTRIBUTION OF FUNDS.—Each eligible 

19 agency receiving a grant under this title for a fiscal year—

20 ‘‘(1) shall use an amount not less than 82.5 per21 cent of the grant funds to award grants and contracts 

22 under section 231 and to carry out section 225, of 

23 which not more than 10 percent of such amount shall 

24 be available to carry out section 225; 
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1 ‘‘(2) shall use not more than 12.5 percent of the 

2 grant funds to carry out State leadership activities 

3 under section 223; and 

4 ‘‘(3) shall use not more than 5 percent of the 

5 grant funds, or $75,000, whichever is greater, for the 

6 administrative expenses of the eligible agency. 

7 ‘‘(b) MATCHING REQUIREMENT.—

8 ‘‘(1) IN GENERAL.—In order to receive a grant 

9 from the Secretary under section 211(b), each eligible 

10 agency shall provide, for the costs to be incurred by 

11 the eligible agency in carrying out the adult edu12 cation, basic skills, and family literacy education 

13 programs for which the grant is awarded, a non-Fed14 eral contribution in an amount at least equal to—

15 ‘‘(A) in the case of an eligible agency serv16 ing an outlying area, 12 percent of the total 

17 amount of funds expended for adult education, 

18 basic skills, and family literacy education pro19 grams in the outlying area, except that the Sec20 retary may decrease the amount of funds re21 quired under this subparagraph for an eligible 

22 agency; and 

23 ‘‘(B) in the case of an eligible agency serv24 ing a State, 25 percent of the total amount of 

25 funds expended for adult education, basic skills, 
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1 and family literacy education programs in the 

2 State. 

3 ‘‘(2) NON-FEDERAL CONTRIBUTION.—An eligible 

4 agency’s non-Federal contribution required under 

5 paragraph (1) may be provided in cash or in kind, 

6 fairly evaluated, and shall include only non-Federal 

7 funds that are used for adult education, basic skills, 

8 and family literacy education programs in a manner 

9 that is consistent with the purpose of this title. 

10 ‘‘SEC. 223. STATE LEADERSHIP ACTIVITIES. 

11 ‘‘(a) IN GENERAL.—Each eligible agency may use 

12 funds made available under section 222(a)(2) for any of 

13 the following adult education, basic skills, and family lit14 eracy education programs: 

15 ‘‘(1) The establishment or operation of profes16 sional development programs to improve the quality 

17 of instruction provided pursuant to local activities re18 quired under section 231(b), including instruction in19 corporating the essential components of reading in20 struction and instruction provided by volunteers or 

21 by personnel of a State or outlying area. 

22 ‘‘(2) The provision of technical assistance to eli23 gible providers of adult education, basic skills, and 

24 family literacy education programs, including for the 

25 development and dissemination of scientifically based 
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1 research instructional practices in reading, writing, 

2 speaking, math, and English language acquisition 

3 programs. 

4 ‘‘(3) The provision of assistance to eligible pro5 viders in developing, implementing, and reporting 

6 measurable progress in achieving the objectives of this 

7 title. 

8 ‘‘(4) The provision of technology assistance, in9 cluding staff training, to eligible providers of adult 

10 education, basic skills, and family literacy education 

11 programs, including distance learning activities, to 

12 enable the eligible providers to improve the quality of 

13 such activities. 

14 ‘‘(5) The development and implementation of 

15 technology applications or distance learning, includ16 ing professional development to support the use of in17 structional technology. 

18 ‘‘(6) Coordination with other public programs, 

19 including welfare-to-work, workforce development, and 

20 job training programs. 

21 ‘‘(7) Coordination with existing support services, 

22 such as transportation, child care, and other assist23 ance designed to increase rates of enrollment in, and 

24 successful completion of, adult education, basic skills, 
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1 and family literacy education programs, for adults 

2 enrolled in such activities. 

3 ‘‘(8) The development and implementation of a 

4 system to assist in the transition from adult basic 

5 education to postsecondary education. 

6 ‘‘(9) Activities to promote workplace literacy 

7 programs. 

8 ‘‘(10) Activities to promote and complement local 

9 outreach initiatives described in section 243(7). 

10 ‘‘(11) Other activities of statewide significance, 

11 including assisting eligible providers in achieving 

12 progress in improving the skill levels of adults who 

13 participate in programs under this title. 

14 ‘‘(12) Integration of literacy, instructional, and 

15 occupational skill training and promotion of linkages 

16 with employees. 

17 ‘‘(b) COORDINATION.—In carrying out this section, eli18 gible agencies shall coordinate where possible, and avoid du19 plicating efforts, in order to maximize the impact of the 

20 activities described in subsection (a). 

21 ‘‘(c) STATE-IMPOSED REQUIREMENTS.—Whenever a 

22 State or outlying area implements any rule or policy relat23 ing to the administration or operation of a program au24 thorized under this title that has the effect of imposing a 

25 requirement that is not imposed under Federal law (includ-
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1 ing any rule or policy based on a State or outlying area 

2 interpretation of a Federal statute, regulation, or guide3 line), the State or outlying area shall identify, to eligible 

4 providers, the rule or policy as being imposed by the State 

5 or outlying area. 

6 ‘‘SEC. 224. STATE PLAN. 

7 ‘‘(a) 6-YEAR PLANS.—

8 ‘‘(1) IN GENERAL.—Each eligible agency desiring 

9 a grant under this title for any fiscal year shall sub10 mit to, or have on file with, the Secretary a 6-year 

11 State plan. 

12 ‘‘(2) COMPREHENSIVE PLAN OR APPLICATION.—

13 The eligible agency may submit the State plan as 

14 part of a comprehensive plan or application for Fed15 eral education assistance. 

16 ‘‘(b) PLAN CONTENTS.—The eligible agency shall in17 clude in the State plan or any revisions to the State plan—

18 ‘‘(1) an objective assessment of the needs of indi19 viduals in the State or outlying area for adult edu20 cation, basic skills, and family literacy education 

21 programs, including individuals most in need or 

22 hardest to serve; 

23 ‘‘(2) a description of the adult education, basic 

24 skills, and family literacy education programs that 
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1 will be carried out with funds received under this 

2 title; 

3 ‘‘(3) a description of how the eligible agency will 

4 evaluate and measure annually the effectiveness and 

5 improvement of the adult education, basic skills, and 

6 family literacy education programs based on the per7 formance measures described in section 212 includ8 ing—

9 ‘‘(A) how the eligible agency will evaluate 

10 and measure annually such effectiveness on a 

11 grant-by-grant basis; and 

12 ‘‘(B) how the eligible agency—

13 ‘‘(i) will hold eligible providers ac14 countable regarding the progress of such 

15 providers in improving the academic 

16 achievement of participants in adult edu17 cation programs under this title and re18 garding the core indicators of performance 

19 described in section 212(b)(2)(A); and 

20 ‘‘(ii) will use technical assistance, 

21 sanctions, and rewards (including alloca22 tion of grant funds based on performance 

23 and termination of grant funds based on 

24 nonperformance); 
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1 ‘‘(4) a description of the performance measures 

2 described in section 212 and how such performance 

3 measures have significantly improved adult edu4 cation, basic skills, and family literacy education 

5 programs in the State or outlying area; 

6 ‘‘(5) an assurance that the eligible agency will, 

7 in addition to meeting all of the other requirements 

8 of this title, award not less than one grant under this 

9 title to an eligible provider that—

10 ‘‘(A) offers flexible schedules and necessary 

11 support services (such as child care and trans12 portation) to enable individuals, including indi13 viduals with disabilities, or individuals with 

14 other special needs, to participate in adult edu15 cation, basic skills, and family literacy edu16 cation programs; and 

17 ‘‘(B) attempts to coordinate with support 

18 services that are not provided under this title 

19 prior to using funds for adult education, basic 

20 skills, and family literacy education programs 

21 provided under this title for support services; 

22 ‘‘(6) an assurance that the funds received under 

23 this title will not be expended for any purpose other 

24 than for activities under this title; 
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1 ‘‘(7) a description of how the eligible agency will 

2 fund local activities in accordance with the measur3 able goals described in section 231(d); 

4 ‘‘(8) an assurance that the eligible agency will 

5 expend the funds under this title only in a manner 

6 consistent with fiscal requirements in section 241; 

7 ‘‘(9) a description of the process that will be used 

8 for public participation and comment with respect to 

9 the State plan, which process—

10 ‘‘(A) shall include consultation with the 

11 State workforce investment board, the State 

12 board responsible for administering community 

13 or technical colleges, the Governor, the State edu14 cational agency, the State board or agency re15 sponsible for administering block grants for tem16 porary assistance to needy families under title 

17 IV of the Social Security Act, the State council 

18 on disabilities, the State vocational rehabilita19 tion agency, other State agencies that promote 

20 the improvement of adult education, basic skills, 

21 and family literacy education programs, and di22 rect providers of such programs; and 

23 ‘‘(B) may include consultation with the 

24 State agency on higher education, institutions 

25 responsible for professional development of adult 
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1 education, basic skills, and family literacy edu2 cation programs instructors, representatives of 

3 business and industry, refugee assistance pro4 grams, and faith-based organizations; 

5 ‘‘(10) a description of the eligible agency’s strate6 gies for serving populations that include, at a min7 imum—

8 ‘‘(A) low-income individuals; 

9 ‘‘(B) individuals with disabilities; 

10 ‘‘(C) the unemployed; 

11 ‘‘(D) the underemployed; and 

12 ‘‘(E) individuals with multiple barriers to 

13 educational enhancement, including individuals 

14 with limited English proficiency; 

15 ‘‘(11) a description of how the adult education, 

16 basic skills, and family literacy education programs 

17 that will be carried out with any funds received 

18 under this title will be integrated with other adult 

19 education, career development, and employment and 

20 training activities in the State or outlying area 

21 served by the eligible agency; 

22 ‘‘(12) a description of the steps the eligible agen23 cy will take to ensure direct and equitable access, as 

24 required in section 231(c)(1), including—
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1 ‘‘(A) how the State will build the capacity 

2 of community-based and faith-based organiza3 tions to provide adult education, basic skills, and 

4 family literacy education programs; and 

5 ‘‘(B) how the State will increase the partici6 pation of business and industry in adult edu7 cation, basic skills, and family literacy edu8 cation programs; 

9 ‘‘(13) an assessment of the adequacy of the sys10 tem of the State or outlying area to ensure teacher 

11 quality and a description of how the State or out12 lying area will use funds received under this subtitle 

13 to improve teacher quality, including professional de14 velopment on the use of scientifically based research 

15 to improve instruction; and 

16 ‘‘(14) a description of how the eligible agency 

17 will consult with any State agency responsible for 

18 postsecondary education to develop adult education 

19 that prepares students to enter postsecondary edu20 cation without the need for remediation upon comple21 tion of secondary school equivalency programs. 

22 ‘‘(c) PLAN REVISIONS.—When changes in conditions 

23 or other factors require substantial revisions to an approved 

24 State plan, the eligible agency shall submit the revisions 

25 of the State plan to the Secretary. 
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1 ‘‘(d) CONSULTATION.—The eligible agency shall—

2 ‘‘(1) submit the State plan, and any revisions to 

3 the State plan, to the Governor, the chief State school 

4 officer, or the State officer responsible for admin5 istering community or technical colleges, or outlying 

6 area for review and comment; and 

7 ‘‘(2) ensure that any comments regarding the 

8 State plan by the Governor, the chief State school offi9 cer, or the State officer responsible for administering 

10 community or technical colleges, and any revision to 

11 the State plan, are submitted to the Secretary. 

12 ‘‘(e) PLAN APPROVAL.—A State plan submitted to the 

13 Secretary shall be approved by the Secretary only if the 

14 plan is consistent with the specific provisions of this title. 

15 ‘‘SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND 

16 OTHER INSTITUTIONALIZED INDIVIDUALS. 

17 ‘‘(a) PROGRAM AUTHORIZED.—From funds made 

18 available under section 222(a)(1) for a fiscal year, each eli19 gible agency shall carry out corrections education and edu20 cation for other institutionalized individuals. 

21 ‘‘(b) USES OF FUNDS.—The funds described in sub22 section (a) shall be used for the cost of educational programs 

23 for criminal offenders in correctional institutions and for 

24 other institutionalized individuals, including academic 

25 programs for—
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1 ‘‘(1) basic skills education; 

2 ‘‘(2) special education programs as determined 

3 by the eligible agency; 

4 ‘‘(3) reading, writing, speaking, and math pro5 grams; and 

6 ‘‘(4) secondary school credit or diploma pro7 grams or their recognized equivalent. 

8 ‘‘(c) PRIORITY.—Each eligible agency that is using as9 sistance provided under this section to carry out a program 

10 for criminal offenders within a correctional institution 

11 shall give priority to serving individuals who are likely to 

12 leave the correctional institution within 5 years of partici13 pation in the program. 

14 ‘‘(d) DEFINITIONS.—For purposes of this section: 

15 ‘‘(1) CORRECTIONAL INSTITUTION.—The term 

16 ‘correctional institution’ means any—

17 ‘‘(A) prison; 

18 ‘‘(B) jail; 

19 ‘‘(C) reformatory; 

20 ‘‘(D) work farm; 

21 ‘‘(E) detention center; or 

22 ‘‘(F) halfway house, community-based reha23 bilitation center, or any other similar institution 

24 designed for the confinement or rehabilitation of 

25 criminal offenders. 
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1 ‘‘(2) CRIMINAL OFFENDER.—The term ‘criminal 

2 offender’ means any individual who is charged with, 

3 or convicted of, any criminal offense. 

4 ‘‘CHAPTER 3—LOCAL PROVISIONS 

5 ‘‘SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PRO6 VIDERS. 

7 ‘‘(a) GRANTS AND CONTRACTS.—From grant funds 

8 made available under section 211(b), each eligible agency 

9 shall award multiyear grants or contracts, on a competitive 

10 basis, to eligible providers within the State or outlying area 

11 that meet the conditions and requirements of this title to 

12 enable the eligible providers to develop, implement, and im13 prove adult education, basic skills, and family literacy edu14 cation programs within the State. 

15 ‘‘(b) LOCAL ACTIVITIES.—The eligible agency shall re16 quire eligible providers receiving a grant or contract under 

17 subsection (a) to establish or operate one or more programs 

18 of instruction that provide services or instruction in one 

19 or more of the following categories: 

20 ‘‘(1) Adult education, basic skills, and family lit21 eracy education programs (including proficiency in 

22 reading, writing, speaking, and math). 

23 ‘‘(2) Workplace literacy programs. 

24 ‘‘(3) English language acquisition programs. 

25 ‘‘(4) Family literacy education programs. 
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1 ‘‘(c) DIRECT AND EQUITABLE ACCESS; SAME PROC2 ESS.—Each eligible agency receiving funds under this title 

3 shall ensure that—

4 ‘‘(1) all eligible providers have direct and equi5 table access to apply for grants or contracts under 

6 this section; and 

7 ‘‘(2) the same grant or contract announcement 

8 process and application process is used for all eligible 

9 providers in the State or outlying area. 

10 ‘‘(d) MEASURABLE GOALS.—The eligible agency shall 

11 require eligible providers receiving a grant or contract 

12 under subsection (a) to demonstrate—

13 ‘‘(1) the eligible provider’s measurable goals for 

14 participant outcomes to be achieved annually on the 

15 core indicators of performance and employment per16 formance indicators described in section 212(b)(2); 

17 ‘‘(2) the past effectiveness of the eligible provider 

18 in improving the basic academic skills of adults and, 

19 for eligible providers receiving grants in the prior 

20 year, the success of the eligible provider receiving 

21 funding under this title in exceeding its performance 

22 goals in the prior year; 

23 ‘‘(3) the commitment of the eligible provider to 

24 serve individuals in the community who are the most 

25 in need of basic academic skills instruction services, 
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1 including individuals who are low-income or have 

2 minimal reading, writing, speaking, and math skills, 

3 or limited English proficiency; 

4 ‘‘(4) the program—

5 ‘‘(A) is of sufficient intensity and duration 

6 for participants to achieve substantial learning 

7 gains; and 

8 ‘‘(B) uses instructional practices that in9 clude the essential components of reading in10 struction; 

11 ‘‘(5) educational practices are based on scientif12 ically based research; 

13 ‘‘(6) the activities of the eligible provider effec14 tively employ advances in technology, as appropriate, 

15 including the use of computers; 

16 ‘‘(7) the activities provide instruction in real-life 

17 contexts, when appropriate, to ensure that an indi18 vidual has the skills needed to compete in the work19 place and exercise the rights and responsibilities of 

20 citizenship; 

21 ‘‘(8) the activities are staffed by well-trained in22 structors, counselors, and administrators; 

23 ‘‘(9) the activities are coordinated with other 

24 available resources in the community, such as through 

25 strong links with elementary schools and secondary 
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1 schools, postsecondary educational institutions, one2 stop centers, job training programs, community-based 

3 and faith-based organizations, and social service 

4 agencies; 

5 ‘‘(10) the activities offer flexible schedules and 

6 support services (such as child care and transpor7 tation) that are necessary to enable individuals, in8 cluding individuals with disabilities or other special 

9 needs, to attend and complete programs; 

10 ‘‘(11) the activities include a high-quality infor11 mation management system that has the capacity to 

12 report measurable participant outcomes and to mon13 itor program performance against the performance 

14 measures established by the eligible agency; 

15 ‘‘(12) the local communities have a demonstrated 

16 need for additional English language acquisition pro17 grams; 

18 ‘‘(13) the capacity of the eligible provider to 

19 produce valid information on performance results, in20 cluding enrollments and measurable participant out21 comes; 

22 ‘‘(14) adult education, basic skills, and family 

23 literacy education programs offer rigorous reading, 

24 writing, speaking, and math content that are based 

25 on scientifically based research; and 
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1 ‘‘(15) applications of technology, and services to 

2 be provided by the eligible providers, are of sufficient 

3 intensity and duration to increase the amount and 

4 quality of learning and lead to measurable learning 

5 gains within specified time periods. 

6 ‘‘(e) SPECIAL RULE.—Eligible providers may use 

7 grant funds under this title to serve children participating 

8 in family literacy programs assisted under this part, pro9 vided that other sources of funds available to provide simi10 lar services for such children are used first. 

11 ‘‘SEC. 232. LOCAL APPLICATION. 

12 ‘‘Each eligible provider desiring a grant or contract 

13 under this title shall submit an application to the eligible 

14 agency containing such information and assurances as the 

15 eligible agency may require, including—

16 ‘‘(1) a description of how funds awarded under 

17 this title will be spent consistent with the require18 ments of this title; 

19 ‘‘(2) a description of any cooperative arrange20 ments the eligible provider has with other agencies, 

21 institutions, or organizations for the delivery of adult 

22 education, basic skills, and family literacy education 

23 programs; and 

24 ‘‘(3) each of the demonstrations required by sec25 tion 231(d). 
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1 ‘‘SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS. 

2 ‘‘(a) IN GENERAL.—Subject to subsection (b), of the 

3 amount that is made available under this title to an eligible 

4 provider—

5 ‘‘(1) at least 95 percent shall be expended for 

6 carrying out adult education, basic skills, and family 

7 literacy education programs; and 

8 ‘‘(2) the remaining amount shall be used for 

9 planning, administration, personnel and professional 

10 development, development of measurable goals in 

11 reading, writing, speaking, and math, and inter12 agency coordination. 

13 ‘‘(b) SPECIAL RULE.—In cases where the cost limits 

14 described in subsection (a) are too restrictive to allow for 

15 adequate planning, administration, personnel development, 

16 and interagency coordination, the eligible provider may ne17 gotiate with the eligible agency in order to determine an 

18 adequate level of funds to be used for noninstructional pur19 poses. 

20 ‘‘CHAPTER 4—GENERAL PROVISIONS 

21 ‘‘SEC. 241. ADMINISTRATIVE PROVISIONS. 

22 ‘‘(a) SUPPLEMENT NOT SUPPLANT.—Funds made 

23 available for adult education, basic skills, and family lit24 eracy education programs under this title shall supplement 

25 and not supplant other State or local public funds expended 
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1 for adult education, basic skills, and family literacy edu2 cation programs. 

3 ‘‘(b) MAINTENANCE OF EFFORT.—

4 ‘‘(1) IN GENERAL.—

5 ‘‘(A) DETERMINATION.—An eligible agency 

6 may receive funds under this title for any fiscal 

7 year if the Secretary finds that the fiscal effort 

8 per student or the aggregate expenditures of such 

9 eligible agency for activities under this title, in 

10 the second preceding fiscal year, were not less 

11 than 90 percent of the fiscal effort per student or 

12 the aggregate expenditures of such eligible agency 

13 for adult education, basic skills, and family lit14 eracy education programs, in the third preceding 

15 fiscal year. 

16 ‘‘(B) PROPORTIONATE REDUCTION.—Subject 

17 to paragraphs (2), (3), and (4), for any fiscal 

18 year with respect to which the Secretary deter19 mines under subparagraph (A) that the fiscal ef20 fort or the aggregate expenditures of an eligible 

21 agency for the preceding program year were less 

22 than such effort or expenditures for the second 

23 preceding program year, the Secretary—
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1 ‘‘(i) shall determine the percentage de2 creases in such effort or in such expendi3 tures; and 

4 ‘‘(ii) shall decrease the payment made 

5 under this title for such program year to the 

6 agency for adult education, basic skills, and 

7 family literacy education programs by the 

8 lesser of such percentages. 

9 ‘‘(2) COMPUTATION.—In computing the fiscal ef10 fort and aggregate expenditures under paragraph (1), 

11 the Secretary shall exclude capital expenditures and 

12 special one-time project costs. 

13 ‘‘(3) DECREASE IN FEDERAL SUPPORT.—If the 

14 amount made available for adult education, basic 

15 skills, and family literacy education programs under 

16 this title for a fiscal year is less than the amount 

17 made available for adult education, basic skills, and 

18 family literacy education programs under this title 

19 for the preceding fiscal year, then the fiscal effort per 

20 student and the aggregate expenditures of an eligible 

21 agency required in order to avoid a reduction under 

22 paragraph (1)(B) shall be decreased by the same per23 centage as the percentage decrease in the amount so 

24 made available. 
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1 ‘‘(4) WAIVER.—The Secretary may waive the re2 quirements of this subsection for not more than 1 fis3 cal year, if the Secretary determines that a waiver 

4 would be equitable due to exceptional or uncontrol5 lable circumstances, such as a natural disaster or an 

6 unforeseen and precipitous decline in the financial re7 sources of the State or outlying area of the eligible 

8 agency. If the Secretary grants a waiver under the 

9 preceding sentence for a fiscal year, the level of effort 

10 required under paragraph (1) shall not be reduced in 

11 the subsequent fiscal year because of the waiver. 

12 ‘‘SEC. 242. NATIONAL INSTITUTE FOR LITERACY. 

13 ‘‘(a) IN GENERAL.—

14 ‘‘(1) PURPOSE.—The purpose of the National In15 stitute for Literacy is to promote the improvement of 

16 literacy, including skills in reading, writing, and 

17 English language acquisition for children, youth, and 

18 adults, through practices derived from the findings of 

19 scientifically based research. 

20 ‘‘(2) ESTABLISHMENT.—There is established a 

21 National Institute for Literacy (in this section re22 ferred to as the ‘Institute’). The Institute shall be ad23 ministered under the terms of an interagency agree24 ment entered into, reviewed annually, and modified 

25 as needed by the Secretary of Education with the Sec-
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1 retary of Health and Human Services and the Sec2 retary of Labor (in this section referred to as the 

3 ‘Interagency Group’). 

4 ‘‘(3) OFFICES.—The Institute shall have offices 

5 separate from the offices of the Department of Edu6 cation, the Department of Health and Human Serv7 ices, and the Department of Labor. 

8 ‘‘(4) ADMINISTRATIVE SUPPORT.—The Depart9 ment of Education shall provide administrative sup10 port for the Institute. 

11 ‘‘(5) DAILY OPERATIONS.—The Director of the 

12 Institute shall administer the daily operations of the 

13 Institute. 

14 ‘‘(b) DUTIES.—

15 ‘‘(1) IN GENERAL.—To carry out its purpose, the 

16 Institute may—

17 ‘‘(A) identify and disseminate rigorous sci18 entific research on the effectiveness of instruc19 tional practices and organizational strategies re20 lating to programs on the acquisition of skills in 

21 reading, writing, and English language acquisi22 tion for children, youth, and adults; 

23 ‘‘(B) create and widely disseminate mate24 rials about the acquisition and application of 

25 skills in reading, writing, and English language 
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1 acquisition for children, youth, and adults based 

2 on scientifically based research; 

3 ‘‘(C) ensure a broad understanding of sci4 entifically based research on reading, writing, 

5 and English language acquisition for children, 

6 youth, and adults among Federal agencies with 

7 responsibilities for administering programs that 

8 provide related services, including State and 

9 local educational agencies; 

10 ‘‘(D) facilitate coordination and informa11 tion sharing among national organizations and 

12 associations interested in programs that provide 

13 services to improve skills in reading, writing, 

14 and English language acquisition for children, 

15 youth, and adults; 

16 ‘‘(E) coordinate with the appropriate offices 

17 in the Department of Education, the Department 

18 of Health and Human Services, the Department 

19 of Labor, and other Federal agencies to apply the 

20 findings of scientifically based research related to 

21 programs on reading, writing, and English lan22 guage acquisition for children, youth, and 

23 adults; 

24 ‘‘(F) establish a national electronic database 

25 and Internet site describing and fostering com-
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1 munication on scientifically based programs in 

2 reading, writing, and English language acquisi3 tion for children, youth, and adults, including 

4 professional development programs; and 

5 ‘‘(G) provide opportunities for technical as6 sistance, meetings, and conferences that will fos7 ter increased coordination among Federal, State, 

8 and local agencies and entities and improvement 

9 of reading, writing, and English language acqui10 sition skills for children, youth, and adults. 

11 ‘‘(2) COORDINATION.—In identifying scientif12 ically based research on reading, writing, and 

13 English language acquisition for children, youth, and 

14 adults, the Institute shall use standards for research 

15 quality that are consistent with those established by 

16 the Institute of Education Sciences. 

17 ‘‘(3) GRANTS, CONTRACTS, AND COOPERATIVE

18 AGREEMENTS.—

19 ‘‘(A) IN GENERAL.—The Institute may 

20 award grants to, or enter into contracts or coop21 erative agreements with, individuals, public or 

22 private institutions, agencies, organizations, or 

23 consortia of such individuals, institutions, agen24 cies, or organizations, to carry out the activities 

25 of the Institute. 
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1 ‘‘(B) REGULATIONS.—The Director may 

2 adopt the general administrative regulations of 

3 the Department of Education, as applicable, for 

4 use by the Institute. 

5 ‘‘(C) RELATION TO OTHER LAWS.—The du6 ties and powers of the Institute under this title 

7 are in addition to the duties and powers of the 

8 Institute under subparts 1, 2, and 3 of part B 

9 of the Elementary and Secondary Education Act 

10 of 1965 (commonly referred to as Reading First, 

11 Early Reading First, and the William F. Good12 ling Even Start Family Literacy Program, re13 spectively). 

14 ‘‘(c) VISITING SCHOLARS.—The Institute may estab15 lish a visiting scholars program, with such stipends and 

16 allowances as the Director considers necessary, for out17 standing researchers, scholars, and individuals who—

18 ‘‘(1) have careers in adult education, workforce 

19 development, or scientifically based reading, writing, 

20 or English language acquisition; and 

21 ‘‘(2) can assist the Institute in translating re22 search into practice and providing analysis that ad23 vances instruction in the fields of reading, writing, 

24 and English language acquisition for children, youth, 

25 and adults. 
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1 ‘‘(d) INTERNS AND VOLUNTEERS.—The Institute, in 

2 consultation with the National Institute for Literacy Advi3 sory Board, may award paid and unpaid internships to 

4 individuals seeking to assist the Institute in carrying out 

5 its purpose. Notwithstanding section 1342 of title 31, 

6 United States Code, the Institute may accept and use vol7 untary and uncompensated services as the Institute deter8 mines necessary. 

9 ‘‘(e) NATIONAL INSTITUTE FOR LITERACY ADVISORY

10 BOARD.—

11 ‘‘(1) ESTABLISHMENT.—

12 ‘‘(A) IN GENERAL.—There shall be a Na13 tional Institute for Literacy Advisory Board (in 

14 this section referred to as the ‘Board’), which 

15 shall consist of 10 individuals appointed by the 

16 President with the advice and consent of the Sen17 ate. 

18 ‘‘(B) QUALIFICATIONS.—The Board shall be 

19 composed of individuals who—

20 ‘‘(i) are not otherwise officers or em21 ployees of the Federal Government; and 

22 ‘‘(ii) are knowledgeable about current 

23 effective scientifically based research find24 ings on instruction in reading, writing, and 
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1 English language acquisition for children, 

2 youth, and adults. 

3 ‘‘(C) COMPOSITION.—The Board may in4 clude—

5 ‘‘(i) representatives of business, indus6 try, labor, literacy organizations, adult edu7 cation providers, community colleges, stu8 dents with disabilities, and State agencies, 

9 including State directors of adult education; 

10 and 

11 ‘‘(ii) individuals who, and representa12 tives of entities that, have been successful in 

13 improving skills in reading, writing, and 

14 English language acquisition for children, 

15 youth, and adults. 

16 ‘‘(2) DUTIES.—The Board shall—

17 ‘‘(A) make recommendations concerning the 

18 appointment of the Director of the Institute; 

19 ‘‘(B) provide independent advice on the op20 eration of the Institute; 

21 ‘‘(C) receive reports from the Interagency 

22 Group and the Director; and 

23 ‘‘(D) review the biennial report to the Con24 gress under subsection (k). 
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1 ‘‘(3) FEDERAL ADVISORY COMMITTEE ACT.—Ex2 cept as otherwise provided, the Board shall be subject 

3 to the provisions of the Federal Advisory Committee 

4 Act. 

5 ‘‘(4) APPOINTMENTS.—

6 ‘‘(A) IN GENERAL.—Each member of the 

7 Board shall be appointed for a term of 3 years, 

8 except that the initial terms for members may be 

9 1, 2, or 3 years in order to establish a rotation 

10 in which one-third of the members are selected 

11 each year. Any such member may be appointed 

12 for not more than 2 consecutive terms. 

13 ‘‘(B) VACANCIES.—Any member appointed 

14 to fill a vacancy occurring before the expiration 

15 of the term for which the member’s predecessor 

16 was appointed shall be appointed only for the re17 mainder of that term. A member may serve after 

18 the expiration of that member’s term until a suc19 cessor has taken office. 

20 ‘‘(5) QUORUM.—A majority of the members of 

21 the Board shall constitute a quorum, but a lesser 

22 number may hold hearings. A recommendation of the 

23 Board may be passed only by a majority of the 

24 Board’s members present at a meeting for which there 

25 is a quorum. 
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1 ‘‘(6) ELECTION OF OFFICERS.—The Chairperson 

2 and Vice Chairperson of the Board shall be elected by 

3 the members of the Board. The term of office of the 

4 Chairperson and Vice Chairperson shall be 2 years. 

5 ‘‘(7) MEETINGS.—The Board shall meet at the 

6 call of the Chairperson or a majority of the members 

7 of the Board. 

8 ‘‘(f) GIFTS, BEQUESTS, AND DEVISES.—

9 ‘‘(1) IN GENERAL.—The Institute may accept, 

10 administer, and use gifts or donations of services, 

11 money, or property, whether real or personal, tangible 

12 or intangible. 

13 ‘‘(2) RULES.—The Board shall establish written 

14 rules setting forth the criteria to be used by the Insti15 tute in determining whether the acceptance of con16 tributions of services, money, or property whether real 

17 or personal, tangible or intangible, would reflect unfa18 vorably upon the ability of the Institute or any em19 ployee to carry out the responsibilities of the Institute 

20 or employee, or official duties, in a fair and objective 

21 manner, or would compromise the integrity, or the 

22 appearance of the integrity, of the Institute’s pro23 grams or any official involved in those programs. 

24 ‘‘(g) MAILS.—The Board and the Institute may use the 

25 United States mails in the same manner and under the 
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1 same conditions as other departments and agencies of the 

2 United States. 

3 ‘‘(h) DIRECTOR.—The Secretary of Education, after 

4 considering recommendations made by the Board and con5 sulting with the Interagency Group, shall appoint and fix 

6 the pay of the Director of the Institute and, when necessary, 

7 shall appoint an Interim Director of the Institute. 

8 ‘‘(i) APPLICABILITY OF CERTAIN CIVIL SERVICE

9 LAWS.—The Director and staff of the Institute may be ap10 pointed without regard to the provisions of title 5, United 

11 States Code, governing appointments in the competitive 

12 service, and may be paid without regard to the provisions 

13 of chapter 51 and subchapter III of chapter 53 of that title 

14 relating to classification and General Schedule pay rates, 

15 except that an individual so appointed may not receive pay 

16 in excess of the annual rate of basic pay payable for level 

17 IV of the Executive Schedule. 

18 ‘‘(j) EXPERTS AND CONSULTANTS.—The Institute may 

19 procure temporary and intermittent services under section 

20 3109(b) of title 5, United States Code. 

21 ‘‘(k) BIENNIAL REPORT.—

22 ‘‘(1) IN GENERAL.—The Institute shall submit a 

23 report biennially to the Committee on Education and 

24 the Workforce of the House of Representatives and the 

25 Committee on Health, Education, Labor, and Pen-
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1 sions of the Senate. Each report submitted under this 

2 subsection shall include—

3 ‘‘(A) a comprehensive and detailed descrip4 tion of the Institute’s operations, activities, fi5 nancial condition, and accomplishments in iden6 tifying and describing programs on reading, 

7 writing, and English language acquisition for 

8 children, youth, and adults for the period covered 

9 by the report; and 

10 ‘‘(B) a description of how plans for the op11 eration of the Institute for the succeeding 2 fiscal 

12 years will facilitate achievement of the purpose 

13 of the Institute. 

14 ‘‘(2) FIRST REPORT.—The Institute shall submit 

15 its first report under this subsection to the Congress 

16 not later than 1 year after the date of the enactment 

17 of the Job Training Improvement Act of 2005. 

18 ‘‘(l) ADDITIONAL FUNDING.—In addition to the funds 

19 authorized under section 205 and reserved for the Institute 

20 under section 211, the Secretary of Education, the Secretary 

21 of Health and Human Services, the Secretary of Labor, or 

22 the head of any other Federal agency or department that 

23 participates in the activities of the Institute may provide 

24 funds to the Institute for activities that the Institute is au25 thorized to perform under this section. 
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1 ‘‘SEC. 243. NATIONAL LEADERSHIP ACTIVITIES. 

2 ‘‘The Secretary shall establish and carry out a pro3 gram of national leadership activities that may include the 

4 following: 

5 ‘‘(1) Technical assistance, on request, including 

6 assistance—

7 ‘‘(A) on request to volunteer community8 and faith-based organizations, including but not 

9 limited to, improving their fiscal management, 

10 research-based instruction, and reporting re11 quirements, and the development of measurable 

12 objectives to carry out the requirements of this 

13 title; 

14 ‘‘(B) in developing valid, measurable, and 

15 reliable performance data, and using perform16 ance information for the improvement of adult 

17 education basic skills, English language acquisi18 tion, and family literacy education programs; 

19 ‘‘(C) on adult education professional devel20 opment; and 

21 ‘‘(D) in using distance learning and im22 proving the application of technology in the 

23 classroom, including instruction in English lan24 guage acquisition for individuals who have lim25 ited English proficiency. 
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1 ‘‘(2) Providing for the conduct of research on na2 tional literacy basic skill acquisition levels among 

3 adults, including the number of limited English pro4 ficient adults functioning at different levels of reading 

5 proficiency. 

6 ‘‘(3) Improving the coordination, efficiency, and 

7 effectiveness of adult education and workforce develop8 ment services at the national, State, and local levels. 

9 ‘‘(4) Determining how participation in adult 

10 education basic skills, English language acquisition, 

11 and family literacy education programs prepares in12 dividuals for entry into and success in postsecondary 

13 education and employment, and in the case of prison14 based services, the effect on recidivism. 

15 ‘‘(5) Evaluating how different types of providers, 

16 including community and faith-based organizations 

17 or private for-profit agencies measurably improve the 

18 skills of participants in adult education basic skills, 

19 English language acquisition, and family literacy 

20 education programs. 

21 ‘‘(6) Identifying model integrated basic and 

22 workplace skills education programs, including pro23 grams for individuals with limited English pro24 ficiency coordinated literacy and employment serv-
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1 ices, and effective strategies for serving adults with 

2 disabilities. 

3 ‘‘(7) Supporting the development of an entity 

4 that would produce and distribute technology-based 

5 programs and materials for adult education, basic 

6 skills, and family literacy education programs using 

7 an intercommunication system, as that term is de8 fined in section 397 of the Communications Act of 

9 1934, and expand the effective outreach and use of 

10 such programs and materials to adult education eligi11 ble providers. 

12 ‘‘(8) Initiating other activities designed to im13 prove the measurable quality and effectiveness of 

14 adult education basic skills, English language acqui15 sition, and family literacy education programs na16 tionwide.’’. 

17 TITLE III—AMENDMENTS TO THE 

18 WAGNER-PEYSER ACT 

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

20 The Wagner-Peyser Act (29 U.S.C. 49 et. seq.) is 

21 amended—

22 (1) by striking sections 1 through 13; 

23 (2) in section 14 by inserting ‘‘of Labor’’ after 

24 ‘‘Secretary’’; and 

25 (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 continuous 

7 improvement of a nationwide workforce and labor 

8 market information system that includes—

9 ‘‘(A) statistical data from cooperative sta10 tistical survey and projection programs and data 

11 from administrative reporting systems that, 

12 taken together, enumerate, estimate, and project 

13 employment opportunities and conditions at na14 tional, State, and local levels in a timely man15 ner, 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 par25 ticular attention paid to State and local 

26 conditions; 
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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 (e)(2); 

18 and 

19 ‘‘(iii) shall meet the needs for the infor20 mation 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 and 

2 additivity of the data and information described 

3 in subparagraphs (A) and (B) from national, 

4 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 dissemi2 nation; 

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 employee 

8 of the Federal Government or agent of the Fed9 eral 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 submission 

5 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 an 

10 officer, employee, agent, or contractor of such a 

11 department or agency, for exclusively statistical 

12 purposes under this section shall be immune 

13 from the legal process and shall not, without the 

14 consent of the individual, agency, or other person 

15 who is the subject of the submission or provides 

16 that submission, be admitted as evidence or used 

17 for any purpose in any action, suit, or other ju18 dicial or administrative proceeding. 

19 ‘‘(C) RULE OF CONSTRUCTION.—Nothing in 

20 this section shall be construed to provide immu21 nity from the legal process for such submission 

22 (including any data derived from the submis23 sion) if the submission is in the possession of 

24 any person, agency, or entity other than the Fed25 eral Government or an officer, employee, agent, 
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1 or contractor of the Federal Government, or if 

2 the submission is independently collected, re3 tained, or produced for purposes other than the 

4 purposes of this Act. 

5 ‘‘(b) SYSTEM RESPONSIBILITIES.—

6 ‘‘(1) IN GENERAL.—The workforce and labor 

7 market information system described in subsection (a) 

8 shall be planned, administered, overseen, and evalu9 ated through a cooperative governance structure in10 volving the Federal Government and States. 

11 ‘‘(2) DUTIES.—The Secretary, with respect to 

12 data collection, analysis, and dissemination of labor 

13 employment statistics for the system, shall carry out 

14 the following duties: 

15 ‘‘(A) Assign responsibilities within the De16 partment of Labor for elements of the workforce 

17 and labor market information system described 

18 in subsection (a) to ensure that all statistical 

19 and administrative data collected is consistent 

20 with appropriate Bureau of Labor Statistics 

21 standards and definitions. 

22 ‘‘(B) Actively seek the cooperation of other 

23 Federal agencies to establish and maintain 

24 mechanisms for ensuring complementarity and 

25 nonduplication in the development and oper-
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1 ation of statistical and administrative data col2 lection activities. 

3 ‘‘(C) Eliminate gaps and duplication in 

4 statistical undertakings, with the systemization 

5 of wage surveys as an early priority. 

6 ‘‘(D) In collaboration with the Bureau of 

7 Labor Statistics and States, develop and main8 tain the elements of the workforce and labor mar9 ket information system described in subsection 

10 (a), including the development of consistent pro11 cedures and definitions for use by the States in 

12 collecting the data and information described in 

13 subparagraphs (A) and (B) of subsection (a)(1). 

14 ‘‘(E) Establish procedures for the system to 

15 ensure that—

16 ‘‘(i) such data and information are 

17 timely; 

18 ‘‘(ii) paperwork and reporting for the 

19 system are reduced to a minimum; and 

20 ‘‘(iii) States and localities are fully in21 volved in the development and continuous 

22 improvement of the system at all levels, in23 cluding ensuring the provision, to such 

24 States and localities, of budget information 
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1 necessary for carrying out their responsibil2 ities under subsection (e). 

3 ‘‘(c) NATIONAL ELECTRONIC TOOLS TO PROVIDE

4 SERVICES.—The Secretary is authorized to assist in the de5 velopment of national electronic tools that may be used to 

6 facilitate the delivery of core services described in section 

7 134 and to provide workforce information to individuals 

8 through the one-stop delivery systems described in section 

9 121 and through other appropriate delivery systems. 

10 ‘‘(d) COORDINATION WITH THE STATES.—

11 ‘‘(1) IN GENERAL.—The Secretary, working 

12 through the Bureau of Labor Statistics and the Em13 ployment and Training Administration, shall regu14 larly consult with representatives of State agencies 

15 carrying out workforce information activities regard16 ing strategies for improving the workforce and labor 

17 market information system. 

18 ‘‘(2) FORMAL CONSULTATIONS.—At least twice 

19 each year, the Secretary, working through the Bureau 

20 of Labor Statistics, shall conduct formal consultations 

21 regarding programs carried out by the Bureau of 

22 Labor Statistics with representatives of each of the 10 

23 Federal regions of the Department of Labor, elected 

24 from the State directors affiliated with State agencies 

25 that perform the duties described in subsection (e)(2). 
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1 ‘‘(e) STATE RESPONSIBILITIES.—

2 ‘‘(1) IN GENERAL.—In order to receive Federal 

3 financial assistance under this section, the Governor 

4 of a State shall—

5 ‘‘(A) be responsible for the management of 

6 the portions of the workforce and labor market 

7 information system described in subsection (a) 

8 that comprise a statewide workforce and labor 

9 market information system and for the State’s 

10 participation in the development of the annual 

11 plan; 

12 ‘‘(B) establish a process for the oversight of 

13 such system; 

14 ‘‘(C) consult with State and local employ15 ers, participants, and local workforce investment 

16 boards about the labor market relevance of the 

17 data to be collected and disseminated through the 

18 statewide workforce and labor market informa19 tion system; 

20 ‘‘(D) consult with State educational agen21 cies and local educational agencies concerning 

22 the provision of employment statistics in order to 

23 meet the needs of secondary school and postsec24 ondary school students who seek such informa25 tion; 
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1 ‘‘(E) collect and disseminate for the system, 

2 on behalf of the State and localities in the State, 

3 the information and data described in subpara4 graphs (A) and (B) of subsection (a)(1); 

5 ‘‘(F) maintain and continuously improve 

6 the statewide workforce and labor market infor7 mation system in accordance with this section; 

8 ‘‘(G) perform contract and grant respon9 sibilities for data collection, analysis, and dis10 semination for such system; 

11 ‘‘(H) conduct such other data collection, 

12 analysis, and dissemination activities as will en13 sure an effective statewide workforce and labor 

14 market information system; 

15 ‘‘(I) actively seek the participation of other 

16 State and local agencies in data collection, anal17 ysis, and dissemination activities in order to en18 sure complementarity, compatibility, and useful19 ness of data; 

20 ‘‘(J) participate in the development of the 

21 annual plan described in subsection (c); and 

22 ‘‘(K) utilize the quarterly records described 

23 in section 136(f)(2) of the Workforce Investment 

24 Act of 1998 to assist the State and other States 
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1 in measuring State progress on State perform2 ance measures. 

3 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in this 

4 section shall be construed as limiting the ability of a 

5 Governor to conduct additional data collection, anal6 ysis, and dissemination activities with State funds or 

7 with Federal funds from sources other than this sec8 tion. 

9 ‘‘(f) NONDUPLICATION REQUIREMENT.—None of the 

10 functions and activities carried out pursuant to this section 

11 shall duplicate the functions and activities carried out 

12 under the Carl D. Perkins Vocational and Applied Tech13 nology Education Act (20 U.S.C. 2301 et seq.). 

14 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized to be appropriated to carry out this section 

16 such sums as may be necessary for each of the fiscal years 

17 2006 through 2011. 

18 ‘‘(h) DEFINITION.—In this section, the term ‘local 

19 area’ means the smallest geographical area for which data 

20 can be produced with statistical reliability.’’. 

21 TITLE IV—AMENDMENTS TO THE 

22 REHABILITATION ACT OF 1973

23 SEC. 401. FINDINGS. 

24 Section 2(a) of the Rehabilitation Act of 1973 (29 

25 U.S.C. 701(a)) is amended—
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1 (1) in paragraph (5), by striking ‘‘and’’ at the 

2 end; 

3 (2) in paragraph (6), by striking the period and 

4 inserting ‘‘; and’’; and 

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

6 ‘‘(7) there is a substantial need to improve and 

7 expand services for students with disabilities under 

8 this Act.’’. 

9 SEC. 402. REHABILITATION SERVICES ADMINISTRATION. 

10 Section 3(a) of the Rehabilitation Act of 1973 (29 

11 U.S.C. 702(a)) is amended—

12 (1) by striking ‘‘Office of the Secretary’’ and in13 serting ‘‘Department of Education’’; 

14 (2) by striking ‘‘President by and with the ad15 vice and consent of the Senate’’ and inserting ‘‘Sec16 retary, except that the Commissioner appointed under 

17 the authority existing on the day prior to the date of 

18 enactment of the Job Training Improvement Act of 

19 2005 may continue to serve in the former capacity’’; 

20 and 

21 (3) by striking ‘‘, and the Commissioner shall be 

22 the principal officer,’’. 

23 SEC. 403. DIRECTOR. 

24 (a) IN GENERAL.—The Rehabilitation Act of 1973 (29 

25 U.S.C. 701 et seq.) is amended—
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1 (1) by striking ‘‘Commissioner’’ each place it ap2 pears, except in sections 3(a) (as amended by section 

3 402) and 21, and inserting ‘‘Director’’; 

4 (2) in section 100(d)(2)(B), by striking 

5 ‘‘COMMISIONER’’ and inserting ‘‘DIRECTOR’’; 

6 (3) in section 706, by striking 

7 ‘‘COMMISIONER’’ and inserting ‘‘DIRECTOR’’; and 

8 (4) in section 723(a)(3), by striking 

9 ‘‘COMMISIONER’’ and inserting ‘‘DIRECTOR’’. 

10 (b) EXCEPTION.—Section 21 of the Rehabilitation Act 

11 of 1973 (29 U.S.C. 718) is amended—

12 (1) in subsection (b)(1)—

13 (A) by striking ‘‘Commissioner’’ the first 

14 place it appears and inserting ‘‘Director of the 

15 Rehabilitation Services Administration’’; and 

16 (B) by striking ‘‘(referred to in this sub17 section as the ‘Director’)’’; and 

18 (2) by striking ‘‘Commissioner and the Director’’ 

19 each place it appears and inserting ‘‘both such Direc20 tors’’. 

21 SEC. 404. DEFINITIONS. 

22 Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 

23 705) is amended—
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1 (1) by redesignating paragraphs (35) through 

2 (39) as paragraphs (36), (37), (38), (40), and (41), 

3 respectively; 

4 (2) in subparagraph (A)(ii) of paragraph (36) 

5 (as redesignated in paragraph (1)), by striking 

6 ‘‘paragraph (36)(C)’’ and inserting ‘‘paragraph 

7 (37)(C)’’; 

8 (3) by inserting after paragraph (34) the fol9 lowing: 

10 ‘‘(35)(A) The term ‘student with a disability’ 

11 means an individual with a disability who—

12 ‘‘(i) is not younger than 16 and not older 

13 than 21; 

14 ‘‘(ii) has been determined to be eligible 

15 under section 102(a) for assistance under this 

16 title; and 

17 ‘‘(iii)(I) is eligible for, and is receiving, spe18 cial education under part B of the Individuals 

19 with Disabilities Education Act (20 U.S.C. 1411 

20 et seq.); or 

21 ‘‘(II) is an individual with a disability, for 

22 purposes of section 504. 

23 ‘‘(B) The term ‘students with disabilities’ means 

24 more than 1 student with a disability.’’; and 
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1 (4) by inserting after paragraph (38) (as redes2 ignated by paragraph (1)) the following: 

3 ‘‘(39) The term ‘transition services expansion 

4 year’ means—

5 ‘‘(A) the first fiscal year for which the 

6 amount appropriated under section 100(b) ex7 ceeds the amount appropriated under section 

8 100(b) for fiscal year 2004 by not less than 

9 $100,000,000; and 

10 ‘‘(B) each fiscal year subsequent to that first 

11 fiscal year.’’. 

12 SEC. 405. STATE PLAN. 

13 (a) COORDINATION WITH EDUCATION OFFICIALS AND

14 ASSISTIVE TECHNOLOGY PROGRAMS.—Section 101(a)(11) 

15 of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)(11)) 

16 is amended—

17 (1) in subparagraph (D)(i) by inserting ‘‘, which 

18 may be provided using alternative means of meeting 

19 participation (such as video conferences and con20 ference calls)’’ before the semicolon; and 

21 (2) by adding at the end the following: 

22 ‘‘(G) COORDINATION WITH ASSISTIVE TECH23 NOLOGY PROGRAMS.—The State plan shall in24 clude an assurance that the designated State 

25 unit and the lead agency responsible for carrying 
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1 out duties under the Assistive Technology Act of 

2 1998 (29 U.S.C. 3001), as amended, have devel3 oped working relationships and coordinate their 

4 activities.’’. 

5 (b) ASSESSMENT AND STRATEGIES.—Section 

6 101(a)(15) of the Rehabilitation Act of 1973 (29 U.S.C. 

7 721(a)(15)) is amended—

8 (1) in subparagraph (A) 

9 (A) in clause (i)—

10 (i) in subclause (II), by striking ‘‘and’’ 

11 at the end; 

12 (ii) in subclause (III), by adding 

13 ‘‘and’’ at the end; and 

14 (iii) by adding at the end the fol15 lowing: 

16 ‘‘(IV) in a transition services ex17 pansion year, students with disabil18 ities, including their need for transi19 tion services;’’; and 

20 (B) by redesignating clauses (ii) and (iii) 

21 as clauses (iii) and (iv), respectively, and insert22 ing after clause (i) the following: 

23 ‘‘(ii) include an assessment of the tran24 sition services provided under this Act, and 

25 coordinated with transition services under 
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1 the Individuals with Disabilities Education 

2 Act, as to those services meeting the needs of 

3 individuals with disabilities;’’; and 

4 (2) in subparagraph (D)—

5 (A) by redesignating clauses (iii), (iv), and 

6 (v) as clauses (iv), (v), and (vi), respectively; 

7 and 

8 (B) by inserting after clause (ii) the fol9 lowing: 

10 ‘‘(iii) in a transition services expan11 sion year, the methods to be used to improve 

12 and expand vocational rehabilitation serv13 ices for students with disabilities, including 

14 the coordination of services designed to fa15 cilitate the transition of such students from 

16 the receipt of educational services in school 

17 to the receipt of vocational rehabilitation 

18 services under this title or to postsecondary 

19 education or employment;’’. 

20 (c) SERVICES FOR STUDENTS WITH DISABILITIES.—

21 Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 

22 721(a)) is further amended by adding at the end the fol23 lowing: 

24 ‘‘(25) SERVICES FOR STUDENTS WITH DISABIL25 ITIES.—The State plan for a transition services ex-
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1 pansion year shall provide an assurance satisfactory 

2 to the Secretary that the State—

3 ‘‘(A) has developed and implemented strate4 gies to address the needs identified in the assess5 ment described in paragraph (15), and achieve 

6 the goals and priorities identified by the State, 

7 to improve and expand vocational rehabilitation 

8 services for students with disabilities on a state9 wide basis in accordance with paragraph (15); 

10 and 

11 ‘‘(B) from funds reserved under section 

12 110A, shall carry out programs or activities de13 signed to improve and expand vocational reha14 bilitation services for students with disabilities 

15 that—

16 ‘‘(i) facilitate the transition of the stu17 dents with disabilities from the receipt of 

18 educational services in school, to the receipt 

19 of vocational rehabilitation services under 

20 this title, including, at a minimum, those 

21 services specified in the interagency agree22 ment required in paragraph (11)(D); 

23 ‘‘(ii) improve the achievement of post24 school goals of students with disabilities, in25 cluding improving the achievement through 
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1 participation (as appropriate when voca2 tional goals are discussed) in meetings re3 garding individualized education programs 

4 developed under section 614 of the Individ5 uals with Disabilities Education Act (20 

6 U.S.C. 1414); 

7 ‘‘(iii) provide vocational guidance, ca8 reer exploration services, and job search 

9 skills and strategies and technical assistance 

10 to students with disabilities; 

11 ‘‘(iv) support the provision of training 

12 and technical assistance to State and local 

13 educational agency and designated State 

14 agency personnel responsible for the plan15 ning and provision of services to students 

16 with disabilities; and 

17 ‘‘(v) support outreach activities to stu18 dents with disabilities who are eligible for, 

19 and need, services under this title.’’. 

20 SEC. 406. SCOPE OF SERVICES. 

21 Section 103 of the Rehabilitation Act of 1973 (29 

22 U.S.C. 723) is amended—

23 (1) in subsection (a), by striking paragraph (15) 

24 and inserting the following: 
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1 ‘‘(15) transition services for students with dis2 abilities, that facilitate the achievement of the em3 ployment outcome identified in the individualized 

4 plan for employment, including, in a transition serv5 ices expansion year, services described in clauses (i) 

6 through (iii) of section 101(a)(25)(B);’’; 

7 (2) in subsection (b), by striking paragraph (6) 

8 and inserting the following: 

9 ‘‘(6)(A)(i) Consultation and technical assistance 

10 services to assist State and local educational agencies 

11 in planning for the transition of students with dis12 abilities from school to post-school activities, includ13 ing employment. 

14 ‘‘(ii) In a transition services expansion year, 

15 training and technical assistance described in section 

16 101(a)(25)(B)(iv). 

17 ‘‘(B) In a transition services expansion year, 

18 services for groups of individuals with disabilities 

19 who meet the requirements of clauses (i) and (iii) of 

20 section 7(35)(A), including services described in 

21 clauses (i), (ii), (iii), and (v) of section 

22 101(a)(25)(B), to assist in the transition from school 

23 to post-school activities.’’; and 

24 (3) in subsection (b) by inserting at the end, the 

25 following: 
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1 ‘‘(7) The establishment, development, or improve2 ment of assistive technology demonstration, loan, re3 utilization, or financing programs in coordination 

4 with activities authorized under the Assistive Tech5 nology Act of 1998 (29. U.S.C. 3001), as amended, to 

6 promote access to assistive technology for individuals 

7 with disabilities and employers.’’. 

8 SEC. 407. STANDARDS AND INDICATORS. 

9 Section 106(a) of the Rehabilitation Act of 1973 (29 

10 U.S.C. 726(a)) is amended by striking paragraph (1)(C) 

11 and all that follows through paragraph (2) and inserting 

12 the following: 

13 ‘‘(2) MEASURES.—The standards and indicators 

14 shall include outcome and related measures of pro15 gram performance that—

16 ‘‘(A) facilitate the accomplishment of the 

17 purpose and policy of this title; 

18 ‘‘(B) to the maximum extent practicable, 

19 are consistent with the core indicators of per20 formance, and corresponding State adjusted lev21 els of performance, established under section 

22 136(b) of the Workforce Investment Act of 1998 

23 (29 U.S.C. 2871(b)); and 

24 ‘‘(C) include measures of the program’s per25 formance with respect to the transition to post-
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1 school vocational activities, and achievement of 

2 the post-school vocational goals, of students with 

3 disabilities served under the program.’’. 

4 SEC. 408. RESERVATION FOR EXPANDED TRANSITION SERV5 ICES. 

6 The Rehabilitation Act of 1973 is amended by insert7 ing after section 110 (29 U.S.C. 730) the following: 

8 ‘‘SEC. 110A. RESERVATION FOR EXPANDED TRANSITION 

9 SERVICES. 

10 ‘‘(a) RESERVATION.—From the State allotment under 

11 section 110 in a transition services expansion year, each 

12 State shall reserve an amount calculated by the Director 

13 under subsection (b) to carry out programs and activities 

14 under sections 101(a)(25)(B) and 103(b)(6). 

15 ‘‘(b) CALCULATION.—The Director shall calculate the 

16 amount to be reserved for such programs and activities for 

17 a fiscal year by each State by multiplying $50,000,000 by 

18 the percentage determined by dividing—

19 ‘‘(1) the amount allotted to that State under sec20 tion 110 for the prior fiscal year, by 

21 ‘‘(2) the total amount allotted to all States under 

22 section 110 for that prior fiscal year.’’. 

23 SEC. 409. CLIENT ASSISTANCE PROGRAM. 

24 Section 112(e)(1) of the Rehabilitation Act of 1973 (29 

25 U.S.C. 732(e)(1)) is amended by redesignating subpara-
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1 graph (D) as subparagraph (E) and inserting after sub2 paragraph (C) the following: 

3 ‘‘(D) The Secretary shall make grants to the protection 

4 and advocacy system serving the American Indian Consor5 tium to provide services in accordance with this section. 

6 The amount of such grants shall be the same as provided 

7 to territories under this subsection. ’’. 

8 SEC. 410. PROTECTION AND ADVOCACY OF INDIVIDUAL 

9 RIGHTS. 

10 Section 509(g)(2) of the Rehabilitation Act of 1973 (29 

11 U.S.C. 794e(g)(2)) is amended by striking ‘‘was paid’’ and 

12 inserting ‘‘was paid, except that program income generated 

13 from such amount shall remain available to such system 

14 for one additional fiscal year’’. 

15 SEC. 411. CHAIRPERSON. 

16 Section 705(b)(5) of the Rehabilitation Act of 1973 (29 

17 U.S.C. 796d(b)(5)) is amended to read as follows: 

18 ‘‘(5) CHAIRPERSON.—The Council shall select a 

19 chairperson from among the voting membership of the 

20 Council.’’. 

21 SEC. 412. AUTHORIZATIONS OF APPROPRIATIONS. 

22 The Rehabilitation Act of 1973 is further amended—

23 (1) in section 100(b)(1) by striking ‘‘fiscal years 

24 1999 through 2003’’ and inserting ‘‘fiscal years 2006 

25 through 2011’’; 
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1 (2) in section 100(d)(1)(B) by striking ‘‘fiscal 

2 year 2003’’ and inserting ‘‘fiscal year 2011’’; 

3 (3) in section 110(c) by amending paragraph (2) 

4 to read as follows: 

5 ‘‘(2) The sum referred to in paragraph (1) shall 

6 be, as determined by the Secretary, not less than 1 

7 percent and not more than 1.5 percent of the amount 

8 referred to in paragraph (1) for each of fiscal years 

9 2003 through 2011.’’; 

10 (4) in section 112(h) by striking ‘‘fiscal years 

11 1999 through 2003’’ and inserting ‘‘fiscal years 2006 

12 through 2011’’; 

13 (5) in section 201(a) by striking ‘‘fiscal years 

14 1999 through 2003’’ each place it appears and insert15 ing ‘‘fiscal years 2006 through 2011’’; 

16 (6) in section 302(i) by striking ‘‘fiscal years 

17 1999 through 2003’’ and inserting ‘‘fiscal years 2006 

18 through 2011’’; 

19 (7) in section 303(e) by striking ‘‘fiscal years 

20 1999 through 2003’’ and inserting ‘‘fiscal years 2006 

21 through 2011’’; 

22 (8) in section 304(b) by striking ‘‘fiscal years 

23 1999 through 2003’’ and inserting ‘‘fiscal years 2006 

24 through 2011’’; 
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1 (9) in section 305(b) by striking ‘‘fiscal years 

2 1999 through 2003’’ and inserting ‘‘fiscal years 2006 

3 through 2011’’; 

4 (10) in section 405 by striking ‘‘fiscal years 1999 

5 through 2003’’ and inserting ‘‘fiscal years 2006 

6 through 2011’’; 

7 (11) in section 502(j) by striking ‘‘fiscal years 

8 1999 through 2003’’ and inserting ‘‘fiscal years 2006 

9 through 2011’’; 

10 (12) in section 509(l) by striking ‘‘fiscal years 

11 1999 through 2003’’ and inserting ‘‘fiscal years 2006 

12 through 2011’’; 

13 (13) in section 612 by striking ‘‘fiscal years 1999 

14 through 2003’’ and inserting ‘‘fiscal years 2006 

15 through 2011’’; 

16 (14) in section 628 by striking ‘‘fiscal years 1999 

17 through 2003’’ and inserting ‘‘fiscal years 2006 

18 through 2011’’; 

19 (15) in section 714 by striking ‘‘fiscal years 1999 

20 through 2003’’ and inserting ‘‘fiscal years 2006 

21 through 2011’’; 

22 (16) in section 727 by striking ‘‘fiscal years 1999 

23 through 2003’’ and inserting ‘‘fiscal years 2006 

24 through 2011’’; and 
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1 (17) in section 753 by striking ‘‘fiscal years 1999 

2 through 2003’’ and inserting ‘‘fiscal years 2006 

3 through 2011’’. 

4 SEC. 413. CONFORMING AMENDMENT. 

5 Section 1(b) of the Rehabilitation Act of 1973 is 

6 amended by inserting after the item relating to section 110 

7 the following:

‘‘Sec. 110A. Reservation for expanded transition services.’’.

8 SEC. 414. HELEN KELLER NATIONAL CENTER ACT. 

9 (a) GENERAL AUTHORIZATION OF APPROPRIATIONS.—

10 The first sentence of section 205(a) of the Helen Keller Na11 tional Center Act (29 U.S.C. 1904(a)) is amended by strik12 ing ‘‘1999 through 2003’’ and inserting ‘‘2006 through 

13 2011’’. 

14 (b) HELEN KELLER NATIONAL CENTER FEDERAL EN15 DOWMENT FUND.—The first sentence of section 208(h) of 

16 such Act (29 U.S.C. 1907(h)) is amended by striking ‘‘1999 

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

18 TITLE V—TRANSITION AND 

19 EFFECTIVE DATE 

20 SEC. 501. TRANSITION PROVISIONS. 

21 The Secretary of Labor shall take such actions as the 

22 Secretary determines to be appropriate to provide for the 

23 orderly implementation of this Act. 
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1 SEC. 502. EFFECTIVE DATE. 

2 Except as otherwise provided in this Act, this Act and 

3 the amendments made by this Act, shall take effect on the 

4 date of enactment of this Act. 
Union Calendar No. 4 

109TH CONGRESS 

1ST SESSION H. R. 27 

[Report No. 109–9] 

A BILL 

To enhance the workforce investment system of the 

ability, and for other purposes. ing youth, and improving performance accountservices, establishing a targeted approach to servsive array of employment, training, and related ments, promoting access to a more comprehenproviding for more effective governance arrangeNation by strengthening one-stop career centers, 

FEBRUARY 25, 2005 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union,