```

[House Report 112-699]
[From the U.S. Government Publishing Office]

112th Congress }                                     { Rept. 112-699

2d Session     }         HOUSE OF REPRESENTATIVES    {      Part 1
_______________________________________________________________________

              WORKFORCE INVESTMENT IMPROVEMENT ACT OF 2012

                               ----------                              

                              R E P O R T

                                 of the

                COMMITTEE ON EDUCATION AND THE WORKFORCE

                              to accompany

                               H.R. 4297

TO REFORM AND STRENGTHEN THE WORKFORCE INVESTMENT SYSTEM OF THE NATION 
     TO PUT AMERICANS BACK TO WORK AND MAKE THE UNITED STATES MORE 
                    COMPETITIVE IN THE 21ST CENTURY

                             together with

                             MINORITY VIEWS

                December 5, 2012.--Ordered to be printed

              WORKFORCE INVESTMENT IMPROVEMENT ACT OF 2012

112th Congress }                                       { Rept. 112-699

 2d Session    }        HOUSE OF REPRESENTATIVES       {      Part 1
_______________________________________________________________________

              WORKFORCE INVESTMENT IMPROVEMENT ACT OF 2012

                               __________

                              R E P O R T

                                 of the

                COMMITTEE ON EDUCATION AND THE WORKFORCE

                              to accompany

                               H.R. 4297

TO REFORM AND STRENGTHEN THE WORKFORCE INVESTMENT SYSTEM OF THE NATION 
     TO PUT AMERICANS BACK TO WORK AND MAKE THE UNITED STATES MORE 
                    COMPETITIVE IN THE 21ST CENTURY

                             together with

                             MINORITY VIEWS

                December 5, 2012.--Ordered to be printed

112th Congress }                                        { Rept. 112-699
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                        {      Part 1

======================================================================

 
              WORKFORCE INVESTMENT IMPROVEMENT ACT OF 2012

                                _______
                                

                December 5, 2012.--Ordered to be printed

                                _______
                                

Mr. Kline, from the Committee on Education and the Workforce, submitted 
                             the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 4297]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 4297) to reform and strengthen the 
workforce investment system of the Nation to put Americans back 
to work and make the United States more competitive in the 21st 
century, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Effective date.

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

              Subtitle A--Workforce Investment Definitions

Sec. 101. Definitions.

      Subtitle B--Statewide and Local Workforce Investment Systems

Sec. 102. Purpose.
Sec. 103. State workforce investment boards.
Sec. 104. State plan.
Sec. 105. Local workforce investment areas.
Sec. 106. Local workforce investment boards.
Sec. 107. Local plan.
Sec. 108. Establishment of one-stop delivery system.
Sec. 109. Identification of eligible providers of training services.
Sec. 110. General authorization.
Sec. 111. State allotments.
Sec. 112. Within State allocations.
Sec. 113. Use of funds for employment and training activities.
Sec. 114. Performance accountability system.
Sec. 115. Authorization of appropriations.

                         Subtitle C--Job Corps

Sec. 116. Job Corps purposes.
Sec. 117. Job Corps definitions.
Sec. 118. Individuals eligible for the job corps.
Sec. 119. Recruitment, screening, selection, and assignment of 
enrollees.
Sec. 120. Job Corps Centers.
Sec. 121. Program activities.
Sec. 122. Counseling and Job Placement.
Sec. 123. Support.
Sec. 124. Operations.
Sec. 125. Community participation.
Sec. 126. Workforce councils.
Sec. 127. Technical assistance.
Sec. 128. Special provisions.
Sec. 129. Performance accountability management.
Sec. 130. Closure of low-performing job corps centers.
Sec. 131. Reforms for opening new job corps centers.

                     Subtitle D--National Programs

Sec. 132. Technical assistance.
Sec. 133. Evaluations.
Sec. 134. Military transitional assistance.

                       Subtitle E--Administration

Sec. 135. Requirements and restrictions.
Sec. 136. Prompt allocation of funds.
Sec. 137. Fiscal controls; Sanctions.
Sec. 138. Reports to congress.
Sec. 139. Administrative provisions.
Sec. 140. State legislative authority.
Sec. 141. Continuation of State activities and policies.
Sec. 142. General program requirements.
Sec. 143. Department Staff.

                     Subtitle F--State Unified Plan

Sec. 144. State unified plan.

        TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

Sec. 201. Amendment.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

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

              TITLE IV--REPEALS AND CONFORMING AMENDMENTS

Sec. 401. Repeals.
Sec. 402. Amendment to the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980.
Sec. 403. Amendments to the Food and Nutrition Act of 2008.
Sec. 404. Conforming amendments to the United States Code.
Sec. 405. Conforming amendment to table of contents.

         TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973

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

SEC. 3. REFERENCES.

  Except as otherwise expressly provided, wherever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the amendment or repeal shall be 
considered to be made to a section or other provision of the Workforce 
Investment Act of 1998 (29 U.S.C. 9201 et seq.).

SEC. 4. EFFECTIVE DATE.

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

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

              Subtitle A--Workforce Investment Definitions

SEC. 101. DEFINITIONS.

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

      Subtitle B--Statewide and Local Workforce Investment Systems

SEC. 102. PURPOSE.

  Section 106 (29 U.S.C. 2811) is amended by adding at the end the 
following: ``It is also the purpose of this subtitle to provide 
workforce investment activities in a manner that enhances employer 
engagement, promotes customer choices in the selection of training 
services, and ensures accountability in the use of the taxpayer 
funds.''.

SEC. 103. STATE WORKFORCE INVESTMENT BOARDS.

  Section 111 (29 U.S.C. 2821) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1)--
                          (i) by striking subparagraph (B);
                          (ii) by redesignating subparagraph (C) as 
                        subparagraph (B); and
                          (iii) in subparagraph (B) (as so 
                        redesignated)--
                                  (I) by amending clause (i)(I), by 
                                striking ``section 117(b)(2)(A)(i)'' 
                                and inserting ``section 117(b)(2)(A)'';
                                  (II) by amending clause (i)(II) to 
                                read as follows:
                                  ``(II) represent businesses, 
                                including large and small businesses, 
                                with immediate and long-term employment 
                                opportunities in in-demand industries 
                                and other occupations important to the 
                                State economy; and'';
                                  (III) by striking clause (iii) and 
                                inserting the following:
                          ``(iii) a State agency official responsible 
                        for economic development; and'';
                                  (IV) by striking clauses (iv) through 
                                (vi);
                                  (V) by amending clause (vii) to read 
                                as follows:
                          ``(vii) such other representatives and State 
                        agency officials as the Governor may designate, 
                        including--
                                  ``(I) members of the State 
                                legislature;
                                  ``(II) representatives of individuals 
                                and organizations that have experience 
                                with respect to youth activities;
                                  ``(III) representatives of 
                                individuals and organizations that have 
                                experience and expertise in the 
                                delivery of workforce investment 
                                activities, including chief executive 
                                officers of community colleges and 
                                community-based organizations within 
                                the State;
                                  ``(IV) representatives of the lead 
                                State agency officials with 
                                responsibility for the programs and 
                                activities that are described in 
                                section 121(b) and carried out by one-
                                stop partners; or
                                  ``(V) representatives of veterans 
                                service organizations; and''; and
                                  (VI) by redesignating clause (vii) 
                                (as so amended) as clause (iv); and
                  (B) by amending paragraph (3) to read as follows:
          ``(3) Majority.--A \2/3\ majority of the members of the board 
        shall be representatives described in paragraph (1)(B)(i).'';
          (2) in subsection (c), by striking ``(b)(1)(C)(i)'' and 
        inserting ``(b)(1)(B)(i)'';
          (3) by amending subsection (d) to read as follows:
  ``(d) Functions.--The State board shall assist the Governor of the 
State as follows:
          ``(1) State plan.--Consistent with section 112, develop a 
        State plan.
          ``(2) Statewide workforce development system.--Review and 
        develop statewide policies and programs in the State in a 
        manner that supports a comprehensive Statewide workforce 
        development system that will result in meeting the workforce 
        needs of the State and its local areas. Such review shall 
        include determining whether the State should consolidate 
        additional programs into the Workforce Investment Fund under 
        section 132(b).
          ``(3) Workforce and labor market information system.--Develop 
        a statewide workforce and labor market information system 
        described in section 15(e) of the Wagner-Peyser Act, which may 
        include using existing information conducted by the State 
        economic development agency or related entity in developing 
        such system.
          ``(4) Employer engagement.--Develop strategies across local 
        areas that meet the needs of employers and support economic 
        growth in the State by enhancing communication, coordination, 
        and collaboration among employers, economic development 
        entities, and service providers.
          ``(5) Designation of local areas.--Designate local areas as 
        required under section 116.
          ``(6) One-stop delivery system.--Identify and disseminate 
        information on best practices for effective operation of one-
        stop centers, including use of innovative business outreach, 
        partnerships, and service delivery strategies.
          ``(7) Program oversight.--Conduct the following program 
        oversight:
                  ``(A) Reviewing and approving local plans under 
                section 118.
                  ``(B) Ensuring the appropriate use of management of 
                the funds provided for State employment and training 
                activities authorized under section 134.
                  ``(C) Preparing an annual report to the Secretary 
                described in section 136(d).
          ``(8) Development of performance measures.--Develop and 
        ensure continuous improvement of comprehensive State 
        performance measures, including State adjusted levels of 
        performance, as described under section 136(b).'';
          (4) by striking subsection (e) and redesignating subsection 
        (f) as subsection (e);
          (5) in subsection (e) (as so redesignated), by inserting ``or 
        participate in action taken'' after ``vote'';
          (6) by inserting after subsection (e) (as so redesignated), 
        the following:
  ``(f) Staff.--The State board may employ staff to assist in carrying 
out the functions described in subsection (d).''; and
          (7) in subsection (g), by inserting ``electronic means and'' 
        after ``on a regular basis through''.

SEC. 104. STATE PLAN.

  Section 112 (29 U.S.C. 2822)--
          (1) in subsection (a)--
                  (A) by striking ``127 or''; and
                  (B) by striking ``5-year strategy'' and inserting 
                ``3-year strategy'';
          (2) in subsection (b)--
                  (A) by amending paragraph (4) to read as follows:
          ``(4) information describing--
                  ``(A) the economic conditions in the State;
                  ``(B) the immediate and long-term skilled workforce 
                needs of in-demand industries, small businesses, and 
                other occupations important to the State economy;
                  ``(C) the knowledge and skills of the workforce in 
                the State; and
                  ``(D) workforce development activities (including 
                education and training) in the State;'';
                  (B) by amending paragraph (7) to read as follows:
          ``(7) a description of the State criteria for determining the 
        eligibility of training providers in accordance with section 
        122, including how the State will take into account the 
        performance of providers and whether the training programs 
        relate to occupations that are in-demand;'';
                  (C) by amending paragraph (8) to read as follows:
          ``(8)(A) a description of the procedures that will be taken 
        by the State to assure coordination of, and avoid duplication 
        among, the programs and activities identified under section 
        501(b)(2); and
          ``(B) a description of common data collection and reporting 
        processes used for the programs and activities described in 
        subparagraph (A), which are carried out by one-stop partners, 
        including--
                  ``(i) assurances that such processes use quarterly 
                wage records for performance measures described in 
                section 136(b)(2)(A) that are applicable to such 
                programs or activities; or
                  ``(ii) if such wage records are not being used for 
                the performance measures, an identification of the 
                barriers to using such wage records and a description 
                of how the State will address such barriers within one 
                year of the approval of the plan;'';
                  (D) in paragraph (9), by striking ``, including 
                comment by representatives of businesses and 
                representatives of labor organizations,'';
                  (E) in paragraph (11), by striking ``under sections 
                127 and 132'' and inserting ``under section 132'';
                  (F) by striking paragraph (12);
                  (G) by redesignating paragraphs (13) through (18) as 
                paragraphs (12) through (17), respectively;
                  (H) in paragraph (12) (as so redesignated), by 
                striking ``111(f)'' and inserting ``111(e)'';
                  (I) in paragraph (13) (as so redesignated), by 
                striking ``134(c)'' and inserting ``121(e)'';
                  (J) in paragraph (14) (as so redesignated), by 
                striking ``116(a)(5)'' and inserting ``116(a)(4)'';
                  (K) in paragraph (16) (as so redesignated)--
                          (i) in subparagraph (A)--
                                  (I) in clause (ii), by striking ``to 
                                dislocated workers'';
                                  (II) in clause (iii), by striking 
                                ``134(d)(4)'' and inserting 
                                ``134(c)(4)'';
                                  (III) by striking ``and'' at the end 
                                of clause (iii);
                                  (IV) by amending clause (iv) to read 
                                as follows:
                          ``(iv) how the State will serve the 
                        employment and training needs of dislocated 
                        workers (including displaced homemakers), low-
                        income individuals (including recipients of 
                        public assistance such as supplemental 
                        nutrition assistance program benefits pursuant 
                        to the Food and Nutrition Act of 2008 (7 U.S.C. 
                        2011 et seq.)), long-term unemployed 
                        individuals (including individuals who have 
                        exhausted entitlement to State and Federal 
                        unemployment compensation), English learners, 
                        homeless individuals, individuals training for 
                        nontraditional employment, youth (including 
                        out-of-school youth and at-risk youth), older 
                        workers, ex-offenders, migrant and seasonal 
                        farmworkers, refugee and entrants, veterans 
                        (including disabled and homeless veterans), and 
                        Native Americans; and''; and
                                  (V) by adding at the end the 
                                following new clause:
                          ``(v) how the State will--
                                  ``(I) consistent with section 188 and 
                                Executive Order 13217 (42 U.S.C. 12131 
                                note), serve the employment and 
                                training needs of individuals with 
                                disabilities; and
                                  ``(II) consistent with sections 504 
                                and 508 of the Rehabilitation Act of 
                                1973, include the provision of 
                                outreach, intake, assessments, and 
                                service delivery, the development of 
                                performance measures, the training of 
                                staff, and other aspects of 
                                accessibility to programs and services 
                                under this subtitle;''; and
                          (ii) in subparagraph (B), by striking ``to 
                        the extent practicable'' and inserting ``in 
                        accordance with the requirements of the Jobs 
                        for Veterans Act (Public Law 107-288) and the 
                        amendments made by such Act''; and
                  (L) by striking paragraph (17) (as so redesignated) 
                and inserting the following:
          ``(17) a description of the strategies and services that will 
        be used in the State--
                  ``(A) to more fully engage employers, including small 
                businesses and employers in in-demand industries and 
                occupations important to the State economy;
                  ``(B) to meet the needs of employers in the State; 
                and
                  ``(C) to better coordinate workforce development 
                programs with economic development;
          ``(18) a description of how the State board will convene (or 
        help to convene) industry or sector partnerships that lead to 
        collaborative planning, resource alignment, and training 
        efforts across multiple firms for a range of workers employed 
        or potentially employed by a targeted industry cluster--
                  ``(A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in targeted industry 
                clusters;
                  ``(B) to address the immediate and long-term skilled, 
                workforce needs of in-demand industries and other 
                occupations important to the State economy, and
                  ``(C) to address critical skill gaps within and 
                across industries;
          ``(19) a description of how the State will utilize technology 
        to facilitate access to services in remote areas, which may be 
        used throughout the State;
          ``(20) a description of the State strategy and assistance to 
        be provided for encouraging regional cooperation within the 
        State and across State borders, as appropriate;
          ``(21) a description of the actions that will be taken by the 
        State to foster communication, coordination, and partnerships 
        with non-profit organizations (including public libraries, 
        community, faith-based, and philanthropic organizations) that 
        provide employment-related, training, and complementary 
        services, to enhance the quality and comprehensiveness of 
        services available to participants under this title;
          ``(22) a description of the process and methodology for 
        determining--
                  ``(A) one-stop partner program contributions for the 
                cost of the infrastructure of one-stop centers under 
                section 121(h)(1); and
                  ``(B) the formula for allocating such infrastructure 
                funds to local areas under section 121(h)(3);
          ``(23) a description of the strategies and services that will 
        be used in the State to assist at-risk youth and out-of-school 
        youth in acquiring the education and skills, credentials 
        (including recognized postsecondary credentials and industry-
        recognized credentials), and employment experience to succeed 
        in the labor market, including--
                  ``(A) training and internships in in-demand 
                industries or occupations important to the State and 
                local economy;
                  ``(B) dropout recovery activities that are designed 
                to lead to the attainment of a regular secondary school 
                diploma or its recognized equivalent, or other State 
                recognized equivalent (including recognized alternative 
                standards for individuals with disabilities); and
                  ``(C) activities combining remediation of academic 
                skills, work readiness training, and work experience, 
                and including linkages to postsecondary education and 
                training and career-ladder employment; and
          ``(24) a description of--
                  ``(A) how the State will furnish employment, 
                training, supportive, and placement services to 
                veterans, including disabled and homeless veterans;
                  ``(B) the strategies and services that will be used 
                in the State to assist and expedite reintegration of 
                homeless veterans into the labor force; and
                  ``(C) the veteran population to be served in the 
                State.'';
          (3) in subsection (c), by striking ``period, that--'' all 
        that follows through paragraph (2) and inserting ``period, that 
        the plan is inconsistent with the provisions of this title.''; 
        and
          (4) in subsection (d), by striking ``5-year'' and inserting 
        ``3-year''.

SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS.

  Section 116 (29 U.S.C. 2831) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (A)--
                                  (I) by striking ``Except as provided 
                                in subsection (b), and consistent with 
                                paragraphs (2), (3), and (4), in'' and 
                                inserting ``In''; and
                                  (II) by striking ``127 or''; and
                          (ii) by amending subparagraph (B) to read as 
                        follows:
                  ``(B) Considerations.--In making the designation of 
                local areas, the Governor shall take into consideration 
                the following:
                          ``(i) The extent to which such local areas 
                        are consistent with labor market areas.
                          ``(ii) The extent to which labor market areas 
                        align with economic development regions.
                          ``(iii) Whether such local areas have the 
                        appropriate education and training providers to 
                        meet the needs of the local workforce.
                          ``(iv) The distance that individuals will 
                        need to travel to receive services provided in 
                        such local areas.'';
                  (B) by amending paragraph (2) to read as follows:
          ``(2) Technical assistance.--The Secretary shall, if 
        requested by the Governor of a State, provide the State with 
        technical assistance in making the determinations required 
        under paragraph (1). The Secretary shall not issue regulations 
        governing determinations to be made under paragraph (1).'';
                  (C) by striking paragraph (3) and inserting the 
                following:
          ``(3) Designation on recommendation of state board.--The 
        Governor may approve a request from any unit of general local 
        government (including a combination of such units) for 
        designation as a local area under paragraph (1) if the State 
        board determines, taking into account the factors described in 
        clauses (i) through (iv) of paragraph (1)(B), and recommends to 
        the Governor, that such area shall be so designated.'';
                  (D) by striking paragraph (4); and
                  (E) by redesignating paragraph (5) as paragraph (4);
          (2) by amending subsection (b) to read as follows:
  ``(b) Single States.--Consistent with subsection (a)(1)(B), the 
Governor may designate a State as a single State local area for the 
purposes of this title.''; and
          (3) in subsection (c)--
                  (A) in paragraph (1), by adding at the end the 
                following: ``The State may require the local boards for 
                the designated region to prepare a single regional plan 
                that incorporates the elements of the local plan under 
                section 118 and that is submitted and approved in lieu 
                of separate local plans under such section.''; and
                  (B) in paragraph (2), by striking ``employment 
                statistics'' and inserting ``workforce and labor market 
                information''.

SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS.

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

SEC. 107. LOCAL PLAN.

  Section 118 (29 U.S.C. 2833) is amended--
          (1) in subsection (a), by striking ``5-year'' and inserting 
        ``3-year'';
          (2) by amending subsection (b) to read as follows:
  ``(b) Contents.--The local plan shall include--
          ``(1) a description of the analysis of the local area's 
        economic and workforce conditions conducted under section 
        117(d)(2)(A)(i), and an assurance that the local board will use 
        such analysis to carry out the activities under this subtitle;
          ``(2) a description of the one-stop delivery system in the 
        local area, including--
                  ``(A) a description of how the local board will 
                ensure--
                          ``(i) the continuous improvement of eligible 
                        providers of services through the system; and
                          ``(ii) that such providers meet the 
                        employment needs of local businesses and 
                        participants; and
                  ``(B) a description of how the local board will 
                facilitate access to services provided through the one-
                stop delivery system consistent with section 117(d)(8);
          ``(3) a description of the strategies and services that will 
        be used in the local area--
                  ``(A) to more fully engage employers, including small 
                businesses and employers in in-demand industries and 
                occupations important to the local economy;
                  ``(B) to meet the needs of employers in the local 
                area;
                  ``(C) to better coordinate workforce development 
                programs with economic development; and
                  ``(D) to better coordinate workforce development 
                programs with employment, training, and literacy 
                services carried out by nonprofit organizations, 
                including libraries, as appropriate;
          ``(4) a description of how the local board will convene (or 
        help to convene) industry or sector partnerships that lead to 
        collaborative planning, resource alignment, and training 
        efforts across multiple firms for a range of workers employed 
        or potentially employed by a targeted industry cluster--
                  ``(A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in targeted industry 
                clusters;
                  ``(B) to address the immediate and long-term skilled 
                workforce needs of in-demand industries, small 
                businesses, and other occupations important to the 
                State economy; and
                  ``(C) to address critical skill gaps within and 
                across industries;
          ``(5) a description of how the funds reserved under section 
        117(d)(4)(A)(ii) will be used to carry out activities described 
        in section 134(c)(4);
          ``(6) a description of how the local board will coordinate 
        workforce investment activities carried out in the local area 
        with statewide activities, as appropriate;
          ``(7) a description of how the local area will--
                  ``(A) coordinate activities with the local area's 
                disability community and with services provided under 
                section 614(d)(1)(A)(i)(VIII) of the Individuals with 
                Disabilities Education Act (20 U.S.C. 
                1414(d)(1)(A)(i)(VIII)) by local educational agencies 
                serving such local area to make available 
                comprehensive, high-quality services to individuals 
                with disabilities;
                  ``(B) consistent with section 188 and Executive Order 
                13217 (42 U.S.C. 12131 note), serve the employment and 
                training needs of individuals with disabilities; and
                  ``(C) consistent with sections 504 and 508 of the 
                Rehabilitation Act of 1973, include the provision of 
                outreach, intake, assessments, and service delivery, 
                the development of performance measures, the training 
                of staff, and other aspects of accessibility to 
                programs and services under this subtitle;
          ``(8) a description of the local levels of performance 
        negotiated with the Governor and chief elected official 
        pursuant to section 136(c), to be--
                  ``(A) used to measure the performance of the local 
                area; and
                  ``(B) used by the local board for measuring 
                performance of the local fiscal agent (where 
                appropriate), eligible providers, and the one-stop 
                delivery system, in the local area;
          ``(9) a description of the process used by the local board, 
        consistent with subsection (c), to provide an opportunity for 
        public comment prior to submission of the plan;
          ``(10) a description of how the local area will serve the 
        employment and training needs of dislocated workers (including 
        displaced homemakers), low-income individuals (including 
        recipients of public assistance such as the Supplemental 
        Nutrition Assistance Program), long-term unemployed individuals 
        (including individuals who have exhausted entitlement to State 
        and Federal unemployment compensation), English learners, 
        homeless individuals, individuals training for nontraditional 
        employment, youth (including out-of-school youth and at-risk 
        youth), older workers, ex-offenders, migrant and seasonal 
        farmworkers, refugee and entrants, veterans (including disabled 
        veterans and homeless veterans), and Native Americans;
          ``(11) an identification of the entity responsible for the 
        disbursal of grant funds described in subclause (III) of 
        section 117(d)(4)(B)(i), as determined by the chief elected 
        official or the Governor under such section;
          ``(12) a description of the strategies and services that will 
        be used in the local area to assist at-risk youth and out-of-
        school youth in acquiring the education and skills, credentials 
        (including recognized postsecondary credentials and industry-
        recognized credentials), and employment experience to succeed 
        in the labor market, including--
                  ``(A) training and internships in in-demand 
                industries or occupations important to the State and 
                local economy;
                  ``(B) dropout recovery activities that are designed 
                to lead to the attainment of a regular secondary school 
                diploma or its recognized equivalent, or other State 
                recognized equivalent (including recognized alternative 
                standards for individuals with disabilities); and
                  ``(C) activities combining remediation of academic 
                skills, work readiness training, and work experience, 
                and including linkages to postsecondary education and 
                training and career-ladder employment;
          ``(13) a description of--
                  ``(A) how the local area will furnish employment, 
                training, supportive, and placement services to 
                veterans, including disabled and homeless veterans;
                  ``(B) the strategies and services that will be used 
                in the local area to assist and expedite reintegration 
                of homeless veterans into the labor force; and
                  ``(C) the veteran population to be served in the 
                local area;
          ``(14) a description of--
                  ``(A) the duties assigned to the veteran employment 
                specialist consistent with the requirements of section 
                134(f);
                  ``(B) the manner in which the veteran employment 
                specialist is integrated into the One-Stop Career 
                System described in section 121;
                  ``(C) the date on which the veteran employment 
                specialist was assigned; and
                  ``(D) whether the veteran employment specialist has 
                satisfactorily competed such training by the National 
                Veterans' Employment and Training Services Institute; 
                and
          ``(15) such other information as the Governor may require.'';
          (3) in subsection (c)(1), by striking ``such means'' and 
        inserting ``electronic means such''; and
          (4) in subsection (c)(2), by striking ``, including 
        representatives of business and representatives of labor 
        organizations,''.

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

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

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

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

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

  ``(a) Eligibility.--
          ``(1) In general.--The Governor, after consultation with the 
        State board, shall establish criteria and procedures regarding 
        the eligibility of providers of training services described in 
        section 134(c)(4) to receive funds provided under section 
        133(b) for the provision of such training services.
          ``(2) Providers.--Subject to the provisions of this section, 
        to be eligible to receive the funds provided under section 
        133(b) for the provision of training services, the provider 
        shall be--
                  ``(A) a postsecondary educational institution that--
                          ``(i) is eligible to receive Federal funds 
                        under title IV of the Higher Education Act of 
                        1965 (20 U.S.C. 1070 et seq.); and
                          ``(ii) provides a program that leads to an 
                        associate degree, baccalaureate degree, or 
                        industry-recognized certification;
                  ``(B) an entity that carries out programs under the 
                Act of August 16, 1937 (commonly known as the `National 
                Apprenticeship Act'; 50 Stat. 664, chapter 663; 29 
                U.S.C. 50 et seq.); or
                  ``(C) another public or private provider of a program 
                of training services.
          ``(3) Inclusion in list of eligible providers.--A provider 
        described in subparagraph (A) or (C) of paragraph (2) shall 
        comply with the criteria and procedures established under this 
        section to be included on the list of eligible providers of 
        training services described in subsection (d)(1). A provider 
        described in paragraph (2)(B) shall be included on the list of 
        eligible providers of training services described in subsection 
        (d)(1) for so long as the provider remains certified by the 
        Secretary of Labor to carry out the programs described in 
        paragraph (2)(B).
  ``(b) Criteria.--
          ``(1) In general.--The criteria established pursuant to 
        subsection (a) shall take into account--
                  ``(A) the performance of providers of training 
                services with respect to the performance measures 
                described in section 136 and other matters for which 
                information is required under paragraph (2) and other 
                appropriate measures of performance outcomes for those 
                participants receiving training services under this 
                subtitle (taking into consideration the characteristics 
                of the population served and relevant economic 
                conditions);
                  ``(B) whether the training programs of such providers 
                relate to occupations that are in demand;
                  ``(C) the need to ensure access to training services 
                throughout the State, including in rural areas;
                  ``(D) the ability of providers to offer programs that 
                lead to a degree or an industry-recognized 
                certification, certificate, or mastery;
                  ``(E) the information such providers are required to 
                report to State agencies with respect to other Federal 
                and State programs (other than the program carried out 
                under this subtitle), including one-stop partner 
                programs; and
                  ``(F) such other factors as the Governor determines 
                are appropriate.
          ``(2) Information.--The criteria established by the Governor 
        shall require that a provider of training services submit 
        appropriate, accurate, and timely information to the State for 
        purposes of carrying out subsection (d), with respect to 
        participants receiving training services under this subtitle in 
        the applicable program, including--
                  ``(A) information on degrees and industry-recognized 
                certifications received by such participants;
                  ``(B) information on costs of attendance for such 
                participants;
                  ``(C) information on the program completion rate for 
                such participants; and
                  ``(D) information on the performance of the provider 
                with respect to the performance measures described in 
                section 136 for such participants (taking into 
                consideration the characteristics of the population 
                served and relevant economic conditions), which shall 
                include information specifying the percentage of such 
                participants who entered unsubsidized employment in an 
                occupation related to the program.
          ``(3) Renewal.--The criteria established by the Governor 
        shall also provide for biennial review and renewal of 
        eligibility under this section for providers of training 
        services.
          ``(4) Local criteria.--A local board in the State may 
        establish criteria in addition to the criteria established by 
        the Governor, or may require higher levels of performance than 
        required under the criteria established by the Governor, for 
        purposes of determining the eligibility of providers of 
        training services to receive funds described in subsection (a) 
        to provide the services in the local area involved.
          ``(5) Limitation.--In carrying out the requirements of this 
        subsection, no personally identifiable information regarding a 
        student, including Social Security number, student 
        identification number, or other identifier, may be disclosed 
        without the prior written consent of the parent or eligible 
        student in compliance with section 444 of the General Education 
        Provisions Act (20 U.S.C. 1232g).
  ``(c) Procedures.--The procedures established under subsection (a) 
shall--
          ``(1) identify--
                  ``(A) the application process for a provider of 
                training services to become eligible to receive funds 
                under section 133(b) for the provision of training 
                services; and
                  ``(B) the respective roles of the State and local 
                areas in receiving and reviewing applications and in 
                making determinations of eligibility based on the 
                criteria established under this section; and
          ``(2) establish a process for a provider of training services 
        to appeal a denial or termination of eligibility under this 
        section that includes an opportunity for a hearing and 
        prescribes appropriate time limits to ensure prompt resolution 
        of the appeal.
  ``(d) Information To Assist Participants in Choosing Providers.--
          ``(1) In general.--In order to facilitate and assist 
        participants under chapter 5 in choosing providers of training 
        services, the Governor shall ensure that an appropriate list or 
        lists of providers determined eligible under this section in 
        the State, including information regarding the occupations in 
        demand that relate to the training programs of such providers 
        and the accompanying information described in paragraph (2), is 
        provided to the local boards in the State to be made available 
        to such participants and to members of the public through the 
        one-stop delivery system in the State.
          ``(2) Availability through one-stop delivery system.--The 
        list and the accompanying information shall be made available 
        to such participants and to members of the public through the 
        one-stop delivery system in the State.
  ``(e) Enforcement.--
          ``(1) In general.--The criteria and procedures established 
        under this section shall provide the following:
                  ``(A) Intentionally supplying inaccurate 
                information.--Upon a determination, by an individual or 
                entity specified in the criteria or procedures, that a 
                provider of training services, or individual providing 
                information on behalf of the provider, intentionally 
                supplied inaccurate information under this section, the 
                eligibility of such provider to receive funds under 
                chapter 5 shall be terminated for a period of time that 
                is not less than 2 years.
                  ``(B) Substantial violations.--Upon a determination, 
                by an individual or entity specified in the criteria or 
                procedures, that a provider of training services 
                substantially violated any requirement under this 
                title, the eligibility of such provider to receive 
                funds under the program involved shall be terminated.
                  ``(C) Repayment.--A provider of training services 
                whose eligibility is terminated under subparagraph (A) 
                or (B) shall be liable for the repayment of funds 
                received under chapter 5 during a period of 
                noncompliance described in such subparagraph.
          ``(2) Construction.--Paragraph (1) shall be construed to 
        provide remedies and penalties that supplement, but do not 
        supplant, other civil and criminal remedies and penalties.
  ``(f) Agreements With Other States.--States may enter into 
agreements, on a reciprocal basis, to permit eligible providers of 
training services to accept career enhancement accounts provided in 
another State.
  ``(g) Recommendations.--In developing the criteria, procedures, and 
information required under this section, the Governor shall solicit and 
take into consideration the recommendations of local boards and 
providers of training services within the State.
  ``(h) Opportunity To Submit Comments.--During the development of the 
criteria, procedures, requirements for information, and the list of 
eligible providers required under this section, the Governor shall 
provide an opportunity for interested members of the public to submit 
comments regarding such criteria, procedures, and information.
  ``(i) On-the-Job Training or Customized Training Exception.--
          ``(1) In general.--Providers of on-the-job training or 
        customized training shall not be subject to the requirements of 
        subsections (a) through (d).
          ``(2) Collection and dissemination of information.--A one-
        stop operator in a local area shall collect such performance 
        information from on-the-job training and customized training 
        providers as the Governor may require, determine whether the 
        providers meet such performance criteria as the Governor may 
        require, and disseminate information identifying providers that 
        meet the criteria as eligible providers, and the performance 
        information, through the one-stop delivery system. Providers 
        determined to meet the criteria shall be considered to be 
        identified as eligible providers of training services.''.

SEC. 110. GENERAL AUTHORIZATION.

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

SEC. 111. STATE ALLOTMENTS.

  Section 132 (29 U.S.C. 2862) is amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) In General.--The Secretary shall--
          ``(1) reserve \1/2\ of 1 percent of the total amount 
        appropriated under section 137 for a fiscal year, of which--
                  ``(A) 50 percent shall be used to provide technical 
                assistance under section 170; and
                  ``(B) 50 percent shall be used for evaluations under 
                section 172;
          ``(2) reserve not more than 2 percent of the total amount 
        appropriated under section 137 for a fiscal year to make grants 
        to, and enter into contracts or cooperative agreements with 
        Indian tribes, tribal organizations, Alaska-Native entities, 
        Indian-controlled organizations serving Indians, or Native 
        Hawaiian organizations to carry out employment and training 
        activities;
          ``(3) reserve not more than 28 percent of the total amount 
        appropriated under section 137 for a fiscal year to carry out 
        the Jobs Corps program under subtitle C;
          ``(4) reserve not more than 0.15 percent of the total amount 
        appropriated under section 137 for a fiscal year to carry out 
        military transitional assistance under section 175; and
          ``(5) from the remaining amount appropriated under section 
        137 for a fiscal year (after reserving funds under paragraphs 
        (1) through (4)), make allotments in accordance with subsection 
        (b) of this section.''; and
          (2) by amending subsection (b) to read as follows:
  ``(b) Workforce Investment Fund.--
          ``(1) Reservation for outlying areas.--
                  ``(A) In general.--From the amount made available 
                under subsection (a)(5) for a fiscal year, the 
                Secretary shall reserve not more than \1/4\ of 1 
                percent to provide assistance to the outlying areas.
                  ``(B) Restriction.--The Republic of Palau shall cease 
                to be eligible to receive funding under this 
                subparagraph upon entering into an agreement for 
                extension of United States educational assistance under 
                the Compact of Free Association (approved by the 
                Compact of Free Association Amendments Act of 2003 
                (Public Law 99-658)) after the date of enactment of the 
                Workforce Investment Improvement Act of 2012.
          ``(2) States.--
                  ``(A) In general.--After determining the amount to be 
                reserved under paragraph (1), the Secretary shall allot 
                the remainder of the amount referred to in subsection 
                (a)(5) for a fiscal year to the States pursuant to 
                subparagraph (B) for employment and training activities 
                and statewide workforce investment activities.
                  ``(B) Formula.--Subject to subparagraphs (C) and (D), 
                of the remainder--
                          ``(i) 25 percent shall be allotted on the 
                        basis of the relative number of unemployed 
                        individuals in areas of substantial 
                        unemployment in each State, compared to the 
                        total number of unemployed individuals in areas 
                        of substantial unemployment in all States;
                          ``(ii) 25 percent shall be allotted on the 
                        basis of the relative number of individuals in 
                        the civilian labor force in each State, 
                        compared to the total number of such 
                        individuals in all States;
                          ``(iii) 25 percent shall be allotted on the 
                        basis of the relative number of individuals in 
                        each State who have been unemployed for 15 
                        weeks or more, compared to the total number of 
                        individuals in all States who have been 
                        unemployed for 15 weeks or more; and
                          ``(iv) 25 percent shall be allotted on the 
                        basis of the relative number of disadvantaged 
                        youth in each State, compared to the total 
                        number of disadvantaged youth in all States.
                  ``(C) Minimum and maximum percentages.--
                          ``(i) Minimum percentage.--The Secretary 
                        shall ensure that no State shall receive an 
                        allotment under this paragraph for--
                                  ``(I) fiscal year 2013, that is less 
                                than 100 percent of the allotment 
                                percentage of the State for the 
                                preceding fiscal year; and
                                  ``(II) fiscal year 2014 and each 
                                succeeding fiscal year, that is less 
                                than 90 percent of the allotment 
                                percentage of the State for the 
                                preceding fiscal year.
                          ``(ii) Maximum percentage.--Subject to clause 
                        (i), the Secretary shall ensure that no State 
                        shall receive an allotment under this paragraph 
                        for a fiscal year that is more than 130 percent 
                        of the allotment percentage of the State for 
                        the preceding fiscal year.
                  ``(D) Small state minimum allotment.--Subject to 
                subparagraph (C), the Secretary shall ensure that no 
                State shall receive an allotment under this paragraph 
                for a fiscal year that is less than \2/10\ of 1 percent 
                of the remainder described in subparagraph (A) for the 
                fiscal year.
                  ``(E) Definitions.--For the purpose of the formula 
                specified in this paragraph:
                          ``(i) Allotment percentage.--The term 
                        `allotment percentage'--
                                  ``(I) used with respect to fiscal 
                                year 2012, means the percentage of the 
                                amounts allotted to States under title 
                                I of this Act, title V of the Older 
                                Americans Act of 1965, sections 4103A 
                                and 4104 of title 38, United States 
                                Code, section 2021 of title 38, United 
                                States Code, section 1144 of title 10, 
                                United States Code, and sections 1 
                                through 14 of the Wagner-Peyser Act, as 
                                such provisions were in effect on the 
                                day before the date of enactment of the 
                                Workforce Investment Improvement Act of 
                                2012, that is received under such 
                                provisions by the State involved for 
                                fiscal year 2012; and
                                  ``(II) used with respect to fiscal 
                                year 2013 or a subsequent year, means 
                                the percentage of the amounts allotted 
                                to States for fiscal year 2012 under 
                                the provisions described in subclause 
                                (I) that is received through an 
                                allotment made under this paragraph for 
                                the fiscal year.
                          ``(ii) Disadvantaged youth.--The term 
                        `disadvantaged youth' means an individual who 
                        is not less than age 16 and not more than age 
                        24 who receives an income, or is a member of a 
                        family that received a total family income, 
                        that in relation to family size, does not 
                        exceed the higher of--
                                  ``(I) the poverty line; or
                                  ``(II) 70 percent of the lower living 
                                standard income level.
                          ``(iii) Individual.--The term `individual' 
                        means an individual who is not less than age 16 
                        and not more than age 72.''.

SEC. 112. WITHIN STATE ALLOCATIONS.

  Section 133 is amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) Reservations for Statewide Employment and Training 
Activities.--
          ``(1) In general.--The Governor of a State shall reserve up 
        to 10 percent of the total amount allotted to the State under 
        section 132(b)(2) for a fiscal year to carry out the statewide 
        activities described in paragraphs (2) and (3) of section 
        134(a).
          ``(2) Statewide rapid response activities.--Of the amount 
        reserved under paragraph (1) for a fiscal year, the Governor of 
        the State shall reserve not more than 10 percent for statewide 
        rapid response activities described in section 134(a)(4).
          ``(3) Statewide individuals with barriers to employment 
        grants.--The Governor of a State shall reserve 2 percent of the 
        total amount allotted to the State under section 132(b)(2) for 
        a fiscal year to carry out statewide activities described in 
        section 134(a)(5).'';
          (2) by amending subsection (b) to read as follows:
  ``(b) Within State Allocation.--
          ``(1) Statewide employment and training activities.--The 
        Governor, acting in accordance with the State plan, and after 
        consulting with chief elected officials in the local areas, 
        shall--
                  ``(A) allocate the funds that are allotted to the 
                State for employment and training activities and not 
                reserved under subsection (a), in accordance with 
                paragraph (2)(A); and
                  ``(B) award the funds that are reserved by the State 
                under subsection (a)(3) through competitive grants to 
                eligible entities, in accordance with section 
                134(a)(1)(C).
          ``(2) Formula allocations for the workforce investment 
        fund.--
                  ``(A) Allocation.--In allocating the funds described 
                in paragraph (1)(A) to local areas, a State shall 
                allocate--
                          ``(i) 25 percent on the basis described in 
                        section 132(b)(2)(B)(i);
                          ``(ii) 25 percent on the basis described in 
                        section 132(b)(2)(B)(ii);
                          ``(iii) 25 percent on the basis described in 
                        section 132(b)(B)(iii); and
                          ``(iv) 25 percent on the basis described in 
                        section 132(b)(2)(B)(iv).
                  ``(B) Minimum and maximum percentages.--
                          ``(i) Minimum percentage.--The State shall 
                        ensure that no local area shall receive an 
                        allocation under this paragraph for--
                                  ``(I) fiscal year 2013, that is less 
                                than 100 percent of the allocation 
                                percentage of the local area for the 
                                preceding fiscal year; and
                                  ``(II) fiscal year 2014 and each 
                                succeeding fiscal year, that is less 
                                than 90 percent of the allocation 
                                percentage of the local area for the 
                                preceding fiscal year.
                          ``(ii) Maximum percentage.--Subject to clause 
                        (i), the State shall ensure that no local area 
                        shall receive an allocation for a fiscal year 
                        under this paragraph for a fiscal year that is 
                        more than 130 percent of the allocation 
                        percentage of the local area for the preceding 
                        fiscal year.
                  ``(C) Definitions.--For the purpose of the formula 
                specified in this paragraph, the term `allocation 
                percentage'--
                          ``(i) used with respect to fiscal year 2012, 
                        means the percentage of the amounts allocated 
                        to local areas under title I of this Act, title 
                        V of the Older Americans Act of 1965, sections 
                        4103A and 4104 of title 38, United States Code, 
                        section 2021 of title 38, United States Code, 
                        section 1144 of title 10, United States Code, 
                        and sections 1 through 14 of the Wagner-Peyser 
                        Act, as such provisions were in effect on the 
                        day before the date of enactment of the 
                        Workforce Investment Improvement Act of 2012, 
                        that is received under such provisions by the 
                        local area involved for fiscal year 2012; and
                          ``(ii) used with respect to fiscal year 2013 
                        or a subsequent year, means the percentage of 
                        the amounts allocated to local areas for fiscal 
                        year 2012 under the provisions described in 
                        clause (i) that is received through an 
                        allocation made under this paragraph for the 
                        fiscal year.'';
          (3) in subsection (c)--
                  (A) by amending paragraph (1) to read as follows:
          ``(1) In general.--The Governor, may in accordance with this 
        subsection, reallocate to eligible local areas within the State 
        amounts that are allocated under subsection (b) for employment 
        and training activities and that are available for 
        reallocation.'';
                  (B) in paragraph (2), by striking ``paragraph (2)(A) 
                or (3) of subsection (b) for such activities'' and 
                inserting ``subsection (b) for such activities'';
                  (C) by amending paragraph (3) to read as follows:
          ``(3) Reallocations.--In making reallocations to eligible 
        local areas of amounts available pursuant to paragraph (2) for 
        a program year, the Governor shall allocate to each eligible 
        local area within the State an amount based on the relative 
        amount allocated to such local area under subsection (b)(2) for 
        such activities for such prior program year, as compared to the 
        total amount allocated to all eligible local areas in the State 
        under subsection (b)(2) for such activities for such prior 
        program year.''; and
                  (D) in paragraph (4), by striking ``paragraph (2)(A) 
                or (3) of''; and
          (4) by adding at the end the following new subsection:
  ``(d) Local Administrative Cost Limit.--Of the amounts allocated to a 
local area under this section for a fiscal year, not more than 10 
percent of the amount may be used by the local board involved for the 
administrative costs of carrying out local workforce investment 
activities in the local area under this chapter.''.

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

  Section 134 is amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) Statewide Employment and Training Activities.--
          ``(1) In general.--
                  ``(A) Distribution of statewide activities.--Funds 
                reserved by a Governor for a State as described in 
                section 133(a)(1)--
                          ``(i) shall be used to carry out the 
                        statewide employment and training activities 
                        described in paragraph (2); and
                          ``(ii) may be used to carry out any of the 
                        statewide employment and training activities 
                        described in paragraph (3).
                  ``(B) Statewide rapid response activities.--Funds 
                reserved by a Governor for a State as described in 
                section 133(a)(2) shall be used to carry out the 
                statewide rapid response activities described in 
                paragraph (4).
                  ``(C) Statewide individuals with barriers to 
                employment grants.--Funds reserved by a Governor for a 
                State as described in section 133(a)(3) shall be used 
                to carry out the Statewide Individuals with Barriers to 
                Employment Grant competition described in paragraph 
                (5).
          ``(2) Required statewide employment and training 
        activities.--A State shall use funds reserved as described in 
        section 133(a)(1) to carry out statewide employment and 
        training activities, which shall include--
                  ``(A) supporting the provision of work ready services 
                described in subsection (c)(2) in the one-stop delivery 
                system;
                  ``(B) implementing innovative programs and strategies 
                designed to meet the needs of all employers in the 
                State, including small employers, which may include 
                incumbent worker training programs, sectoral and 
                industry cluster strategies and partnerships, career 
                ladder programs, micro-enterprise and entrepreneurial 
                training and support programs, utilization of effective 
                business intermediaries, activities to improve linkages 
                between the one-stop delivery system in the State and 
                all employers (including small employers) in the State, 
                and other business services and strategies that better 
                engage employers in workforce investment activities and 
                make the workforce investment system more relevant to 
                the needs of State and local businesses, consistent 
                with the objectives of this title;
                  ``(C) implementing strategies and services that will 
                be used in the State to assist at-risk youth and out-
                of-school youth in acquiring the education and skills, 
                credentials (including recognized postsecondary 
                credentials and industry-recognized credentials), and 
                employment experience to succeed in the labor market; 
                and
                  ``(D) conducting evaluations under section 136(e) of 
                activities authorized under this chapter in 
                coordination with evaluations carried out by the 
                Secretary under section 172.
          ``(3) Allowable statewide employment and training 
        activities.--A State may use funds reserved as described in 
        section 133(a)(1) to carry out statewide employment and 
        training activities which may include--
                  ``(A) providing incentive grants to local areas for 
                regional cooperation among local boards (including 
                local boards in a designated region as described in 
                section 116(c)), for local coordination of activities 
                carried out under this Act, and for exemplary 
                performance by local areas on the local performance 
                measures;
                  ``(B) providing technical assistance and capacity 
                building to local areas, one-stop operators, one-stop 
                partners, and eligible providers, including the 
                development and training of staff, the development of 
                exemplary program activities, and the provision of 
                technical assistance to local areas that fail to meet 
                local performance measures;
                  ``(C) operating a fiscal and management 
                accountability system under section 136(f);
                  ``(D) carrying out monitoring and oversight of 
                activities carried out under this chapter;
                  ``(E) developing strategies for effectively 
                integrating programs and services among one-stop 
                partners;
                  ``(F) carrying out activities to facilitate remote 
                access to services provided through a one-stop delivery 
                system, including facilitating access through the use 
                of technology; and
                  ``(G) incorporating pay-for-performance contracting 
                strategies as an element in funding activities under 
                this section.
          ``(4) Statewide rapid response activities.--A State shall use 
        funds reserved as described in section 133(a)(2) to carry out 
        statewide rapid response activities, which shall include--
                  ``(A) provision of rapid response activities, carried 
                out in local areas by the State or by an entity 
                designated by the State, working in conjunction with 
                the local boards and the chief elected officials in the 
                local areas; and
                  ``(B) provision of additional assistance to local 
                areas that experience disasters, mass layoffs or plant 
                closings, or other events that precipitate substantial 
                increases in the number of unemployed individuals, 
                carried out in local areas by the State or by an entity 
                designated by the State, working in conjunction with 
                the local boards and the chief elected officials in the 
                local areas.
          ``(5) Statewide grants for individuals with barriers to 
        employment.--
                  ``(A) In general.--Of the funds reserved as described 
                in section 133(a)(3), the Governor of a State--
                          ``(i) may reserve up to 5 percent to provide 
                        technical assistance to, and conduct 
                        evaluations as described in section 136(e), of 
                        the programs and activities carried out under 
                        this paragraph; and
                          ``(ii) using the remainder, shall award 
                        grants on a competitive basis to eligible 
                        entities described in subparagraph (B) to carry 
                        out employment and training programs authorized 
                        under this paragraph for individuals with 
                        barriers to employment that meet specific 
                        performance outcomes and criteria established 
                        by the Governor under subparagraph (G).
                  ``(B) Eligible entity defined.--For purposes of this 
                paragraph, the term `eligible entity' means an entity 
                that--
                          ``(i) is a--
                                  ``(I) local board or a consortium of 
                                local boards;
                                  ``(II) nonprofit entity, for profit 
                                entity, or a consortium of nonprofit or 
                                for-profit entities; or
                                  ``(III) consortium of the entities 
                                described in subclauses (I) and (II);
                          ``(ii) has a demonstrated record of placing 
                        individuals into unsubsidized employment and 
                        serving hard to serve individuals; and
                          ``(iii) agrees to be reimbursed primarily on 
                        the basis of achievement of specified 
                        performance outcomes and criteria established 
                        under subparagraph (F).
                  ``(C) Grant period.--
                          ``(i) In general.--A grant under this 
                        paragraph shall be awarded for a period of 1 
                        year.
                          ``(ii) Grant renewal.--A Governor of a State 
                        may renew, for up to 4 additional 1-year 
                        periods, a grant awarded under this paragraph.
                  ``(D) Eligible participants.--To be eligible to 
                participate in activities under this paragraph, an 
                individual shall be a low-income individual between the 
                ages of 16 and 74 or a member of a low-income family.
                  ``(E) Use of funds.--An eligible entity receiving a 
                grant under this paragraph shall use such funds for 
                activities that are designed to assist eligible 
                participants in obtaining employment and acquiring the 
                education and skills necessary to succeed in the labor 
                market.
                  ``(F) Applications.--To be eligible to receive a 
                grant under this paragraph, an eligible entity shall 
                submit an application to a State at such time, in such 
                manner, and containing such information as the State 
                may require, including--
                          ``(i) a description of how the strategies and 
                        activities will be aligned with the State plan 
                        submitted under section 112 and the local plans 
                        submitted under section 118 with respect to the 
                        areas of the State that will be the focus of 
                        grant activities under this paragraph;
                          ``(ii) a description of the educational and 
                        skills training programs and activities the 
                        eligible entities will provide to eligible 
                        participants under this paragraph;
                          ``(iii) how the eligible entity will 
                        collaborate with State and local workforce 
                        investment systems established under this title 
                        in the provision of such programs and 
                        activities;
                          ``(iv) a description of the programs of 
                        demonstrated effectiveness on which the 
                        provision of such educational and skills 
                        training programs and activities are based, and 
                        a description of how such programs and 
                        activities will improve the education and 
                        skills training for eligible participants;
                          ``(v) a description of the populations to be 
                        served and the skill needs of those 
                        populations, and the manner in which eligible 
                        participants will be recruited and selected as 
                        participants;
                          ``(vi) a description of the private, public, 
                        local, and State resources that will be 
                        leveraged, in addition to the grant funds 
                        provided for the programs and activities under 
                        this paragraph, and how the entity will ensure 
                        the sustainability of such programs and 
                        activities after grant funds are no longer 
                        available;
                          ``(vii) a description of the extent of the 
                        involvement of employers in such programs and 
                        activities;
                          ``(viii) a description of the levels of 
                        performance the eligible entity expects to 
                        achieve with respect to the indicators of 
                        performance for all individuals specified in 
                        section in 136(b)(2);
                          ``(ix) a detailed budget and a description of 
                        the system of fiscal controls, and auditing and 
                        accountability procedures that will be used to 
                        ensure fiscal soundness for the programs and 
                        activities provided under this paragraph;
                          ``(x) the information described in clauses 
                        (i) through (vii) of subparagraph (G); and
                          ``(xi) any other criteria the Governor may 
                        require.
                  ``(G) Performance outcomes and criteria.--Not later 
                than 6 months after the date of the enactment of the 
                Workforce Investment Improvement Act of 2012, the 
                Governor of the State shall establish and publish 
                specific performance measures for the initial 
                qualification of eligible entities to receive a grant 
                under this section. At a minimum, the Governor shall 
                require each eligible entity to--
                          ``(i) identify a particular program area and 
                        client population that is not achieving optimal 
                        outcomes;
                          ``(ii) provide evidence that the proposed 
                        strategy would achieve better results;
                          ``(iii) clearly articulate and quantify the 
                        improved outcomes of such new approach;
                          ``(iv) identify data that would be required 
                        to evaluate whether outcomes are being achieved 
                        for a target population and a comparison group;
                          ``(v) identify estimated savings that would 
                        result from the improved outcomes, including to 
                        other programs or units of government;
                          ``(vi) demonstrate the capacity to collect 
                        required data, track outcomes, and validate 
                        those outcomes; and
                          ``(vii) any other criteria the Governor may 
                        require.
          ``(6) Limitation.--Not more than 5 percent of the funds 
        allotted under section 132(b) to a State and reserved as 
        described in section 133(a)(1) may be used by the State for 
        administrative costs carried out under this subsection.'';
          (2) by amending subsection (b) to read as follows:
  ``(b) Local Employment and Training Activities.--Funds allocated to a 
local area under section 133(b)(2)--
          ``(1) shall be used to carry out employment and training 
        activities described in subsection (c); and
          ``(2) may be used to carry out employment and training 
        activities described in subsection (d).''.
          (3) by striking subsection (c);
          (4) by redesignating subsections (d) and (e), as subsections 
        (c) and (d), respectively;
          (5) in subsection (c) (as so redesignated)--
                  (A) by amending paragraph (1) to read as follows:
          ``(1) In general.--Funds allocated to a local area under 
        section 133(b)(2) shall be used--
                  ``(A) to establish a one-stop delivery system as 
                described in section 121(e);
                  ``(B) to provide the work ready services described in 
                paragraph (2) through the one-stop delivery system in 
                accordance with such paragraph; and
                  ``(C) to provide training services described in 
                paragraph (4) in accordance with such paragraph.'';
                  (B) in paragraph (2)--
                          (i) in the heading, by striking ``Core 
                        services'' and inserting ``Work ready 
                        services'';
                          (ii) by striking ``core services'' and 
                        inserting ``work ready services'';
                          (iii) by striking ``who are adults or 
                        dislocated workers'';
                          (iv) in subparagraph (A), by inserting ``and 
                        assistance in obtaining eligibility 
                        determinations under the other one-stop partner 
                        programs through such activities as assisting 
                        in the submission of applications, the 
                        provision of information on the results of such 
                        applications, the provision of intake services 
                        and information, and, where appropriate and 
                        consistent with the authorizing statute of the 
                        one-stop partner program, determinations of 
                        eligibility'' after ``subtitle'';
                          (v) by amending subparagraph (D) to read as 
                        follows:
                  ``(D) labor exchange services, including--
                          ``(i) job search and placement assistance, 
                        and where appropriate, career counseling;
                          ``(ii) appropriate recruitment services for 
                        employers, including small employers, in the 
                        local area, which may include services 
                        described in this subsection, including 
                        information and referral to specialized 
                        business services not traditionally offered 
                        through the one-stop delivery system; and
                          ``(iii) reemployment services provided to 
                        unemployment claimants, including claimants 
                        identified as in need of such services under 
                        the worker profiling system established under 
                        section 303(j) of the Social Security Act (42 
                        U.S.C. 503(j));'';
                          (vi) in subparagraph (E), by striking 
                        ``employment statistics'' and inserting 
                        ``workforce and labor market'';
                          (vii) in subparagraph (F), by striking ``and 
                        eligible providers of youth activities 
                        described in section 123,'';
                          (viii) in subparagraph (I), by inserting 
                        ``and the administration of the work test for 
                        the unemployment compensation system'' after 
                        ``compensation'';
                          (ix) by amending subparagraph (J) to read as 
                        follows:
                  ``(J) assistance in establishing eligibility for 
                programs of financial aid assistance for training and 
                education programs that are not funded under this Act 
                and are available in the local area;''; and
                          (x) by redesignating subparagraph (K) as 
                        subparagraph (U); and
                          (xi) by inserting the following new 
                        subparagraphs after subparagraph (J):
                  ``(K) the provision of information from official 
                publications of the Internal Revenue Service regarding 
                Federal tax credits available to individuals relating 
                to education, job training and employment;
                  ``(L) comprehensive and specialized assessments of 
                the skill levels and service needs of workers, which 
                may include--
                          ``(i) diagnostic testing and use of other 
                        assessment tools; and
                          ``(ii) in-depth interviewing and evaluation 
                        to identify employment barriers and appropriate 
                        employment goals;
                  ``(M) development of an individual employment plan, 
                to identify the employment goals, appropriate 
                achievement objectives, and appropriate combination of 
                services for the participation to achieve the 
                employment goals;
                  ``(N) group counseling;
                  ``(O) individual counseling and career planning;
                  ``(P) case management;
                  ``(Q) short-term pre-career services, including 
                development of learning skills, communications skills, 
                interviewing skills, punctuality, personal maintenance 
                skills, and professional conduct, to prepare 
                individuals for unsubsidized employment or training;
                  ``(R) internships and work experience;
                  ``(S) literacy activities relating to basic work 
                readiness, information and communication technology 
                literacy activities, and financial literacy activities, 
                if such activities are not available to participants in 
                the local area under programs administered under the 
                Adult Education and Family Literacy Act (20 U.S.C. 2901 
                et seq.);
                  ``(T) out-of-area job search assistance and 
                relocation assistance; and''; and
                  (C) by amending paragraph (3) to read as follows:
          ``(3) Delivery of services.--The work ready services 
        described in paragraph (2) shall be provided through the one-
        stop delivery system and may be provided through contracts with 
        public, private for-profit, and private nonprofit service 
        providers, approved by the local board.'';
                  (D) in paragraph (4)--
                          (i) by amending subparagraph (A) to read as 
                        follows:
                  ``(A) In general.--Funds allocated to a local area 
                under section 133(b) shall be used to provide training 
                services to individuals who--
                          ``(i) after an interview, evaluation, or 
                        assessment, and case management, have been 
                        determined by a one-stop operator or one-stop 
                        partner, as appropriate, to--
                                  ``(I) be in need of training services 
                                to obtain or retain employment; and
                                  ``(II) have the skills and 
                                qualifications to successfully 
                                participate in the selected program of 
                                training services;
                          ``(ii) select programs of training services 
                        that are directly linked to the employment 
                        opportunities in the local area involved or in 
                        another area in which the individual receiving 
                        such services are willing to commute or 
                        relocate; and
                          ``(iii) who meet the requirements of 
                        subparagraph (B);''; and
                          (ii) in subparagraph (B)(i), by striking 
                        ``Except'' and inserting ``Notwithstanding 
                        section 479B of the Higher Education Act of 
                        1965 (20 U.S.C. 1087uu) and except'';
                          (iii) by amending subparagraph (D) to read as 
                        follows:
                  ``(D) Training services.--Training services 
                authorized under this paragraph may include--
                          ``(i) occupational skills training;
                          ``(ii) on-the-job training;
                          ``(iii) skill upgrading and retraining;
                          ``(iv) entrepreneurial training;
                          ``(v) education activities leading to a 
                        regular secondary school diploma or its 
                        recognized equivalent in combination with, 
                        concurrently or subsequently, occupational 
                        skills training;
                          ``(vi) adult education and literacy 
                        activities provided in conjunction with other 
                        training authorized under this subparagraph;
                          ``(vii) workplace training combined with 
                        related instruction; and
                          ``(viii) occupational skills training that 
                        incorporates English language acquisition.'';
                          (iv) by striking subparagraph (E) and 
                        redesignating subparagraphs (F) and (G) as 
                        subparagraphs (E) and (F), respectively; and
                          (v) in subparagraph (E) (as so 
                        redesignated)--
                                  (I) in clause (ii)--
                                          (aa) in the matter preceding 
                                        subclause (I), by striking 
                                        ``subsection (c)'' and 
                                        inserting ``section 121''; and
                                          (bb) in subclause (II), by 
                                        striking ``subsections (e) and 
                                        (h)'' and inserting 
                                        ``subsection (i)''; and
                                  (II) by striking clause (iii) and 
                                inserting the following:
                          ``(iii) Career enhancement accounts.--An 
                        individual who seeks training services and who 
                        is eligible pursuant to subparagraph (A), may, 
                        in consultation with a case manager, select an 
                        eligible provider of training services from the 
                        list or identifying information for providers 
                        described in clause (ii)(I). Upon such 
                        selection, the one-stop operator involved 
                        shall, to the extent practicable, refer such 
                        individual to the eligible provider of training 
                        services, and arrange for payment for such 
                        services through a career enhancement account.
                          ``(iv) Coordination.--Each local board may, 
                        through one-stop centers, coordinate career 
                        enhancement accounts with other Federal, State, 
                        local, or private job training programs or 
                        sources to assist the individual in obtaining 
                        training services.
                          ``(v) Enhanced career enhancement accounts.--
                        Each local board may, through one-stop centers, 
                        assist individuals receiving career enhancement 
                        accounts through the establishment of such 
                        accounts that include, in addition to the funds 
                        provided under this paragraph, funds from other 
                        programs and sources that will assist the 
                        individual in obtaining training services.''; 
                        and
                          (vi) in subparagraph (F) (as so 
                        redesignated)--
                                  (I) in the subparagraph heading, by 
                                striking ``individual training 
                                accounts'' and inserting ``career 
                                enhancement accounts'';
                                  (II) in clause (i) by striking 
                                ``individual training accounts'' and 
                                inserting ``career enhancement 
                                accounts'';
                                  (III) in clause (ii)--
                                          (aa) by striking ``an 
                                        individual training account'' 
                                        and inserting ``a career 
                                        enhancement account'';
                                          (bb) in subclause (II), by 
                                        striking ``individual training 
                                        accounts'' and inserting 
                                        ``career enhancement 
                                        accounts'';
                                          (cc) in subclause (II) by 
                                        striking ``or'' after the 
                                        semicolon;
                                          (dd) in subclause (III) by 
                                        striking the period and 
                                        inserting ``; or''; and
                                          (ee) by adding at the end of 
                                        the following:
                                  ``(IV) the local board determines 
                                that it would be most appropriate to 
                                award a contract to an institution of 
                                higher education in order to facilitate 
                                the training of multiple individuals in 
                                in-demand sectors or occupations, if 
                                such contract does not limit customer 
                                choice.'';
                                  (IV) in clause (iii), by striking 
                                ``adult or dislocated worker'' and 
                                inserting ``individual''; and
                                  (V) in clause (iv)--
                                          (aa) by redesignating 
                                        subclause (IV) as subclause (V) 
                                        and inserting after subclause 
                                        (III) the following:
                                  ``(IV) Individuals with 
                                disabilities.'';
          (6) in subsection (d) (as so redesignated)--
                  (A) by amending paragraph (1) to read as follows:
          ``(1) Discretionary one-stop delivery activities.--
                  ``(A) In general.--Funds allocated to a local area 
                under section 133(b) may be used to provide, through 
                the one-stop delivery system--
                          ``(i) customized screening and referral of 
                        qualified participants in training services to 
                        employers;
                          ``(ii) customized employment-related services 
                        to employers on a fee-for-service basis;
                          ``(iii) customer supports, including 
                        transportation and childcare, to navigate among 
                        multiple services and activities for special 
                        participant populations that face multiple 
                        barriers to employment, including individuals 
                        with disabilities;
                          ``(iv) employment and training assistance 
                        provided in coordination with child support 
                        enforcement activities of the State agency 
                        carrying out subtitle D of title IV of the 
                        Social Security Act (42 U.S.C. 651 et seq.);
                          ``(v) incorporating pay-for-performance 
                        contracting strategies as an element in funding 
                        activities under this section;
                          ``(vi) activities to facilitate remote access 
                        to services provided through a one-stop 
                        delivery system, including facilitating access 
                        through the use of technology; and
                          ``(vii) activities to carry out business 
                        services and strategies that meet the workforce 
                        investment needs of local area employers, as 
                        determined by the local board, consistent with 
                        the local plan under section 118.''.
                  (B) by striking paragraphs (2) and (3); and
                  (C) by adding at the end the following:
          ``(2) Incumbent worker training programs.--
                  ``(A) In general.--The local board may use funds 
                allocated to a local area under section 133(b)(2) to 
                carry out incumbent worker training programs in 
                accordance with this paragraph.
                  ``(B) Training activities.--The training programs for 
                incumbent workers under this paragraph shall be carried 
                out by the local area in conjunction with the employers 
                of such workers for the purpose of assisting such 
                workers in obtaining the skills necessary to retain 
                employment and avert layoffs.
                  ``(C) Employer match required.--
                          ``(i) In general.--Employers participating in 
                        programs under this paragraph shall be required 
                        to pay a proportion of the costs of providing 
                        the training to the incumbent workers of the 
                        employers. The State board, in consultation 
                        with the local board as appropriate, shall 
                        establish the required portion of such costs, 
                        which may include in-kind contributions. The 
                        required portion shall not be less than 50 
                        percent of the costs.
                          ``(ii) Calculation of match.--The wages paid 
                        by an employer to a worker while they are 
                        attending training may be included as part of 
                        the required payment of the employer.''; and
          (7) by adding at the end the following:
  ``(e) Priority for Placement in Private Sector Jobs.--In providing 
employment and training activities authorized under this section, the 
State and local board shall give priority to placing participants in 
jobs in the private sector.
  ``(f) Veteran Employment Specialist.--
          ``(1) In general.--A local area shall hire and employ one or 
        more veteran employment specialist to carry out employment, 
        training, and placement services under this subsection.
          ``(2) Principal duties.--A veteran employment specialist in a 
        local area shall--
                  ``(A) conduct outreach to employers in the local area 
                to assist veterans, including disabled veterans, in 
                gaining employment, including--
                          ``(i) conducting seminars for employers; and
                          ``(ii) in conjunction with employers, 
                        conducting job search workshops, and 
                        establishing job search groups; and
                  ``(B) facilitate employment, training, supportive, 
                and placement services furnished to veterans, including 
                disabled and homeless veterans, in the local area.
          ``(3) Hiring preference for veterans and individuals with 
        expertise in serving veterans.--A local area shall, to the 
        maximum extent practicable, employ veterans or individuals with 
        expertise in serving veterans to carry out the services 
        described in paragraph (2). In hiring an individual to serve as 
        a veteran employment specialist, a local board shall give 
        preference to veterans and other individuals in the following 
        order:
                  ``(A) To qualified service-connected disabled 
                veterans.
                  ``(B) If no veteran described in subparagraph (A) is 
                available, to qualified eligible veterans.
                  ``(C) If no veteran described in subparagraph (A) or 
                (B) is available, to any other individuals with 
                expertise in serving veterans.
          ``(4) Reporting.--
                  ``(A) In general.--Each veteran employment specialist 
                shall be administratively responsible to the manager of 
                the one-stop delivery center in the local area and 
                shall provide reports, not less frequently than 
                quarterly, to the manager of such center and to the 
                Director for Veterans' Employment and Training for the 
                State on compliance by the representative with Federal 
                law and regulations with respect to the special 
                services and hiring preferences described in paragraph 
                (3) for veterans and individuals with expertise in 
                serving veterans.
                  ``(B) Report to secretary.--Each State shall submit 
                to the Secretary an annual report on the qualifications 
                used by the local area in making hiring determinations 
                for a veteran employment specialist and the salary 
                structure under which such specialists are compensated.
                  ``(C) Report to congress.--The Secretary shall submit 
                to the Committee on Education and the Workforce of the 
                House of Representatives and the Committee on Health, 
                Education, Labor, and Pensions of the Senate an annual 
                report summarizing the reports submitted under 
                subparagraph (B), including summaries of outcomes 
                achieved by participating veterans disaggregated by 
                local communities.
          ``(5) Part-time employees.--A part-time veteran employment 
        specialist shall perform the functions of a veteran employment 
        specialist under this subsection on a halftime basis.
          ``(6) Training requirements.--Each veteran employment 
        specialist described in paragraph (1) shall satisfactorily 
        complete training provided by the National Veterans' Employment 
        and Training Institute during the three-year period that begins 
        on the date on which the employee is so assigned.
          ``(7) Specialist's duties.--A full-time veteran employment 
        specialist shall perform only duties related to the employment, 
        training, supportive, and placement services under this 
        subtitle, and shall not perform other non-veteran-related 
        duties if such duties detract from the specialist's ability to 
        perform the specialist's duties related to employment, 
        training, and placement services under this subtitle.''.

SEC. 114. PERFORMANCE ACCOUNTABILITY SYSTEM.

  Section 136 (29 U.S.C. 2871) is amended--
          (1) in subsection (b)--
                  (A) by amending paragraphs (1) and (2) to read as 
                follows:
          ``(1) In general.--For each State, the State performance 
        measures shall consist of--
                  ``(A)(i) the core indicators of performance described 
                in paragraph (2)(A); and
                  ``(ii) additional indicators of performance (if any) 
                identified by the State under paragraph (2)(B); and
                  ``(B) a State adjusted level of performance for each 
                indicator described in subparagraph (A).
          ``(2) Indicators of performance.--
                  ``(A) Core indicators of performance.--
                          ``(i) In general.--The core indicators of 
                        performance for the program of employment and 
                        training activities authorized under sections 
                        132(a)(2), 134, and 175, the program of adult 
                        education and literacy activities authorized 
                        under title II, and the program authorized 
                        under title I of the Rehabilitation Act of 1973 
                        (29 U.S.C. 720 et seq.), other than section 112 
                        or part C of that title (29 U.S.C. 732, 741), 
                        shall consist of the following indicators of 
                        performance, each disaggregated by the 
                        populations identified in the State and local 
                        plans:
                                  ``(I) the percentage and number of 
                                program participants who are in 
                                unsubsidized employment during the 
                                second full calendar quarter after exit 
                                from the program;
                                  ``(II) the percentage and number of 
                                program participants who are in 
                                unsubsidized employment during the 
                                fourth full calendar quarter after exit 
                                from the program;
                                  ``(III) the median earnings of 
                                program participants who are in 
                                unsubsidized employment during the 
                                second full calendar quarter after exit 
                                from the program compared to the median 
                                earnings of such participants prior to 
                                the training received under such 
                                program;
                                  ``(IV) the percentage and number of 
                                program participants who obtain a 
                                recognized postsecondary credential, 
                                including a registered apprenticeship, 
                                an industry-recognized credential, or a 
                                regular secondary school diploma or its 
                                recognized equivalent (subject to 
                                clause (iii)), during participation in 
                                or within 1 year after exit from 
                                program;
                                  ``(V) the percentage and number of 
                                program participants who, during a 
                                program year--
                                          ``(aa) are in an education or 
                                        training program that leads to 
                                        a recognized postsecondary 
                                        credential, including a 
                                        registered apprenticeship or 
                                        on-the-job training program, an 
                                        industry-recognized credential, 
                                        a regular secondary school 
                                        diploma or its recognized 
                                        equivalent, or unsubsidized 
                                        employment; and
                                          ``(bb) are achieving 
                                        measurable basic skill gains 
                                        toward such a credential or 
                                        employment; and
                                  ``(VI) the percentage and number of 
                                program participants who obtain 
                                unsubsidized employment in the field 
                                relating to the training services 
                                described in section 134(c)(4) that 
                                such participants received.
                          ``(ii) Indicator relating to credential.--For 
                        purposes of clause (i)(IV), program 
                        participants who obtain a regular secondary 
                        school diploma or its recognized equivalent 
                        shall be included in the percentage counted as 
                        meeting the criterion under such clause only if 
                        such participants, in addition to obtaining 
                        such diploma or its recognized equivalent, 
                        have, within 1 year after exit from the 
                        program, obtained or retained employment, have 
                        been removed from public assistance, or are in 
                        an education or training program leading to a 
                        recognized postsecondary credential described 
                        in clause (i)(IV).
                  ``(B) Additional indicators.--A State may identify in 
                the State plan additional indicators for workforce 
                investment activities authorized under this 
                subtitle.''; and
                  (B) in paragraph (3)--
                          (i) in subparagraph (A)--
                                  (I) in the heading, by striking ``and 
                                customer satisfaction indicator'';
                                  (II) in clause (i), by striking ``and 
                                the customer satisfaction indicator 
                                described in paragraph (2)(B)'';
                                  (III) in clause (ii), by striking 
                                ``and the customer satisfaction 
                                indicator of performance, for the first 
                                3'' and inserting ``, for the first 
                                2'';
                                  (IV) in clause (iii)--
                                          (aa) in the heading, by 
                                        striking ``3 years'' and 
                                        inserting ``2 years''; and
                                          (bb) by striking ``and the 
                                        customer satisfaction indicator 
                                        of performance, for the first 3 
                                        program years'' and inserting 
                                        ``for the first 2 program 
                                        years'';
                                  (V) in clause (iv)--
                                          (aa) by striking subclause 
                                        (I) and redesignating 
                                        subclauses (II) and (III) as 
                                        subclauses (I) and (II), 
                                        respectively; and
                                          (bb) in subclause (I) (as so 
                                        redesignated)--
                                                  (AA) by striking 
                                                ``taking into account'' 
                                                and inserting ``which 
                                                shall be adjusted based 
                                                on'';
                                                  (BB) by inserting ``, 
                                                such as unemployment 
                                                rates and job losses or 
                                                gains in particular 
                                                industries'' after 
                                                ``economic 
                                                conditions''; and
                                                  (CC) by inserting ``, 
                                                such as indicators of 
                                                poor work experience, 
                                                dislocation from high-
                                                wage employment, low 
                                                levels of literacy or 
                                                English proficiency, 
                                                disability status, 
                                                including the number of 
                                                veterans with 
                                                disabilities, and 
                                                welfare dependency'' 
                                                after ``program'';
                                  (VI) by striking clause (v) and 
                                redesignating clause (vi) as clause 
                                (v); and
                                  (VII) in clause (v) (as so 
                                redesignated),
                                          (aa) by striking ``described 
                                        in clause (iv)(II)'' and 
                                        inserting ``described in clause 
                                        (iv)(I)''; and
                                          (bb) by striking ``or (v)''; 
                                        and
                          (ii) in subparagraph (B), by striking 
                        ``paragraph (2)(C)'' and inserting ``paragraph 
                        (2)(B)'';
          (2) in subsection (c)(1)(A)--
                  (A) by amending clause (i) to read as follows: ``(i) 
                the core indicators of performance described in 
                subsection (b)(2)(A) for activities described in such 
                subsections, other than statewide workforce investment 
                activities; and'';
                  (B) in clause (ii), by striking ``(b)(2)(C)'' and 
                inserting ``(b)(2)(B)''; and
                  (C) by amending paragraph (3) to read as follows:
          ``(3) Determinations.--In determining such local levels of 
        performance, the local board, the chief elected official, and 
        the Governor shall ensure such levels are adjusted based on the 
        specific economic characteristics (such as unemployment rates 
        and job losses or gains in particular industries), demographic 
        characteristics, or other characteristics of the population to 
        be served in the local area, such as poor work history, lack of 
        work experience, dislocation from high-wage employment, low 
        levels of literacy or English proficiency, disability status, 
        including the number of veterans with disabilities, and welfare 
        dependency.'';
          (3) in subsection (d)--
                  (A) in paragraph (1)--
                          (i) by striking ``127 or'';
                          (ii) by inserting ``maintain a central 
                        repository of policies related to access, 
                        eligibility, availability of services, and 
                        other matters approved by the State board and 
                        plans and such policies approved by each local 
                        board and make such repository available to the 
                        public, including by electronic means and 
                        shall'' after ``132 shall''; and
                          (iii) by striking ``and the customer 
                        satisfaction indicator'' each place it appears;
                  (B) in paragraph (2)--
                          (i) in subparagraph (A), by striking 
                        ``section 134(d)(4)'' and inserting ``section 
                        134(c)(4)'';
                          (ii) in subparagraph (E), by striking 
                        ``(excluding participants who received only 
                        self-service and informational activities);'' 
                        and inserting a semicolon;
                          (iii) by striking ``and'' at the end of 
                        subparagraph (E);
                          (iv) by striking the period at the end of 
                        subparagraph (F) and inserting a semicolon;
                          (v) by adding at the end, the following:
                  ``(G) with respect to each local area in the State--
                          ``(i) the number of individuals who received 
                        work ready services described under section 
                        134(c)(2) and the number of individuals who 
                        received training services described under 
                        section 134(c)(4) during the most recent 
                        program year and fiscal year, and the preceding 
                        5 program years, where the individuals received 
                        the training, disaggregated by the type of 
                        entity that provided the training, and the 
                        amount of funds spent on each type of service;
                          ``(ii) the number of individuals who 
                        successfully exited out of work ready services 
                        described under section 134(c)(2) and the 
                        number of individuals who exited out of 
                        training services described under section 
                        134(c)(4) during the most recent program year 
                        and fiscal year, and the preceding 5 program 
                        years, and where the individuals received the 
                        training, disaggregated by the type of entity 
                        that provided the training; and
                          ``(iii) the average cost per participant of 
                        those individuals who received work ready 
                        services described under section 134(c)(2) and 
                        the average cost per participant of those 
                        individuals who received training services 
                        described under section 134(c)(4) during the 
                        most recent program year and fiscal year, and 
                        the preceding 5 program years, and where the 
                        individuals received the training, 
                        disaggregated by the type of entity that 
                        provided the training; and
                  ``(H) the amount of funds spent on training services 
                and discretionary one-stop delivery activities, 
                disaggregated by the populations identified in the 
                State and local plans.'';
                  (C) in paragraph (3)(A), by striking ``through 
                publication'' and inserting ``through electronic 
                means''; and
                  (D) by adding at the end the following:
          ``(4) Data validation.--In preparing the reports described in 
        this subsection, each State shall establish procedures, 
        consistent with guidelines issued by the Secretary, to ensure 
        the information contained in the report is valid and 
        reliable.'';
          (4) in subsection (g)--
                  (A) in paragraph (1)(A), by striking ``or (B)'';
                  (B) in paragraph (1)(B), by striking ``may reduce by 
                not more than 5 percent,'' and inserting ``shall 
                reduce''; and
                  (C) by striking paragraph (2) and inserting the 
                following:
          ``(2) Funds resulting from reduced allotments.--The Secretary 
        shall return to the Treasury the amount retained, as a result 
        of a reduction in an allotment to a State made under paragraph 
        (1)(B).'';
          (5) in subsection (h)(1), by striking ``or (B)'';
          (6) in subsection (h)(2)--
                  (A) in subparagraph (A), by amending the matter 
                preceding clause (i) to read as follows:
                  ``(A) In general.--If such failure continues for a 
                second consecutive year, the Governor shall take 
                corrective actions, including the development of a 
                reorganization plan. Such plan shall--'';
                  (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (C) and (D), respectively;
                  (C) by inserting after subparagraph (A), the 
                following:
                  ``(B) Reduction in the amount of grant.--If such 
                failure continues for a third consecutive year, the 
                Governor of a State shall reduce the amount of the 
                grant that would (in the absence of this subparagraph) 
                be payable to the local area under such program for the 
                program year after such third consecutive year. Such 
                penalty shall be based on the degree of failure to meet 
                local levels of performance.'';
                  (D) in subparagraph (C)(i) (as so redesignated), by 
                striking ``a reorganization plan under subparagraph (A) 
                may, not later than 30 days after receiving notice of 
                the reorganization plan, appeal to the Governor to 
                rescind or revise such plan'' and inserting 
                ``corrective actions under subparagraphs (A) and (B) 
                may, not later than 30 days after receiving notice of 
                the actions, appeal to the Governor to rescind or 
                revise such actions''; and
                  (E) in subparagraph (D) (as so redesignated), by 
                striking ``subparagraph (B)'' each place it appears and 
                inserting ``subparagraph (C)'';
          (7) in subsection (i)(1)(C), by striking ``(b)(3)(A)(vi)'' 
        and inserting ``(b)(3)(A)(v)'';
          (8) in subsection (i)(1)(B), by striking ``subsection 
        (b)(2)(C)'' and inserting ``subsection (b)(2)(B)''; and
          (9) by adding at the end the following subsection:
  ``(j) Use of Core Indicators for Other Programs.--In addition to the 
programs carried out under chapter 5, and consistent with the 
requirements of the applicable authorizing laws, the Secretary shall 
use the core indicators of performance described in subsection 
(b)(2)(A) to assess the effectiveness of the programs described under 
section 121(b)(1)(B) that are carried out by the Secretary.''.

SEC. 115. AUTHORIZATION OF APPROPRIATIONS.

  Section 137 (29 U.S.C. 2872) is amended to read as follows:

``SEC. 137. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out the activities 
described in section 132, $6,292,486,000 for fiscal year 2013 and each 
of the 5 succeeding fiscal years.''.

                         Subtitle C--Job Corps

SEC. 116. JOB CORPS PURPOSES.

  Paragraph (1) of section 141 (29 U.S.C. 2881(1)) is amended to read 
as follows:
          ``(1) to maintain a national Job Corps program for at-risk 
        youth, carried out in partnership with States and communities, 
        to assist eligible youth to connect to the workforce by 
        providing them with intensive academic, career and technical 
        education, and service-learning opportunities, in residential 
        and nonresidential centers, in order for such youth to obtain 
        regular secondary school diplomas, industry-recognized 
        credentials, or recognized postsecondary credentials leading to 
        successful careers in in-demand industries that will result in 
        opportunities for advancement;''.

SEC. 117. JOB CORPS DEFINITIONS.

  Section 142 (29 U.S.C. 2882) is amended--
          (1) in paragraph (2)--
                  (A) in the paragraph heading, by striking 
                ``Applicable'';
                  (B) by striking ``applicable'';
                  (B) by striking ``customer service''; and
                  (D) by striking ``intake'' and inserting 
                ``assessment'';
          (2) in paragraph (4), by striking ``before completing the 
        requirements'' and all that follows and inserting ``prior to 
        becoming a graduate.''; and
          (3) in paragraph (5), by striking ``has completed the 
        requirements'' and all that follows and inserting the 
        following: ``who, as a result of participation in the Job Corps 
        program, has received a regular secondary school diploma, 
        completed the requirements of a career and technical education 
        and training program, or received, or is making satisfactory 
        progress (as defined under section 484(c) of the Higher 
        Education Act of 1965 (20 U.S.C. 1091(c)) toward receiving, a 
        recognized postsecondary credential, including an industry-
        recognized credential that prepares individuals for employment 
        leading to economic self-sufficiency.''.

SEC. 118. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

  Section 144 (29 U.S.C. 2884) is amended--
          (1) by amending paragraph (1) to read as follows:
          ``(1) not less than age 16 and not more than age 24 on the 
        date of enrollment;'';
          (2) in paragraph (3)(B), by inserting ``secondary'' before 
        ``school''; and
          (3) in paragraph (3)(E), by striking ``vocational'' and 
        inserting ``career and technical education and''.

SEC. 119. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT OF 
                    ENROLLEES.

  Section 145 (29 U.S.C. 2885) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (2)(C)(i) by striking ``vocational'' 
                and inserting ``career and technical education and 
                training'';
                  (B) in paragraph (3)--
                          (i) by striking ``To the extent practicable, 
                        the'' and inserting ``The'';
                          (ii) in subparagraph (A)--
                                  (I) by striking ``applicable''; and
                                  (II) by inserting ``and'' after the 
                                semicolon;
                          (iii) by striking subparagraphs (B) and (C); 
                        and
                          (iv) by adding at the end the following:
                  ``(B) organizations that have a demonstrated record 
                of effectiveness in placing at-risk youth into 
                employment.''; and
                  (C) in paragraph (5), by inserting at the end the 
                following: ``The Secretary shall allot not more than 
                \1/2\ of 1 percent of the budget of the Job Corps 
                program for the purpose of this paragraph.'';
          (2) in subsection (b)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (B), by inserting ``and 
                        agrees to such rules'' after ``failure to 
                        observe the rules''; and
                          (ii) by amending subparagraph (C) to read as 
                        follows:
                  ``(C) the individual has passed a background check 
                conducted in accordance with procedures established by 
                the Secretary, which shall include--
                          ``(i) a search of the State criminal registry 
                        or repository in the State where the individual 
                        resides and each State where the individual 
                        previously resided;
                          ``(ii) a search of State-based child abuse 
                        and neglect registries and databases in the 
                        State where the individual resides and each 
                        State where the individual previously resided;
                          ``(iii) a search of the National Crime 
                        Information Center;
                          ``(iv) a Federal Bureau of Investigation 
                        fingerprint check using the Integrated 
                        Automated Fingerprint Identification System; 
                        and
                          ``(v) a search of the National Sex Offender 
                        Registry established under the Adam Walsh Child 
                        Protection and Safety Act of 2006 (42 U.S.C. 
                        16901 et seq.).''; and
                  (B) by adding at the end the following new paragraph:
          ``(3) Individuals convicted of a crime.--An individual shall 
        be ineligible for enrollment if the individual--
                  ``(A) makes a false statement in connection with the 
                criminal background check described in paragraph 
                (1)(C);
                  ``(B) is registered or is required to be registered 
                on a State sex offender registry or the National Sex 
                Offender Registry established under the Adam Walsh 
                Child Protection and Safety Act of 2006 (42 U.S.C. 
                16901 et seq.); or
                  ``(C) has been convicted of a felony consisting of--
                          ``(i) homicide;
                          ``(ii) child abuse or neglect;
                          ``(iii) a crime against children, including 
                        child pornography;
                          ``(iv) a crime involving rape or sexual 
                        assault; or
                          ``(v) physical assault, battery, or a drug-
                        related offense, committed within the past 5 
                        years.''.
          (3) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) by striking ``2 years'' and inserting 
                        ``year''; and
                          (ii) by striking ``an assignment'' and 
                        inserting ``a'';
                  (B) in paragraph (2)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``, every 2 years,'';
                          (ii) in subparagraph (B), by striking ``and'' 
                        at the end; and
                          (iii) in subparagraph (C)--
                                  (I) by inserting ``the education and 
                                training'' after ``including''; and
                                  (II) by striking the period at the 
                                end and inserting ``; and''; and
                  (C) by adding at the end the following:
                  ``(D) the performance of the Job Corps center 
                relating to the indicators described in paragraphs (1) 
                and (2) in section 159(c)(1), and whether any actions 
                have been taken with respect to such center pursuant to 
                paragraph (3) of section 159(f).'';
          (4) in subsection (d)--
                  (A) in paragraph (1)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``is closest to the home of the 
                        enrollee, except that the'' and inserting 
                        ``offers the type of career and technical 
                        education and training selected by the 
                        individual and, among the centers that offer 
                        such education and training, is closest to the 
                        home of the individual. The'';
                          (ii) by striking subparagraph (A); and
                          (iii) by redesignating subparagraphs (B) and 
                        (C) as subparagraphs (A) and (B), respectively; 
                        and
                  (B) in paragraph (2), by inserting ``that offers the 
                career and technical education and training desired 
                by'' after ``home of the enrollee''.

SEC. 120. JOB CORPS CENTERS.

  Section 147 (29 U.S.C. 2887) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (A), by striking 
                        ``vocational'' both places it appears and 
                        inserting ``career and technical''; and
                          (ii) in subparagraph (B)--
                                  (I) by striking ``may'' and inserting 
                                ``shall'';
                                  (II) by inserting ``that resides in 
                                the State in which the Jobs Corps 
                                center is located'' before ``to 
                                provide''; and
                                  (III) by inserting before the period 
                                at the end the following: ``, as 
                                appropriate'';
                  (B) in paragraph (2)--
                          (i) in subparagraph (A)--
                                  (I) by striking ``subsections (c) and 
                                (d) of section 303 of the Federal 
                                Property and Administrative Services 
                                Act of 1949 (41 U.S.C. 253)'' and 
                                inserting ``subsections (a) and (b) of 
                                section 3304 of title 41, United States 
                                Code''; and
                                  (II) by striking ``industry council'' 
                                and inserting ``workforce council'';
                          (ii) in subparagraph (B)(i)--
                                  (I) by amending subclause (II) to 
                                read as follows:
                                  ``(II) the ability of the entity to 
                                offer career and technical education 
                                and training that the workforce council 
                                proposes under section 154(c);'';
                                  (II) in subclause (III), by striking 
                                ``is familiar with the surrounding 
                                communities,'' and inserting 
                                ``demonstrates relationships with the 
                                surrounding communities, employers, 
                                workforce boards,'' and by striking 
                                ``and'' at the end;
                                  (III) by amending subclause (IV) to 
                                read as follows:
                                  ``(IV) the performance of the entity, 
                                if any, relating to operating or 
                                providing activities described in this 
                                subtitle to a Job Corps center, 
                                including the entity's demonstrated 
                                effectiveness in assisting individuals 
                                in achieving the primary and secondary 
                                indicators of performance described in 
                                paragraphs (1) and (2) of section 
                                159(c); and''; and
                                  (IV) by adding at the end the 
                                following new subclause:
                                  ``(V) the ability of the entity to 
                                demonstrate a record of successfully 
                                assisting at-risk youth to connect to 
                                the workforce, including by providing 
                                them with intensive academic, and 
                                career and technical education and 
                                training.''; and
                          (iii) in subparagraph (B)(ii), by striking 
                        ``, as appropriate'';
          (2) in subsection (b), by striking ``In any year, no more 
        than 20 percent of the individuals enrolled in the Job Corps 
        may be nonresidential participants in the Job Corps.'';
          (3) by amending subsection (c) to read as follows:
  ``(c) Civilian Conservation Centers.--
          ``(1) In general.--The Job Corps centers may include Civilian 
        Conservation Centers, operated under an agreement between the 
        Secretary of Labor and the Secretary of Agriculture, that are 
        located primarily in rural areas. Such centers shall adhere to 
        all the provisions of this subtitle, and shall provide, in 
        addition to education, career and technical education and 
        training, and workforce preparation skills training described 
        in section 148, programs of work experience to conserve, 
        develop, or manage public natural resources or public 
        recreational areas or to develop community projects in the 
        public interest.
          ``(2) Selection process.--The Secretary shall select an 
        entity that submits an application under subsection (d) to 
        operate a Civilian Conservation Center on a competitive basis, 
        as provided in subsection (a).''; and
          (4) by striking subsection (d) and inserting the following:
  ``(d) Application.--To be eligible to operate a Job Corps center 
under this subtitle, an entity shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require, including--
          ``(1) a description of the program activities that will be 
        offered at the center, including how the career and technical 
        education and training reflect State and local employment 
        opportunities, including in in-demand industries;
          ``(2) a description of the counseling, placement, and support 
        activities that will be offered at the center, including a 
        description of the strategies and procedures the entity will 
        use to place graduates into unsubsidized employment upon 
        completion of the program;
          ``(3) a description of the demonstrated record of 
        effectiveness that the entity has in placing at-risk youth into 
        employment, including past performance of operating a Job Corps 
        center under this subtitle;
          ``(4) a description of the relationships that the entity has 
        developed with State and local workforce boards, employers, 
        State and local educational agencies, and the surrounding 
        communities in an effort to promote a comprehensive statewide 
        workforce development system;
          ``(5) a description of the strong fiscal controls the entity 
        has in place to ensure proper accounting of Federal funds;
          ``(6) a description of the strategies and policies the entity 
        will utilize to reduce participant costs;
          ``(7) a detailed budget of the activities that will be 
        supported using funds under this subtitle;
          ``(8) a detailed budget of the activities that will be 
        supported using funds from non-Federal resources;
          ``(9) an assurance the entity will comply with the 
        administrative cost limitation included in section 151(c);
          ``(10) an assurance the entity is licensed to operate in the 
        State in which the center is located; and
          ``(11) an assurance the entity will comply with and meet 
        basic health and safety codes, including those measures 
        described in section 152(b).
  ``(e) Length of Agreement.--The agreement described in subsection 
(a)(1)(A) shall be for not longer than a 2-year period. The Secretary 
may renew the agreement for 3 one-year periods if the entity meets the 
requirements of subsection (f).
  ``(f) Renewal.--
          ``(1) In general.--Subject to paragraph (2), the Secretary 
        may renew the terms of an agreement described in subsection 
        (a)(1)(A) for an entity to operate a Job Corps center if the 
        center meets or exceeds each of the indicators of performance 
        described in section 159(c)(1).
          ``(2) Recompetition.--
                  ``(A) In general.--Notwithstanding paragraph (1), the 
                Secretary shall not renew the terms of the agreement 
                for an entity to operate a Job Corps center if such 
                center is ranked in the bottom quintile of centers 
                described in section 159(f)(2) for any program year. 
                Such entity may submit a new application under 
                subsection (d) only if such center has shown 
                significant improvement in the indicators of 
                performance described in section 159(c)(1) over the 
                last program year.
                  ``(B) Violations.--The Secretary shall not select an 
                entity to operate a Job Corps center if such entity or 
                such center has been found to have a systemic or 
                substantial material failure that involves--
                          ``(i) a threat to the health, safety, or 
                        civil rights of program participants or staff;
                          ``(ii) the misuse of funds received under 
                        this subtitle;
                          ``(iii) loss of legal status or financial 
                        viability, loss of permits, debarment from 
                        receiving Federal grants or contracts, or the 
                        improper use of Federal funds;
                          ``(iv) failure to meet any other Federal or 
                        State requirement that the entity has shown an 
                        unwillingness or inability to correct, after 
                        notice from the Secretary, within the period 
                        specified; or
                          ``(v) an unresolved area of noncompliance.
  ``(g) Current Grantees.--Not later than 60 days after the date of 
enactment of the Workforce Investment Improvement Act of 2012 and 
notwithstanding any previous grant award or renewals of such award 
under this subtitle, the Secretary shall require all entities operating 
a Job Corps center under this subtitle to submit an application under 
subsection (d) to carry out the requirements of this section.''.

SEC. 121. PROGRAM ACTIVITIES.

  Section 148 (29 U.S.C. 2888) is amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) Activities Provided Through Job Corps Centers.--
          ``(1) In general.--Each Job Corps center shall provide 
        enrollees with an intensive, well-organized, and supervised 
        program of education, career, and technical education and 
        training, work experience, recreational activities, physical 
        rehabilitation and development, and counseling. Each Job Corps 
        center shall provide enrollees assigned to the center with 
        access to work-ready services described in section 134(c)(2).
          ``(2) Relationship to opportunities.--
                  ``(A) In general.--The activities provided under this 
                subsection shall be targeted to helping enrollees, on 
                completion of their enrollment--
                          ``(i) secure and maintain meaningful 
                        unsubsidized employment;
                          ``(ii) complete secondary education and 
                        obtain a regular secondary school diploma;
                          ``(iii) enroll in and complete postsecondary 
                        education or training programs, including 
                        obtaining recognized postsecondary credentials, 
                        industry-recognized credentials, and registered 
                        apprenticeships; or
                          ``(iii) satisfy Armed Forces requirements.
                  ``(B) Link to employment opportunities.--The career 
                and technical education and training provided shall be 
                linked to the employment opportunities in in-demand 
                industries in the State in which the Job Corps center 
                is located.''; and
          (2) in subsection (b)--
                  (A) in the subsection heading, by striking 
                ``Education and Vocational'' and inserting ``Academic 
                and Career and Technical Education and'';
                  (B) by striking ``may'' after ``The Secretary'' and 
                inserting ``shall''; and
                  (C) by striking ``vocational'' each place it appears 
                and inserting ``career and technical''; and
          (3) in paragraph (3) of subsection (c), by striking ``have 
        achieved a satisfactory rate of completion and placement in 
        training-related jobs'' and inserting ``have met or exceeded 
        the performance measurements in paragraphs (1) and (2) in 
        section 159(c)''.

SEC. 122. COUNSELING AND JOB PLACEMENT.

  Section 149 (29 U.S.C. 2889) is amended--
          (1) in subsection (a), by striking ``vocational'' and 
        inserting ``career and technical education and'';
          (2) in subsection (b), by striking ``make every effort to 
        arrange to''; and
          (3) by striking subsection (d).

SEC. 123. SUPPORT.

  Subsection (b) of section 150 (29 U.S.C. 2890) is amended to read as 
follows:
  ``(b) Transition Allowances and Support for Graduates.--The Secretary 
shall arrange for a transition allowance to be paid to graduates. The 
transition allowance shall be incentive-based to reflect a graduate's 
completion of academic, career and technical education or training, and 
attainment of a recognized postsecondary credential, including an 
industry-recognized credential.''.

SEC. 124. OPERATIONS.

  Section 151 (29 U.S.C. 2891) is amended--
          (1) in the header, by striking ``operating plan.'' and 
        inserting ``operations.'';
          (2) in subsection (a), by striking ``In General.--'' and 
        inserting ``Operating Plan.--'';
          (3) by striking subsection (b) and redesignating subsection 
        (c) as subsection (b);
          (4) by amending subsection (b) (as so redesignated)--
                  (A) in the heading by inserting ``of Operating Plan'' 
                after ``Availability''; and
                  (B) by striking ``subsections (a) and (b)'' and 
                inserting ``subsection (a)''; and
          (5) by adding at the end the following new subsection:
  ``(c) Administrative Costs.--Not more than 10 percent of the funds 
allotted under section 147 to an entity selected to operate a Job Corps 
center may be used by the entity for administrative costs under this 
subtitle.''.

SEC. 125. COMMUNITY PARTICIPATION.

  Section 153 (29 U.S.C. 2893) is amended to read as follows:

``SEC. 153. COMMUNITY PARTICIPATION.

  ``The director of each Job Corps center shall encourage and cooperate 
in activities to establish a mutually beneficial relationship between 
Job Corps centers in the State and nearby communities. Such activities 
may include the use of any local workforce development boards 
established under section 117 to provide a mechanism for joint 
discussion of common problems and for planning programs of mutual 
interest.''.

SEC. 126. WORKFORCE COUNCILS.

  Section 154 (29 U.S.C. 2894) is amended to read as follows:

``SEC. 154. WORKFORCE COUNCILS.

  ``(a) In General.--Each Job Corps center shall have a workforce 
council appointed by the Governor of the State in which the Job Corps 
center is located.
  ``(b) Workforce Council Composition.--
          ``(1) In general.--A workforce council shall be comprised 
        of--
                  ``(A) business members of the State Board described 
                in section 111(b)(1)(B)(i);
                  ``(B) business members of the local Boards described 
                in section 117(b)(2)(A) located in the State;
                  ``(C) a representative of the State Board described 
                in section 111(f); and
                  ``(D) such other representatives and State agency 
                officials as the Governor may designate.
          ``(2) Majority.--A \2/3\rds majority of the members of the 
        workforce council shall be representatives described in 
        paragraph (1)(A).
  ``(c) Responsibilities.--The responsibilities of the workforce 
council shall be--
          ``(1) to review all the relevant labor market information, 
        including related information in the State workforce plan in 
        section 112, to--
                  ``(A) determine the in-demand industries in the State 
                in which enrollees intend to seek employment after 
                graduation;
                  ``(B) determine the skills and education that are 
                necessary to obtain the employment opportunities 
                described in subparagraph (A); and
                  ``(C) determine the type or types of career and 
                technical education and training that will be 
                implemented at the center to enable the enrollees to 
                obtain the employment opportunities; and
          ``(2) to meet at least once a year to reevaluate the labor 
        market information, and other relevant information, to 
        determine any necessary changes in the career and technical 
        education and training provided at the center.
  ``(d) New Centers.--The workforce council for a Job Corps center that 
is not yet operating shall carry out the responsibilities described in 
subsection (c) at least 3 months prior to the date on which the center 
accepts the first enrollee at the center.''.

SEC. 127. TECHNICAL ASSISTANCE.

  Section 156 is amended to read as follows:

``SEC. 156. TECHNICAL ASSISTANCE TO CENTERS.

  ``(a) In General.--From the funds reserved under section 132(a)(3), 
the Secretary shall provide, directly or through grants, contracts, or 
other agreements or arrangements as the Secretary considers 
appropriate, technical assistance and training for the Job Corps 
program for the purposes of improving program quality.
  ``(b) Activities.--In providing training and technical assistance and 
for allocating resources for such assistance, the Secretary shall--
          ``(1) assist entities, including those entities not currently 
        operating a Job Corps center, in developing the application 
        described in section 147(d);
          ``(2) assist Job Corps centers and programs in correcting 
        deficiencies and violations under this subtitle;
          ``(3) assist Job Corps centers and programs in meeting or 
        exceeding the indicators of performance described in paragraph 
        (1) and (2) of section 159; and
          ``(4) assist Job Corps centers and programs in the 
        development of sound management practices, including financial 
        management procedures.''.

SEC. 128. SPECIAL PROVISIONS.

  Section 158 (29 U.S.C. 2989) is amended--
          (1) by amending paragraph (1) in subsection (c), by striking 
        ``title II of the Federal Property and Administrative Services 
        Act of 1949 (40 U.S.C. 481 et seq.)'' and inserting ``chapter 
        of 5 title 40, United States Code,'';
          (2) by striking subsection (e); and
          (3) by redesignating subsections (f) and (g) as subsections 
        (e) and (f), respectively.

SEC. 129. PERFORMANCE ACCOUNTABILITY MANAGEMENT.

  Section 159 (29 U.S.C. 2899) is amended--
          (1) in the section heading, by striking ``management 
        information'' and inserting ``performance accountability and 
        management''; and
          (2) by striking subsections (c) through (g);
          (3) by inserting after subsection (b) the following:
  ``(c) Indicators of Performance.--
          ``(1) Primary indicators.--The annual primary indicators of 
        performance for Job Corps centers shall include--
                  ``(A) the percentage and number of enrollees who 
                graduate from the Job Corps center;
                  ``(B) the percentage and number of graduates who 
                entered unsubsidized employment related to the career 
                and technical education and training received through 
                the Job Corps center, except that such calculation 
                shall not include enrollment in education, the military 
                or volunteer service;
                  ``(C) the percentage and number of graduates who 
                obtained a recognized postsecondary credential, 
                including an industry-recognized credential or a 
                registered apprenticeship; and
                  ``(D) the cost per successful performance outcome, 
                which is calculated by comparing the number graduates 
                who were placed in a job or obtained a recognized 
                credential, including an industry-recognized 
                credential, to total program costs, including all 
                operations, construction, and administration costs at 
                each Job Corp center.
          ``(2) Secondary indicators.--The annual secondary indicators 
        of performance for Job Corps centers shall include--
                  ``(A) the percentage and number of graduates who 
                entered unsubsidized employment not related to the 
                career and technical education and training received 
                through the Job Corps center;
                  ``(B) the percentage and number of graduates who 
                entered into postsecondary education;
                  ``(C) the percentage and number of graduates who 
                entered into the military;
                  ``(D) the average wage of graduates who are in 
                unsubsidized employment--
                          ``(i) on the first day of employment; and
                          ``(ii) 6 months after the first day;
                  ``(E) the number and percentage of graduates who 
                entered unsubsidized employment and were retained in 
                the unsubsidized employment--
                          ``(i) 6 months after the first day of 
                        employment; and
                          ``(ii) 12 months after the first day of 
                        employment;
                  ``(F) the percentage and number of enrollees compared 
                to the percentage and number of enrollees the Secretary 
                has established targets in section 145(c)(1);
                  ``(G) the cost per training slot, which is calculated 
                by comparing the program's maximum number of students 
                that can be enrolled in a Job Corps center at any given 
                time during the program year to the number of enrollees 
                in the same program year; and
                  ``(H) the number and percentage of former enrollees, 
                including the number dismissed under the zero tolerance 
                policy described in section 152(b).
          ``(3) Indicators of performance for recruiters.--The annual 
        indicators of performance for recruiters shall include the 
        measurements described in subparagraph (A) of paragraph (1) and 
        subparagraphs (F), (G), and (H) of paragraph (2).
          ``(4) Indicators of performance of career transition service 
        providers.--The annual indicators of performance of career 
        transition service providers shall include the measurements 
        described in subparagraphs (B) and (C) of paragraph (1) and 
        subparagraphs, (B), (C), (D), (E), and (F) of paragraph (2).
  ``(d) Additional Information.--The Secretary shall collect, and 
submit in the report described in subsection (f), information on the 
performance of each Job Corps center, and the Job Corps program, 
regarding--
          ``(1) the number and percentage of former enrollees who 
        obtained a regular secondary school diploma;
          ``(2) the number and percentage of former enrollees who 
        entered unsubsidized employment;
          ``(3) the number and percentage of former enrollees who 
        obtained a recognized postsecondary credential, including an 
        industry-recognized credential;
          ``(4) the number and percentage of former enrollees who 
        entered into military service; and
          ``(5) any additional information required by the Secretary.
  ``(e) Methods.--The Secretary shall collect the information described 
in subsections (c) and (d), using methods described in section 
136(i)(2) and consistent with State law, by entering into agreements 
with the States to access such data for Job Corps enrollees, former 
enrollees, and graduates.
  ``(f) Transparency and Accountability.--
          ``(1) Report.--The Secretary shall collect and annually 
        submit to the Committee on Education and the Workforce of the 
        House of Representatives and the Committee on Health, 
        Education. Labor and Pensions of the Senate, as well as make 
        available to the public by electronic means, a report 
        containing--
                  ``(A) information on the performance of each Job 
                Corps center, and the Job Corps program, on the 
                performance indicators described in paragraphs (1) and 
                (2) of subsection (c);
                  ``(B) a comparison of each Job Corps center, by rank, 
                on the performance indicators described in paragraphs 
                (1) and (2) of subsection (c);
                  ``(C) a comparison of each Job Corps center, by rank, 
                on the average performance of all primary indicators 
                described in paragraph (1) of subsection (c);
                  ``(D) information on the performance of the service 
                providers described in paragraphs (2) and (3) on the 
                performance indicators established under such 
                paragraphs; and
                  ``(E) a comparison of each service provider, by rank, 
                on the performance of all service providers described 
                in paragraphs (2) and (3) on the performance indicators 
                established under such paragraphs.
          ``(2) Assessments.--The Secretary shall conduct an annual 
        assessment of the performance of each Job Corps center which 
        shall include information on the Job Corps centers that--
                  ``(A) are ranked in the bottom quintile on the 
                performance indicator described in paragraph 
                (1)(A)(iii); or
                  ``(B) have failed safety and health code violations 
                described in subsection (g).
          ``(3) Performance improvement.--With respect to a Job Corps 
        center that is identified under paragraph (2) or reports less 
        than 50 percent on the performance indicators described in 
        subparagraphs (A), (B), or (C) of subsection (c)(1), the 
        Secretary shall develop and implement a 1 year performance 
        improvement plan. Such a plan shall require action including--
                  ``(A) providing technical assistance to the center;
                  ``(B) changing the management staff of the center;
                  ``(C) replacing the operator of the center;
                  ``(D) reducing the capacity of the center; or
                  ``(E) closing the center.
          ``(4) Closure of job corps centers.--Job Corps centers that 
        have been identified under paragraph (2) or report less than 50 
        percent on subparagraphs (A), (B), or (C) under subsection 
        (c)(1), for more than 4 consecutive years shall be closed. The 
        Secretary shall ensure--
                  ``(A) that the proposed decision to close the center 
                is announced in advance to the general public through 
                publication in the Federal Register and other 
                appropriate means; and
                  ``(B) the establishment of a reasonable comment 
                period, not to exceed 30 days, for interested 
                individuals to submit written comments to the 
                Secretary.
  ``(g) Participant Health and Safety.--The Secretary shall require the 
Federal agency, or appropriate agency responsible for inspecting public 
buildings and safeguarding the health of disadvantaged students, to 
conduct an in-person review of the physical condition and health-
related activities of each Job Corps center annually. Such review shall 
include a passing rate of occupancy under Federal and State 
ordinances.''.

SEC. 130. CLOSURE OF LOW-PERFORMING JOB CORPS CENTERS.

  Section 161 (29 U.S.C. 2901) is amended to read as follows:

``SEC. 161. CLOSURE OF LOW-PERFORMING JOB CORPS CENTERS.

  ``(a) Audit.--Not later than 3 months after the date of enactment of 
the Workforce Investment Improvement Act of 2012, the Secretary shall 
conduct an audit on the past 10 years of performance of Job Corps 
centers, including information indicating--
          ``(1) a comparison of each Job Corps center, by rank, on the 
        performance indicators described in subsections (c) and (d) of 
        section 159 (as such sections were in effect on the day before 
        the date of enactment of the Workforce Investment Improvement 
        Act of 2012);
          ``(2) a comparison of each Job Corps center, by rank, on the 
        average performance of all performance indicators described in 
        subsections (c) and (d) of section 159 (as such sections were 
        in effect on the day before the date of enactment of the 
        Workforce Investment Improvement Act of 2012); and
          ``(3) a listing of the centers, by rank, that have 
        experienced the highest number of serious incidents of crimes 
        of violence, as defined in section 16 of title 18, United 
        States Code.
  ``(b) Recommendations.--Not later than 6 months after the date of 
enactment of the Workforce Investment Improvement Act of 2012, the 
Secretary shall submit a report to the Education and the Workforce 
Committee of the House of Representatives and the Health, Education, 
Labor, and Pensions Committee of the Senate, which shall contain a 
detailed statement of the findings and conclusions from the audit 
described in subsection (a), including information indicating the 
centers that are ranked in the bottom quintile on the performance 
indicators described in paragraphs (1) and (2) of subsection (a).
  ``(c) Closure.--Not later than 12 months after the date of enactment 
of the Workforce Investment Improvement Act of 2012, the Secretary 
shall close the Job Corps centers identified under subsection (b) in 
accordance with section 158(g).
  ``(d) Transition.--The Secretary shall ensure that program 
participants enrolled in low-performing Job Corps centers slated for 
closure under this subsection receive priority placement to enroll in 
another center in the State or neighboring State.''.

SEC. 131. REFORMS FOR OPENING NEW JOB CORPS CENTERS.

  Subtitle C of title I (29 U.S.C. 2881 et seq.) is amended by adding 
at the end the following:

``SEC. 162. REFORMS FOR OPENING NEW JOB CORPS CENTERS.

  ``(a) In General.--The Secretary shall develop and implement specific 
policies and procedures governing the selection of the State and local 
area for construction of Job Corps centers. Such policies and 
procedures shall be the same across all regions, based on a needs 
assessment of the assignment plan described under section 145(c), and 
free from political favoritism, biases, or considerations.
  ``(b) Restrictions.--
          ``(1) Notification of congress.--The Secretary shall notify 
        the Education and the Workforce Committee of the House of 
        Representatives and the Health, Education, Labor, and Pensions 
        Committee of the Senate before releasing a Request for Proposal 
        for the designation and construction of a Job Corps center.
          ``(2) Number of centers.--Except as provided under paragraph 
        (3), the Secretary shall enter into agreements with not more 
        than 20 Job Corps centers per region, as those regions were in 
        effect on the date of enactment of the Workforce Investment 
        Improvement Act of 2012.
          ``(3) Exception.--The Secretary may enter into agreements 
        with more than 20 Job Corps centers upon approval, in writing, 
        of the Chairman and Ranking Member of the Education and the 
        Workforce Committee of the House of Representatives and the 
        Health, Education, Labor, and Pensions Committee of the 
        Senate.''.

                     Subtitle D--National Programs

SEC. 132. TECHNICAL ASSISTANCE.

  Section 170 (29 U.S.C. 2915) is amended--
          (1) by striking subsection (b);
          (2) by striking:
  ``(a) General Technical Assistance.--'';
          (3) by redesignating paragraphs (1), (2), and (3) as 
        subsections (a), (b), and (c) respectively, and moving such 
        subsections 2 ems to the left;
          (4) in subsection (a) (as so redesignated)--
                  (A) by inserting ``the training of staff providing 
                rapid response services, the training of other staff of 
                recipients of funds under this title, assistance 
                regarding accounting and program operation practices 
                (when such assistance would not be duplicative to 
                assistance provided by the State), technical assistance 
                to States that do not meet State performance measures 
                described in section 136,'' after ``localities,''; and
                  (B) by striking ``from carrying out activities'' and 
                all that follows up to the period and inserting ``to 
                implement the amendments made by the Workforce 
                Investment Improvement Act of 2012'';
          (5) in subsection (b) (as so redesignated)--
                  (A) by striking ``paragraph (1)'' and inserting 
                ``subsection (a)''; and
                  (B) by striking ``, or recipient of financial 
                assistance under any of sections 166 through 169,'';
          (6) in subsection (c) (as so redesignated), by striking 
        ``paragraph (1)'' and inserting ``subsection (a)''; and
          (7) by inserting, after subsection (c) (as so redesignated), 
        the following:
  ``(d) Best Practices Coordination.--The Secretary shall--
          ``(1) establish a system through which States may share 
        information regarding best practices with regard to the 
        operation of workforce investment activities under this Act; 
        and
          ``(2) evaluate and disseminate information regarding best 
        practices and identify knowledge gaps.''.

SEC. 133. EVALUATIONS.

  Section 172 (29 U.S.C. 2917) is amended--
          (1) in subsection (a), by striking ``the Secretary shall 
        provide for the continuing evaluation of the programs and 
        activities, including those programs and activities carried out 
        under section 171'' and inserting ``the Secretary, through 
        grants, contracts, or cooperative agreements, shall conduct, at 
        least once every 5 years, an independent evaluation of the 
        programs and activities funded under this Act'';
          (2) in subsection (a)(4) is amended to read as follows:
          ``(4) the impact of receiving services and not receiving 
        services under such programs and activities on the community, 
        businesses, and individuals;'';
          (3) in subsection (c) is amended to read as follows:
  ``(c) Techniques.--Evaluations conducted under this section shall 
utilize appropriate and rigorous methodology and research designs, 
including the use of control groups chosen by scientific random 
assignment methodologies, quasi-experimental methods, impact analysis 
and the use of administrative data. The Secretary shall conduct an 
impact analysis, as described in subsection (a)(4), of the formula 
grant program under subtitle B not later than 2014, and thereafter 
shall conduct such an analysis not less than once every four years.'';
          (4) in subsection (e) is amended by striking ``the Committee 
        on Labor and Human Resources of the Senate'' and inserting 
        ``the Committee on Health, Education, Labor, and Pensions of 
        the Senate''; and
          (5) by adding at the end, the following:
  ``(g) Public Availability.--The results of the evaluations conducted 
under this section shall be made publicly available, including by 
posting such results on the Department's website.''.

SEC. 134. MILITARY TRANSITIONAL ASSISTANCE.

  Subtitle D of title I (29 U.S.C. 2911 et seq.) is amended by adding 
at the end the following:

``SEC. 175. MILITARY TRANSITIONAL ASSISTANCE.

  ``(a) In General.--The Secretary, in consultation with the 
Secretaries of Defense, Homeland Security, and Veterans Affairs, shall 
establish and carry out a program to furnish counseling, assistance in 
identifying employment and training opportunities, help in obtaining 
such employment and training, and other related information and 
services to members of the armed forces under the jurisdiction of the 
Secretary concerned who are being separated from active duty and the 
spouses of such members. Such services shall be provided to a member 
within the time periods provided under paragraph (3) of section 1142(a) 
of title 10, United States Code, except that the Secretary concerned 
shall not provide pre-separation counseling to a member described in 
paragraph (4)(A) of such section.
  ``(b) Elements of Program.--In establishing and carrying out a 
program under this section, the Secretary shall--
          ``(1) provide information concerning employment and training 
        assistance, including--
                  ``(A) labor market information;
                  ``(B) civilian work place requirements and employment 
                opportunities;
                  ``(C) instruction in resume preparation; and
                  ``(D) job analysis techniques, job search techniques, 
                and job interview techniques.
          ``(2) in providing information under paragraph (1), use 
        experience obtained from implementation of the pilot program 
        established under section 408 of Public Law 101-237;
          ``(3) provide information concerning Federal, State, and 
        local programs, and programs of military and veterans' service 
        organizations, that may be of assistance to such members after 
        separation from the armed forces, including, as appropriate, 
        the information and services to be provided under section 1142 
        of title 10, United States Code;
          ``(4) inform such members that the Department of Defense and 
        the Department of Homeland Security are required under section 
        1143(a) of title 10, United States Code, to provide proper 
        certification or verification of job skills and experience 
        acquired while on active duty that may have application to 
        employment in the civilian sector for use in seeking civilian 
        employment and in obtaining job search skills;
          ``(5) provide information and other assistance to such 
        members in their efforts to obtain loans and grants from the 
        Small Business Administration and other Federal, State, and 
        local agencies;
          ``(6) provide information about the geographic areas in which 
        such members will relocate after separation from the armed 
        forces, including, to the degree possible, information about 
        employment opportunities, the labor market, and the cost of 
        living in those areas (including, to the extent practicable, 
        the cost and availability of housing, child care, education, 
        and medical and dental care);
          ``(7) work with military and veterans service organizations 
        and other appropriate organizations in promoting and 
        publicizing job fairs for such members; and
          ``(8) provide information regarding the public and community 
        service jobs program carried out under section 1143a of title 
        10, United States Code.
  ``(c) Participation.--(1) Except as provided in paragraph (2), the 
Secretary shall enter into an agreement with the Secretary of Defense 
and the Secretary of Homeland Security, to require the participation in 
the program carried out under this section of the members eligible for 
assistance under the program.
  ``(2) The Secretary may, under regulations the Secretary of Defense 
and the Secretary of Homeland Security prescribe, waive the 
participation requirement of paragraph (1) with respect to--
          ``(A) such groups or classifications of members as the 
        Secretary determines, after consultation with the Secretary of 
        Defense, Secretary of Homeland Security and the Secretary of 
        Veterans Affairs, for whom participation is not and would not 
        be of assistance to such members based on the Secretaries' 
        articulable justification that there is extraordinarily high 
        reason to believe the exempted members are unlikely to face 
        major readjustment, health care, employment, or other 
        challenges associated with transition to civilian life; and
          ``(B) individual members possessing specialized skills who, 
        due to unavoidable circumstances, are needed to support a 
        unit's imminent deployment.
  ``(d) Use of Personnel and Organizations.--In carrying out the 
program established under this section, the Secretaries--
          ``(1) shall use the veterans employment specialist appointed 
        under section 134(f); and
          ``(2) may--
                  ``(A) use other employment service personnel funded 
                by the Department of Labor to the extent that the 
                Secretary of Labor determines that such use will not 
                significantly interfere with the provision of services 
                or other benefits to eligible veterans and other 
                eligible recipients of such services or benefits;
                  ``(B) use military and civilian personnel of the 
                Department of Defense and the Department of Homeland 
                Security;
                  ``(C) use personnel of the Veterans Benefits 
                Administration of the Department of Veterans Affairs 
                and other appropriate personnel of that Department;
                  ``(D) use representatives of military and veterans 
                service organizations;
                  ``(E) enter into contracts with public entities;
                  ``(F) enter into contracts with private entities, 
                particularly with qualified private entities that have 
                experience with instructing members of the armed forces 
                eligible for assistance under the program carried out 
                under this section on--
                          ``(i) private sector culture, resume writing, 
                        career networking, and training on job search 
                        technologies;
                          ``(ii) academic readiness and educational 
                        opportunities; or
                          ``(iii) other relevant topics; and
                  ``(G) take other necessary action to develop and 
                furnish the information and services to be provided 
                under this section.
  ``(e) Participation in Apprenticeship Programs.--As part of the 
program carried out under this section, the Secretary, in consultation 
with the Secretary of Defense and the Secretary of Homeland Security, 
may permit a member of the armed forces eligible for assistance under 
the program to participate in an apprenticeship program registered 
under the Act of August 16, 1937 (commonly known as the `National 
Apprenticeship Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), 
or a pre-apprenticeship program that provides credit toward a program 
registered under such Act, that provides members of the armed forces 
with the education, training, and services necessary to transition to 
meaningful employment that leads to economic self-sufficiency.''.

                       Subtitle E--Administration

SEC. 135. REQUIREMENTS AND RESTRICTIONS.

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

SEC. 136. PROMPT ALLOCATION OF FUNDS.

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

SEC. 137. FISCAL CONTROLS; SANCTIONS.

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

SEC. 138. REPORTS TO CONGRESS.

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

SEC. 139. ADMINISTRATIVE PROVISIONS.

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

SEC. 140. STATE LEGISLATIVE AUTHORITY.

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

SEC. 141. CONTINUATION OF STATE ACTIVITIES AND POLICIES.

  Section 194 (29 U.S.C. 2944) is amended--
          (1) in subsection (a)(1)(A), by striking ``127 or'';
          (2) in subsection (a)(1)(B), by striking ``127 or''; and
          (3) in subsection (a)(2), by striking ``127 or''.

SEC. 142. GENERAL PROGRAM REQUIREMENTS.

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

SEC. 143. DEPARTMENT STAFF.

  Subtitle E of title I (29 U.S.C. 2931 et seq.) is amended by adding 
at the end the following new section:

``SEC. 196. DEPARTMENT STAFF.

  ``The Secretary shall--
          ``(1) not later than 60 days after the date of the enactment 
        of the Workforce Investment Improvement Act of 2012--
                  ``(A) identify the number of Department of Labor 
                employees who work on or administer programs under this 
                Act, as such programs were in effect on the day before 
                such date of enactment; and
                  ``(B) publish such information on the Department's 
                website;
          ``(2) not later than 60 days after such date of enactment, 
        identify the number of full-time equivalent employees who work 
        on or administer programs authorized under this Act, as such 
        programs were in effect on the day before such date of 
        enactment, that have been eliminated or consolidated on or 
        after such date; and
          ``(3) not later than 1 year after such date of enactment--
                  ``(A) reduce the workforce of the Department of Labor 
                by the number of full-time equivalent employees 
                identified under paragraph (2); and
                  ``(B) submit to Congress a report on--
                          ``(i) the number of employees associated with 
                        each program authorized under this Act and 
                        administered by the Department;
                          ``(ii) the number of full-time equivalent 
                        employees identified under paragraph (2); and
                          ``(iii) how the Secretary reduced the number 
                        of employees at the Department under 
                        subparagraph (A).''.

                     Subtitle F--State Unified Plan

SEC. 144. STATE UNIFIED PLAN.

  Section 501 (29 U.S.C. 9271) is amended--
          (1) by amending subsection (b) to read as follows:
  ``(b) State Unified Plan.--
          ``(1) In general.--A State may develop and submit to the 
        appropriate Secretaries a State unified plan for 2 or more of 
        the activities or programs set forth in paragraph (2). The 
        State unified plan shall cover one or more of the activities 
        set forth in subparagraphs (A) and (B) of paragraph (2) and may 
        cover one or more of the activities set forth in subparagraphs 
        (C) through (N) of paragraph (2). For purposes of this 
        paragraph, the activities and programs described in 
        subparagraphs (A) and (B) of paragraph (2) shall not be 
        considered to be 2 or more activities or programs for purposes 
        of the unified plan. Such activities or programs shall be 
        considered to be 1 activity or program.
          ``(2) Activities and programs.--The activities and programs 
        referred to in paragraph (1) are as follows:
                  ``(A) Programs and activities authorized under title 
                I.
                  ``(B) Programs and activities authorized under title 
                II.
                  ``(C) Programs authorized under the Rehabilitation 
                Act of 1973.
                  ``(D) Secondary career education programs authorized 
                under the Carl D. Perkins Career and Applied Technology 
                Education Act.
                  ``(E) Postsecondary career education programs 
                authorized under the Carl D. Perkins Career and Applied 
                Technology Education Act.
                  ``(F) Programs and activities authorized under title 
                II of the Trade Act of 1974.
                  ``(G) National Apprenticeship Act of 1937.
                  ``(H) Programs authorized under the Community 
                Services Block Grant Act.
                  ``(I) Programs authorized under the part A of title 
                IV of the Social Security Act.
                  ``(J) Programs authorized under State unemployment 
                compensation laws (in accordance with applicable 
                Federal law).
                  ``(K) Work programs authorized under section 6(o) of 
                the Food Stamp Act of 1977.
                  ``(L) Programs and activities authorized title I of 
                the Housing and Community Development Act of 1974.
                  ``(M) Programs and activities authorized under the 
                Public Workers and Economic Development Act of 1965.
                  ``(N) Activities as defined under chapter 41 of title 
                38, United States Code.''; and
          (2) by adding at the end, the following:
  ``(e) Authority To Consolidate Funds Into Workforce Investment 
Fund.--
          ``(1) In general.--A State may consolidate funds allotted to 
        a State under an approved application under subsection (d) into 
        the Workforce Investment Fund under section 132(b) in order to 
        reduce inefficiencies in the administration of federally-funded 
        State and local employment and training programs.
          ``(2) Treatment of funds.--
                  ``(A) In general.--Notwithstanding subsection (c), a 
                State with an approved application under subsection (d) 
                may treat any and all funds consolidated into the 
                Workforce Investment Fund as if they were original 
                funds allotted to a State under section 132(b).
                  ``(B) Applicability.--Such a State shall continue to 
                make reservations, except the reservation under section 
                133(a)(1), and allotments in accordance with section 
                133(b)(2).
          ``(3) Special rule.--A State may not consolidate funds 
        allocated to the State under the Carl D. Perkins Career and 
        Technical Education Act of 2006 and funds allocated to the 
        State under the Rehabilitation Act of 1973.''.

        TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

SEC. 201. AMENDMENT.

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

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

``SEC. 201. SHORT TITLE.

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

``SEC. 202. PURPOSE.

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

``SEC. 203. DEFINITIONS.

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

``SEC. 204. HOME SCHOOLS.

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

``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

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

                    ``Subtitle A--Federal Provisions

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

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

``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.

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

                     ``Subtitle B--State Provisions

``SEC. 221. STATE ADMINISTRATION.

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

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

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

``SEC. 223. STATE LEADERSHIP ACTIVITIES.

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

``SEC. 224. STATE PLAN.

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

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

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

                     ``Subtitle C--Local Provisions

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

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

``SEC. 232. LOCAL APPLICATION.

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

``SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

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

                    ``Subtitle D--General Provisions

``SEC. 241. ADMINISTRATIVE PROVISIONS.

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

``SEC. 242. NATIONAL ACTIVITIES.

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

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

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

  The Wagner-Peyser Act (29 U.S.C. 49 et seq.) is amended by amending 
section 15 to read as follows:

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

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

              TITLE IV--REPEALS AND CONFORMING AMENDMENTS

SEC. 401. REPEALS.

  The following provisions are repealed:
          (1) Chapter 4 of subtitle B of title I, and sections 123, 
        155, 166, 167, 168, 169, 171, 173, 173A, 174, 192, 502, 503, 
        and 506 of the Workforce Investment Act of 1998 (as such 
        provisions were in effect on the day before the date of 
        enactment of the Workforce Investment Improvement Act of 2012).
          (2) Title V of the Older Americans Act of 1965.
          (3) Sections 1 through 14 of the Wagner-Peyser Act.
          (4) Subsection (c) of section 414 of the American 
        Competitiveness and Workforce Improvement Act (29 U.S.C. 
        2916a).
          (5) Youth Conservation Corps Act of 1970 (16 U.S.C. 1701 et 
        seq.).
          (6) Section 821 of the Higher Education Amendments of 1998 
        (20 U.S.C. 1151) (Grants to States for workplace and community 
        transition training for incarcerated individuals).
          (7) Section 412 of the Immigration and Nationality Act (8 
        U.S.C. 1522) and section 501(a) of the Refugee Education 
        Assistance Act of 1980 (94 Stat. 1809; 8 U.S.C. 1522 note).
          (8) Section 231 of the Second Chance Act of 2007 (Public Law 
        110-199).
          (9) The Women in Apprenticeship and Nontraditional 
        Occupations Act (29 U.S.C. 2501 et seq.).
          (10) Sections 4103A and 4104 of title 38, United States Code.
          (11) Section 2021 of title 38, United States Code (Homeless 
        Veterans Reintegration Programs).
          (12) Section 1144 of title 10, United States Code (Employment 
        assistance, job training assistance, and other transitional 
        services).

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

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

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

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

SEC. 404. CONFORMING AMENDMENTS TO THE UNITED STATES CODE.

  Title 38, United States Code, is amended--
          (1) by striking the item relating to section 4103A and 
        section 4104 in the table of sections at the beginning of 
        chapter 41 of such title;
          (2) in section 4102A--
                  (A) in subsection (b)--
                          (i) by striking paragraphs (5), (6), and (7);
                          (ii) by redesignating paragraph (8) as 
                        paragraph (5);
                  (B) by striking subsections (c) and (h);
                  (C) by redesignating subsection (d), (e), (f), and 
                (g) as subsection (c), (d), (e), and (f);
                  (D) in subsection (e)(1) (as so redesignated)--
                          (i) by striking ``, including disabled 
                        veterans' outreach program specialists and 
                        local veterans' employment representatives 
                        providing employment, training, and placement 
                        services under this chapter in a State'';
                          (ii) by striking ``for purposes of subsection 
                        (c)''.
          (3) in section 4109(a), by striking ``disabled veterans' 
        outreach program specialists, local veterans' employment 
        representatives'' and inserting ``veteran employment 
        specialists appointed under section 134(f) of the Workforce 
        Investment Act'';
          (4) in section 4109(d)(1), by striking ``disabled veterans' 
        outreach program specialists and local veterans' employment 
        representatives'' and inserting ``veteran employment 
        specialists appointed under section 134(f) of the Workforce 
        Investment Act'';
          (5) in section 4112(d)--
                  (A) in paragraph (1), by striking ``disabled 
                veterans' outreach program specialist'' and inserting 
                ``veteran employment specialist appointed under section 
                134(f) of the Workforce Investment Act''; and
                  (B) by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (2);
          (6) in section 3672(d)(1), by striking ``disabled veterans' 
        outreach program specialists under section 4103A'' and 
        inserting ``veteran employment specialists appointed under 
        section 134(f) of the Workforce Investment Act of 1998''.
          (7) in section 4113--
                  (A) in subsection (a), by striking ``section 1144 of 
                title 10'' and inserting ``section 175 of the Workforce 
                Investment Act of 1998''; and
                  (B) in subsection (b), by striking ``section 
                1144(a)(1) of title 10'' and inserting ``section 175(a) 
                of the Workforce Investment Act of 1998''; and
          (8) in section 4104A--
                  (A) in subsection (b)(1), by striking subparagraph 
                (A) and inserting the following:
                  ``(A) the appropriate veteran employment specialist 
                (in carrying out the functions described in section 
                134(f);''; and
                  (B) in subsection (c)(1), by striking subparagraph 
                (A) and inserting the following:
                  ``(A) collaborate with the appropriate veteran 
                employment specialist (as described in section 134(f)) 
                and the appropriate State boards and local boards (as 
                such terms are defined in section 101 of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801));''.

SEC. 405. CONFORMING AMENDMENT TO TABLE OF CONTENTS.

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

``Sec. 1. Short title; table of contents.

                ``TITLE I--WORKFORCE INVESTMENT SYSTEMS

             ``Subtitle A--Workforce Investment Definitions

``Sec. 101. Definitions.

     ``Subtitle B--Statewide and Local Workforce Investment Systems

``Sec. 106. Purpose.

                     ``Chapter 1--State Provisions

``Sec. 111. State workforce investment boards.
``Sec. 112. State plan.

                     ``Chapter 2--Local Provisions

``Sec. 116. Local workforce investment areas.
``Sec. 117. Local workforce investment boards.
``Sec. 118. Local plan.

         ``Chapter 3--Workforce Investment Activities Providers

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

                        ``Chapter 4--[Repealed]

            ``Chapter 5--Employment and Training Activities

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

                    ``Chapter 6--General Provisions

``Sec. 136. Performance accountability system.
``Sec. 137. Authorization of appropriations.

                        ``Subtitle C--Job Corps

``Sec. 141. Purposes.
``Sec. 142. Definitions.
``Sec. 143. Establishment.
``Sec. 144. Individuals eligible for the Job Corps.
``Sec. 145. Recruitment, screening, selection, and assignment of 
enrollees.
``Sec. 146. Enrollment.
``Sec. 147. Job Corps centers.
``Sec. 148. Program activities.
``Sec. 149. Counseling and job placement.
``Sec. 150. Support.
``Sec. 151. Operations.
``Sec. 152. Standards of conduct.
``Sec. 153. Community participation.
``Sec. 154. Workforce councils.
``Sec. 155. [Repealed].
``Sec. 156. Technical assistance to centers.
``Sec. 157. Application of provisions of Federal law.
``Sec. 158. Special provisions.
``Sec. 159. Management information.
``Sec. 160. General provisions.
``Sec. 161. Closure of low-performing Job Corps centers.
``Sec. 162. Reforms to remove political favoritism in the opening of 
new Job Corps centers.

                    ``Subtitle D--National Programs

``Sec. 166. [Repealed].
``Sec. 167. [Repealed].
``Sec. 168. [Repealed].
``Sec. 169. [Repealed].
``Sec. 170. Technical assistance.
``Sec. 171. [Repealed].
``Sec. 172. Evaluations.
``Sec. 173. [Repealed].
``Sec. 173A. [Repealed].
``Sec. 174. [Repealed].
``Sec. 175. Military transitional assistance.

                      ``Subtitle E--Administration

``Sec. 181. Requirements and restrictions.
``Sec. 182. Prompt allocation of funds.
``Sec. 183. Monitoring.
``Sec. 184. Fiscal controls; sanctions.
``Sec. 185. Reports; recordkeeping; investigations.
``Sec. 186. Administrative adjudication.
``Sec. 187. Judicial review.
``Sec. 188. Nondiscrimination.
``Sec. 189. Administrative provisions.
``Sec. 190. References.
``Sec. 191. State legislative authority.
``Sec. 192. [Repealed].
``Sec. 193. Use of certain real property.
``Sec. 194. Continuation of State activities and policies.
``Sec. 195. General program requirements.
``Sec. 196. Department Staff.

            ``Subtitle F--Repeals and Conforming Amendments

``Sec. 199. Repeals.
``Sec. 199A. Conforming amendments.

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

``Sec. 201. Short title.
``Sec. 202. Purpose.
``Sec. 203. Definitions.
``Sec. 204. Home schools.
``Sec. 205. Authorization of appropriations.

                    ``Subtitle A--Federal Provisions

``Sec. 211. Reservation of funds; grants to eligible agencies; 
allotments.
``Sec. 212. Performance accountability system.

                     ``Subtitle B--State Provisions

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

                     ``Subtitle C--Local Provisions

``Sec. 231. Grants and contracts for eligible providers.
``Sec. 232. Local application.
``Sec. 233. Local administrative cost limits.

                    ``Subtitle D--General Provisions

``Sec. 241. Administrative provisions.
``Sec. 242. National activities.

          ``TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                    ``Subtitle A--Wagner-Peyser Act

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

               ``Subtitle B--Linkages With Other Programs

``Sec. 321. Trade Act of 1974.
``Sec. 322. Veterans' employment programs.
``Sec. 323. Older Americans Act of 1965.

        ``Subtitle C--Twenty-First Century Workforce Commission

``Sec. 331. Short title.
``Sec. 332. Findings.
``Sec. 333. Definitions.
``Sec. 334. Establishment of Twenty-First Century Workforce Commission.
``Sec. 335. Duties of the Commission.
``Sec. 336. Powers of the Commission.
``Sec. 337. Commission personnel matters.
``Sec. 338. Termination of the Commission.
``Sec. 339. Authorization of appropriations.

``Subtitle D--Application of Civil Rights and Labor-Management Laws to 
                      the Smithsonian Institution

``Sec. 341. Application of civil rights and labor-management laws to 
the Smithsonian Institution.

           ``TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998

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

                     ``TITLE V--GENERAL PROVISIONS

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

         TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973

SEC. 501. FINDINGS.

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

SEC. 502. REHABILITATION SERVICES ADMINISTRATION.

  (a) Rehabilitation Services Administration.--The Rehabilitation Act 
of 1973 (29 U.S.C. 701 et seq.) is amended--
          (1) in section 3(a) (29 U.S.C. 702(a))--
                  (A) by striking ``Office of the Secretary'' and 
                inserting ``Department of Education'';
                  (B) by striking ``President by and with the advice 
                and consent of the Senate'' and inserting 
                ``Secretary''; and
                  (C) by striking ``, and the Commissioner shall be the 
                principal officer,'';
          (2) by striking ``Commissioner'' each place it appears 
        (except in section 21) and inserting ``Director'';
          (3) in section 12(c) (29 U.S.C. 709), is amended by striking 
        ``Commissioner's'' and inserting ``Director's'';
          (4) in the heading for subparagraph (B) of section 100(d)(2), 
        by striking ``commissioner'' and inserting ``director'';
          (5) in the heading for section 706, by striking 
        ``commissioner'' and inserting ``director'';
          (6) in the heading for paragraph (3) of section 723(a), by 
        striking ``commissioner'' and inserting ``director''; and
          (7) in section 21 (29 U.S.C. 718)--
                  (A) in subsection (b)(1)--
                          (i) by striking ``Commissioner'' the first 
                        place it appears and inserting ``Director of 
                        the Rehabilitation Services Administration'';
                          (ii) by striking ``(referred to in this 
                        subsection as the `Director')''; and
                          (iii) by striking ``The Commissioner and the 
                        Director'' and inserting ``Both such 
                        Directors''; and
                  (B) by striking ``the Commissioner and the Director'' 
                each place it appears and inserting ``both such 
                Directors''.
  (b) Effective Date; Application.--The amendments made by subsection 
(a) shall--
          (1) take effect on the date of the enactment of this Act; and
          (2) apply with respect to the appointments of Directors of 
        the Rehabilitation Services Administration made on or after the 
        date of enactment of this Act, and the Directors so appointed.

SEC. 503. DEFINITIONS.

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

SEC. 504. STATE PLAN.

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

SEC. 505. SCOPE OF SERVICES.

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

SEC. 506. STANDARDS AND INDICATORS.

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

SEC. 507. COLLABORATION WITH INDUSTRY.

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

``SEC. 109A. COLLABORATION WITH INDUSTRY.

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

SEC. 508. RESERVATION FOR EXPANDED TRANSITION SERVICES.

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

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

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

SEC. 509. CLIENT ASSISTANCE PROGRAM.

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

SEC. 510. TITLE III REPEALS.

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

SEC. 511. REPEAL OF TITLE VI.

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

SEC. 512. CHAIRPERSON.

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

SEC. 513. AUTHORIZATIONS OF APPROPRIATIONS.

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

SEC. 514. CONFORMING AMENDMENTS.

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

``Sec. 109A. Collaboration with industry.'';

          (2) by inserting after the item relating to section 110 the 
        following:

``Sec. 110A. Reservation for expanded transition services.'';

          (3) by striking the item related to section 304 and inserting 
        the following:

``Sec. 304. Measuring of project outcomes and performance.'';

          (4) by striking the items related to sections 305 and 306; 
        and
          (5) by striking the items related to title VI.

                                Purpose

    H.R. 4297, the Workforce Investment Improvement Act of 
2012, amends the Workforce Investment Act of 1998 to streamline 
federal workforce development programs, strengthen the 
employer-driven workforce development system, expand decision-
making at the local level, improve accountability and 
transparency, simplify reporting requirements, encourage more 
training to meet in-demand job opportunities, and improve adult 
education and vocational rehabilitation.

                            Committee Action

    The Committee on Education and the Workforce is committed 
to developing a comprehensive and seamless statewide workforce 
investment system that helps unemployed and underemployed 
workers obtain the in-demand skills and employment services 
they need to find employment.

                             107TH CONGRESS

Hearings--Second Session

    On Tuesday, March 12, 2002, the Committee on Education and 
the Workforce Subcommittee on 21st Century Competitiveness held 
a hearing in Washington, DC, on ``Welfare to Work: Ties Between 
Temporary Assistance for Needy Families (TANF) and Workforce 
Development.'' The purpose of the hearing was to learn about 
the interaction between the TANF block grant and the workforce 
investment system created through the Workforce Investment Act 
(WIA). Testifying before the subcommittee were: Dr. Sigurd 
Nilsen, Director of Health, Education, and Human Services 
Division, U.S. General Accounting Office (now known as the 
Government Accountability Office, GAO), Washington, DC; Mr. 
John B. O'Reilly, Jr., Executive Director, Southeast Michigan 
Community Alliance, Taylor, MI; Dr. Barbara Gault, Director of 
Research, Institute for Women's Policy Research, Washington, 
DC; Mr. Greg Gardner, Acting Director, Utah Department of 
Workforce Services, Salt Lake City, UT; and Dr. Erika Kates, 
Executive Director, Welfare Education Training Access Coalition 
Center for Youth and Communities, Brandeis University, Boston, 
MA.
    On Thursday, September 12, 2002, the Committee on Education 
and the Workforce Subcommittee on 21st Century Competitiveness 
held a hearing in Washington, DC, on the ``Implementation of 
the Workforce Investment Act: Promising Practices in Workforce 
Development.'' The purpose of the hearing was to encourage and 
promote a seamless system that improves services to job seekers 
and employers. Testifying before the subcommittee were: Mr. 
Bruce Stenslie, Director, Ventura County Workforce Investment 
Board, Ventura, CA; Ms. Diane D. Rath, Chair, Texas Workforce 
Commission, Austin, TX; Mr. Danny Wegman, President, Wegmans 
Food Markets, Rochester, NY; and Mr. Timothy Barnicle, Co-
Director, Workforce Development Program, National Center on 
Education and the Economy, Washington, DC.

                             108TH CONGRESS

Hearings--First Session

    On Wednesday, February 12, 2003, the Committee on Education 
and the Workforce held a hearing in Washington, DC, on ``Back 
to Work: The Administration's Plan for Economic Recovery and 
the Workforce Investment Act.'' The purpose of the hearing was 
to learn about the administration's proposal to speed the 
country's economic recovery, a component of which included 
Personal Reemployment Accounts that provide assistance to help 
unemployed Americans who are struggling to return to work, and 
learn about the administration's proposal for the Workforce 
Investment Act reauthorization. Testifying before the committee 
were: the Honorable Elaine Chao, Secretary, U.S. Department of 
Labor, Washington, DC; Mr. Kenneth Mayfield, President, 
National Association of Counties, Washington, DC; and Dr. 
Lawrence Mishel, President, Economic Policy Institute, 
Washington, DC.
    On Tuesday, February 18, 2003, the Committee on Education 
and the Workforce held a field hearing in Las Vegas, NV, on 
``H.R. 444, the Back to Work Incentive Act.'' The purpose of 
the hearing was to examine and discuss the Back to Work 
Incentive Act, which reflected the administration's initial 
plan to create personal reemployment accounts to help 
unemployed individuals return to work quickly. Testifying 
before the committee were: Ms. Myla Florence, Director, Nevada 
Department of Employment, Training, and Rehabilitation, Carson 
City, NV; Mr. Ardell Galbreth, Deputy Board Manager, Southern 
Nevada Workforce Investment Board, Las Vegas, NV; Mr. Robert 
Brewer, Chair, Southern Nevada Workforce Investment Board, Las 
Vegas, NV; and Ms. Debi Lindemenn, Employment Specialist 
Supervisor, Department of Employment, Training, and 
Rehabilitation, North Las Vegas, NV.
    On Tuesday, March 4, 2003, the Committee on Education and 
the Workforce Subcommittee on 21st Century Competitiveness held 
a hearing in Washington, DC, on ``Improving Adult Education for 
the 21st Century.'' The purpose of the hearing was to learn 
about pertinent issues to be addressed in the reauthorization 
of the Adult Education and Family Literacy Act, Title II of the 
Workforce Investment Act. Testifying before the subcommittee 
were: the Honorable Carol D'Amico, Assistant Secretary for 
Vocational and Adult Education, U.S. Department of Education, 
Washington, DC; Dr. Beth Buehlmann, Executive Director, Center 
for Workforce Preparation for the U.S. Chamber of Commerce, 
Washington, DC; Dr. Randy Whitfield, Associate Vice President 
of Academic and Student Services, North Carolina Community 
College System, Raleigh, NC; Ms. Ann-Marie Panella, Director of 
Human Resources, MCS Industries, Inc., Easton, PA; and Ms. 
Hermelinda Morales Herrera, Adult Education Participant, 
Aurora, CO.
    On Tuesday, March 11, 2003, the Committee on Education and 
the Workforce Subcommittee on 21st Century Competitiveness held 
a hearing in Washington, DC, on ``Workforce Investment and 
Rehabilitation Acts: Improving Services and Empowering 
Individuals.'' The purpose of the hearing was to learn about 
methods to strengthen and improve current programs and results 
for job seekers and employers. Testifying before the 
subcommittee were: the Honorable Emily DeRocco, Assistant 
Secretary for Employment and Training, U.S. Department of 
Labor, Washington, DC; the Honorable Robert Pasternack, 
Assistant Secretary for Special Education and Rehabilitative 
Services, U.S. Department of Education, Washington, DC; Mr. 
Thomas J. White, President and Chief Executive Officer, Greater 
Durham Chamber of Commerce, Durham, NC; Mr. Steven Savner, 
Senior Staff Attorney, Center for Law and Social Policy, 
Washington, DC; Mr. John Twomey, President, National Workforce 
Association, Washington, DC; and Ms. Bettie Shaw-Henderson, 
District Manager, Michigan Department of Vocational 
Rehabilitation, Grand Rapids, MI.

Legislative Action--First Session

    On January 29, 2003, Rep. Jon Porter (R-NV) and 21st 
Century Competitiveness Subcommittee Chairman Howard P. 
``Buck'' McKeon (R-CA) introduced H.R. 444, the Back to Work 
Incentive Act, a bill to amend the Workforce Investment Act of 
1998 to establish a Personal Reemployment Accounts grant 
program to assist Americans in returning to work.
    On February 26, 2003, the Subcommittee on 21st Century 
Competitiveness considered H.R. 444 in legislative session and 
reported it favorably, as amended, to the Committee on 
Education and the Workforce by a vote of 15--12.
    The subcommittee considered and adopted the following 
amendment to H.R. 444:
     Subcommittee Chairman Howard P. ``Buck'' McKeon 
(R-CA) offered an amendment in the nature of a substitute to: 
(1) make clear that the Back to Work accounts would be 
administered through the local one-stop delivery system under 
the direction of local workforce investment boards; (2) require 
local boards to submit a plan to the state, consistent with the 
state plan, in order to receive an allocation to administer the 
accounts; (3) require states and local areas, through their 
respective plans, to specify safeguards to ensure the quality 
and integrity of services and providers, consistent with the 
purpose of providing flexibility and choice to individuals; (4) 
require the individual accepting a Back to Work account to 
attest that he or she was given the option to develop a 
personal reemployment plan; and (5) allow states to make 
eligible individuals who have exhausted their unemployment 
compensation benefits within the previous 180 days, instead of 
the 90 day limit in the original bill. The amendment was 
adopted by a voice vote.
    The subcommittee further considered the following amendment 
to H.R. 444, which was not adopted:
     Reps. Dale Kildee (D-MI) and David Wu (D-OR) 
offered an amendment to strike all language after the enacting 
clause and insert language that allocates funds to each state 
to provide emergency employment accounts to eligible 
individuals. The funds in these accounts would be used in the 
same manner as unemployment compensation benefits. The 
amendment failed by a vote of 11-13.
    On March 5, 2003, the Committee on Education and the 
Workforce considered H.R. 444 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by a vote of 23-22, with one member voting 
present.
    The committee considered and adopted the following 
amendments to H.R. 444:
     Subcommittee Chairman Howard P. ``Buck'' McKeon 
(R-CA) offered an amendment in the nature of a substitute to: 
(1) change the calculation of the ``look-back'' period for 
eligibility determinations from days to weeks to be consistent 
with the terminology used in the unemployment compensation 
program; (2) clarify that the 40 percent retention bonus is 
provided after 26 weeks of employment retention; and (3) make 
other technical improvements. The amendment was adopted by a 
voice vote.
     Rep. Pete Hoekstra (R-MI) offered an amendment to 
make those individuals whose unemployment can be attributed in 
substantial part to unfair competition from Federal Prison 
Industries, Inc., eligible to receive Back to Work accounts, 
subject to state criteria and prioritization. The amendment was 
adopted by a voice vote.
    The committee further considered the following amendments 
to H.R. 444, which were not adopted:
     Rep. Dale Kildee (D-MI) offered an amendment to 
strike all language after the enacting clause and insert 
language that allocates funds to each state to provide 
emergency employment accounts to eligible individuals. The 
funds in these accounts would be used in the same manner as 
unemployment compensation benefits. The amendment failed by a 
vote of 20-24.
     Rep. David Wu (D-OR) offered an amendment to 
change the amount of a Back to Work account from ``not 
exceeding $3,000'' to $3,000. Additionally, the amendment would 
have struck subparagraph (C) of section 135F(a)(3), which 
prohibits recipients of the account from receiving intensive, 
supportive, or training services funded under WIA except on a 
fee-for-services basis for one year following the establishment 
of the account. The amendment failed by a voice vote.
     Rep. Donald Payne (D-NJ) offered an amendment that 
was not germane and ruled out of order by the Chair.
     Rep. Donald Payne (D-NJ) offered an amendment to 
prohibit the account holder from buying services from providers 
who fall in the exemptions category of current civil rights 
protections. Examples of exemptions include an employer 
providing training services who has less than 10 employees, or 
a faith based organization offering childcare. The amendment 
failed by a vote of 20-22.
     Rep. Betty McCollum (D-MN) offered an amendment to 
make individuals whose unemployment from the textile industries 
attributed in substantial part to unfair competition pursuant 
to basing agreements eligible to receive Back to Work accounts. 
The amendment failed by a vote of 20-23.
     Rep. Denise Majette (D-GA) offered and withdrew an 
amendment to specify that intensive services must be provided 
through the one-stop delivery system, and that a provider of 
training services must meet the requirements of section 
122(a)(2) of the Workforce Investment Act.
    On March 13, 2003, 21st Century Competitiveness 
Subcommittee Chairman Howard P. ``Buck'' McKeon (R-CA) and 
Chairman John Boehner (R-OH) introduced H.R. 1261, the 
Workforce Reinvestment and Adult Education Act of 2003, a bill 
to amend the Workforce Investment Act of 1998 to provide for 
the nation's One-Stop workforce development system. The 
legislation also contains the Adult Basic Education Skills Act, 
which reauthorizes state programs for adult education, and 
reauthorizes the Rehabilitation Act of 1973, which provides 
services to help individuals with disabilities become 
employable and achieve full integration into society.
    On March 20, 2003, the Subcommittee on 21st Century 
Competitiveness considered H.R. 1261 in legislative session and 
reported it favorably, as amended, to the Committee on 
Education and the Workforce by a vote of 15-12.
    The subcommittee considered and adopted the following 
amendments to H.R. 1261:
     Subcommittee Chairman Howard P. ``Buck'' McKeon 
(R-CA) offered an amendment in the nature of a substitute to 
clarify the distribution of adult funding within states, allow 
some youth funding to be used to serve in-school youth, address 
the problem of determining system expenditures, add adult 
education incentive grants, reinstate the National Institute 
for Literacy, and make other technical changes. The amendment 
was adopted by a voice vote.
     Rep. Johnny Isakson (R-GA) offered an amendment to 
make a technical change. The amendment was adopted by a voice 
vote.
    The subcommittee further considered the following 
amendments to H.R. 1261, which were not adopted:
     Rep. Dale Kildee (D-MI) offered an amendment to 
strike the Back to Work Accounts and authorize Emergency 
Employment Accounts. The amendment failed by a vote of 10-13.
     Rep. Rush Holt (D-NJ) offered an amendment to 
increase the authorization for dislocated workers. The 
amendment failed by a vote of 11-15.
     Rep. Dale Kildee (D-MI) offered an amendment to 
strike the Back to Work Accounts and authorize a medical and 
safety first responders grant program. The amendment failed by 
a vote of 10-14.
     Rep. John Tierney (D-MA) offered and withdrew an 
amendment to reinstate the Employment Service program 
authorized under the Wagner-Peyser Act.
     Rep. John Tierney (D-MA) offered and withdrew an 
amendment to strike the youth activities and youth challenge 
provisions that focus on out-of-school youth.
     Rep. Donald Payne (D-NJ) offered and withdrew an 
amendment to require that service providers are subject to 
anti-discrimination laws.
    On March 27, 2003, the Committee on Education and the 
Workforce considered H.R. 1261 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by a vote of 26-21.
    The committee considered and adopted the following 
amendments to H.R. 1261:
     Subcommittee Chairman Howard P. ``Buck'' McKeon 
(R-CA) offered an amendment in the nature of a substitute to 
ensure confidentiality of student records, allow states to 
measure customer satisfaction, amend the provisions relating to 
in-school youth, add Family Literacy to the adult education 
program, reauthorize the Helen Keller National Center Act, and 
make additional technical changes. The amendment also removes 
Back to Work Accounts from the bill, which had already been 
approved by the full committee as a stand-alone bill (H.R. 
444). The Back to Work Accounts were temporarily removed 
pending negotiations on the FY 2004 Budget Resolution. The 
amendment was adopted by a voice vote.
     Rep. Johnny Isakson (R-GA) offered an amendment to 
make a technical change. The amendment was adopted, en bloc, by 
a voice vote.
     Rep. Danny Davis (D-IL) offered an amendment to 
require states to specify how they would address the needs of 
ex-offenders. The amendment was adopted a voice vote.
     Rep. Tom Osborne (R-NE) offered an amendment to 
provide that the Commissioner of Rehabilitation Services 
Administration will no longer be a presidential appointment. 
The amendment was adopted by a vote of 24-23.
     Rep. Lynn Woolsey (D-CA) offered an amendment to 
allow states to provide programs for displaced homemakers using 
statewide employment and training funds. The amendment was 
adopted by a voice vote.
     Rep. Betty McCollum (D-MN) offered an amendment to 
authorize the secretary to provide demonstration retention 
grants to qualified job training programs upon placement or 
retention of a low-income individual. The amendment was adopted 
by a voice vote.
     Rep. Rob Andrews (D-NJ) offered an amendment to 
allow entrepreneurial training to eligible individuals. The 
amendment was adopted by a voice vote.
     Rep. Ron Kind (D-WI) offered an amendment to 
require states to specify how they will serve the employment 
and training needs of dislocated farmers, ranchers, and 
fishermen. The amendment was adopted by a voice vote.
     Rep. Carolyn McCarthy (D-NY) offered an amendment 
to include a `hold harmless' funding provision at 2003 levels 
pending amended allocation levels. The amendment was adopted by 
a voice vote.
    The committee further considered the following amendments 
to H.R. 1261, which were not adopted:
     Rep. Dale Kildee (D-MI) offered an amendment in 
the nature of a substitute. The amendment failed by a vote of 
16-25.
     Rep. Dale Kildee (D-MI) offered an amendment to 
use the Back to Work Account fund to extend unemployment 
benefits. The amendment failed by a vote of 19-19.
     Rep. Tim Ryan (D-OH) offered an amendment to 
create a new grant program for medical and safety occupations. 
The amendment failed by a vote of 15-25.
     Rep. Chris Van Hollen (D-MD) offered an amendment 
to eliminate faith-based organizations as eligible participants 
under the Workforce Investment Act. The amendment failed by a 
vote of 18-22.
     Rep. Rush Holt (D-NJ) offered an amendment to 
increase the funding authorization for dislocated workers. The 
amendment failed by a vote of 19-23.
     Rep. John Tierney (D-MA) offered an amendment to 
require separate funding streams for individual workforce 
development programs. The amendment failed by a vote of 20-24.
     Rep. Danny Davis (D-IL) offered an amendment to 
strike provisions making the Commissioner of Rehabilitation 
Services a secretarial appointment instead of a presidential 
appointment. The amendment failed by a vote of 23-25.
     Rep. Rob Andrews (D-NJ) offered an amendment to 
count as a success the placement of clients into non-integrated 
workplace settings. The amendment failed by a vote of 6-37, 
with 4 voting present.
     Rep. John Tierney (D-MA) offered an amendment 
regarding funding allocations for in-school and out-of-school 
youth. The amendment failed by a vote of 21-26.
     Rep. Danny Davis (D-IL) offered an amendment to 
strike provisions making the Commissioner of Rehabilitation 
Services a secretarial appointment instead of a presidential 
appointment. The amendment failed by a vote of 23-25.
     Rep. Carolyn McCarthy (D-NY) offered and withdrew 
an amendment to ensure states shall not receive a funding 
allotment less than what they received in 2003.
     Rep. Ron Kind (D-WI) offered and withdrew an 
amendment to require states to describe how they will serve 
farmers in their state plan.
    On May 8, 2003, the House of Representatives passed H.R. 
1261 by a vote of 220-204.
    On November 14, 2003, the Senate passed a substitute 
version of H.R. 1261 by unanimous consent.
    On June 3, 2004, the House of Representatives appointed 
conferees to resolve differences with the Senate on H.R. 1261.
    The Senate did not appoint conferees to resolve differences 
with the House on H.R. 1261.

                             109TH CONGRESS

Hearing--First Session

    On July 12, 2005, the Committee on Education and the 
Workforce Subcommittee on Select Education held a hearing in 
Washington, DC, on ``Coordination Among Federal Youth 
Development Programs.'' The purpose of the hearing was to 
examine federal youth development programs that help 
disadvantaged youth develop the academic, social, and 
citizenship skills needed for a successful future. Testifying 
before the subcommittee were: Dr. Michael O'Grady, Assistant 
Secretary for Planning and Evaluation, U.S. Department of 
Health and Human Services, Washington, DC; Mr. Richard Moore, 
Criminal and Juvenile Justice Planning Division, Iowa 
Department of Human Rights, Des Moines, IA; Ms. Marguerite 
Sallee, President and Chief Executive Officer, America's 
Promise--The Alliance for Youth, Washington, DC; Ms. Laura 
Shubilla, President, Philadelphia Youth Network, Philadelphia, 
PA; and Dr. Laurence Steinberg, Director, MacArthur Foundation 
Research Network on Adolescent Development and Juvenile 
Justice, Temple University, Philadelphia, PA.

Hearing--Second Session

    On April 6, 2006, the Committee on Education and the 
Workforce held a hearing in Washington, DC, on ``Building 
America's Competitiveness: Examining What is Needed to Compete 
in a Global Economy.'' The purpose of the hearing was to 
examine methods for addressing the changing needs of the 
workforce. Testifying before the committee were: the Honorable 
Elaine Chao, Secretary, U.S. Department of Labor, Washington, 
DC; the Honorable Margaret Spellings, Secretary, U.S. 
Department of Education, Washington, DC; Mr. Jim Jarrett, Vice 
President, Worldwide Government Affairs, Intel Corporation, 
Santa Clara, CA; Mr. Wes Jurey, President and Chief Executive 
Officer, Arlington Chamber of Commerce, Arlington, TX; and Dr. 
James Simons, President, Renaissance Technologies Corporation, 
New York, NY.

Legislative Action--First Session

    On January 4, 2005, 21st Century Competitiveness 
Subcommittee Chairman Howard P. ``Buck'' McKeon (R-CA) and 
Chairman John Boehner (R-OH) introduced H.R. 27, the Job 
Training Improvement Act of 2005, a bill to amend the Workforce 
Investment Act of 1998 to provide for the nation's One-Stop 
workforce development system. The legislation also contains the 
Adult Basic Education Skills Act, which reauthorizes state 
programs for adult education, and provisions reauthorizing the 
Rehabilitation Act of 1973, which provides services to help 
individuals with disabilities become employable and achieve 
full integration into society. The bill is substantially the 
same as H.R. 1261, which was considered by the House in the 
108th Congress.
    On February 9, 2005, the Subcommittee on 21st Century 
Competitiveness considered H.R. 27 in legislative session and 
reported it favorably, as amended, to the Committee on 
Education and the Workforce by a vote of 18-15.
    The subcommittee considered and adopted the following 
amendments to H.R 27:
     Subcommittee Chairman Howard P. ``Buck'' McKeon 
(R-CA) offered an amendment in the nature of a substitute that 
creates new authority within the demonstration section of WIA 
to authorize the president's proposal for community-based job 
training grants; defines administrative costs; makes projects 
that focus on employment in advanced manufacturing allowable 
pilot projects; removes the calculation of program efficiency 
as a core indicator of performance; clarifies that in order to 
be eligible for WIA youth services, an out-of-school youth who 
has finished high school and has low basic skills must not be 
attending any school; allows services for youth during the 
school day if youth are participating in programs that have 
demonstrated effectiveness in high school youth achieving 
diplomas; reinstates the business and community liaison for Job 
Corps centers; and makes other technical and conforming 
changes. The amendment was adopted by a voice vote.
     Rep. Luis Fortuno (R-PR) offered an amendment that 
requires states to describe in their plans how they will serve 
individuals with limited English proficiency and allows local 
areas to offer training that integrates occupational skills 
training with English language acquisition. The amendment was 
adopted by a voice vote.
     Rep. Ron Kind (D-WI) offered an amendment that 
allows the secretary, through available demonstration funding, 
to award competitive grants to train real-time writers. The 
amendment was adopted by a voice vote.
     Rep. Rush Holt (D-NJ) offered an amendment that 
requires the secretary to submit states' quarterly reports to 
the House Committee on Education and the Workforce and the 
Senate Committee on Health, Education, Labor, and Pensions. The 
amendment was adopted by a voice vote.
    The subcommittee further considered the following 
amendments to H.R. 27, which were not adopted:
     Rep. Bobby Scott (D-VA) offered an amendment to 
preserve the religious non-discrimination requirement. The 
amendment failed by a vote of 13-19.
     Rep. Dale Kildee (D-MI) offered an amendment to 
create a separate funding stream for One-Stop Career Center 
administrative costs. The amendment failed by a vote of 14-18.
     Rep. Rush Holt (D-NJ) offered an amendment to 
create an additional funding authorization for dislocated 
workers. The amendment failed by a vote of 15-18.
     Rep. Dale Kildee (D-MI) offered an amendment to 
strike the personal reemployment accounts pilot program. The 
amendment failed by a vote of 15-18.
     Rep. John Tierney (D-MA) offered an amendment to 
strike block granting and funding restructuring provisions. The 
amendment failed by a vote of 15-18.
     Rep. John Tierney (D-MA) offered an amendment to 
preserve youth opportunity grants. The amendment failed by a 
vote of 15-18.
     Rep. John Tierney (D-MA) offered an amendment to 
preserve the mandated One-Stop Career Center partners on local 
workforce investment boards. The amendment failed by a voice 
vote.
     Rep. John Tierney (D-MA) offered an amendment to 
alter the sequence of services. The amendment failed by a vote 
of 15-18.
     Rep. Rush Holt (D-NJ) offered and withdrew an 
amendment to add a use of funds to purchase computer technology 
for workforce development.
    On February 16 and 17, 2005, the Committee on Education and 
the Workforce considered H.R. 27 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by a vote of 26-20.
    The committee considered and adopted the following 
amendments to H.R. 27:
     Subcommittee Chairman Howard P. ``Buck'' McKeon 
(R-CA) offered an amendment in the nature of a substitute that 
authorizes $211 million for WIA pilot and demonstration 
authority (of which $125 million could be used for the 
president's community-based job training grants) and also 
authorizes the secretary to use up to $125 million more from 
WIA national reserve funds to fund community-based job training 
grants; clarifies that community colleges are the only training 
providers eligible to participate in community-based job 
training grants; allows governors to consider whether training 
providers allow participants to attain a certification, 
credential, or mastery as they develop their criteria for 
determining eligible providers of training; authorizes the 
American Indian Consortium to receive funds under the Client 
Assistance Program to provide protection and advocacy services 
to Native Americans; allows programs under the Protection and 
Advocacy of Individual Rights program to retain program income 
generated by the system for up to one additional year after it 
was generated; requires the state vocational rehabilitation 
agency to coordinate with the lead agencies established under 
the Assistive Technology Act of 1998; allows state vocational 
rehabilitation agencies to spend funds to support activities 
authorized under the Assistive Technology Act of 1998; and 
makes other technical and conforming changes. The amendment was 
adopted by a voice vote.
     Rep. Thelma Drake (R-VA) offered an amendment to 
require state and local performance indicators to be adjusted 
based on the number of veterans with disabilities being served. 
The amendment was adopted by a voice vote.
     Rep. Rob Andrews (D-NJ) offered an amendment to 
allow local areas to provide information regarding the 
availability of micro-credit loans when providing 
entrepreneurship training. The amendment was adopted by a voice 
vote.
     Rep. Rob Andrews (D-NJ) offered an amendment to 
allow the secretary to award competitive grants to business 
partnerships using pilot and demonstration funding. The 
amendment was adopted by a voice vote.
    The committee further considered the following amendments 
to H.R. 27, which were not adopted:
     Rep. Rush Holt (D-NJ) offered an amendment to 
increase the funding authorization for Title I of the Act. The 
amendment failed by a vote of 21-22.
     Rep. Tim Ryan (D-OH) offered an amendment to 
require states to set aside funds for an early intervention 
program for workers affected by offshoring. The amendment 
failed by a vote of 19-23.
     Rep. Major Owens (D-NY) offered an amendment to 
require the secretary to set up an interstate transfer 
demonstration program. The amendment failed by a vote of 12-17.
     Rep. Bobby Scott (D-VA) offered an amendment to 
preserve the religious non-discrimination requirement. The 
amendment failed by a vote of 19-23.
     Rep. Chris Van Hollen (D-MD) offered an amendment 
to require the secretary to collect specific data on women 
workers. The amendment failed by a vote of 16-23.
     Rep. Carolyn McCarthy (D-NY) offered an amendment 
to require a hiring policy statement for positions funded 
through the Workforce Investment Act. The amendment failed by a 
vote of 17-27.
     Rep. Dale Kildee (D-MI) offered an amendment to 
create a separate funding stream for One-Stop Career Center 
administrative costs. The amendment failed by a vote of 19-21.
     Rep. Lynn Woolsey (D-CA) offered an amendment to 
require states to specifically describe youth workforce 
development services in their state plan. The amendment failed, 
en bloc, by a vote of 19-21.
     Rep. Lynn Woolsey (D-CA) offered an amendment to 
allow local areas to use up to 10 percent of local funding to 
serve displaced homemakers or training women for nontraditional 
employment. The amendment failed, en bloc, by a vote of 19-21.
     Rep. Dale Kildee (D-MI) offered an amendment to 
strike the personal reemployment accounts pilot program. The 
amendment failed by a vote of 19-21.
     Rep. David Wu (D-OR) offered and withdrew an 
amendment to restructure the youth grants program.
     Rep. John Tierney (D-MA) offered an amendment to 
strike the block granting and funding restructuring provisions. 
The amendment failed by a voice vote.
     Rep. Carolyn McCarthy (D-NY) offered and withdrew 
an amendment to create a special rule for states with policy-
making authority that is independent of the authority of the 
governor.
     Rep. Ruben Hinojosa (D-TX) offered and withdrew an 
amendment to further disaggregate reporting data.
     Rep. John Tierney (D-MA) offered an amendment to 
preserve the Youth Opportunity Grants program. The amendment 
failed by a voice vote.
     Rep. Rob Andrews (D-NJ) offered an amendment to 
authorize a new business incubator pilot program. The amendment 
failed by a voice vote.
    On March 2, 2005, the House of Representatives passed H.R. 
27 by a vote of 224-200.
    On June 29, 2006, the Senate passed a substitute version of 
H.R. 27 by unanimous consent.
    Neither the House nor the Senate appointed conferees to 
resolve differences on H.R. 27.

                             110TH CONGRESS

Hearings--First Session

    On March 26, 2007, the Committee on Education and Labor 
held a hearing in Washington, DC, on ``How Effective are 
Existing Programs in Helping Workers Impacted by International 
Trade?'' The purpose of the hearing was to examine the 
effectiveness of federal programs intended to assist American 
workers affected by outsourcing, specifically the Trade 
Adjustment Assistance program. Testifying before the committee 
were: Mr. David Brevard, Former Employee, Maytag Refrigeration 
Products, Galesburg, IL; Mr. Stan Dorn, Senior Research 
Assistant, Urban Institute, Washington, DC; Mr. Bruce Herman, 
Executive Director, National Employment Law Project, New York, 
NY; Dr. Lael Brainard, Vice President and Director, Global 
Economy Development Center, Brookings Institute, Washington, 
DC; Dr. Tim Alford, Director, Alabama Office of Workforce 
Development, Montgomery, AL; and Ms. Thea Lee, Policy Director 
and Chief International Economist, AFL-CIO, Washington, DC.
    On June 28, 2007, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competitiveness held a hearing in Washington, DC, on 
``Workforce Investment Act: Recommendations to Improve the 
Effectiveness of Job Training.'' The purpose of the hearing was 
to focus on the priorities for the reauthorization of the 
Workforce Investment Act of 1998. Testifying before the 
subcommittee were: Mr. Bruce Ferguson, Jr., President and Chief 
Executive Officer, WorkSource, Fleming Island, FL; Mr. Wes 
Jurey, President and Chief Executive Office, Arlington Chamber 
of Commerce, testifying on behalf of the U.S. Chamber of 
Commerce, Arlington, TX; Dr. Sigurd Nilsen, Director of 
Education, Workforce, and Income Security Issues, U.S. 
Government Accountability Office (GAO), Washington, DC; Dr. 
Rachel Gragg, Federal Policy Director, The Workforce Alliance, 
Washington, DC; Ms. Evelyn Ganzglass, Director, Workforce 
Development, Center for Law and Social Policy, Washington, DC; 
and Dr. Sandra Baxter, Director, National Institute for 
Literacy, Washington, DC.
    On July 26, 2007, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competitiveness held a hearing in Washington, DC, on ``The 
Workforce Investment Act: Ideas to Improve the Workforce 
Development System.'' The purpose of the hearing was again to 
focus on priorities for the reauthorization of the Workforce 
Investment Act of 1998. Testifying before the subcommittee 
were: Ms. Beth Butler, Vice President, Employment Compliance, 
Wachovia Corporate Headquarters, Charlotte, NC; Mr. John 
Twomey, Executive Director, New York Association of Training 
and Employment Professionals, Albany, NY; Mr. Charles Ware, 
Chief Executive Officer, Wyoming Contractors Association, 
Cheyenne, WY; Mr. Mason Petit, Employment Counselor, Washington 
State Employment Security Department, Seattle, WA; Ms. Kathleen 
Randolph, President, Partners for Workforce Solutions, Fort 
Wayne, IN; and Mr. Joseph Carbone, President and Chief 
Executive Officer, Workplace Incorporated, Southwestern 
Connecticut's Workforce Investment Board, Bridgeport, CT.

Hearing--Second Session

    On May 6, 2008, the Committee on Education and Labor held a 
hearing in Washington, DC, on ``Do Federal Programs Ensure U.S. 
Workers Are Recruited First Before Employers Hire from 
Abroad?'' The purpose of the hearing was to examine whether 
federal programs ensure U.S. workers are recruited before 
employers hire from abroad. Testifying before the committee 
were: the Honorable Leon Sequeira, Assistant Secretary for 
Policy, U.S. Department of Labor, Washington, DC; Dr. William 
Carlson, Administrator, Office of Foreign Labor Certification, 
Employment and Training Administration, U.S. Department of 
Labor, Washington, DC; Mr. Bruce Goldstein, Executive Director, 
Farmworker Justice, Washington, DC; Mr. Javier Riojas, Attorney 
and Branch Manager, Texas Rio Grande Legal Aid, Eagle Pass, TX; 
Mr. John Young, President, National Council of Agriculture 
Employers, Vienna, VA; Mr. Andrew Sum, Professor of Economics 
and Director, Center for Labor Market Studies, Northeastern 
University, Boston, MA; and Mr. Bill Beardall, Executive 
Director, Equal Justice Center, Austin, TX.

Legislative Action--First Session

    On June 25, 2007, Rep. Hilda Solis (D-CA) introduced H.R. 
2847, the Green Jobs Act of 2007. The bill amends the Workforce 
Investment Act of 1998 to direct the secretary to: (1) 
establish an energy efficiency and renewable energy worker 
training program that targets certain persons; and (2) 
establish a national research program to collect and analyze 
labor market data to track workforce trends resulting from 
energy-related initiatives under the bill.
    On June 27, 2007, the Committee on Education and Labor 
considered H.R. 2847 in legislative session and reported it 
favorably, as amended, to the House of Representatives by a 
vote of 26-18, with one member voting present.
    The committee considered and adopted the following 
amendments to H.R. 2847:
     Rep. John Tierney (D-MA) offered an amendment that 
contained technical modifications. The amendment was adopted by 
a voice vote.
     Rep. Dennis Kucinich (D-OH) offered an amendment 
to add ``the energy efficiency assessment industry'' as an 
eligible industry. The amendment was adopted by a voice vote.
     Rep. Vernon Ehlers (R-MI) offered an amendment to 
add ``manufacturers that produce sustainable products using 
environmentally sustainable processes and materials'' as an 
eligible industry. The amendment was adopted by a voice vote.
     Rep. Virginia Foxx (R-NC) offered an amendment to 
require the secretary to apply performance measures to the 
grants administered under this bill. The amendment was adopted 
by a voice vote.
    The committee further considered the following amendments 
to H.R. 2847, which were not adopted:
     Rep. Howard P. ``Buck'' McKeon (R-CA) offered an 
amendment in the nature of a substitute to strike the creation 
of the new program and replace it with specific authority for 
state and local workforce investment boards to carry out worker 
training programs focusing on renewable energy and energy 
efficiency. The amendment was defeated by a vote of 20-25.
     Rep. Charles Boustany (R-LA) offered an amendment 
to sunset the program created in the Green Jobs Act after five 
years. The amendment was defeated by a vote of 18-26.
     Rep. Tom Price (R-GA) offered an amendment to 
apply Pay-as-you-Go requirements to H.R. 2847. The amendment 
was defeated by a vote of 20-25.
     Rep. Howard P. ``Buck'' McKeon (R-CA) offered an 
amendment to add ``the nuclear and clean coal to liquids 
industries'' to the list of eligible industries. The amendment 
was defeated by a vote of 20-25.
     Rep. Howard P. ``Buck'' McKeon (R-CA) offered an 
amendment to strike priority to ``formerly incarcerated, 
adjudicated, non-violent offenders.'' The amendment was 
defeated by a vote of 20-26.
    Though H.R. 2847 was not considered by the House of 
Representatives, its provisions were included in H.R. 3221, the 
Housing and Economic Recovery Act of 2008, which was signed 
into law on July 30, 2008.

                             111TH CONGRESS

Hearings--First Session

    On February 12, 2009, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competiveness held a hearing in Washington, DC, on ``New 
Innovations and Best Practices under the Workforce Investment 
Act (Part I).'' The purpose of the hearing was to focus on 
ideas for improving the Workforce Investment Act of 1998. 
Testifying before the subcommittee were: Ms. Sherry L. Johnson, 
Associate Director, Lincoln Trail Area Development District, 
Elizabethtown, KY; Ms. Karen R. Elzey, Vice President and 
Executive Director, Institute for a Competitive Workforce 
(ICW), U.S. Chamber of Commerce, Washington, DC; Ms. Bonnie 
Gonzalez, Chief Executive Officer, Workforce Solutions, 
McAllen, TX; Mr. Morton Bahr, National Coalition for Adult 
Literacy, Washington, DC; Mr. Stephen Wooderson, Administrator, 
Iowa Vocational Rehabilitation Services, Des Moines, IA; and 
Mr. Bill Camp, Executive Secretary, Sacramento Central Labor 
Council, Sacramento, CA.
    On February 26, 2009, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competiveness held a hearing in Washington, DC, on ``New 
Innovations and Best Practices under the Workforce Investment 
Act (Part II).'' The purpose of the hearing was to focus on 
ideas for improving the Workforce Investment Act of 1998. 
Testifying before the subcommittee were: Mr. John Morales, 
President, National Workforce Association, and Executive 
Director, Yuma Private Industry Council (YPIC), Yuma, AZ; Ms. 
Cheryl Keenan, Director, Division of Adult Education and 
Literacy, Office of Vocational and Adult Education, U.S. 
Department of Education, Washington, DC; Mr. George Scott, 
Director of Education, Workforce, and Income Security Issues, 
U.S. Government Accountability Office (GAO), Washington, DC; 
Mr. Bob Lanter, Legislative Committee Chairman, California 
Workforce Association and Executive Director, Contra Costa 
Workforce Development Board, Concord, CA; Ms. Sandi Vito, 
Acting Secretary, Department of Labor and Industry, State of 
Pennsylvania, on behalf of National Governor's Association, 
Harrisburg, PA; Mr. Kevin Smith, Executive Director and Chief 
Operating Officer, Literacy New York Inc., Buffalo, NY; and Ms. 
Charissa Raynor, Executive Director, Service Employees 
International Union (SEIU) Healthcare NW Training Partnership, 
Federal Way, WA.
    On March 23, 2009, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competiveness held a field hearing in Albany, NY, on ``New 
Innovations and Best Practices under the Workforce Investment 
Act (Part III).'' The purpose of the hearing was to examine 
best practices being implemented at the state and local levels 
under the Workforce Investment Act of 1998. Testifying before 
the subcommittee were: Mr. Mario Musolino, Executive Deputy 
Commissioner, New York State Department of Labor, Albany, NY; 
Ms. Gail Breen, Executive Director, Fulton-Montgomery-Schoharie 
Counties Workforce Development Board, Inc., Amsterdam, NY; Mr. 
Thomas Quick, Senior Human Resource Manager, General Electric--
Power and Water, Schenectady, NY; Mr. Joseph Sarubbi, Executive 
Director, Tec-Smart, Hudson Valley Community College, Malta, 
NY; and Ms. Nanine Meiklejohn, Senior Legislative 
Representative, American Federation of State, County, and 
Municipal Employees (AFSCME), Washington, DC.
    On March 31, 2009, the Committee on Education and Labor 
Subcommittee on Workforce Protections held a hearing in 
Washington, DC, on ``Green Jobs and their Role in our Economic 
Recovery.'' The purpose of the hearing was to examine the value 
of green jobs in fostering an American economic recovery. 
Testifying before the subcommittee were: Dr. Robin Roy, Vice 
President of Projects and Policy, Serious Materials, Sunnyvale, 
CA; Ms. Jill Sherman, Senior Development Manager at Gerding 
Edlen Development, Portland, OR; Dr. William Bogart, Dean of 
Academic Affairs and Professor of Economics, York College, 
York, PA; Mr. Jerome Ringo, President, Apollo Alliance, San 
Francisco, CA; Dr. Clint Wolfe, Executive Director, Citizens 
for Nuclear Technology Awareness, Aiken, SC; and Ms. Kathy 
Krepcio, Executive Director, John J. Heldrich Center for 
Workforce Development, Rutgers University, Newark, NJ.
    On May 5, 2009, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competitiveness held a hearing in Washington, DC, on ``New 
Innovations and Best Practices under the Workforce Investment 
Act (Part IV).'' The purpose of the hearing was to focus on 
ideas for improving the Adult Education and Family Literacy 
Act, which is included as Title II of the Workforce Investment 
Act of 1998. Testifying before the subcommittee were: Ms. 
Gretchen Wilson, Country Music Singer, Lebanon, TN; Mr. Marty 
Finsterbusch, Executive Director, Voice of Adult Learners 
United to Educate (VALUE), Media, PA; Mr. David L. Bere, 
President, Dollar General, Goodlettsville, TN; Ms. Cathy 
Cooper, Policy Deputy for Basic Skills, Washington State Board 
for Community and Technical Colleges, Olympia, WA; Ms. Roberta 
Lanterman, Program Director, Long Beach School for Adults, Long 
Beach, CA; Dr. Donna Kinerney, Instructional Dean for Adult 
English for Speakers of Other Languages (ESOL) and Literacy 
Programs, Montgomery College, Rockville, MD; and Dr. Steve 
Reder, Professor of Applied Linguistics, Portland State 
University, Portland, OR.
    On May 29, 2009, the Committee on Education and Labor 
Subcommittee on Higher Education, Lifelong Learning, and 
Competiveness held a field hearing in Henderson, NV, on ``New 
Innovations and Best Practices under the Workforce Investment 
Act (Part V).'' The purpose of the hearing was to examine best 
practices being implemented at the state and local levels under 
the Workforce Investment Act of 1998. Testifying before the 
subcommittee were: Mr. Brian Patchett, President and Chief 
Executive Officer, Easter Seals of Southern Nevada, Las Vegas, 
NV; Mr. Chris Brooks, Director of Renewable Energy, Bombard 
Electric, Las Vegas, NV; Ms. Chanda Cook, Director of Community 
Initiatives, Nevada Public Education Foundation, Las Vegas, NV; 
and Ms. Rebecca Metty-Burns, Interim Director, Workforce and 
Economic Division, College of Southern Nevada, Las Vegas, NV.

Hearing--Second Session

    On February 2, 2010, the Committee on Education and Labor 
held a hearing in Washington, DC, on ``Strengthening the 
Economy and Improving the Lives of American Workers.'' The 
purpose of the hearing was to examine the administration's 
policies for getting Americans back to work. Testifying before 
the committee was the Honorable Hilda Solis, Secretary, U.S. 
Department of Labor, Washington, DC.

                             112TH CONGRESS

Hearings--First Session

    On February 16, 2011, the Committee on Education and the 
Workforce held a hearing in Washington, DC, on ``Policies and 
Priorities at the U.S. Department of Labor.'' The purpose of 
the hearing was to discuss the fiscal year 2012 budget proposal 
for the Department of Labor. Testifying before the committee 
was the Honorable Hilda Solis, Secretary, U.S. Department of 
Labor, Washington, DC.
    On April 6, 2011, the Committee on Education and the 
Workforce held a hearing in Washington, DC, on ``Streamlining 
Federal Education and Workforce Programs: A Look at the GAO 
Report on Government Waste.'' The purpose of the hearing was to 
discuss the GAO report entitled, Opportunities to Reduce 
Potential Duplication in Government Programs, Save Tax Dollars, 
and Enhance Revenue, that examined overlap, fragmentation, and 
duplication of federal programs. Testifying before the 
committee was the Honorable Gene L. Dodaro, Comptroller 
General, U.S. Government Accountability Office (GAO), 
Washington, DC.
    On May 11, 2011, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, DC, on ``Removing 
Inefficiencies in the Nation's Job Training Programs.'' The 
purpose of the hearing was to highlight the number of workforce 
development programs administered across the federal 
government, many of which are overlapping, duplicative, and 
target similar populations, and discuss the need to streamline 
these programs. Testifying before the subcommittee were: Dr. 
Andrew Sherrill, Director for Education, Workforce, and Income 
Security, U.S. Government Accountability Office (GAO), 
Washington, DC; Mr. Larry Temple, Executive Director, Texas 
Workforce Commission, Austin, TX; Mr. Bert ``Van'' Royal, 
Owner/Broker, Magnolia Point Reality, K & V Investment Group, 
Inc., Green Cove Springs, FL; and Ms. Evelyn Ganzglass, 
Director of Workforce Development, CLASP, Washington, DC.
    On August 30, 2011, the Committee on Education and the 
Workforce held a field hearing in Las Vegas, NV, on ``Examining 
Local Solutions to Strengthen Federal Job Training Programs.'' 
The purpose of the hearing was to highlight the work being done 
by local businesses and workforce development professionals to 
respond to the needs of the local economy and workforce. 
Testifying before the committee were: The Honorable Andy A. 
Hafen, Mayor, City of Henderson, NV; Mr. Jeremy Aguero, 
Principal Analyst, Applied Analysis, Las Vegas, NV; Mr. Darren 
Enns, Secretary Treasurer, Southern Nevada Building and 
Construction Trades Council, Henderson, NV; Mr. LeRoy Walker, 
Vice President, Human Resources, St. Rose Dominican Hospitals, 
Nevada Market, Henderson, NV; Mr. Edward R. Guthrie, 
ExecutiveDirector, Opportunity Village, Las Vegas, NV; Mr. John Ball, 
Executive Director, Nevada Workforce Connections, Las Vegas, NV; and 
Ms. Rebecca Metty-Burns, Executive Director, Division of Workforce and 
Economic Development, College of Southern Nevada, Las Vegas, NV.
    On October 4, 2011, the Committee on Education and the 
Workforce Subcommittee on Higher Education and Workforce 
Training held a hearing in Washington, DC, on ``Modernizing the 
Workforce Investment Act: Developing an Effective Job Training 
System for Workers and Employers.'' The purpose of the hearing 
was to focus on the need to provide flexibility and autonomy to 
state and local leaders to ensure the system is meeting the 
needs of area businesses and job seekers. Testifying before the 
subcommittee were: Ms. Kristen Cox, Executive Director, Utah 
Department of Workforce Services, Salt Lake City, UT; Ms. 
Laurie Bouillion Larrea, President, Workforce Solutions Greater 
Dallas, Dallas, TX; Mr. Jaime S. Fall, Vice President, 
Workforce and Talent Development Policy, HR Policy Association, 
Washington, DC; and Mr. Bruce G. Herman, Organizer and 
Strategist, National Call to Action, Brooklyn, NY.

Hearings--Second Session

    On March 21, 2012, the Committee on Education and the 
Workforce held a hearing in Washington, DC, on ``Reviewing the 
President's Fiscal Year 2013 Budget Proposal for the U.S. 
Department of Labor.'' The purpose of the hearing was to 
discuss the fiscal year 2013 budget proposal for the Department 
of Labor. Testifying before the committee was the Honorable 
Hilda Solis, Secretary, U.S. Department of Labor, Washington, 
DC.
    On April 17, 2012, the Committee on Education and the 
Workforce held a legislative hearing in Washington, DC, on 
``H.R. 4297, the Workforce Investment Improvement Act of 
2012.'' The purpose of the hearing was to hear perspectives on 
H.R. 4297, which reauthorizes the Workforce Investment Act of 
1998 and hear how the bill addresses the challenges presented 
by the current workforce development system. Testifying before 
the committee were: Ms. Norma Noble, Deputy Secretary of 
Commerce for Workforce Development, Oklahoma Department of 
Commerce, Oklahoma City, OK; Ms. Laurie Moran, President, 
Danville Pittsylvania County Chamber of Commerce, Blairs, VA; 
Ms. Sandy Harmsen, Director, San Bernardino County Department 
of Workforce Development, San Bernardino, CA; and Mr. Andy Van 
Kleunen, Executive Director, National Skills Coalition, 
Washington, DC.

Legislative Action--First Session

    On June 22, 2011, Rep. Howard P. ``Buck'' McKeon (R-CA) 
introduced H.R. 2295, the Workforce Investment Improvement Act 
of 2011. The bill eases restrictions on program participants 
from accessing job training to in-demand industries and improve 
the One-Stop Career Center System. The bill is substantially 
the same as H.R. 27, which was considered by the House in the 
109th Congress.
    On December 8, 2011, Higher Education and Workforce 
Training Subcommittee Chairwoman Virginia Foxx (R-NC) 
introduced H.R. 3610, the Streamlining Workforce Development 
Programs Act of 2011. The bill consolidates more than 30 
federally funded workforce development programs into a 
streamlined workforce development system.
    On December 8, 2011, Rep. Joe Heck (R-NV) introduced H.R. 
3611, the Local Job Opportunities and Business Success Act of 
2011 (JOBS Act). The bill enhances business engagement by 
increasing business presence on local boards to drive workforce 
development services to employers who need skilled workers.

Legislative Action--Second Session

    On March 29, 2012, Higher Education and Workforce Training 
Subcommittee Chairwoman Virginia Foxx (R-NC) and Reps. Howard 
P. ``Buck'' McKeon (R-CA) and Joe Heck (R-NV) introduced H.R. 
4297, the Workforce Investment Improvement Act of 2012. The 
bill streamlines federal workforce development programs, 
strengthens the employer-driven workforce development system, 
expands decision-making at the local level, improves 
accountability and transparency, simplifies reporting 
requirements, encourages more training to meet in-demand job 
opportunities, and improves adult education and vocational 
rehabilitation.
    On June 7, 2012, the Committee on Education and the 
Workforce considered H.R. 4297 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by a vote of 23-15.
    The committee considered and adopted the following 
amendments to H.R. 4297:
     Subcommittee Chairwoman Virginia Foxx (R-NC) 
offered an amendment in the nature of a substitute to ensure 
recognized postsecondary credentials and industry-recognized 
credentials are included in program performance indicators; 
include at-risk and out-of-school youth provisions in all 
program activities; increase the state set-aside for statewide 
activities; maintain and reform the national Job Corps program; 
and make technical and conforming changes. The amendment was 
adopted by a voice vote.
     Rep. Joe Heck (R-NV) offered an amendment to 
include the needs of small businesses and strategies to engage 
small businesses in state and local workforce plans. The 
amendment was adopted by a voice vote.
     Rep. Kristi Noem (R-SD) offered an amendment to 
increase the Secretary's reservation from 1 percent to 2 
percent for Native American, Native Alaskan, and Native 
Hawaiian employment and training services and improve 
performance metrics for such programs. The amendment was 
adopted by a voice vote.
     Subcommittee Chairwoman Virginia Foxx (R-NC) 
offered a manager's amendment to: (1) integrate four veterans 
job training programs identified in the U.S. Government 
Accountability Office (GAO) report into the One-Stop Career 
System funded under the Workforce Investment Fund; (2) 
authorize the Secretary to offer technical assistance to Job 
Corps centers for the purposes of improving program quality; 
and (3) make other technical and conforming changes. The 
amendment was adopted by a voice vote.
            Rep. George Miller (D-CA) offered a second degree 
        amendment to the Foxx manager's amendment to strengthen 
        accountability of veterans employment and training 
        programs. The second degree amendment was adopted by a 
        voice vote.
     Rep. Bobby Scott (D-VA) offered an amendment to 
address employment barriers facing long-term unemployed workers 
in state and local workforce plans. The amendment was adopted 
by a voice vote.
     Rep. Rob Andrews (D-NJ) offered an amendment to 
disaggregate performance data to measure how specific 
populations are served and require states to maintain a central 
repository of policies. The amendment was adopted by a voice 
vote.
     Rep. Susan Davis (D-CA) offered an amendment to 
require veterans service organizations be a member of state and 
local workforce investment boards. The amendment was adopted by 
a voice vote.
            Subcommittee Chairwoman Virginia Foxx (R-NC) 
        offered a second degree amendment to the Davis 
        amendment to allow a governor or chief elected official 
        to appoint a veterans service organization to sit on 
        state and local boards. The amendment was adopted by a 
        vote of 21-17.
    The committee further considered the following amendments 
to H.R. 4297, which were not adopted:
     Rep. John Tierney (D-MA) offered an amendment in 
the nature of a substitute to establish new workforce 
development initiatives, including an $8 billion Community 
College to Career Fund. The amendment failed by a vote of 15-
23.
     Rep. Ruben Hinojosa (D-TX) offered two amendments, 
en bloc, to: (1) eliminate the requirement that state and local 
workforce investment boards have a two-thirds business 
majority, restore 19 specific federal mandates regarding board 
membership, and restore the priority for low-income 
individuals; and (2) increase authorization levels for adult 
education, create new programs related to adult education, 
expand state and local workforce investment boards to include 
representatives of adult education providers, and other changes 
to the Adult and Family Literacy Act (Title II of WIA). The 
amendments failed, en bloc, by a vote of 14-23.
     Rep. Bobby Scott (D-VA) offered an amendment to 
create a new Pathways Back to Work Fund, providing resources 
for low-income and disconnected youth for summer employment. 
The amendment failed by a vote of 15-23.
     Rep. Bobby Scott (D-VA) offered an amendment to 
create a 25 percent reservation of funds from local employment 
and training activities to serve at-risk youth. The amendment 
failed by a vote of 16-22.
     Rep. Dale Kildee (D-MI) offered an amendment to 
increase the set-aside for Native Americans, Native Alaskans, 
and Native Hawaiians from 1 percent to at least 2 percent and 
restore the current WIA Native American Program. The amendment 
failed by a vote of 15-23.
     Rep. Lynn Woolsey (D-CA) offered an amendment to 
restore the national Women in Apprenticeship in Non-Traditional 
Occupations program and add a required activity to the 
statewide employment and training activities for women in non-
traditional employment. The amendment failed by a vote of 15-
23.
     Rep. Tim Bishop (D-NY) offered an amendment to 
prohibit businesses that have sent jobs overseas from being 
members of state and local workforce investment boards. The 
amendment failed by a vote of 15-23.
     Rep. Rush Holt (D-NJ) offered an amendment to 
create a new independent living office that duplicates the 
Department of Education's rehabilitation services office and 
other changes to the Rehabilitation Act of 1973. The amendment 
failed by a vote of 15-23.
     Rep. Todd Platts (R-PA) offered an amendment to 
restore the national YouthBuild program. The amendment failed 
by a vote of 17-21.
     Rep. Tim Bishop (D-NY) offered an amendment to 
allow states to reserve a portion of funds from the state 
allocation to develop cooperative education programs. The 
amendment failed by a vote of 16-22.
     Rep. Rush Holt (D-NJ) offered an amendment to 
establish a 15 percent cap on funds used for incumbent worker 
training at the local level. The amendment was amended by 
unanimous consent and then later withdrawn.
     Rep. George Miller (D-CA) offered an amendment to 
create a new program to train workers to build elementary and 
secondary schools and community colleges. The amendment failed 
by a vote of 15-23.
     Rep. Rush Holt (D-NJ) offered an amendment to 
allow states to spend WIA funds on employment and training 
activities at public libraries. The amendment failed by a vote 
of 18-20.
     Rep. Rush Holt (D-NJ) offered an amendment to 
establish a new National Online Workforce Training Grants 
program. The amendment failed by a voice vote.
     Rep. David Loebsack (D-IA) offered an amendment to 
mandate that 5 percent of the state allocation be spent on an 
Employer Engagement Fund. The amendment failed by a vote of 17-
21.

                                Summary

    H.R. 4297, the Workforce Investment Improvement Act, 
reforms the nation's workforce investment system to ensure it 
is producing results for all job seekers and employers by:
     Streamlining the confusing maze of workforce 
development programs.
     Strengthening business engagement in state and 
local workforce decisions.
     Increasing state and local flexibility and 
reducing administrative overhead.
     Supporting education and training opportunities 
for all adults, dislocated workers, and youth.
     Improving services at One-Stop Career Centers and 
promoting innovation.
     Ensuring accountability for the use of taxpayer 
funds.
     Enhancing adult education and vocational 
rehabilitation services.

Streamlining the confusing maze of workforce development programs

    The Workforce Investment Improvement Act builds on the work 
of state and local efforts, including those in Florida, Texas, 
and Utah, to create seamless, unified workforce development 
systems. As President Obama recognized in the State of the 
Union address, the current design of the public workforce 
investment system is a maze of individual programs and funding 
streams with various mandates, many of which provide the same 
or similar services. The legislation ends this fragmented 
federal, state, and local system that diverts limited resources 
from direct employment and training services for unemployed and 
underemployed workers.
     One Program for All Workers: The bill creates a 
single Workforce Investment Fund that provides formula funds to 
state and local workforce investment boards (WIBs) to create 
universal employment and training programs for all adults, 
unemployed workers, and youth. This new fund ensures all major 
workforce development services are co-located and administered 
through the nation's workforce investment system and the 
nation's One-Stop Career Centers. This change eliminates 
duplicative and inefficient job training programs, streamlines 
program administration at the federal, state, and local levels, 
and allows for greater coordination and collaboration among 
federal, state, and local programs.
     New Universal Program Structure: The Workforce 
Investment Fund includes a new formula for state and local 
areas consistent with the program's universal service 
structure. The formula is based on four factors: the number of 
individuals ages 16 through 72 in the civilian labor force; the 
number of unemployed individuals ; the number of individuals 
who are experiencing long term unemployment defined as 15 weeks 
or more; and the number of disadvantaged youth ages 16 to 24. 
The program's structure:
            Allows governors to reserve up to 10 percent to 
        carry out statewide activities, 10 percent of which may 
        be reserved for Rapid Response Activities that provide 
        assistance to local areas experiencing mass layoffs or 
        plant closings.
            Minimizes winners and losers by including a minimum 
        and maximum change in states' and local areas' 
        allotment percentages and a small state minimum 
        allotment.
            Allows the Secretary to reserve one-half of 1 
        percent of the total appropriation to carry out 
        evaluations and technical assistance. This change 
        allocates an overwhelming majority of federal funds to 
        state and local areas that are empowered to get 
        Americans back to work, and away from bureaucrats at 
        the Department of Labor.
            Allows the Secretary to set aside 2 percent of the 
        funds to target employment and training services 
        directly to Indian tribes and related organizations.
            Limits the administrative activities of state WIBs 
        to 5 percent and local WIBs to 10 percent, ensuring 
        that most state and local funds are spent on workforce 
        investment activities that directly benefit unemployed 
        and underemployed workers.
            Authorizes level funding, based on the FY 2012 
        budget, for the Workforce Investment Fund for fiscal 
        years 2013 to 2018.
     State and Local Focus on Special Populations: The 
bill requires state and local WIBs to detail how they will 
serve dislocated workers (including displaced homemakers), low-
income individuals (including recipients of public assistance 
such as those enrolled in the Supplemental Nutrition Assistance 
Program), long-term unemployed individuals (including 
individuals who have exhausted entitlement to state and federal 
unemployment compensation), English learners, homeless 
individuals, individuals training for nontraditional 
employment, youth (including at-risk youth and out-of-school), 
older workers, ex-offenders, migrant and seasonal farmworkers, 
refugee and entrants, veterans (including disabled and homeless 
veterans), and Native Americans. This change ensures that all 
states and local areas are working to improve workforce 
services to special populations, instead of relying on small, 
targeted national programs to accomplish this goal.
     Elimination and Consolidation of Ineffective and 
Duplicative Programs: The bill eliminates and consolidates more 
than 35 existing job training programs that support similar 
activities to aid individuals in finding and retaining 
employment. The programs include: (1) WIA Adult; (2) WIA Youth; 
(3) WIA Dislocated Workers; (4) Wagner-Peyser (Employment 
Services); (5) H-1B Job Training Grants; (6) SNAP Employment 
and Training; (7) Senior Community Service Employment Program; 
(8) Environmental Workforce Development and Job Training 
Grants; (9) Women in Apprenticeship and Nontraditional 
Occupations; (10) Veterans Workforce Investment Program; (11) 
WIA National Emergency Grants; (12) Community-Based Job 
Training Grants; (13) Migrant and Seasonal Farmworkers Program 
(U.S. Department of Labor); (14) Reintegration of Ex-Offenders; 
(15) Native American Employment and Training; (16) Grants to 
States for Training for Incarcerated Individuals; (17) 
YouthBuild; (18) Youth Conservation Corps; (19) Second Chance 
Act Prisoner Reentry Initiative; (20) Refugee and Entrant 
Assistance--Targeted Assistance Grants; (21) Refugee and 
Entrant Assistance--Social Services Program; (22) Refugee and 
Entrant Assistance--Targeted Assistance Discretionary; (23) 
Workforce Innovation Fund; (24) Green Jobs Act; (25) National 
Institute for Literacy; (26) WIA Pilot and Demonstration 
Projects; (27) Disabled Veterans Outreach Program; (28) Local 
Veterans Employment Representatives; (29) Homeless Veterans 
Reintegration Program; (30) Transition Assistance Program; (31) 
Employment Service Statistical Programs; (32) Youth Opportunity 
Job Grants; (33) Projects with Industry; (34) State-Supported 
Employment Services Program; (35) Migrant and Seasonal 
Farmworkers Program (U.S. Department of Education); (36) 
Recreational Programs; and (37) In-Service Training of 
Rehabilitation Personnel.

Strengthening business engagement in state and local workforce 
        decisions

    The Workforce Investment Improvement Act maintains the 
long-standing position that the nation's workforce investment 
system can only be successful in building the skills of 
jobseekers and helping them secure employment if it is closely 
linked with employers. The bill puts the business community, 
the job creators, in the driver's seat, and strengthens 
business-led workforce investment boards to ensure the system 
is demand-driven and focused on training individuals for jobs 
that exist and are growing in the state and local area.
     Stronger Business-led Boards: The bill strengthens 
the presence and participation of the business community on 
state and local WIBs by requiring business leaders, including 
those representing in-demand industries, to make up a two-
thirds majority on the boards. Business leaders currently have 
a simple majority on the boards. This change ensures strategic 
planning focuses on the jobs that are being produced and 
identifying the gaps in the workforce to train individuals to 
fit those needs.
     Stronger Business Focus: The bill requires state 
WIBs to develop strategies across local areas that meet the 
needs of employers, and ensures local WIBs provide employment 
and training activities that meet the needs of employers and 
enhance communication, coordination, and collaboration between 
in-demand industries and small businesses with the workforce 
investment system.
     Relevant to Businesses: The bill requires state 
and local WIBs to detail how they will more fully engage 
businesses in workforce investment activities, how they will 
meet the needs of businesses in the state and local area, and 
how they will develop industry/sector partnerships that 
encourage industry growth and improve worker training. The bill 
also includes the attainment of industry-recognized credentials 
as a performance outcome.

Increasing state and local flexibility and reducing administrative 
        overhead

    The Workforce Investment Improvement Act recognizes that 
state and local areas should have maximum flexibility to design 
programs and initiatives best suited to their workers, 
businesses, and workforce development partners. Though WIA 
pushes state and local areas to develop business-friendly, 
customer-centric initiatives, the current system imposes 
hundreds of heavy-handed mandates, including who can serve on 
state and local boards, which have created paperwork and 
compliance burdens. The bill streamlines the law's governance 
system, reducing bureaucracy and maximizing resources for 
unemployed and underemployed workers.
     Smaller State and Local Boards: The bill 
restructures state and local WIBs by removing all federal 
requirements on board membership, except business and economic 
development representation and chief elected officials at the 
state level and business representation at the local level. 
Governors and chief elected officials have the power to appoint 
the remaining one-third membership of each respective board, 
which may include members of the state legislature and 
representatives of youth organizations, community colleges, 
labor unions, community-based organizations, veterans service 
organizations, and One-Stop partners. This change dramatically 
reduces the size of the boards, making them more manageable and 
focused on strategic decisions.
     Review of Outdated State Policies: The bill 
requires state WIBs to review and develop statewide policies 
and programs that support comprehensive workforce development 
systems, including determining whether they should consolidate 
additional job training programs into the Workforce Investment 
Fund.
     Simplified Program Administration: The bill 
authorizes states to develop and submit unified state plans 
and, if they choose, to consolidate additional federal job 
training and social services programs into the Workforce 
Investment Fund. This further reduces inefficiencies in the 
administration of employment and training programs at the state 
and local levels and creates a unified workforce and economic 
development system. The programs include: (1) programs 
authorized under Titles I and II of the WorkforceInvestment 
Act; (2) programs under the Trade Adjustment Act; (3) the National 
Apprenticeship Act; (4) Community Services Block Grants (CSBG); (5) 
Temporary Assistance for Needy Families (TANF); (6) programs under 
state unemployment compensation laws; (7) work programs under the Food 
Stamp Act; (8) the Community Development Block Grant (CDBG); and (9) 
Economic Development programs.
     Promoting Local Flexibility: The bill eliminates 
the requirement in current law that local WIBs give priority to 
low-income individuals. This change gives local areas 
additional flexibility to determine how best to get all 
unemployed Americans back to work and is consistent with the 
bill's intent to create workforce development programs that 
benefit all job seekers.
     Modernizing and Creating Regional Approaches to 
Job Creation: The bill eliminates the grandfather provisions in 
current law that allow certain state and local entities similar 
to WIBs and One-Stop Career Centers that were in existence 
prior to 1998 to remain in place. It requires state WIBs to 
designate local workforce investment areas, taking into 
consideration existing labor market areas and economic 
development regions. It removes barriers that are preventing 
the ability for states to implement a regional approach to 
providing services by ending duplicative and overlapping 
service delivery areas.

Supporting education and training opportunities for all adults, 
        dislocated workers, and youth

    The Workforce Investment Improvement Act removes barriers 
in current law that prevent unemployed and underemployed 
workers from accessing important workforce development 
services. According to the Bureau of Labor Statistics, there 
are more than 3.7 million job openings across the country 
because many employers are unable to find skilled workers. The 
legislation supports states and local areas in developing 
workforce development services that are in-demand and tailoring 
services to individuals that meet the needs of each worker.
     Dedicated Funds for Training: The bill requires 
local WIBs to reserve a percentage of funds, as specified by 
the board, to carry out training activities for job seekers. 
This change addresses the concern that a significant portion of 
employment and training funds are currently spent on 
infrastructure and administrative costs. The reservation 
ensures job training is a priority for the workforce investment 
system.
     Direct Access to Training: The bill combines 
``core services'' and ``intensive services'' into a new 
category of ``work ready services,'' which will allow 
individuals to receive the services that best meet their needs 
quickly. This change eliminates the cumbersome ``sequence of 
services'' process individuals must go through to access 
training under current law.
     Reducing Burdensome Requirements: The bill allows 
states to determine what standards will be required for 
eligible training providers, streamlining the bureaucratic 
requirements that have forced many community colleges and other 
training providers out of the system. It also permits local 
areas to contract directly with community colleges and other 
institutions of higher education to provide specialized group 
training programs designed for employers who are looking to 
hire several workers with a particular skill. The legislation 
allows local WIBs to develop and implement industry and sector 
partnerships to aid in aligning resources and training efforts 
among multiple firms.
     Reforms the Job Corps Program: The bill 
restructures Job Corps to ensure career and technical education 
and training is geared toward in-demand occupations and 
disadvantaged youth receive a regular high school diploma and/
or a recognized postsecondary credential that prepares them for 
employment in the global economy. It establishes a new 
performance accountability and management system; requires the 
Secretary to provide technical assistance to low-performing 
centers, and requires all grantees to re-compete for funding, 
ensuring grantees are high-quality and have expertise in 
serving disadvantaged youth. Adopting a proposal included in 
President Obama's FY2013 budget, the legislation closes 
persistently low-performing centers, so limited taxpayer 
dollars are invested in a more effective program. These changes 
ensure at-risk youth become more employable, responsible, and 
productive citizens.

Improving services at One-Stop Career Centers and promoting innovation

    The Workforce Investment Improvement Act responds to the 
changing U.S. economy. States and local workforce boards should 
have the tools to implement and continuously improve workforce 
programs, including those at the 3,000 One-Stop Career Centers, 
to keep pace with the dynamic real time evolution of local and 
regional economies. The legislation supports the innovative 
approaches taking place at the state and local levels by 
maintaining and strengthening the One-Stop Career system, 
without authorizing new and duplicative programs that empower 
the Secretary to pick winners and losers.
     Strengthening One-Stop Career Centers: The 
legislation requires state WIBs to describe how they will 
encourage regional cooperation within the state and foster 
communication and partnerships with nonprofit organizations to 
enhance the quality of services available to workers. The bill 
requires each mandatory partner program to contribute a portion 
of their administrative funds toward infrastructure funding. 
This change ensures all organizations are paying a fair share 
for the physical structure and administrative costs to One-
Stops, ensuring employment and training dollars are spent on 
direct services for individuals.
     In-Demand Occupations: The bill requires local 
WIBs to conduct and regularly update workforce research and 
regional labor market analysis. This analysis is used to 
determine the immediate and long-term skilled workforce needs 
of in-demand industries and small businesses, as well as the 
knowledge and skills of the workforce in the area to address 
critical skills gaps between employers and job seekers.
     Reducing Barriers to Employment: The bill requires 
states to set aside 2 percent of their Workforce Investment 
Fund to provide job training services to individuals with 
barriers to employment. These competitive grants to local WIBs 
and/or non-profit or for-profit organizations provide 
additional assistance to local areas to support hard-to-serve 
individuals, including individuals with disabilities and at-
risk youth, obtain the skills necessary to get a job. These 
changes use the expertise and knowledge of the statewide 
workforce investment system to serve individuals who have 
barriers to employment, instead of continuing to support 
national programs operating outside of the WIA system. The bill 
provides maximum flexibility to state and local areas to 
identify the targeted population they aim to assist and develop 
workforce development programs to address their unique needs. 
It also requires eligible grantees to demonstrate their 
capacity to achieve the best results for individuals with 
employment barriers and reimburses programs on their ability to 
achieve specified performance outcomes and criteria, 
established by the governor.
     Increased Use of Technology: The bill encourages 
state and local WIBs to use technology to facilitate access of 
workforce development services in remote areas. The legislation 
allows state and local WIBs to disseminate information not only 
in writing, but also electronically, to ensure full 
transparency of their actions and intentions.
     Better Services for Individuals with Disabilities: 
The bill requires state and local WIBs to describe how they 
will serve the employment and training needs of individuals 
with disabilities and stipulates that local WIBs are to work 
with the area's disability community to make available 
comprehensive, high-quality services to individuals with 
disabilities.

Ensuring accountability for the use of taxpayer funds

    The Workforce Investment Improvement Act ensures taxpayer 
funds are spent effectively and efficiently, and workforce 
development programs are helping Americans get back to work. 
Federal job training programs have a myriad of performance 
measures, many of which do not address whether or not an 
unemployed or underemployed worker received the appropriate 
training and secured employment in a particular field. As such, 
there is little information available to federal, state, and 
local policymakers on whether federal programs are making a 
difference in local communities. The legislation responds to 
last year's Government Accountability Office (GAO) report on 
multiple employment and training programs and takes a number of 
important steps to provide a clear picture as to the true 
effectiveness of federal job training programs.
     Protecting Taxpayers: The bill requires state and 
local WIBs to give priority to placing participants in private 
sector employment, instead of continuing to grow the size of 
government at all levels. It also requires local WIBs, in 
consultation with their chief elected officials, to designate 
or certify One-Stop Career Center operators through competitive 
processes. This change eliminates the authority for public, 
government-led consortiums of boards and One-Stop partners to 
automatically manage the centers. The legislation also makes 
state and local WIBs responsible for the use and management of 
employment and training funds spent in their area.
     Common Performance Measures: The bill rewrites the 
accountability system included in current law to create common 
performance measures for the Workforce Investment Fund, and the 
Adult Education and Vocational Rehabilitation programs, to 
decrease burdensome administrative reporting requirements. 
Common measurements include the number and percentage of 
participants entering and retaining unsubsidized employment in 
the field in which the individual received training and 
obtaining recognized postsecondary credentials, including 
industry-recognized credentials. The legislation also:
            Requires state and local WIBs to disaggregate 
        performance data to identify how particular populations 
        are served.
            Allows governors to add additional performance 
        measures for use within their states.
            Eliminates the unreliable customer satisfaction 
        measure as a required performance measurement, but 
        allows state and local WIBs to continue to use it if 
        they choose.
            Requires the Secretary to reduce funding for those 
        states that fail to meet performance measures for two 
        consecutive years.
            Requires local WIBs to develop a reorganization 
        plan if they fail to meet performance measures for two 
        consecutive years. Currently, the reorganization plan 
        is allowed under the law, but it is not mandatory.
            Requires governors to reduce funding for those 
        local WIBs that fail to meet performance measures for 
        three consecutive years.
       Transparency in Results: The bill requires state 
and local WIBs to report additional information to improve 
federal, state, and local efforts to better measure program 
performance and validate worker outcomes. Included in this 
reporting are common measurements to compare the number of 
individuals who receive work-ready and training services and 
successfully exit, or complete, such services. The bill also 
requires states to maintain a central repository of policies 
related to access, eligibility, and availability of services 
electronically.
     Program Evaluations: Consistent with the recent 
GAO finding, the bill requires the Secretary to conduct an 
independent evaluation of all workforce development programs 
and activities at least once every five years. The evaluations 
must be contracted out through grants, contracts, or 
cooperative agreements. The results of the evaluations must be 
made publicly available.
     Training Providers: The bill requires state WIBs 
to set eligibility criteria for training providers that take 
into account the performance of providers and whether the 
training programs relate to occupations that are in-demand.

Enhancing adult education and vocational rehabilitation services

    The Workforce Investment Improvement Act reauthorizes the 
Adult Education program, which provides funds to states to 
assist adults without a high school diploma to become literate 
and obtain the knowledge and skills necessary for postsecondary 
education and/or employment. The bill makes the following 
changes to the program:
     Increases the focus of adult education programs on 
the delivery of the basic skills of reading, writing, speaking, 
and math, and encourages integrated education and workforce 
development programs.
     Ensures instructional practices are evidence-based 
to provide the highest return on federal investments.
     Enhances delivery of services through the use of 
technology, including distance education, to improve the 
professional development of trainers and the delivery of 
instruction to participants.
     Requires better coordination with the business 
community and the workforce investment system.
     Measures performance using the common performance 
measures outlined for all workforce investment programs to 
provide national, state, and local leaders with the data needed 
to make informed decisions.
    The Workforce Investment Improvement Act reauthorizes the 
Rehabilitation Act of 1973, which provides vocational 
rehabilitation (VR) services to assist individuals with 
disabilities prepare for, obtain, and retain employment. The 
bill makes the following changes:
     Streamlines bureaucracy by redesignating the 
commissioner of the Rehabilitation Services Agency as a 
director, removing the requirement for Senate confirmation, and 
encouraging better collaboration for individuals with 
disabilities.
     Requires coordination between VR and services 
provided under the Assistive Technology Act.
     Includes in the state plan an assessment of 
transition services provided through the VR system and how 
those services are coordinated with services under the 
Individuals with Disabilities Education Act (IDEA).
     Includes in the state plan strategies the state 
will use to address the needs identified in the assessment of 
transition services described above.
     Requires states to use one-half of 1 percent of 
their VR funding to award grants to businesses in partnership 
with other entities to create practical job and career 
readiness and training programs, and provide job placements and 
career advancement.
     Requires states to reserve 10 percent of their 
formula grant funds to provide transition services to students 
with disabilities served under IDEA as they prepare to move out 
of school to postsecondary education, employment, or 
independent living.
     Measures performance using the common performance 
measures outlined for all workforce investment programs to 
provide national, state, and local leaders with the data needed 
to make informed decisions.
    Both the Adult Education and VR programs are mandatory 
partners in the One-Stop Career system and will contribute a 
portion of their administrative funds to the delivery 
infrastructure based on the state's determination. The bill 
limits the portion of administrative funds VR programs are 
required to contribute to the proportionate use of the One-
Stops by the programs in the state.

                            Committee Views

                              INTRODUCTION

    In May 2012, the U.S. unemployment rate stood at a 
staggering 8.2 percent, continuing a devastating trend of 
unemployment topping 8 percent for 40 consecutive months. At a 
time when millions of Americans are desperate for jobs, our 
nation needs a dynamic, results-oriented job training system 
that meets the needs of workers and helps local communities 
respond to an ever-changing labor market.
    In 1998, Congress passed the Workforce Investment Act (WIA) 
to give job seekers access to important employment services, 
including resume assistance, career counseling, skills 
assessments, labor market information, and specialized 
training, to help them get back to work. In the decade since 
the last reauthorization of the law, our economy has changed 
dramatically. In 1998, the federal government was running a 
budget surplus, unemployment was less than 5 percent, there was 
virtually no inflation, and workers were experiencing solid 
growth of monthly and yearly income. Today, our country 
continues to run annual trillion dollar deficits; we have an 
historic $15 trillion national debt; the unemployment rate has 
been greater than 8 percent for 40 straight months; there have 
been growing concerns about rising inflation, and many workers 
have seen stagnant wages.
    Instead of responding to the changing needs of American 
workers and employers in the global economy, the current 
workforce development system is broken and stuck in the past. 
Less than half of the individuals who access services through 
the current workforce system get a job after taking advantage 
of job search, communication and interviewing skills 
development, on-the-job-training, and other employment 
services. Worse, only 20 percent of workers actually receive 
training services that can provide them with important skills 
necessary to succeed in the workplace. According to the U.S. 
Department of Labor, 3.7 million jobs remain unfilled despite 
nearly 13 million unemployed workers. Employers largely 
attribute this discrepancy to the lack of a skilled workforce--
the so called ``skills gap''--and many workers admit they 
struggle to find essential training for available jobs. In 
spite of the best intentions to establish a unified workforce 
development system 14 years ago, employers and state and local 
leaders still grapple with a bureaucracy that squanders 
taxpayer resources, stifles innovation, and stands in the way 
of the help and training workers need to get back on their 
feet.
    The problems in the system haven't gone unnoticed. In 
January 2011, the U.S. Government Accountability Office (GAO) 
released a report that found the federal government administers 
roughly 47 separate and distinct job training programs across 
nine agencies, costing taxpayers $18 billion annually. The 
report found many of these programs overlap, and few have been 
evaluated for efficacy. In his 2012 State of the Union address, 
President Barack Obama called on Congress to ``cut through the 
maze of confusing [job] training programs'' crippling workers' 
ability to gain the skills employers need. A Wall Street 
Journal editorial on May 9, 2012, noted ``a federal job 
training program that puts people back to work is hard to 
find.''
    The House Committee on Education and the Workforce believes 
that the nation's economic situation is the number one issue 
facing our country and is working to create a workforce 
development system that serves all Americans. H.R. 4297, the 
Workforce Investment Improvement Act of 2012, provides 
America's workers with a more dynamic, flexible, and effective 
network of job training and education services. It empowers 
employers to strategically lead the system to meet the needs of 
in-demand industries, reins in federal and state bureaucracy, 
and develops a more transparent and accountable performance 
system that ensures a return on taxpayer investments.

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

Workforce development programs

    In January 2011, the U.S. Government Accountability Office 
(GAO) released a report entitled, Multiple Employment and 
Training Programs: Providing Information on Colocating Services 
and Consolidating Administrative Structures Could Promote 
Efficiencies. For fiscal year 2009, the GAO identified 47 
employment and training programs across nine different federal 
agencies spending approximately $18 billion on employment and 
training services. This represents an increase of three 
programs and $5 billion since fiscal year 2003. Forty-four of 
these programs were found to overlap with at least one other 
program and only five of the 47 programs had conducted impact 
studies evaluating whether the services they provide improved 
employment outcomes. In addition, 23 of the programs did not 
claim to conduct any type of study that reviewed performance.
    The committee supports a comprehensive statewide workforce 
investment system that serves all Americans, regardless of age 
or economic situation. The committee believes the current 
system with separate funding streams, many (but not all) of 
which were catalogued by GAO, results in administrative 
inefficiencies at the federal, state, and local levels, and 
causes confusion for workers struggling to access important 
services necessary to help them get a job. Several of the so-
called national programs, created at the urging of specific 
populations outside of statewide workforce development systems, 
largely duplicate the employment and training services provided 
through the nation's 3,000 one-stop career centers and are too 
small to have a significant national bearing. As a result, our 
nation's current job training system diverts direct services 
and limited resources away from unemployed and underemployed 
workers to unnecessary bureaucracy. The committee believes it 
is the federal government's responsibility to eliminate waste, 
fraud, and abuse of taxpayer dollars and to make the tough 
choices necessary to streamline ineffective and duplicative 
federal programs. A failure to act when confronted with such 
compelling evidence of waste would be indefensible.
    At an October 4, 2011 hearing before the Subcommittee on 
Higher Education and Workforce Training entitled, ``Modernizing 
the Workforce Investment Act: Developing an Effective Job 
Training System for Workers and Employers,'' Kristen Cox, 
executive director of the Utah Department of Workforce 
Services, outlined the problems inherent in the current 
workforce investment system:

          The current design of the public workforce investment 
        system is a maze of individual programs and funding 
        streams with various mandates attached to each program. 
        It is then the expectation of the states to manage 
        through these mandates and bureaucracy and provide 
        individuals and businesses with the employment and job 
        training services needed, thus contributing to the 
        improvement of the national economy. Just meeting 
        individual program requirements, providing fiscal 
        stewardship over each individual funding stream, 
        tracking outcomes and results for individual programs, 
        and implementing a business-friendly, customer-centric 
        model around targeted program mandates is extremely 
        inefficient by diverting finite resources from actual 
        employment and job training services.

    Mr. Bert ``Van'' Royal, owner of Magnolia Point Realty in 
Green Cove Springs, Florida, echoed this sentiment from the 
perspective of the local business community and workers. In 
testimony before the subcommittee at a May 11, 2011 hearing 
entitled, ``Removing Inefficiencies in the Nation's Job 
Training Programs,'' he stated:

          The GAO report referenced here today describes a 
        plethora of federal job training and employment 
        programs. While all of them were likely created with 
        the best of intentions, it is virtually impossible for 
        businesses, particularly small businesses, and job 
        seekers to know about and navigate the services of that 
        many programs. We need a system that is simple to 
        understand and easy to use.

    In order to ensure our nation's workforce investment system 
is producing results for all job seekers and employers, H.R. 
4297 eliminates and consolidates 37 ineffective and duplicative 
employment and training programs, 29 of which were identified 
by the GAO report, and creates a single Workforce Investment 
Fund (WIF). The new flexible program assists states and local 
workforce investment boards in developing a comprehensive 
workforce development system administered through existing one-
stop career centers that will get Americans back to work. The 
new WIF streamlines the confusing maze of job training 
programs, decreases administrative overhead, and better 
coordinates adult, unemployed, and youth programs. Importantly, 
the new structure will maintain and improve workforce 
development services offered to all Americans, including those 
currently receiving services under existing workforce 
development programs.
    In a letter to Chairman Kline and Ranking Member Miller 
dated May 7, 2012, the U.S. Chamber of Commerce, which 
represents the nation's job creators, endorsed this important 
step. The organization stated:

          Reauthorization of the Workforce Investment Act (WIA) 
        is long overdue and the Chamber believes H.R. 4297 
        would be an important step toward updating and 
        improving America's workforce and training system. 
        Specifically, this legislation would begin to address 
        the problem of too many duplicative federal training 
        and employment programs. By consolidating programs and 
        providing additional state and local flexibility for 
        the delivery of these services, the Chamber believes 
        more adults and dislocated workers would receive the 
        services they need in order to become--and stay--
        employed.

    The programs and their justifications for elimination and 
consolidation into the WIF include the following:

                        (In alphabetical order)

     Community-Based Job Training Grants. This program, 
which supports workforce training for high-growth/high-demand 
industries through community and technical colleges, has not 
been funded since fiscal year 2010. Further, a 2011 Senate 
Appropriations Committee report stated other significant 
funding sources exist to support community colleges for similar 
endeavors.
     Disabled Veterans' Outreach Program (DVOP). This 
program, which provides funds to support dedicated specialist 
employment positions to primarily serve disabled veterans, is 
duplicative of the local veterans' employment representative 
program. Under a recent analysis, only 17 percent of eligible 
veterans were found to receive ``intensive'' services under the 
DVOP program. In fiscal year 2011, only half of those 
participating veterans with disabilities were employed after 
they exited the program. The program's performance targets for 
fiscal year 2012 are to help even fewer veterans, 42 percent, 
at a time when more servicemen and women are returning home. 
Instead of a separate stand-alone program, H.R. 4297 requires 
state and local workforce investment boards to describe how 
they will furnish employment, training, support, and placement 
services to veterans, including disabled veterans. The bill 
also maintains current law provisions providing a priority of 
service for veterans and eligible spouses in all qualified job 
training programs, including the new WIF.
     Employment Service/Employment Service Statistical 
Program. The Employment Service (ES) program, which is 
authorized under the Wagner-Peyser Act to help job seekers with 
job search assistance, has reported placing a dismal 48 percent 
of participants into employment in 2010, 25 percent of whom did 
not retain employment. For at least the past three years, the 
program has set a low goal of assisting less than half of those 
who participate find employment, ensuring the program meets its 
performance measurements. This low goal is especially 
concerning given the state of our nation's current economy. In 
addition, the program is duplicative of the core and intensive 
services (renamed work ready services) already offered through 
one-stop career centers. The ES Statistical Program, which 
reimburses states for providing data for national statistical 
programs, is duplicative of those statewide activities 
currently funded under the Workforce Investment Act. H.R. 4297 
continues to provide states with funding to carry out statewide 
employment and training activities, which includes the 
collection of accurate workforce and labor market information 
relating to local, regional, and national areas.
     Environmental Workforce Development and Job 
Training Program. This program (formerly known as Brownfields 
Job Training Grants) awards grants to entities to provide 
unemployed and underemployed people living in areas affected by 
solid and hazardous waste with the skills needed to secure 
employment in the environmental field. It has provided little 
return on federal investments, funding 191 job training grants 
over the past 12 years totaling $42 million, yet placing a mere 
7,000 individuals into environmentally-related jobs over the 
same period of time. In addition, the program reports that 
graduates generally pursue three paths after training, with 
only the first focused on the program's mission: (1) employment 
in the environmental field; (2) employment in other fields; or 
(3) further education. Finally, funds can be used for a variety 
of activities not focused on providing direct job training 
services to participants, such as training in First Aid or CPR, 
costs associated with health exams, and transportation.
     Grants to States for Training for Incarcerated 
Individuals. This program, which awards grants to state 
correctional education agencies to assist incarcerated 
individuals in acquiring postsecondary education, counseling, 
and vocational training, did not receive funding in fiscal year 
2012, nor did the Department of Education request funding for 
this program in the president's fiscal year 2013 budget. 
According to the latest Department of Education data, only 26 
percent of participants in this program completed their 
postsecondary education and training requirements. Instead of a 
separate stand-alone program, H.R. 4297 requires state and 
local workforce investment boards to describe how they will 
serve the employment and training needs of ex-offenders.
     Green Jobs Act. This program, which was 
established as a pilot program in 2009 and funded under the 
American Recovery and Reinvestment Act to develop training 
programs and train workers for jobs in a range of ``green'' 
industries, has not been funded since fiscal year 2010. In 
September 2011, the Department of Labor's Inspector General 
(IG) reported that, out of $435.4 million allocated for green 
jobs training programs under the Recovery Act, only $162.8 
million had been expended by grantees. In addition, the IG 
found that grantees reported serving just 52,762 (42 percent) 
of the targeted 124,893 participants and only placed 8,035 
participants out of the targeted 79,854 participants in jobs.
     H-1B Job Training Grants. This program, which 
prepares Americans for high skill jobs, is funded through H-1B 
fees collected from employers when they file applications 
seeking to hire temporary skilled foreign workers. Under this 
program, the Secretary of Labor has discretion to make 
decisions regarding the types of grants that will be made with 
these funds. The Department of Labor's fiscal year 2013 budget 
justifications include no goals associated with this program to 
ensure the grants awarded are actually helping workers obtain 
the skills necessary to compete for these jobs. In addition, 
GAO reports the program uses less than half of its funds on 
actual employment and training activities, with little to no 
information on how the department is spending the remainder of 
the funds. In 2011, grant awardees included $3 million to big 
labor organizations such as the AFL-CIO and $5 million to 
Project Quest, an ``activist organization with ties to radical 
organizations'' which then-Texas Workforce Commission Chairman 
Tom Pauken called ``a complete waste of money.''
     Homeless Veterans Reintegration Project. This 
program, which assists in reintegrating homeless veterans into 
the labor force, is duplicative of the myriad of other 
employment and training programs designed to help veterans. In 
2009, the program offered just 81 one-day or longer community 
events providing social services and job training information 
to homeless veterans. According to GAO, there have been no 
evaluations on how effective these programs are at helping 
eligible veterans enter the workforce. According to the 
Department of Labor's budget documents, the program does not 
provide outcome and performance metrics that are based on the 
focus of the program. These include how many homeless veterans 
entered into the civilian workforce or postsecondary education 
and training programs. Instead of a separate stand-alone 
program, H.R. 4297 requires state and local workforce 
investment boards to describe how they will furnish employment, 
training, support, and placement services to veterans, 
including homeless veterans, and the strategies and services 
that will be used in the state and local area to assist and 
expedite reintegration of homeless veterans into the labor 
force. The bill also maintains current law provisions providing 
a priority of service for veterans and eligible spouses in all 
qualified job training programs, including the new WIF.
     Local Veterans Employment Representative Program 
(LVER). This program, which provides dedicated staff employment 
positions primarily at one-stop career centers to assist 
veterans, has demonstrated poor results. Under a fiscal year 
2009 analysis, only 22 percent of eligible veterans received 
direct ``intensive'' services under the LVER program. In fiscal 
year 2011, only half of participating veterans were employed 
after they exited the program. The program's performance 
targets for fiscal year 2012 are lower, despite increasing 
numbers of servicemen and women are returning home. State and 
local areas also lack sufficient data to determine whether LVER 
or regular one-stop career center staff are responsible for 
delivering services to veterans. Instead of a separate stand-
alone program, H.R. 4297 integrates the LVER program into the 
One-Stop Career system, requiring local areas to hire and 
employ veteran employment specialists to carry out employment, 
training, and placement services for our nation's veterans. 
These specialists will also conduct outreach to employers in 
the area to assist veterans in gaining employment.
     Migrant and Seasonal Farmworkers Program (U.S. 
Dept. of Labor). This program, which provides job training and 
employability development services to migrant and seasonal 
farmworkers, duplicates the effort of the larger WIA programs 
that provide funds to state and local workforce investment 
areas to carry out workforce development activities. Under 
current law, migrant and seasonal farmworkers receive 
employment and training services through the nation's 3,000 
One-Stop Career Centers. According to the Department of Labor's 
program year 2010 quarterly state data reports, more than half 
of individuals considered to be participating in the program 
are not receiving training services and even less are 
completing training once they begin. In 2003, the Office of 
Management and Budget (OMB) found that more than 60 percent of 
the program's participants received only supportive services 
like emergency cash assistance. GAO reports the program has not 
conducted an impact study since at least 2004. Instead of a 
separate stand-alone program, H.R. 4297 requires state and 
local workforce investment boards to describe how they will 
serve the employment and training needs of migrant and seasonal 
farmworkers.
     National Institute for Literacy (NIFL). The 
institute, which is an independent office charged with 
providing national leadership regarding literacy has not 
received funding since fiscal year 2010. In 2010, the Obama 
Administration proposed to eliminate the program, stating: 
``The Administration believes that NIFL's broad mission and the 
lack of clear management oversight have led to a diffuse and 
incoherent system of delivery as well as duplication of efforts 
with other Department of Education and Federal offices.'' In 
addition, nearly half of NIFL's $6.5 million 2009 appropriation 
was targeted to support expenses for personnel and overhead.
     Native American Employment and Training. This 
program, which supports employment and training activities for 
Indian, Alaska Native, and Native Hawaiian individuals, tracks 
only a few outcomes and does not measure whether former 
participants are experiencing wage gains after exiting the 
program. The Department of Labor has set the bar low with a 
putting in a place a goal of finding employment for just 57 
percent for those participating, despite low unemployment 
numbers facing this population. As reported by the GAO, this 
program has not conducted an impact study since at least 2004. 
Instead of a separate stand-alone program, H.R. 4297 requires 
state and local workforce investment boards to describe how 
they will serve the employment and training needs of Native 
Americans. The bill also integrates the program into the 
statewide workforce investment system by requiring the 
Secretary of Labor to reserve up to 2 percent of the Workforce 
Investment Fund to provide employment and training services to 
Indian tribes.
     Refugee Job Training Programs. There are three job 
training programs dedicated to providing employment and 
training services to refugees and new entrants, including the 
Refugee and Entrant Assistance Targeted Assistance Grants, the 
Refugee and Entrant Assistance Targeted Discretionary Program, 
and the Refugee and Entrant Assistance Social Services Program. 
These programs are duplicative of the main workforce investment 
system, which is a universal access system designed to help 
unemployed and underemployed individuals gain the skills 
required by in-demand industries. Instead of separate stand-
alone programs, H.R. 4297 requires state and local workforce 
investment boards to describe how they will serve the 
employment and training needs of refugees and entrants.
     Reintegration of Ex-Offenders. This program, which 
provides grants to serve repeat adult offenders and youth 
involved or at risk of being involved in crime or violence, 
placed a little more than half of individuals into employment 
after participating in the program. The Department of Labor's 
goals for 2013 do not aim to raise the percentages 
substantially, targeting just 59 percent of participants to 
enter employment. In addition, the program costs more than 
$6,681 per person, significantly more money than similar 
programs with similar functions. In 2009, the program utilized 
only 80 percent of its total appropriation toward employment 
and training activities, even though training is integral to 
its stated goal of helping former inmates re-enter society and 
the workforce. Instead ofa separate stand-alone program, H.R. 
4297 requires state and local workforce investment boards to describe 
how they will serve the employment and training needs of ex-offenders.
     Section 231 of the Second Chance Act (Federal 
Prisoner Reentry Initiative). This program, which aims to help 
inmates, juveniles and adults, successfully reintegrate into 
society, utilized only 70 percent of its funds to focus on 
employment and training activities and has not conducted an 
impact study as reported by the GAO. In addition, under a 2010 
analysis, the Department of Justice's Inspector General found 
that the Office of Justice Programs did not adequately define 
key terms essential for determining whether program goals were 
met, did not require grantees to identify baseline recidivism 
rates needed to calculate changes in recidivism, and did not 
analyze performance measurement data. Instead of a separate 
stand-alone program, H.R. 4297 requires state and local 
workforce investment boards to describe how they will serve the 
employment and training needs of ex-offenders.
     Senior Community Service Employment Program 
(SCSEP). This program supports employment of older workers by 
providing part-time, paid community service positions, and 
work-based training for unemployed, low-income individuals age 
55 and older. In program year 2012, it placed less than half of 
program participants into employment and, of those, only 65 
percent retained employment. In addition, the six-month average 
earnings for program participants was $7,000, while it cost 
more than $6,000 to serve each participant in the program. In 
January 2012, the Department of Labor added a new performance 
metric to the program to require grantees to measure the number 
of participants who enter into volunteer service. Though this 
metric will likely produce dramatic improvements in the 
program's performance, it is contrary to the program's goal to 
get older Americans into paid positions. Finally, the 
president's FY 2013 budget proposal requests to move the SCSEP 
program to the Department of Health and Human Services (HHS) 
Administration on Aging, confirming the administration's new 
focus for SCSEP on community service, not job training 
services. Instead of a separate stand-alone program, H.R. 4297 
requires state and local workforce investment boards to 
describe how they will serve the employment and training needs 
of dislocated and older workers.
     Supplemental Nutrition Assistance Program--
Employment and Training (SNAP E&T). This program, which 
supports employment and training for SNAP (formally Food Stamp) 
participants, includes job search, resume assistance, job 
training, and work experience, all of which are duplicative of 
the activities funded under the existing workforce investment 
system. Nearly 43 million individuals receive SNAP benefits, 
making a large share of low-income families eligible for 
employment and training services. In 2009, however, only 6.8 
percent of eligible SNAP recipients participated in the SNAP 
E&T program. Since 2008, federal law has required the Secretary 
of Agriculture to monitor state SNAP E&T programs to measure 
their effectiveness. In 2012, the administration finally 
proposed to establish a standard set of measurements and 
require annual reporting, though the rule would not become 
effective until fiscal year 2015, essentially permitting seven 
years without performance outcomes. In addition, under current 
regulations, participants are allowed to be reimbursed under 
SNAP E&T for costs relating to job retention, including driver 
education, testing fees, and union dues. This is an attempt by 
the administration to support its big labor agenda. There is no 
time limit on how long SNAP E&T programs and benefits can be 
provided, essentially allowing individuals to ``look'' for a 
job on the government dime for an indefinite period of time. 
Instead of a separate stand-alone program, H.R. 4297 requires 
state and local workforce investment boards to describe how 
they will serve the employment and training needs of low-income 
individuals, including recipients of public assistance.
     Transition Assistance Program (TAP). This program, 
which helps service-members and their spouses make the initial 
transition from military service to the workplace, has the 
primary goal of providing workshops at selected military 
installations nationwide, not direct work-ready or training 
services. Many of TAP's training workshops are provided by DVOP 
and LVER staff. The department has never assessed the 
effectiveness of the TAP delivery system, instituted an 
evaluation program for trainers, or designed customer service 
metrics to determine the success of the trainers. The program 
does not provide outcome and performance metrics, such as how 
many transitioning veterans entered into the civilian workforce 
or a postsecondary education and training programs. The program 
currently measures only the number of workshops held annually 
and how many veterans participated. Instead of a separate 
stand-alone program, H.R. 4297 integrates the program into the 
statewide workforce investment system by requiring the 
Secretary of Labor to reserve a portion of funds to provide 
Military Transitional Assistance to furnish counseling, 
assistance in identifying employment and training 
opportunities, and help in obtaining employment and training to 
members of the armed forces who are being separated from active 
duty.
     Veterans Workforce Investment Program. This 
program, which provides services to assist with reintegrating 
eligible veterans into employment, duplicates the effort of the 
larger WIA programs that provide funds to state and local 
workforce investment areas to carry out workforce development 
activities. Under current law, veterans receive a priority of 
service at local One-Stop Career Centers for employment and 
training services. In fiscal year 2011, the Secretary of Labor 
repurposed this program to provide services that lead to green 
jobs as outlined under the Green Jobs Act, which is currently 
under investigation by the Inspector General for poor job 
placement results. In addition, in the president's 2013 budget 
request, he proposes to eliminate the program citing that, over 
the past five years, the cost per placement of a participant 
into employment has continuously grown. Only 4,600 veterans 
participated in this program in fiscal year 2010 at a cost of 
more than $2,000 per participant. This is more than double any 
other veteran job training program. Instead of a separate 
stand-alone program, H.R. 4297 requires state and local 
workforce investment boards to describe how they will furnish 
employment, training, supportive, and placement services to 
veterans.
     WIA Adult. This program, which provides funds to 
state and local workforce investment boards to serve 
individuals ages 18-72 with employment and job training 
services, has had a poor record of actually training 
participants for jobs in in-demand industries.
    According to the Department of Labor's detailed annual 
analysis of the program, only 160,000 individuals between April 
1, 2010 and March 31, 2011 received training services, and only 
59 percent of those individuals received a credential. In 
addition, 25 percent of individuals who were trained were also 
counted as being trained under the WIA Dislocated Worker 
program. The Department of Labor touts that between April 1, 
2010 and March 31, 2011, it ``served'' more than 7 million 
adults under this program, yet according to the more detailed 
analysis by the department, the number is closer to 1.2 
million. Out of the 1.2 million individuals who exited the 
program during the above time frame, less than half entered 
employment after the first quarter and only 268,000 retained 
employment in the 2nd and 3rd quarters.
     WIA Dislocated Worker. This program, which 
provides funds to state and local workforce investment boards 
to serve individuals ages 18-72 whose jobs have been terminated 
or who have been laid off, has poor results and a poor track 
record of training individuals for employment. According to the 
Department of Labor's detailed annual analysis, only 129,000 
individuals between April 1, 2010 and March 31, 2011 received 
training services. In addition, 25 percent of individuals who 
were trained were also counted as being trained under the WIA 
Adult program. The Department of Labor touts that between April 
1, 2010 and March 31, 2011, it ``served'' more than 1.3 million 
dislocated workers under this program. According to the more 
detailed analysis by the department, the number is closer to 
639,000. Out of the 639,000 individuals who exited this program 
during the above time frame, only 343,000 entered employment 
after the first quarter and only 129,000 retained employment in 
the 2nd and 3rd quarters. Instead of a separate stand-alone 
program, H.R. 4297 requires state and local workforce 
investment boards to describe how they will serve the 
employment and training needs of unemployed workers, including 
displaced homemakers.
     WIA National Emergency Grants. This national 
program, which provides funding to state and local workforce 
investment boards to assist them in responding to significant 
dislocation events, is duplicative of the underlying activities 
funded under the larger WIA system. Under current law, states 
are required to reserve a portion of their funds to carry out 
Rapid Response activities to help dislocated workers and 
employers respond to layoffs and other major events affecting 
state and local areas. Instead of continuing to allow the 
Secretary of Labor choose who gets national dislocated worker 
funds (which can delay important decisions when money is 
limited), H.R. 4297 provides more money to the state and local 
level, giving officials on the ground the ability to quickly 
respond to emergencies.
     WIA Pilots and Demonstration Projects. This 
program, which funds national pilot, demonstration, and 
research projects, allows the Secretary of Labor to fund 
projects that are priorities of the administration. Past 
projects funded under this section of the law have included the 
Workforce Innovation Fund and the Green Jobs Act. Under current 
law, a ``gold standard'' evaluation was supposed to be 
conducted more than 10 years ago to evaluate WIA programs. The 
latest announcement from the Department of Labor is that this 
study needs an additional four years before it can be 
completed. In addition, the Obama Administration's fiscal year 
2013 budget proposes the elimination of the program.
     WIA Youth. This program, which serves 
disadvantaged youth ages 16-21 with education attainment, job 
training, and employment services, has inflated performance 
data and a poor track record of helping at-risk youth obtain 
occupational skills for full-time employment. The Department of 
Labor touts that between April 1, 2010 and March 31, 2011, it 
``served'' more than 279,000 youth under this program. 
According to the more detailed analysis by the department, the 
number is closer to 129,000. Out of the 129,000 participants 
who exited the program, only 32,000 were placed in employment 
and only 13,000 were placed in education. According to GAO, 
five federal youth programs provide employment and training 
services to disadvantaged youth, which spend nearly $4.1 
billion. Collectively, the federal government operates more 
than 50 major federal programs for youth. States, counties, 
cities, school districts, and nonprofits also operate programs 
focused on improving outcomes for disadvantaged youth. Because 
of the fragmentation of youth programs at the national, state, 
and local levels, federal youth programs lack any type of 
coordination with state or local programs, provide many of the 
same services, and share similar goals. Instead of a separate 
stand-alone program, H.R. 4297 requires state and local 
workforce investment boards to describe how they will serve the 
employment and training needs of youth, including out-of-school 
youth and at-risk youth.
     Women in Apprenticeship and Nontraditional 
Occupations (WANTO). This program, which promotes the 
recruitment, training, employment, and retention of women in 
apprenticeship and nontraditional occupations, was proposed for 
elimination under the president's fiscal year 2013 budget 
request. The administration found the WANTO program is too 
small to have a meaningful bearing on the number of women 
participating in registered apprenticeship programs, and grants 
are given to small community-based organizations that do not 
have the ability to directly report performance results. In 
program years 2009 and 2010 combined, six grantees had a target 
of 300 placements into registered apprenticeship, yet only 60 
placements were made. In addition, the program is duplicative 
of the existing and larger Registered Apprenticeship program. 
Instead of a separate stand-alone program, H.R. 4297 requires 
state and local workforce investment boards to describe how 
they will serve the employment and training needs of 
individuals training for nontraditional employment.
     Workforce Innovation Fund. This program, which 
provides funds to state and local workforce investment boards 
for ``innovative'' activities to increase employment and 
training activities, duplicates the effort of the larger WIA 
programs that provide funds to state and local workforce 
investment areas to carry out workforce development activities. 
As the program was created through the appropriations process 
and is still in its infancy, it has no proven results despite 
costing taxpayers close to $200 million. Instead of a separate 
stand-alone program, H.R. 4297 allows states to use employment 
and training funds to provide incentive grants to local areas 
for exemplary performance on localperformance measures and 
grants states wide latitude to develop and administer workforce 
programs.
     YouthBuild. This program, aims to help at-risk 
youth ages 16 to 24 with obtaining a general educational 
development (GED) or high school diploma while also attaining 
skills in the construction industry, has poor results. As of 
March 31, 2010, the Department of Labor reported that less than 
half of the enrolled participants complete or ``exit'' the 
program (12,483 enrollees compared to 5,975 exiters). The 
program has also not met its performance goals for placement or 
retention. Slightly more than 40 percent of youth who exited 
the program were placed in jobs or other educational programs 
compared to the goal of 70 percent. Only 64 percent of youth 
attaining placement retained employment or stayed in school 
compared to the goal of 75 percent. The cost per participant in 
the program has increased by more than 50 percent over the last 
two years. In 2010, the program served only 9,847 youth for a 
cost of $10,409 per participant. The department estimates that 
the number of youth served by the program in 2012 will decline 
to 5,210, resulting in a cost of $15,300 per participant.
    In contrast, other youth programs are a fraction of the 
cost. The Department of Labor's IG estimates that 20 percent of 
participants served by the program may be ineligible to 
participate, and $5.7 million of direct program costs were 
expended on these potentially ineligible participants. Also, 
the Inspector General determined the department lacks effective 
grantee oversight: seven grantees could not demonstrate that 
they met the 25 percent matching funds requirement, 10 grantees 
enrolled ineligible youth, and 140 participants did not earn 
industry-recognized credentials due to two grantees not 
providing any type of certification to students after 
completing training. According to GAO, five federal youth 
programs provide employment and training services to 
disadvantaged youth, which spend nearly $4.1 billion. 
Collectively, the federal government operates more than 50 
major federal programs for youth. States, counties, cities, 
school districts, and nonprofits also operate programs focused 
on improving outcomes for disadvantaged youth. Because of the 
fragmentation of youth programs at the national, state, and 
local levels, federal youth programs lack any type of 
coordination with state or local programs, provide many of the 
same services, and share similar goals. Instead of a separate 
stand-alone program, H.R. 4297 requires state and local 
workforce investment boards to describe how they will serve the 
employment and training needs of youth, including out-of-school 
youth and at-risk youth.
     Youth Conservation Corps. This program, which 
provides summer employment for youth ages 15 through 18 and 
work experience on public lands, is duplicative of the current 
workforce investment system, including Job Corps and other 
targeted youth programs. As reported by the GAO, this program 
has not conducted an impact study since at least 2004. Instead 
of a separate stand-alone program, H.R. 4297 requires state and 
local workforce investment boards to describe how they will 
serve the employment and training needs of youth, including 
out-of-school youth and at-risk youth.
     Youth Opportunity Grants. This program, which aims 
to increase the long-term employment of youth who live in high-
poverty areas with education attainment, employment, and 
training assistance, has not been funded since 2003.
    Five additional programs are consolidated in the vocational 
rehabilitation program outlined under Title V of the Act.

State and local workforce investment board membership

    The bill amends the membership requirements of state and 
local workforce investment boards to ensure the system is 
demand-driven and closely linked to employers.
    Under current law, state and local workforce boards must 
adhere to a number of federal mandates, almost 40 in total, 
dictating everything from how many people must serve on the 
board to who nominates each of the representatives. As a 
result, many of the current workforce board representatives are 
government employees administering federally funded programs. 
This federal interference in local decision-making has caused 
workforce boards to become bloated and unwieldy, making 
strategic planning difficult and limiting a board's ability to 
respond quickly to changing workforce and industry needs.
    During the legislative hearing on April 17, 2012, entitled, 
``H.R. 4297, the Workforce Investment Improvement Act of 
2012,'' Laurie S. Moran, president of the Danville Pittsylvania 
Chamber of Commerce and chair of the National Association of 
Workforce Boards (NAWB), explained the need for a streamlined 
board and increased business leadership:

          We believe that the workforce development system 
        should be governed by effective business-led workforce 
        investment boards that make data-driven decisions. 
        Business-led boards are in the best position to 
        understand the dynamics of local economies and labor 
        markets. They possess the innate ability to determine 
        where investment of monies committed to workforce 
        development will support and contribute to the success 
        of dynamic regional labor markets. . . . We also 
        support a reduction in the size of the workforce 
        investment boards, which we believe will help to 
        attract higher caliber private sector board members. 
        For boards to have the greatest productivity and 
        creativity with participation by all members, boards 
        must be manageable in size. We appreciate H.R. 4297 
        strengthening the business engagement in state and 
        local workforce decisions.

    With a growing skills gap standing between workers and 
available job opportunities, the workforce investment system 
must reflect the expertise and needs of the nation's job 
creators. H.R. 4297 strengthens the role of employers by 
requiring a two-thirds business majority on both state and 
local workforce investment boards and removing nearly all 
federal requirements on board membership. This dramatically 
reduces the size of the boards, making them more manageable and 
focused on strategic decisions.
    Similar to current law, governors would retain the right to 
expand state board membership beyond business and economic 
development representation and chief elected officials. Chief 
elected officials would retain the authority to appoint local 
board membership beyond business representation. Such members 
could include members of the state legislature and 
representatives of youth organizations, community colleges, 
community-based organizations, and One-Stop partners. During 
markup, the committee adopted an amendment offered by Rep. 
Susan Davis (D-CA), as amended, to add veterans service 
organizations as allowable members of state and local boards.

State workforce investment board functions and state plans

    The bill amends the required functions of state workforce 
investment boards. It requires states to review and develop 
statewide policies and programs in the state that support a 
comprehensive statewide workforce development system, including 
determining whether the state should consolidate additional 
programs into its Workforce Investment Fund. State boards are 
also tasked with developing strategies across local areas that 
meet the needs of employers and support economic growth in the 
state; identifying and disseminating information on best 
practices for effective operation of One-Stop centers; and 
ensuring the appropriate use of funds for statewide employment 
and training activities.
    H.R. 4297 eliminates the grandfathering provisions that 
allow states to use entities in existence prior to the 
enactment of the Workforce Investment Act of 1998 in place of 
state workforce investment boards. The committee notes that 
state boards are an important component of the reforms 
underlying WIA, and this change is intended to ensure state 
boards, with their enhanced functions, are established and 
business-driven. The bill also allows the state board to hire 
staff to assist in carrying out its functions.
    The legislation also revises the WIA planning cycle to 
require state plans be submitted every three years instead of 
every five years. This is intended to ensure state plans are 
dynamic documents that are regularly updated to reflect 
changing economic situations and state and local priorities. 
The committee believes this change will not create an undue 
burden on states because the submission of a new plan simply 
requires reviewing and updating the previous plan if 
significant changes are not warranted.
    While creating a more simple and universal structure, the 
committee believes the workforce development system must meet 
the needs of certain populations. Therefore, H.R. 4297 requires 
states to develop targeted plans to serve special populations, 
including dislocated workers, low-income individuals, English 
learners, homeless individuals, individuals training for 
nontraditional employment, youth, older workers, ex-offenders, 
migrant and seasonal farmworkers, refugees and entrants, 
veterans, and Native Americans. During markup, the committee 
adopted an amendment offered by Rep. Bobby Scott (D-VA) to 
require states to address the employment barriers facing long-
term unemployed individuals, including those who have exhausted 
state and federal unemployment compensation.
    The committee recognizes the obligation states have in 
providing services to individuals with disabilities in a manner 
consistent with the requirements of civil rights laws, such as 
the Americans with Disabilities Act and sections 504 and 508 of 
the Rehabilitation Act of 1973. These laws are crucial to 
protecting the rights of individuals with disabilities to 
participate fully in society. In H.R. 4297, the committee 
reaffirms this obligation by including requirements for state 
plans to ensure the rights of individuals with disabilities are 
protected, and reasonable accommodations are provided so 
individuals with disabilities can fully participate in the 
programs and services supported under this Act, and not just 
physically access them.
    State workforce investment boards, as a condition of 
receiving funds, are required to detail the strategies and 
services that will be used in their area to assist at-risk 
youth and out-of-school youth in acquiring the education and 
skills, credentials, and employment experience to succeed in 
the workplace. These services include: training and internships 
in in-demand industries, dropout recovery activities designed 
to lead to the attainment of a regular high school diploma, and 
activities combining remediation of academic skills and work 
experience with linkages to postsecondary education.
    The committee seeks to make the entire workforce investment 
system more demand-driven and responsive to the needs of 
employers. By doing so, the workforce system will train workers 
for available jobs in in-demand sectors of the economy. 
Therefore, H.R. 4297 requires states to include in their plans 
a description of any programs and strategies the states will 
utilize to meet the needs of businesses in the states. These 
include convening industry or sector partnerships to address 
the immediate and long-term skill needs of the workforce in in-
demand industries. During markup, the committee adopted an 
amendment by Rep. Joe Heck (R-NV) ensuring states also meet the 
needs of small businesses.
    The committee notes that, while strategic planning and 
delivery of services most appropriately belongs with local 
areas, the One-Stop delivery system created under WIA would be 
improved with greater continuity of services within states. As 
a result, H.R. 4297 includes new functions for the state board 
regarding statewide policies for the one-stop career center 
system. These include the development of criteria for and 
issuance of certifications of one-stop centers, allocation of 
one-stop infrastructure funding, and approaches to facilitating 
equitable and efficient cost allocation in the one-stop 
delivery system. The establishment of state-level criteria for 
one-stop centers should lead to more consistent and better 
performance within states.

Local workforce investment board functions and local plans

    The committee strongly supports the governance structure of 
local control embodied in the Workforce Investment Act. The 
committee believes that important employment and training 
decisions are best developed and administered at the local 
level, closest to the business community and workers. H.R. 4297 
maintains this important concept by driving more authority and 
funding to local workforce investment boards; at the same time, 
the legislation recognizes the nation's workforce development 
system must change if it is to remain relevant and responsive 
to our economic challenges.
    While states are permitted to engage in regional planning 
and cooperation among local areas that serve a single labor 
market area, economic development region, or other appropriate 
contiguous sub-area of a state, the law's grandfathering 
provision stifles such innovation. Thisclause allows local 
areas in existence prior to 1998 to remain in existence, which has 
prevented many states from developing a workforce investment system 
that best correlates with their regional economy. H.R. 4297 repeals the 
grandfather clause and allows governors to designate local workforce 
investment areas based on a series of considerations that align these 
areas with economic development and regional labor markets.
    As Oklahoma Deputy Secretary of Commerce for Workforce 
Development Norma Noble outlined in her written testimony 
during the hearing the committee held on April 17, 2012 
entitled, ``H.R. 4297: The Workforce Investment Improvement Act 
of 2012'':

          Integrating workforce development and educational 
        opportunities through a governor-led state-regional 
        framework offers the greatest potential for economic 
        expansion and industry competitiveness, while providing 
        job growth, stability and career advancement 
        opportunities for workers. H. R. 4297 is establishing 
        this framework. It provides governors the authority and 
        flexibility to design a delivery system that reflects 
        the economy of the state and neighboring communities 
        including the unique dynamics of industries and the 
        workforce.

    Under H.R. 4297, local boards are required to conduct a 
workforce needs analysis of their region, which will aid in 
determining those industries that are hiring and growing, and 
the types of skills and training they will need from the area's 
workforce to meet that demand. The bill requires local boards 
to use this analysis to direct employment and training funds 
and to reserve a certain percentage of funds for training 
services. This provides local areas with much needed 
flexibility and decision-making power to determine their own 
region's priorities while quickly reacting to the workforce 
training needs of area residents. For far too long, our 
nation's workforce investment system has not focused adequate 
resources on providing direct training services to unemployed 
and underemployed workers. Only 20 percent of WIA participants 
actually receive training services that can provide them with 
important skills necessary to succeed in the workplace. This 
provision ensures local boards are targeting funding to 
training individuals for in-demand occupations and preparing 
workers for the jobs of today and tomorrow.
    Similar to the state plan requirement, H.R. 4297 requires 
local areas to include in their plans a description of the 
strategies and services that will be initiated in the local 
area to engage employers in workforce development activities to 
ensure local workforce investment activities remain demand-
driven and responsive to changing employer needs. Under the 
leadership of Rep. Heck, the bill requires local areas to 
engage small employers, as well. The bill requires local boards 
to develop industry-sector partnerships to better coordinate 
and align resources. The committee encourages local areas to 
initiate other employer-focused efforts such as career ladder 
programs, utilization of business intermediaries, and 
coordination with economic development activities. These 
strategies and many others could help local areas ensure the 
One-Stop system contributes to the economic growth of local 
areas.
    Current law requires each local area to have a youth 
council to advise the local board on activities related to 
youth. The committee understands these councils have been 
ineffective in some areas and burdensome to create and operate. 
Maintaining participation by parents, youth, educators, and 
other groups has proven difficult. The committee believes local 
areas should have the option to create such councils if they 
add value and benefit services to youth in the area.
    Under WIA, states have the authority to use entities in 
existence prior to the enactment of WIA in place of local 
boards. This grandfathering provision is repealed under H.R. 
4297 to ensure the most effective local boards are in place. 
Further, the local workforce investment planning cycle is 
reduced from five years to three years to be consistent with 
the state planning cycle and to promote using the plan to 
address changing economic circumstances and priorities.
    Just as states are required to describe in their plans how 
they will address the needs of individuals with disabilities 
consistent with civil rights laws, local areas also must 
provide services to individuals with disabilities in a manner 
consistent with the requirements of civil rights laws, such as 
the Americans with Disabilities Act and sections 504 and 508 of 
the Rehabilitation Act of 1973. To that end, the bill includes 
the same requirement for local plans as for state plans.
    Similarly, local boards are required to address in their 
plans how they will serve at-risk and out-of-school youth in 
acquiring the education and skills, credentials, and employment 
experience necessary to succeed in the workforce. The committee 
encourages local areas to develop strategies that focus on high 
school dropout recovery efforts and attainment of regular 
secondary school diplomas. Local boards are also required to 
develop targeted plans to serve special populations, including 
dislocated workers, low-income individuals, English learners, 
homeless individuals, individuals training for nontraditional 
employment, youth, older workers, ex-offenders, migrant and 
seasonal farmworkers, refugees and entrants, veterans, and 
Native Americans. Rep. Bobby Scott (D-VA) was successful in 
adding long-term unemployed individuals, including those who 
have exhausted state and federal unemployment compensation, to 
this list.
    The committee recognizes that our nation's economy is 
dynamic, and the types of growing industries are constantly 
changing. While a number of select industries are in-demand in 
most communities across the country, such as health care, the 
decision on what industries to attract to a particular state or 
local area and what professions workers should be encouraged to 
enter into should remain with state and local leaders.

One-Stop delivery system

    One of the hallmarks of the workforce development system is 
the approach that encourages the development of comprehensive 
efforts to improve services for employers and job seekers. This 
effort seeks to increase access to federal and state resources 
available to help individuals obtain the training of their 
choice at one centralized location.
    Currently, 19 federal programs operate as mandatory partner 
programs within the One-Stop delivery system. In addition to 
the programs authorized under Title I of WIA, the programs 
include career education, veterans' employment and training 
programs, welfare-to-work, employment services, vocational 
rehabilitation, trade adjustment assistance, and adult 
education, to name a few. These programs must make their 
services available through the One-Stop centers. In addition, 
optional partner programs may provide their services through 
the system if the local board and the chief elected official 
for the area permit the inclusion and the partner program 
agrees to such participation.
    H.R. 4297 removes from the mandatory One-Stop partner list 
those programs that are consolidated into the main Workforce 
Investment Fund. The bill includes additional optional partner 
programs, which include employment and training programs 
operated by the Small Business Administration, employment and 
training services provided by public libraries, and programs 
serving individuals with disabilities. The addition of these 
programs enhances opportunities to coordinate employment and 
training services, particularly for special populations.
    Under H.R. 4297, the current provisions regarding the 
establishment of One-Stop delivery systems are moved from 
Chapter 5 (Comprehensive Adult Employment and Training 
Activities) to what is now Subtitle B (Statewide and Local 
Workforce Investment Systems) so as to reinforce the creation 
of a One-Stop delivery system independent of WIA employment and 
training funds. Incorporating these provisions in the general 
workforce investment system subtitle is intended to clarify the 
requirements applicable to the One-Stop delivery system.
    The One-Stop centers across states have not provided 
consistent services to consumers, whether job seekers or 
employers. Therefore, H.R. 4297 requires all One-Stop operators 
to be designated through a competitive process, removing the 
provision that allows three or more One-Stop partners to form a 
consortium to operate a center, and infusing higher quality 
operators throughout the system. In addition, the bill calls 
for the state board to establish procedures and criteria for 
certifying One-Stop centers and issue certifications based on 
those procedures and criteria. The criteria include state-
developed minimum standards relating to the scope and degree of 
service integration achieved by the centers involving the 
programs provided by the One-Stop partners. The effect of 
certification is to make One-Stop centers eligible for 
infrastructure grants. The intent of the certification process 
is to promote consistency and quality in the services provided 
by One-Stop centers in a state. No One-Stop is required to 
obtain certification, and local boards retain authority over 
the identification of One-Stop operators.
    Under current law, One-Stop centers must provide access to 
the programs and activities carried out by partner programs. 
Each partner must make available to clients the core services 
applicable to their program. There must be at least one 
comprehensive One-Stop center in each local area, which can be 
supplemented through a network of affiliated sites if the 
mandatory partners do not fully co-locate. One-Stop partner 
programs are required to contribute a portion of their funds 
for the operation of the One-Stop delivery system. The 
appropriate portion is to be determined through the Memorandum 
of Understanding (MOU) development process at the local level. 
However, this process has resulted in uncertainty of funding 
and contention among program operators and has forced WIA 
funding streams to pay for a large share of infrastructure 
costs, thus reducing funds available for training.
    In order to provide a stable source of infrastructure 
funding on a statewide basis, H.R. 4297 requires each of the 
One-Stop partner programs to provide a portion of program funds 
to the governor, who then will allocate such funds to the local 
areas for the certified One-Stop centers in the state. The 
portion of funds to be provided by each One-Stop partner will 
be determined by the governor in consultation with the state 
board. The committee believes the decision on the amount of 
such funding is best determined within each state depending on 
each state's needs and delivery systems, and arbitrary limits 
or floors should not be established at the federal level.
    When determining the amount of contribution from each 
program, the governor must consider the proportionate use of 
the One-Stop centers by the programs and cost of administering 
the programs not related to One-Stop centers. The 
infrastructure funding must come from the programs' 
administrative funds and are subject to the programs' 
administrative cost limits. All mandatory partner programs, 
except vocational rehabilitation and unemployment insurance, 
have administrative caps that are either established in statute 
or negotiated as part of a grant. For instance, career and 
technical education currently has a 5 percent administrative 
cap, and veterans programs' administrative limits are 
negotiated as part of the grant. For federal mandatory spending 
programs, which include Temporary Assistance for Needy 
Families) and vocational rehabilitation services, the programs' 
contributions cannot be in excess of their proportionate use of 
the centers. The committee expects the portion of funds 
provided by mandatory partners for infrastructure costs will be 
a very small percentage of the programs' funds, proportionate 
to the programs' contribution to and use of the One-Stop 
system.
    The governor is required to distribute the funds to 
certified One-Stop centers based on a formula the state board 
will develop. The formula shall include factors the state 
determines are appropriate, which may include the number of 
certified centers in a local area, the population served by 
such centers, and the centers' performance.
    While the infrastructure funding provided through these 
grants will address the primary common costs of operating One-
Stop centers, some common costs will remain. Thus, partner 
programs and local boards will continue to develop MOUs to 
specify how such costs would be paid. Remaining common costs 
include personnel and the cost of providing work-ready services 
applicable to participants for each program. Since the basic 
infrastructure costs would already be addressed, these 
remaining cost items should be easier to resolve.

Providers of training services

    WIA created an eligible training provider list to give 
customers flexibility in selecting a provider that meets their 
individual training needs. However, current eligible training 
provider provisions include requirements that have proven to be 
overly burdensome with respect to the specific information 
required and the scope of the reporting (i.e. reporting 
performance outcomes for all students in a training program and 
not just WIA-funded students). Rather than increasing consumer 
choice as intended, the current requirements have had the 
unintended effect of reducing customer choice, as many 
qualified providers, including community colleges, choose not 
to participate in the system.
    H.R. 4297 gives states the authority to determine what 
provider information and data will be required to establish a 
list of eligible training providers. This allows for 
flexibility to design procedures that respond to the needs of 
each state. To ensure the quality of providers, states must 
establish criteria that include the performance of providers 
with respect to WIA's performance indicators. States may 
include other factors appropriate to ensure the quality of 
services and the accountability of providers, including whether 
providers of training allow participants to attain a 
certification or credential, or demonstrate mastery. In 
addition, states are required to ensure providers submit 
appropriate information to assist consumers in selecting 
training programs. Such state-developed criteria will be 
established with the input of local areas and training 
providers.
    The intent is to ensure the retention of key elements 
promoting consumer choice and provider accountability while 
allowing states to simplify the process so more qualified 
training providers will participate.
    The committee encourages states to examine whether 
providers of training offer the opportunity to obtain industry-
recognized credentials. The committee recognizes that such 
certifications or credentials may allow states to validate the 
training providers offer, and the attainment of a certification 
or credential may increase individuals' ability to find good 
jobs that utilize such training.
    The committee remains committed to protecting the 
confidentiality of all personally identifiable information 
about students, and believes such information must not be 
released without permission of students or their parents, as 
appropriate. Therefore, H.R. 4297 specifies that the new 
training provider eligibility criteria must comply with the 
Family Educational Rights and Privacy Act.
    Certified apprenticeship programs are automatically 
qualified to serve as training providers. In addition, H.R. 
4297 retains language from current law allowing governors to 
create separate requirements for providers of on-the-job 
training or customized training, since these are tailored 
specifically to one employer or occupational field.

Employment and training activities

    H.R. 4297 amends Chapter 5 of WIA to establish a 
comprehensive program of employment and training activities for 
individuals ranging from ages 16 to 72. As discussed earlier in 
the report, the bill consolidates 37 employment and training 
programs, including the three separate WIA funding streams (WIA 
Adult, WIA Dislocated Worker, and WIA Youth) and the Employment 
Services funding stream under the Wagner-Peyser Act. These 
current programs have separate funding formulas, eligibility 
criteria, performance measures, reporting requirements, and 
other elements, although they largely serve the same 
populations. Under current law, Employment Services are to be 
co-located with One-Stop centers. However, contrary to the 
intent of WIA, some areas have retained separate Employment 
Services offices. Consequently, unnecessary duplication of 
services and confusion for customers (both job seekers and 
employers) has resulted. Consistent with the principles of 
program integration underlying WIA, this consolidation will 
simplify and enhance the delivery of services to adults and 
youth and allow states and local areas to tailor services to 
meet the needs of their local communities.
    H.R. 4297 changes the title of Chapter 5 from ``Adult and 
Dislocated Worker Employment and Training Activities'' to 
``Employment and Training Activities. Throughout the bill, 
references to the separate adult, dislocated worker, and youth 
funding, which are being consolidated, are eliminated to 
reflect the universal nature of the Workforce Investment Fund.
    H.R. 4297 authorizes the Secretary of Labor to reserve half 
of 1 percent of the amount appropriated for the WIF to carry 
out national activities, with not less than 50 percent to be 
used for technical assistance and evaluations. During the 
markup, the committee adopted an amendment by Rep. Kristi Noem 
(R-SD) to authorize the secretary to reserve up to 2 percent of 
the amount appropriated to make grants to, and enter into 
contracts or cooperative agreements, with Indian tribes, tribal 
organizations, Alaska-Native entities, Indian controlled 
organizations serving Indians, or Native Hawaiian organizations 
to carry out employment and training activities. Under the 
amendment, these important programs must adhere to the common 
performance measures.
    The secretary may also reserve up to 28 percent of funds of 
the total amount appropriated to carry out the Job Corps 
program described later in this report. The remaining amount 
would be allotted to states, with up to one-fourth of 1 percent 
reserved for the provision of services in outlying areas.
    H.R. 4297 creates a new formula to reflect the more 
relevant criteria from the funding streams being consolidated 
into the Workforce Investment Fund. The formula is calculated 
by dividing equally the relative number of unemployed 
individuals in a state, the relative number of individuals in 
the civilian labor force in a state, the relative number of 
individuals who have experienced long-term unemployment of 15 
weeks or more in a state, and the relative number of 
disadvantaged youth in a state.
    The bill also contains a provision that holds states 
harmless for one year against what they would have received in 
fiscal year 2012 for the programs under Title I of WIA; Title V 
of the Older Americans Act of 1965; Sections 1-14 of the 
Wagner-Peyser Act; Sections 4103A and 4104 of Title 38, United 
States Code; Section 2021 of Title 38, United States Code; and 
Section 1144 of Title 10, United States Code. For states that 
would receive an increase in 2013 under the new formula, their 
increase is capped at 3 percent. Any funding greater than 3 
percent is redistributed to states that would see a decrease in 
funding under the new formula, which ensures no state will lose 
funds. For fiscal year 2014 and each succeeding year, the 
formula ensures states receive a minimum percentage that is not 
less than 90 percent of the previous year's allotment and a 
maximum percentage of 130 percent of the previous year's 
allotment.
    The committee notes these protections should create more 
stability in funding for states. Currently, the WIA Dislocated 
Worker funding stream has no stop-loss or stop-gain 
protections. While the formula in current law was designed to 
allow funds to flow to those states most in need, there have 
been significant shifts in funding from year to year. As a 
result, states have been unable to plan their programs 
effectively. The new provisions should reduce this instability.
    The formula also includes a small state minimum allotment 
of two-tenths of 1 percent to ensure small states have 
sufficient resources to operate a viable program. Currently, 
both the WIA Adult and Wagner-Peyser formulas include small 
state minimums.
    H.R. 4297 further specifies within state allocation of 
funds. The bill authorizes governors to reserve up to 10 
percent of the state's allotment for statewide activities, 
while under current law WIA Adult programs allow governors to 
reserve up to 15 percent for statewide activities. H.R. 4297 
has a much larger authorized level for appropriations due to 
the consolidation of programs and is comparable to the level of 
resources currently administered at the state level under WIA.
    Under statewide activities, states must use funds to carry 
out rapid response activities to assist local areas that 
experience disasters, mass layoffs, or other events that 
precipitate substantial increases in the number of unemployed 
individuals. States are also required to support the provision 
of work ready services for job seekers in the one-stop delivery 
system; implement innovative programs to meet the needs of 
employers, including incumbent worker training and 
entrepreneurial training; implement strategies and services to 
assist at-risk and out-of-school youth; and conduct evaluations 
of all employment and training services. The bill also allows 
states to spend funds on developing strategies for integrating 
programs and services among One-Stop partners, facilitating 
access to remote areas through the use of technology, and 
incorporating pay-for-performance contracting strategies as an 
element in funding employment and training activities. The bill 
also retains the current law limitation on state administrative 
expenses, which are not to exceed 5 percent.
    Further, governors may reserve up to 2 percent of funds to 
award competitive grants to eligible entities assisting 
individuals with barriers find and retain full-time, 
unsubsidized employment. This new state set-aside provides 
additional support to local areas to assist hard-to-serve 
individuals (ages 16 to 72) in obtaining a regular secondary 
school diploma or its recognized equivalent, industry-
recognized credentials, postsecondary training, and employment. 
The committee believes that, rather than creating separate 
national programs, priorities, and funding streams for 
particular individuals or groups, states should be given the 
flexibility and decision-making power to prioritize funds 
towards the individuals most in need in their communities. 
Unlike the current system in which only a handful of national 
programs targeted to special populations have been evaluated, 
H.R. 4297 requires states to evaluate employment and training 
programs, making it easier for the public to learn whether 
programs are helping workers find a job.
    The remaining overall state allotment is to be allocated to 
local areas within the state. Under the bill, the same formula 
used to distribute funds to states is used to distribute funds 
to local areas, including the stop-loss and stop-gain 
provisions described earlier to stabilize funding. H.R. 4297 
also retains the current administrative cost limit under which 
local areas may not expend more than 10 percent of the 
allocation for administrative costs. The legislation adds a new 
definition of ``administrative costs'' which includes 
expenditures incurred by state and local workforce investment 
boards, direct recipients, local grant recipients, local fiscal 
agents or local grant sub recipients, and One-Stop operators in 
the performance of administrative functions and in carrying out 
activities which are not related to the direct provision of 
workforce investment services (including services to 
participants and employers).
    Under current law, both WIA and the Wagner-Peyser Act 
provide funds for services to connect job seekers with 
available jobs, including job search and placement assistance. 
Regardless of income, all individuals are eligible to receive 
these services. Many One-Stop career centers offer such 
services through self-serve computer stations. Under WIA, these 
are called ``core services'' while under Wagner-Peyser they are 
called ``labor exchange services.'' Although each law has a 
different term, the services are essentially the same. Through 
WIA, two other levels of services also are provided. 
``Intensive'' services include comprehensive assessments, case 
management and one-on-one career counseling, short-term 
prevocational services, and more. ``Training'' services include 
occupational skills, on-the-job, entrepreneurial, customized, 
and other training. Under current law, an individual must 
utilize at least one service in each level before moving on to 
the next level of service. While there is no federally required 
minimum time period for participation in core and intensive 
services before one can access training assistance, some states 
have interpreted current law as requiring all participants to 
participate in core services for a specified period of time 
before being eligible for intensive services, and likewise 
requiring intensive services before training. This has 
sometimes resulted in services being denied or delayed, and 
limited the flexibility of states and local areas in tailoring 
services to meet individual needs.
    To address these issues regarding the ``sequencing of 
services,'' H.R. 4297 combines core and intensive services into 
a new ``work ready'' set of services, effectively nullifying 
the eligibility requirements for proceeding onto the next level 
of services if an individual is determined to be in need of 
those services. The bill incorporates two functions 
specifically identified in the Wagner-Peyser Act to the list of 
allowable work ready services: appropriate recruitment services 
for employers and the administration of the work test for the 
unemployment compensation system. Three new services are added 
to the list, as well: internships and work experience; literacy 
activities relating to basic work readiness, information and 
communication technology literacy activities, and financial 
literacy activities; and out-of-area job search assistance and 
relocation assistance. The committee believes allowing literacy 
activities to be provided as a work ready service, not just a 
training service, will increase access to such services for 
those who need them. The committee also recognizes that common 
among nearly all job seekers is the need to know how to find, 
use, manage, and evaluate information resources efficiently. 
The committee encourages One-Stop centers to offer 
opportunities to acquire skills in the area of communication 
technology literacy.
    Among the types of entities local boards may contract with 
to provide work ready services are public non-profit service 
providers. The committee notes that this language from current 
law should not be construed as limiting eligibility to non-
profit entities that exist solely to provide these types of 
services. In particular, the committee notes a wide variety of 
non-profit entities that may have broader missions but have the 
capacity to leverage funds received throughlocal workforce 
boards, such as public libraries. The committee encourages local areas 
to consider creating relationships with entities such as libraries when 
they already are providing similar services.
    The committee also recognizes private-sector employment 
agencies play an important role in providing employment 
opportunities to America's workforce. The committee encourages 
local boards and one-stop operators to refer to and contract 
with such firms. This will enhance the ability of local boards 
and One-Stop operators to make job placements, especially to 
businesses that do not traditionally use One-Stop services to 
fill vacancies.
    The committee aims to address the unique training needs of 
individuals who are English learners. Therefore, H.R. 4297 
allows occupational skills training to be combined with English 
language acquisition. Integrated training programs that provide 
language instruction in the context of job training have 
demonstrated remarkable employment outcomes for job seekers and 
positive results for employers. These enhancements to training 
opportunities should increase the employment for our country's 
immigrant populations.
    Under current law, the adult funding stream serves all 
adults but prioritizes low-income individuals. H.R. 4297 
removes the priority of service in the rewrite of the Workforce 
Investment Fund. One of the hallmarks of the workforce 
investment system is that it is a universal access program in 
which any American in need of employment and training services 
can receive the education and skills he or she needs to get a 
job. Under the bill, states and local areas must detail in 
their plans how they will serve the needs of all individuals, 
including low-income individuals, dislocated workers, English 
learners, veterans, and others. Instead of setting artificial 
limits on who should receive training, the bill looks to 
increase the amount of training for everyone and allows state 
and local leaders to determine who is most in need in their 
community.
    Training is currently provided primarily through 
``individual training accounts,'' or ITAs. Individuals that 
receive an ITA voucher can choose training courses available 
through eligible training providers. The committee believes 
local areas should have the flexibility to combine funds 
available for training under WIA with other training resources. 
Therefore, H.R. 4297 authorizes local areas to assist 
participants in enhancing these accounts so funds from other 
sources may be included and renames them ``career enhancement 
accounts.'' This is intended to facilitate the acquisition of 
training and maximize the number of individuals that can be 
assisted through training.
    H.R. 4297 permits local boards to award contracts to an 
institution of higher education to facilitate the training of 
multiple individuals in in-demand industries, if such a 
contract does not limit customer choice. This provision allows 
community colleges and other institutions of higher education, 
including proprietary colleges, to provide specialized group 
training programs designed for employers who are looking to 
hire several workers with a particular skill.
    H.R. 4297 adds new activities to the current list of 
permissible activities local areas may carry out. Current 
activities include customized screening and referral services 
for employers and other customized employment-related services 
for employers on a fee-for-service basis. New allowable 
activities include providing customer supports, such as 
transportation and childcare services, for special participant 
populations that face multiple barriers to employment, 
including individuals with disabilities. These supports can 
often contribute to job retention and enhance employment. The 
committee has also heard such populations, especially 
individuals with disabilities, have not been as well served 
through the One-Stop system as Congress intended. The committee 
anticipates this additional assistance to such individuals will 
increase their utilization of the One-Stop delivery system and 
improve the quality of services they receive. In addition, 
employment and training assistance provided in coordination 
with child support enforcement activities of the state agency 
carrying out Title IV-D of the Social Security Act is also 
included as a permissible activity. This coordination is 
intended to facilitate the employment of unemployed or 
underemployed non-custodial parents, thus enabling them to pay 
child support.
    In addition, local areas may engage in activities to 
improve services to businesses, including small employers in 
the local area, and increase linkages between the local 
workforce investment system and employers. Local areas may also 
facilitate remote access to services provided through the One-
Stop delivery system, including facilitating access through the 
use of technology. This is critical for ensuring rural areas 
are served adequately. Local areas may incorporate pay-for-
performance contracting strategies as an element of funding 
employment and training activities to ensure the system is not 
continuing to pay for strategies that have not demonstrated a 
record of success.
    An additional permissible activity for local areas is the 
development and implementation of incumbent worker training 
programs. Under current law, incumbent worker programs are only 
authorized at the state level. Under H.R. 4297, local boards 
may provide incumbent worker training, as long as it is carried 
out in conjunction with the workers' employers for the purpose 
of helping the workers obtain the skills necessary to retain 
employment and avert layoffs. Employers participating in 
incumbent worker training programs are required to pay a 
portion of the costs of training for the incumbent workers. 
State boards, in consultation with local boards, may establish 
the portions, but it cannot be less than 50 percent of the 
total costs. This provision is intended to provide some 
flexibility for the one-stop system to respond to the needs in 
the local area and assist in avoiding potential layoffs. The 
matching requirement is intended to ensure appropriate employer 
commitment to the training program.
    Local areas are required to give priority to placing 
participants into jobs within the private sector. The committee 
believes enhancing private sector business growth and limiting 
the size and scope of the government are the best outcomes for 
American workers and improve our country's economic outlook.
    During markup, the committee adopted an amendment offered 
by Subcommittee Chairwoman Virginia Foxx (R-NC), as amended, to 
require each one-stop career center to employ a veterans' 
employment specialist to help veterans, including those 
returning from Afghanistan and Iraq, find and retain 
employment. These specialists function similarly to the Local 
Veterans' Employment Representatives currently in many one-stop 
centers across the country, and conduct outreach to employers 
as well as provide transition services to those military 
service men and women leaving the armed services. This 
amendment also integrates the Disabled Veterans' Outreach 
Program, the Transitional Assistance Program, and the Homeless 
Veterans Reintegration Project into the Workforce Investment 
Fund; requires state and local areas to detail how they will 
furnish employment and training services to veterans, including 
disabled and homeless veterans; and requires states and the 
Secretary of Labor to measure and report on the outcomes 
achieved by participating veterans disaggregated by local 
communities.

Youth provisions

    According to GAO, more than 50 major programs funded by the 
federal government address at-risk youth in obtaining the 
education and skills they need to succeed in the workforce. 
These programs often lack coordination with each other and have 
not shown desired results at improving outcomes for our 
nation's young people. H.R. 4297 includes several important 
provisions to address the needs of at-risk and out-of-school 
youth. First, state and local workforce investment boards, as a 
condition of receiving funds, are required to detail the 
strategies and services that will be used in their area to 
assist at-risk youth and out-of-school youth in acquiring the 
education and skills, credentials, and employment experience to 
succeed in the workplace. Second, the Workforce Investment 
Fund, as well as the state set-aside for individuals with 
barriers to employment, has reduced age limitations from 18 to 
16 years of age, ensuring youth are eligible for all employment 
and training activities.
    Third, local workforce boards are required to conduct a 
workforce needs analysis and direct funds based on those 
identified as most in need, which include at-risk youth and 
out-of-school youth. This provides local leaders, who best know 
the needs of the community, with flexibility and decision-
making power to determine their own priorities. If local 
officials want to use a significant amount of federal funds for 
youth employment and training services, they can do so.
    Finally, the secretary is required to reserve 28 percent of 
the total amount appropriated to fund a national Job Corps 
program for at-risk youth. H.R. 4297 makes important reforms to 
the program, as outlined below, to ensure these young people 
are receiving high quality instruction and training to obtain 
employment and advance in careers.

Performance accountability system

    According to GAO's report that examined the multiple 
federal job training programs, only five had undergone an 
impact evaluation to determine if the program was meeting the 
needs of individuals it was slated to serve. Without a true 
picture of the effectiveness of job training programs, how can 
federal, state, and local policymakers accurately and quickly 
assist workers in finding a job, help employers in hiring 
skilled workers, and grow our regional economies?
    As Larry Temple, executive director of the Texas Workforce 
Commission, said during a subcommittee hearing on May 11, 2011, 
entitled, ``Removing Inefficiencies in the Nation's Job 
Training Programs'':

          * * * [W]e need to move to an outcome driven system 
        rather than a process driven system. We need to look 
        closely at what works and what does not. We understand 
        accountability and we understand that while the process 
        is important--from the customer's perspective, what is 
        achieved at the end of the day is what constitutes the 
        measure of your work. Far too often these federal 
        programs are measured by the process, not the outcome.

    Since passage of WIA, states and local areas have raised 
concerns about the 17 statutory performance measures applicable 
to formula programs. The current performance measures have been 
perceived as excessive and overly burdensome. In addition, 
questions about the utility of some measures (such as customer 
satisfaction) as federally required measures have been 
questioned.
    To promote consistency in the measures applicable to 
federal employment and job training, H.R. 4297 reduces the 
number of performance measures from 17 to six and applies them 
to all employment and training programs, including the Adult 
Education and Family Literacy Act provisions outlined under 
Title II of WIA and the Amendments to the Rehabilitation Act of 
1973 under Title IV of WIA.
    The core indicators of performance the committee believes 
all employment and training programs should measure include:
           The percent and number of program 
        participants who are in unsubsidized employment for six 
        months after exiting the program;
           The percent and number of program 
        participants who are in unsubsidized employment for a 
        full year after exiting the program;
           The median earnings of program participants 
        a full year after exiting the program compared to their 
        earnings prior to receiving training;
           The percent and number of participants who 
        obtain a recognized postsecondary credential, including 
        an industry-recognized credential or regular high 
        school diploma;
           The percent and number of participants who 
        enroll in an education or training program that leads 
        to a credential and are achieving measureable basic 
        skill gains; and
           The percent and number of participants who 
        obtain unsubsidized employment in the field relating to 
        the training services they received.
    During the markup, the committee adopted an amendment 
offered by Rep. Rob Andrews (D-NJ) requiring all core 
indicators of performance, training services, and discretionary 
One-Stop delivery services to be disaggregated by the targeted 
populations described in the local plan, and requiring states 
to maintain a central repository of policies related to access, 
eligibility, availability of services, and other matters 
approved by the state and local boards. The committee supports 
the intent of the Andrews amendment to enhance accountability 
and identify those groups of individuals whom the workforce 
investment system may not be adequately assisting to find and 
retain employment.
    The committee believes the customer satisfaction measure 
does not provide a uniform standard by which to evaluate 
employment and training programs on a national level. 
Therefore, the bill strikes references to the customer 
satisfaction measure. However, states are explicitly permitted 
to utilize customer satisfaction measures, and the committee 
urges states and local areas to utilize such measures to 
evaluate the effectiveness of their outreach programs and 
engage in continuous improvement.
    Currently, outcomes data is only collected for those 
individuals that register for intensive or training services. 
Individuals accessing only core services are not required to 
register for such services and little information is available 
regarding the employment status of such individuals and the 
benefit of One-Stop services. By requiring all employment and 
training programs to use a common set of performance 
indicators, federal, state, and local policymakers will have an 
accurate and clear picture of what programs are working.
    Under current law, the levels of performance for each 
indicator are negotiated between the Secretary of Labor and 
each state. One concern that has been raised is that these 
negotiations do not sufficiently consider economic conditions 
and the characteristics of the population to be served, thus 
discouraging services to special populations. H.R. 4297 
replaces the current language with a requirement that levels 
must be adjusted based on those factors. The bill also 
identifies the kinds of economic (unemployment rates and job 
losses in particular industries) and participant (indicators of 
poor work history, lack of work experience, disability status, 
low levels of literacy or English proficiency, and welfare 
dependency) characteristics to be considered.
    Amendments to the local performance measures parallel the 
amendments made to the state performance measures. The same 
performance indicators are applied to local areas and the 
levels of performance negotiated between governors and local 
areas are required to be adjusted based on economic conditions 
and the characteristics of the population served.
    In an effort to gauge program efficiency, state and local 
areas will also report:
           The number of individuals who received work-
        ready and training services during the most recent 
        program year, fiscal year, and the preceding five 
        program years; and where the individuals received the 
        training, disaggregated by the type of entity that 
        provided the training.
           The number of individuals who successfully 
        exited work-ready and training services during the most 
        recent program year, fiscal year, and the preceding 
        five program years; and where the individuals received 
        the training, disaggregated by the type of entity that 
        provided the training.
           The average cost per participant of those 
        individuals who received work-ready and training 
        services during the most recent program year, fiscal 
        year, and the preceding five program years; and where 
        the individuals received the training, disaggregated by 
        the type of entity that provided the training.
    State and local performance measures will be negotiated 
every two years.
    Rebecca Metty-Burns, the executive director for the 
division of workforce and economic development at the College 
of Southern Nevada, summarized the importance of this issue in 
her testimony during a committee field hearing in Las Vegas, 
Nevada, on August 30, 2011, entitled, ``Examining Local 
Solutions to Strengthen Federal Job Training Programs'':

          Hold us accountable but have the accountability make 
        sense to the needs of the community and have 
        measurements and outcomes that reflect true progress 
        based on the competencies needed by industry.

    The committee believes that with the new flexibility in the 
use of federal funds envisioned under H.R. 4297 comes 
tremendous responsibility. In no way does this legislation 
constitute a blank check. Unlike the current workforce system 
in which only a handful of programs have been evaluated, H.R. 
4297 establishes common performance measures that will make it 
easier for the public to learn whether programs are helping 
workers find a job, and includes new provisions ensuring 
programs that demonstrate a pattern of failure will lose 
funding.
    Under current law, the secretary may reduce state funds by 
5 percent if the state fails to meet its performance targets 
for two consecutive years. H.R. 4297 requires the secretary to 
reduce state funding by the same percentage and returns those 
funds to the U.S. Department of Treasury. Similarly, a governor 
must take corrective action if a local area fails to meet its 
performance targets for a second consecutive year. If an area 
fails to meet performance for a third year, a governor must 
reduce the amount of the grant based on the degree of failure 
to meet local levels of performance.
    Finally, the bill requires the secretary to use the core 
indicators of performance to assess the effectiveness of 
mandatory partner programs carried out by the Department of 
Labor. This action must be consistent with the requirements of 
the applicable authorizing laws of those programs.

Authorization of appropriations

    H.R. 4297 authorizes appropriations for the Workforce 
Investment Fund for fiscal years 2013 through 2018. The 
committee authorizes $6,292,486,000 for fiscal year 2013 and 
each of the five succeeding fiscal years. This amount is equal 
to the appropriated amount for fiscal year 2012 for Title I of 
WIA; Title V of the Older Americans Act of 1965; Sections 1-14 
of the Wagner-Peyser Act; Sections 4103A and 4104 of Title 38, 
United States Code; Section 2021 of Title 38, United States 
Code; and Section 1144 of Title 10, United States Code.

Job Corps Program

    The committee believes the Job Corps program is in dire 
need of reform. Created in 1965 to provide at-risk youth with 
academic instruction toward the achievement of a high school 
diploma or GED and career training, the program has failed to 
help disadvantaged youth find employment while spending 
billions in limited taxpayer dollars. Through a series of 
investigations conducted over the last four years, the 
Department of Labor's Inspector General (IG) found the 
program's performance data is often inflated and unreliable; 
accused Job Corps centers and their operators of mismanaging 
federal funds and ignoring unhealthy and unsafe living 
conditions for youth; and discovered little federal funding was 
spent to support worker training. The Obama Administration 
agrees Job Corps is in need of restructuring. The Department of 
Labor's FY 2013 Budget Justification includes the following:

         The 2013 Budget launches a reform effort for Job Corps 
        to improve its outcomes and strengthen accountability. 
        Specifically, the Department will close in Program Year 
        2013 a small number of chronically low-performing Job 
        Corps centers, selected using specific criteria that 
        will be shared with the public in advance. While most 
        centers meet program standards, some centers are 
        chronically low-performing based on their educational 
        and employment outcomes, and have remained in the 
        bottom cohort of center performance rankings for many 
        years. Given the resource intensiveness of the Job 
        Corps model, it is not cost-effective to continue to 
        invest in centers that have historically not served 
        students well.

    At a time when the youth unemployment rate continues to 
rise, the committee supports efforts to revamp Job Corps to 
ensure at-risk youth become more employable, responsible, and 
productive citizens.
    Over the last decade, Job Corps has undergone a number of 
evaluations to measure its effectiveness. Many reports found 
the program's benefits to society outweigh its program costs 
(i.e. reduced crime and drug use and increased attainment of 
GEDs). However, these studies also show that program 
participation did not substantially increase earnings, and was 
ineffective in moving participants into full-time employment. 
H.R. 4297 restructures the current program to ensure career and 
technical education and training is geared toward in-demand 
occupations and disadvantaged youth receive a regular secondary 
school diploma and/or a recognized postsecondary credential 
that prepares individuals for employment in the global economy.
    According to the Department of Labor's 2011 Annual 
Performance Report, only 66 percent of Job Corps participants 
entered employment or enrolled in training or postsecondary 
education in 2009. In fact, the program's placement rate, along 
with actual student enrollment, has been on a steady decline 
since 2004. A recent IG audit also found Job Corps lacked 
reliable performance metrics. Among other things, the audit 
found the program inaccurately reported 42.3 percent of its job 
placements, claiming as a ``success'' those instances in which 
students were enrolled in postsecondary education or training 
rather than jobs, and in jobs that required little or no 
previous work-related skills, such as fast food cooks and 
dishwashers. H.R. 4297 establishes a new performance 
accountability and management system under which each center 
must calculate and report on the number and percent of 
enrollees who graduate (defined based on the program's new 
goals) from the center; the percent and number of graduates who 
enter unsubsidized employment related to the training the 
participant received through the center; and the cost per 
successful performance outcome. Similar to current law, the 
bill requires the secretary to annually rank the performance of 
each center and to develop and carry out an improvement plan 
for low-performing centers.
    As President Obama has stated, a number of Job Corps 
centers have consistently ranked in the bottom tier of Job 
Corps centers nationally. With the federal government running 
trillion dollar deficits, the committee must ensure limited 
taxpayer dollars are spent effectively on programs that work. 
H.R. 4297 requires the secretary to prepare a comprehensive 
audit of each Job Corps center using performance and health and 
safety data over the last 10 years, and authorizes the closing 
of those centers that rank in the bottom quintile. Students in 
closed centers will have priority placement in a neighboring 
center, and resources will be reinvested in the program.
    According to recent IG audits, there is widespread 
mismanagement of federal funds and safety and health concerns 
by Jobs Corps operators. H.R. 4297 requires all current 
grantees to re-compete for funding to operate Job Corps 
centers. The bill creates a detailed application in which 
grantees must describe their record of effectiveness in placing 
at-risk youth into employment; describe the strong fiscal 
controls they have in place; and give an assurance they are 
licensed to operate in the state in which the center is 
located, among many common sense measures. The secretary is 
authorized to enter into two-year agreements with operators and 
may extend the agreement for three one-year terms if the 
grantees meet or exceed all of their performance indicators. 
The secretary may not extend the terms if a center's 
performance ranks it in the bottom quintile of all centers 
unless the center has shown significant improvement over the 
last program year. The bill prevents the secretary from 
awarding grants to entities that have been found to have a 
material failure that involves a threat to the health, safety, 
or civil rights of youth or staff or the misuse of federal 
funds. This process removes poor-performing grantees and 
ensures high-quality grantees are adhering to new and stronger 
performance requirements.
    As a national program, Job Corps spends a significant 
amount of taxpayer dollars on administration. The $1.5 billion 
operations budget allocates more than 80 percent ($1.2 billion) 
to center operations, leases, phone and data lines, and 
information technology equipment; 7 percent ($107 million) to 
student pay and home transportation; and only 3.6 percent ($57 
million) to career services. H.R. 4297 sets a 10 percent cap on 
administrative costs for the program, ensuring a greater 
portion of Job Corps funds go to youth employment services, 
including career skills training in in-demand occupations.
    According to the department's budget documents, Job Corps 
cost $29,388 per participant in 2010. However, the IG, GAO, and 
the Office of Management and Budget note this calculation does 
not reflect job placement or training completion outcomes and 
includes students who have dropped out of the program. Based on 
these factors, the program actually costs $42,952 per 
participant, one of the highest participant costs for federal 
programs. H.R. 4297 provides a competitive priority to Job 
Corps center operators who demonstrate they can reduce program 
costs and requires operators to detail in their applications 
how they will reduce costs to save taxpayer dollars.
    As a national program, the secretary and departmental 
employees establish all policies and requirements for Job 
Corps, fostering a lack of coordination with state and local 
workforce initiatives. H.R. 4297 provides the governor of the 
state in which a Job Corps center is located the authority to 
appoint representatives to the Workforce Council, a two-thirds 
majority of whom must be from the business community, and 
requires education and training services to be linked to 
employment opportunities in in-demand industries in the state.

National activities

    The committee believes state and local leaders should be 
driving policies and programs that best meet their region's 
needs, not Washington bureaucrats. To this end, H.R. 4297 
dramatically reduces the role of the federal government in the 
nation's workforce investment decisions. The bill eliminates 
most national activities, choosing to send resources to state 
and local workforce investment boards who know best how to 
administer employment and training programs to unemployed and 
underemployed workers. As stated earlier, during his 2012 State 
of the Union address, President Obama recognized the need to 
consolidate job training programs and called on Congress to 
``cut through the maze of confusing [job] training programs'' 
and create ``one program'' for workers to find the support they 
need. H.R. 4297 moves our country in that direction and helps 
put the American people back to work. This bill will help 
ensure we spend less money on red tape and more on training, 
while also heeding the president's call for consolidation and 
making the system more attuned to the needs of job seekers and 
employers.
    H.R. 4297 requires the secretary to provide technical 
assistance to states that fail to meet performance measurements 
and establish a system through which states may share 
information regarding best practices with regard to the 
operation of workforce investment activities. In addition, the 
secretary, through grants, contracts or cooperative agreements, 
is required to conduct an independent evaluation of the 
programs and activities under this Act at least once every five 
years. The secretary must also conduct an impact analysis of 
the formula grant program by not later than 2014, and then not 
less than once every four years thereafter. All results of 
these evaluations must be made publicly available by posting on 
the department's website.

Administration

    Under current law, the secretary must investigate each 
allegation of violations of the requirements of Title I of WIA. 
This provision is amended to authorize investigations of such 
allegations since it may not be necessary or appropriate to 
conduct an investigation of each one.
    H.R. 4297 prohibits funds from being used to pay the salary 
and bonuses of an individual at a rate in excess of Level II of 
the Federal Executive Pay Schedule. The bill includes general 
authority establishing the Employment and Training 
Administration at the U.S. Department of Labor and requires the 
assistant secretary to be an individual with substantial 
experience in workforce development and workforce development 
management.
    The legislation requires the secretary to submit states' 
quarterly reports to the House Committee on Education and the 
Workforce and the Senate Committee on Health, Education, Labor 
and Pensions to ensure the committees have sufficient 
information to evaluate the program.
    Current law prohibits use of WIA funds for employment 
generating activities, economic development activities, and 
similar activities that are not directly related to training 
for eligible Title I participants. The bill clarifies this 
restriction to encourage closer ties between workforce 
development and economic development activities. The new 
language will only prohibit such activities if they do not 
relate to the entry in employment, retention of employment, or 
increases in earnings.
    H.R. 4297 provides new waiver authority for the secretary. 
The Department of Labor will establish an expedited process for 
extending waivers approved for one state to additional states, 
provided they meet other requirements. In administering the 
waiver process it has been found that some waivers to address 
particular issues appear to be appropriate for all states, but 
under current authority each state must go through a detailed 
application process to receive the waiver. This provision will 
allow the secretary to expedite that process.
    In addition, H.R. 4297 prohibits using funds provided under 
WIA to establish or operate stand-alone fee-for-service 
enterprises that compete with private sector employment 
agencies; this does not include One-Stop centers. Such efforts 
are contrary to the intent of WIA.
    H.R. 4297 includes a provision authored by Rep. Todd Rokita 
(R-IN) directing the secretary to identify how many full-time 
equivalent employees worked on or administered the eliminated 
programs under this Act and, no later than one year after the 
bill's enactment, to reduce the department's workforce by that 
number.

State unified plan

    WIA currently allows states to develop and submit to the 
appropriate secretaries unified plans for two or more programs 
that provide, in part, employment and training activities to 
individuals. H.R. 4297 maintains current law and goes a step 
further in authorizing governors to consolidate those funds 
into the Workforce Investment Fund, with approval from the 
appropriate secretaries. This important, but voluntary, change 
further streamlines administrative costs at the state level in 
those areas, subjecting all state workforce and economic 
development programs to the same performance and reporting 
requirements.
    Ms. Norma Noble, Deputy Secretary of Commerce for Workforce 
Development at Oklahoma WorkForce Solutions, talked about the 
importance of state flexibility during the hearing the 
committee held on April 17, 2012 entitled, ``H.R. 4297: The 
Workforce Investment Improvement Act of 2012:''

          Effective workforce development programs require 
        state and local governments to have the flexibility to 
        provide needed services. Oklahoma embodies this 
        reality. As a state with disparate economic conditions 
        driven by geography, we need the ability to implement 
        regional solutions for regional problems. Today, we do 
        not have that flexibility.

    The committee believes states should have the ability to 
consolidate additional programs not included under H.R. 4297. 
This flexibility ensures taxpayer dollars are not spent 
maintaining an inefficient bureaucracy but instead put toward 
supporting employers and job seekers.

                       TITLE II--ADULT EDUCATION

    The need for an educated populace is critical to our 
success in today's global economy. Individuals without a high 
school diploma or its equivalent, on average, earn almost half 
the salary of the average worker. Employers searching for 
qualified employees over the past decade have noticed an 
increasing trend in the number of employees lacking the basic 
skills needed in the workplace. In addition, the number of 
beginning college students who are required to take basic 
skills courses in reading and math before moving into the 
standard college program continues to increase, jeopardizing 
their success in postsecondary education.
    In reauthorizing Title II, the Adult Education and Family 
Literacy Education Act, of WIA, H.R. 4297 places additional 
emphasis on ensuring states and local providers offer basic 
skills instruction in reading, writing, English language 
acquisition, and math, and integrating those services with 
occupational skills training. Making sure these skills are 
solidly in place for all students is a priority, whether 
English learners, high school dropouts who have not mastered 
these vital skills, or high school graduates who have slipped 
through the cracks in the education system and need additional 
instruction in the basics.

Accountability

    As discussed above, H.R. 4297 requires all adult basic 
education and literacy programs to meet the same set of core 
performance measurements outlined for all employment and 
training activities authorized under this Act. The committee 
believes individuals receiving services aimed at improving 
their language and numeracy skills should be able to use these 
skills in obtaining a regular secondary school diploma or its 
recognized equivalent, obtaining full time employment, 
increasing their average earnings, earning industry-recognized 
credentials, or enrolling in postsecondary education and 
training programs.
    The bill also provides funds for states to use in offering 
eligible providers of adult education technical assistance and 
professional development training on ways to develop, 
implement, and report measurable progress in achieving the 
objectives of this title. States are required to include in 
their state plans how they will evaluate and measure annually 
such effectiveness on a grant-by-grant basis and how they will 
hold eligible providers accountable in improving the academic 
achievement of participants in adult education programs. The 
committee believes cooperation and coordination between state 
and local providers in offering research based instruction in 
reading, writing, English language acquisition, and math will 
ensure participants reach their goals. States are authorized to 
use technical assistance, sanctions, and rewards (including 
allocation of grant funds based on performance and termination 
of grant funds based on nonperformance) to hold local adult 
education providers accountable.

Coordination and integration of services

    The committee believes it is essential for adult educators 
to work closely with state workforce investment boards; state 
agencies of higher education; representatives of business and 
industry; and immigrant assistance organizations, including 
community-based and faith based organizations in providing 
appropriate skill development programs for eligible adults. 
H.R. 4297 encourages state and local leaders to provide adult 
education and literacy activities contextually and concurrently 
with workforce preparation activities and workforce training 
for a specific occupation or occupational cluster. The 
integration of literacy and occupational skills training are 
essential in assisting adults with the transition into 
postsecondary education and careers.

National leadership activities

    The bill authorizes national activities to assist states 
and local providers in developing valid, measurable, and 
reliable performance data, and in using such performance 
information for the improvement of adult education and family 
literacy education programs. The committee supports the 
development of model basic and workplace skills education 
programs, and believes their effective integration with 
employment services are important components of improving the 
delivery of adult education programs. H.R. 4297 also supports 
the development of a more efficient delivery system of 
technology-based, basic skills programs and materials for adult 
reading, writing, English language acquisition, math, and 
family literacy education.
    The bill eliminates the National Institute of Literacy, 
described earlier in this report, due its lack of successful 
impact, duplication of services, and not receiving funding in 
the past two fiscal years.

Authorization of appropriations

    H.R. 4297 authorizes appropriations for Title II at 
$606,294,933 for fiscal year 2013 and each of the five 
succeeding fiscal years. This amount is equal to the 
appropriated amount for fiscal year 2012 for Title II of WIA.

             TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT

    The Wagner-Peyser Act authorizes the current employment 
services system and the employment statistics system. Because 
employment services funding is being consolidated under the 
Workforce Investment Fund and the employment services functions 
are being assumed into the One-Stop delivery system, H.R. 4297 
repeals sections one through 14 of the Wagner-Peyser Act. These 
sections authorize the stand-alone employment services system 
and the separate Employment Services Statistical Program.
    H.R. 4297 amends the current employment statistics system 
authorized under the Wagner-Peyser Act and renames the system 
the Workforce and Labor Market Information System. The 
requirement for the secretary to prepare an annual plan for 
management of the nationwide employment statistics system is 
eliminated. This plan has not proven useful. In place of the 
plan requirement is an authorization for the secretary to 
assist in the development of national electronic tools that may 
be used to facilitate the delivery of work-ready services and 
provide workforce information to individuals through the One-
Stop and other appropriate delivery systems.
    The bill eliminates the requirement for the governor to 
designate a state agency to oversee the labor market 
information system and gives the governor flexibility to 
operate the system as appropriate for the state's delivery 
system. Our rapidly changing economy and labor markets require 
a new, flexible, demand-driven workforce investment system that 
is fully aligned with the state's economic development 
strategies. This system, in turn, requires a broader view of 
workforce, labor market, and economic data and information than 
the traditional labor market information system of the past. 
Governors need the flexibility to determine how this function 
is performed and not be bound by outdated institutional 
arrangements. Through this change, the committee recognizes 
quality workforce information is more important than ever; it 
should be utilized as a tool to drive system investments, 
including types of training needed by individuals to compete in 
local labor markets, the development of targeted high growth 
strategies as part of economic development, and use by 
businesses looking to grow and compete locally and globally.
    Provisions in current law relating to consultations between 
the secretary and state employment statistics officials is 
simplified to provide that the secretary, working through the 
Bureau of Labor Statistics (BLS) and the Employment and 
Training Administration, must regularly consult with 
representatives from the designated state agencies on 
strategies for improving the workforce and labor market 
information system. At least twice each year, the secretary, 
working through BLS, would conduct formal consultations on BLS 
programs with representatives, elected by and from state 
directors affiliated with state entities, from each of the 10 
Department of Labor regions. This formal consultation and 
election process is similar to current law.
    H.R. 4297 eliminates the Employment Service Statistical 
Program, which reimburses states for providing data for 
national statistical programs, as it is duplicative of 
statewide activities currently funded under WIA.

              TITLE IV--REPEALS AND CONFORMING AMENDMENTS

    H.R. 4297 eliminates and consolidates 37 programs and 
creates a new Workforce Investment Fund, a single workforce 
training program for unemployed and underemployed workers. The 
reasons for consolidation are outlined earlier in this report. 
The bill repeals the following programs: WIA Adult, WIA Youth, 
WIA Dislocated Worker, Employment Service, Community-Based Job 
Training Grants, Veterans Workforce Investment Program, Migrant 
and Seasonal Farmworker Program, Native American Employment and 
Training, WIA National Emergency Grants, Reintegration of Ex-
Offenders, Grants to States for Training for Incarcerated 
Individuals, YouthBuild, Youth Conservation Corps, H-1B Job 
Training Grants, Senior Community Service Employment Program, 
Women in Apprenticeship and Nontraditional Occupations, 
Disabled Veterans Outreach Program, Local Veterans Employment 
Representatives, Transitional Assistance Program, Homeless 
Veterans Employment Reintegration Project, Second Chance Act's 
Prisoner Reentry Initiative, Refugee and Entrant Assistance 
Targeted Assistance Grants, Refugee and Entrant Assistance 
Social Services Program, Refugee and Entrant Assistance 
Targeted Assistance Discretionary, WIA Pilot and Demonstration 
Projects, Workforce Innovation Fund, Employment Services 
Statistical Programs, Green Jobs Act, National Institute for 
Literacy, and the Youth Opportunity Job Grants.
    In addition to these programs, the bill amends the 
Environmental Workforce Development and Job Training Program to 
remove references to training to prohibit the Environmental 
Protection Agency from distributing grants for workforce 
training efforts that are duplicative of the workforce 
investment system. H.R. 4297 also amends the Supplemental 
Nutrition Assistance Program's (SNAP) Employment and Training 
provision to provide such services through the statewide 
workforce development system authorized under this Act. State 
and local boards are also required to detail in their plans how 
they will serve the employment and training needs of SNAP 
recipients.

         TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973

    The Rehabilitation Act of 1973 is the nation's major 
program providing comprehensive vocational rehabilitation (VR) 
services to help persons with disabilities become employable 
and achieve full integration into society. The primary program 
within the Act is the state VR program under Title I, which 
provides formula grant funds to states for VR services to 
assist persons with significant disabilities to become employed 
in integrated work settings.

VR programs

    H.R. 4297 makes several significant and important changes 
to the underlying law. In the committee's ongoing effort to 
address the duplication of federal workforce training programs, 
the bill eliminates five programs that are ineffective or 
duplicative of the much larger state grant program, most of 
which are proposed for elimination by the Obama Administration.
    The In-Service Training of Rehabilitation Personnel program 
supports state systems of professional development. The program 
is duplicative of the existing--and larger--training program 
authorized under Section 302 of the Act, and the requirement 
that states provide comprehensive professional development as 
part of their Title I state plans. The administration's fiscal 
year 2013 budget eliminates funding for this small program. The 
Department of Education's budget justifications advocate for 
this elimination ``in order to reduce duplication of effort and 
administrative costs, streamline program administration at the 
federal and local level, and improve accountability.''
    The Migrant and Seasonal Farmworkers program provides 
funding to states to assist individuals with disabilities who 
are migrant and seasonal farmworkers. The program is 
duplicative of the main Title I state grant, which provides 
similar services and serves the same target population. It also 
contains numerous provisions to ensure that state agencies 
reach and serve all individuals with disabilities in the state, 
including minority, unserved, and underserved populations. The 
administration's fiscal year 2013 budget eliminates funding for 
this small program. As with the In-Service Training program, 
the Department of Education is seeking this program's 
elimination ``in order to reduce duplication of effort and 
administrative costs, streamline program administration at the 
federal and local level, and improve accountability.'' The 
program is also producing poor results. During fiscal year 
2009, the 13 states with projects served 189 individuals, 
placing 126 in employment ($17,460 program cost/per placement). 
In contrast, states that did not receive dedicated funding 
served 1,835 migratory workers and placed 1,082 in employment. 
In FY 2008, the 13 states with projects reported placing 55 
percent of those served into employment while states without 
projects reported placing 58 percent into employment.
    The Recreation program provides individuals with 
disabilities inclusive recreational activities and related 
experiences. The program did not receive funding in fiscal year 
2012 and gave out only 16 new grants in fiscal year 2011. As 
the administration stated in its fiscal year 2012 budget 
proposal to eliminate this program, its activities would be 
more appropriately financed by state and local agencies and the 
private sector.
    The Projects with Industry (PWI) program creates and 
expands job and career opportunities for individuals with 
disabilities in the competitive labor market. The program did 
not receive funding in fiscal year 2012. The committee 
believes, however, that direct engagement with industry is 
important to improving employment opportunities for individuals 
with disabilities. To that end, H.R. 4297 requires states to 
set aside at least one-half of 1 percent of their Title I state 
grant funds to award grants to businesses and partnerships 
between businesses and other entities to provide services 
similar to those provided to grantees under the PWI program. 
Integrating these efforts with the main state program will 
strengthen partnerships between industry and the statewide VR 
system.
    The Supported Employment State Grant program provides 
supplemental funding to state VR agencies for providing 
supported employment services for individuals with the most 
significant disabilities. The program duplicates the much 
larger Title I state grant program by providing similar 
services to the same target population. The administration's 
fiscal year 2013 budget eliminates funding for this small 
program. In 2012, the Department of Education stated in its 
budget justifications, ``[B]ecause supported employment is now 
an integral part of the VR State Grants program, the 
Administration believes that there is no longer a need for a 
separate funding stream to ensure the provision of such 
services.'' State agencies are spending a growing portion of 
their main VR program funds to provide supported employment 
services, demonstrating that the Supported Employment State 
Grant program has accomplished its goal.

Transition services

    H.R. 4297 makes significant changes to the underlying law 
to address the need for improved transition services for youth 
with disabilities. The Department of Labor's Office of 
Disability Employment Policy reports that the labor force 
participation rate for people with disabilities was only 21 
percent in May 2012, more than three times lower than the rate 
for people without disabilities. The committee recognizes the 
significant need to improve the transition of youth with 
disabilities from school to postsecondary education and 
employment.
    A 2003 GAO report found poor linkages between schools and 
youth service providers and a lack of community work experience 
impedes the successful transition of youth. Withoutthe 
involvement of agencies that support youth with disabilities, the 
responsibility for transition is left to special education teachers who 
may not have the capacity, training, or access to necessary community 
resources. The involvement of the VR program in transition provides 
students with disabilities and special education teachers with 
assistance, training, and access to community resources that can be 
critical to success. However, many youth with disabilities who are 
eligible for VR services while in high school do not access them 
because they lack knowledge of the program or the program does not have 
the capacity to serve all those who are eligible.
    The committee recognizes state vocational rehabilitation 
agencies currently have an affirmative obligation to provide 
transition services to students with disabilities as they 
prepare to leave secondary education. Despite this obligation, 
the state vocational rehabilitation agencies have not 
sufficiently addressed this important problem. In response to 
the 2003 GAO report, the committee developed a bipartisan 
proposal in the 109th and 110th Congresses to address the 
transition of students receiving services under the Individuals 
with Disabilities Education Act (IDEA) to postsecondary 
education, employment, and independent living. H.R. 4297 
reflects this consensus.
    To improve planning and coordination, the bill requires 
states to address the needs of students with disabilities as a 
part of the comprehensive statewide assessment of vocational 
rehabilitation needs and to describe the methods used to expand 
and improve services to students with disabilities, including 
the coordination of services designed to facilitate the 
transition of such students to postsecondary education or 
employment. The bill also requires states to set aside at least 
10 percent of their formula grants to expand transition 
services. States will be required to use these targeted funds 
to carry out programs or activities to improve and expand 
services that facilitate student transition; improve the 
achievement of post-school goals; support training and 
technical assistance to personnel; support outreach activities; 
and provide vocational guidance, career exploration services, 
and job search skills to students with disabilities.

Administration

    The bill seeks to better align the Department of 
Education's services to individuals with disabilities by 
eliminating bureaucratic hurdles to collaboration. The 
committee believes improved coordination of services will 
further address the challenges youth with disabilities face 
when transitioning out of secondary education and lead to 
better employment and postsecondary outcomes.
    H.R. 4297 changes the position that heads the 
Rehabilitation Services Administration (RSA) within the 
Department of Education from a commissioner appointed by the 
president and approved by the Senate to a director appointed by 
the secretary. The committee notes this is a simple and 
important change to the department's administrative functioning 
that will help make it operate more effectively and ensure a 
consistent policy view exists across the department's programs 
that address the need of individuals with disabilities.
    The Assistant Secretary of Special Education and 
Rehabilitation Services oversees the Director of the Office of 
Special Education Programs and the Director of the National 
Institute of Disability Research and Rehabilitation. The bill 
places the Rehabilitation Services Administration on equal 
footing with those two important offices, and reaffirms the 
importance of coordinating federal policy across these three 
vital offices through the Office of the Assistant Secretary.
    Administration after administration has struggled with 
having two individuals appointed by the president and confirmed 
by the Senate working within the same office. Providing this 
clarity will establish a clear sense of purpose to these 
offices, enabling the department to focus more on providing 
high-quality services to individuals with disabilities.
    Earlier this Congress, Senators Chuck Schumer (D-NY) and 
Lamar Alexander (R-TN) introduced S. 679, the Presidential 
Appointment Efficiency and Streamlining Act of 2011. The bill 
eliminates the requirement of Senate approval of specified 
presidentially appointed positions in federal agencies and 
departments to reduce bureaucracy and improve efficiency. The 
bill as voted out of committee removed the requirement for 
Senate confirmation of the Commissioner of the RSA, reflecting 
bipartisan support for this provision. Unfortunately, the 
provision was removed from S. 679 prior to its approval by the 
Senate as a result of pressure from interest groups. But 
Democrats and Republicans agree that the removal of Senate 
confirmation for the commissioner is a commonsense way to 
provide better and more efficient services to individuals with 
disabilities.

Coordination with the Assistive Technology Act

    When the Assistive Technology Act of 1998 was last 
reauthorized in 2004, Congress made a series of significant 
changes to improve the structure and operation of the program. 
H.R. 4297 ensures state VR programs coordinate and cooperate 
with the lead agency responsible for assistive technology to 
guarantee individuals with disabilities have access to 
assistive technology to improve their educational, employment, 
or independent living opportunities. In addition, the bill 
provides state VR programs the option to coordinate their 
activities with programs authorized under the Assistive 
Technology Act, including device loan, device demonstration, 
device reutilization, and alternative financing programs.

Conclusion

    The Workforce Investment Improvement Act of 2012 embodies 
bold reforms that will better serve unemployed and 
underemployed workers struggling to gain ground in today's 
challenging economy. The bill eliminates 37 ineffective and 
redundant workforce development programs, instead empowering 
state and local leaders to assist workers and job seekers 
through a single, flexible Workforce Investment Fund. The bill 
also provides governors the opportunity to submit a responsible 
plan to consolidate additional programs when such measures 
would better serve workers in creating a seamless, 
comprehensive job training system.
    Unlike the current system in which only a handful of 
programs have been evaluated, H.R. 4297 establishes common 
performance measures that will make it easier for the public to 
learn whether programs are helping workers find a job, and 
ensures those that demonstrate a pattern of failure lose 
funding. To ensure states and local areas are serving all 
Americans, including special populations, the bill dedicates a 
portion of funding to serve those most vulnerable, such as 
disadvantaged youth and individuals with disabilities.
    More money to pay for new workforce programs does not 
constitute reform; it merely doubles down on the failed 
policies of the past. H.R. 4297 maintains our nation's current 
fiscal commitment to employment and training assistance--
important services that will help close the skills gap--while 
taking steps to ensure every taxpayer dollar is spent more 
efficiently and effectively, and lead to more direct services 
to workers.
    The committee strongly endorses the Workforce Investment 
Improvement Act, which streamlines the complicated web of job 
training programs--a step the president has asked Congress to 
take; strengthens the role of employers; expands state and 
local decision-making; ensures additional resources are spent 
on training; and takes action to move our country in a better 
direction and get Americans back to work.

                      Section-by-Section Analysis

Section 1. Short title

    States the short title as the Workforce Investment 
Improvement Act of 2012.

Section 2. Table of contents

    Lists the table of contents for the Act.

Section 3. References

    References the Workforce Investment Act of 1998.

Section 4. Effective date

    Specifies the effective dates of the amendment and programs 
within the Act.

                                TITLE I

                               SUBTITLE A

Section 101. Definitions

    Amends Section 101 (29 U.S.C. 2801) by modifying and adding 
commonly used terms within the Act.

                               SUBTITLE B

Section 102. Purpose

    Amends Section 106 (29 U.S.C. 2811) to reflect the purpose 
of Title I--Amendments to the Workforce Investment Act of 1998.

Section 103. State workforce investment boards

    Amends Section 111 (29 U.S.C. 2821) to specify the general 
requirements for state board membership by removing the 
mandatory partners and requiring a two-thirds business 
majority.

Section 104. State plan

    Amends Section 112 (29 U.S.C. 2822) to specify the general 
requirements for plans submitted by state workforce investment 
boards and amends the state planning cycle from a 5-year to 3-
year strategy.

Section 105. Local workforce investment areas

    Amends Section 116 (29 U.S.C. 2831) to specify general 
requirements for designating local workforce areas and removes 
all grandfathering clauses that allowed areas in existence 
prior to 1998 to remain.

Section 106. Local workforce investment boards

    Amends Section 117 (29 U.S.C. 2832) to specify the general 
requirements for local board membership by removing the 
mandated partners and requiring a two-thirds business majority.

Section 107. Local plan

    Amends Section 118 (29 U.S.C. 2833) to specify the general 
requirements for plans submitted by local workforce investment 
boards, requires local boards to allocate a percentage of funds 
to be used on training activities, and amends the local 
planning cycle from a 5-year to 3-year strategy.

Section 108. Establishment of One-Stop delivery system

    Amends Section 121 (29 U.S.C. 2841) to add employment and 
training programs at the Small Business Administration and 
programs and literacy services carried out by public libraries 
as new optional partner programs within the One-Stop delivery 
system. Moves the creation of the One-Stop delivery system from 
Section 134 to Section 121, requires state boards to certify 
One-Stop centers for the purposes of awarding infrastructure 
funds, and requires One-Stop partners to contribute funds for 
infrastructure grants.

Section 109. Identification of eligible providers of training services

    Amends Section 122 (29 U.S.C. 2842) to allow governors to 
identify eligible providers of training services.

Section 110. General authorization

    States the heading of Chapter 5 of Subtitle B of Title I as 
``Employment and Training Activities.''

Section 111. State allotments

    Amends Section 132 (29 U.S.C. 2862) to establish a 
comprehensive program of employment and training activities for 
all individuals ages 16 to 72. The section amends the Secretary 
of Labor's reservations of funds, changes the allotment formula 
of funds to states, and amends the reallotment provisions.

Section 112. Within state allocations

    Amends Section 133 (29 U.S.C. 2863) to specify the amounts 
reserved under the statewide reservations. The section changes 
the allotment formula of funds to local areas, amends the 
reallotment provisions for local areas, and retains current 
local administrative cost limit.

Section 113. Use of funds for employment and training activities

    Amends Section 134 (29 U.S.C. 2864) to specify the use of 
funds for employment and training activities at the state and 
local levels and removes the current sequencing of services 
requirements. The section also adds the new statewide 
individuals with barriers to employment grant program 
requirements and requires a priority for placement in private 
sector jobs.

Section 114. Performance accountability system

    Amends Section 136 (29 U.S.C. 2871) to establish a common 
set of core indicators of performance all employment and 
training programs under this Act must adhere to and requires 
the secretary to reduce funds to states that do not meet their 
performance targets for two consecutive years.

Section 115. Authorization of appropriations

    Amends Section 137 (29 U.S.C. 2872) to authorize 
appropriations for this Act.

                               SUBTITLE C

Section 116. Job Corps purposes

    Amends Section 141 (29 U.S.C. 2881(1)) to reflect the 
purpose of the Job Corps program.

Section 117. Job Corps definitions

    Amends Section 142 (29 U.S.C. 2882) to modify and add 
commonly used terms under this subtitle.

Section 118. Individuals eligible for the Job Corps

    Amends Section 144 (20 U.S.C. 2884) to include youth up to 
the age of 24 years of age.

Section 119. Recruitment, screening, selection, and assignment of 
        enrollees

    Amends Section 145 (29 U.S.C. 2885) to specify general 
requirements for selecting enrollees and placing them into 
centers that offer the type of career and technical education 
training selected by the individual.

Section 120. Job Corps centers

    Amends Section 147 (29 U.S.C. 2887) to specify general 
requirements to operate a Job Corps center and requires current 
grantees to undergo a recompetition.

Section 121. Program activities

    Amends Section 148 (29 U.S.C. 2888) to specify general 
requirements linking education and training to in-demand 
industries in the state and the attainment of a regular high 
school diploma.

Section 122. Counseling and job placement

    Amends Section 149 (29 U.S.C. 2889) to remove the 
requirement to provide counseling and job placement services to 
former enrollees.

Section 123. Support

    Amends Section 150 (29 U.S.C. 2890) to change the 
secretary's allowances to graduates to become incentive-based.

Section 124. Operations

    Amends Section 151 (29 U.S.C. 2891) to change the heading 
from ``Operating Plan'' to ``Operations'' and strikes Section 
152.

Section 125. Community participation

    Amends Section 153 (29 U.S.C. 2893) to include local 
workforce investment boards in planning purposes.

Section 126. Workforce councils

    Amends Section 154 (29 U.S.C. 2894) to change the heading 
from ``Industry Councils'' to ``Workforce Councils'' and to 
specify general requirements on council members and require a 
two-thirds business majority.

Section 127. Technical assistance

    Amends Section 156 (29 U.S.C. 2896) by striking the section 
and inserting requirements for the secretary to provide 
technical assistance and training for the Job Corps program for 
the purposes of improving program quality.

Section 128. Special provisions

    Amends Section 158 (29 U.S.C. 2898) by striking the 
management fee paid to center operators.

Section 129. Performance accountability and management

    Amends Section 159 (29 U.S.C. 2899) to change the heading 
from ``Management Information'' to ``Performance Accountability 
and Management.'' The section adds new primary indicators of 
performance and adds performance indicators for recruiters and 
career transition service providers. The section also requires 
new transparency and accountability provisions.

Section 130. Closure of low-performing Job Corps centers

    Amends Section 161 (29 U.S.C. 2901) by striking the 
authorization of appropriations and requiring the secretary to 
close chronically low-performing centers.

Section 131. Reforms for opening new Job Corps centers

    Amends Subtitle C of Title I (29 U.S.C. 2881 et seq.) to 
add a new section 162 to restrict the number of new centers to 
not more than 20 per region.

                               SUBTITLE D

Section 132. Technical assistance

    Amends Section 170 (29 U.S.C. 2915) by striking the 
dislocated worker technical assistance provision and specifying 
requirements for the training of staff to provide rapid 
response services. The section also establishes a system for 
coordination of best practices among states.

Section 133. Evaluations

    Amends Section 172 (29 U.S.C. 2917) to require the 
secretary to conduct evaluations of programs and activities 
funded under this Act at least once every five years.

Section 134. Military transitional assistance

    Amends Subtitle D of Title I (29 U.S.C. 2911 et seq.) to 
add a new section 175 to establish Military Transitional 
Assistance, which provides counseling, assistance in 
identifying and obtaining employment and training 
opportunities, and other related services to members of the 
armed forces who are being separated from active duty and the 
spouses of such members.

                               SUBTITLE E

Section 135. Requirements and restrictions

    Amends Section 181 (29 U.S.C. 2931) to specify the general 
requirements on the limitation of funds in the Act.

Section 136. Prompt allocation of funds

    Amends Section 182 (29 U.S.C. 2932) to strike the youth 
provisions.

Section 137. Fiscal controls; sanctions

    Amends Section 184(a)(2) (29 U.S.C. 2934(a)(2)) to strike 
the references to the WIA adult and dislocated worker programs.

Section 138. Reports to Congress

    Amends Section 185 (29 U.S.C. 2935) to specify requirements 
on dissemination of the reports.

Section 139. Administrative provisions

    Amends Section 189 (29 U.S.C. 2939) to specify requirements 
for administrative provisions and expands the secretary's 
waiver authority.

Section 140. State legislative authority

    Amends Section 191(a) (29 U.S.C. 2941(a)) to specify 
requirements consistent with state law.

Section 141. Continuation of state activities and policies

    Amends Section 194 (29 U.S.C. 2944) to strike reference to 
youth provisions.

Section 142. General program requirements

    Amends Section 195 (29 U.S.C. 2945) to specify requirements 
that no funds under this Act shall be used to establish fee-
for-service agencies that compete with private sector 
employment agencies.

Section 143. Department staff

    Amends Subtitle E of Title I (29 U.S.C. 2931 et seq.) to 
add a new section 196 to specify requirements for the secretary 
to identify and reduce the Department of Labor's workforce by 
the number of full-time equivalent employees identified as 
having worked on programs eliminated or consolidated under this 
Act.

                               SUBTITLE F

Section 144. State unified plan

    Amends Section 501 (20 U.S.C. 9271) to modify and add 
programs to be included in the unified plan and authorizes the 
governor to consolidate funds allotted to the identified 
programs in the Workforce Investment Fund with the exception of 
the Carl D. Perkins Career and Technical Education Act of 2006 
and the Rehabilitation Act of 1973.

                                TITLE II

Section 201. Amendment

    Amends Title II (29 U.S.C. 2901 et seq.) by reducing the 
secretary's set aside to carry out national activities to 2 
percent; requires programs and initiatives funded this title to 
meet the core indicators of performance outlined in Title I; 
specifies requirements for state agencies under state 
leadership activities; encourages coordination and integration 
of education and occupational skills training among programs 
and agencies to avoid duplication; changes 5-year strategic 
plans to 3-years; specifies requirements for state plans; 
specifies requirements for local provisions including requiring 
measurable goals that demonstrate past effectiveness of 
providers; repeals the National Institute for Literacy; and 
specifies requirements for national leadership activities to 
improve performance on core indicators.

                               TITLE III

Section 301. Amendments to the Wagner-Peyser Act

    Amends the Wagner-Peyser Act (29 U.S.C. 49 et seq.) by 
striking Sections 1 through 14. Also amends Section 15 of the 
Act to require the Secretary of Labor to oversee a nationwide 
workforce and labor market information system; sets forth 
provisions with regard to system content, confidentiality of 
information, system responsibilities, and immunity from legal 
process; authorizes the secretary to assist in the development 
of national electronic tools to provide services; and requires 
the secretary to consult with representatives of state agencies 
involved in carrying out workforce information strategies.

                                TITLE IV

Section 401. Repeals

    Repeals Chapter 4 of Subtitle B of Title I, and Sections 
123, 155, 166, 167, 168, 169, 171, 173, 173A, 147, 192, 502, 
503, and 506 of the Workforce Investment Act of 1998; Title V 
of the Older Americans Act of 1965; Sections 1 through 14 of 
the Wagner-Peyser Act of 1933; Sections 4103A and 4104 of Title 
38, United States Code; Section 2021 of Title 38, United States 
Code; Section 1144 of Title 10, United States Code; Section 428 
of the H-1B Visa Reform Act of 2004; Youth Conservation Corps 
Act of 1970 (16 U.S.C. 1701 et seq.); Section 1151 of Title 20, 
United States Code; Section 412 of the Immigration Nationality 
Act (8 U.S.C. 1522) and Section 501(a) of the Refugee Education 
Assistance Act of 1980 (94 Stat. 1809; 8 U.S.C. 1522 note); 
Section 231 of the Second Chance Act of 2007 (Public Law 110-
199); and Chapter 27 of Title 29, United States Code.

Section 402. Amendment to the Comprehensive Environmental Response, 
        Compensation, and Liability Act of 1980

    Amends Section 104(k)(6) of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
9604) to strike the word training.

Section 403. Amendments to the Food and Nutrition Act of 2008

    Amends the Food and Nutrition Act of 2008 (7 U.S.C. 2012) 
to specify requirements that employment and training services 
authorized under section 134 of the Workforce Investment Act 
must be made available to eligible recipients of supplemental 
nutrition assistance program benefits; employment and training 
services shall be provided through the statewide workforce 
development system; and the responsibility for monitoring both 
administration and spending of employment and training services 
shall be in conjunction between both the Secretary of 
Agriculture and the Secretary of Labor.

Section 404. Conforming amendments to the United States Code

    Amends the United States Codes with conforming and 
technical changes.

Section 405. Conforming amendments to table of contents

    Amends the table of contents in Section 1(b) with 
conforming and technical changes.

                                TITLE V

Section 501. Findings

    Amends Section 2(a) of the Rehabilitation Act of 1973 (29 
U.S.C. 701(a)) to include a finding regarding the need to 
improve services for students with disabilities under the Act.

Section 502. Rehabilitation services administration

    Amends the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
seq.) to make the position of Commissioner of the 
Rehabilitation Services Administration a director appointed by 
the secretary and to remove the requirement that the position 
be confirmed by the Senate; applies this change to directors 
appointed after the date of enactment of the Workforce 
Investment Improvement Act.

Section 503. Definitions

    Amends Section 7 of the Rehabilitation Act of 1973 (29 
U.S.C. 705) to add a new definition for ``student with a 
disability.''

Section 504. State plan

    Amends Section 101(a) of the Rehabilitation Act of 1973 (29 
U.S.C. 721(a)) to allow consultation and technical assistance 
between the State VR agency and educational agencies to occur 
through alternative means of meeting participation; to require 
coordination and collaboration with the state agencies 
implementing the Assistive Technology Act of 1998; to require 
the statewide assessment of the rehabilitation needs of 
individuals with disabilities to include students with 
disabilities and their needs for transition services and to 
require a statewide assessment of the transition services 
provided under the Act; to require the development of 
strategies for improving and expanding VR services for students 
with disabilities; and to require states to include in their 
state plans how they will carry out the Collaboration with 
Industry grant program and transition services for students 
with disabilities.

Section 505. Scope of services

    Amends Section 103 of the Rehabilitation Act of 1973 (29 
U.S.C. 723) by specifying the types of transition services to 
be provided to students with disabilities; to expand the types 
of services VR agencies may provide to facilitate the 
transition of groups of students with disabilities from 
secondary education to postsecondary education or employment; 
and to allow state VR agencies to develop assistive technology 
programs coordinated with services provided under the Assistive 
Technology Act of 1998 for groups of individuals with 
disabilities.

Section 506. Standards and indicators

    Amends Section 106(a) of the Rehabilitation Act of 1973 (29 
U.S.C. 726(a)) to require the standards and indicators for VR 
programs to be consistent with the core indicators of 
performance under the Workforce Investment Act; and allow the 
state to develop additional indicators for VR services; and 
require the director to direct the state to revise its state 
plan if the state has not met acceptable performance levels.

Section 507. Collaboration with industry

    Amends the Rehabilitation Act of 1973 (29 U.S.C. 729) to 
add a new section 109A to require states to set aside one-half 
of 1 percent of their state VR allotments to make grants to 
facilitate partnerships with private industry to support job 
training and placement programs.

Section 508. Reservation for expanded transition services

    Amends the Rehabilitation Act of 1973 (29 U.S.C. 730) to 
add a new section 110A to require states to set aside at least 
10 percent of their state VR allotments to provide transition 
services to students with disabilities.

Section 509. Client assistance program

    Amends Section 112(e)(1) of the Rehabilitation Act of 1973 
(29 U.S.C. 732(e)(1)) to require the secretary to make client 
assistance program grants to the American Indian Consortium 
consistent with the amounts provided to territories under the 
program.

Section 510. Title III repeals

    Amends Title III of the Rehabilitation Act of 1973 (U.S.C. 
771 et seq.) by repealing In-Service Training of Rehabilitation 
Personnel, Migrant and Seasonal Farmworkers, and Recreational 
Programs.

Section 511. Repeal of title VI

    Amends the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
seq.) by repealing the Projects with Industry and Supported 
Employment Services for Individuals with the Most Significant 
Disabilities programs.

Section 512. Chairperson

    Amends Section 705(b)(5) of the Rehabilitation Act of 1973 
(29 U.S.C. 796(b)(5)) to clarify that statewide independent 
living councils are responsible for selecting the chairperson 
of the council from among the council's voting membership.

Section 513. Authorization of appropriations

    Amends the Rehabilitation Act of 1973 (29 U.S.C. 701) to 
authorize appropriations for this Act.

Section 514. Conforming amendments

    Amends Section 1(b) of the Rehabilitation Act of 1973 to 
update the Act's table of contents.

                       Explanation of Amendments

    The amendments, including the amendment in the nature of a 
substitute, are explained in the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. H.R. 4297 streamlines federal workforce development 
programs, strengthens the employer-driven workforce development 
system, expands decision-making at the local level, improves 
accountability and transparency, simplifies reporting 
requirements, encourages more training to meet in-demand job 
opportunities, and improves adult education and vocational 
rehabilitation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. This issue is addressed in the CBO letter.

                           Earmark Statement

    H.R. 4297 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of House Rule XXI.

                            Roll Call Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee Report to include for 
each record vote on a motion to report the measure or matter 
and on any amendments offered to the measure or matter the 
total number of votes for and against and the names of the 
Members voting for and against.

                             Correspondence

    Exchange of letters between the Committee on the Judiciary, 
the Committee on Agriculture, the Committee on Energy and 
Commerce, the Committee on Transportation and Infrastructure, 
the Committee on Ways and Means, the Committee on Armed 
Services, and the Committee on Veterans' Affairs.

         Statement of General Performance Goals and Objectives

    In accordance with clause (3)(c) of House Rule XIII, the 
goal of H.R. 4297 is to reform and improve the federal 
workforce development systems. The Committee expects the 
Department of Labor to comply with these provisions and 
implement the changes to the law in accordance with these 
stated goals.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the body of this report.

               New Budget Authority and CBO Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following estimate for H.R. 4297 from the Director of the 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 25, 2012.
Hon. John Kline,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4297, the 
Workforce Investment Improvement Act of 2012.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Christina 
Hawley Anthony and David Rafferty.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 4297--Workforce Investment Improvement Act of 2012

    Summary: H.R. 4297 would consolidate job training programs 
under the Workforce Investment Act of 1998 (WIA) into a single 
funding stream. It also would amend the Wagner-Peyser Act, 
reauthorize adult-education programs, and reauthorize programs 
under the Rehabilitation Act of 1973 (RA). Those programs, 
which received discretionary funding of $7 billion and 
mandatory funding of $3 billion in 2012, provide a framework of 
job training, adult education, and employment service 
assistance.
    Pay-as-you-go procedures apply because enacting the 
legislation would affect direct spending. (The bill would not 
affect revenues.) H.R. 4297 would repeal the authorization for 
job training programs that are funded by H-1B visa fees. 
Without that authorization, the Department of Labor (DOL) would 
be unable to operate job training programs funded by those 
fees, though the bill would not affect the total amount of the 
fees collected. As a result, mandatory spending would decline 
by $115 million in 2013 and by $1.2 billion over the 2013-2022 
period, CBO estimates.
    The bill also would affect discretionary spending. Assuming 
appropriation of the authorized amounts, CBO estimates that 
implementing H.R. 4297 would cost $27 billion over the 2013-
2017 period.
    H.R. 4297 would not impose intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4297 is shown in the following table. 
The costs of this legislation fall within budget function 500 
(education, employment, training, and social services).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                    ------------------------------------------------------------
                                                       2013      2014      2015      2016      2017    2013-2017
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDINGa

Estimated Budget Authority.........................      -125      -125      -125      -125      -125       -625
Estimated Outlays..................................      -115      -117      -120      -123      -125       -600

                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Title I: Amendments to the Workforce Investment
 Act:
    Authorization Level............................     6,292     6,292     6,292     6,292     6,292     31,462
    Estimated Outlays..............................       535     4,845     5,915     6,135     6,135     23,565
Title II: Adult Education and Family Literacy
 Education Act:
    Authorization Level............................       606       606       606       606       606      3,030
    Estimated Outlays..............................        18       455       576       606       606      2,260
Title III: Amendments to the Wagner-Peyser Act:
    Authorization Level............................        63        63        63        63        63        317
    Estimated Outlays..............................        29        63        63        63        63        282
Title V: Amendments to the Rehabilitation Act:
    Authorization Level............................       327       327       327       327       327      1,635
    Estimated Outlays..............................        70       259       319       327       327      1,302
    Total Changes in Discretionary Spending:
        Authorization Level........................     7,289     7,289     7,289     7,289     7,289     36,445
        Estimated Outlays..........................       652     5,622     6,873     7,132     7,132    27,410
----------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
aCBO estimates that enacting the bill would decrease direct spending by $1.2 billion over the 2013-2022 period.

    Basis of estimate: This estimate assumes that H.R. 4297 
will be enacted near the start of fiscal year 2013, and that 
the specified authorization amounts will be appropriated for 
fiscal year 2013 and each subsequent fiscal year. The estimated 
outlays reflect historical spending patterns for the affected 
programs.

Direct spending

    H.R. 4297 would repeal the authorization for DOL to operate 
a job training program that is funded with a portion of the 
fees the government collects for H-1B visa applications. 
However, the bill would not change the overall fee structure. 
Thus, the provision would not affect the amount of fees 
received by the federal government, but it would eliminate the 
ability of DOL to spend its portion of the fees. CBO estimates 
that, as a result, direct spending would decline by $1.2 
billion over the 2013-2022 period.
    In addition, H.R. 4297 would reauthorize the existing 
mandatory program of states that makes grants to provide 
vocational rehabilitation services. Those grants are currently 
authorized through fiscal year 2012. H.R. 4297 would extend the 
authorization for the state grants through 2020, assuming the 
automatic one-year extensions in both the RA and the General 
Education Provisions Act. Pursuant to the Balanced Budget and 
Emergency Deficit Control Act of 1985, that extension is 
assumed in CBO's current baseline projections and has no cost 
relative to that baseline. Under the assumptions underlying 
CBO's March 2012 baseline projections, we estimate that 
extending the state grants through 2020 would result in outlays 
of about $27 billion.
    H.R. 4297 would authorize appropriations of $3.1 billion 
per year for each of the next six years, equal to the amount 
the Congress appropriated in fiscal year 2012. However, funding 
for the mandatory state grants is determined by a formula in 
the RA. That funding is equal to the previous year's funding 
level adjusted by the year-over-year change in the consumer 
price index (CPI) as of October 15 of the second preceding 
year. Because H.R. 4297 would not amend or delete that formula, 
CBO estimates that the CPI formula would continue to determine 
the funding level, rather than the stated authorization level. 
In fiscal year 2013, CBO estimates that RA state grants would 
be funded at $3.2 billion; by 2020, funding for state grants 
would rise to an estimated $3.7 billion.

Spending subject to appropriation

    H.R. 4297 would reauthorize and amend the WIA, the Adult 
Education and Family Literacy Act, provisions of the Wagner-
Peyser Act, and the RA. Most of the authorizations for those 
programs have expired, but are extended through 2012 because 
the Congress appropriated funds for those programs for 2012. 
Under H.R. 4297, the authorizations of appropriations for those 
programs would total about $7.3 billion in 2013.
    Title I: Amendments to the Workforce Investment Act. Title 
I would revise and reauthorize the WIA by consolidating 
separate grants for adults, dislocated workers, veterans and 
youth (including Job Corps grants) and some employment service 
functions currently authorized under the Wagner-Peyser Act into 
a single funding stream. Those programs, which received 
appropriations totaling $6.3 billion in fiscal year 2012, would 
be authorized for fiscal years 2013 through 2018. Assuming the 
appropriation of the authorized amounts, CBO estimates that 
implementing title I would cost about $24.6 billion over the 
2013-2017 period.
    Title II: Adult Education and Family Literacy Education 
Act. Title II would revise and reauthorize the adult education 
programs in title II of the Workforce Investment Act. The bill 
would authorize the appropriation of about $600 million for 
state grants and national activities for each of fiscal years 
2013 through 2018, equal to the amount the Congress provided in 
2012. (The bill would repeal authorizing language for the 
National Institute for Literacy, which has not received an 
appropriation since fiscal year 2010.) CBO estimates that 
implementing title II would cost about $2.3 billion over the 
2013-2017 period, assuming appropriation of the authorized 
amounts.
    Title III: Amendments to the Wagner-Peyser Act. Title III 
would reauthorize labor market information functions of the 
Wagner-Peyser Act and would authorize appropriations for those 
purposes at $63 million for each of fiscal years 2013 through 
2018. (In 2012, $63 million was appropriated for similar 
purposes.) CBO estimates that implementing title III would cost 
$282 million over the 2013-2017 period, assuming appropriation 
of the authorized amounts.
    Title IV: Repeals and Conforming Amendments. Title IV would 
repeal several provisions of law, including section 412 of the 
Immigration and Nationality Act, which establishes the refugee-
assistance programs of the Office of Refugee Resettlement. The 
Congress appropriated $579 million for those programs in fiscal 
year 2012. Under current law, those programs are not authorized 
after fiscal year 2012; therefore, repealing them would not 
affect amounts authorized under current law.
    Title V: Amendments to the Rehabilitation Act. Title V 
would revise and reauthorize existing discretionary grant 
programs under the RA. The authorizations for those programs 
have expired but are extended through 2012 because the Congress 
appropriated funds for them to the Department of Education for 
2012. The bill would reauthorize the programs through 2018.
    Department of Education Programs. The Department of 
Education runs a variety of categorical grant and demonstration 
programs under the RA primarily aimed at training, supported 
employment, independent living, research, and advocacy 
projects. The bill would authorize the appropriation of $317 
million for those programs for each of fiscal years 2013 
through 2018. (The Congress appropriated $348 million for those 
programs in fiscal year 2012.) The bill would repeal 
authorizing language for state grants for supported employment, 
for which the Congress provided $29 million in fiscal year 
2012; for rehabilitation services for migrant and seasonal 
farmworkers, for which the Congress provided $1 million in 
fiscal year 2012; and for recreational programs for such 
individuals, for which the Congress did not provide any funding 
in fiscal year 2012. CBO estimates that implementing those 
provisions would cost $1.3 billion over the 2013-2017 period, 
assuming appropriation of the authorized amounts.
    National Council on Disability. The Council is responsible 
for reviewing federal law and policies affecting individuals 
with disabilities. The bill would authorize the appropriation 
of $3 million for the Council for each of fiscal years 2013 
through 2018, equal to the amount the Congress appropriated for 
fiscal year 2012. CBO estimates that implementing this 
provision would cost $14 million over the 2013-2017 period.
    Architectural and Transportation Barriers Compliance Board. 
The Board develops guidelines to ensure access to buildings, 
transportation vehicles, and telecommunications equipment for 
individuals with disabilities. The bill would authorize the 
appropriation of $7 million for the Board for each of fiscal 
years 2013 through 2018, equal to the amount the Congress 
appropriated for fiscal year 2012. CBO estimates that 
implementing this provision would cost $33 million over the 
2013-2017 period.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4297, THE WORKFORCE INVESTMENT IMPROVEMENT ACT OF 2012, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON EDUCATION AND THE WORKFORCE ON JUNE 7, 2012
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            By fiscal year, in millions of dollars--
                                                               ---------------------------------------------------------------------------------------------------------------------------------
                                                                 2012     2013      2014      2015      2016      2017      2018      2019      2020      2021      2022    2012-2017  2012-2022
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      NET INCREASE OR DECREASE (-) IN THE ON-BUDGET DEFICIT

                Statutory Pay-As-You-Go Impact                       0      -115      -117      -120      -123      -125      -125      -125      -125      -125      -125       -600     -1,225
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 4297 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments. By consolidating and repealing grant 
programs, the bill would decrease the amount of assistance that 
state, local, and tribal governments receive for employment 
services, job training, and adult education and literacy 
services.
    Estimate prepared by: Federal costs: Workforce Investment 
Act and Wagner-Peyser--Christina Hawley Anthony; Adult 
Education and National Institute for Literacy--Justin Humphrey; 
Rehabilitation Act and Office of Refugee Resettlement--David 
Rafferty; Impact on state, local, and tribal governments: Lisa 
Ramirez-Branum; Impact on the Private Sector: Jimmy Jin.
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis.

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 4297. 
However, clause 3(d)(2)(B) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                    WORKFORCE INVESTMENT ACT OF 1998

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) * * *
  (b) Table of Contents.--The table of contents for this Act is 
as follows:
[Sec. 1. Short title; table of contents.

                 [TITLE I--WORKFORCE INVESTMENT SYSTEMS

              [Subtitle A--Workforce Investment Definitions

[Sec. 101. Definitions.

      [Subtitle B--Statewide and Local Workforce Investment Systems

[Sec. 106. Purpose.

                      [Chapter 1--State Provisions

[Sec. 111. State workforce investment boards.
[Sec. 112. State plan.

                      [Chapter 2--Local Provisions

[Sec. 116. Local workforce investment areas.
[Sec. 117. Local workforce investment boards.
[Sec. 118. Local plan.

          [Chapter 3--Workforce Investment Activities Providers

[Sec. 121. Establishment of one-stop delivery systems.
[Sec. 122. Identification of eligible providers of training services.
[Sec. 123. Identification of eligible providers of youth activities.

                      [Chapter 4--Youth Activities

[Sec. 126. General authorization.
[Sec. 127. State allotments.
[Sec. 128. Within State allocations.
[Sec. 129. Use of funds for youth activities.

    [Chapter 5--Adult and Dislocated Worker Employment and Training 
                               Activities

[Sec. 131. General authorization.
[Sec. 132. State allotments.
[Sec. 133. Within State allocations.
[Sec. 134. Use of funds for employment and training activities.

                     [Chapter 6--General Provisions

[Sec. 136. Performance accountability system.
[Sec. 137. Authorization of appropriations.

                         [Subtitle C--Job Corps

[Sec. 141. Purposes.
[Sec. 142. Definitions.
[Sec. 143. Establishment.
[Sec. 144. Individuals eligible for the Job Corps.
[Sec. 145. Recruitment, screening, selection, and assignment of 
          enrollees.
[Sec. 146. Enrollment.
[Sec. 147. Job Corps centers.
[Sec. 148. Program activities.
[Sec. 149. Counseling and job placement.
[Sec. 150. Support.
[Sec. 151. Operating plan.
[Sec. 152. Standards of conduct.
[Sec. 153. Community participation.
[Sec. 154. Industry councils.
[Sec. 155. Advisory committees.
[Sec. 156. Experimental, research, and demonstration projects.
[Sec. 157. Application of provisions of Federal law.
[Sec. 158. Special provisions.
[Sec. 159. Management information.
[Sec. 160. General provisions.
[Sec. 161. Authorization of appropriations.

                     [Subtitle D--National Programs

[Sec. 166. Native American programs.
[Sec. 167. Migrant and seasonal farmworker programs.
[Sec. 168. Veterans' workforce investment programs.
[Sec. 169. Youth opportunity grants.
[Sec. 170. Technical assistance.
[Sec. 171. Demonstration, pilot, multiservice, research, and multistate 
          projects.
[Sec. 172. Evaluations.
[Sec. 173. National emergency grants.
[Sec. 173A. YouthBuild program
[Sec. 174. Authorization of appropriations.

                       [Subtitle E--Administration

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

             [Subtitle F--Repeals and Conforming Amendments

[Sec. 199. Repeals.
[Sec. 199A. Conforming amendments.

                 [TITLE II--ADULT EDUCATION AND LITERACY

[Sec. 201. Short title.
[Sec. 202. Purpose.
[Sec. 203. Definitions.
[Sec. 204. Home schools.
[Sec. 205. Authorization of appropriations.

           [Subtitle A--Adult Education and Literacy Programs

                     [Chapter 1--Federal Provisions

[Sec. 211. Reservation; grants to eligible agencies; allotments.
[Sec. 212. Performance accountability system.

                      [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.

                          [Subtitle B--Repeals

[Sec. 251. Repeals.

           [TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                     [Subtitle A--Wagner-Peyser Act

[Sec. 301. Definitions.
[Sec. 302. Functions.
[Sec. 303. Designation of State agencies.
[Sec. 304. Appropriations.
[Sec. 305. Disposition of allotted funds.
[Sec. 306. State plans.
[Sec. 307. Repeal of Federal advisory council.
[Sec. 308. Regulations.
[Sec. 309. Employment statistics.
[Sec. 310. Technical amendments.
[Sec. 311. Effective date.

                [Subtitle B--Linkages With Other Programs

[Sec. 321. Trade Act of 1974.
[Sec. 322. Veterans' employment programs.
[Sec. 323. Older Americans Act of 1965.

         [Subtitle C--Twenty-First Century Workforce Commission

[Sec. 331. Short title.
[Sec. 332. Findings.
[Sec. 333. Definitions.
[Sec. 334. Establishment of Twenty-First Century Workforce Commission.
[Sec. 335. Duties of the Commission.
[Sec. 336. Powers of the Commission.
[Sec. 337. Commission personnel matters.
[Sec. 338. Termination of the Commission.
[Sec. 339. Authorization of appropriations.

 [Subtitle D--Application of Civil Rights and Labor-Management Laws to 
                       the Smithsonian Institution

[Sec. 341. Application of civil rights and labor-management laws to the 
          Smithsonian Institution.

            [TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998

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

                      [TITLE V--GENERAL PROVISIONS

[Sec. 501. State unified plan.
[Sec. 502. Definitions for indicators of performance.
[Sec. 503. Incentive grants.
[Sec. 504. Privacy.
[Sec. 505. Buy-American requirements.
[Sec. 506. Transition provisions.
[Sec. 507. Effective date.]

Sec. 1. Short title; table of contents.

                  TITLE I--WORKFORCE INVESTMENT SYSTEMS

              Subtitle A--Workforce Investment Definitions

Sec. 101. Definitions.

      Subtitle B--Statewide and Local Workforce Investment Systems

Sec. 106. Purpose.

                       Chapter 1--State Provisions

Sec. 111. State workforce investment boards.
Sec. 112. State plan.

                       Chapter 2--Local Provisions

Sec. 116. Local workforce investment areas.
Sec. 117. Local workforce investment boards.
Sec. 118. Local plan.

          Chapter 3--Workforce Investment Activities Providers

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

                          Chapter 4--[repealed]

              Chapter 5--Employment and Training Activities

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

                      Chapter 6--General Provisions

Sec. 136. Performance accountability system.
Sec. 137. Authorization of appropriations.

                          Subtitle C--Job Corps

Sec. 141. Purposes.
Sec. 142. Definitions.
Sec. 143. Establishment.
Sec. 144. Individuals eligible for the Job Corps.
Sec. 145. Recruitment, screening, selection, and assignment of 
          enrollees.
Sec. 146. Enrollment.
Sec. 147. Job Corps centers.
Sec. 148. Program activities.
Sec. 149. Counseling and job placement.
Sec. 150. Support.
Sec. 151. Operations.
Sec. 152. Standards of conduct.
Sec. 153. Community participation.
Sec. 154. Workforce councils.
Sec. 155. [Repealed].
Sec. 156. Technical assistance to centers.
Sec. 157. Application of provisions of Federal law.
Sec. 158. Special provisions.
Sec. 159. Management information.
Sec. 160. General provisions.
Sec. 161. Closure of low-performing Job Corps centers.
Sec. 162. Reforms to remove political favoritism in the opening of new 
          Job Corps centers.

                      Subtitle D--National Programs

Sec. 166. [Repealed].
Sec. 167. [Repealed].
Sec. 168. [Repealed].
Sec. 169. [Repealed].
Sec. 170. Technical assistance.
Sec. 171. [Repealed].
Sec. 172. Evaluations.
Sec. 173. [Repealed].
Sec. 173A. [Repealed].
Sec. 174. [Repealed].
Sec. 175. Military transitional assistance.

                       Subtitle E--Administration

Sec. 181. Requirements and restrictions.
Sec. 182. Prompt allocation of funds.
Sec. 183. Monitoring.
Sec. 184. Fiscal controls; sanctions.
Sec. 185. Reports; recordkeeping; investigations.
Sec. 186. Administrative adjudication.
Sec. 187. Judicial review.
Sec. 188. Nondiscrimination.
Sec. 189. Administrative provisions.
Sec. 190. References.
Sec. 191. State legislative authority.
Sec. 192. [Repealed].
Sec. 193. Use of certain real property.
Sec. 194. Continuation of State activities and policies.
Sec. 195. General program requirements.
Sec. 196. Department Staff.

              Subtitle F--Repeals and Conforming Amendments

Sec. 199. Repeals.
Sec. 199A. Conforming amendments.

         TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Sec. 204. Home schools.
Sec. 205. Authorization of appropriations.

                     Subtitle A--Federal Provisions

Sec. 211. Reservation of funds; grants to eligible agencies; allotments.
Sec. 212. Performance accountability system.

                      Subtitle B--State Provisions

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

                      Subtitle C--Local Provisions

Sec. 231. Grants and contracts for eligible providers.
Sec. 232. Local application.
Sec. 233. Local administrative cost limits.

                     Subtitle D--General PRovisions

Sec. 241. Administrative provisions.
Sec. 242. National activities.

           TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES

                      Subtitle A--Wagner-Peyser Act

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

                Subtitle B--Linkages With Other Programs

Sec. 321. Trade Act of 1974.
Sec. 322. Veterans' employment programs.
Sec. 323. Older Americans Act of 1965.

          Subtitle C--Twenty-First Century Workforce Commission

Sec. 331. Short title.
Sec. 332. Findings.
Sec. 333. Definitions.
Sec. 334. Establishment of Twenty-First Century Workforce Commission.
Sec. 335. Duties of the Commission.
Sec. 336. Powers of the Commission.
Sec. 337. Commission personnel matters.
Sec. 338. Termination of the Commission.
Sec. 339. Authorization of appropriations.

Subtitle D--Application of Civil Rights and Labor-Management Laws to the 
                         Smithsonian Institution

Sec. 341. Application of civil rights and labor-management laws to the 
          Smithsonian Institution.

             TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998

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

                       TITLE V--GENERAL PROVISIONS

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

                 TITLE I--WORKFORCE INVESTMENT SYSTEMS

              Subtitle A--Workforce Investment Definitions

SEC. 101. DEFINITIONS.

  In this title:
          (1) Accrued expenditures.--The term ``accrued 
        expenditures'' means charges incurred by recipients of 
        funds under this title for a given period requiring the 
        provision of funds for goods or other tangible property 
        received; services performed by employees, contractors, 
        subgrantees, subcontractors, and other payees; and 
        other amounts becoming owed under programs assisted 
        under this title for which no current services or 
        performance is required, such as annuities, insurance 
        claims, and other benefit payments.
          (2) Administrative costs.--The term ``administrative 
        costs'' means expenditures incurred by State and local 
        workforce investment boards, direct recipients 
        (including State grant recipients under subtitle B and 
        recipients of awards under subtitles C and D), local 
        grant recipients, local fiscal agents or local grant 
        subrecipients, and one-stop operators in the 
        performance of administrative functions and in carrying 
        out activities under this title which are not related 
        to the direct provision of workforce investment 
        services (including services to participants and 
        employers). Such costs include both personnel and non-
        personnel and both direct and indirect.
          [(1)] (3) Adult.--[Except in sections 127 and 132, 
        the] The term ``adult'' means an individual who is age 
        18 or older.
          [(2)] (4) Adult education; adult education and 
        literacy activities.--The terms ``adult education'' and 
        ``adult education and literacy activities'' have the 
        meanings given the terms in section 203.
          [(3) Area vocational education school.--The term 
        ``area vocational education school'' has the meaning 
        given the term ``area career and technical education 
        school'' in section 3 of the Carl D. Perkins Career and 
        Technical Education Act of 2006.]
          (5) Area career and technical education school.--The 
        term ``area career and technical education school'' has 
        the meaning given the term in section 3(3) of the Carl 
        D. Perkins Career and Technical Education Act of 2006 
        (20 U.S.C. 2302(3)).
          [(4)] (6) Basic skills deficient.--The term ``basic 
        skills deficient'' means, with respect to an 
        individual, that the individual has English reading, 
        writing, or computing skills at or below the 8th grade 
        level (or such other level as the Governor may 
        establish) on a generally accepted standardized test or 
        a comparable score on a criterion-referenced test.
          [(5)] (7) Case management.--The term ``case 
        management'' means the provision of a client-centered 
        approach in the delivery of services, designed--
                  (A) * * *

           *       *       *       *       *       *       *

          [(6)] (8) Chief elected official.--The term ``chief 
        elected official'' means--
                  (A) * * *

           *       *       *       *       *       *       *

          [(7)] (9) Community-based organization.--The term 
        ``community-based organization'' means a private 
        nonprofit organization that is representative of a 
        community or a significant segment of a community and 
        that has demonstrated expertise and effectiveness in 
        the field of workforce investment.
          [(8)] (10) Customized training.--The term 
        ``customized training'' means training--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) for which the employer pays for [not less 
                than 50 percent of the cost of the training] a 
                significant portion of the cost of training, as 
                determined by the local board (or, in the case 
                of an employer in multiple local areas in the 
                State, as determined by the Governor), taking 
                into account the size of the employer and such 
                other factors as the local board determines to 
                be appropriate.
          [(9)] (11) Dislocated worker.--The term ``dislocated 
        worker'' means an individual who--
                  (A)(i) * * *
                  (ii)(I) * * *
                  (II) has been employed for a duration 
                sufficient to demonstrate, to the appropriate 
                entity at a one-stop center referred to in 
                [section 134(c)] section 121(e), attachment to 
                the workforce, but is not eligible for 
                unemployment compensation due to insufficient 
                earnings or having performed services for an 
                employer that were not covered under a State 
                unemployment compensation law; and

           *       *       *       *       *       *       *

                  (B)(i) * * *

           *       *       *       *       *       *       *

                  (iii) for purposes of eligibility to receive 
                services other than training services described 
                in section 134(d)(4), [intensive services 
                described in section 134(d)(3)] work ready 
                services described in section 134(c)(2), or 
                supportive services, is employed at a facility 
                at which the employer has made a general 
                announcement that such facility will close;
                  (C) was self-employed (including employment 
                as a farmer, a rancher, or a fisherman) but is 
                unemployed as a result of general economic 
                conditions in the community in which the 
                individual resides or because of natural 
                disasters; [or]
                  (D) is a displaced homemaker[.]; or
                  (E)(i) is the spouse of a member of the Armed 
                Forces on active duty for a period of more than 
                30 days (as defined in section 101(d)(2) of 
                title 10, United States Code) who has 
                experienced a loss of employment as a direct 
                result of relocation to accommodate a permanent 
                change in duty station of such member; or
                  (ii) is the spouse of a member of the Armed 
                Forces on active duty who meets the criteria 
                described in paragraph (12)(B).
          [(10)] (12) Displaced homemaker.--The term 
        ``displaced homemaker'' means an individual who has 
        been providing unpaid services to family members in the 
        home and who--
                  (A)(i) has been dependent on the income of 
                another family member but is no longer 
                supported by that income; [and] or
                  (ii) is the dependent spouse of a member of 
                the Armed Forces on active duty for a period of 
                more than 30 days (as defined in section 
                101(d)(2) of title 10, United States Code) 
                whose family income is significantly reduced 
                because of a deployment (as defined in section 
                991(b) of title 10, United States Code, or 
                pursuant to paragraph (4) of such section), a 
                call or order to active duty pursuant to a 
                provision of law referred to in section 
                101(a)(13)(B) of title 10, United States Code, 
                a permanent change of station, or the service-
                connected (as defined in section 101(16) of 
                title 38, United States Code) death or 
                disability of the member; and

           *       *       *       *       *       *       *

          [(11)] (13) Economic development agencies.--The term 
        ``economic development agencies'' includes local or 
        regional planning and zoning commissions or boards, 
        community development agencies, and other local or 
        regional agencies and institutions responsible for 
        regulating, promoting, or assisting in local or 
        regional economic development.
          [(12)] (14) Eligible provider.--The term ``eligible 
        provider'', used with respect to--
                  (A) training services, means a provider who 
                is identified in accordance with [section 
                122(e)(3)] section 122;
                  [(B) intensive services, means a provider who 
                is identified or awarded a contract as 
                described in section 134(d)(3)(B);
                  [(C) youth activities, means a provider who 
                is awarded a grant or contract in accordance 
                with section 123; or]
                  (B) work ready services, means a provider who 
                is identified or awarded a contract as 
                described in section 134(c)(2); or
          [(13) Eligible youth.--Except as provided in 
        subtitles C and D, the term ``eligible youth'' means an 
        individual who--
                  [(A) is not less than age 14 and not more 
                than age 21;
                  [(B) is a low-income individual; and
                  [(C) is an individual who is one or more of 
                the following:
                          [(i) Deficient in basic literacy 
                        skills.
                          [(ii) A school dropout.
                          [(iii) Homeless, a runaway, or a 
                        foster child.
                          [(iv) Pregnant or a parent.
                          [(v) An offender.
                          [(vi) An individual who requires 
                        additional assistance to complete an 
                        educational program, or to secure and 
                        hold employment.]
          [(14)] (15) Employment and training activity.--The 
        term ``employment and training activity'' means an 
        activity described in section 134 that is carried out 
        for an [adult or dislocated worker] individual.
          [(15)] (16) Family.--The term ``family'' means two or 
        more persons related by blood, marriage, or decree of 
        court, who are living in a single residence, and are 
        included in one or more of the following categories:
                  (A) * * *

           *       *       *       *       *       *       *

          [(16)] (17) Governor.--The term ``Governor'' means 
        the chief executive of a State.
          [(17)] (18) Individual with a disability.--
                  (A) * * *

           *       *       *       *       *       *       *

          [(18)] (19) Labor market area.--The term ``labor 
        market area'' means an economically integrated 
        geographic area within which individuals can reside and 
        find employment within a reasonable distance or can 
        readily change employment without changing their place 
        of residence. Such an area shall be identified in 
        accordance with criteria used by the Bureau of Labor 
        Statistics of the Department of Labor in defining such 
        areas or similar criteria established by a Governor.
          [(19)] (20) Literacy.--The term ``literacy'' has the 
        meaning given the term in section 203.
          [(20)] (21) Local area.--The term ``local area'' 
        means a local workforce investment area designated 
        under section 116.
          [(21)] (22) Local board.--The term ``local board'' 
        means a local workforce investment board established 
        under section 117.
          [(22)] (23) Local performance measure.--The term 
        ``local performance measure'' means a performance 
        measure established under section 136(c).
          [(23)] (24) Local educational agency.--The term 
        ``local educational agency'' has the meaning given the 
        term in section 9101 of the Elementary and Secondary 
        Education Act of 1965.
          [(24) Lower living standard income level.--The term 
        ``lower living standard income level'' means that 
        income level (adjusted for regional, metropolitan, 
        urban, and rural differences and family size) 
        determined annually by the Secretary based on the most 
        recent lower living family budget issued by the 
        Secretary.]
          (25) Low-income individual.--The term ``low-income 
        individual'' means an individual who--
                  (A) * * *
                  (B) received an income, or is a member of a 
                family that received a total family income, for 
                the 6-month period prior to application for the 
                program involved (exclusive of unemployment 
                compensation, child support payments, payments 
                described in subparagraph (A), and old-age and 
                survivors insurance benefits received under 
                section 202 of the Social Security Act (42 
                U.S.C. 402)) that, in relation to family size, 
                does not exceed the [higher of--
                          [(i) the poverty line, for an 
                        equivalent period; or
                          [(ii) 70 percent of the lower living 
                        standard income level, for an 
                        equivalent period;] poverty line for an 
                        equivalent period;

           *       *       *       *       *       *       *

                  (D) receives or is eligible to receive free 
                or reduced price lunch under the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 
                1751 et seq.);
                  [(D)] (E) qualifies as a homeless individual, 
                as defined in subsections (a) and (c) of 
                section 103 of the Stewart B. McKinney Homeless 
                Assistance Act (42 U.S.C. 11302);
                  [(E)] (F) is a foster child on behalf of whom 
                State or local government payments are made; or
                  [(F)] (G) in cases permitted by regulations 
                promulgated by the Secretary of Labor, is an 
                individual with a disability whose own income 
                meets the requirements of a program described 
                in subparagraph (A) or of subparagraph (B), but 
                who is a member of a family whose income does 
                not meet such requirements.

           *       *       *       *       *       *       *

          (32) Outlying area.--The term ``outlying area'' means 
        the United States Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, [the 
        Republic of the Marshall Islands, the Federated States 
        of Micronesia,] and the Republic of Palau.
          [(33) Out-of-school youth.--The term ``out-of-school 
        youth'' means--
                  [(A) an eligible youth who is a school 
                dropout; or
                  [(B) an eligible youth who has received a 
                secondary school diploma or its equivalent but 
                is basic skills deficient, unemployed, or 
                underemployed.]
          (33) Out-of-school youth.--The term ``out-of-school 
        youth'' means--
                  (A) an at-risk youth who is a school dropout; 
                or
                  (B) an at-risk youth who has received a 
                secondary school diploma or its recognized 
                equivalent but is basic skills deficient, 
                unemployed, or underemployed.

           *       *       *       *       *       *       *

          (38) Rapid response activity.--The term ``rapid 
        response activity'' means an activity provided by a 
        State, or by an entity designated by a State, with 
        funds provided by the State under section 
        [134(a)(1)(A)] 134(a)(1)(B), in the case of a permanent 
        closure or mass layoff at a plant, facility, or 
        enterprise, or a natural or other disaster, that 
        results in mass job dislocation, in order to assist 
        dislocated workers in obtaining reemployment as soon as 
        possible, with services including--
                  (A) * * *

           *       *       *       *       *       *       *

          [(49) Veteran; related definition.--
                  [(A) Veteran.--The term ``veteran'' means an 
                individual who served in the active military, 
                naval, or air service, and who was discharged 
                or released from such service under conditions 
                other than dishonorable.
                  [(B) Recently separated veteran.--The term 
                ``recently separated veteran'' means any 
                veteran who applies for participation under 
                this title within 48 months after the discharge 
                or release from active military, naval, or air 
                service.
          [(50) Vocational education.--The term ``vocational 
        education'' has the meaning given the term ``career and 
        technical education'' in section 3 of the Carl D. 
        Perkins Career and Technical Education Act of 2006.]
          (49) Veteran.--The term ``veteran'' has the same 
        meaning given the term in section 2108(1) of title 5, 
        United States Code.
          (50) Career and technical education.--The term 
        ``career and technical education'' has the meaning 
        given the term in section 3 of the Carl D. Perkins 
        Career and Technical Education Act of 2006 (20 U.S.C. 
        2302).
          (51) Workforce investment activity.--The term 
        ``workforce investment activity'' means an employment 
        and training activity[, and a youth activity].
          [(52) Youth activity.--The term ``youth activity'' 
        means an activity described in section 129 that is 
        carried out for eligible youth (or as described in 
        section 129(c)(5)).
          [(53) Youth council.--The term ``youth council'' 
        means a council established under section 117(h).]
          (52) At-risk youth.--Except as provided in subtitle 
        C, the term ``at-risk youth'' means an individual who--
                  (A) is not less than age 16 and not more than 
                age 24;
                  (B) is a low-income individual; and
                  (C) is an individual who is one or more of 
                the following:
                          (i) a secondary school dropout;
                          (ii) a youth in foster care 
                        (including youth aging out of foster 
                        care);
                          (iii) a youth offender;
                          (iv) a youth who is an individual 
                        with a disability; or
                          (v) a migrant youth.
          (53) Industry or sector partnership.--The term 
        ``industry or sector partnership'' means a partnership 
        of a State or local board and one or more industries 
        and other entities that have the capability to help the 
        State or local board determine the immediate and long 
        term skilled workforce needs of in-demand industries 
        and other occupations important to the State or local 
        economy, respectively.
          (54) Industry-recognized credential.--The term 
        ``industry-recognized credential'' means a credential 
        that is sought or accepted by companies within the 
        industry sector involved, across multiple States, as 
        recognized, preferred, or required for recruitment, 
        screening, or hiring.
          (55) Recognized postsecondary credential.--The term 
        ``recognized postsecondary credential'' means a 
        credential awarded by a training provider or 
        postsecondary educational institution based on 
        completion of all requirements for a program of study, 
        including coursework or tests or other performance 
        evaluations. The term includes an industry-recognized 
        certificate, a certificate of completion of an 
        apprenticeship, or an associate or baccalaureate 
        degree.

           *       *       *       *       *       *       *

      Subtitle B--Statewide and Local Workforce Investment Systems

SEC. 106. PURPOSE.

  The purpose of this subtitle is to provide workforce 
investment activities, through statewide and local workforce 
investment systems, that increase the employment, retention, 
and earnings of participants, and increase occupational skill 
attainment by participants, and, as a result, improve the 
quality of the workforce, reduce welfare dependency, and 
enhance the productivity and competitiveness of the Nation. It 
is also the purpose of this subtitle to provide workforce 
investment activities in a manner that enhances employer 
engagement, promotes customer choices in the selection of 
training services, and ensures accountability in the use of the 
taxpayer funds.

                      CHAPTER 1--STATE PROVISIONS

SEC. 111. STATE WORKFORCE INVESTMENT BOARDS.

  (a) * * *
  (b) Membership.--
          (1) In general.--The State Board shall include--
                  (A) * * *
                  [(B) 2 members of each chamber of the State 
                legislature, appointed by the appropriate 
                presiding officers of each such chamber; and]
                  [(C)] (B) representatives appointed by the 
                Governor, who are--
                          (i) representatives of business in 
                        the State, who--
                                  (I) are owners of businesses, 
                                chief executives or operating 
                                officers of businesses, and 
                                other business executives or 
                                employers with optimum 
                                policymaking or hiring 
                                authority, including members of 
                                local boards described in 
                                [section 117(b)(2)(A)(i)] 
                                section 117(b)(2)(A);
                                  [(II) represent businesses 
                                with employment opportunities 
                                that reflect the employment 
                                opportunities of the State; 
                                and]
                                  (II) represent businesses, 
                                including large and small 
                                businesses, with immediate and 
                                long-term employment 
                                opportunities in in-demand 
                                industries and other 
                                occupations important to the 
                                State economy; and

           *       *       *       *       *       *       *

                          [(iii) representatives of labor 
                        organizations, who have been nominated 
                        by State labor federations;
                          [(iv) representatives of individuals 
                        and organizations that have experience 
                        with respect to youth activities;
                          [(v) representatives of individuals 
                        and organizations that have experience 
                        and expertise in the delivery of 
                        workforce investment activities, 
                        including chief executive officers of 
                        community colleges and community-based 
                        organizations within the State;
                          [(vi)(I) the lead State agency 
                        officials with responsibility for the 
                        programs and activities that are 
                        described in section 121(b) and carried 
                        out by one-stop partners; and
                          [(II) in any case in which no lead 
                        State agency official has 
                        responsibility for such a program, 
                        service, or activity, a representative 
                        in the State with expertise relating to 
                        such program, service, or activity; and
                          [(vii) such other representatives and 
                        State agency officials as the Governor 
                        may designate, such as the State agency 
                        officials responsible for economic 
                        development and juvenile justice 
                        programs in the State.]
                          (iii) a State agency official 
                        responsible for economic development; 
                        and
                          (iv) such other representatives and 
                        State agency officials as the Governor 
                        may designate, including--
                                  (I) members of the State 
                                legislature;
                                  (II) representatives of 
                                individuals and organizations 
                                that have experience with 
                                respect to youth activities;
                                  (III) representatives of 
                                individuals and organizations 
                                that have experience and 
                                expertise in the delivery of 
                                workforce investment 
                                activities, including chief 
                                executive officers of community 
                                colleges and community-based 
                                organizations within the State;
                                  (IV) representatives of the 
                                lead State agency officials 
                                with responsibility for the 
                                programs and activities that 
                                are described in section 121(b) 
                                and carried out by one-stop 
                                partners; or
                                  (V) representatives of 
                                veterans service organizations; 
                                and

           *       *       *       *       *       *       *

          [(3) Majority.--A majority of the members of the 
        State Board shall be representatives described in 
        paragraph (1)(C)(i).]
          (3) Majority.--A \2/3\ majority of the members of the 
        board shall be representatives described in paragraph 
        (1)(B)(i).
  (c) Chairperson.--The Governor shall select a chairperson for 
the State Board from among the representatives described in 
subsection [(b)(1)(C)(i)] (b)(1)(B)(i).
  [(d) Functions.--The State Board shall assist the Governor 
in--
          [(1) development of the State plan;
          [(2) development and continuous improvement of a 
        statewide system of activities that are funded under 
        this subtitle or carried out through a one-stop 
        delivery system described in section 134(c) that 
        receives funds under this subtitle (referred to in this 
        title as a ``statewide workforce investment system''), 
        including--
                  [(A) development of linkages in order to 
                assure coordination and nonduplication among 
                the programs and activities described in 
                section 121(b); and
                  [(B) review of local plans;
          [(3) commenting at least once annually on the 
        measures taken pursuant to section 113(b)(3) of the 
        Carl D. Perkins Career and Technical Education Act of 
        2006 (20 U.S.C 2323(b)(14));
          [(4) designation of local areas as required in 
        section 116;
          [(5) development of allocation formulas for the 
        distribution of funds for adult employment and training 
        activities and youth activities to local areas as 
        permitted under sections 128(b)(3)(B) and 133(b)(3)(B);
          [(6) development and continuous improvement of 
        comprehensive State performance measures, including 
        State adjusted levels of performance, to assess the 
        effectiveness of the workforce investment activities in 
        the State as required under section 136(b);
          [(7) preparation of the annual report to the 
        Secretary described in section 136(d);
          [(8) development of the statewide employment 
        statistics system described in section 15(e) of the 
        Wagner-Peyser Act; and
          [(9) development of an application for an incentive 
        grant under section 503.
  [(e) Alternative Entity.--
          [(1) In general.--For purposes of complying with 
        subsections (a), (b), and (c), a State may use any 
        State entity (including a State council, State 
        workforce development board, combination of regional 
        workforce development boards, or similar entity) that--
                  [(A) was in existence on December 31, 1997;
                  [(B)(i) was established pursuant to section 
                122 or title VII of the Job Training 
                Partnership Act, as in effect on December 31, 
                1997; or
                  [(ii) is substantially similar to the State 
                board described in subsections (a), (b), and 
                (c); and
                  [(C) includes representatives of business in 
                the State and representatives of labor 
                organizations in the State.
          [(2) References.--References in this Act to a State 
        board shall be considered to include such an entity.]
  (d) Functions.--The State board shall assist the Governor of 
the State as follows:
          (1) State plan.--Consistent with section 112, develop 
        a State plan.
          (2) Statewide workforce development system.--Review 
        and develop statewide policies and programs in the 
        State in a manner that supports a comprehensive 
        Statewide workforce development system that will result 
        in meeting the workforce needs of the State and its 
        local areas. Such review shall include determining 
        whether the State should consolidate additional 
        programs into the Workforce Investment Fund under 
        section 132(b).
          (3) Workforce and labor market information system.--
        Develop a statewide workforce and labor market 
        information system described in section 15(e) of the 
        Wagner-Peyser Act, which may include using existing 
        information conducted by the State economic development 
        agency or related entity in developing such system.
          (4) Employer engagement.--Develop strategies across 
        local areas that meet the needs of employers and 
        support economic growth in the State by enhancing 
        communication, coordination, and collaboration among 
        employers, economic development entities, and service 
        providers.
          (5) Designation of local areas.--Designate local 
        areas as required under section 116.
          (6) One-stop delivery system.--Identify and 
        disseminate information on best practices for effective 
        operation of one-stop centers, including use of 
        innovative business outreach, partnerships, and service 
        delivery strategies.
          (7) Program oversight.--Conduct the following program 
        oversight:
                  (A) Reviewing and approving local plans under 
                section 118.
                  (B) Ensuring the appropriate use of 
                management of the funds provided for State 
                employment and training activities authorized 
                under section 134.
                  (C) Preparing an annual report to the 
                Secretary described in section 136(d).
          (8) Development of performance measures.--Develop and 
        ensure continuous improvement of comprehensive State 
        performance measures, including State adjusted levels 
        of performance, as described under section 136(b).
  [(f)] (e) Conflict of Interest.--A member of a State board 
may not--
          (1) vote or participate in action taken on a matter 
        under consideration by the State board--
                  (A) * * *

           *       *       *       *       *       *       *

  (f) Staff.--The State board may employ staff to assist in 
carrying out the functions described in subsection (d).
  (g) Sunshine Provision.--The State board shall make available 
to the public, on a regular basis through electronic means and 
open meetings, information regarding the activities of the 
State board, including information regarding the State plan 
prior to submission of the plan, information regarding 
membership, and, on request, minutes of formal meetings of the 
State board.

SEC. 112. STATE PLAN.

  (a) In General.--For a State to be eligible to receive an 
allotment under section [127 or] 132, or to receive financial 
assistance under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), 
the Governor of the State shall submit to the Secretary for 
consideration by the Secretary, a single State plan (referred 
to in this title as the ``State plan'') that outlines a [5-year 
strategy] 3-year strategy for the statewide workforce 
investment system of the State and that meets the requirements 
of section 111 and this section.
  (b) Contents.--The State plan shall include--
          (1) * * *

           *       *       *       *       *       *       *

          [(4) information describing--
                  [(A) the needs of the State with regard to 
                current and projected employment opportunities, 
                by occupation;
                  [(B) the job skills necessary to obtain such 
                employment opportunities;
                  [(C) the skills and economic development 
                needs of the State; and
                  [(D) the type and availability of workforce 
                investment activities in the State;]
          (4) information describing--
                  (A) the economic conditions in the State;
                  (B) the immediate and long-term skilled 
                workforce needs of in-demand industries, small 
                businesses, and other occupations important to 
                the State economy;
                  (C) the knowledge and skills of the workforce 
                in the State; and
                  (D) workforce development activities 
                (including education and training) in the 
                State;

           *       *       *       *       *       *       *

          [(7) the detailed plans required under section 8 of 
        the Wagner-Peyser Act (29 U.S.C. 49g);
          [(8)(A) a description of the procedures that will be 
        taken by the State to assure coordination of and avoid 
        duplication among--
                  [(i) workforce investment activities 
                authorized under this title;
                  [(ii) other activities authorized under this 
                title;
                  [(iii) programs authorized under the Wagner-
                Peyser Act (29 U.S.C. 49 et seq.), title II of 
                this Act, title I of the Rehabilitation Act of 
                1973 (29 U.S.C. 720 et seq.), part A of title 
                IV of the Social Security Act (42 U.S.C. 601 et 
                seq.), and section 6(d)(4) of the Food and 
                Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)), 
                activities authorized under title V of the 
                Older Americans Act of 1965 (42 U.S.C. 3056 et 
                seq.), and career and technical education 
                activities at the postsecondary level 
                authorized under the Carl D. Perkins Career and 
                Technical Education Act of 2006 (20 U.S.C. 2301 
                et seq.);
                  [(iv) work programs authorized under section 
                6(o) of the Food and Nutrition Act of 2008 (7 
                U.S.C. 2015(o));
                  [(v) activities authorized under chapter 2 of 
                title II of the Trade Act of 1974 (19 U.S.C. 
                2271 et seq.);
                  [(vi) activities authorized under chapter 41 
                of title 38, United States Code;
                  [(vii) employment and training activities 
                carried out under the Community Services Block 
                Grant Act (42 U.S.C. 9901 et seq.);
                  [(viii) activities authorized under the 
                National and Community Service Act of 1990 (42 
                U.S.C. 12501 et seq.);
                  [(ix) employment and training activities 
                carried out by the Department of Housing and 
                Urban Development; and
                  [(x) programs authorized under State 
                unemployment compensation laws (in accordance 
                with applicable Federal law); and
          [(B) a description of the common data collection and 
        reporting processes used for the programs and 
        activities described in subparagraph (A);]
          (7) a description of the State criteria for 
        determining the eligibility of training providers in 
        accordance with section 122, including how the State 
        will take into account the performance of providers and 
        whether the training programs relate to occupations 
        that are in-demand;
          (8)(A) a description of the procedures that will be 
        taken by the State to assure coordination of, and avoid 
        duplication among, the programs and activities 
        identified under section 501(b)(2); and
          (B) a description of common data collection and 
        reporting processes used for the programs and 
        activities described in subparagraph (A), which are 
        carried out by one-stop partners, including--
                  (i) assurances that such processes use 
                quarterly wage records for performance measures 
                described in section 136(b)(2)(A) that are 
                applicable to such programs or activities; or
                  (ii) if such wage records are not being used 
                for the performance measures, an identification 
                of the barriers to using such wage records and 
                a description of how the State will address 
                such barriers within one year of the approval 
                of the plan;
          (9) a description of the process used by the State, 
        consistent with section 111(g), to provide an 
        opportunity for public comment[, including comment by 
        representatives of businesses and representatives of 
        labor organizations,] and input into development of the 
        plan, prior to submission of the plan;

           *       *       *       *       *       *       *

          (11) assurances that the State will provide, in 
        accordance with section 184 for fiscal control and fund 
        accounting procedures that may be necessary to ensure 
        the proper disbursement of, and accounting for, funds 
        paid to the State through the allotments made [under 
        sections 127 and 132] under section 132;
          [(12)(A) a description of the methods and factors the 
        State will use in distributing funds to local areas for 
        youth activities and adult employment and training 
        activities under sections 128(b)(3)(B) and 
        133(b)(3)(B), including--
                  [(i) a description of how the individuals and 
                entities represented on the State board were 
                involved in determining such methods and 
                factors of distribution; and
                  [(ii) a description of how the State 
                consulted with chief elected officials in local 
                areas throughout the State in determining such 
                distribution;
          [(B) assurances that the funds will be distributed 
        equitably throughout the State, and that no local areas 
        will suffer significant shifts in funding from year to 
        year; and
          [(C) a description of the formula prescribed by the 
        Governor pursuant to section 133(b)(2)(B) for the 
        allocation of funds to local areas for dislocated 
        worker employment and training activities;]
          [(13)] (12) information specifying the actions that 
        constitute a conflict of interest prohibited in the 
        State for purposes of sections [111(f)] 111(e) and 
        117(g);
          [(14)]  (13) with respect to the one-stop delivery 
        systems described in section [134(c)] 121(e) (referred 
        to individually in this title as a ``one-stop delivery 
        system''), a description of the strategy of the State 
        for assisting local areas in development and 
        implementation of fully operational one-stop delivery 
        systems in the State;
          [(15)] (14) a description of the appeals process 
        referred to in section [116(a)(5)] 116(a)(4);
          [(16)] (15) a description of the competitive process 
        to be used by the State to award grants and contracts 
        in the State for activities carried out under this 
        title;
          [(17)] (16) with respect to the employment and 
        training activities authorized in section 134--
                  (A) a description of--
                          (i) * * *
                          (ii) how the State will provide rapid 
                        response activities [to dislocated 
                        workers] from funds reserved under 
                        section 133(a)(2) for such purposes, 
                        including the designation of an 
                        identifiable State rapid response 
                        dislocated worker unit to carry out 
                        statewide rapid response activities;
                          (iii) the procedures the local boards 
                        in the State will use to identify 
                        eligible providers of training services 
                        described in section [134(d)(4)] 
                        134(c)(4) (other than on-the-job 
                        training or customized training), as 
                        required under section 122; [and]
                          [(iv) how the State will serve the 
                        employment and training needs of 
                        dislocated workers (including displaced 
                        homemakers), low-income individuals 
                        (including recipients of public 
                        assistance), individuals training for 
                        nontraditional employment, and other 
                        individuals with multiple barriers to 
                        employment (including older individuals 
                        and individuals with disabilities); 
                        and]
                          (iv) how the State will serve the 
                        employment and training needs of 
                        dislocated workers (including displaced 
                        homemakers), low-income individuals 
                        (including recipients of public 
                        assistance such as supplemental 
                        nutrition assistance program benefits 
                        pursuant to the Food and Nutrition Act 
                        of 2008 (7 U.S.C. 2011 et seq.)), long-
                        term unemployed individuals (including 
                        individuals who have exhausted 
                        entitlement to State and Federal 
                        unemployment compensation), English 
                        learners, homeless individuals, 
                        individuals training for nontraditional 
                        employment, youth (including out-of-
                        school youth and at-risk youth), older 
                        workers, ex-offenders, migrant and 
                        seasonal farmworkers, refugee and 
                        entrants, veterans (including disabled 
                        and homeless veterans), and Native 
                        Americans; and
                          (v) how the State will--
                                  (I) consistent with section 
                                188 and Executive Order 13217 
                                (42 U.S.C. 12131 note), serve 
                                the employment and training 
                                needs of individuals with 
                                disabilities; and
                                  (II) consistent with sections 
                                504 and 508 of the 
                                Rehabilitation Act of 1973, 
                                include the provision of 
                                outreach, intake, assessments, 
                                and service delivery, the 
                                development of performance 
                                measures, the training of 
                                staff, and other aspects of 
                                accessibility to programs and 
                                services under this subtitle;
                  (B) an assurance that veterans will be 
                afforded the employment and training activities 
                by the State, [to the extent practicable]  in 
                accordance with the requirements of the Jobs 
                for Veterans Act (Public Law 107-288) and the 
                amendments made by such Act; and
          [(18) with respect to youth activities authorized in 
        section 129, information--
                  [(A) describing the State strategy for 
                providing comprehensive services to eligible 
                youth, particularly those eligible youth who 
                are recognized as having significant barriers 
                to employment;
                  [(B) identifying the criteria to be used by 
                local boards in awarding grants for youth 
                activities, including criteria that the 
                Governor and local boards will use to identify 
                effective and ineffective youth activities and 
                providers of such activities;
                  [(C) describing how the State will coordinate 
                the youth activities carried out in the State 
                under section 129 with the services provided by 
                Job Corps centers in the State (where such 
                centers exist); and
                  [(D) describing how the State will coordinate 
                youth activities described in subparagraph (C) 
                with activities carried out through the youth 
                opportunity grants under section 169.]
          (17) a description of the strategies and services 
        that will be used in the State--
                  (A) to more fully engage employers, including 
                small businesses and employers in in-demand 
                industries and occupations important to the 
                State economy;
                  (B) to meet the needs of employers in the 
                State; and
                  (C) to better coordinate workforce 
                development programs with economic development;
          (18) a description of how the State board will 
        convene (or help to convene) industry or sector 
        partnerships that lead to collaborative planning, 
        resource alignment, and training efforts across 
        multiple firms for a range of workers employed or 
        potentially employed by a targeted industry cluster--
                  (A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in targeted industry 
                clusters;
                  (B) to address the immediate and long-term 
                skilled, workforce needs of in-demand 
                industries and other occupations important to 
                the State economy, and
                  (C) to address critical skill gaps within and 
                across industries;
          (19) a description of how the State will utilize 
        technology to facilitate access to services in remote 
        areas, which may be used throughout the State;
          (20) a description of the State strategy and 
        assistance to be provided for encouraging regional 
        cooperation within the State and across State borders, 
        as appropriate;
          (21) a description of the actions that will be taken 
        by the State to foster communication, coordination, and 
        partnerships with non-profit organizations (including 
        public libraries, community, faith-based, and 
        philanthropic organizations) that provide employment-
        related, training, and complementary services, to 
        enhance the quality and comprehensiveness of services 
        available to participants under this title;
          (22) a description of the process and methodology for 
        determining--
                  (A) one-stop partner program contributions 
                for the cost of the infrastructure of one-stop 
                centers under section 121(h)(1); and
                  (B) the formula for allocating such 
                infrastructure funds to local areas under 
                section 121(h)(3);
          (23) a description of the strategies and services 
        that will be used in the State to assist at-risk youth 
        and out-of-school youth in acquiring the education and 
        skills, credentials (including recognized postsecondary 
        credentials and industry-recognized credentials), and 
        employment experience to succeed in the labor market, 
        including--
                  (A) training and internships in in-demand 
                industries or occupations important to the 
                State and local economy;
                  (B) dropout recovery activities that are 
                designed to lead to the attainment of a regular 
                secondary school diploma or its recognized 
                equivalent, or other State recognized 
                equivalent (including recognized alternative 
                standards for individuals with disabilities); 
                and
                  (C) activities combining remediation of 
                academic skills, work readiness training, and 
                work experience, and including linkages to 
                postsecondary education and training and 
                career-ladder employment; and
          (24) a description of--
                  (A) how the State will furnish employment, 
                training, supportive, and placement services to 
                veterans, including disabled and homeless 
                veterans;
                  (B) the strategies and services that will be 
                used in the State to assist and expedite 
                reintegration of homeless veterans into the 
                labor force; and
                  (C) the veteran population to be served in 
                the State.
  (c) Plan Submission and Approval.--A State plan submitted to 
the Secretary under this section by a Governor shall be 
considered to be approved by the Secretary at the end of the 
90-day period beginning on the day the Secretary receives the 
plan, unless the Secretary makes a written determination, 
during the 90-day [period, that--]
          [(1) the plan is inconsistent with the provisions of 
        this title; or
          [(2) in the case of the portion of the plan described 
        in section 8(a) of the Wagner-Peyser Act (29 U.S.C. 
        49g(a)), the portion does not satisfy the criteria for 
        approval provided in section 8(d) of such Act.] period, 
        that the plan is inconsistent with the provisions of 
        this title.

           *       *       *       *       *       *       *

  (d) Modifications to Plan.--A State may submit modifications 
to a State plan in accordance with the requirements of this 
section and section 111 as necessary during the [5-year] 3-year 
period covered by the plan.

                      CHAPTER 2--LOCAL PROVISIONS

SEC. 116. LOCAL WORKFORCE INVESTMENT AREAS.

  (a) Designation of Areas.--
          (1) In general.--
                  (A) Process.--[Except as provided in 
                subsection (b), and consistent with paragraphs 
                (2), (3), and (4), in] In order for a State to 
                receive an allotment under section [127 or] 
                132, the Governor of the State shall designate 
                local workforce investment areas within the 
                State--
                          (i) * * *

           *       *       *       *       *       *       *

                  [(B) Considerations.--In making the 
                designation of local areas, the Governor shall 
                take into consideration the following:
                          [(i) Geographic areas served by local 
                        educational agencies and intermediate 
                        educational agencies.
                          [(ii) Geographic areas served by 
                        postsecondary educational institutions 
                        and area vocational education schools.
                          [(iii) The extent to which such local 
                        areas are consistent with labor market 
                        areas.
                          [(iv) The distance that individuals 
                        will need to travel to receive services 
                        provided in such local areas.
                          [(v) The resources of such local 
                        areas that are available to effectively 
                        administer the activities carried out 
                        under this subtitle.]
                  (B) Considerations.--In making the 
                designation of local areas, the Governor shall 
                take into consideration the following:
                          (i) The extent to which such local 
                        areas are consistent with labor market 
                        areas.
                          (ii) The extent to which labor market 
                        areas align with economic development 
                        regions.
                          (iii) Whether such local areas have 
                        the appropriate education and training 
                        providers to meet the needs of the 
                        local workforce.
                          (iv) The distance that individuals 
                        will need to travel to receive services 
                        provided in such local areas.
          [(2) Automatic designation.--The Governor shall 
        approve any request for designation as a local area--
                  [(A) from any unit of general local 
                government with a population of 500,000 or 
                more;
                  [(B) of the area served by a rural 
                concentrated employment program grant recipient 
                of demonstrated effectiveness that served as a 
                service delivery area or substate area under 
                the Job Training Partnership Act, if the grant 
                recipient has submitted the request; and
                  [(C) of an area that served as a service 
                delivery area under section 101(a)(4)(A)(ii) of 
                the Job Training Partnership Act (as in effect 
                on the day before the date of enactment of this 
                Act) in a State that has a population of not 
                more than 1,100,000 and a population density 
                greater than 900 persons per square mile.
          [(3) Temporary and subsequent designation.--
                  [(A) Criteria.--Notwithstanding paragraph 
                (2)(A), the Governor shall approve any request, 
                made not later than the date of submission of 
                the initial State plan under this subtitle, for 
                temporary designation as a local area from any 
                unit of general local government (including a 
                combination of such units) with a population of 
                200,000 or more that was a service delivery 
                area under the Job Training Partnership Act on 
                the day before the date of enactment of this 
                Act if the Governor determines that the area--
                          [(i) performed successfully, in each 
                        of the last 2 years prior to the 
                        request for which data are available, 
                        in the delivery of services to 
                        participants under part A of title II 
                        and title III of the Job Training 
                        Partnership Act (as in effect on such 
                        day); and
                          [(ii) has sustained the fiscal 
                        integrity of the funds used by the area 
                        to carry out activities under such part 
                        and title.
                  [(B) Duration and subsequent designation.--A 
                temporary designation under this paragraph 
                shall be for a period of not more than 2 years, 
                after which the designation shall be extended 
                until the end of the period covered by the 
                State plan if the Governor determines that, 
                during the temporary designation period, the 
                area substantially met (as defined by the State 
                board) the local performance measures for the 
                local area and sustained the fiscal integrity 
                of the funds used by the area to carry out 
                activities under this subtitle.
                  [(C) Technical assistance.--The Secretary 
                shall provide the States with technical 
                assistance in making the determinations 
                required by this paragraph. The Secretary shall 
                not issue regulations governing determinations 
                to be made under this paragraph.
                  [(D) Performed successfully.--In this 
                paragraph, the term ``performed successfully'' 
                means that the area involved met or exceeded 
                the performance standards for activities 
                administered in the area that--
                          [(i) are established by the Secretary 
                        for each year and modified by the 
                        adjustment methodology of the State 
                        (used to account for differences in 
                        economic conditions, participant 
                        characteristics, and combination of 
                        services provided from the combination 
                        assumed for purposes of the established 
                        standards of the Secretary); and
                          [(ii)(I) if the area was designated 
                        as both a service delivery area and a 
                        substate area under the Job Training 
                        Partnership Act (as in effect on the 
                        day before the date of enactment of 
                        this Act)--
                                  [(aa) relate to job retention 
                                and earnings, with respect to 
                                activities carried out under 
                                part A of title II of such Act 
                                (as in effect on such day); and
                                  [(bb) relate to entry into 
                                employment, with respect to 
                                activities carried out under 
                                title III of such Act (as in 
                                effect on such day);
                          [(II) if the area was designated only 
                        as a service delivery area under such 
                        Act (as in effect on such day), relate 
                        to the standards described in subclause 
                        (I)(aa); or
                          [(III) if the area was only 
                        designated as a substate area under 
                        such Act (as in effect on such day), 
                        relate to the standards described in 
                        subclause (I)(bb).
                  [(E) Sustained the fiscal integrity.--In this 
                paragraph, the term ``sustained the fiscal 
                integrity'', used with respect to funds used by 
                a service delivery area or local area, means 
                that the Secretary has not made a final 
                determination during any of the last 3 years 
                for which data are available, prior to the date 
                of the designation request involved, that 
                either the grant recipient or the 
                administrative entity of the area misexpended 
                the funds due to willful disregard of the 
                requirements of the Act involved, gross 
                negligence, or failure to observe accepted 
                standards of administration.
          [(4) Designation on recommendation of state board.--
        The Governor may approve a request from any unit of 
        general local government (including a combination of 
        such units) for designation (including temporary 
        designation) as a local area if the State board 
        determines, taking into account the factors described 
        in clauses (i) through (v) of paragraph (1)(B), and 
        recommends to the Governor, that such area should be so 
        designated.]
          (2) Technical assistance.--The Secretary shall, if 
        requested by the Governor of a State, provide the State 
        with technical assistance in making the determinations 
        required under paragraph (1). The Secretary shall not 
        issue regulations governing determinations to be made 
        under paragraph (1).
          (3) Designation on recommendation of state board.--
        The Governor may approve a request from any unit of 
        general local government (including a combination of 
        such units) for designation as a local area under 
        paragraph (1) if the State board determines, taking 
        into account the factors described in clauses (i) 
        through (iv) of paragraph (1)(B), and recommends to the 
        Governor, that such area shall be so designated.
          [(5)] (4) Appeals.--A unit of general local 
        government (including a combination of such units) or 
        grant recipient that requests but is not granted 
        designation of an area as a local area under paragraph 
        (2) or (3) may submit an appeal to the State board 
        under an appeal process established in the State plan. 
        If the appeal does not result in such a designation, 
        the Secretary, after receiving a request for review 
        from the unit or grant recipient and on determining 
        that the unit or grant recipient was not accorded 
        procedural rights under the appeal process established 
        in the State plan or that the area meets the 
        requirements of paragraph (2) or (3), as appropriate, 
        may require that the area be designated as a local area 
        under such paragraph.
  [(b) Small States.--The Governor of any State that was a 
single State service delivery area under the Job Training 
Partnership Act as of July 1, 1998, may designate the State as 
a single State local area for the purposes of this title. In 
the case of such a designation, the Governor shall identify the 
State as a local area under section 112(b)(5).]
  (b) Single States.--Consistent with subsection (a)(1)(B), the 
Governor may designate a State as a single State local area for 
the purposes of this title.
  (c) Regional Planning and Cooperation.--
          (1) Planning.--As part of the process for developing 
        the State plan, a State may require regional planning 
        by local boards for a designated region in the State. 
        The State may require the local boards for a designated 
        region to participate in a regional planning process 
        that results in the establishment of regional 
        performance measures for workforce investment 
        activities authorized under this subtitle. The State 
        may award regional incentive grants to the designated 
        regions that meet or exceed the regional performance 
        measures. The State may require the local boards for 
        the designated region to prepare a single regional plan 
        that incorporates the elements of the local plan under 
        section 118 and that is submitted and approved in lieu 
        of separate local plans under such section.
          (2) Information sharing.--The State may require the 
        local boards for a designated region to share, in 
        feasible cases, [employment statistics] workforce and 
        labor market information, information about employment 
        opportunities and trends, and other types of 
        information that would assist in improving the 
        performance of all local areas in the designated region 
        on local performance measures.

           *       *       *       *       *       *       *

SEC. 117. LOCAL WORKFORCE INVESTMENT BOARDS.

  (a) * * *
  (b) Membership.--
          (1) State criteria.--The Governor of the State, in 
        partnership with the State board, shall establish 
        criteria for use by chief elected officials in the 
        local areas for appointment of members of the local 
        boards in such local areas in accordance with the 
        requirements of paragraph (2).
          (2) Composition.--Such criteria shall require, at a 
        minimum, that the membership of each local board--
                  (A) shall [include--]
                          [(i) representatives] include 
                        representatives of business in the 
                        local area, who--
                          [(I)] (i) are owners of businesses, 
                        chief executives or operating officers 
                        of businesses, and other business 
                        executives or employers with optimum 
                        policymaking or hiring authority;
                          [(II) represent businesses with 
                        employment opportunities that reflect 
                        the employment opportunities of the 
                        local area; and]
                          (ii) represent businesses, including 
                        large and small businesses, with 
                        immediate and long-term employment 
                        opportunities in in-demand industries 
                        and other occupations important to the 
                        local economy; and
                          [(III)] (iii) are appointed from 
                        among individuals nominated by local 
                        business organizations and business 
                        trade associations; and
                          [(ii) representatives of local 
                        educational entities, including 
                        representatives of local educational 
                        agencies, local school boards, entities 
                        providing adult education and literacy 
                        activities, and postsecondary 
                        educational institutions (including 
                        representatives of community colleges, 
                        where such entities exist), selected 
                        from among individuals nominated by 
                        regional or local educational agencies, 
                        institutions, or organizations 
                        representing such local educational 
                        entities;
                          [(iii) representatives of labor 
                        organizations (for a local area in 
                        which employees are represented by 
                        labor organizations), nominated by 
                        local labor federations, or (for a 
                        local area in which no employees are 
                        represented by such organizations), 
                        other representatives of employees;]
                          [(iv) representatives of community-
                        based organizations (including 
                        organizations representing individuals 
                        with disabilities and veterans, for a 
                        local area in which such organizations 
                        are present);
                          [(v) representatives of economic 
                        development agencies, including private 
                        sector economic development entities; 
                        and
                          [(vi) representatives of each of the 
                        one-stop partners; and
                  [(B) may include such other individuals or 
                representatives of entities as the chief 
                elected official in the local area may 
                determine to be appropriate.]
                  (B) may include such other individuals or 
                representatives of entities as the chief 
                elected official in the local area may 
                determine to be appropriate, including--
                          (i) a superintendent of the local 
                        secondary school system or the 
                        president or chief executive officer of 
                        a postsecondary educational institution 
                        (including a community college, where 
                        such an entity exists);
                          (ii) representatives of community-
                        based organizations (including 
                        organizations representing individuals 
                        with disabilities and veterans, for a 
                        local area in which such organizations 
                        are present); or
                          (iii) representatives of veterans 
                        service organizations.

           *       *       *       *       *       *       *

          (4) Majority.--[A majority] A 2/3 majority of the 
        members of the local board shall be representatives 
        described in paragraph [(2)(A)(i)] (2)(A).
          (5) Chairperson.--The local board shall elect a 
        chairperson for the local board from among the 
        representatives described in paragraph [(2)(A)(i)] 
        (2)(A).
  (c) Appointment and Certification of Board.--
          (1) Appointment of board members and assignment of 
        responsibilities.--
                  (A) * * *

           *       *       *       *       *       *       *

                  [(C) Concentrated employment programs.--In 
                the case of a local area designated in 
                accordance with section 116(a)(2)(B), the 
                governing body of the concentrated employment 
                program involved shall act in consultation with 
                the chief elected official in the local area to 
                appoint members of the local board, in 
                accordance with the State criteria established 
                under subsection (b), and to carry out any 
                other responsibility relating to workforce 
                investment activities assigned to such official 
                under this Act.]

           *       *       *       *       *       *       *

  [(d) Functions of Local Board.--The functions of the local 
board shall include the following:
          [(1) Local plan.--Consistent with section 118, each 
        local board, in partnership with the chief elected 
        official for the local area involved, shall develop and 
        submit a local plan to the Governor.
          [(2) Selection of operators and providers.--
                  [(A) Selection of one-stop operators.--
                Consistent with section 121(d), the local 
                board, with the agreement of the chief elected 
                official--
                          [(i) shall designate or certify one-
                        stop operators as described in section 
                        121(d)(2)(A); and
                          [(ii) may terminate for cause the 
                        eligibility of such operators.
                  [(B) Selection of youth providers.--
                Consistent with section 123, the local board 
                shall identify eligible providers of youth 
                activities in the local area by awarding grants 
                or contracts on a competitive basis, based on 
                the recommendations of the youth council.
                  [(C) Identification of eligible providers of 
                training services.--Consistent with section 
                122, the local board shall identify eligible 
                providers of training services described in 
                section 134(d)(4) in the local area.
                  [(D) Identification of eligible providers of 
                intensive services.--If the one-stop operator 
                does not provide intensive services in a local 
                area, the local board shall identify eligible 
                providers of intensive services described in 
                section 134(d)(3) in the local area by awarding 
                contracts.
          [(3) Budget and administration.--
                  [(A) Budget.--The local board shall develop a 
                budget for the purpose of carrying out the 
                duties of the local board under this section, 
                subject to the approval of the chief elected 
                official.
                  [(B) Administration.--
                          [(i) Grant recipient.--
                                  [(I) In general.--The chief 
                                elected official in a local 
                                area shall serve as the local 
                                grant recipient for, and shall 
                                be liable for any misuse of, 
                                the grant funds allocated to 
                                the local area under sections 
                                128 and 133, unless the chief 
                                elected official reaches an 
                                agreement with the Governor for 
                                the Governor to act as the 
                                local grant recipient and bear 
                                such liability.
                                  [(II) Designation.--In order 
                                to assist in the administration 
                                of the grant funds, the chief 
                                elected official or the 
                                Governor, where the Governor 
                                serves as the local grant 
                                recipient for a local area, may 
                                designate an entity to serve as 
                                a local grant subrecipient for 
                                such funds or as a local fiscal 
                                agent. Such designation shall 
                                not relieve the chief elected 
                                official or the Governor of the 
                                liability for any misuse of 
                                grant funds as described in 
                                subclause (I).
                                  [(III) Disbursal.--The local 
                                grant recipient or an entity 
                                designated under subclause (II) 
                                shall disburse such funds for 
                                workforce investment activities 
                                at the direction of the local 
                                board, pursuant to the 
                                requirements of this title, if 
                                the direction does not violate 
                                a provision of this Act. The 
                                local grant recipient or entity 
                                designated under subclause (II) 
                                shall disburse the funds 
                                immediately on receiving such 
                                direction from the local board.
                          [(ii) Staff.--The local board may 
                        employ staff.
                          [(iii) Grants and donations.--The 
                        local board may solicit and accept 
                        grants and donations from sources other 
                        than Federal funds made available under 
                        this Act.
          [(4) Program oversight.--The local board, in 
        partnership with the chief elected official, shall 
        conduct oversight with respect to local programs of 
        youth activities authorized under section 129, local 
        employment and training activities authorized under 
        section 134, and the one-stop delivery system in the 
        local area.
          [(5) Negotiation of local performance measures.--The 
        local board, the chief elected official, and the 
        Governor shall negotiate and reach agreement on local 
        performance measures as described in section 136(c).
          [(6) Employment statistics system.--The local board 
        shall assist the Governor in developing the statewide 
        employment statistics system described in section 15(e) 
        of the Wagner-Peyser Act.
          [(7) Employer linkages.--The local board shall 
        coordinate the workforce investment activities 
        authorized under this subtitle and carried out in the 
        local area with economic development strategies and 
        develop other employer linkages with such activities.
          [(8) Connecting, brokering, and coaching.--The local 
        board shall promote the participation of private sector 
        employers in the statewide workforce investment system 
        and ensure the effective provision, through the system, 
        of connecting, brokering, and coaching activities, 
        through intermediaries such as the one-stop operator in 
        the local area or through other organizations, to 
        assist such employers in meeting hiring needs.]
  (d) Functions of Local Board.--The functions of the local 
board shall include the following:
          (1) Local plan.--Consistent with section 118, each 
        local board, in partnership with the chief elected 
        official for the local area involved, shall develop and 
        submit a local plan to the Governor.
          (2) Workforce research and regional labor market 
        analysis.--
                  (A) In general.--The local board shall--
                          (i) conduct, and regularly update, an 
                        analysis of--
                                  (I) the economic conditions 
                                in the local area;
                                  (II) the immediate and long-
                                term skilled workforce needs of 
                                in-demand industries and other 
                                occupations important to the 
                                local economy;
                                  (III) the knowledge and 
                                skills of the workforce in the 
                                local area; and
                                  (IV) workforce development 
                                activities (including education 
                                and training) in the local 
                                area; and
                          (ii) assist the Governor in 
                        developing the statewide workforce and 
                        labor market information system 
                        described in section 15(e) of the 
                        Wagner-Peyser Act.
                  (B) Existing analysis.--A local board may use 
                existing analysis by the local economic 
                development agency or related entity in order 
                to carry out requirements of subparagraph 
                (A)(i).
          (3) Employer engagement.--The local Board shall meet 
        the needs of employers and support economic growth in 
        the local area by enhancing communication, 
        coordination, and collaboration among employers, 
        economic development agencies, and service providers.
          (4) Budget and administration.--
                  (A) Budget.--
                          (i) In general.--The local board 
                        shall develop a budget for the 
                        activities of the local board in the 
                        local area, consistent with the 
                        requirements of this subsection.
                          (ii) Training reservation.--In 
                        developing a budget under clause (i), 
                        the local board shall reserve a 
                        percentage of funds to carry out the 
                        activities specified in section 
                        134(c)(4). The local board shall use 
                        the analysis conducted under paragraph 
                        (2)(A)(i) to determine the appropriate 
                        percentage of funds to reserve under 
                        this clause.
                  (B) Administration.--
                          (i) Grant recipient.--
                                  (I) In general.--The chief 
                                elected official in a local 
                                area shall serve as the local 
                                grant recipient for, and shall 
                                be liable for any misuse of, 
                                the grant funds allocated to 
                                the local area under section 
                                133, unless the chief elected 
                                official reaches an agreement 
                                with the Governor for the 
                                Governor to act as the local 
                                grant recipient and bear such 
                                liability.
                                  (II) Designation.--In order 
                                to assist in administration of 
                                the grant funds, the chief 
                                elected official or the 
                                Governor, where the Governor 
                                serves as the local grant 
                                recipient for a local area, may 
                                designate an entity to serve as 
                                a local grant subrecipient for 
                                such funds or as a local fiscal 
                                agent. Such designation shall 
                                not relieve the chief elected 
                                official or the Governor of the 
                                liability for any misuse of 
                                grant funds as described in 
                                subclause (I).
                                  (III) Disbursal.--The local 
                                grant recipient or an entity 
                                designated under subclause (II) 
                                shall disburse the grant funds 
                                for workforce investment 
                                activities at the direction of 
                                the local board, pursuant to 
                                the requirements of this title. 
                                The local grant recipient or 
                                entity designated under 
                                subclause (II) shall disburse 
                                the funds immediately on 
                                receiving such direction from 
                                the local board.
                          (ii) Staff.--The local board may 
                        employ staff to assist in carrying out 
                        the functions described in this 
                        subsection.
                          (iii) Grants and donations.--The 
                        local board may solicit and accept 
                        grants and donations from sources other 
                        than Federal funds made available under 
                        this Act.
          (5) Selection of operators and providers.--
                  (A) Selection of one-stop operators.--
                Consistent with section 121(d), the local 
                board, with the agreement of the chief elected 
                official--
                          (i) shall designate or certify one-
                        stop operators as described in section 
                        121(d)(2)(A); and
                          (ii) may terminate for cause the 
                        eligibility of such operators.
                  (B) Identification of eligible training 
                service providers.--Consistent with this 
                subtitle, the local board shall identify 
                eligible providers of training services 
                described in section 134(c)(4), in the local 
                area.
                  (C) Identification of eligible providers of 
                work ready services.--If the one-stop operator 
                does not provide the services described in 
                section 134(c)(2) in the local area, the local 
                board shall identify eligible providers of such 
                services in the local area by awarding 
                contracts.
          (6) Program oversight.--The local board, in 
        partnership with the chief elected official, shall be 
        responsible for--
                  (A) ensuring the appropriate use of 
                management of the funds provided for local 
                employment and training activities authorized 
                under section 134(b); and
                  (B) conducting oversight of the one-stop 
                delivery system in the local area authorized 
                under section 121.
          (7) Negotiation of local performance measures.--The 
        local board, the chief elected official, and the 
        Governor shall negotiate and reach agreement on local 
        performance measures as described in section 136(c).
          (8) Technology improvements.--The local board shall 
        develop strategies for technology improvements to 
        facilitate access to services authorized under this 
        subtitle and carried out in the local area, including 
        in remote areas.
  (e) Sunshine Provision.--The local board shall make available 
to the public, on a regular basis through electronic means and 
open meetings, information regarding the activities of the 
local board, including information regarding the local plan 
prior to submission of the plan, and regarding membership, the 
designation and certification of one-stop operators, [and the 
award of grants or contracts to eligible providers of youth 
activities,] and on request, minutes of formal meetings of the 
local board.
  (f) Limitations.--
          (1) Training services.--
                  (A) In general.--Except as provided in 
                subparagraph (B), no local board may provide 
                training services described in [section 
                134(d)(4)] section 134(c)(4).

           *       *       *       *       *       *       *

          [(2) Core services; intensive services; designation 
        or certification as one-stop operators.--A local board 
        may provide core services described in section 
        134(d)(2) or intensive services described in section 
        134(d)(3) through a one-stop delivery system described 
        in section 134(c) or be designated or certified as a 
        one-stop operator only with the agreement of the chief 
        elected official and the Governor.]
          (2) Work ready services, designation, or 
        certification as one-stop operators.--A local board may 
        provide work ready services described in section 
        134(c)(2) through a one-stop delivery system described 
        in section 121 or be designated or certified as a one-
        stop operator only with the agreement of the chief 
        elected official and the Governor.

           *       *       *       *       *       *       *

  (g) Conflict of Interest.--A member of a local board may 
not--
          (1) vote or participate in action taken on a matter 
        under consideration by the local board--
                  (A) * * *

           *       *       *       *       *       *       *

  [(h) Youth Council.--
          [(1) Establishment.--There shall be established, as a 
        subgroup within each local board, a youth council 
        appointed by the local board, in cooperation with the 
        chief elected official for the local area.
          [(2) Membership.--The membership of each youth 
        council--
                  [(A) shall include--
                          [(i) members of the local board 
                        described in subparagraph (A) or (B) of 
                        subsection (b)(2) with special interest 
                        or expertise in youth policy;
                          [(ii) representatives of youth 
                        service agencies, including juvenile 
                        justice and local law enforcement 
                        agencies;
                          [(iii) representatives of local 
                        public housing authorities;
                          [(iv) parents of eligible youth 
                        seeking assistance under this subtitle;
                          [(v) individuals, including former 
                        participants, and representatives of 
                        organizations, that have experience 
                        relating to youth activities; and
                          [(vi) representatives of the Job 
                        Corps, as appropriate; and
                  [(B) may include such other individuals as 
                the chairperson of the local board, in 
                cooperation with the chief elected official, 
                determines to be appropriate.
          [(3) Relationship to local board.--Members of the 
        youth council who are not members of the local board 
        described in subparagraphs (A) and (B) of subsection 
        (b)(2) shall be voting members of the youth council and 
        nonvoting members of the board.
          [(4) Duties.--The duties of the youth council 
        include--
                  [(A) developing the portions of the local 
                plan relating to eligible youth, as determined 
                by the chairperson of the local board;
                  [(B) subject to the approval of the local 
                board and consistent with section 123--
                          [(i) recommending eligible providers 
                        of youth activities, to be awarded 
                        grants or contracts on a competitive 
                        basis by the local board to carry out 
                        the youth activities; and
                          [(ii) conducting oversight with 
                        respect to the eligible providers of 
                        youth activities, in the local area;
                  [(C) coordinating youth activities authorized 
                under section 129 in the local area; and
                  [(D) other duties determined to be 
                appropriate by the chairperson of the local 
                board.
  [(i) Alternative Entity.--
          [(1) In general.--For purposes of complying with 
        subsections (a), (b), and (c), and paragraphs (1) and 
        (2) of subsection (h), a State may use any local entity 
        (including a local council, regional workforce 
        development board, or similar entity) that--
                  [(A) is established to serve the local area 
                (or the service delivery area that most closely 
                corresponds to the local area);
                  [(B) is in existence on December 31, 1997;
                  [(C)(i) is established pursuant to section 
                102 of the Job Training Partnership Act, as in 
                effect on December 31, 1997; or
                  [(ii) is substantially similar to the local 
                board described in subsections (a), (b), and 
                (c), and paragraphs (1) and (2) of subsection 
                (h); and
                  [(D) includes--
                          [(i) representatives of business in 
                        the local area; and
                          [(ii)(I) representatives of labor 
                        organizations (for a local area in 
                        which employees are represented by 
                        labor organizations), nominated by 
                        local labor federations; or
                          [(II) other representatives of 
                        employees in the local area (for a 
                        local area in which no employees are 
                        represented by such organizations).
          [(2) References.--References in this Act to a local 
        board or a youth council shall be considered to include 
        such an entity or a subgroup of such an entity, 
        respectively.]

SEC. 118. LOCAL PLAN.

  (a) In General.--Each local board shall develop and submit to 
the Governor a comprehensive [5-year] 3-year local plan 
(referred to in this title as the ``local plan''), in 
partnership with the appropriate chief elected official. The 
plan shall be consistent with the State plan.
  [(b) Contents.--The local plan shall include--
          [(1) an identification of--
                  [(A) the workforce investment needs of 
                businesses, jobseekers, and workers in the 
                local area;
                  [(B) the current and projected employment 
                opportunities in the local area; and
                  [(C) the job skills necessary to obtain such 
                employment opportunities;
          [(2) a description of the one-stop delivery system to 
        be established or designated in the local area, 
        including--
                  [(A) a description of how the local board 
                will ensure the continuous improvement of 
                eligible providers of services through the 
                system and ensure that such providers meet the 
                employment needs of local employers and 
                participants; and
                  [(B) a copy of each memorandum of 
                understanding described in section 121(c) 
                (between the local board and each of the one-
                stop partners) concerning the operation of the 
                one-stop delivery system in the local area;
          [(3) a description of the local levels of performance 
        negotiated with the Governor and chief elected official 
        pursuant to section 136(c), to be used to measure the 
        performance of the local area and to be used by the 
        local board for measuring the performance of the local 
        fiscal agent (where appropriate), eligible providers, 
        and the one-stop delivery system, in the local area;
          [(4) a description and assessment of the type and 
        availability of adult and dislocated worker employment 
        and training activities in the local area;
          [(5) a description of how the local board will 
        coordinate workforce investment activities carried out 
        in the local area with statewide rapid response 
        activities, as appropriate;
          [(6) a description and assessment of the type and 
        availability of youth activities in the local area, 
        including an identification of successful providers of 
        such activities;
          [(7) a description of the process used by the local 
        board, consistent with subsection (c), to provide an 
        opportunity for public comment, including comment by 
        representatives of businesses and comment by 
        representatives of labor organizations, and input into 
        the development of the local plan, prior to submission 
        of the plan;
          [(8) an identification of the entity responsible for 
        the disbursal of grant funds described in section 
        117(d)(3)(B)(i)(III), as determined by the chief 
        elected official or the Governor under section 
        117(d)(3)(B)(i);
          [(9) a description of the competitive process to be 
        used to award the grants and contracts in the local 
        area for activities carried out under this subtitle; 
        and
          [(10) such other information as the Governor may 
        require.]
  (b) Contents.--The local plan shall include--
          (1) a description of the analysis of the local area's 
        economic and workforce conditions conducted under 
        section 117(d)(2)(A)(i), and an assurance that the 
        local board will use such analysis to carry out the 
        activities under this subtitle;
          (2) a description of the one-stop delivery system in 
        the local area, including--
                  (A) a description of how the local board will 
                ensure--
                          (i) the continuous improvement of 
                        eligible providers of services through 
                        the system; and
                          (ii) that such providers meet the 
                        employment needs of local businesses 
                        and participants; and
                  (B) a description of how the local board will 
                facilitate access to services provided through 
                the one-stop delivery system consistent with 
                section 117(d)(8);
          (3) a description of the strategies and services that 
        will be used in the local area--
                  (A) to more fully engage employers, including 
                small businesses and employers in in-demand 
                industries and occupations important to the 
                local economy;
                  (B) to meet the needs of employers in the 
                local area;
                  (C) to better coordinate workforce 
                development programs with economic development; 
                and
                  (D) to better coordinate workforce 
                development programs with employment, training, 
                and literacy services carried out by nonprofit 
                organizations, including libraries, as 
                appropriate;
          (4) a description of how the local board will convene 
        (or help to convene) industry or sector partnerships 
        that lead to collaborative planning, resource 
        alignment, and training efforts across multiple firms 
        for a range of workers employed or potentially employed 
        by a targeted industry cluster--
                  (A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in targeted industry 
                clusters;
                  (B) to address the immediate and long-term 
                skilled workforce needs of in-demand 
                industries, small businesses, and other 
                occupations important to the State economy; and
                  (C) to address critical skill gaps within and 
                across industries;
          (5) a description of how the funds reserved under 
        section 117(d)(4)(A)(ii) will be used to carry out 
        activities described in section 134(c)(4);
          (6) a description of how the local board will 
        coordinate workforce investment activities carried out 
        in the local area with statewide activities, as 
        appropriate;
          (7) a description of how the local area will--
                  (A) coordinate activities with the local 
                area's disability community and with services 
                provided under section 614(d)(1)(A)(i)(VIII) of 
                the Individuals with Disabilities Education Act 
                (20 U.S.C. 1414(d)(1)(A)(i)(VIII)) by local 
                educational agencies serving such local area to 
                make available comprehensive, high-quality 
                services to individuals with disabilities;
                  (B) consistent with section 188 and Executive 
                Order 13217 (42 U.S.C. 12131 note), serve the 
                employment and training needs of individuals 
                with disabilities; and
                  (C) consistent with sections 504 and 508 of 
                the Rehabilitation Act of 1973, include the 
                provision of outreach, intake, assessments, and 
                service delivery, the development of 
                performance measures, the training of staff, 
                and other aspects of accessibility to programs 
                and services under this subtitle;
          (8) a description of the local levels of performance 
        negotiated with the Governor and chief elected official 
        pursuant to section 136(c), to be--
                  (A) used to measure the performance of the 
                local area; and
                  (B) used by the local board for measuring 
                performance of the local fiscal agent (where 
                appropriate), eligible providers, and the one-
                stop delivery system, in the local area;
          (9) a description of the process used by the local 
        board, consistent with subsection (c), to provide an 
        opportunity for public comment prior to submission of 
        the plan;
          (10) a description of how the local area will serve 
        the employment and training needs of dislocated workers 
        (including displaced homemakers), low-income 
        individuals (including recipients of public assistance 
        such as the Supplemental Nutrition Assistance Program), 
        long-term unemployed individuals (including individuals 
        who have exhausted entitlement to State and Federal 
        unemployment compensation), English learners, homeless 
        individuals, individuals training for nontraditional 
        employment, youth (including out-of-school youth and 
        at-risk youth), older workers, ex-offenders, migrant 
        and seasonal farmworkers, refugee and entrants, 
        veterans (including disabled veterans and homeless 
        veterans), and Native Americans;
          (11) an identification of the entity responsible for 
        the disbursal of grant funds described in subclause 
        (III) of section 117(d)(4)(B)(i), as determined by the 
        chief elected official or the Governor under such 
        section;
          (12) a description of the strategies and services 
        that will be used in the local area to assist at-risk 
        youth and out-of-school youth in acquiring the 
        education and skills, credentials (including recognized 
        postsecondary credentials and industry-recognized 
        credentials), and employment experience to succeed in 
        the labor market, including--
                  (A) training and internships in in-demand 
                industries or occupations important to the 
                State and local economy;
                  (B) dropout recovery activities that are 
                designed to lead to the attainment of a regular 
                secondary school diploma or its recognized 
                equivalent, or other State recognized 
                equivalent (including recognized alternative 
                standards for individuals with disabilities); 
                and
                  (C) activities combining remediation of 
                academic skills, work readiness training, and 
                work experience, and including linkages to 
                postsecondary education and training and 
                career-ladder employment;
          (13) a description of--
                  (A) how the local area will furnish 
                employment, training, supportive, and placement 
                services to veterans, including disabled and 
                homeless veterans;
                  (B) the strategies and services that will be 
                used in the local area to assist and expedite 
                reintegration of homeless veterans into the 
                labor force; and
                  (C) the veteran population to be served in 
                the local area;
          (14) a description of--
                  (A) the duties assigned to the veteran 
                employment specialist consistent with the 
                requirements of section 134(f);
                  (B) the manner in which the veteran 
                employment specialist is integrated into the 
                One-Stop Career System described in section 
                121;
                  (C) the date on which the veteran employment 
                specialist was assigned; and
                  (D) whether the veteran employment specialist 
                has satisfactorily competed such training by 
                the National Veterans' Employment and Training 
                Services Institute; and
          (15) such other information as the Governor may 
        require.
  (c) Process.--Prior to the date on which the local board 
submits a local plan under this section, the local board 
shall--
          (1) make available copies of a proposed local plan to 
        the public through [such means] electronic means such 
        as public hearings and local news media;
          (2) allow members of the local board and members of 
        the public[, including representatives of business and 
        representatives of labor organizations,] to submit 
        comments on the proposed local plan to the local board, 
        not later than the end of the 30-day period beginning 
        on the date on which the proposed local plan is made 
        available; and

           *       *       *       *       *       *       *

          CHAPTER 3--WORKFORCE INVESTMENT ACTIVITIES PROVIDERS

SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.

  (a) * * *
  (b) One-Stop Partners.--
          (1) Required partners.--
                  [(A) In general.--Each entity that carries 
                out a program or activities described in 
                subparagraph (B) shall--
                          [(i) make available to participants, 
                        through a one-stop delivery system, the 
                        services described in section 134(d)(2) 
                        that are applicable to such program or 
                        activities; and
                          [(ii) participate in the operation of 
                        such system consistent with the terms 
                        of the memorandum described in 
                        subsection (c), and with the 
                        requirements of the Federal law in 
                        which the program or activities are 
                        authorized.]
                  (A) Roles and responsibilities of one-stop 
                partners.--Each entity that carries out a 
                program or activities described in subparagraph 
                (B) shall--
                          (i) provide access through the one-
                        stop delivery system to the programs 
                        and activities carried out by the 
                        entity, including making the work ready 
                        services described in section 134(c)(2) 
                        that are applicable to the program of 
                        the entity available at the one-stop 
                        centers (in addition to any other 
                        appropriate locations);
                          (ii) use a portion of the funds 
                        available to the program of the entity 
                        to maintain the one-stop delivery 
                        system, including payment of the 
                        infrastructure costs of one-stop 
                        centers in accordance with subsection 
                        (h);
                          (iii) enter into a local memorandum 
                        of understanding with the local board 
                        relating to the operation of the one-
                        stop delivery system that meets the 
                        requirements of subsection (c); and
                          (iv) participate in the operation of 
                        the one-stop delivery system consistent 
                        with the terms of the memorandum of 
                        understanding, the requirements of this 
                        title, and the requirements of the 
                        Federal laws authorizing the programs 
                        carried out by the entity.
                  (B) Programs and activities.--The programs 
                and activities referred to in subparagraph (A) 
                consist of--
                          (i) * * *

           *       *       *       *       *       *       *

                          [(vi) activities authorized under 
                        title V of the Older Americans Act of 
                        1965 (42 U.S.C. 3056 et seq.);]
                          [(vii)] (vi) career and technical 
                        education activities at the 
                        postsecondary level authorized under 
                        the Carl D. Perkins Career and 
                        Technical Education Act of 2006 (20 
                        U.S.C. 2301 et seq.);
                          [(viii)] (vii) activities authorized 
                        under chapter 2 of title II of the 
                        Trade Act of 1974 (19 U.S.C. 2271 et 
                        seq.);
                          [(ix)] (viii) activities authorized 
                        under chapter 41 of title 38, United 
                        States Code;
                          [(x)] (ix) employment and training 
                        activities carried out under the 
                        Community Services Block Grant Act (42 
                        U.S.C. 9901 et seq.);
                          [(xi)] (x) employment and training 
                        activities carried out by the 
                        Department of Housing and Urban 
                        Development; and
                          [(xii)] (xi) programs authorized 
                        under State unemployment compensation 
                        laws (in accordance with applicable 
                        Federal law).
          (2) Additional partners.--
                  (A) In general.--In addition to the entities 
                described in paragraph (1), other entities that 
                carry out a human resource program described in 
                subparagraph (B) may--
                          (i) make available to participants, 
                        through the one-stop delivery system, 
                        the services described in [section 
                        134(d)(2)] section 134(c)(2) that are 
                        applicable to such program; and

           *       *       *       *       *       *       *

                if the local board and chief elected official 
                involved approve such participation.
                  (B) Programs.--The programs referred to in 
                subparagraph (A) may include--
                          (i) * * *
                          [(ii) programs authorized under 
                        section 6(d)(4) of the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 
                        2015(d)(4));]
                          [(iii)] (ii) work programs authorized 
                        under section 6(o) of the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 
                        2015(o));
                          [(iv)] (iii) programs authorized 
                        under the National and Community 
                        Service Act of 1990 (42 U.S.C. 12501 et 
                        seq.); [and]
                          (iv) employment and training programs 
                        administered by the Commissioner of the 
                        Social Security Administration;
                          (v) employment and training programs 
                        carried out by the Administrator of the 
                        Small Business Administration;
                          (vi) employment, training, and 
                        literacy services carried out by public 
                        libraries; and
                          (vii) other appropriate Federal, 
                        State, or local programs, including 
                        programs in the private sector.
                          [(v) other appropriate Federal, 
                        State, or local programs, including 
                        programs in the private sector.]
  (c) Memorandum of Understanding.--
          (1) * * *
          (2) Contents.--Each memorandum of understanding shall 
        contain--
                  [(A) provisions describing--
                          [(i) the services to be provided 
                        through the one-stop delivery system;
                          [(ii) how the costs of such services 
                        and the operating costs of the system 
                        will be funded;
                          [(iii) methods for referral of 
                        individuals between the one-stop 
                        operator and the one-stop partners, for 
                        the appropriate services and 
                        activities; and
                          [(iv) the duration of the memorandum 
                        and the procedures for amending the 
                        memorandum during the term of the 
                        memorandum; and]
                  (A) provisions describing--
                          (i) the services to be provided 
                        through the one-stop delivery system 
                        consistent with the requirements of 
                        this section, including the manner in 
                        which the services will be coordinated 
                        through such system;
                          (ii) how the costs of such services 
                        and the operating costs of such system 
                        will be funded, through cash and in-
                        kind contributions, to provide a stable 
                        and equitable funding stream for 
                        ongoing one-stop system operations, 
                        including the funding of the 
                        infrastructure costs of one-stop 
                        centers in accordance with subsection 
                        (h);
                          (iii) methods of referral of 
                        individuals between the one-stop 
                        operator and the one-stop partners for 
                        appropriate services and activities, 
                        including referrals for nontraditional 
                        employment; and
                          (iv) the duration of the memorandum 
                        of understanding and the procedures for 
                        amending the memorandum during the term 
                        of the memorandum, and assurances that 
                        such memorandum shall be reviewed not 
                        less than once every 2-year period to 
                        ensure appropriate funding and delivery 
                        of services; and

           *       *       *       *       *       *       *

  (d) One-Stop Operators.--
          (1) [Designation and certification] Local designation 
        and certification.--Consistent with paragraphs (2) and 
        (3), the local board, with the agreement of the chief 
        elected official, is authorized to designate or certify 
        one-stop operators and to terminate for cause the 
        eligibility of such operators.
          (2) Eligibility.--To be eligible to receive funds 
        made available under this subtitle to operate a one-
        stop center referred to in [section 134(c)] subsection 
        (e), an entity (which may be a consortium of 
        entities)--
                  [(A) shall be designated or certified as a 
                one-stop operator--
                          [(i) through a competitive process; 
                        or
                          [(ii) in accordance with an agreement 
                        reached between the local board and a 
                        consortium of entities that, at a 
                        minimum, includes 3 or more of the one-
                        stop partners described in subsection 
                        (b)(1); and]
                  (A) shall be designated or certified as a 
                one-stop operator through a competitive 
                process; and
                  (B) may be a public or private entity, or 
                consortium of entities, of demonstrated 
                effectiveness, located in the local area, which 
                may include--
                          (i) * * *
                          [(ii) an employment service agency 
                        established under the Wagner-Peyser Act 
                        (29 U.S.C. 49 et seq.), on behalf of 
                        the local office of the agency;]
                          [(iii)] (ii) a private, nonprofit 
                        organization (including a community-
                        based organization);
                          [(iv)] (iii) a private for-profit 
                        entity;
                          [(v)] (iv) a government agency; and
                          [(vi)] (v) another interested 
                        organization or entity, which may 
                        include a local chamber of commerce or 
                        other business organization.
          (3) Exception.--Elementary schools and secondary 
        schools shall not be eligible for designation or 
        certification as one-stop operators, except that 
        nontraditional public secondary schools and area 
        [vocational] career and technical education schools 
        shall be eligible for such designation or 
        certification.
  [(e) Established One-Stop Delivery System.--If a one-stop 
delivery system has been established in a local area prior to 
the date of enactment of this Act, the local board, the chief 
elected official, and the Governor involved may agree to 
certify an entity carrying out activities through the system as 
a one-stop operator for purposes of subsection (d), consistent 
with the requirements of subsection (b), of the memorandum of 
understanding, and of section 134(c).]
  (e) Establishment of One-Stop Delivery System.--
          (1) In general.--There shall be established in a 
        State that receives an allotment under section 132(b) a 
        one-stop delivery system, which shall--
                  (A) provide the work ready services described 
                in section 134(c)(2);
                  (B) provide access to training services as 
                described in section 134(c)(4), including 
                serving as the point of access to career 
                enhancement accounts for training services to 
                participants in accordance with paragraph 
                (4)(G) of such section;
                  (C) provide access to the activities carried 
                out under section 134(d), if any;
                  (D) provide access to programs and activities 
                carried out by one-stop partners that are 
                described in subsection (b) of this section; 
                and
                  (E) provide access to the information 
                described in section 15(e) of the Wagner-Peyser 
                Act (29 U.S.C. 49l-2(e)).
          (2) One-stop delivery.--At a minimum, the one-stop 
        delivery system--
                  (A) shall make each of the programs, 
                services, and activities described in paragraph 
                (1) accessible at not less than one physical 
                center in each local area of the State; and
                  (B) may also make programs, services, and 
                activities described in paragraph (1) 
                available--
                          (i) through a network of affiliated 
                        sites that can provide one or more of 
                        the programs, services, and activities 
                        to individuals; and
                          (ii) through a network of eligible 
                        one-stop partners--
                                  (I) in which each partner 
                                provides one or more of the 
                                programs, services, and 
                                activities to such individuals 
                                and is accessible at an 
                                affiliated site that consists 
                                of a physical location or an 
                                electronically- or 
                                technologically-linked access 
                                point; and
                                  (II) that assures individuals 
                                that information on the 
                                availability of the work ready 
                                services will be available 
                                regardless of where the 
                                individuals initially enter the 
                                statewide workforce investment 
                                system, including information 
                                made available through an 
                                access point described in 
                                subclause (I).
          (3) Specialized centers.--The centers and sites 
        described in paragraph (2) may have a specialization in 
        addressing special needs.

           *       *       *       *       *       *       *

  (g) Certification of One-Stop Centers.--
          (1) In general.--
                  (A) In general.--The State board shall 
                establish objective procedures and criteria for 
                periodically certifying one-stop centers for 
                the purpose of awarding the one-stop 
                infrastructure funding described in subsection 
                (h).
                  (B) Criteria.--The criteria for certification 
                under this subsection shall include--
                          (i) meeting all of the expected 
                        levels of performance for each of the 
                        core indicators of performance as 
                        outlined in the State plan under 
                        section 112;
                          (ii) meeting minimum standards 
                        relating to the scope and degree of 
                        service integration achieved by the 
                        centers involving the programs provided 
                        by the one-stop partners; and
                          (iii) meeting minimum standards 
                        relating to how the centers ensure that 
                        eligible providers meet the employment 
                        needs of local employers and 
                        participants.
                  (C) Effect of certification.--One-stop 
                centers certified under this subsection shall 
                be eligible to receive the infrastructure 
                grants authorized under subsection (h).
          (2) Local boards.--Consistent with the criteria 
        developed by the State, the local board may develop 
        additional criteria of higher standards to respond to 
        local labor market and demographic conditions and 
        trends.
  (h) One-Stop Infrastructure Funding.--
          (1) Partner contributions.--
                  (A) Provision of funds.--Notwithstanding any 
                other provision of law, as determined under 
                subparagraph (B), a portion of the Federal 
                funds provided to the State and areas within 
                the State under the Federal laws authorizing 
                the one-stop partner programs described in 
                subsection (b)(1)(B) and participating 
                additional partner programs described in 
                (b)(2)(B) for a fiscal year shall be provided 
                to the Governor by such programs to carry out 
                this subsection.
                  (B) Determination of governor.--
                          (i) In general.--Subject to 
                        subparagraph (C), the Governor, in 
                        consultation with the State board, 
                        shall determine the portion of funds to 
                        be provided under subparagraph (A) by 
                        each one-stop partner and in making 
                        such determination shall consider the 
                        proportionate use of the one-stop 
                        centers by each partner, the costs of 
                        administration for purposes not related 
                        to one-stop centers for each partner, 
                        and other relevant factors described in 
                        paragraph (3).
                          (ii) Special rule.--In those States 
                        where the State constitution places 
                        policy-making authority that is 
                        independent of the authority of the 
                        Governor in an entity or official with 
                        respect to the funds provided for adult 
                        education and literacy activities 
                        authorized under title II of this Act 
                        and for postsecondary career education 
                        activities authorized under the Carl D. 
                        Perkins Career and Technical Education 
                        Act, the determination described in 
                        clause (i) with respect to such 
                        programs shall be made by the Governor 
                        with the appropriate entity or official 
                        with such independent policy-making 
                        authority.
                          (iii) Appeal by one-stop partners.--
                        The Governor shall establish a 
                        procedure for the one-stop partner 
                        administering a program described in 
                        subsection (b) to appeal a 
                        determination regarding the portion of 
                        funds to be contributed under this 
                        paragraph on the basis that such 
                        determination is inconsistent with the 
                        criteria described in the State plan or 
                        with the requirements of this 
                        paragraph. Such procedure shall ensure 
                        prompt resolution of the appeal.
                  (C) Limitations.--
                          (i) Provision from administrative 
                        funds.--The funds provided under this 
                        paragraph by each one-stop partner 
                        shall be provided only from funds 
                        available for the costs of 
                        administration under the program 
                        administered by such partner, and shall 
                        be subject to the limitations with 
                        respect to the portion of funds under 
                        such programs that may be used for 
                        administration.
                          (ii) Federal direct spending 
                        programs.--Programs that are Federal 
                        direct spending under section 250(c)(8) 
                        of the Balanced Budget and Emergency 
                        Deficit Control Act of 1985 (2 U.S.C. 
                        900(c)(8)) shall not, for purposes of 
                        this paragraph, be required to provide 
                        an amount in excess of the amount 
                        determined to be equivalent to the 
                        proportionate use of the one-stop 
                        centers by such programs in the State.
          (2) Allocation by governor.--From the funds provided 
        under paragraph (1), the Governor shall allocate funds 
        to local areas in accordance with the formula 
        established under paragraph (3) for the purposes of 
        assisting in paying the costs of the infrastructure of 
        one-stop centers certified under subsection (g).
          (3) Allocation formula.--The State board shall 
        develop a formula to be used by the Governor to 
        allocate the funds described in paragraph (1). The 
        formula shall include such factors as the State board 
        determines are appropriate, which may include factors 
        such as the number of centers in the local area that 
        have been certified, the population served by such 
        centers, and the performance of such centers.
          (4) Costs of infrastructure.--For purposes of this 
        subsection, the term ``costs of infrastructure'' means 
        the nonpersonnel costs that are necessary for the 
        general operation of a one-stop center, including the 
        rental costs of the facilities, the costs of utilities 
        and maintenance, and equipment (including assistive 
        technology for individuals with disabilities).
  (i) Other Funds.--
          (1) In general.--In addition to the funds provided to 
        carry out subsection (h), a portion of funds made 
        available under Federal law authorizing the one-stop 
        partner programs described in subsection (b)(1)(B) and 
        participating additional partner programs described in 
        subsection (b)(2)(B), or the noncash resources 
        available under such programs shall be used to pay the 
        costs relating to the operation of the one-stop 
        delivery system that are not paid for from the funds 
        provided under subsection (h), to the extent not 
        inconsistent with the Federal law involved including--
                  (A) infrastructure costs that are in excess 
                of the funds provided under subsection (h);
                  (B) common costs that are in addition to the 
                costs of infrastructure; and
                  (C) the costs of the provision of work ready 
                services applicable to each program.
          (2) Determination and guidance.--The method for 
        determining the appropriate portion of funds and 
        noncash resources to be provided by each program under 
        paragraph (1) shall be determined as part of the 
        memorandum of understanding under subsection (c). The 
        State board shall provide guidance to facilitate the 
        determination of appropriate allocation of the funds 
        and noncash resources in local areas.

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

  [(a) Eligibility Requirements.--
          [(1) In general.--Except as provided in subsection 
        (h), to be identified as an eligible provider of 
        training services described in section 134(d)(4) 
        (referred to in this section as ``training services'') 
        in a local area and to be eligible to receive funds 
        made available under section 133(b) for the provision 
        of training services, a provider of such services shall 
        meet the requirements of this section.
          [(2) Providers.--Subject to the provisions of this 
        section, to be eligible to receive the funds, the 
        provider shall be--
                  [(A) a postsecondary educational institution 
                that--
                          [(i) is eligible to receive Federal 
                        funds under title IV of the Higher 
                        Education Act of 1965 (20 U.S.C. 1070 
                        et seq.); and
                          [(ii) provides a program that leads 
                        to an associate degree, baccalaureate 
                        degree, or certificate;
                  [(B) an entity that carries out programs 
                under the Act of August 16, 1937 (commonly 
                known as the ``National Apprenticeship Act''; 
                50 Stat. 664, chapter 663; 29 U.S.C. 50 et 
                seq.); or
                  [(C) another public or private provider of a 
                program of training services.
  [(b) Initial Eligibility Determination.--
          [(1) Postsecondary educational institutions and 
        entities carrying out apprenticeship programs.--To be 
        initially eligible to receive funds as described in 
        subsection (a) to carry out a program described in 
        subparagraph (A) or (B) of subsection (a)(2), a 
        provider described in subparagraph (A) or (B), 
        respectively, of subsection (a)(2) shall submit an 
        application, to the local board for the local area in 
        which the provider desires to provide training 
        services, at such time, in such manner, and containing 
        such information as the local board may require.
          [(2) Other eligible providers.--
                  [(A) Procedure.--Each Governor of a State 
                shall establish a procedure for use by local 
                boards in the State in determining the initial 
                eligibility of a provider described in 
                subsection (a)(2)(C) to receive funds as 
                described in subsection (a) for a program of 
                training services, including the initial 
                eligibility of--
                          [(i) a postsecondary educational 
                        institution to receive such funds for a 
                        program not described in subsection 
                        (a)(2)(A); and
                          [(ii) a provider described in 
                        subsection (a)(2)(B) to receive such 
                        funds for a program not described in 
                        subsection (a)(2)(B).
                  [(B) Recommendations.--In developing such 
                procedure, the Governor shall solicit and take 
                into consideration the recommendations of local 
                boards and providers of training services 
                within the State.
                  [(C) Opportunity to submit comments.--The 
                Governor shall provide an opportunity, during 
                the development of the procedure, for 
                interested members of the public, including 
                representatives of business and labor 
                organizations, to submit comments on such 
                procedure.
                  [(D) Requirements.--In establishing the 
                procedure, the Governor shall require that, to 
                be initially eligible to receive funds as 
                described in subsection (a) for a program, a 
                provider described in subsection (a)(2)(C)--
                          [(i) shall submit an application, to 
                        the local board for the local area in 
                        which the provider desires to provide 
                        training services, at such time and in 
                        such manner as may be required, and 
                        containing a description of the 
                        program;
                          [(ii) if the provider provides 
                        training services through a program on 
                        the date of application, shall include 
                        in the application an appropriate 
                        portion of the performance information 
                        and program cost information described 
                        in subsection (d) for the program, as 
                        specified in the procedure, and shall 
                        meet appropriate levels of performance 
                        for the program, as specified in the 
                        procedure; and
                          [(iii) if the provider does not 
                        provide training services on such date, 
                        shall meet appropriate requirements, as 
                        specified in the procedure.
  [(c) Subsequent Eligibility Determination.--
          [(1) Procedure.--Each Governor of a State shall 
        establish a procedure for use by local boards in the 
        State in determining the eligibility of a provider 
        described in subsection (a)(2) to continue to receive 
        funds as described in subsection (a) for a program 
        after an initial period of eligibility under subsection 
        (b) (referred to in this section as ``subsequent 
        eligibility'').
          [(2) Recommendations.--In developing such procedure, 
        the Governor shall solicit and take into consideration 
        the recommendations of local boards and providers of 
        training services within the State.
          [(3) Opportunity to submit comments.--The Governor 
        shall provide an opportunity, during the development of 
        the procedure, for interested members of the public, 
        including representatives of business and labor 
        organizations, to submit comments on such procedure.
          [(4) Considerations.--In developing such procedure, 
        the Governor shall ensure that the procedure requires 
        the local boards to take into consideration, in making 
        the determinations of subsequent eligibility--
                  [(A) the specific economic, geographic, and 
                demographic factors in the local areas in which 
                providers seeking eligibility are located; and
                  [(B) the characteristics of the populations 
                served by providers seeking eligibility, 
                including the demonstrated difficulties in 
                serving such populations, where applicable.
          [(5) Requirements.--In establishing the procedure, 
        the Governor shall require that, to be eligible to 
        continue to receive funds as described in subsection 
        (a) for a program after the initial period of 
        eligibility, a provider described in subsection (a)(2) 
        shall--
                  [(A) submit the performance information and 
                program cost information described in 
                subsection (d)(1) for the program and any 
                additional information required to be submitted 
                in accordance with subsection (d)(2) for the 
                program annually to the appropriate local board 
                at such time and in such manner as may be 
                required; and
                  [(B) annually meet the performance levels 
                described in paragraph (6) for the program, as 
                demonstrated utilizing quarterly records 
                described in section 136, in a manner 
                consistent with section 136.
          [(6) Levels of performance.--
                  [(A) In general.--At a minimum, the procedure 
                described in paragraph (1) shall require the 
                provider to meet minimum acceptable levels of 
                performance based on the performance 
                information referred to in paragraph (5)(A).
                  [(B) Higher levels of performance 
                eligibility.--The local board may require 
                higher levels of performance than the levels 
                referred to in subparagraph (A) for subsequent 
                eligibility to receive funds as described in 
                subsection (a).
  [(d) Performance and Cost Information.--
          [(1) Required information.--For a provider of 
        training services to be determined to be subsequently 
        eligible under subsection (c) to receive funds as 
        described in subsection (a), such provider shall, under 
        subsection (c), submit--
                  [(A) verifiable program-specific performance 
                information consisting of--
                          [(i) program information, including--
                                  [(I) the program completion 
                                rates for all individuals 
                                participating in the applicable 
                                program conducted by the 
                                provider;
                                  [(II) the percentage of all 
                                individuals participating in 
                                the applicable program who 
                                obtain unsubsidized employment, 
                                which may also include 
                                information specifying the 
                                percentage of the individuals 
                                who obtain unsubsidized 
                                employment in an occupation 
                                related to the program 
                                conducted; and
                                  [(III) the wages at placement 
                                in employment of all 
                                individuals participating in 
                                the applicable program; and
                          [(ii) training services information 
                        for all participants who received 
                        assistance under section 134 to 
                        participate in the applicable program, 
                        including--
                                  [(I) the percentage of 
                                participants who have completed 
                                the applicable program and who 
                                are placed in unsubsidized 
                                employment;
                                  [(II) the retention rates in 
                                unsubsidized employment of 
                                participants who have completed 
                                the applicable program, 6 
                                months after the first day of 
                                the employment;
                                  [(III) the wages received by 
                                participants who have completed 
                                the applicable program, 6 
                                months after the first day of 
                                the employment involved; and
                                  [(IV) where appropriate, the 
                                rates of licensure or 
                                certification, attainment of 
                                academic degrees or 
                                equivalents, or attainment of 
                                other measures of skills, of 
                                the graduates of the applicable 
                                program; and
                  [(B) information on program costs (such as 
                tuition and fees) for participants in the 
                applicable program.
          [(2) Additional information.--Subject to paragraph 
        (3), in addition to the performance information 
        described in paragraph (1)--
                  [(A) the Governor may require that a provider 
                submit, under subsection (c), such other 
                verifiable program-specific performance 
                information as the Governor determines to be 
                appropriate to obtain such subsequent 
                eligibility, which may include information 
                relating to--
                          [(i) retention rates in employment 
                        and the subsequent wages of all 
                        individuals who complete the applicable 
                        program;
                          [(ii) where appropriate, the rates of 
                        licensure or certification of all 
                        individuals who complete the program; 
                        and
                          [(iii) the percentage of individuals 
                        who complete the program who attain 
                        industry-recognized occupational skills 
                        in the subject, occupation, or industry 
                        for which training is provided through 
                        the program, where applicable; and
                  [(B) the Governor, or the local board, may 
                require a provider to submit, under subsection 
                (c), other verifiable program-specific 
                performance information to obtain such 
                subsequent eligibility.
          [(3) Conditions.--
                  [(A) In general.--If the Governor or a local 
                board requests additional information under 
                paragraph (2) that imposes extraordinary costs 
                on providers, or if providers experience 
                extraordinary costs in the collection of 
                information required under paragraph 
                (1)(A)(ii), the Governor or the local board 
                shall provide access to cost-effective methods 
                for the collection of the information involved, 
                or the Governor shall provide additional 
                resources to assist providers in the collection 
                of such information from funds made available 
                as described in sections 128(a) and 133(a)(1), 
                as appropriate.
                  [(B) Higher education eligibility 
                requirements.--The local board and the 
                designated State agency described in subsection 
                (i) may accept program-specific performance 
                information consistent with the requirements 
                for eligibility under title IV of the Higher 
                Education Act of 1965 (20 U.S.C. 1070 et seq.) 
                from a provider for purposes of enabling the 
                provider to fulfill the applicable requirements 
                of this subsection, if such information is 
                substantially similar to the information 
                otherwise required under this subsection.
  [(e) Local Identification.--
          [(1) In general.--The local board shall place on a 
        list providers submitting an application under 
        subsection (b)(1) and providers determined to be 
        initially eligible under subsection (b)(2), and retain 
        on the list providers determined to be subsequently 
        eligible under subsection (c), to receive funds as 
        described in subsection (a) for the provision of 
        training services in the local area served by the local 
        board. The list of providers shall be accompanied by 
        any performance information and program cost 
        information submitted under subsection (b) or (c) by 
        the provider.
          [(2) Submission to state agency.--On placing or 
        retaining a provider on the list, the local board shall 
        submit, to the designated State agency described in 
        subsection (i), the list and the performance 
        information and program cost information referred to in 
        paragraph (1). If the agency determines, within 30 days 
        after the date of the submission, that the provider 
        does not meet the performance levels described in 
        subsection (c)(6) for the program (where applicable), 
        the agency may remove the provider from the list for 
        the program. The agency may not remove from the list an 
        agency submitting an application under subsection 
        (b)(1).
          [(3) Identification of eligible providers.--A 
        provider who is placed or retained on the list under 
        paragraph (1), and is not removed by the designated 
        State agency under paragraph (2), for a program, shall 
        be considered to be identified as an eligible provider 
        of training services for the program.
          [(4) Availability.--
                  [(A) State list.--The designated State agency 
                shall compile a single list of the providers 
                identified under paragraph (3) from all local 
                areas in the State and disseminate such list, 
                and the performance information and program 
                cost information described in paragraph (1), to 
                the one-stop delivery systems within the State. 
                Such list and information shall be made widely 
                available to participants in employment and 
                training activities authorized under section 
                134 and others through the one-stop delivery 
                system.
                  [(B) Selection from state list.--Individuals 
                eligible to receive training services under 
                section 134(d)(4) shall have the opportunity to 
                select any of the eligible providers, from any 
                of the local areas in the State, that are 
                included on the list described in subparagraph 
                (A) to provide the services, consistent with 
                the requirements of section 134.
          [(5) Acceptance of individual training accounts by 
        other states.--States may enter into agreements, on a 
        reciprocal basis, to permit eligible providers of 
        training services in a State to accept individual 
        training accounts provided in another State.
  [(f) Enforcement.--
          [(1) Accuracy of information.--If the designated 
        State agency, after consultation with the local board 
        involved, determines that an eligible provider or 
        individual supplying information on behalf of the 
        provider intentionally supplies inaccurate information 
        under this section, the agency shall terminate the 
        eligibility of the provider to receive funds described 
        in subsection (a) for any program for a period of time, 
        but not less than 2 years.
          [(2) Noncompliance.--If the designated State agency, 
        or the local board working with the State agency, 
        determines that an eligible provider described in 
        subsection (a) substantially violates any requirement 
        under this Act, the agency, or the local board working 
        with the State agency, may terminate the eligibility of 
        such provider to receive funds described in subsection 
        (a) for the program involved or take such other action 
        as the agency or local board determines to be 
        appropriate.
          [(3) Repayment.--A provider whose eligibility is 
        terminated under paragraph (1) or (2) for a program 
        shall be liable for repayment of all funds described in 
        subsection (a) received for the program during any 
        period of noncompliance described in such paragraph.
          [(4) Construction.--This subsection and subsection 
        (g) shall be construed to provide remedies and 
        penalties that supplement, but do not supplant, other 
        civil and criminal remedies and penalties.
  [(g) Appeal.--The Governor shall establish procedures for 
providers of training services to appeal a denial of 
eligibility by the local board or the designated State agency 
under subsection (b), (c), or (e), a termination of eligibility 
or other action by the board or agency under subsection (f), or 
a denial of eligibility by a one-stop operator under subsection 
(h). Such procedures shall provide an opportunity for a hearing 
and prescribe appropriate time limits to ensure prompt 
resolution of the appeal.
  [(h) On-the-Job Training or Customized Training Exception.--
          [(1) In general.--Providers of on-the-job training or 
        customized training shall not be subject to the 
        requirements of subsections (a) through (e).
          [(2) Collection and dissemination of information.--A 
        one-stop operator in a local area shall collect such 
        performance information from on-the-job training and 
        customized training providers as the Governor may 
        require, determine whether the providers meet such 
        performance criteria as the Governor may require, and 
        disseminate information identifying providers that meet 
        the criteria as eligible providers, and the performance 
        information, through the one-stop delivery system. 
        Providers determined to meet the criteria shall be 
        considered to be identified as eligible providers of 
        training services.
  [(i) Administration.--The Governor shall designate a State 
agency to make the determinations described in subsection 
(e)(2), take the enforcement actions described in subsection 
(f), and carry out other duties described in this section.

[SEC. 123. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.

  [From funds allocated under paragraph (2)(A) or (3) of 
section 128(b) to a local area, the local board for such area 
shall identify eligible providers of youth activities by 
awarding grants or contracts on a competitive basis, based on 
the recommendations of the youth council and on the criteria 
contained in the State plan, to the providers to carry out the 
activities, and shall conduct oversight with respect to the 
providers, in the local area.]

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

  (a) Eligibility.--
          (1) In general.--The Governor, after consultation 
        with the State board, shall establish criteria and 
        procedures regarding the eligibility of providers of 
        training services described in section 134(c)(4) to 
        receive funds provided under section 133(b) for the 
        provision of such training services.
          (2) Providers.--Subject to the provisions of this 
        section, to be eligible to receive the funds provided 
        under section 133(b) for the provision of training 
        services, the provider shall be--
                  (A) a postsecondary educational institution 
                that--
                          (i) is eligible to receive Federal 
                        funds under title IV of the Higher 
                        Education Act of 1965 (20 U.S.C. 1070 
                        et seq.); and
                          (ii) provides a program that leads to 
                        an associate degree, baccalaureate 
                        degree, or industry-recognized 
                        certification;
                  (B) an entity that carries out programs under 
                the Act of August 16, 1937 (commonly known as 
                the ``National Apprenticeship Act''; 50 Stat. 
                664, chapter 663; 29 U.S.C. 50 et seq.); or
                  (C) another public or private provider of a 
                program of training services.
          (3) Inclusion in list of eligible providers.--A 
        provider described in subparagraph (A) or (C) of 
        paragraph (2) shall comply with the criteria and 
        procedures established under this section to be 
        included on the list of eligible providers of training 
        services described in subsection (d)(1). A provider 
        described in paragraph (2)(B) shall be included on the 
        list of eligible providers of training services 
        described in subsection (d)(1) for so long as the 
        provider remains certified by the Secretary of Labor to 
        carry out the programs described in paragraph (2)(B).
  (b) Criteria.--
          (1) In general.--The criteria established pursuant to 
        subsection (a) shall take into account--
                  (A) the performance of providers of training 
                services with respect to the performance 
                measures described in section 136 and other 
                matters for which information is required under 
                paragraph (2) and other appropriate measures of 
                performance outcomes for those participants 
                receiving training services under this subtitle 
                (taking into consideration the characteristics 
                of the population served and relevant economic 
                conditions);
                  (B) whether the training programs of such 
                providers relate to occupations that are in 
                demand;
                  (C) the need to ensure access to training 
                services throughout the State, including in 
                rural areas;
                  (D) the ability of providers to offer 
                programs that lead to a degree or an industry-
                recognized certification, certificate, or 
                mastery;
                  (E) the information such providers are 
                required to report to State agencies with 
                respect to other Federal and State programs 
                (other than the program carried out under this 
                subtitle), including one-stop partner programs; 
                and
                  (F) such other factors as the Governor 
                determines are appropriate.
          (2) Information.--The criteria established by the 
        Governor shall require that a provider of training 
        services submit appropriate, accurate, and timely 
        information to the State for purposes of carrying out 
        subsection (d), with respect to participants receiving 
        training services under this subtitle in the applicable 
        program, including--
                  (A) information on degrees and industry-
                recognized certifications received by such 
                participants;
                  (B) information on costs of attendance for 
                such participants;
                  (C) information on the program completion 
                rate for such participants; and
                  (D) information on the performance of the 
                provider with respect to the performance 
                measures described in section 136 for such 
                participants (taking into consideration the 
                characteristics of the population served and 
                relevant economic conditions), which shall 
                include information specifying the percentage 
                of such participants who entered unsubsidized 
                employment in an occupation related to the 
                program.
          (3) Renewal.--The criteria established by the 
        Governor shall also provide for biennial review and 
        renewal of eligibility under this section for providers 
        of training services.
          (4) Local criteria.--A local board in the State may 
        establish criteria in addition to the criteria 
        established by the Governor, or may require higher 
        levels of performance than required under the criteria 
        established by the Governor, for purposes of 
        determining the eligibility of providers of training 
        services to receive funds described in subsection (a) 
        to provide the services in the local area involved.
          (5) Limitation.--In carrying out the requirements of 
        this subsection, no personally identifiable information 
        regarding a student, including Social Security number, 
        student identification number, or other identifier, may 
        be disclosed without the prior written consent of the 
        parent or eligible student in compliance with section 
        444 of the General Education Provisions Act (20 U.S.C. 
        1232g).
  (c) Procedures.--The procedures established under subsection 
(a) shall--
          (1) identify--
                  (A) the application process for a provider of 
                training services to become eligible to receive 
                funds under section 133(b) for the provision of 
                training services; and
                  (B) the respective roles of the State and 
                local areas in receiving and reviewing 
                applications and in making determinations of 
                eligibility based on the criteria established 
                under this section; and
          (2) establish a process for a provider of training 
        services to appeal a denial or termination of 
        eligibility under this section that includes an 
        opportunity for a hearing and prescribes appropriate 
        time limits to ensure prompt resolution of the appeal.
  (d) Information To Assist Participants in Choosing 
Providers.--
          (1) In general.--In order to facilitate and assist 
        participants under chapter 5 in choosing providers of 
        training services, the Governor shall ensure that an 
        appropriate list or lists of providers determined 
        eligible under this section in the State, including 
        information regarding the occupations in demand that 
        relate to the training programs of such providers and 
        the accompanying information described in paragraph 
        (2), is provided to the local boards in the State to be 
        made available to such participants and to members of 
        the public through the one-stop delivery system in the 
        State.
          (2) Availability through one-stop delivery system.--
        The list and the accompanying information shall be made 
        available to such participants and to members of the 
        public through the one-stop delivery system in the 
        State.
  (e) Enforcement.--
          (1) In general.--The criteria and procedures 
        established under this section shall provide the 
        following:
                  (A) Intentionally supplying inaccurate 
                information.--Upon a determination, by an 
                individual or entity specified in the criteria 
                or procedures, that a provider of training 
                services, or individual providing information 
                on behalf of the provider, intentionally 
                supplied inaccurate information under this 
                section, the eligibility of such provider to 
                receive funds under chapter 5 shall be 
                terminated for a period of time that is not 
                less than 2 years.
                  (B) Substantial violations.--Upon a 
                determination, by an individual or entity 
                specified in the criteria or procedures, that a 
                provider of training services substantially 
                violated any requirement under this title, the 
                eligibility of such provider to receive funds 
                under the program involved shall be terminated.
                  (C) Repayment.--A provider of training 
                services whose eligibility is terminated under 
                subparagraph (A) or (B) shall be liable for the 
                repayment of funds received under chapter 5 
                during a period of noncompliance described in 
                such subparagraph.
          (2) Construction.--Paragraph (1) shall be construed 
        to provide remedies and penalties that supplement, but 
        do not supplant, other civil and criminal remedies and 
        penalties.
  (f) Agreements With Other States.--States may enter into 
agreements, on a reciprocal basis, to permit eligible providers 
of training services to accept career enhancement accounts 
provided in another State.
  (g) Recommendations.--In developing the criteria, procedures, 
and information required under this section, the Governor shall 
solicit and take into consideration the recommendations of 
local boards and providers of training services within the 
State.
  (h) Opportunity To Submit Comments.--During the development 
of the criteria, procedures, requirements for information, and 
the list of eligible providers required under this section, the 
Governor shall provide an opportunity for interested members of 
the public to submit comments regarding such criteria, 
procedures, and information.
  (i) On-the-Job Training or Customized Training Exception.--
          (1) In general.--Providers of on-the-job training or 
        customized training shall not be subject to the 
        requirements of subsections (a) through (d).
          (2) Collection and dissemination of information.--A 
        one-stop operator in a local area shall collect such 
        performance information from on-the-job training and 
        customized training providers as the Governor may 
        require, determine whether the providers meet such 
        performance criteria as the Governor may require, and 
        disseminate information identifying providers that meet 
        the criteria as eligible providers, and the performance 
        information, through the one-stop delivery system. 
        Providers determined to meet the criteria shall be 
        considered to be identified as eligible providers of 
        training services.

                      [CHAPTER 4--YOUTH ACTIVITIES

[SEC. 126. GENERAL AUTHORIZATION.

  [The Secretary shall make an allotment under section 
127(b)(1)(C) to each State that meets the requirements of 
section 112 and a grant to each outlying area that complies 
with the requirements of this title, to assist the State or 
outlying area, and to enable the State or outlying area to 
assist local areas, for the purpose of providing workforce 
investment activities for eligible youth in the State or 
outlying area and in the local areas.

[SEC. 127. STATE ALLOTMENTS.

  [(a) In General.--The Secretary shall--
          [(1) for each fiscal year in which the amount 
        appropriated under section 137(a) exceeds 
        $1,000,000,000, reserve a portion determined under 
        subsection (b)(1)(A) of the amount appropriated under 
        section 137(a) for use under sections 167 (relating to 
        migrant and seasonal farmworker programs) and 169 
        (relating to youth opportunity grants); and
          [(2) use the remainder of the amount appropriated 
        under section 137(a) for a fiscal year to make 
        allotments and grants in accordance with subparagraphs 
        (B) and (C) of subsection (b)(1) and make funds 
        available for use under section 166 (relating to Native 
        American programs).
  [(b) Allotment Among States.--
          [(1) Youth activities.--
                  [(A) Youth opportunity grants.--
                          [(i) In general.--For each fiscal 
                        year in which the amount appropriated 
                        under section 137(a) exceeds 
                        $1,000,000,000, the Secretary shall 
                        reserve a portion of the amount to 
                        provide youth opportunity grants and 
                        other activities under section 169 
                        (relating to youth opportunity grants) 
                        and provide youth activities under 
                        section 167 (relating to migrant and 
                        seasonal farmworker programs).
                          [(ii) Portion.--The portion referred 
                        to in clause (i) shall equal, for a 
                        fiscal year--
                                  [(I) except as provided in 
                                subclause (II), the difference 
                                obtained by subtracting 
                                $1,000,000,000 from the amount 
                                appropriated under section 
                                137(a) for the fiscal year; or
                                  [(II) for any fiscal year in 
                                which the amount is 
                                $1,250,000,000 or greater, 
                                $250,000,000.
                          [(iii) Youth activities for 
                        farmworkers.--From the portion 
                        described in clause (i) for a fiscal 
                        year, the Secretary shall make 
                        available 4 percent of such portion to 
                        provide youth activities under section 
                        167.
                          [(iv) Role model academy project.--
                        From the portion described in clause 
                        (i) for fiscal year 1999, the Secretary 
                        shall make available such sums as the 
                        Secretary determines to be appropriate 
                        to carry out section 169(g).
                  [(B) Outlying areas.--
                          [(i) In general.--From the amount 
                        made available under subsection (a)(2) 
                        for a fiscal year, the Secretary shall 
                        reserve not more than \1/4\ of 1 
                        percent of the amount appropriated 
                        under section 137(a) for the fiscal 
                        year--
                                  [(I) to provide assistance to 
                                the outlying areas to carry out 
                                youth activities and statewide 
                                workforce investment 
                                activities; and
                                  [(II) for each of fiscal 
                                years 1999, 2000, and 2001, to 
                                carry out the competition 
                                described in clause (ii), 
                                except that the funds reserved 
                                to carry out such clause for 
                                any such fiscal year shall not 
                                exceed the amount reserved for 
                                the Freely Associated States 
                                for fiscal year 1997, from 
                                amounts reserved under sections 
                                252(a) and 262(a)(1) of the Job 
                                Training Partnership Act (as in 
                                effect on the day before the 
                                date of enactment of this Act).
                          [(ii) Limitation for freely 
                        associated states.--
                                  [(I) Competitive grants.--The 
                                Secretary shall use funds 
                                described in clause (i)(II) to 
                                award grants to Guam, American 
                                Samoa, the Commonwealth of the 
                                Northern Mariana Islands, and 
                                the Freely Associated States to 
                                carry out youth activities and 
                                statewide workforce investment 
                                activities.
                                  [(II) Award basis.--The 
                                Secretary shall award grants 
                                pursuant to subclause (I) on a 
                                competitive basis and pursuant 
                                to the recommendations of 
                                experts in the field of 
                                employment and training, 
                                working through the Pacific 
                                Region Educational Laboratory 
                                in Honolulu, Hawaii.
                                  [(III) Assistance 
                                requirements.--Any Freely 
                                Associated State that desires 
                                to receive assistance under 
                                this subparagraph shall submit 
                                an application to the Secretary 
                                and shall include in the 
                                application for assistance--
                                          [(aa) information 
                                        demonstrating that the 
                                        Freely Associated State 
                                        will meet all 
                                        conditions that apply 
                                        to States under this 
                                        title;
                                          [(bb) an assurance 
                                        that, notwithstanding 
                                        any other provision of 
                                        this title, the Freely 
                                        Associated State will 
                                        use such assistance 
                                        only for the direct 
                                        provision of services; 
                                        and
                                          [(cc) such other 
                                        information and 
                                        assurances as the 
                                        Secretary may require.
                                  [(IV) Termination of 
                                eligibility.--Notwithstanding 
                                any other provision of law, the 
                                Freely Associated States shall 
                                not receive any assistance 
                                under this subparagraph for any 
                                program year that begins after 
                                September 30, 2001.
                                  [(V) Administrative costs.--
                                The Secretary may provide not 
                                more than 5 percent of the 
                                funds made available for grants 
                                under subclause (I) to pay the 
                                administrative costs of the 
                                Pacific Region Educational 
                                Laboratory in Honolulu, Hawaii, 
                                regarding activities assisted 
                                under this clause.
                          [(iii) Additional requirement.--The 
                        provisions of Public Law 95-134, 
                        permitting the consolidation of grants 
                        by the outlying areas, shall not apply 
                        to assistance provided to those areas, 
                        including the Freely Associated States, 
                        under this subparagraph.
                  [(C) States.--
                          [(i) In general.--After determining 
                        the amounts to be reserved under 
                        subparagraph (A) (if any) and 
                        subparagraph (B), the Secretary shall--
                                  [(I) from the amount referred 
                                to in subsection (a)(2) for a 
                                fiscal year, make available not 
                                more than 1.5 percent to 
                                provide youth activities under 
                                section 166 (relating to Native 
                                Americans); and
                                  [(II) allot the remainder of 
                                the amount referred to in 
                                subsection (a)(2) for a fiscal 
                                year to the States pursuant to 
                                clause (ii) for youth 
                                activities and statewide 
                                workforce investment 
                                activities.
                          [(ii) Formula.--Subject to clauses 
                        (iii) and (iv), of the remainder--
                                  [(I) 33\1/3\ percent shall be 
                                allotted on the basis of the 
                                relative number of unemployed 
                                individuals in areas of 
                                substantial unemployment in 
                                each State, compared to the 
                                total number of unemployed 
                                individuals in areas of 
                                substantial unemployment in all 
                                States;
                                  [(II) 33\1/3\ percent shall 
                                be allotted on the basis of the 
                                relative excess number of 
                                unemployed individuals in each 
                                State, compared to the total 
                                excess number of unemployed 
                                individuals in all States; and
                                  [(III) 33\1/3\ percent shall 
                                be allotted on the basis of the 
                                relative number of 
                                disadvantaged youth in each 
                                State, compared to the total 
                                number of disadvantaged youth 
                                in all States, except as 
                                described in clause (iii).
                          [(iii) Calculation.--In determining 
                        an allotment under clause (ii)(III) for 
                        any State in which there is a local 
                        area designated under section 
                        116(a)(2)(B) (relating to the area 
                        served by a rural concentrated 
                        employment program grant recipient), 
                        the allotment shall be based on the 
                        higher of--
                                  [(I) the number of 
                                individuals who are age 16 
                                through 21 in families with an 
                                income below the low-income 
                                level in such area; or
                                  [(II) the number of 
                                disadvantaged youth in such 
                                area.
                          [(iv) Minimum and maximum percentages 
                        and minimum allotments.--In making 
                        allotments under this subparagraph, the 
                        Secretary shall ensure the following:
                                  [(I) Minimum percentage and 
                                allotment.--Subject to 
                                subclause (IV), the Secretary 
                                shall ensure that no State 
                                shall receive an allotment for 
                                a fiscal year that is less than 
                                the greater of--
                                          [(aa) an amount based 
                                        on 90 percent of the 
                                        allotment percentage of 
                                        the State for the 
                                        preceding fiscal year; 
                                        or
                                          [(bb) 100 percent of 
                                        the total of the 
                                        allotments of the State 
                                        under sections 252 and 
                                        262 of the Job Training 
                                        Partnership Act (as in 
                                        effect on the day 
                                        before the date of 
                                        enactment of this Act) 
                                        for fiscal year 1998.
                                  [(II) Small state minimum 
                                allotment.--Subject to 
                                subclauses (I), (III), and 
                                (IV), the Secretary shall 
                                ensure that no State shall 
                                receive an allotment under this 
                                subparagraph that is less than 
                                the total of--
                                          [(aa) \3/10\ of 1 
                                        percent of 
                                        $1,000,000,000 of the 
                                        remainder described in 
                                        clause (i)(II) for the 
                                        fiscal year; and
                                          [(bb) if the 
                                        remainder described in 
                                        clause (i)(II) for the 
                                        fiscal year exceeds 
                                        $1,000,000,000, \2/5\ 
                                        of 1 percent of the 
                                        excess.
                                  [(III) Maximum percentage.--
                                Subject to subclause (I), the 
                                Secretary shall ensure that no 
                                State shall receive an 
                                allotment percentage for a 
                                fiscal year that is more than 
                                130 percent of the allotment 
                                percentage of the State for the 
                                preceding fiscal year.
                                  [(IV) Minimum funding.--In 
                                any fiscal year in which the 
                                remainder described in clause 
                                (i)(II) does not exceed 
                                $1,000,000,000, the minimum 
                                allotments under subclauses (I) 
                                and (II) shall be calculated by 
                                the methodology for calculating 
                                the corresponding allotments 
                                under parts B and C of title II 
                                of the Job Training Partnership 
                                Act, as in effect on July 1, 
                                1998.
          [(2) Definitions.--For the purpose of the formula 
        specified in paragraph (1)(C):
                  [(A) Allotment percentage.--The term 
                ``allotment percentage'', used with respect to 
                fiscal year 2000 or a subsequent fiscal year, 
                means a percentage of the remainder described 
                in paragraph (1)(C)(i)(II) that is received 
                through an allotment made under paragraph 
                (1)(C) for the fiscal year. The term, used with 
                respect to fiscal year 1998 or 1999, means the 
                percentage of the amounts allotted to States 
                under sections 252(b) and 262(a) of the Job 
                Training Partnership Act (as in effect on the 
                day before the date of enactment of this Act) 
                that is received under such sections by the 
                State involved for fiscal year 1998 or 1999.
                  [(B) Area of substantial unemployment.--The 
                term ``area of substantial unemployment'' means 
                any area that is of sufficient size and scope 
                to sustain a program of workforce investment 
                activities carried out under this subtitle and 
                that has an average rate of unemployment of at 
                least 6.5 percent for the most recent 12 
                months, as determined by the Secretary. For 
                purposes of this subparagraph, determinations 
                of areas of substantial unemployment shall be 
                made once each fiscal year.
                  [(C) Disadvantaged youth.--Subject to 
                paragraph (3), the term ``disadvantaged youth'' 
                means an individual who is age 16 through 21 
                who received an income, or is a member of a 
                family that received a total family income, 
                that, in relation to family size, does not 
                exceed the higher of--
                          [(i) the poverty line; or
                          [(ii) 70 percent of the lower living 
                        standard income level.
                  [(D) Excess number.--The term ``excess 
                number'' means, used with respect to the excess 
                number of unemployed individuals within a 
                State, the higher of--
                          [(i) the number that represents the 
                        number of unemployed individuals in 
                        excess of 4.5 percent of the civilian 
                        labor force in the State; or
                          [(ii) the number that represents the 
                        number of unemployed individuals in 
                        excess of 4.5 percent of the civilian 
                        labor force in areas of substantial 
                        unemployment in such State.
                  [(E) Low-income level.--The term ``low-income 
                level'' means $7,000 with respect to income in 
                1969, and for any later year means that amount 
                that bears the same relationship to $7,000 as 
                the Consumer Price Index for that year bears to 
                the Consumer Price Index for 1969, rounded to 
                the nearest $1,000.
          [(3) Special rule.--For the purpose of the formula 
        specified in paragraph (1)(C), the Secretary shall, as 
        appropriate and to the extent practicable, exclude 
        college students and members of the Armed Forces from 
        the determination of the number of disadvantaged youth.
          [(4) Definition.--In this subsection, the term 
        ``Freely Associated State'' means the Republic of the 
        Marshall Islands, the Federated States of Micronesia, 
        and the Republic of Palau.
  [(c) Reallotment.--
          [(1) In general.--The Secretary shall, in accordance 
        with this subsection, reallot to eligible States 
        amounts that are allotted under this section for youth 
        activities and statewide workforce investment 
        activities and that are available for reallotment.
          [(2) Amount.--The amount available for reallotment 
        for a program year is equal to the amount by which the 
        unobligated balance of the State allotment under this 
        section for such activities, at the end of the program 
        year prior to the program year for which the 
        determination under this paragraph is made, exceeds 20 
        percent of such allotment for the prior program year.
          [(3) Reallotment.--In making reallotments to eligible 
        States of amounts available pursuant to paragraph (2) 
        for a program year, the Secretary shall allot to each 
        eligible State an amount based on the relative amount 
        allotted to such State under this section for such 
        activities for the prior program year, as compared to 
        the total amount allotted to all eligible States under 
        this section for such activities for such prior program 
        year.
          [(4) Eligibility.--For purposes of this subsection, 
        an eligible State means a State that has obligated at 
        least 80 percent of the State allotment under this 
        section for such activities for the program year prior 
        to the program year for which the determination under 
        paragraph (2) is made.
          [(5) Procedures.--The Governor of each State shall 
        prescribe uniform procedures for the obligation of 
        funds by local areas within the State in order to avoid 
        the requirement that funds be made available for 
        reallotment under this subsection. The Governor shall 
        further prescribe equitable procedures for making funds 
        available from the State and local areas in the event 
        that a State is required to make funds available for 
        reallotment under this subsection.

[SEC. 128. WITHIN STATE ALLOCATIONS.

  [(a) Reservations for State Activities.--
          [(1) In general.--The Governor of a State shall 
        reserve not more than 15 percent of each of the amounts 
        allotted to the State under section 127(b)(1)(C) and 
        paragraphs (1)(B) and (2)(B) of section 132(b) for a 
        fiscal year for statewide workforce investment 
        activities.
          [(2) Use of funds.--Regardless of whether the 
        reserved amounts were allotted under section 
        127(b)(1)(C), or under paragraph (1)(B) or (2)(B) of 
        section 132(b), the Governor may use the reserved 
        amounts to carry out statewide youth activities 
        described in section 129(b) or statewide employment and 
        training activities, for adults or for dislocated 
        workers, described in paragraph (2)(B) or (3) of 
        section 134(a).
  [(b) Within State Allocation.--
          [(1) Methods.--The Governor, acting in accordance 
        with the State plan, and after consulting with chief 
        elected officials in the local areas, shall allocate 
        the funds that are allotted to the State for youth 
        activities and statewide workforce investment 
        activities under section 127(b)(1)(C) and are not 
        reserved under subsection (a), in accordance with 
        paragraph (2) or (3).
          [(2) Formula allocation.--
                  [(A) Youth activities.--
                          [(i) Allocation.--In allocating the 
                        funds described in paragraph (1) to 
                        local areas, a State may allocate--
                                  [(I) 33\1/3\ percent of the 
                                funds on the basis described in 
                                section 127(b)(1)(C)(ii)(I);
                                  [(II) 33\1/3\ percent of the 
                                funds on the basis described in 
                                section 127(b)(1)(C)(ii)(II); 
                                and
                                  [(III) 33\1/3\ percent of the 
                                funds on the basis described in 
                                clauses (ii)(III) and (iii) of 
                                section 127(b)(1)(C).
                          [(ii) Minimum percentage.--Effective 
                        at the end of the second full fiscal 
                        year after the date on which a local 
                        area is designated under section 116, 
                        the local area shall not receive an 
                        allocation percentage for a fiscal year 
                        that is less than 90 percent of the 
                        average allocation percentage of the 
                        local area for the 2 preceding fiscal 
                        years. Amounts necessary for increasing 
                        such allocations to local areas to 
                        comply with the preceding sentence 
                        shall be obtained by ratably reducing 
                        the allocations to be made to other 
                        local areas under this subparagraph.
                          [(iii) Definition.--The term 
                        ``allocation percentage'', used with 
                        respect to fiscal year 2000 or a 
                        subsequent fiscal year, means a 
                        percentage of the funds referred to in 
                        clause (i), received through an 
                        allocation made under this 
                        subparagraph, for the fiscal year.
                  [(B) Application.--For purposes of carrying 
                out subparagraph (A)--
                          [(i) references in section 127(b) to 
                        a State shall be deemed to be 
                        references to a local area;
                          [(ii) references in section 127(b) to 
                        all States shall be deemed to be 
                        references to all local areas in the 
                        State involved; and
                          [(iii) except as described in clause 
                        (i), references in section 127(b)(1) to 
                        the term ``excess number'' shall be 
                        considered to be references to the term 
                        as defined in section 127(b)(2).
          [(3) Youth discretionary allocation.--In lieu of 
        making the allocation described in paragraph (2)(A), in 
        allocating the funds described in paragraph (1) to 
        local areas, a State may distribute--
                  [(A) a portion equal to not less than 70 
                percent of the funds in accordance with 
                paragraph (2)(A); and
                  [(B) the remaining portion of the funds on 
                the basis of a formula that--
                          [(i) incorporates additional factors 
                        (other than the factors described in 
                        paragraph (2)(A)) relating to--
                                  [(I) excess youth poverty in 
                                urban, rural, and suburban 
                                local areas; and
                                  [(II) excess unemployment 
                                above the State average in 
                                urban, rural, and suburban 
                                local areas; and
                          [(ii) was developed by the State 
                        board and approved by the Secretary as 
                        part of the State plan.
          [(4) Limitation.--
                  [(A) In general.--Of the amount allocated to 
                a local area under this subsection and section 
                133(b) for a fiscal year, not more than 10 
                percent of the amount may be used by the local 
                board for the administrative cost of carrying 
                out local workforce investment activities 
                described in subsection (d) or (e) of section 
                134 or in section 129(c).
                  [(B) Use of funds.--Funds made available for 
                administrative costs under subparagraph (A) may 
                be used for the administrative cost of any of 
                the local workforce investment activities 
                described in subsection (d) or (e) of section 
                134 or in section 129(c), regardless of whether 
                the funds were allocated under this subsection 
                or section 133(b).
                  [(C) Regulations.--The Secretary, after 
                consulting with the Governors, shall develop 
                and issue regulations that define the term 
                ``administrative cost'' for purposes of this 
                title. Such definition shall be consistent with 
                generally accepted accounting principles.
  [(c) Reallocation Among Local Areas.--
          [(1) In general.--The Governor may, in accordance 
        with this subsection, reallocate to eligible local 
        areas within the State amounts that are allocated under 
        paragraph (2)(A) or (3) of subsection (b) for youth 
        activities and that are available for reallocation.
          [(2) Amount.--The amount available for reallocation 
        for a program year is equal to the amount by which the 
        unobligated balance of the local area allocation under 
        paragraph (2)(A) or (3) of subsection (b) for such 
        activities, at the end of the program year prior to the 
        program year for which the determination under this 
        paragraph is made exceeds 20 percent of such allocation 
        for the prior program year.
          [(3) Reallocation.--In making reallocations to 
        eligible local areas of amounts available pursuant to 
        paragraph (2) for a program year, the Governor shall 
        allocate to each eligible local area within the State 
        an amount based on the relative amount allocated to 
        such local area under subsection (b)(3) for such 
        activities for the prior program year, as compared to 
        the total amount allocated to all eligible local areas 
        in the State under subsection (b)(3) for such 
        activities for such prior program year. For purposes of 
        this paragraph, local areas that received allocations 
        under subsection (b)(2)(A) for the prior program year 
        shall be treated as if the local areas received 
        allocations under subsection (b)(3) for such year.
          [(4) Eligibility.--For purposes of this subsection, 
        an eligible local area means a local area that has 
        obligated at least 80 percent of the local area 
        allocation under paragraph (2)(A) or (3) of subsection 
        (b) for such activities, for the program year prior to 
        the program year for which the determination under 
        paragraph (2) is made.

[SEC. 129. USE OF FUNDS FOR YOUTH ACTIVITIES.

  [(a) Purposes.--The purposes of this section are--
          [(1) to provide, to eligible youth seeking assistance 
        in achieving academic and employment success, effective 
        and comprehensive activities, which shall include a 
        variety of options for improving educational and skill 
        competencies and provide effective connections to 
        employers;
          [(2) to ensure on-going mentoring opportunities for 
        eligible youth with adults committed to providing such 
        opportunities;
          [(3) to provide opportunities for training to 
        eligible youth;
          [(4) to provide continued supportive services for 
        eligible youth;
          [(5) to provide incentives for recognition and 
        achievement to eligible youth; and
          [(6) to provide opportunities for eligible youth in 
        activities related to leadership, development, 
        decisionmaking, citizenship, and community service.
  [(b) Statewide Youth Activities.--
          [(1) In general.--Funds reserved by a Governor for a 
        State as described in sections 128(a) and 133(a)(1)--
                  [(A) shall be used to carry out the statewide 
                youth activities described in paragraph (2); 
                and
                  [(B) may be used to carry out any of the 
                statewide youth activities described in 
                paragraph (3),
        regardless of whether the funds were allotted to the 
        State under section 127(b)(1) or under paragraph (1) or 
        (2) of section 132(b).
          [(2) Required statewide youth activities.--A State 
        shall use funds reserved as described in sections 
        128(a) and 133(a)(1) (regardless of whether the funds 
        were allotted to the State under section 127(b)(1) or 
        paragraph (1) or (2) of section 132(b)) to carry out 
        statewide youth activities, which shall include--
                  [(A) disseminating a list of eligible 
                providers of youth activities described in 
                section 123;
                  [(B) carrying out activities described in 
                clauses (ii) through (vi) of section 
                134(a)(2)(B), except that references in such 
                clauses to activities authorized under section 
                134 shall be considered to be references to 
                activities authorized under this section; and
                  [(C) providing additional assistance to local 
                areas that have high concentrations of eligible 
                youth to carry out the activities described in 
                subsection (c).
          [(3) Allowable statewide youth activities.--A State 
        may use funds reserved as described in sections 128(a) 
        and 133(a)(1) (regardless of whether the funds were 
        allotted to the State under section 127(b)(1) or 
        paragraph (1) or (2) of section 132(b)) to carry out 
        additional statewide youth activities, which may 
        include--
                  [(A) carrying out activities described in 
                clauses (i), (ii), (iii), (iv)(II), and 
                (vi)(II) of section 134(a)(3)(A), except that 
                references in such clauses to activities 
                authorized under section 134 shall be 
                considered to be references to activities 
                authorized under this section; and
                  [(B) carrying out, on a statewide basis, 
                activities described in subsection (c).
          [(4) Prohibition.--No funds described in this 
        subsection or section 134(a) shall be used to develop 
        or implement education curricula for school systems in 
        the State.
  [(c) Local Elements and Requirements.--
          [(1) Program design.--Funds allocated to a local area 
        for eligible youth under paragraph (2)(A) or (3), as 
        appropriate, of section 128(b) shall be used to carry 
        out, for eligible youth, programs that--
                  [(A) provide an objective assessment of the 
                academic levels, skill levels, and service 
                needs of each participant, which assessment 
                shall include a review of basic skills, 
                occupational skills, prior work experience, 
                employability, interests, aptitudes (including 
                interests and aptitudes for nontraditional 
                jobs), supportive service needs, and 
                developmental needs of such participant, except 
                that a new assessment of a participant is not 
                required if the provider carrying out such a 
                program determines it is appropriate to use a 
                recent assessment of the participant conducted 
                pursuant to another education or training 
                program;
                  [(B) develop service strategies for each 
                participant that shall identify an employment 
                goal (including, in appropriate circumstances, 
                nontraditional employment), appropriate 
                achievement objectives, and appropriate 
                services for the participant taking into 
                account the assessment conducted pursuant to 
                subparagraph (A), except that a new service 
                strategy for a participant is not required if 
                the provider carrying out such a program 
                determines it is appropriate to use a recent 
                service strategy developed for the participant 
                under another education or training program; 
                and
                  [(C) provide--
                          [(i) preparation for postsecondary 
                        educational opportunities, in 
                        appropriate cases;
                          [(ii) strong linkages between 
                        academic and occupational learning;
                          [(iii) preparation for unsubsidized 
                        employment opportunities, in 
                        appropriate cases; and
                          [(iv) effective connections to 
                        intermediaries with strong links to--
                                  [(I) the job market; and
                                  [(II) local and regional 
                                employers.
          [(2) Program elements.--The programs described in 
        paragraph (1) shall provide elements consisting of--
                  [(A) tutoring, study skills training, and 
                instruction, leading to completion of secondary 
                school, including dropout prevention 
                strategies;
                  [(B) alternative secondary school services, 
                as appropriate;
                  [(C) summer employment opportunities that are 
                directly linked to academic and occupational 
                learning;
                  [(D) as appropriate, paid and unpaid work 
                experiences, including internships and job 
                shadowing;
                  [(E) occupational skill training, as 
                appropriate;
                  [(F) leadership development opportunities, 
                which may include community service and peer-
                centered activities encouraging responsibility 
                and other positive social behaviors during non-
                school hours, as appropriate;
                  [(G) supportive services;
                  [(H) adult mentoring for the period of 
                participation and a subsequent period, for a 
                total of not less than 12 months;
                  [(I) followup services for not less than 12 
                months after the completion of participation, 
                as appropriate; and
                  [(J) comprehensive guidance and counseling, 
                which may include drug and alcohol abuse 
                counseling and referral, as appropriate.
          [(3) Additional requirements.--
                  [(A) Information and referrals.--Each local 
                board shall ensure that each participant or 
                applicant who meets the minimum income criteria 
                to be considered an eligible youth shall be 
                provided--
                          [(i) information on the full array of 
                        applicable or appropriate services that 
                        are available through the local board 
                        or other eligible providers or one-stop 
                        partners, including those receiving 
                        funds under this subtitle; and
                          [(ii) referral to appropriate 
                        training and educational programs that 
                        have the capacity to serve the 
                        participant or applicant either on a 
                        sequential or concurrent basis.
                  [(B) Applicants not meeting enrollment 
                requirements.--Each eligible provider of a 
                program of youth activities shall ensure that 
                an eligible applicant who does not meet the 
                enrollment requirements of the particular 
                program or who cannot be served shall be 
                referred for further assessment, as necessary, 
                and referred to appropriate programs in 
                accordance with subparagraph (A) to meet the 
                basic skills and training needs of the 
                applicant.
                  [(C) Involvement in design and 
                implementation.--The local board shall ensure 
                that parents, participants, and other members 
                of the community with experience relating to 
                programs for youth are involved in the design 
                and implementation of the programs described in 
                paragraph (1).
          [(4) Priority.--
                  [(A) In general.--At a minimum, 30 percent of 
                the funds described in paragraph (1) shall be 
                used to provide youth activities to out-of-
                school youth.
                  [(B) Exception.--A State that receives a 
                minimum allotment under section 127(b)(1) in 
                accordance with section 127(b)(1)(C)(iv)(II) or 
                under section 132(b)(1) in accordance with 
                section 132(b)(1)(B)(iv)(II) may reduce the 
                percentage described in subparagraph (A) for a 
                local area in the State, if--
                          [(i) after an analysis of the 
                        eligible youth population in the local 
                        area, the State determines that the 
                        local area will be unable to meet the 
                        percentage described in subparagraph 
                        (A) due to a low number of out-of-
                        school youth; and
                          [(ii)(I) the State submits to the 
                        Secretary, for the local area, a 
                        request including a proposed reduced 
                        percentage for purposes of subparagraph 
                        (A), and the summary of the eligible 
                        youth population analysis; and
                          [(II) the request is approved by the 
                        Secretary.
          [(5) Exceptions.--Not more than 5 percent of 
        participants assisted under this section in each local 
        area may be individuals who do not meet the minimum 
        income criteria to be considered eligible youth, if 
        such individuals are within one or more of the 
        following categories:
                  [(A) Individuals who are school dropouts.
                  [(B) Individuals who are basic skills 
                deficient.
                  [(C) Individuals with educational attainment 
                that is one or more grade levels below the 
                grade level appropriate to the age of the 
                individuals.
                  [(D) Individuals who are pregnant or 
                parenting.
                  [(E) Individuals with disabilities, including 
                learning disabilities.
                  [(F) Individuals who are homeless or runaway 
                youth.
                  [(G) Individuals who are offenders.
                  [(H) Other eligible youth who face serious 
                barriers to employment as identified by the 
                local board.
          [(6) Prohibitions.--
                  [(A) Prohibition against federal control of 
                education.--No provision of this Act shall be 
                construed to authorize any department, agency, 
                officer, or employee of the United States to 
                exercise any direction, supervision, or control 
                over the curriculum, program of instruction, 
                administration, or personnel of any educational 
                institution, school, or school system, or over 
                the selection of library resources, textbooks, 
                or other printed or published instructional 
                materials by any educational institution, 
                school, or school system.
                  [(B) Nonduplication.--All of the funds made 
                available under this Act shall be used in 
                accordance with the requirements of this Act. 
                None of the funds made available under this Act 
                may be used to provide funding under the 
                School-to-Work Opportunities Act of 1994 (20 
                U.S.C. 6101 et seq.) or to carry out, through 
                programs funded under this Act, activities that 
                were funded under the School-to-Work 
                Opportunities Act of 1994, unless the programs 
                funded under this Act serve only those 
                participants eligible to participate in the 
                programs under this Act.
                  [(C) Noninterference and nonreplacement of 
                regular academic requirements.--No funds 
                described in paragraph (1) shall be used to 
                provide an activity for eligible youth who are 
                not school dropouts if participation in the 
                activity would interfere with or replace the 
                regular academic requirements of the youth.
          [(7) Linkages.--In coordinating the programs 
        authorized under this section, youth councils shall 
        establish linkages with educational agencies 
        responsible for services to participants as 
        appropriate.
          [(8) Volunteers.--The local board shall make 
        opportunities available for individuals who have 
        successfully participated in programs carried out under 
        this section to volunteer assistance to participants in 
        the form of mentoring, tutoring, and other activities.]

    CHAPTER 5--[ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING 
             ACTIVITIES] EMPLOYMENT AND TRAINING ACTIVITIES

SEC. 131. GENERAL AUTHORIZATION.

  The Secretary shall make allotments under [paragraphs (1)(B) 
and (2)(B) of] section 132(b) to each State that meets the 
requirements of section 112 and a grant to each outlying area 
that complies with the requirements of this title, to assist 
the State or outlying area, and to enable the State or outlying 
area to assist local areas, for the purpose of providing 
workforce investment activities for [adults, and dislocated 
workers,] individuals in the State or outlying area and in the 
local areas.

SEC. 132. STATE ALLOTMENTS.

  [(a) In General.--The Secretary shall--
          [(1) make allotments and grants from the total amount 
        appropriated under section 137(b) for a fiscal year in 
        accordance with subsection (b)(1); and
          [(2)(A) reserve 20 percent of the amount appropriated 
        under section 137(c) for a fiscal year for use under 
        subsection (b)(2)(A), and under sections 170(b) 
        (relating to dislocated worker technical assistance), 
        171(d) (relating to dislocated worker projects), and 
        173 (relating to national emergency grants, other than 
        under subsection (a)(4), (f), and (g)); and
          [(B) make allotments from 80 percent of the amount 
        appropriated under section 137(c) for a fiscal year in 
        accordance with subsection (b)(2)(B).
  [(b) Allotment Among States.--
          [(1) Adult employment and training activities.--
                  [(A) Reservation for outlying areas.--
                          [(i) In general.--From the amount 
                        made available under subsection (a)(1) 
                        for a fiscal year, the Secretary shall 
                        reserve not more than \1/4\ of 1 
                        percent to provide assistance to the 
                        outlying areas.
                          [(ii) Applicability of additional 
                        requirements.--From the amount reserved 
                        under clause (i), the Secretary shall 
                        provide assistance to the outlying 
                        areas for adult employment and training 
                        activities and statewide workforce 
                        investment activities in accordance 
                        with the requirements of section 
                        127(b)(1)(B), except that the reference 
                        in section 127(b)(1)(B)(i)(II) to 
                        sections 252(d) and 262(a)(1) of the 
                        Job Training Partnership Act shall be 
                        deemed to be a reference to section 
                        202(a)(1) of the Job Training 
                        Partnership Act (as in effect on the 
                        day before the date of enactment of 
                        this Act).
                  [(B) States.--
                          [(i) In general.--After determining 
                        the amount to be reserved under 
                        subparagraph (A), the Secretary shall 
                        allot the remainder of the amount 
                        referred to in subsection (a)(1) for a 
                        fiscal year to the States pursuant to 
                        clause (ii) for adult employment and 
                        training activities and statewide 
                        workforce investment activities.
                          [(ii) Formula.--Subject to clauses 
                        (iii) and (iv), of the remainder--
                                  [(I) 33\1/3\ percent shall be 
                                allotted on the basis of the 
                                relative number of unemployed 
                                individuals in areas of 
                                substantial unemployment in 
                                each State, compared to the 
                                total number of unemployed 
                                individuals in areas of 
                                substantial unemployment in all 
                                States;
                                  [(II) 33\1/3\ percent shall 
                                be allotted on the basis of the 
                                relative excess number of 
                                unemployed individuals in each 
                                State, compared to the total 
                                excess number of unemployed 
                                individuals in all States; and
                                  [(III) 33\1/3\ percent shall 
                                be allotted on the basis of the 
                                relative number of 
                                disadvantaged adults in each 
                                State, compared to the total 
                                number of disadvantaged adults 
                                in all States, except as 
                                described in clause (iii).
                          [(iii) Calculation.--In determining 
                        an allotment under clause (ii)(III) for 
                        any State in which there is a local 
                        area designated under section 
                        116(a)(2)(B), the allotment shall be 
                        based on the higher of--
                                  [(I) the number of adults in 
                                families with an income below 
                                the low-income level in such 
                                area; or
                                  [(II) the number of 
                                disadvantaged adults in such 
                                area.
                          [(iv) Minimum and maximum percentages 
                        and minimum allotments.--In making 
                        allotments under this subparagraph, the 
                        Secretary shall ensure the following:
                                  [(I) Minimum percentage and 
                                allotment.--Subject to 
                                subclause (IV), the Secretary 
                                shall ensure that no State 
                                shall receive an allotment for 
                                a fiscal year that is less than 
                                the greater of--
                                          [(aa) an amount based 
                                        on 90 percent of the 
                                        allotment percentage of 
                                        the State for the 
                                        preceding fiscal year; 
                                        or
                                          [(bb) 100 percent of 
                                        the allotment of the 
                                        State under section 202 
                                        of the Job Training 
                                        Partnership Act (as in 
                                        effect on the day 
                                        before the date of 
                                        enactment of this Act) 
                                        for fiscal year 1998.
                                  [(II) Small state minimum 
                                allotment.--Subject to 
                                subclauses (I), (III), and 
                                (IV), the Secretary shall 
                                ensure that no State shall 
                                receive an allotment under this 
                                subparagraph that is less than 
                                the total of--
                                          [(aa) \3/10\ of 1 
                                        percent of $960,000,000 
                                        of the remainder 
                                        described in clause (i) 
                                        for the fiscal year; 
                                        and
                                          [(bb) if the 
                                        remainder described in 
                                        clause (i) for the 
                                        fiscal year exceeds 
                                        $960,000,000, \2/5\ of 
                                        1 percent of the 
                                        excess.
                                  [(III) Maximum percentage.--
                                Subject to subclause (I), the 
                                Secretary shall ensure that no 
                                State shall receive an 
                                allotment percentage for a 
                                fiscal year that is more than 
                                130 percent of the allotment 
                                percentage of the State for the 
                                preceding fiscal year.
                                  [(IV) Minimum funding.--In 
                                any fiscal year in which the 
                                remainder described in clause 
                                (i) does not exceed 
                                $960,000,000, the minimum 
                                allotments under subclauses (I) 
                                and (II) shall be calculated by 
                                the methodology for calculating 
                                the corresponding allotments 
                                under part A of title II of the 
                                Job Training Partnership Act, 
                                as in effect on July 1, 1998.
                          [(v) Definitions.--For the purpose of 
                        the formula specified in this 
                        subparagraph:
                                  [(I) Adult.--The term 
                                ``adult'' means an individual 
                                who is not less than age 22 and 
                                not more than age 72.
                                  [(II) Allotment percentage.--
                                The term ``allotment 
                                percentage'', used with respect 
                                to fiscal year 2000 or a 
                                subsequent fiscal year, means a 
                                percentage of the remainder 
                                described in clause (i) that is 
                                received through an allotment 
                                made under this subparagraph 
                                for the fiscal year. The term, 
                                used with respect to fiscal 
                                year 1998 or 1999, means the 
                                percentage of the amounts 
                                allotted to States under 
                                section 202(a) of the Job 
                                Training Partnership Act (as in 
                                effect on the day before the 
                                date of enactment of this Act) 
                                that is received under such 
                                section by the State involved 
                                for fiscal year 1998 or 1999.
                                  [(III) Area of substantial 
                                unemployment.--The term ``area 
                                of substantial unemployment'' 
                                means any area that is of 
                                sufficient size and scope to 
                                sustain a program of workforce 
                                investment activities carried 
                                out under this subtitle and 
                                that has an average rate of 
                                unemployment of at least 6.5 
                                percent for the most recent 12 
                                months, as determined by the 
                                Secretary. For purposes of this 
                                subclause, determinations of 
                                areas of substantial 
                                unemployment shall be made once 
                                each fiscal year.
                                  [(IV) Disadvantaged adult.--
                                Subject to subclause (V), the 
                                term ``disadvantaged adult'' 
                                means an adult who received an 
                                income, or is a member of a 
                                family that received a total 
                                family income, that, in 
                                relation to family size, does 
                                not exceed the higher of--
                                          [(aa) the poverty 
                                        line; or
                                          [(bb) 70 percent of 
                                        the lower living 
                                        standard income level.
                                  [(V) Disadvantaged adult 
                                special rule.--The Secretary 
                                shall, as appropriate and to 
                                the extent practicable, exclude 
                                college students and members of 
                                the Armed Forces from the 
                                determination of the number of 
                                disadvantaged adults.
                                  [(VI) Excess number.--The 
                                term ``excess number'' means, 
                                used with respect to the excess 
                                number of unemployed 
                                individuals within a State, the 
                                higher of--
                                          [(aa) the number that 
                                        represents the number 
                                        of unemployed 
                                        individuals in excess 
                                        of 4.5 percent of the 
                                        civilian labor force in 
                                        the State; or
                                          [(bb) the number that 
                                        represents the number 
                                        of unemployed 
                                        individuals in excess 
                                        of 4.5 percent of the 
                                        civilian labor force in 
                                        areas of substantial 
                                        unemployment in such 
                                        State.
          [(2) Dislocated worker employment and training.--
                  [(A) Reservation for outlying areas.--
                          [(i) In general.--From the amount 
                        made available under subsection 
                        (a)(2)(A) for a fiscal year, the 
                        Secretary shall reserve not more than 
                        \1/4\ of 1 percent of the amount 
                        appropriated under section 137(c) for 
                        the fiscal year to provide assistance 
                        to the outlying areas.
                          [(ii) Applicability of additional 
                        requirements.--From the amount reserved 
                        under clause (i), the Secretary shall 
                        provide assistance to the outlying 
                        areas for dislocated worker employment 
                        and training activities and statewide 
                        workforce investment activities in 
                        accordance with the requirements of 
                        section 127(b)(1)(B), except that the 
                        reference in section 
                        127(b)(1)(B)(i)(II) to sections 252(a) 
                        and 262(a)(1) of the Job Training 
                        Partnership Act shall be deemed to be a 
                        reference to section 302(e) of the Job 
                        Training Partnership Act (as in effect 
                        on the day before the date of enactment 
                        of this Act).
                  [(B) States.--
                          [(i) In general.--The Secretary shall 
                        allot the amount referred to in 
                        subsection (a)(2)(B) for a fiscal year 
                        to the States pursuant to clause (ii) 
                        for dislocated worker employment and 
                        training activities and statewide 
                        workforce investment activities.
                          [(ii) Formula.--Of the amount--
                                  [(I) 33\1/3\ percent shall be 
                                allotted on the basis of the 
                                relative number of unemployed 
                                individuals in each State, 
                                compared to the total number of 
                                unemployed individuals in all 
                                States;
                                  [(II) 33\1/3\ percent shall 
                                be allotted on the basis of the 
                                relative excess number of 
                                unemployed individuals in each 
                                State, compared to the total 
                                excess number of unemployed 
                                individuals in all States; and
                                  [(III) 33\1/3\ percent shall 
                                be allotted on the basis of the 
                                relative number of individuals 
                                in each State who have been 
                                unemployed for 15 weeks or 
                                more, compared to the total 
                                number of individuals in all 
                                States who have been unemployed 
                                for 15 weeks or more.
                          [(iii) Definition.--In this 
                        subparagraph, the term ``excess 
                        number'' means, used with respect to 
                        the excess number of unemployed 
                        individuals within a State, the number 
                        that represents the number of 
                        unemployed individuals in excess of 4.5 
                        percent of the civilian labor force in 
                        the State.
          [(3) Definitions.--For the purpose of the formulas 
        specified in this subsection:
                  [(A) Freely associated states.--The term 
                ``Freely Associated States'' means the Republic 
                of the Marshall Islands, the Federated States 
                of Micronesia, and the Republic of Palau.
                  [(B) Low-income level.--The term ``low-income 
                level'' means $7,000 with respect to income in 
                1969, and for any later year means that amount 
                that bears the same relationship to $7,000 as 
                the Consumer Price Index for that year bears to 
                the Consumer Price Index for 1969, rounded to 
                the nearest $1,000.]
  (a) In General.--The Secretary shall--
          (1) reserve \1/2\ of 1 percent of the total amount 
        appropriated under section 137 for a fiscal year, of 
        which--
                  (A) 50 percent shall be used to provide 
                technical assistance under section 170; and
                  (B) 50 percent shall be used for evaluations 
                under section 172;
          (2) reserve not more than 2 percent of the total 
        amount appropriated under section 137 for a fiscal year 
        to make grants to, and enter into contracts or 
        cooperative agreements with Indian tribes, tribal 
        organizations, Alaska-Native entities, Indian-
        controlled organizations serving Indians, or Native 
        Hawaiian organizations to carry out employment and 
        training activities;
          (3) reserve not more than 28 percent of the total 
        amount appropriated under section 137 for a fiscal year 
        to carry out the Jobs Corps program under subtitle C;
          (4) reserve not more than 0.15 percent of the total 
        amount appropriated under section 137 for a fiscal year 
        to carry out military transitional assistance under 
        section 175; and
          (5) from the remaining amount appropriated under 
        section 137 for a fiscal year (after reserving funds 
        under paragraphs (1) through (4)), make allotments in 
        accordance with subsection (b) of this section.
  (b) Workforce Investment Fund.--
          (1) Reservation for outlying areas.--
                  (A) In general.--From the amount made 
                available under subsection (a)(5) for a fiscal 
                year, the Secretary shall reserve not more than 
                \1/4\ of 1 percent to provide assistance to the 
                outlying areas.
                  (B) Restriction.--The Republic of Palau shall 
                cease to be eligible to receive funding under 
                this subparagraph upon entering into an 
                agreement for extension of United States 
                educational assistance under the Compact of 
                Free Association (approved by the Compact of 
                Free Association Amendments Act of 2003 (Public 
                Law 99-658)) after the date of enactment of the 
                Workforce Investment Improvement Act of 2012.
          (2) States.--
                  (A) In general.--After determining the amount 
                to be reserved under paragraph (1), the 
                Secretary shall allot the remainder of the 
                amount referred to in subsection (a)(5) for a 
                fiscal year to the States pursuant to 
                subparagraph (B) for employment and training 
                activities and statewide workforce investment 
                activities.
                  (B) Formula.--Subject to subparagraphs (C) 
                and (D), of the remainder--
                          (i) 25 percent shall be allotted on 
                        the basis of the relative number of 
                        unemployed individuals in areas of 
                        substantial unemployment in each State, 
                        compared to the total number of 
                        unemployed individuals in areas of 
                        substantial unemployment in all States;
                          (ii) 25 percent shall be allotted on 
                        the basis of the relative number of 
                        individuals in the civilian labor force 
                        in each State, compared to the total 
                        number of such individuals in all 
                        States;
                          (iii) 25 percent shall be allotted on 
                        the basis of the relative number of 
                        individuals in each State who have been 
                        unemployed for 15 weeks or more, 
                        compared to the total number of 
                        individuals in all States who have been 
                        unemployed for 15 weeks or more; and
                          (iv) 25 percent shall be allotted on 
                        the basis of the relative number of 
                        disadvantaged youth in each State, 
                        compared to the total number of 
                        disadvantaged youth in all States.
                  (C) Minimum and maximum percentages.--
                          (i) Minimum percentage.--The 
                        Secretary shall ensure that no State 
                        shall receive an allotment under this 
                        paragraph for--
                                  (I) fiscal year 2013, that is 
                                less than 100 percent of the 
                                allotment percentage of the 
                                State for the preceding fiscal 
                                year; and
                                  (II) fiscal year 2014 and 
                                each succeeding fiscal year, 
                                that is less than 90 percent of 
                                the allotment percentage of the 
                                State for the preceding fiscal 
                                year.
                          (ii) Maximum percentage.--Subject to 
                        clause (i), the Secretary shall ensure 
                        that no State shall receive an 
                        allotment under this paragraph for a 
                        fiscal year that is more than 130 
                        percent of the allotment percentage of 
                        the State for the preceding fiscal 
                        year.
                  (D) Small state minimum allotment.--Subject 
                to subparagraph (C), the Secretary shall ensure 
                that no State shall receive an allotment under 
                this paragraph for a fiscal year that is less 
                than \2/10\ of 1 percent of the remainder 
                described in subparagraph (A) for the fiscal 
                year.
                  (E) Definitions.--For the purpose of the 
                formula specified in this paragraph:
                          (i) Allotment percentage.--The term 
                        ``allotment percentage''--
                                  (I) used with respect to 
                                fiscal year 2012, means the 
                                percentage of the amounts 
                                allotted to States under title 
                                I of this Act, title V of the 
                                Older Americans Act of 1965, 
                                sections 4103A and 4104 of 
                                title 38, United States Code, 
                                section 2021 of title 38, 
                                United States Code, section 
                                1144 of title 10, United States 
                                Code, and sections 1 through 14 
                                of the Wagner-Peyser Act, as 
                                such provisions were in effect 
                                on the day before the date of 
                                enactment of the Workforce 
                                Investment Improvement Act of 
                                2012, that is received under 
                                such provisions by the State 
                                involved for fiscal year 2012; 
                                and
                                  (II) used with respect to 
                                fiscal year 2013 or a 
                                subsequent year, means the 
                                percentage of the amounts 
                                allotted to States for fiscal 
                                year 2012 under the provisions 
                                described in subclause (I) that 
                                is received through an 
                                allotment made under this 
                                paragraph for the fiscal year.
                          (ii) Disadvantaged youth.--The term 
                        ``disadvantaged youth'' means an 
                        individual who is not less than age 16 
                        and not more than age 24 who receives 
                        an income, or is a member of a family 
                        that received a total family income, 
                        that in relation to family size, does 
                        not exceed the higher of--
                                  (I) the poverty line; or
                                  (II) 70 percent of the lower 
                                living standard income level.
                          (iii) Individual.--The term 
                        ``individual'' means an individual who 
                        is not less than age 16 and not more 
                        than age 72.

           *       *       *       *       *       *       *

SEC. 133. WITHIN STATE ALLOCATIONS.

  [(a) Reservations for State Activities.--
          [(1) Statewide workforce investment activities.--The 
        Governor of a State shall make the reservation required 
        under section 128(a).
          [(2) Statewide rapid response activities.--The 
        Governor of the State shall reserve not more than 25 
        percent of the total amount allotted to the State under 
        section 132(b)(2)(B) for a fiscal year for statewide 
        rapid response activities described in section 
        134(a)(2)(A).
  [(b) Within State Allocation.--
          [(1) Methods.--The Governor, acting in accordance 
        with the State plan, and after consulting with chief 
        elected officials in the local areas, shall allocate--
                  [(A) the funds that are allotted to the State 
                for adult employment and training activities 
                and statewide workforce investment activities 
                under section 132(b)(1)(B) and are not reserved 
                under subsection (a)(1), in accordance with 
                paragraph (2) or (3); and
                  [(B) the funds that are allotted to the State 
                for dislocated worker employment and training 
                activities under section 132(b)(2)(B) and are 
                not reserved under paragraph (1) or (2) of 
                subsection (a), in accordance with paragraph 
                (2).
          [(2) Formula allocations.--
                  [(A) Adult employment and training 
                activities.--
                          [(i) Allocation.--In allocating the 
                        funds described in paragraph (1)(A) to 
                        local areas, a State may allocate--
                                  [(I) 33\1/3\ percent of the 
                                funds on the basis described in 
                                section 132(b)(1)(B)(ii)(I);
                                  [(II) 33\1/3\ percent of the 
                                funds on the basis described in 
                                section 132(b)(1)(B)(ii)(II); 
                                and
                                  [(III) 33\1/3\ percent of the 
                                funds on the basis described in 
                                clauses (ii)(III) and (iii) of 
                                section 132(b)(1)(B).
                          [(ii) Minimum percentage.--Effective 
                        at the end of the second full fiscal 
                        year after the date on which a local 
                        area is designated under section 116, 
                        the local area shall not receive an 
                        allocation percentage for a fiscal year 
                        that is less than 90 percent of the 
                        average allocation percentage of the 
                        local area for the 2 preceding fiscal 
                        years. Amounts necessary for increasing 
                        such allocations to local areas to 
                        comply with the preceding sentence 
                        shall be obtained by ratably reducing 
                        the allocations to be made to other 
                        local areas under this subparagraph.
                          [(iii) Definition.--The term 
                        ``allocation percentage'', used with 
                        respect to fiscal year 2000 or a 
                        subsequent fiscal year, means a 
                        percentage of the funds referred to in 
                        clause (i), received through an 
                        allocation made under this 
                        subparagraph, for the fiscal year.
                  [(B) Dislocated worker employment and 
                training activities.--
                          [(i) Formula.--In allocating the 
                        funds described in paragraph (1)(B) to 
                        local areas, a State shall allocate the 
                        funds based on an allocation formula 
                        prescribed by the Governor of the 
                        State. Such formula may be amended by 
                        the Governor not more than once for 
                        each program year. Such formula shall 
                        utilize the most appropriate 
                        information available to the Governor 
                        to distribute amounts to address the 
                        State's worker readjustment assistance 
                        needs.
                          [(ii) Information.--The information 
                        described in clause (i) shall include 
                        insured unemployment data, unemployment 
                        concentrations, plant closing and mass 
                        layoff data, declining industries data, 
                        farmer-rancher economic hardship data, 
                        and long-term unemployment data.
                  [(C) Application.--For purposes of carrying 
                out subparagraph (A)--
                          [(i) references in section 132(b) to 
                        a State shall be deemed to be 
                        references to a local area;
                          [(ii) references in section 132(b) to 
                        all States shall be deemed to be 
                        references to all local areas in the 
                        State involved; and
                          [(iii) except as described in clause 
                        (i), references in section 132(b)(1) to 
                        the term ``excess number'' shall be 
                        considered to be references to the term 
                        as defined in section 132(b)(1).
          [(3) Adult employment and training discretionary 
        allocations.--In lieu of making the allocation 
        described in paragraph (2)(A), in allocating the funds 
        described in paragraph (1)(A) to local areas, a State 
        may distribute--
                  [(A) a portion equal to not less than 70 
                percent of the funds in accordance with 
                paragraph (2)(A); and
                  [(B) the remaining portion of the funds on 
                the basis of a formula that--
                          [(i) incorporates additional factors 
                        (other than the factors described in 
                        paragraph (2)(A)) relating to--
                                  [(I) excess poverty in urban, 
                                rural, and suburban local 
                                areas; and
                                  [(II) excess unemployment 
                                above the State average in 
                                urban, rural, and suburban 
                                local areas; and
                          [(ii) was developed by the State 
                        board and approved by the Secretary as 
                        part of the State plan.
          [(4) Transfer authority.--A local board may transfer, 
        if such a transfer is approved by the Governor, not 
        more than 20 percent of the funds allocated to the 
        local area under paragraph (2)(A) or (3), and 20 
        percent of the funds allocated to the local area under 
        paragraph (2)(B), for a fiscal year between--
                  [(A) adult employment and training 
                activities; and
                  [(B) dislocated worker employment and 
                training activities.
          [(5) Allocation.--
                  [(A) In general.--The Governor of the State 
                shall allocate the funds described in paragraph 
                (1) to local areas under paragraphs (2) and (3) 
                for the purpose of providing a single system of 
                employment and training activities for adults 
                and dislocated workers in accordance with 
                subsections (d) and (e) of section 134.
                  [(B) Additional requirements.--
                          [(i) Adults.--Funds allocated under 
                        paragraph (2)(A) or (3) shall be used 
                        by a local area to contribute 
                        proportionately to the costs of the 
                        one-stop delivery system described in 
                        section 134(c) in the local area, and 
                        to pay for employment and training 
                        activities provided to adults in the 
                        local area, consistent with section 
                        134.
                          [(ii) Dislocated workers.--Funds 
                        allocated under paragraph (2)(B) shall 
                        be used by a local area to contribute 
                        proportionately to the costs of the 
                        one-stop delivery system described in 
                        section 134(c) in the local area, and 
                        to pay for employment and training 
                        activities provided to dislocated 
                        workers in the local area, consistent 
                        with section 134.]
  (a) Reservations for Statewide Employment and Training 
Activities.--
          (1) In general.--The Governor of a State shall 
        reserve up to 10 percent of the total amount allotted 
        to the State under section 132(b)(2) for a fiscal year 
        to carry out the statewide activities described in 
        paragraphs (2) and (3) of section 134(a).
          (2) Statewide rapid response activities.--Of the 
        amount reserved under paragraph (1) for a fiscal year, 
        the Governor of the State shall reserve not more than 
        10 percent for statewide rapid response activities 
        described in section 134(a)(4).
          (3) Statewide individuals with barriers to employment 
        grants.--The Governor of a State shall reserve 2 
        percent of the total amount allotted to the State under 
        section 132(b)(2) for a fiscal year to carry out 
        statewide activities described in section 134(a)(5).
  (b) Within State Allocation.--
          (1) Statewide employment and training activities.--
        The Governor, acting in accordance with the State plan, 
        and after consulting with chief elected officials in 
        the local areas, shall--
                  (A) allocate the funds that are allotted to 
                the State for employment and training 
                activities and not reserved under subsection 
                (a), in accordance with paragraph (2)(A); and
                  (B) award the funds that are reserved by the 
                State under subsection (a)(3) through 
                competitive grants to eligible entities, in 
                accordance with section 134(a)(1)(C).
          (2) Formula allocations for the workforce investment 
        fund.--
                  (A) Allocation.--In allocating the funds 
                described in paragraph (1)(A) to local areas, a 
                State shall allocate--
                          (i) 25 percent on the basis described 
                        in section 132(b)(2)(B)(i);
                          (ii) 25 percent on the basis 
                        described in section 132(b)(2)(B)(ii);
                          (iii) 25 percent on the basis 
                        described in section 132(b)(B)(iii); 
                        and
                          (iv) 25 percent on the basis 
                        described in section 132(b)(2)(B)(iv).
                  (B) Minimum and maximum percentages.--
                          (i) Minimum percentage.--The State 
                        shall ensure that no local area shall 
                        receive an allocation under this 
                        paragraph for--
                                  (I) fiscal year 2013, that is 
                                less than 100 percent of the 
                                allocation percentage of the 
                                local area for the preceding 
                                fiscal year; and
                                  (II) fiscal year 2014 and 
                                each succeeding fiscal year, 
                                that is less than 90 percent of 
                                the allocation percentage of 
                                the local area for the 
                                preceding fiscal year.
                          (ii) Maximum percentage.--Subject to 
                        clause (i), the State shall ensure that 
                        no local area shall receive an 
                        allocation for a fiscal year under this 
                        paragraph for a fiscal year that is 
                        more than 130 percent of the allocation 
                        percentage of the local area for the 
                        preceding fiscal year.
                  (C) Definitions.--For the purpose of the 
                formula specified in this paragraph, the term 
                ``allocation percentage''--
                          (i) used with respect to fiscal year 
                        2012, means the percentage of the 
                        amounts allocated to local areas under 
                        title I of this Act, title V of the 
                        Older Americans Act of 1965, sections 
                        4103A and 4104 of title 38, United 
                        States Code, section 2021 of title 38, 
                        United States Code, section 1144 of 
                        title 10, United States Code, and 
                        sections 1 through 14 of the Wagner-
                        Peyser Act, as such provisions were in 
                        effect on the day before the date of 
                        enactment of the Workforce Investment 
                        Improvement Act of 2012, that is 
                        received under such provisions by the 
                        local area involved for fiscal year 
                        2012; and
                          (ii) used with respect to fiscal year 
                        2013 or a subsequent year, means the 
                        percentage of the amounts allocated to 
                        local areas for fiscal year 2012 under 
                        the provisions described in clause (i) 
                        that is received through an allocation 
                        made under this paragraph for the 
                        fiscal year.
  (c) Reallocation Among Local Areas.--
          [(1) In general.--The Governor may, in accordance 
        with this subsection, reallocate to eligible local 
        areas within the State amounts that are allocated under 
        paragraph (2)(A) or (3) of subsection (b) for adult 
        employment and training activities and that are 
        available for reallocation.]
          (1) In general.--The Governor, may in accordance with 
        this subsection, reallocate to eligible local areas 
        within the State amounts that are allocated under 
        subsection (b) for employment and training activities 
        and that are available for reallocation.
          (2) Amount.--The amount available for reallocation 
        for a program year is equal to the amount by which the 
        unobligated balance of the local area allocation under 
        [paragraph (2)(A) or (3) of subsection (b) for such 
        activities] subsection (b) for such activities, at the 
        end of the program year prior to the program year for 
        which the determination under this paragraph is made 
        exceeds 20 percent of such allocation for the prior 
        program year.
          [(3) Reallocation.--In making reallocations to 
        eligible local areas of amounts available pursuant to 
        paragraph (2) for a program year, the Governor shall 
        allocate to each eligible local area within the State 
        an amount based on the relative amount allocated to 
        such local area under subsection (b)(3) for such 
        activities for the prior program year, as compared to 
        the total amount allocated to all eligible local areas 
        in the State under subsection (b)(3) for such 
        activities for such prior program year. For purposes of 
        this paragraph, local areas that received allocations 
        under subsection (b)(2)(A) for the prior program year 
        shall be treated as if the local areas received 
        allocations under subsection (b)(3) for such year.]
          (3) Reallocations.--In making reallocations to 
        eligible local areas of amounts available pursuant to 
        paragraph (2) for a program year, the Governor shall 
        allocate to each eligible local area within the State 
        an amount based on the relative amount allocated to 
        such local area under subsection (b)(2) for such 
        activities for such prior program year, as compared to 
        the total amount allocated to all eligible local areas 
        in the State under subsection (b)(2) for such 
        activities for such prior program year.
          (4) Eligibility.--For purposes of this subsection, an 
        eligible local area means a local area that has 
        obligated at least 80 percent of the local area 
        allocation under [paragraph (2)(A) or (3) of] 
        subsection (b) for such activities, for the program 
        year prior to the program year for which the 
        determination under paragraph (2) is made.
  (d) Local Administrative Cost Limit.--Of the amounts 
allocated to a local area under this section for a fiscal year, 
not more than 10 percent of the amount may be used by the local 
board involved for the administrative costs of carrying out 
local workforce investment activities in the local area under 
this chapter.

SEC. 134. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.

  [(a) Statewide Employment and Training Activities.--
          [(1) In general.--Funds reserved by a Governor for a 
        State--
                  [(A) as described in section 133(a)(2) shall 
                be used to carry out the statewide rapid 
                response activities described in paragraph 
                (2)(A); and
                  [(B) as described in sections 128(a) and 
                133(a)(1)--
                          [(i) shall be used to carry out the 
                        statewide employment and training 
                        activities described in paragraph 
                        (2)(B); and
                          [(ii) may be used to carry out any of 
                        the statewide employment and training 
                        activities described in paragraph (3),
                regardless of whether the funds were allotted 
                to the State under section 127(b)(1) or under 
                paragraph (1) or (2) of section 132(b).
          [(2) Required statewide employment and training 
        activities.--
                  [(A) Statewide rapid response activities.--A 
                State shall use funds reserved as described in 
                section 133(a)(2) to carry out statewide rapid 
                response activities, which shall include--
                          [(i) provision of rapid response 
                        activities, carried out in local areas 
                        by the State or by an entity designated 
                        by the State, working in conjunction 
                        with the local boards and the chief 
                        elected officials in the local areas; 
                        and
                          [(ii) provision of additional 
                        assistance to local areas that 
                        experience disasters, mass layoffs or 
                        plant closings, or other events that 
                        precipitate substantial increases in 
                        the number of unemployed individuals, 
                        carried out in local areas by the State 
                        or by an entity designated by the 
                        State, working in conjunction with the 
                        local boards and the chief elected 
                        officials in the local areas.
                  [(B) Other required statewide employment and 
                training activities.--A State shall use funds 
                reserved as described in sections 128(a) and 
                133(a)(1) (regardless of whether the funds were 
                allotted to the State under section 127(b)(1) 
                or paragraph (1) or (2) of section 132(b)) to 
                carry out other statewide employment and 
                training activities, which shall include--
                          [(i) disseminating the State list of 
                        eligible providers of training 
                        services, including eligible providers 
                        of nontraditional training services, 
                        information identifying eligible 
                        providers of on-the-job training and 
                        customized training, and performance 
                        information and program cost 
                        information, as described in 
                        subsections (e) and (h) of section 122;
                          [(ii) conducting evaluations, under 
                        section 136(e), of activities 
                        authorized in this section, in 
                        coordination with the activities 
                        carried out under section 172;
                          [(iii) providing incentive grants to 
                        local areas for regional cooperation 
                        among local boards (including local 
                        boards for a designated region as 
                        described in section 116(c)), for local 
                        coordination of activities carried out 
                        under this Act, and for exemplary 
                        performance by local areas on the local 
                        performance measures;
                          [(iv) providing technical assistance 
                        to local areas that fail to meet local 
                        performance measures;
                          [(v) assisting in the establishment 
                        and operation of one-stop delivery 
                        systems described in subsection (c); 
                        and
                          [(vi) operating a fiscal and 
                        management accountability information 
                        system under section 136(f).
          [(3) Allowable statewide employment and training 
        activities.--
                  [(A) In general.--A State may use funds 
                reserved as described in sections 128(a) and 
                133(a)(1) (regardless of whether the funds were 
                allotted to the State under section 127(b)(1) 
                or paragraph (1) or (2) of section 132(b)) to 
                carry out additional statewide employment and 
                training activities, which may include--
                          [(i) subject to subparagraph (B), 
                        administration by the State of the 
                        activities authorized under this 
                        section;
                          [(ii) provision of capacity building 
                        and technical assistance to local 
                        areas, one-stop operators, one-stop 
                        partners, and eligible providers, 
                        including the development and training 
                        of staff and the development of 
                        exemplary program activities;
                          [(iii) conduct of research and 
                        demonstrations;
                          [(iv)(I) implementation of innovative 
                        incumbent worker training programs, 
                        which may include the establishment and 
                        implementation of an employer loan 
                        program to assist in skills upgrading; 
                        and
                          [(II) the establishment and 
                        implementation of programs targeted to 
                        empowerment zones and enterprise 
                        communities;
                          [(v) support for the identification 
                        of eligible providers of training 
                        services as required under section 122;
                          [(vi)(I) implementation of innovative 
                        programs for displaced homemakers, 
                        which for purposes of this subclause 
                        may include an individual who is 
                        receiving public assistance and is 
                        within 2 years of exhausting lifetime 
                        eligibility under part A of title IV of 
                        the Social Security Act (42 U.S.C. 601 
                        et seq.); and
                          [(II) implementation of programs to 
                        increase the number of individuals 
                        training for and placed in 
                        nontraditional employment; and
                          [(vii) carrying out other activities 
                        authorized in this section that the 
                        State determines to be necessary to 
                        assist local areas in carrying out 
                        activities described in subsection (d) 
                        or (e) through the statewide workforce 
                        investment system.
                  [(B) Limitation.--
                          [(i) In general.--Of the funds 
                        allotted to a State under sections 
                        127(b) and 132(b) and reserved as 
                        described in sections 128(a) and 
                        133(a)(1) for a fiscal year--
                                  [(I) not more than 5 percent 
                                of the amount allotted under 
                                section 127(b)(1);
                                  [(II) not more than 5 percent 
                                of the amount allotted under 
                                section 132(b)(1); and
                                  [(III) not more than 5 
                                percent of the amount allotted 
                                under section 132(b)(2),
                        may be used by the State for the 
                        administration of youth activities 
                        carried out under section 129 and 
                        employment and training activities 
                        carried out under this section.
                          [(ii) Use of funds.--Funds made 
                        available for administrative costs 
                        under clause (i) may be used for the 
                        administrative cost of any of the 
                        statewide youth activities or statewide 
                        employment and training activities, 
                        regardless of whether the funds were 
                        allotted to the State under section 
                        127(b)(1) or paragraph (1) or (2) of 
                        section 132(b).
  [(b) Local Employment and Training Activities.--Funds 
allocated to a local area for adults under paragraph (2)(A) or 
(3), as appropriate, of section 133(b), and funds allocated to 
a local area for dislocated workers under section 
133(b)(2)(B)--
          [(1) shall be used to carry out employment and 
        training activities described in subsection (d) for 
        adults or dislocated workers, respectively; and
          [(2) may be used to carry out employment and training 
        activities described in subsection (e) for adults or 
        dislocated workers, respectively.
  [(c) Establishment of One-Stop Delivery System.--
          [(1) In general.--There shall be established in a 
        State that receives an allotment under section 132(b) a 
        one-stop delivery system, which--
                  [(A) shall provide the core services 
                described in subsection (d)(2);
                  [(B) shall provide access to intensive 
                services and training services as described in 
                paragraphs (3) and (4) of subsection (d), 
                including serving as the point of access to 
                individual training accounts for training 
                services to participants in accordance with 
                subsection (d)(4)(G);
                  [(C) shall provide access to the activities 
                carried out under subsection (e), if any;
                  [(D) shall provide access to programs and 
                activities carried out by one-stop partners and 
                described in section 121(b); and
                  [(E) shall provide access to the information 
                described in section 15 of the Wagner-Peyser 
                Act and all job search, placement, recruitment, 
                and other labor exchange services authorized 
                under the Wagner-Peyser Act (29 U.S.C. 49 et 
                seq.).
          [(2) One-stop delivery.--At a minimum, the one-stop 
        delivery system--
                  [(A) shall make each of the programs, 
                services, and activities described in paragraph 
                (1) accessible at not less than one physical 
                center in each local area of the State; and
                  [(B) may also make programs, services, and 
                activities described in paragraph (1) 
                available--
                          [(i) through a network of affiliated 
                        sites that can provide one or more of 
                        the programs, services, and activities 
                        to individuals; and
                          [(ii) through a network of eligible 
                        one-stop partners--
                                  [(I) in which each partner 
                                provides one or more of the 
                                programs, services, and 
                                activities to such individuals 
                                and is accessible at an 
                                affiliated site that consists 
                                of a physical location or an 
                                electronically or 
                                technologically linked access 
                                point; and
                                  [(II) that assures 
                                individuals that information on 
                                the availability of the core 
                                services will be available 
                                regardless of where the 
                                individuals initially enter the 
                                statewide workforce investment 
                                system, including information 
                                made available through an 
                                access point described in 
                                subclause (I).
          [(3) Specialized centers.--The centers and sites 
        described in paragraph (2) may have a specialization in 
        addressing special needs, such as the needs of 
        dislocated workers.]
  (a) Statewide Employment and Training Activities.--
          (1) In general.--
                  (A) Distribution of statewide activities.--
                Funds reserved by a Governor for a State as 
                described in section 133(a)(1)--
                          (i) shall be used to carry out the 
                        statewide employment and training 
                        activities described in paragraph (2); 
                        and
                          (ii) may be used to carry out any of 
                        the statewide employment and training 
                        activities described in paragraph (3).
                  (B) Statewide rapid response activities.--
                Funds reserved by a Governor for a State as 
                described in section 133(a)(2) shall be used to 
                carry out the statewide rapid response 
                activities described in paragraph (4).
                  (C) Statewide individuals with barriers to 
                employment grants.--Funds reserved by a 
                Governor for a State as described in section 
                133(a)(3) shall be used to carry out the 
                Statewide Individuals with Barriers to 
                Employment Grant competition described in 
                paragraph (5).
          (2) Required statewide employment and training 
        activities.--A State shall use funds reserved as 
        described in section 133(a)(1) to carry out statewide 
        employment and training activities, which shall 
        include--
                  (A) supporting the provision of work ready 
                services described in subsection (c)(2) in the 
                one-stop delivery system;
                  (B) implementing innovative programs and 
                strategies designed to meet the needs of all 
                employers in the State, including small 
                employers, which may include incumbent worker 
                training programs, sectoral and industry 
                cluster strategies and partnerships, career 
                ladder programs, micro-enterprise and 
                entrepreneurial training and support programs, 
                utilization of effective business 
                intermediaries, activities to improve linkages 
                between the one-stop delivery system in the 
                State and all employers (including small 
                employers) in the State, and other business 
                services and strategies that better engage 
                employers in workforce investment activities 
                and make the workforce investment system more 
                relevant to the needs of State and local 
                businesses, consistent with the objectives of 
                this title;
                  (C) implementing strategies and services that 
                will be used in the State to assist at-risk 
                youth and out-of-school youth in acquiring the 
                education and skills, credentials (including 
                recognized postsecondary credentials and 
                industry-recognized credentials), and 
                employment experience to succeed in the labor 
                market; and
                  (D) conducting evaluations under section 
                136(e) of activities authorized under this 
                chapter in coordination with evaluations 
                carried out by the Secretary under section 172.
          (3) Allowable statewide employment and training 
        activities.--A State may use funds reserved as 
        described in section 133(a)(1) to carry out statewide 
        employment and training activities which may include--
                  (A) providing incentive grants to local areas 
                for regional cooperation among local boards 
                (including local boards in a designated region 
                as described in section 116(c)), for local 
                coordination of activities carried out under 
                this Act, and for exemplary performance by 
                local areas on the local performance measures;
                  (B) providing technical assistance and 
                capacity building to local areas, one-stop 
                operators, one-stop partners, and eligible 
                providers, including the development and 
                training of staff, the development of exemplary 
                program activities, and the provision of 
                technical assistance to local areas that fail 
                to meet local performance measures;
                  (C) operating a fiscal and management 
                accountability system under section 136(f);
                  (D) carrying out monitoring and oversight of 
                activities carried out under this chapter;
                  (E) developing strategies for effectively 
                integrating programs and services among one-
                stop partners;
                  (F) carrying out activities to facilitate 
                remote access to services provided through a 
                one-stop delivery system, including 
                facilitating access through the use of 
                technology; and
                  (G) incorporating pay-for-performance 
                contracting strategies as an element in funding 
                activities under this section.
          (4) Statewide rapid response activities.--A State 
        shall use funds reserved as described in section 
        133(a)(2) to carry out statewide rapid response 
        activities, which shall include--
                  (A) provision of rapid response activities, 
                carried out in local areas by the State or by 
                an entity designated by the State, working in 
                conjunction with the local boards and the chief 
                elected officials in the local areas; and
                  (B) provision of additional assistance to 
                local areas that experience disasters, mass 
                layoffs or plant closings, or other events that 
                precipitate substantial increases in the number 
                of unemployed individuals, carried out in local 
                areas by the State or by an entity designated 
                by the State, working in conjunction with the 
                local boards and the chief elected officials in 
                the local areas.
          (5) Statewide grants for individuals with barriers to 
        employment.--
                  (A) In general.--Of the funds reserved as 
                described in section 133(a)(3), the Governor of 
                a State--
                          (i) may reserve up to 5 percent to 
                        provide technical assistance to, and 
                        conduct evaluations as described in 
                        section 136(e), of the programs and 
                        activities carried out under this 
                        paragraph; and
                          (ii) using the remainder, shall award 
                        grants on a competitive basis to 
                        eligible entities described in 
                        subparagraph (B) to carry out 
                        employment and training programs 
                        authorized under this paragraph for 
                        individuals with barriers to employment 
                        that meet specific performance outcomes 
                        and criteria established by the 
                        Governor under subparagraph (G).
                  (B) Eligible entity defined.--For purposes of 
                this paragraph, the term ``eligible entity'' 
                means an entity that--
                          (i) is a--
                                  (I) local board or a 
                                consortium of local boards;
                                  (II) nonprofit entity, for 
                                profit entity, or a consortium 
                                of nonprofit or for-profit 
                                entities; or
                                  (III) consortium of the 
                                entities described in 
                                subclauses (I) and (II);
                          (ii) has a demonstrated record of 
                        placing individuals into unsubsidized 
                        employment and serving hard to serve 
                        individuals; and
                          (iii) agrees to be reimbursed 
                        primarily on the basis of achievement 
                        of specified performance outcomes and 
                        criteria established under subparagraph 
                        (F).
                  (C) Grant period.--
                          (i) In general.--A grant under this 
                        paragraph shall be awarded for a period 
                        of 1 year.
                          (ii) Grant renewal.--A Governor of a 
                        State may renew, for up to 4 additional 
                        1-year periods, a grant awarded under 
                        this paragraph.
                  (D) Eligible participants.--To be eligible to 
                participate in activities under this paragraph, 
                an individual shall be a low-income individual 
                between the ages of 16 and 74 or a member of a 
                low-income family.
                  (E) Use of funds.--An eligible entity 
                receiving a grant under this paragraph shall 
                use such funds for activities that are designed 
                to assist eligible participants in obtaining 
                employment and acquiring the education and 
                skills necessary to succeed in the labor 
                market.
                  (F) Applications.--To be eligible to receive 
                a grant under this paragraph, an eligible 
                entity shall submit an application to a State 
                at such time, in such manner, and containing 
                such information as the State may require, 
                including--
                          (i) a description of how the 
                        strategies and activities will be 
                        aligned with the State plan submitted 
                        under section 112 and the local plans 
                        submitted under section 118 with 
                        respect to the areas of the State that 
                        will be the focus of grant activities 
                        under this paragraph;
                          (ii) a description of the educational 
                        and skills training programs and 
                        activities the eligible entities will 
                        provide to eligible participants under 
                        this paragraph;
                          (iii) how the eligible entity will 
                        collaborate with State and local 
                        workforce investment systems 
                        established under this title in the 
                        provision of such programs and 
                        activities;
                          (iv) a description of the programs of 
                        demonstrated effectiveness on which the 
                        provision of such educational and 
                        skills training programs and activities 
                        are based, and a description of how 
                        such programs and activities will 
                        improve the education and skills 
                        training for eligible participants;
                          (v) a description of the populations 
                        to be served and the skill needs of 
                        those populations, and the manner in 
                        which eligible participants will be 
                        recruited and selected as participants;
                          (vi) a description of the private, 
                        public, local, and State resources that 
                        will be leveraged, in addition to the 
                        grant funds provided for the programs 
                        and activities under this paragraph, 
                        and how the entity will ensure the 
                        sustainability of such programs and 
                        activities after grant funds are no 
                        longer available;
                          (vii) a description of the extent of 
                        the involvement of employers in such 
                        programs and activities;
                          (viii) a description of the levels of 
                        performance the eligible entity expects 
                        to achieve with respect to the 
                        indicators of performance for all 
                        individuals specified in section in 
                        136(b)(2);
                          (ix) a detailed budget and a 
                        description of the system of fiscal 
                        controls, and auditing and 
                        accountability procedures that will be 
                        used to ensure fiscal soundness for the 
                        programs and activities provided under 
                        this paragraph;
                          (x) the information described in 
                        clauses (i) through (vii) of 
                        subparagraph (G); and
                          (xi) any other criteria the Governor 
                        may require.
                  (G) Performance outcomes and criteria.--Not 
                later than 6 months after the date of the 
                enactment of the Workforce Investment 
                Improvement Act of 2012, the Governor of the 
                State shall establish and publish specific 
                performance measures for the initial 
                qualification of eligible entities to receive a 
                grant under this section. At a minimum, the 
                Governor shall require each eligible entity 
                to--
                          (i) identify a particular program 
                        area and client population that is not 
                        achieving optimal outcomes;
                          (ii) provide evidence that the 
                        proposed strategy would achieve better 
                        results;
                          (iii) clearly articulate and quantify 
                        the improved outcomes of such new 
                        approach;
                          (iv) identify data that would be 
                        required to evaluate whether outcomes 
                        are being achieved for a target 
                        population and a comparison group;
                          (v) identify estimated savings that 
                        would result from the improved 
                        outcomes, including to other programs 
                        or units of government;
                          (vi) demonstrate the capacity to 
                        collect required data, track outcomes, 
                        and validate those outcomes; and
                          (vii) any other criteria the Governor 
                        may require.
          (6) Limitation.--Not more than 5 percent of the funds 
        allotted under section 132(b) to a State and reserved 
        as described in section 133(a)(1) may be used by the 
        State for administrative costs carried out under this 
        subsection.
  (b) Local Employment and Training Activities.--Funds 
allocated to a local area under section 133(b)(2)--
          (1) shall be used to carry out employment and 
        training activities described in subsection (c); and
          (2) may be used to carry out employment and training 
        activities described in subsection (d).
  [(d)] (c) Required Local Employment and Training 
Activities.--
          [(1) In general.--
                  [(A) Allocated funds.--Funds allocated to a 
                local area for adults under paragraph (2)(A) or 
                (3), as appropriate, of section 133(b), and 
                funds allocated to the local area for 
                dislocated workers under section 133(b)(2)(B), 
                shall be used--
                          [(i) to establish a one-stop delivery 
                        system described in subsection (c);
                          [(ii) to provide the core services 
                        described in paragraph (2) to adults 
                        and dislocated workers, respectively, 
                        through the one-stop delivery system in 
                        accordance with such paragraph;
                          [(iii) to provide the intensive 
                        services described in paragraph (3) to 
                        adults and dislocated workers, 
                        respectively, described in such 
                        paragraph; and
                          [(iv) to provide training services 
                        described in paragraph (4) to adults 
                        and dislocated workers, respectively, 
                        described in such paragraph.
                  [(B) Other funds.--A portion of the funds 
                made available under Federal law authorizing 
                the programs and activities described in 
                section 121(b)(1)(B), including the Wagner-
                Peyser Act (29 U.S.C. 49 et seq.), shall be 
                used as described in clauses (i) and (ii) of 
                subparagraph (A), to the extent not 
                inconsistent with the Federal law involved.]
          (1) In general.--Funds allocated to a local area 
        under section 133(b)(2) shall be used--
                  (A) to establish a one-stop delivery system 
                as described in section 121(e);
                  (B) to provide the work ready services 
                described in paragraph (2) through the one-stop 
                delivery system in accordance with such 
                paragraph; and
                  (C) to provide training services described in 
                paragraph (4) in accordance with such 
                paragraph.
          (2) [Core services] Work ready services.--Funds 
        described in paragraph (1)(A) shall be used to provide 
        [core services] work ready services, which shall be 
        available to individuals [who are adults or dislocated 
        workers] through the one-stop delivery system and 
        shall, at a minimum, include--
                  (A) determinations of whether the individuals 
                are eligible to receive assistance under this 
                subtitle and assistance in obtaining 
                eligibility determinations under the other one-
                stop partner programs through such activities 
                as assisting in the submission of applications, 
                the provision of information on the results of 
                such applications, the provision of intake 
                services and information, and, where 
                appropriate and consistent with the authorizing 
                statute of the one-stop partner program, 
                determinations of eligibility;

           *       *       *       *       *       *       *

                  [(D) job search and placement assistance, and 
                where appropriate, career counseling;]
                  (D) labor exchange services, including--
                          (i) job search and placement 
                        assistance, and where appropriate, 
                        career counseling;
                          (ii) appropriate recruitment services 
                        for employers, including small 
                        employers, in the local area, which may 
                        include services described in this 
                        subsection, including information and 
                        referral to specialized business 
                        services not traditionally offered 
                        through the one-stop delivery system; 
                        and
                          (iii) reemployment services provided 
                        to unemployment claimants, including 
                        claimants identified as in need of such 
                        services under the worker profiling 
                        system established under section 303(j) 
                        of the Social Security Act (42 U.S.C. 
                        503(j));
                  (E) provision of [employment statistics] 
                workforce and labor market information, 
                including the provision of accurate information 
                relating to local, regional, and national labor 
                market areas, including--
                          (i) * * *

           *       *       *       *       *       *       *

                  (F) provision of performance information and 
                program cost information on eligible providers 
                of training services as described in section 
                122, provided by program, [and eligible 
                providers of youth activities described in 
                section 123,] providers of adult education 
                described in title II, providers of career and 
                technical education activities at the 
                postsecondary level, and career and technical 
                education activities available to school 
                dropouts, under the Carl D. Perkins Career and 
                Technical Education Act of 2006 (20 U.S.C. 2301 
                et seq.), and providers of vocational 
                rehabilitation program activities described in 
                title I of the Rehabilitation Act of 1973 (29 
                U.S.C. 720 et seq.);

           *       *       *       *       *       *       *

                  (I) provision of information regarding filing 
                claims for unemployment compensation and the 
                administration of the work test for the 
                unemployment compensation system;
                  [(J) assistance in establishing eligibility 
                for--
                          [(i) welfare-to-work activities 
                        authorized under section 403(a)(5) of 
                        the Social Security Act (as added by 
                        section 5001 of the Balanced Budget Act 
                        of 1997) available in the local area; 
                        and
                          [(ii) programs of financial aid 
                        assistance for training and education 
                        programs that are not funded under this 
                        Act and are available in the local 
                        area; and]
                  (J) assistance in establishing eligibility 
                for programs of financial aid assistance for 
                training and education programs that are not 
                funded under this Act and are available in the 
                local area;
                  (K) the provision of information from 
                official publications of the Internal Revenue 
                Service regarding Federal tax credits available 
                to individuals relating to education, job 
                training and employment;
                  (L) comprehensive and specialized assessments 
                of the skill levels and service needs of 
                workers, which may include--
                          (i) diagnostic testing and use of 
                        other assessment tools; and
                          (ii) in-depth interviewing and 
                        evaluation to identify employment 
                        barriers and appropriate employment 
                        goals;
                  (M) development of an individual employment 
                plan, to identify the employment goals, 
                appropriate achievement objectives, and 
                appropriate combination of services for the 
                participation to achieve the employment goals;
                  (N) group counseling;
                  (O) individual counseling and career 
                planning;
                  (P) case management;
                  (Q) short-term pre-career services, including 
                development of learning skills, communications 
                skills, interviewing skills, punctuality, 
                personal maintenance skills, and professional 
                conduct, to prepare individuals for 
                unsubsidized employment or training;
                  (R) internships and work experience;
                  (S) literacy activities relating to basic 
                work readiness, information and communication 
                technology literacy activities, and financial 
                literacy activities, if such activities are not 
                available to participants in the local area 
                under programs administered under the Adult 
                Education and Family Literacy Act (20 U.S.C. 
                2901 et seq.);
                  (T) out-of-area job search assistance and 
                relocation assistance; and
                  [(K)] (U) followup services, including 
                counseling regarding the workplace, for 
                participants in workforce investment activities 
                authorized under this subtitle who are placed 
                in unsubsidized employment, for not less than 
                12 months after the first day of the 
                employment, as appropriate.
          [(3) Intensive services.--
                  [(A) In general.--Funds allocated to a local 
                area for adults under paragraph (2)(A) or (3), 
                as appropriate, of section 133(b), and funds 
                allocated to the local area for dislocated 
                workers under section 133(b)(2)(B), shall be 
                used to provide intensive services to adults 
                and dislocated workers, respectively--
                          [(i)(I) who are unemployed and are 
                        unable to obtain employment through 
                        core services provided under paragraph 
                        (2); and
                          [(II) who have been determined by a 
                        one-stop operator to be in need of more 
                        intensive services in order to obtain 
                        employment; or
                          [(ii) who are employed, but who are 
                        determined by a one-stop operator to be 
                        in need of such intensive services in 
                        order to obtain or retain employment 
                        that allows for self-sufficiency.
                  [(B) Delivery of services.--Such intensive 
                services shall be provided through the one-stop 
                delivery system--
                          [(i) directly through one-stop 
                        operators identified pursuant to 
                        section 121(d); or
                          [(ii) through contracts with service 
                        providers, which may include contracts 
                        with public, private for-profit, and 
                        private nonprofit service providers, 
                        approved by the local board.
                  [(C) Types of services.--Such intensive 
                services may include the following:
                          [(i) Comprehensive and specialized 
                        assessments of the skill levels and 
                        service needs of adults and dislocated 
                        workers, which may include--
                                  [(I) diagnostic testing and 
                                use of other assessment tools; 
                                and
                                  [(II) in-depth interviewing 
                                and evaluation to identify 
                                employment barriers and 
                                appropriate employment goals.
                          [(ii) Development of an individual 
                        employment plan, to identify the 
                        employment goals, appropriate 
                        achievement objectives, and appropriate 
                        combination of services for the 
                        participant to achieve the employment 
                        goals.
                          [(iii) Group counseling.
                          [(iv) Individual counseling and 
                        career planning.
                          [(v) Case management for participants 
                        seeking training services under 
                        paragraph (4).
                          [(vi) Short-term prevocational 
                        services, including development of 
                        learning skills, communication skills, 
                        interviewing skills, punctuality, 
                        personal maintenance skills, and 
                        professional conduct, to prepare 
                        individuals for unsubsidized employment 
                        or training.]
          (3) Delivery of services.--The work ready services 
        described in paragraph (2) shall be provided through 
        the one-stop delivery system and may be provided 
        through contracts with public, private for-profit, and 
        private nonprofit service providers, approved by the 
        local board.
          (4) Training services.--
                  [(A) In general.--Funds allocated to a local 
                area for adults under paragraph (2)(A) or (3), 
                as appropriate, of section 133(b), and funds 
                allocated to a local area for dislocated 
                workers under section 133(b)(2)(B) shall be 
                used to provide training services to adults and 
                dislocated workers, respectively--
                          [(i) who have met the eligibility 
                        requirements for intensive services 
                        under paragraph (3)(A) and who are 
                        unable to obtain or retain employment 
                        through such services;
                          [(ii) who after an interview, 
                        evaluation, or assessment, and case 
                        management, have been determined by a 
                        one-stop operator or one-stop partner, 
                        as appropriate, to be in need of 
                        training services and to have the 
                        skills and qualifications to 
                        successfully participate in the 
                        selected program of training services;
                          [(iii) who select programs of 
                        training services that are directly 
                        linked to the employment opportunities 
                        in the local area involved or in 
                        another area in which the adults or 
                        dislocated workers receiving such 
                        services are willing to relocate;
                          [(iv) who meet the requirements of 
                        subparagraph (B); and
                          [(v) who are determined to be 
                        eligible in accordance with the 
                        priority system, if any, in effect 
                        under subparagraph (E).]
                  (A) In general.--Funds allocated to a local 
                area under section 133(b) shall be used to 
                provide training services to individuals who--
                          (i) after an interview, evaluation, 
                        or assessment, and case management, 
                        have been determined by a one-stop 
                        operator or one-stop partner, as 
                        appropriate, to--
                                  (I) be in need of training 
                                services to obtain or retain 
                                employment; and
                                  (II) have the skills and 
                                qualifications to successfully 
                                participate in the selected 
                                program of training services;
                          (ii) select programs of training 
                        services that are directly linked to 
                        the employment opportunities in the 
                        local area involved or in another area 
                        in which the individual receiving such 
                        services are willing to commute or 
                        relocate; and
                          (iii) who meet the requirements of 
                        subparagraph (B);
                  (B) Qualification.--
                          (i) Requirement.--[Except] 
                        Notwithstanding section 479B of the 
                        Higher Education Act of 1965 (20 U.S.C. 
                        1087uu) and except as provided in 
                        clause (ii), provision of such training 
                        services shall be limited to 
                        individuals who--
                                  (I) * * *

           *       *       *       *       *       *       *

                  [(D) Training services.--Training services 
                may include--
                          [(i) occupational skills training, 
                        including training for nontraditional 
                        employment;
                          [(ii) on-the-job training;
                          [(iii) programs that combine 
                        workplace training with related 
                        instruction, which may include 
                        cooperative education programs;
                          [(iv) training programs operated by 
                        the private sector;
                          [(v) skill upgrading and retraining;
                          [(vi) entrepreneurial training;
                          [(vii) job readiness training;
                          [(viii) adult education and literacy 
                        activities provided in combination with 
                        services described in any of clauses 
                        (i) through (vii); and
                          [(ix) customized training conducted 
                        with a commitment by an employer or 
                        group of employers to employ an 
                        individual upon successful completion 
                        of the training.
                  [(E) Priority.--In the event that funds 
                allocated to a local area for adult employment 
                and training activities under paragraph (2)(A) 
                or (3) of section 133(b) are limited, priority 
                shall be given to recipients of public 
                assistance and other low-income individuals for 
                intensive services and training services. The 
                appropriate local board and the Governor shall 
                direct the one-stop operators in the local area 
                with regard to making determinations related to 
                such priority.]
                  (D) Training services.--Training services 
                authorized under this paragraph may include--
                          (i) occupational skills training;
                          (ii) on-the-job training;
                          (iii) skill upgrading and retraining;
                          (iv) entrepreneurial training;
                          (v) education activities leading to a 
                        regular secondary school diploma or its 
                        recognized equivalent in combination 
                        with, concurrently or subsequently, 
                        occupational skills training;
                          (vi) adult education and literacy 
                        activities provided in conjunction with 
                        other training authorized under this 
                        subparagraph;
                          (vii) workplace training combined 
                        with related instruction; and
                          (viii) occupational skills training 
                        that incorporates English language 
                        acquisition.
                  [(F)] (E) Consumer choice requirements.--
                          (i) * * *
                          (ii) Eligible providers.--Each local 
                        board, through one-stop centers 
                        referred to in [subsection (c)] section 
                        121, shall make available--
                                  (I) * * *
                                  (II) the performance 
                                information and performance 
                                cost information relating to 
                                eligible providers of training 
                                services described in 
                                [subsections (e) and (h)] 
                                subsection (i) of section 122.
                          [(iii) Individual training 
                        accounts.--An individual who seeks 
                        training services and who is eligible 
                        pursuant to subparagraph (A), may, in 
                        consultation with a case manager, 
                        select an eligible provider of training 
                        services from the list or identifying 
                        information for providers described in 
                        clause (ii)(I). Upon such selection, 
                        the one-stop operator involved shall, 
                        to the extent practicable, refer such 
                        individual to the eligible provider of 
                        training services, and arrange for 
                        payment for such services through an 
                        individual training account.]
                          (iii) Career enhancement accounts.--
                        An individual who seeks training 
                        services and who is eligible pursuant 
                        to subparagraph (A), may, in 
                        consultation with a case manager, 
                        select an eligible provider of training 
                        services from the list or identifying 
                        information for providers described in 
                        clause (ii)(I). Upon such selection, 
                        the one-stop operator involved shall, 
                        to the extent practicable, refer such 
                        individual to the eligible provider of 
                        training services, and arrange for 
                        payment for such services through a 
                        career enhancement account.
                          (iv) Coordination.--Each local board 
                        may, through one-stop centers, 
                        coordinate career enhancement accounts 
                        with other Federal, State, local, or 
                        private job training programs or 
                        sources to assist the individual in 
                        obtaining training services.
                          (v) Enhanced career enhancement 
                        accounts.--Each local board may, 
                        through one-stop centers, assist 
                        individuals receiving career 
                        enhancement accounts through the 
                        establishment of such accounts that 
                        include, in addition to the funds 
                        provided under this paragraph, funds 
                        from other programs and sources that 
                        will assist the individual in obtaining 
                        training services.
                  [(G)] (F) Use of [individual training 
                accounts] career enhancement accounts.--
                          (i) In general.--Except as provided 
                        in clause (ii), training services 
                        provided under this paragraph shall be 
                        provided through the use of [individual 
                        training accounts] career enhancement 
                        accounts in accordance with this 
                        paragraph, and shall be provided to 
                        eligible individuals through the one-
                        stop delivery system.
                          (ii) Exceptions.--Training services 
                        authorized under this paragraph may be 
                        provided pursuant to a contract for 
                        services in lieu of [an individual 
                        training account] a career enhancement 
                        account if the requirements of 
                        subparagraph (F) are met and if--
                                  (I) * * *
                                  (II) the local board 
                                determines there are an 
                                insufficient number of eligible 
                                providers of training services 
                                in the local area involved 
                                (such as in a rural area) to 
                                accomplish the purposes of a 
                                system of [individual training 
                                accounts] career enhancement 
                                accounts; [or]
                                  (III) the local board 
                                determines that there is a 
                                training services program of 
                                demonstrated effectiveness 
                                offered in the local area by a 
                                community-based organization or 
                                another private organization to 
                                serve special participant 
                                populations that face multiple 
                                barriers to employment[.]; or
                                  (IV) the local board 
                                determines that it would be 
                                most appropriate to award a 
                                contract to an institution of 
                                higher education in order to 
                                facilitate the training of 
                                multiple individuals in in-
                                demand sectors or occupations, 
                                if such contract does not limit 
                                customer choice.
                          (iii) Linkage to occupations in 
                        demand.--Training services provided 
                        under this paragraph shall be directly 
                        linked to occupations that are in 
                        demand in the local area, or in another 
                        area to which an [adult or dislocated 
                        worker] individual receiving such 
                        services is willing to relocate, except 
                        that a local board may approve training 
                        services for occupations determined by 
                        the local board to be in sectors of the 
                        economy that have a high potential for 
                        sustained demand or growth in the local 
                        area.
                          (iv) Definition.--In this 
                        subparagraph, the term ``special 
                        participant population that faces 
                        multiple barriers to employment'' means 
                        a population of low-income individuals 
                        that is included in one or more of the 
                        following categories:
                                  (I) * * *

           *       *       *       *       *       *       *

                                  (IV) Individuals with 
                                disabilities.
                                  [(IV)] (V) Other hard-to-
                                serve populations as defined by 
                                the Governor involved.
  [(e)] (d) Permissible Local Employment and Training 
Activities.--
          [(1) Discretionary one-stop delivery activities.--
        Funds allocated to a local area for adults under 
        paragraph (2)(A) or (3), as appropriate, of section 
        133(b), and funds allocated to the local area for 
        dislocated workers under section 133(b)(2)(B), may be 
        used to provide, through one-stop delivery described in 
        subsection (c)(2)--
                  [(A) customized screening and referral of 
                qualified participants in training services 
                described in subsection (d)(4) to employment; 
                and
                  [(B) customized employment-related services 
                to employers on a fee-for-service basis.
          [(2) Supportive services.--Funds allocated to a local 
        area for adults under paragraph (2)(A) or (3), as 
        appropriate, of section 133(b), and funds allocated to 
        the local area for dislocated workers under section 
        133(b)(2)(B), may be used to provide supportive 
        services to adults and dislocated workers, 
        respectively--
                  [(A) who are participating in programs with 
                activities authorized in any of paragraphs (2), 
                (3), or (4) of subsection (d); and
                  [(B) who are unable to obtain such supportive 
                services through other programs providing such 
                services.
          [(3) Needs-related payments.--
                  [(A) In general.--Funds allocated to a local 
                area for adults under paragraph (2)(A) or (3), 
                as appropriate, of section 133(b), and funds 
                allocated to the local area for dislocated 
                workers under section 133(b)(2)(B), may be used 
                to provide needs-related payments to adults and 
                dislocated workers, respectively, who are 
                unemployed and do not qualify for (or have 
                ceased to qualify for) unemployment 
                compensation for the purpose of enabling such 
                individuals to participate in programs of 
                training services under subsection (d)(4).
                  [(B) Additional eligibility requirements.--In 
                addition to the requirements contained in 
                subparagraph (A), a dislocated worker who has 
                ceased to qualify for unemployment compensation 
                may be eligible to receive needs-related 
                payments under this paragraph only if such 
                worker was enrolled in the training services--
                          [(i) by the end of the 13th week 
                        after the most recent layoff that 
                        resulted in a determination of the 
                        worker's eligibility for employment and 
                        training activities for dislocated 
                        workers under this subtitle; or
                          [(ii) if later, by the end of the 8th 
                        week after the worker is informed that 
                        a short-term layoff will exceed 6 
                        months.
                  [(C) Level of payments.--The level of a 
                needs-related payment made to a dislocated 
                worker under this paragraph shall not exceed 
                the greater of--
                          [(i) the applicable level of 
                        unemployment compensation; or
                          [(ii) if such worker did not qualify 
                        for unemployment compensation, an 
                        amount equal to the poverty line, for 
                        an equivalent period, which amount 
                        shall be adjusted to reflect changes in 
                        total family income.]
          (1) Discretionary one-stop delivery activities.--
                  (A) In general.--Funds allocated to a local 
                area under section 133(b) may be used to 
                provide, through the one-stop delivery system--
                          (i) customized screening and referral 
                        of qualified participants in training 
                        services to employers;
                          (ii) customized employment-related 
                        services to employers on a fee-for-
                        service basis;
                          (iii) customer supports, including 
                        transportation and childcare, to 
                        navigate among multiple services and 
                        activities for special participant 
                        populations that face multiple barriers 
                        to employment, including individuals 
                        with disabilities;
                          (iv) employment and training 
                        assistance provided in coordination 
                        with child support enforcement 
                        activities of the State agency carrying 
                        out subtitle D of title IV of the 
                        Social Security Act (42 U.S.C. 651 et 
                        seq.);
                          (v) incorporating pay-for-performance 
                        contracting strategies as an element in 
                        funding activities under this section;
                          (vi) activities to facilitate remote 
                        access to services provided through a 
                        one-stop delivery system, including 
                        facilitating access through the use of 
                        technology; and
                          (vii) activities to carry out 
                        business services and strategies that 
                        meet the workforce investment needs of 
                        local area employers, as determined by 
                        the local board, consistent with the 
                        local plan under section 118.
          (2) Incumbent worker training programs.--
                  (A) In general.--The local board may use 
                funds allocated to a local area under section 
                133(b)(2) to carry out incumbent worker 
                training programs in accordance with this 
                paragraph.
                  (B) Training activities.--The training 
                programs for incumbent workers under this 
                paragraph shall be carried out by the local 
                area in conjunction with the employers of such 
                workers for the purpose of assisting such 
                workers in obtaining the skills necessary to 
                retain employment and avert layoffs.
                  (C) Employer match required.--
                          (i) In general.--Employers 
                        participating in programs under this 
                        paragraph shall be required to pay a 
                        proportion of the costs of providing 
                        the training to the incumbent workers 
                        of the employers. The State board, in 
                        consultation with the local board as 
                        appropriate, shall establish the 
                        required portion of such costs, which 
                        may include in-kind contributions. The 
                        required portion shall not be less than 
                        50 percent of the costs.
                          (ii) Calculation of match.--The wages 
                        paid by an employer to a worker while 
                        they are attending training may be 
                        included as part of the required 
                        payment of the employer.
  (e) Priority for Placement in Private Sector Jobs.--In 
providing employment and training activities authorized under 
this section, the State and local board shall give priority to 
placing participants in jobs in the private sector.
  (f) Veteran Employment Specialist.--
          (1) In general.--A local area shall hire and employ 
        one or more veteran employment specialist to carry out 
        employment, training, and placement services under this 
        subsection.
          (2) Principal duties.--A veteran employment 
        specialist in a local area shall--
                  (A) conduct outreach to employers in the 
                local area to assist veterans, including 
                disabled veterans, in gaining employment, 
                including--
                          (i) conducting seminars for 
                        employers; and
                          (ii) in conjunction with employers, 
                        conducting job search workshops, and 
                        establishing job search groups; and
                  (B) facilitate employment, training, 
                supportive, and placement services furnished to 
                veterans, including disabled and homeless 
                veterans, in the local area.
          (3) Hiring preference for veterans and individuals 
        with expertise in serving veterans.--A local area 
        shall, to the maximum extent practicable, employ 
        veterans or individuals with expertise in serving 
        veterans to carry out the services described in 
        paragraph (2). In hiring an individual to serve as a 
        veteran employment specialist, a local board shall give 
        preference to veterans and other individuals in the 
        following order:
                  (A) To qualified service-connected disabled 
                veterans.
                  (B) If no veteran described in subparagraph 
                (A) is available, to qualified eligible 
                veterans.
                  (C) If no veteran described in subparagraph 
                (A) or (B) is available, to any other 
                individuals with expertise in serving veterans.
          (4) Reporting.--
                  (A) In general.--Each veteran employment 
                specialist shall be administratively 
                responsible to the manager of the one-stop 
                delivery center in the local area and shall 
                provide reports, not less frequently than 
                quarterly, to the manager of such center and to 
                the Director for Veterans' Employment and 
                Training for the State on compliance by the 
                representative with Federal law and regulations 
                with respect to the special services and hiring 
                preferences described in paragraph (3) for 
                veterans and individuals with expertise in 
                serving veterans.
                  (B) Report to secretary.--Each State shall 
                submit to the Secretary an annual report on the 
                qualifications used by the local area in making 
                hiring determinations for a veteran employment 
                specialist and the salary structure under which 
                such specialists are compensated.
                  (C) Report to congress.--The Secretary shall 
                submit to the Committee on Education and the 
                Workforce of the House of Representatives and 
                the Committee on Health, Education, Labor, and 
                Pensions of the Senate an annual report 
                summarizing the reports submitted under 
                subparagraph (B), including summaries of 
                outcomes achieved by participating veterans 
                disaggregated by local communities.
          (5) Part-time employees.--A part-time veteran 
        employment specialist shall perform the functions of a 
        veteran employment specialist under this subsection on 
        a halftime basis.
          (6) Training requirements.--Each veteran employment 
        specialist described in paragraph (1) shall 
        satisfactorily complete training provided by the 
        National Veterans' Employment and Training Institute 
        during the three-year period that begins on the date on 
        which the employee is so assigned.
          (7) Specialist's duties.--A full-time veteran 
        employment specialist shall perform only duties related 
        to the employment, training, supportive, and placement 
        services under this subtitle, and shall not perform 
        other non-veteran-related duties if such duties detract 
        from the specialist's ability to perform the 
        specialist's duties related to employment, training, 
        and placement services under this subtitle.

CHAPTER 6--GENERAL PROVISIONS

           *       *       *       *       *       *       *

SEC. 136. PERFORMANCE ACCOUNTABILITY SYSTEM.

  (a) * * *
  (b) State Performance Measures.--
          [(1) In general.--For each State, the State 
        performance measures shall consist of--
                  [(A)(i) the core indicators of performance 
                described in paragraph (2)(A) and the customer 
                satisfaction indicator of performance described 
                in paragraph (2)(B); and
                  [(ii) additional indicators of performance 
                (if any) identified by the State under 
                paragraph (2)(C); and
                  [(B) a State adjusted level of performance 
                for each indicator described in subparagraph 
                (A).
          [(2) Indicators of performance.--
                  [(A) Core indicators of performance.--
                          [(i) In general.--The core indicators 
                        of performance for employment and 
                        training activities authorized under 
                        section 134 (except for self-service 
                        and informational activities) and (for 
                        participants who are eligible youth age 
                        19 through 21) for youth activities 
                        authorized under section 129 shall 
                        consist of--
                                  [(I) entry into unsubsidized 
                                employment;
                                  [(II) retention in 
                                unsubsidized employment 6 
                                months after entry into the 
                                employment;
                                  [(III) earnings received in 
                                unsubsidized employment 6 
                                months after entry into the 
                                employment; and
                                  [(IV) attainment of a 
                                recognized credential relating 
                                to achievement of educational 
                                skills, which may include 
                                attainment of a secondary 
                                school diploma or its 
                                recognized equivalent, or 
                                occupational skills, by 
                                participants who enter 
                                unsubsidized employment, or by 
                                participants who are eligible 
                                youth age 19 through 21 who 
                                enter postsecondary education, 
                                advanced training, or 
                                unsubsidized employment.
                          [(ii) Core indicators for eligible 
                        youth.--The core indicators of 
                        performance (for participants who are 
                        eligible youth age 14 through 18) for 
                        youth activities authorized under 
                        section 129, shall include--
                                  [(I) attainment of basic 
                                skills and, as appropriate, 
                                work readiness or occupational 
                                skills;
                                  [(II) attainment of secondary 
                                school diplomas and their 
                                recognized equivalents; and
                                  [(III) placement and 
                                retention in postsecondary 
                                education or advanced training, 
                                or placement and retention in 
                                military service, employment, 
                                or qualified apprenticeships.
                  [(B) Customer satisfaction indicators.--The 
                customer satisfaction indicator of performance 
                shall consist of customer satisfaction of 
                employers and participants with services 
                received from the workforce investment 
                activities authorized under this subtitle. 
                Customer satisfaction may be measured through 
                surveys conducted after the conclusion of 
                participation in the workforce investment 
                activities.
                  [(C) Additional indicators.--A State may 
                identify in the State plan additional 
                indicators for workforce investment activities 
                authorized under this subtitle.]
          (1) In general.--For each State, the State 
        performance measures shall consist of--
                  (A)(i) the core indicators of performance 
                described in paragraph (2)(A); and
                  (ii) additional indicators of performance (if 
                any) identified by the State under paragraph 
                (2)(B); and
                  (B) a State adjusted level of performance for 
                each indicator described in subparagraph (A).
          (2) Indicators of performance.--
                  (A) Core indicators of performance.--
                          (i) In general.--The core indicators 
                        of performance for the program of 
                        employment and training activities 
                        authorized under sections 132(a)(2), 
                        134, and 175, the program of adult 
                        education and literacy activities 
                        authorized under title II, and the 
                        program authorized under title I of the 
                        Rehabilitation Act of 1973 (29 U.S.C. 
                        720 et seq.), other than section 112 or 
                        part C of that title (29 U.S.C. 732, 
                        741), shall consist of the following 
                        indicators of performance, each 
                        disaggregated by the populations 
                        identified in the State and local 
                        plans:
                                  (I) the percentage and number 
                                of program participants who are 
                                in unsubsidized employment 
                                during the second full calendar 
                                quarter after exit from the 
                                program;
                                  (II) the percentage and 
                                number of program participants 
                                who are in unsubsidized 
                                employment during the fourth 
                                full calendar quarter after 
                                exit from the program;
                                  (III) the median earnings of 
                                program participants who are in 
                                unsubsidized employment during 
                                the second full calendar 
                                quarter after exit from the 
                                program compared to the median 
                                earnings of such participants 
                                prior to the training received 
                                under such program;
                                  (IV) the percentage and 
                                number of program participants 
                                who obtain a recognized 
                                postsecondary credential, 
                                including a registered 
                                apprenticeship, an industry-
                                recognized credential, or a 
                                regular secondary school 
                                diploma or its recognized 
                                equivalent (subject to clause 
                                (iii)), during participation in 
                                or within 1 year after exit 
                                from program;
                                  (V) the percentage and number 
                                of program participants who, 
                                during a program year--
                                          (aa) are in an 
                                        education or training 
                                        program that leads to a 
                                        recognized 
                                        postsecondary 
                                        credential, including a 
                                        registered 
                                        apprenticeship or on-
                                        the-job training 
                                        program, an industry-
                                        recognized credential, 
                                        a regular secondary 
                                        school diploma or its 
                                        recognized equivalent, 
                                        or unsubsidized 
                                        employment; and
                                          (bb) are achieving 
                                        measurable basic skill 
                                        gains toward such a 
                                        credential or 
                                        employment; and
                                  (VI) the percentage and 
                                number of program participants 
                                who obtain unsubsidized 
                                employment in the field 
                                relating to the training 
                                services described in section 
                                134(c)(4) that such 
                                participants received.
                          (ii) Indicator relating to 
                        credential.--For purposes of clause 
                        (i)(IV), program participants who 
                        obtain a regular secondary school 
                        diploma or its recognized equivalent 
                        shall be included in the percentage 
                        counted as meeting the criterion under 
                        such clause only if such participants, 
                        in addition to obtaining such diploma 
                        or its recognized equivalent, have, 
                        within 1 year after exit from the 
                        program, obtained or retained 
                        employment, have been removed from 
                        public assistance, or are in an 
                        education or training program leading 
                        to a recognized postsecondary 
                        credential described in clause (i)(IV).
                  (B) Additional indicators.--A State may 
                identify in the State plan additional 
                indicators for workforce investment activities 
                authorized under this subtitle.
          (3) Levels of performance.--
                  (A) State adjusted levels of performance for 
                core indicators [and customer satisfaction 
                indicator].--
                          (i) In general.--For each State 
                        submitting a State plan, there shall be 
                        established, in accordance with this 
                        subparagraph, levels of performance for 
                        each of the core indicators of 
                        performance described in paragraph 
                        (2)(A) [and the customer satisfaction 
                        indicator described in paragraph 
                        (2)(B)] for workforce investment 
                        activities authorized under this 
                        subtitle. The levels of performance 
                        established under this subparagraph 
                        shall, at a minimum--
                                  (I) * * *

           *       *       *       *       *       *       *

                          (ii) Identification in state plan.--
                        Each State shall identify, in the State 
                        plan submitted under section 112, 
                        expected levels of performance for each 
                        of the core indicators of performance 
                        [and the customer satisfaction 
                        indicator of performance, for the first 
                        3], for the first 2 program years 
                        covered by the State plan.
                          (iii) Agreement on state adjusted 
                        levels of performance for first [3 
                        years] 2 years.--In order to ensure an 
                        optimal return on the investment of 
                        Federal funds in workforce investment 
                        activities authorized under this 
                        subtitle, the Secretary and each 
                        Governor shall reach agreement on 
                        levels of performance for each of the 
                        core indicators of performance [and the 
                        customer satisfaction indicator of 
                        performance, for the first 3 program 
                        years] for the first 2 program years 
                        covered by the State plan, taking into 
                        account the levels identified in the 
                        State plan under clause (ii) and the 
                        factors described in clause (iv). The 
                        levels agreed to under this clause 
                        shall be considered to be the State 
                        adjusted levels of performance for the 
                        State for such years and shall be 
                        incorporated into the State plan prior 
                        to the approval of such plan.
                          (iv) Factors.--The agreement 
                        described in clause (iii) or (v) shall 
                        take into account--
                                  [(I) the extent to which the 
                                levels involved will assist the 
                                State in attaining a high level 
                                of customer satisfaction;]
                                  [(II)] (I) how the levels 
                                involved compare with the State 
                                adjusted levels of performance 
                                established for other States, 
                                [taking into account] which 
                                shall be adjusted based on 
                                factors including differences 
                                in economic conditions, such as 
                                unemployment rates and job 
                                losses or gains in particular 
                                industries, the characteristics 
                                of participants when the 
                                participants entered the 
                                program, such as indicators of 
                                poor work experience, 
                                dislocation from high-wage 
                                employment, low levels of 
                                literacy or English 
                                proficiency, disability status, 
                                including the number of 
                                veterans with disabilities, and 
                                welfare dependency, and the 
                                services to be provided; and
                                  [(III)] (II) the extent to 
                                which such levels involved 
                                promote continuous improvement 
                                in performance on the 
                                performance measures by such 
                                State and ensure optimal return 
                                on the investment of Federal 
                                funds.
                          [(v) Agreement on state adjusted 
                        levels of performance for 4th and 5th 
                        years.--Prior to the 4th program year 
                        covered by the State plan, the 
                        Secretary and each Governor shall reach 
                        agreement on levels of performance for 
                        each of the core indicators of 
                        performance and the customer 
                        satisfaction indicator of performance, 
                        for the 4th and 5th program years 
                        covered by the State plan, taking into 
                        account the factors described in clause 
                        (iv). The levels agreed to under this 
                        clause shall be considered to be the 
                        State adjusted levels of performance 
                        for the State for such years and shall 
                        be incorporated into the State plan.]
                          [(vi)] (v) Revisions.--If 
                        unanticipated circumstances arise in a 
                        State resulting in a significant change 
                        in the factors [described in clause 
                        (iv)(II)] described in clause (iv)(I), 
                        the Governor may request that the State 
                        adjusted levels of performance agreed 
                        to under clause (iii) [or (v)] be 
                        revised. The Secretary, after 
                        collaboration with the representatives 
                        described in subsection (i), shall 
                        issue objective criteria and methods 
                        for making such revisions.
                  (B) Levels of performance for additional 
                indicators.--The State may identify, in the 
                State plan, State levels of performance for 
                each of the additional indicators described in 
                [paragraph (2)(C)] paragraph (2)(B). Such 
                levels shall be considered to be State adjusted 
                levels of performance for purposes of this 
                title.
  (c) Local Performance Measures.--
          (1) In general.--For each local area in a State, the 
        local performance measures shall consist of--
                  (A)[(i) the core indicators of performance 
                described in subsection (b)(2)(A), and the 
                customer satisfaction indicator of performance 
                described in subsection (b)(2)(B), for 
                activities described in such subsections, other 
                than statewide workforce investment activities; 
                and] (i) the core indicators of performance 
                described in subsection (b)(2)(A) for 
                activities described in such subsections, other 
                than statewide workforce investment activities; 
                and
                  (ii) additional indicators of performance (if 
                any) identified by the State under subsection 
                [(b)(2)(C)] (b)(2)(B) for activities described 
                in such subsection, other than statewide 
                workforce investment activities; and

           *       *       *       *       *       *       *

          [(3) Determinations.--In determining such local 
        levels of performance, the local board, the chief 
        elected official, and the Governor shall take into 
        account the specific economic, demographic, and other 
        characteristics of the populations to be served in the 
        local area.]
          (3) Determinations.--In determining such local levels 
        of performance, the local board, the chief elected 
        official, and the Governor shall ensure such levels are 
        adjusted based on the specific economic characteristics 
        (such as unemployment rates and job losses or gains in 
        particular industries), demographic characteristics, or 
        other characteristics of the population to be served in 
        the local area, such as poor work history, lack of work 
        experience, dislocation from high-wage employment, low 
        levels of literacy or English proficiency, disability 
        status, including the number of veterans with 
        disabilities, and welfare dependency.
  (d) Report.--
          (1) In general.--Each State that receives an 
        allotment under section [127 or] 132 shall maintain a 
        central repository of policies related to access, 
        eligibility, availability of services, and other 
        matters approved by the State board and plans and such 
        policies approved by each local board and make such 
        repository available to the public, including by 
        electronic means and shall annually prepare and submit 
        to the Secretary a report on the progress of the State 
        in achieving State performance measures, including 
        information on the levels of performance achieved by 
        the State with respect to the core indicators of 
        performance [and the customer satisfaction indicator]. 
        The annual report also shall include information 
        regarding the progress of local areas in the State in 
        achieving local performance measures, including 
        information on the levels of performance achieved by 
        the areas with respect to the core indicators of 
        performance [and the customer satisfaction indicator]. 
        The report also shall include information on the status 
        of State evaluations of workforce investment activities 
        described in subsection (e).
          (2) Additional information.--In preparing such 
        report, the State shall include, at a minimum, 
        information on participants in workforce investment 
        activities authorized under this subtitle relating to--
                  (A) entry by participants who have completed 
                training services provided under [section 
                134(d)(4)] section 134(c)(4) into unsubsidized 
                employment related to the training received;

           *       *       *       *       *       *       *

                  (E) performance with respect to the 
                indicators of performance specified in 
                subsection (b)(2)(A) of participants in 
                workforce investment activities who received 
                the training services compared with the 
                performance of participants in workforce 
                investment activities who received only 
                services other than the training services 
                [(excluding participants who received only 
                self-service and informational activities); 
                and];
                  (F) performance with respect to the 
                indicators of performance specified in 
                subsection (b)(2)(A) of recipients of public 
                assistance, out-of-school youth, veterans, 
                individuals with disabilities, displaced 
                homemakers, and older individuals[.];
                  (G) with respect to each local area in the 
                State--
                          (i) the number of individuals who 
                        received work ready services described 
                        under section 134(c)(2) and the number 
                        of individuals who received training 
                        services described under section 
                        134(c)(4) during the most recent 
                        program year and fiscal year, and the 
                        preceding 5 program years, where the 
                        individuals received the training, 
                        disaggregated by the type of entity 
                        that provided the training, and the 
                        amount of funds spent on each type of 
                        service;
                          (ii) the number of individuals who 
                        successfully exited out of work ready 
                        services described under section 
                        134(c)(2) and the number of individuals 
                        who exited out of training services 
                        described under section 134(c)(4) 
                        during the most recent program year and 
                        fiscal year, and the preceding 5 
                        program years, and where the 
                        individuals received the training, 
                        disaggregated by the type of entity 
                        that provided the training; and
                          (iii) the average cost per 
                        participant of those individuals who 
                        received work ready services described 
                        under section 134(c)(2) and the average 
                        cost per participant of those 
                        individuals who received training 
                        services described under section 
                        134(c)(4) during the most recent 
                        program year and fiscal year, and the 
                        preceding 5 program years, and where 
                        the individuals received the training, 
                        disaggregated by the type of entity 
                        that provided the training; and
                  (H) the amount of funds spent on training 
                services and discretionary one-stop delivery 
                activities, disaggregated by the populations 
                identified in the State and local plans.
          (3) Information dissemination.--The Secretary--
                  (A) shall make the information contained in 
                such reports available to the general public 
                [through publication] through electronic means 
                and other appropriate methods;

           *       *       *       *       *       *       *

          (4) Data validation.--In preparing the reports 
        described in this subsection, each State shall 
        establish procedures, consistent with guidelines issued 
        by the Secretary, to ensure the information contained 
        in the report is valid and reliable.

           *       *       *       *       *       *       *

  (g) Sanctions for State Failure To Meet State Performance 
Measures.--
          (1) States.--
                  (A) Technical assistance.--If a State fails 
                to meet State adjusted levels of performance 
                relating to indicators described in 
                subparagraph (A) [or (B)] of subsection (b)(2) 
                for a program for any program year, the 
                Secretary shall, upon request, provide 
                technical assistance in accordance with section 
                170, including assistance in the development of 
                a performance improvement plan.
                  (B) Reduction in amount of grant.--If such 
                failure continues for a second consecutive 
                year, or if a State fails to submit a report 
                under subsection (d) for any program year, the 
                Secretary [may reduce by not more than 5 
                percent,] shall reduce the amount of the grant 
                that would (in the absence of this paragraph) 
                be payable to the State under such program for 
                the immediately succeeding program year. Such 
                penalty shall be based on the degree of failure 
                to meet State adjusted levels of performance.
          [(2) Funds resulting from reduced allotments.--The 
        Secretary shall use an amount retained, as a result of 
        a reduction in an allotment to a State made under 
        paragraph (1)(B), to provide incentive grants under 
        section 503.]
          (2) Funds resulting from reduced allotments.--The 
        Secretary shall return to the Treasury the amount 
        retained, as a result of a reduction in an allotment to 
        a State made under paragraph (1)(B).
  (h) Sanctions for Local Area Failure To Meet Local 
Performance Measures.--
          (1) Technical assistance.--If a local area fails to 
        meet levels of performance relating to indicators 
        described in subparagraph (A) [or (B)] of subsection 
        (b)(2) for a program for any program year, the 
        Governor, or upon request by the Governor, the 
        Secretary, shall provide technical assistance, which 
        may include assistance in the development of a 
        performance improvement plan, or the development of a 
        modified local plan.
          (2) Corrective actions.--
                  [(A) In general.--If such failure continues 
                for a second consecutive year, the Governor 
                shall take corrective actions, which may 
                include development of a reorganization plan 
                through which the Governor may--]
                  (A) In general.--If such failure continues 
                for a second consecutive year, the Governor 
                shall take corrective actions, including the 
                development of a reorganization plan. Such plan 
                shall--
                          (i)  * * *

           *       *       *       *       *       *       *

                  (B) Reduction in the amount of grant.--If 
                such failure continues for a third consecutive 
                year, the Governor of a State shall reduce the 
                amount of the grant that would (in the absence 
                of this subparagraph) be payable to the local 
                area under such program for the program year 
                after such third consecutive year. Such penalty 
                shall be based on the degree of failure to meet 
                local levels of performance.
                  [(B)] (C) Appeal by local area.--
                          (i) Appeal to governor.--A local area 
                        that is subject to [a reorganization 
                        plan under subparagraph (A) may, not 
                        later than 30 days after receiving 
                        notice of the reorganization plan, 
                        appeal to the Governor to rescind or 
                        revise such plan] corrective actions 
                        under subparagraphs (A) and (B) may, 
                        not later than 30 days after receiving 
                        notice of the actions, appeal to the 
                        Governor to rescind or revise such 
                        actions. In such case, the Governor 
                        shall make a final decision not later 
                        then 30 days after the receipt of the 
                        appeal.

           *       *       *       *       *       *       *

                  [(C)] (D) Effective date.--The decision made 
                by the Governor under clause (i) of 
                [subparagraph (B)] subparagraph (C) shall 
                become effective at the time the Governor 
                issues the decision pursuant to such clause. 
                Such decision shall remain effective unless the 
                Secretary rescinds or revises such plan 
                pursuant to clause (ii) of [subparagraph (B)] 
                subparagraph (C).
  (i) Other Measures and Terminology.--
          (1) Responsibilities.--In order to ensure nationwide 
        comparability of performance data, the Secretary, after 
        collaboration with representatives of appropriate 
        Federal agencies, and representatives of States and 
        political subdivisions, business and industry, 
        employees, eligible providers of employment and 
        training activities, educators, and participants, with 
        expertise regarding workforce investment policies and 
        workforce investment activities, shall issue--
                  (A) * * *
                  (B) terms for a menu of additional indicators 
                of performance described in [subsection 
                (b)(2)(C)] subsection (b)(2)(B) to assist 
                States in assessing their progress toward State 
                workforce investment goals; and
                  (C) objective criteria and methods described 
                in subsection [(b)(3)(A)(vi)] (b)(3)(A)(v) for 
                making revisions to levels of performance.

           *       *       *       *       *       *       *

  (j) Use of Core Indicators for Other Programs.--In addition 
to the programs carried out under chapter 5, and consistent 
with the requirements of the applicable authorizing laws, the 
Secretary shall use the core indicators of performance 
described in subsection (b)(2)(A) to assess the effectiveness 
of the programs described under section 121(b)(1)(B) that are 
carried out by the Secretary.

[SEC. 137. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Youth Activities.--There are authorized to be 
appropriated to carry out the activities described in section 
127(a), such sums as may be necessary for each of fiscal years 
1999 through 2003.
  [(b) Adult Employment and Training Activities.--There are 
authorized to be appropriated to carry out the activities 
described in section 132(a)(1), such sums as may be necessary 
for each of fiscal years 1999 through 2003.
  [(c) Dislocated Worker Employment and Training Activities.--
There are authorized to be appropriated to carry out the 
activities described in section 132(a)(2), such sums as may be 
necessary for each of fiscal years 1999 through 2003.]

SEC. 137. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out the 
activities described in section 132, $6,292,486,000 for fiscal 
year 2013 and each of the 5 succeeding fiscal years.

                         Subtitle C--Job Corps

SEC. 141. PURPOSES.

  The purposes of this subtitle are--
          [(1) to maintain a national Job Corps program, 
        carried out in partnership with States and communities, 
        to assist eligible youth who need and can benefit from 
        an intensive program, operated in a group setting in 
        residential and nonresidential centers, to become more 
        responsible, employable, and productive citizens;]
          (1) to maintain a national Job Corps program for at-
        risk youth, carried out in partnership with States and 
        communities, to assist eligible youth to connect to the 
        workforce by providing them with intensive academic, 
        career and technical education, and service-learning 
        opportunities, in residential and nonresidential 
        centers, in order for such youth to obtain regular 
        secondary school diplomas, industry-recognized 
        credentials, or recognized postsecondary credentials 
        leading to successful careers in in-demand industries 
        that will result in opportunities for advancement;

           *       *       *       *       *       *       *

SEC. 142. DEFINITIONS.

  In this subtitle:
          (1) * * *
          (2) [Applicable] one-stop center.--The term 
        ``[applicable] one-stop center'' means a one-stop 
        [customer service] center that provides services, such 
        as referral, [intake] assessment, recruitment, and 
        placement, to a Job Corps center.

           *       *       *       *       *       *       *

          (4) Former enrollee.--The term ``former enrollee'' 
        means an individual who has voluntarily applied for, 
        been selected for, and enrolled in the Job Corps 
        program, but left the program [before completing the 
        requirements of a vocational training program, or 
        receiving a secondary school diploma or recognized 
        equivalent, as a result of participation in the Job 
        Corps program.] prior to becoming a graduate.
          (5) Graduate.--The term ``graduate'' means an 
        individual who has voluntarily applied for, been 
        selected for, and enrolled in the Job Corps program and 
        [has completed the requirements of a vocational 
        training program, or received a secondary school 
        diploma or recognized equivalent, as a result of 
        participation in the Job Corps program.] who, as a 
        result of participation in the Job Corps program, has 
        received a regular secondary school diploma, completed 
        the requirements of a career and technical education 
        and training program, or received, or is making 
        satisfactory progress (as defined under section 484(c) 
        of the Higher Education Act of 1965 (20 U.S.C. 1091(c)) 
        toward receiving, a recognized postsecondary 
        credential, including an industry-recognized credential 
        that prepares individuals for employment leading to 
        economic self-sufficiency.

           *       *       *       *       *       *       *

SEC. 144. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

  To be eligible to become an enrollee, an individual shall 
be--
          [(1) not less than age 16 and not more than age 21 on 
        the date of enrollment, except that--
                  [(A) not more than 20 percent of the 
                individuals enrolled in the Job Corps may be 
                not less than age 22 and not more than age 24 
                on the date of enrollment; and
                  [(B) either such maximum age limitation may 
                be waived by the Secretary, in accordance with 
                regulations of the Secretary, in the case of an 
                individual with a disability;]
          (1) not less than age 16 and not more than age 24 on 
        the date of enrollment;

           *       *       *       *       *       *       *

          (3) an individual who is one or more of the 
        following:
                  (A) * * *
                  (B) A secondary school dropout.

           *       *       *       *       *       *       *

                  (E) An individual who requires additional 
                education, [vocational] career and technical 
                education and training, or intensive counseling 
                and related assistance, in order to participate 
                successfully in regular schoolwork or to secure 
                and hold employment.

           *       *       *       *       *       *       *

SEC. 145. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT OF 
                    ENROLLEES.

  (a) Standards and Procedures.--
          (1) * * *
          (2) Methods.--In prescribing standards and procedures 
        under paragraph (1), the Secretary, at a minimum, 
        shall--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) establish standards and procedures for--
                          (i) determining, for each applicant, 
                        whether the educational and 
                        [vocational] career and technical 
                        education and training needs of the 
                        applicant can best be met through the 
                        Job Corps program or an alternative 
                        program in the community in which the 
                        applicant resides; and

           *       *       *       *       *       *       *

          (3) Implementation.--[To the extent practicable, the] 
        The standards and procedures shall be implemented 
        through arrangements with--
                  (A) [applicable] one-stop centers; and
                  [(B) community action agencies, business 
                organizations, and labor organizations; and
                  [(C) agencies and individuals that have 
                contact with youth over substantial periods of 
                time and are able to offer reliable information 
                about the needs and problems of youth.]
                  (B) organizations that have a demonstrated 
                record of effectiveness in placing at-risk 
                youth into employment.

           *       *       *       *       *       *       *

          (5) Reimbursement.--The Secretary is authorized to 
        enter into contracts with and make payments to 
        individuals and organizations for the cost of 
        conducting recruitment, screening, and selection of 
        eligible applicants for the Job Corps, as provided for 
        in this section. The Secretary shall make no payment to 
        any individual or organization solely as compensation 
        for referring the names of applicants for the Job 
        Corps. The Secretary shall allot not more than \1/2\ of 
        1 percent of the budget of the Job Corps program for 
        the purpose of this paragraph.
  (b) Special Limitations on Selection.--
          (1) In general.--No individual shall be selected as 
        an enrollee unless the individual or organization 
        implementing the standards and procedures described in 
        subsection (a) determines that--
                  (A) * * *
                  (B) the individual manifests a basic 
                understanding of both the rules to which the 
                individual will be subject and of the 
                consequences of failure to observe the rules 
                and agrees to such rules; and
                  [(C) the individual has passed a background 
                check conducted in accordance with procedures 
                established by the Secretary.]
                  (C) the individual has passed a background 
                check conducted in accordance with procedures 
                established by the Secretary, which shall 
                include--
                          (i) a search of the State criminal 
                        registry or repository in the State 
                        where the individual resides and each 
                        State where the individual previously 
                        resided;
                          (ii) a search of State-based child 
                        abuse and neglect registries and 
                        databases in the State where the 
                        individual resides and each State where 
                        the individual previously resided;
                          (iii) a search of the National Crime 
                        Information Center;
                          (iv) a Federal Bureau of 
                        Investigation fingerprint check using 
                        the Integrated Automated Fingerprint 
                        Identification System; and
                          (v) a search of the National Sex 
                        Offender Registry established under the 
                        Adam Walsh Child Protection and Safety 
                        Act of 2006 (42 U.S.C. 16901 et seq.).

           *       *       *       *       *       *       *

          (3) Individuals convicted of a crime.--An individual 
        shall be ineligible for enrollment if the individual--
                  (A) makes a false statement in connection 
                with the criminal background check described in 
                paragraph (1)(C);
                  (B) is registered or is required to be 
                registered on a State sex offender registry or 
                the National Sex Offender Registry established 
                under the Adam Walsh Child Protection and 
                Safety Act of 2006 (42 U.S.C. 16901 et seq.); 
                or
                  (C) has been convicted of a felony consisting 
                of--
                          (i) homicide;
                          (ii) child abuse or neglect;
                          (iii) a crime against children, 
                        including child pornography;
                          (iv) a crime involving rape or sexual 
                        assault; or
                          (v) physical assault, battery, or a 
                        drug-related offense, committed within 
                        the past 5 years.
  (c) Assignment Plan.--
          (1) In general.--Every [2 years] year, the Secretary 
        shall develop and implement [an assignment] a plan for 
        assigning enrollees to Job Corps centers. In developing 
        the plan, the Secretary shall, based on the analysis 
        described in paragraph (2), establish targets, 
        applicable to each Job Corps center, for--
                  (A) * * *

           *       *       *       *       *       *       *

          (2) Analysis.--In order to develop the plan described 
        in paragraph (1), the Secretary shall[, every 2 years,] 
        analyze, for the Job Corps center--
                  (A) * * *
                  (B) the relative demand for participation in 
                the Job Corps in the State and region, and in 
                surrounding regions; [and]
                  (C) the capacity and utilization of the Job 
                Corps center, including the education and 
                training services provided through the 
                center[.]; and
                  (D) the performance of the Job Corps center 
                relating to the indicators described in 
                paragraphs (1) and (2) in section 159(c)(1), 
                and whether any actions have been taken with 
                respect to such center pursuant to paragraph 
                (3) of section 159(f).
  (d) Assignment of Individual Enrollees.--
          (1) In general.--After an individual has been 
        selected for the Job Corps in accordance with the 
        standards and procedures of the Secretary under 
        subsection (a), the enrollee shall be assigned to the 
        Job Corps center that [is closest to the home of the 
        enrollee, except that the] offers the type of career 
        and technical education and training selected by the 
        individual and, among the centers that offer such 
        education and training, is closest to the home of the 
        individual. The Secretary may waive this requirement 
        if--
                  [(A) the enrollee chooses a vocational 
                training program, or requires an English 
                literacy program, that is not available at such 
                center;]
                  [(B)] (A) the enrollee would be unduly 
                delayed in participating in the Job Corps 
                program because the closest center is operating 
                at full capacity; or
                  [(C)] (B) the parent or guardian of the 
                enrollee requests assignment of the enrollee to 
                another Job Corps center due to circumstances 
                in the community of the enrollee that would 
                impair prospects for successful participation 
                in the Job Corps program.
          (2) Enrollees who are younger than 18.--An enrollee 
        who is younger than 18 shall not be assigned to a Job 
        Corps center other than the center closest to the home 
        of the enrollee that offers the career and technical 
        education and training desired by pursuant to paragraph 
        (1) if the parent or guardian of the enrollee objects 
        to the assignment.

           *       *       *       *       *       *       *

SEC. 147. JOB CORPS CENTERS.

  (a) Operators and Service Providers.--
          (1) Eligible entities.--
                  (A) Operators.--The Secretary shall enter 
                into an agreement with a Federal, State, or 
                local agency, an area [vocational] career and 
                technical education school or residential 
                [vocational] career and technical school, or a 
                private organization, for the operation of each 
                Job Corps center.
                  (B) Providers.--The Secretary [may] shall 
                enter into an agreement with a local entity 
                that resides in the State in which the Jobs 
                Corps center is located to provide activities 
                described in this subtitle to the Job Corps 
                center, as appropriate.
          (2) Selection process.--
                  (A) Competitive basis.--Except as provided in 
                [subsections (c) and (d) of section 303 of the 
                Federal Property and Administrative Services 
                Act of 1949 (41 U.S.C. 253)] subsections (a) 
                and (b) of section 3304 of title 41, United 
                States Code, the Secretary shall select on a 
                competitive basis an entity to operate a Job 
                Corps center and entities to provide activities 
                described in this subtitle to the Job Corps 
                center. In developing a solicitation for an 
                operator or service provider, the Secretary 
                shall consult with the Governor of the State in 
                which the center is located, the [industry 
                council] workforce council for the Job Corps 
                center (if established), and the applicable 
                local board regarding the contents of such 
                solicitation, including elements that will 
                promote the consistency of the activities 
                carried out through the center with the 
                objectives set forth in the State plan or in a 
                local plan.
                  (B) Recommendations and considerations.--
                          (i) Operators.--In selecting an 
                        entity to operate a Job Corps center, 
                        the Secretary shall consider--
                                  (I) * * *
                                  [(II) the degree to which the 
                                vocational training that the 
                                entity proposes for the center 
                                reflects local employment 
                                opportunities in the local 
                                areas in which enrollees at the 
                                center intend to seek 
                                employment;]
                                  (II) the ability of the 
                                entity to offer career and 
                                technical education and 
                                training that the workforce 
                                council proposes under section 
                                154(c);
                                  (III) the degree to which the 
                                entity [is familiar with the 
                                surrounding communities,] 
                                demonstrates relationships with 
                                the surrounding communities, 
                                employers, workforce boards, 
                                applicable one-stop centers, 
                                and the State and region in 
                                which the center is located; 
                                [and]
                                  [(IV) the past performance of 
                                the entity, if any, relating to 
                                operating or providing 
                                activities described in this 
                                subtitle to a Job Corps 
                                center.]
                                  (IV) the performance of the 
                                entity, if any, relating to 
                                operating or providing 
                                activities described in this 
                                subtitle to a Job Corps center, 
                                including the entity's 
                                demonstrated effectiveness in 
                                assisting individuals in 
                                achieving the primary and 
                                secondary indicators of 
                                performance described in 
                                paragraphs (1) and (2) of 
                                section 159(c); and
                                  (V) the ability of the entity 
                                to demonstrate a record of 
                                successfully assisting at-risk 
                                youth to connect to the 
                                workforce, including by 
                                providing them with intensive 
                                academic, and career and 
                                technical education and 
                                training.
                          (ii) Providers.--In selecting a 
                        service provider for a Job Corps 
                        center, the Secretary shall consider 
                        the factors described in subclauses (I) 
                        through (IV) of clause (i)[, as 
                        appropriate].
  (b) Character and Activities.--Job Corps centers may be 
residential or nonresidential in character, and shall be 
designed and operated so as to provide enrollees, in a well-
supervised setting, with access to activities described in this 
subtitle. [In any year, no more than 20 percent of the 
individuals enrolled in the Job Corps may be nonresidential 
participants in the Job Corps.]
  [(c) Civilian Conservation Centers.--
          [(1) In general.--The Job Corps centers may include 
        Civilian Conservation Centers operated under agreements 
        with the Secretary of Agriculture or the Secretary of 
        the Interior, located primarily in rural areas, which 
        shall provide, in addition to other vocational training 
        and assistance, programs of work experience to 
        conserve, develop, or manage public natural resources 
        or public recreational areas or to develop community 
        projects in the public interest.
          [(2) Selection process.--The Secretary may select an 
        entity to operate a Civilian Conservation Center on a 
        competitive basis, as provided in subsection (a), if 
        the center fails to meet such national performance 
        standards as the Secretary shall establish.
  [(d) Indian Tribes.--
          [(1) General authority.--The Secretary may enter into 
        agreements with Indian tribes to operate Job Corps 
        centers for Indians.
          [(2) Definitions.--In this subsection, the terms 
        ``Indian'' and ``Indian tribe'', have the meanings 
        given such terms in subsections (d) and (e), 
        respectively, of section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450b).]
  (c) Civilian Conservation Centers.--
          (1) In general.--The Job Corps centers may include 
        Civilian Conservation Centers, operated under an 
        agreement between the Secretary of Labor and the 
        Secretary of Agriculture, that are located primarily in 
        rural areas. Such centers shall adhere to all the 
        provisions of this subtitle, and shall provide, in 
        addition to education, career and technical education 
        and training, and workforce preparation skills training 
        described in section 148, programs of work experience 
        to conserve, develop, or manage public natural 
        resources or public recreational areas or to develop 
        community projects in the public interest.
          (2) Selection process.--The Secretary shall select an 
        entity that submits an application under subsection (d) 
        to operate a Civilian Conservation Center on a 
        competitive basis, as provided in subsection (a).
  (d) Application.--To be eligible to operate a Job Corps 
center under this subtitle, an entity shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require, 
including--
          (1) a description of the program activities that will 
        be offered at the center, including how the career and 
        technical education and training reflect State and 
        local employment opportunities, including in in-demand 
        industries;
          (2) a description of the counseling, placement, and 
        support activities that will be offered at the center, 
        including a description of the strategies and 
        procedures the entity will use to place graduates into 
        unsubsidized employment upon completion of the program;
          (3) a description of the demonstrated record of 
        effectiveness that the entity has in placing at-risk 
        youth into employment, including past performance of 
        operating a Job Corps center under this subtitle;
          (4) a description of the relationships that the 
        entity has developed with State and local workforce 
        boards, employers, State and local educational 
        agencies, and the surrounding communities in an effort 
        to promote a comprehensive statewide workforce 
        development system;
          (5) a description of the strong fiscal controls the 
        entity has in place to ensure proper accounting of 
        Federal funds;
          (6) a description of the strategies and policies the 
        entity will utilize to reduce participant costs;
          (7) a detailed budget of the activities that will be 
        supported using funds under this subtitle;
          (8) a detailed budget of the activities that will be 
        supported using funds from non-Federal resources;
          (9) an assurance the entity will comply with the 
        administrative cost limitation included in section 
        151(c);
          (10) an assurance the entity is licensed to operate 
        in the State in which the center is located; and
          (11) an assurance the entity will comply with and 
        meet basic health and safety codes, including those 
        measures described in section 152(b).
  (e) Length of Agreement.--The agreement described in 
subsection (a)(1)(A) shall be for not longer than a 2-year 
period. The Secretary may renew the agreement for 3 one-year 
periods if the entity meets the requirements of subsection (f).
  (f) Renewal.--
          (1) In general.--Subject to paragraph (2), the 
        Secretary may renew the terms of an agreement described 
        in subsection (a)(1)(A) for an entity to operate a Job 
        Corps center if the center meets or exceeds each of the 
        indicators of performance described in section 
        159(c)(1).
          (2) Recompetition.--
                  (A) In general.--Notwithstanding paragraph 
                (1), the Secretary shall not renew the terms of 
                the agreement for an entity to operate a Job 
                Corps center if such center is ranked in the 
                bottom quintile of centers described in section 
                159(f)(2) for any program year. Such entity may 
                submit a new application under subsection (d) 
                only if such center has shown significant 
                improvement in the indicators of performance 
                described in section 159(c)(1) over the last 
                program year.
                  (B) Violations.--The Secretary shall not 
                select an entity to operate a Job Corps center 
                if such entity or such center has been found to 
                have a systemic or substantial material failure 
                that involves--
                          (i) a threat to the health, safety, 
                        or civil rights of program participants 
                        or staff;
                          (ii) the misuse of funds received 
                        under this subtitle;
                          (iii) loss of legal status or 
                        financial viability, loss of permits, 
                        debarment from receiving Federal grants 
                        or contracts, or the improper use of 
                        Federal funds;
                          (iv) failure to meet any other 
                        Federal or State requirement that the 
                        entity has shown an unwillingness or 
                        inability to correct, after notice from 
                        the Secretary, within the period 
                        specified; or
                          (v) an unresolved area of 
                        noncompliance.
  (g) Current Grantees.--Not later than 60 days after the date 
of enactment of the Workforce Investment Improvement Act of 
2012 and notwithstanding any previous grant award or renewals 
of such award under this subtitle, the Secretary shall require 
all entities operating a Job Corps center under this subtitle 
to submit an application under subsection (d) to carry out the 
requirements of this section.

SEC. 148. PROGRAM ACTIVITIES.

  [(a) Activities Provided by Job Corps Centers.--
          [(1) In general.--Each Job Corps center shall provide 
        enrollees with an intensive, well organized, and fully 
        supervised program of education, vocational training, 
        work experience, recreational activities, physical 
        rehabilitation and development, and counseling. Each 
        Job Corps center shall provide enrollees assigned to 
        the center with access to core services described in 
        section 134(d)(2) and the intensive services described 
        in section 134(d)(3).
          [(2) Relationship to opportunities.--
                  [(A) In general.--The activities provided 
                under this subsection shall provide work-based 
                learning throughout the enrollment of the 
                enrollees and assist the enrollees in obtaining 
                meaningful unsubsidized employment, 
                participating in secondary education or 
                postsecondary education programs, enrolling in 
                other suitable vocational training programs, or 
                satisfying Armed Forces requirements, on 
                completion of their enrollment.
                  [(B) Link to employment opportunities.--The 
                vocational training provided shall be linked to 
                the employment opportunities in the local area 
                in which the enrollee intends to seek 
                employment after graduation.]
  (a) Activities Provided Through Job Corps Centers.--
          (1) In General.--Each Job Corps center shall provide 
        enrollees with an intensive, well-organized, and 
        supervised program of education, career, and technical 
        education and training, work experience, recreational 
        activities, physical rehabilitation and development, 
        and counseling. Each Job Corps center shall provide 
        enrollees assigned to the center with access to work-
        ready services described in section 134(c)(2).
          (2) Relationship to opportunities.--
                  (A) In general.--The activities provided 
                under this subsection shall be targeted to 
                helping enrollees, on completion of their 
                enrollment--
                          (i) secure and maintain meaningful 
                        unsubsidized employment;
                          (ii) complete secondary education and 
                        obtain a regular secondary school 
                        diploma;
                          (iii) enroll in and complete 
                        postsecondary education or training 
                        programs, including obtaining 
                        recognized postsecondary credentials, 
                        industry-recognized credentials, and 
                        registered apprenticeships; or
                          (iv) satisfy Armed Forces 
                        requirements.
                  (B) Link to employment opportunities.--The 
                career and technical education and training 
                provided shall be linked to the employment 
                opportunities in in-demand industries in the 
                State in which the Job Corps center is located.
  (b) [Education and Vocational] Academic and Career and 
Technical Education and Training.--The Secretary [may] shall 
arrange for education and [vocational] career and technical 
training of enrollees through local public or private 
educational agencies, [vocational] career and technical 
educational institutions, or technical institutes, whenever 
such entities provide education and training substantially 
equivalent in cost and quality to that which the Secretary 
could provide through other means.
  (c) Advanced Career Training Programs.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Demonstration.--Each year, any operator seeking 
        to enroll additional enrollees in an advanced career 
        training program shall demonstrate that participants in 
        such program [have achieved a satisfactory rate of 
        completion and placement in training-related jobs] have 
        met or exceeded the performance measurements in 
        paragraphs (1) and (2) in section 159(c) before the 
        operator may carry out such additional enrollment.

           *       *       *       *       *       *       *

SEC. 149. COUNSELING AND JOB PLACEMENT.

  (a) Counseling and Testing.--The Secretary shall arrange for 
counseling and testing for each enrollee at regular intervals 
to measure progress in the education and [vocational] career 
and technical education and training programs carried out 
through the Job Corps.
  (b) Placement.--The Secretary shall arrange for counseling 
and testing for enrollees prior to their scheduled graduations 
to determine their capabilities and, based on their 
capabilities, shall [make every effort to arrange to] place the 
enrollees in jobs in the vocations for which the enrollees are 
trained or to assist the enrollees in obtaining further 
activities described in this subtitle. In arranging for the 
placement of graduates in jobs, the Secretary shall utilize the 
one-stop delivery system to the fullest extent possible.

           *       *       *       *       *       *       *

  [(d) Services to Former Enrollees.--The Secretary may provide 
such services as the Secretary determines to be appropriate 
under this subtitle to former enrollees.]

SEC. 150. SUPPORT.

  (a) * * *
  [(b) Readjustment Allowances.--
          [(1) Graduates.--The Secretary shall arrange for a 
        readjustment allowance to be paid to graduates. The 
        Secretary shall arrange for the allowance to be paid at 
        the one-stop center nearest to the home of the graduate 
        who is returning home, or at the one-stop center 
        nearest to the location where the graduate has 
        indicated an intent to seek employment. If the 
        Secretary uses any organization, in lieu of a one-stop 
        center, to provide placement services under this Act, 
        the Secretary shall arrange for that organization to 
        pay the readjustment allowance.
          [(2) Former enrollees.--The Secretary may provide for 
        a readjustment allowance to be paid to former 
        enrollees. The provision of the readjustment allowance 
        shall be subject to the same requirements as are 
        applicable to the provision of the readjustment 
        allowance paid to graduates under paragraph (1).]
  (b) Transition Allowances and Support for Graduates.--The 
Secretary shall arrange for a transition allowance to be paid 
to graduates. The transition allowance shall be incentive-based 
to reflect a graduate's completion of academic, career and 
technical education or training, and attainment of a recognized 
postsecondary credential, including an industry-recognized 
credential.

SEC. 151. [OPERATING PLAN.] OPERATIONS.

  (a) [In General] Operating Plan.--The provisions of the 
contract between the Secretary and an entity selected to 
operate a Job Corps center shall, at a minimum, serve as an 
operating plan for the Job Corps center.
  [(b) Additional Information.--The Secretary may require the 
operator, in order to remain eligible to operate the Job Corps 
center, to submit such additional information as the Secretary 
may require, which shall be considered part of the operating 
plan.]
  [(c)] (b) Availability of Operating Plan.--The Secretary 
shall make the operating plan described in [subsections (a) and 
(b)] subsection (a), excluding any proprietary information, 
available to the public.
  (c) Administrative Costs.--Not more than 10 percent of the 
funds allotted under section 147 to an entity selected to 
operate a Job Corps center may be used by the entity for 
administrative costs under this subtitle.

           *       *       *       *       *       *       *

[SEC. 153. COMMUNITY PARTICIPATION.

  [(a) Business and Community Liaison.--Each Job Corps center 
shall have a Business and Community Liaison (referred to in 
this Act as a ``Liaison''), designated by the director of the 
center.
  [(b) Responsibilities.--The responsibilities of the Liaison 
shall include--
          [(1) establishing and developing relationships and 
        networks with--
                  [(A) local and distant employers; and
                  [(B) applicable one-stop centers and 
                applicable local boards,
        for the purpose of providing job opportunities for Job 
        Corps graduates; and
          [(2) establishing and developing relationships with 
        members of the community in which the Job Corps center 
        is located, informing members of the community about 
        the projects of the Job Corps center and changes in the 
        rules, procedures, or activities of the center that may 
        affect the community, and planning events of mutual 
        interest to the community and the Job Corps center.
  [(c) New Centers.--The Liaison for a Job Corps center that is 
not yet operating shall establish and develop the relationships 
and networks described in subsection (b) at least 3 months 
prior to the date on which the center accepts the first 
enrollee at the center.

[SEC. 154. INDUSTRY COUNCILS.

  [(a) In General.--Each Job Corps center shall have an 
industry council, appointed by the director of the center after 
consultation with the Liaison, in accordance with procedures 
established by the Secretary.
  [(b) Industry Council Composition.--
          [(1) In general.--An industry council shall be 
        comprised of--
                  [(A) a majority of members who shall be local 
                and distant owners of business concerns, chief 
                executives or chief operating officers of 
                nongovernmental employers, or other private 
                sector employers, who--
                          [(i) have substantial management, 
                        hiring, or policy responsibility; and
                          [(ii) represent businesses with 
                        employment opportunities that reflect 
                        the employment opportunities of the 
                        applicable local area;
                  [(B) representatives of labor organizations 
                (where present) and representatives of 
                employees; and
                  [(C) enrollees and graduates of the Job 
                Corps.
          [(2) Local board.--The industry council may include 
        members of the applicable local boards who meet the 
        requirements described in paragraph (1).
  [(c) Responsibilities.--The responsibilities of the industry 
council shall be--
          [(1) to work closely with all applicable local boards 
        in order to determine, and recommend to the Secretary, 
        appropriate vocational training for the center;
          [(2) to review all the relevant labor market 
        information to--
                  [(A) determine the employment opportunities 
                in the local areas in which the enrollees 
                intend to seek employment after graduation;
                  [(B) determine the skills and education that 
                are necessary to obtain the employment 
                opportunities; and
                  [(C) recommend to the Secretary the type of 
                vocational training that should be implemented 
                at the center to enable the enrollees to obtain 
                the employment opportunities; and
          [(3) to meet at least once every 6 months to 
        reevaluate the labor market information, and other 
        relevant information, to determine, and recommend to 
        the Secretary, any necessary changes in the vocational 
        training provided at the center.
  [(d) New Centers.--The industry council for a Job Corps 
center that is not yet operating shall carry out the 
responsibilities described in subsection (c) at least 3 months 
prior to the date on which the center accepts the first 
enrollee at the center.

[SEC. 155. ADVISORY COMMITTEES.

  [The Secretary may establish and use advisory committees in 
connection with the operation of the Job Corps program, and the 
operation of Job Corps centers, whenever the Secretary 
determines that the availability of outside advice and counsel 
on a regular basis would be of substantial benefit in 
identifying and overcoming problems, in planning program or 
center development, or in strengthening relationships between 
the Job Corps and agencies, institutions, or groups engaged in 
related activities.

[SEC. 156. EXPERIMENTAL, RESEARCH, AND DEMONSTRATION PROJECTS.

  [The Secretary may carry out experimental, research, or 
demonstration projects relating to carrying out the Job Corps 
program and may waive any provisions of this subtitle that the 
Secretary finds would prevent the Secretary from carrying out 
the projects.]

SEC. 153. COMMUNITY PARTICIPATION.

  The director of each Job Corps center shall encourage and 
cooperate in activities to establish a mutually beneficial 
relationship between Job Corps centers in the State and nearby 
communities. Such activities may include the use of any local 
workforce development boards established under section 117 to 
provide a mechanism for joint discussion of common problems and 
for planning programs of mutual interest.

SEC. 154. WORKFORCE COUNCILS.

  (a) In General.--Each Job Corps center shall have a workforce 
council appointed by the Governor of the State in which the Job 
Corps center is located.
  (b) Workforce Council Composition.--
          (1) In General.--A workforce council shall be 
        comprised of--
                  (A) business members of the State Board 
                described in section 111(b)(1)(B)(i);
                  (B) business members of the local Boards 
                described in section 117(b)(2)(A) located in 
                the State;
                  (C) a representative of the State Board 
                described in section 111(f); and
                  (D) such other representatives and State 
                agency officials as the Governor may designate.
          (2) Majority.--A \2/3\rds majority of the members of 
        the workforce council shall be representatives 
        described in paragraph (1)(A).
  (c) Responsibilities.--The responsibilities of the workforce 
council shall be--
          (1) to review all the relevant labor market 
        information, including related information in the State 
        workforce plan in section 112, to--
                  (A) determine the in-demand industries in the 
                State in which enrollees intend to seek 
                employment after graduation;
                  (B) determine the skills and education that 
                are necessary to obtain the employment 
                opportunities described in subparagraph (A); 
                and
                  (C) determine the type or types of career and 
                technical education and training that will be 
                implemented at the center to enable the 
                enrollees to obtain the employment 
                opportunities; and
          (2) to meet at least once a year to reevaluate the 
        labor market information, and other relevant 
        information, to determine any necessary changes in the 
        career and technical education and training provided at 
        the center.
  (d) New Centers.--The workforce council for a Job Corps 
center that is not yet operating shall carry out the 
responsibilities described in subsection (c) at least 3 months 
prior to the date on which the center accepts the first 
enrollee at the center.

SEC. 156. TECHNICAL ASSISTANCE TO CENTERS.

  (a) In General.--From the funds reserved under section 
132(a)(3), the Secretary shall provide, directly or through 
grants, contracts, or other agreements or arrangements as the 
Secretary considers appropriate, technical assistance and 
training for the Job Corps program for the purposes of 
improving program quality.
  (b) Activities.--In providing training and technical 
assistance and for allocating resources for such assistance, 
the Secretary shall--
          (1) assist entities, including those entities not 
        currently operating a Job Corps center, in developing 
        the application described in section 147(d);
          (2) assist Job Corps centers and programs in 
        correcting deficiencies and violations under this 
        subtitle;
          (3) assist Job Corps centers and programs in meeting 
        or exceeding the indicators of performance described in 
        paragraph (1) and (2) of section 159; and
          (4) assist Job Corps centers and programs in the 
        development of sound management practices, including 
        financial management procedures.

           *       *       *       *       *       *       *

SEC. 158. SPECIAL PROVISIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Transfer of Property.--
          (1) In general.--Notwithstanding [title II of the 
        Federal Property and Administrative Services Act of 
        1949 (40 U.S.C. 481 et seq.)] chapter 5 of title 40, 
        United States Code, and any other provision of law, the 
        Secretary and the Secretary of Education shall receive 
        priority by the Secretary of Defense for the direct 
        transfer, on a nonreimbursable basis, of the property 
        described in paragraph (2) for use in carrying out 
        programs under this Act or under any other Act.

           *       *       *       *       *       *       *

  [(e) Management Fee.--The Secretary shall provide each 
operator and (in an appropriate case, as determined by the 
Secretary) service provider with an equitable and negotiated 
management fee of not less than 1 percent of the amount of the 
funding provided under the appropriate agreement specified in 
section 147.]
  [(f)] (e) Donations.--The Secretary may accept on behalf of 
the Job Corps or individual Job Corps centers charitable 
donations of cash or other assistance, including equipment and 
materials, if such donations are available for appropriate use 
for the purposes set forth in this subtitle.
  [(g)] (f) Sale of Property.--Notwithstanding any other 
provision of law, if the Administrator of General Services 
sells a Job Corps center facility, the Administrator shall 
transfer the proceeds from the sale to the Secretary, who shall 
use the proceeds to carry out the Job Corps program.

SEC. 159. [MANAGEMENT INFORMATION] PERFORMANCE ACCOUNTABILITY AND 
                    MANAGEMENT.

  (a) * * *

           *       *       *       *       *       *       *

  [(c) Information on Indicators of Performance.--
          [(1) Establishment.--The Secretary shall, with 
        continuity and consistency from year to year, establish 
        indicators of performance, and expected levels of 
        performance for Job Corps centers and the Job Corps 
        program, relating to--
                  [(A) the number of graduates and the rate of 
                such graduation, analyzed by type of vocational 
                training received through the Job Corps program 
                and by whether the vocational training was 
                provided by a local or national service 
                provider;
                  [(B) the number of graduates who entered 
                unsubsidized employment related to the 
                vocational training received through the Job 
                Corps program and the number who entered 
                unsubsidized employment not related to the 
                vocational training received, analyzed by 
                whether the vocational training was provided by 
                a local or national service provider and by 
                whether the placement in the employment was 
                conducted by a local or national service 
                provider;
                  [(C) the average wage received by graduates 
                who entered unsubsidized employment related to 
                the vocational training received through the 
                Job Corps program and the average wage received 
                by graduates who entered unsubsidized 
                employment unrelated to the vocational training 
                received;
                  [(D) the average wage received by graduates 
                placed in unsubsidized employment after 
                completion of the Job Corps program--
                          [(i) on the first day of the 
                        employment;
                          [(ii) 6 months after the first day of 
                        the employment; and
                          [(iii) 12 months after the first day 
                        of the employment,
                analyzed by type of vocational training 
                received through the Job Corps program;
                  [(E) the number of graduates who entered 
                unsubsidized employment and were retained in 
                the unsubsidized employment--
                          [(i) 6 months after the first day of 
                        the employment; and
                          [(ii) 12 months after the first day 
                        of the employment;
                  [(F) the number of graduates who entered 
                unsubsidized employment--
                          [(i) for 32 hours per week or more;
                          [(ii) for not less than 20 but less 
                        than 32 hours per week; and
                          [(iii) for less than 20 hours per 
                        week;
                  [(G) the number of graduates who entered 
                postsecondary education or advanced training 
                programs, including apprenticeship programs, as 
                appropriate; and
                  [(H) the number of graduates who attained job 
                readiness and employment skills.
          [(2) Performance of recruiters.--The Secretary shall 
        also establish performance measures, and expected 
        performance levels on the performance measures, for 
        local and national recruitment service providers 
        serving the Job Corps program. The performance measures 
        shall relate to the number of enrollees retained in the 
        Job Corps program for 30 days and for 60 days after 
        initial placement in the program.
          [(3) Report.--The Secretary shall collect, and 
        annually submit a report to the appropriate committees 
        of Congress containing, information on the performance 
        of each Job Corps center, and the Job Corps program, on 
        the core performance measures, as compared to the 
        expected performance level for each performance 
        measure. The report shall also contain information on 
        the performance of the service providers described in 
        paragraph (2) on the performance measures established 
        under such paragraph, as compared to the expected 
        performance levels for the performance measures.
  [(d) Additional Information.--The Secretary shall also 
collect, and submit in the report described in subsection (c), 
information on the performance of each Job Corps center, and 
the Job Corps program, regarding--
          [(1) the number of enrollees served;
          [(2) the average level of learning gains for 
        graduates and former enrollees;
          [(3) the number of former enrollees and graduates who 
        entered the Armed Forces;
          [(4) the number of former enrollees who entered 
        postsecondary education;
          [(5) the number of former enrollees who entered 
        unsubsidized employment related to the vocational 
        training received through the Job Corps program and the 
        number who entered unsubsidized employment not related 
        to the vocational training received;
          [(6) the number of former enrollees and graduates who 
        obtained a secondary school diploma or its recognized 
        equivalent;
          [(7) the number and percentage of dropouts from the 
        Job Corps program including the number dismissed under 
        the zero tolerance policy described in section 152(b); 
        and
          [(8) any additional information required by the 
        Secretary.
  [(e) Methods.--The Secretary may collect the information 
described in subsections (c) and (d) using methods described in 
section 136(f)(2) consistent with State law.
  [(f) Performance Assessments and Improvements.--
          [(1) Assessments.--The Secretary shall conduct an 
        annual assessment of the performance of each Job Corps 
        center. Based on the assessment, the Secretary shall 
        take measures to continuously improve the performance 
        of the Job Corps program.
          [(2) Performance improvement plans.--With respect to 
        a Job Corps center that fails to meet the expected 
        levels of performance relating to the core performance 
        measures specified in subsection (c), the Secretary 
        shall develop and implement a performance improvement 
        plan. Such a plan shall require action including--
                  [(A) providing technical assistance to the 
                center;
                  [(B) changing the vocational training offered 
                at the center;
                  [(C) changing the management staff of the 
                center;
                  [(D) replacing the operator of the center;
                  [(E) reducing the capacity of the center;
                  [(F) relocating the center; or
                  [(G) closing the center.
          [(3) Additional performance improvement plans.--In 
        addition to the performance improvement plans required 
        under paragraph (2), the Secretary may develop and 
        implement additional performance improvement plans. 
        Such a plan shall require improvements, including the 
        actions described in paragraph (2), for a Job Corps 
        center that fails to meet criteria established by the 
        Secretary other than the expected levels of performance 
        described in paragraph (2).
  [(g) Closure of Job Corps Center.--Prior to the closure of 
any Job Corps center, the Secretary shall ensure--
          [(1) that the proposed decision to close the center 
        is announced in advance to the general public through 
        publication in the Federal Register or other 
        appropriate means;
          [(2) the establishment of a reasonable comment 
        period, not to exceed 30 days, for interested 
        individuals to submit written comments to the 
        Secretary; and
          [(3) that the Member of Congress who represents the 
        district in which such center is located is notified 
        within a reasonable period of time in advance of any 
        final decision to close the center.]
  (c) Indicators of Performance.--
          (1) Primary indicators.--The annual primary 
        indicators of performance for Job Corps centers shall 
        include--
                  (A) the percentage and number of enrollees 
                who graduate from the Job Corps center;
                  (B) the percentage and number of graduates 
                who entered unsubsidized employment related to 
                the career and technical education and training 
                received through the Job Corps center, except 
                that such calculation shall not include 
                enrollment in education, the military or 
                volunteer service;
                  (C) the percentage and number of graduates 
                who obtained a recognized postsecondary 
                credential, including an industry-recognized 
                credential or a registered apprenticeship; and
                  (D) the cost per successful performance 
                outcome, which is calculated by comparing the 
                number graduates who were placed in a job or 
                obtained a recognized credential, including an 
                industry-recognized credential, to total 
                program costs, including all operations, 
                construction, and administration costs at each 
                Job Corp center.
          (2) Secondary indicators.--The annual secondary 
        indicators of performance for Job Corps centers shall 
        include--
                  (A) the percentage and number of graduates 
                who entered unsubsidized employment not related 
                to the career and technical education and 
                training received through the Job Corps center;
                  (B) the percentage and number of graduates 
                who entered into postsecondary education;
                  (C) the percentage and number of graduates 
                who entered into the military;
                  (D) the average wage of graduates who are in 
                unsubsidized employment--
                          (i) on the first day of employment; 
                        and
                          (ii) 6 months after the first day;
                  (E) the number and percentage of graduates 
                who entered unsubsidized employment and were 
                retained in the unsubsidized employment--
                          (i) 6 months after the first day of 
                        employment; and
                          (ii) 12 months after the first day of 
                        employment;
                  (F) the percentage and number of enrollees 
                compared to the percentage and number of 
                enrollees the Secretary has established targets 
                in section 145(c)(1);
                  (G) the cost per training slot, which is 
                calculated by comparing the program's maximum 
                number of students that can be enrolled in a 
                Job Corps center at any given time during the 
                program year to the number of enrollees in the 
                same program year; and
                  (H) the number and percentage of former 
                enrollees, including the number dismissed under 
                the zero tolerance policy described in section 
                152(b).
          (3) Indicators of performance for recruiters.--The 
        annual indicators of performance for recruiters shall 
        include the measurements described in subparagraph (A) 
        of paragraph (1) and subparagraphs (F), (G), and (H) of 
        paragraph (2).
          (4) Indicators of performance of career transition 
        service providers.--The annual indicators of 
        performance of career transition service providers 
        shall include the measurements described in 
        subparagraphs (B) and (C) of paragraph (1) and 
        subparagraphs, (B), (C), (D), (E), and (F) of paragraph 
        (2).
  (d) Additional Information.--The Secretary shall collect, and 
submit in the report described in subsection (f), information 
on the performance of each Job Corps center, and the Job Corps 
program, regarding--
                  (1) the number and percentage of former 
                enrollees who obtained a regular secondary 
                school diploma;
                  (2) the number and percentage of former 
                enrollees who entered unsubsidized employment;
                  (3) the number and percentage of former 
                enrollees who obtained a recognized 
                postsecondary credential, including an 
                industry-recognized credential;
                  (4) the number and percentage of former 
                enrollees who entered into military service; 
                and
                  (5) any additional information required by 
                the Secretary.
  (e) Methods.--The Secretary shall collect the information 
described in subsections (c) and (d), using methods described 
in section 136(i)(2) and consistent with State law, by entering 
into agreements with the States to access such data for Job 
Corps enrollees, former enrollees, and graduates.
  (f) Transparency and Accountability.--
          (1) Report.--The Secretary shall collect and annually 
        submit to the Committee on Education and the Workforce 
        of the House of Representatives and the Committee on 
        Health, Education. Labor and Pensions of the Senate, as 
        well as make available to the public by electronic 
        means, a report containing--
                  (A) information on the performance of each 
                Job Corps center, and the Job Corps program, on 
                the performance indicators described in 
                paragraphs (1) and (2) of subsection (c);
                  (B) a comparison of each Job Corps center, by 
                rank, on the performance indicators described 
                in paragraphs (1) and (2) of subsection (c);
                  (C) a comparison of each Job Corps center, by 
                rank, on the average performance of all primary 
                indicators described in paragraph (1) of 
                subsection (c);
                  (D) information on the performance of the 
                service providers described in paragraphs (2) 
                and (3) on the performance indicators 
                established under such paragraphs; and
                  (E) a comparison of each service provider, by 
                rank, on the performance of all service 
                providers described in paragraphs (2) and (3) 
                on the performance indicators established under 
                such paragraphs.
          (2) Assessments.--The Secretary shall conduct an 
        annual assessment of the performance of each Job Corps 
        center which shall include information on the Job Corps 
        centers that--
                  (A) are ranked in the bottom quintile on the 
                performance indicator described in paragraph 
                (1)(A)(iii); or
                  (B) have failed safety and health code 
                violations described in subsection (g).
          (3) Performance improvement.--With respect to a Job 
        Corps center that is identified under paragraph (2) or 
        reports less than 50 percent on the performance 
        indicators described in subparagraphs (A), (B), or (C) 
        of subsection (c)(1), the Secretary shall develop and 
        implement a 1 year performance improvement plan. Such a 
        plan shall require action including--
                  (A) providing technical assistance to the 
                center;
                  (B) changing the management staff of the 
                center;
                  (C) replacing the operator of the center;
                  (D) reducing the capacity of the center; or
                  (E) closing the center.
          (4) Closure of job corps centers.--Job Corps centers 
        that have been identified under paragraph (2) or report 
        less than 50 percent on subparagraphs (A), (B), or (C) 
        under subsection (c)(1), for more than 4 consecutive 
        years shall be closed. The Secretary shall ensure--
                  (A) that the proposed decision to close the 
                center is announced in advance to the general 
                public through publication in the Federal 
                Register and other appropriate means; and
                  (B) the establishment of a reasonable comment 
                period, not to exceed 30 days, for interested 
                individuals to submit written comments to the 
                Secretary.
  (g) Participant Health and Safety.--The Secretary shall 
require the Federal agency, or appropriate agency responsible 
for inspecting public buildings and safeguarding the health of 
disadvantaged students, to conduct an in-person review of the 
physical condition and health-related activities of each Job 
Corps center annually. Such review shall include a passing rate 
of occupancy under Federal and State ordinances.

           *       *       *       *       *       *       *

[SEC. 161. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
subtitle such sums as may be necessary for each of the fiscal 
years 1999 through 2003.]

SEC. 161. CLOSURE OF LOW-PERFORMING JOB CORPS CENTERS.

  (a) Audit.--Not later than 3 months after the date of 
enactment of the Workforce Investment Improvement Act of 2012, 
the Secretary shall conduct an audit on the past 10 years of 
performance of Job Corps centers, including information 
indicating--
          (1) a comparison of each Job Corps center, by rank, 
        on the performance indicators described in subsections 
        (c) and (d) of section 159 (as such sections were in 
        effect on the day before the date of enactment of the 
        Workforce Investment Improvement Act of 2012);
          (2) a comparison of each Job Corps center, by rank, 
        on the average performance of all performance 
        indicators described in subsections (c) and (d) of 
        section 159 (as such sections were in effect on the day 
        before the date of enactment of the Workforce 
        Investment Improvement Act of 2012); and
          (3) a listing of the centers, by rank, that have 
        experienced the highest number of serious incidents of 
        crimes of violence, as defined in section 16 of title 
        18, United States Code.
  (b) Recommendations.--Not later than 6 months after the date 
of enactment of the Workforce Investment Improvement Act of 
2012, the Secretary shall submit a report to the Education and 
the Workforce Committee of the House of Representatives and the 
Health, Education, Labor, and Pensions Committee of the Senate, 
which shall contain a detailed statement of the findings and 
conclusions from the audit described in subsection (a), 
including information indicating the centers that are ranked in 
the bottom quintile on the performance indicators described in 
paragraphs (1) and (2) of subsection (a).
  (c) Closure.--Not later than 12 months after the date of 
enactment of the Workforce Investment Improvement Act of 2012, 
the Secretary shall close the Job Corps centers identified 
under subsection (b) in accordance with section 158(g).
  (d) Transition.--The Secretary shall ensure that program 
participants enrolled in low-performing Job Corps centers 
slated for closure under this subsection receive priority 
placement to enroll in another center in the State or 
neighboring State.

SEC. 162. REFORMS FOR OPENING NEW JOB CORPS CENTERS.

  (a) In General.--The Secretary shall develop and implement 
specific policies and procedures governing the selection of the 
State and local area for construction of Job Corps centers. 
Such policies and procedures shall be the same across all 
regions, based on a needs assessment of the assignment plan 
described under section 145(c), and free from political 
favoritism, biases, or considerations.
  (b) Restrictions.--
          (1) Notification of congress.--The Secretary shall 
        notify the Education and the Workforce Committee of the 
        House of Representatives and the Health, Education, 
        Labor, and Pensions Committee of the Senate before 
        releasing a Request for Proposal for the designation 
        and construction of a Job Corps center.
          (2) Number of centers.--Except as provided under 
        paragraph (3), the Secretary shall enter into 
        agreements with not more than 20 Job Corps centers per 
        region, as those regions were in effect on the date of 
        enactment of the Workforce Investment Improvement Act 
        of 2012.
          (3) Exception.--The Secretary may enter into 
        agreements with more than 20 Job Corps centers upon 
        approval, in writing, of the Chairman and Ranking 
        Member of the Education and the Workforce Committee of 
        the House of Representatives and the Health, Education, 
        Labor, and Pensions Committee of the Senate.

                     Subtitle D--National Programs

[SEC. 166. NATIVE AMERICAN PROGRAMS.

  [(a) Purpose.--
          [(1) In general.--The purpose of this section is to 
        support employment and training activities for Indian, 
        Alaska Native, and Native Hawaiian individuals in 
        order--
                  [(A) to develop more fully the academic, 
                occupational, and literacy skills of such 
                individuals;
                  [(B) to make such individuals more 
                competitive in the workforce; and
                  [(C) to promote the economic and social 
                development of Indian, Alaska Native, and 
                Native Hawaiian communities in accordance with 
                the goals and values of such communities.
          [(2) Indian policy.--All programs assisted under this 
        section shall be administered in a manner consistent 
        with the principles of the Indian Self-Determination 
        and Education Assistance Act (25 U.S.C. 450 et seq.) 
        and the government-to-government relationship between 
        the Federal Government and Indian tribal governments.
  [(b) Definitions.--As used in this section:
          [(1) Alaska native.--The term ``Alaska Native'' means 
        a Native as such term is defined in section 3(b) of the 
        Alaska Native Claims Settlement Act (43 U.S.C. 
        1602(b)).
          [(2) Indian, indian tribe, and tribal organization.--
        The terms ``Indian'', ``Indian tribe'', and ``tribal 
        organization'' have the meanings given such terms in 
        subsections (d), (e), and (l), respectively, of section 
        4 of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450b).
          [(3) Native hawaiian and native hawaiian 
        organization.--The terms ``Native Hawaiian'' and 
        ``Native Hawaiian organization'' have the meanings 
        given such terms in section 7207 of the Native Hawaiian 
        Education Act.
  [(c) Program Authorized.--
          [(1) In general.--The Secretary shall, on a 
        competitive basis, make grants to, or enter into 
        contracts or cooperative agreements with, Indian 
        tribes, tribal organizations, Alaska Native entities, 
        Indian-controlled organizations serving Indians, or 
        Native Hawaiian organizations to carry out the 
        authorized activities described in subsection (d).
          [(2) Exception.--The competition for grants, 
        contracts, or cooperative agreements conducted under 
        paragraph (1) shall be conducted every 2 years, except 
        that if a recipient of such a grant, contract, or 
        agreement has performed satisfactorily, the Secretary 
        may waive the requirements for such competition on 
        receipt from the recipient of a satisfactory 2-year 
        program plan for the succeeding 2-year period of the 
        grant, contract, or agreement.
  [(d) Authorized Activities.--
          [(1) In general.--Funds made available under 
        subsection (c) shall be used to carry out the 
        activities described in paragraph (2) that--
                  [(A) are consistent with this section; and
                  [(B) are necessary to meet the needs of 
                Indians or Native Hawaiians preparing to enter, 
                reenter, or retain unsubsidized employment.
          [(2) Workforce investment activities and supplemental 
        services.--
                  [(A) In general.--Funds made available under 
                subsection (c) shall be used for--
                          [(i) comprehensive workforce 
                        investment activities for Indians or 
                        Native Hawaiians; or
                          [(ii) supplemental services for 
                        Indian or Native Hawaiian youth on or 
                        near Indian reservations and in 
                        Oklahoma, Alaska, or Hawaii.
                  [(B) Special rule.--Notwithstanding any other 
                provision of this section, individuals who were 
                eligible to participate in programs under 
                section 401 of the Job Training Partnership Act 
                (29 U.S.C. 1671) (as such section was in effect 
                on the day before the date of enactment of this 
                Act) shall be eligible to participate in an 
                activity assisted under this section.
  [(e) Program Plan.--In order to receive a grant or enter into 
a contract or cooperative agreement under this section an 
entity described in subsection (c) shall submit to the 
Secretary a program plan that describes a 2-year strategy for 
meeting the needs of Indian, Alaska Native, or Native Hawaiian 
individuals, as appropriate, in the area served by such entity. 
Such plan shall--
          [(1) be consistent with the purpose of this section;
          [(2) identify the population to be served;
          [(3) identify the education and employment needs of 
        the population to be served and the manner in which the 
        activities to be provided will strengthen the ability 
        of the individuals served to obtain or retain 
        unsubsidized employment;
          [(4) describe the activities to be provided and the 
        manner in which such activities are to be integrated 
        with other appropriate activities; and
          [(5) describe, after the entity submitting the plan 
        consults with the Secretary, the performance measures 
        to be used to assess the performance of entities in 
        carrying out the activities assisted under this 
        section.
  [(f) Consolidation of Funds.--Each entity receiving 
assistance under subsection (c) may consolidate such assistance 
with assistance received from related programs in accordance 
with the provisions of the Indian Employment, Training and 
Related Services Demonstration Act of 1992 (25 U.S.C. 3401 et 
seq.).
  [(g) Nonduplicative and Nonexclusive Services.--Nothing in 
this section shall be construed--
          [(1) to limit the eligibility of any entity described 
        in subsection (c) to participate in any activity 
        offered by a State or local entity under this Act; or
          [(2) to preclude or discourage any agreement, between 
        any entity described in subsection (c) and any State or 
        local entity, to facilitate the provision of services 
        by such entity or to the population served by such 
        entity.
  [(h) Administrative Provisions.--
          [(1) Organizational unit established.--The Secretary 
        shall designate a single organizational unit within the 
        Department of Labor that shall have primary 
        responsibility for the administration of the activities 
        authorized under this section.
          [(2) Regulations.--The Secretary shall consult with 
        the entities described in subsection (c) in--
                  [(A) establishing regulations to carry out 
                this section, including performance measures 
                for entities receiving assistance under such 
                subsection, taking into account the economic 
                circumstances of such entities; and
                  [(B) developing a funding distribution plan 
                that takes into consideration previous levels 
                of funding (prior to the date of enactment of 
                this Act) to such entities.
          [(3) Waivers.--
                  [(A) In general.--With respect to an entity 
                described in subsection (c), the Secretary, 
                notwithstanding any other provision of law, 
                may, pursuant to a request submitted by such 
                entity that meets the requirements established 
                under subparagraph (B), waive any of the 
                statutory or regulatory requirements of this 
                title that are inconsistent with the specific 
                needs of the entities described in such 
                subsection, except that the Secretary may not 
                waive requirements relating to wage and labor 
                standards, worker rights, participation and 
                protection of workers and participants, 
                grievance procedures, and judicial review.
                  [(B) Request and approval.--An entity 
                described in subsection (c) that requests a 
                waiver under subparagraph (A) shall submit a 
                plan to the Secretary to improve the program of 
                workforce investment activities carried out by 
                the entity, which plan shall meet the 
                requirements established by the Secretary and 
                shall be generally consistent with the 
                requirements of section 189(i)(4)(B).
          [(4) Advisory council.--
                  [(A) In general.--Using funds made available 
                to carry out this section, the Secretary shall 
                establish a Native American Employment and 
                Training Council to facilitate the consultation 
                described in paragraph (2).
                  [(B) Composition.--The Council shall be 
                composed of individuals, appointed by the 
                Secretary, who are representatives of the 
                entities described in subsection (c).
                  [(C) Duties.--The Council shall advise the 
                Secretary on all aspects of the operation and 
                administration of the programs assisted under 
                this section, including the selection of the 
                individual appointed as the head of the unit 
                established under paragraph (1).
                  [(D) Personnel matters.--
                          [(i) Compensation of members.--
                        Members of the Council shall serve 
                        without compensation.
                          [(ii) Travel expenses.--The members 
                        of the Council shall be allowed travel 
                        expenses, including per diem in lieu of 
                        subsistence, at rates authorized for 
                        employees of agencies under subchapter 
                        I of chapter 57 of title 5, United 
                        States Code, while away from their 
                        homes or regular places of business in 
                        the performance of services for the 
                        Council.
                          [(iii) Administrative support.--The 
                        Secretary shall provide the Council 
                        with such administrative support as may 
                        be necessary to perform the functions 
                        of the Council.
                  [(E) Chairperson.--The Council shall select a 
                chairperson from among its members.
                  [(F) Meetings.--The Council shall meet not 
                less than twice each year.
                  [(G) Application.--Section 14 of the Federal 
                Advisory Committee Act (5 U.S.C. App.) shall 
                not apply to the Council.
          [(5) Technical assistance.--The Secretary, acting 
        through the unit established under paragraph (1), is 
        authorized to provide technical assistance to entities 
        described in subsection (c) that receive assistance 
        under subsection (c) to enable such entities to improve 
        the activities authorized under this section that are 
        provided by such entities.
          [(6) Agreement for certain federally recognized 
        indian tribes to transfer funds to the program.--A 
        federally recognized Indian tribe that administers 
        funds provided under this section and funds provided by 
        more than one State under other sections of this title 
        may enter into an agreement with the Secretary and the 
        Governors of the affected States to transfer the funds 
        provided by the States to the program administered by 
        the tribe under this section.
  [(i) Compliance With Single Audit Requirements; Related 
Requirement.--Grants, contracts, and cooperative agreements 
entered into under this section shall be subject to the 
requirements of chapter 75 of subtitle V of title 31, United 
States Code (enacted by the Single Audit Act of 1984) and 
charging of costs under this section shall be subject to 
appropriate circulars issued by the Office of Management and 
Budget.
  [(j) Assistance to American Samoans in Hawaii.--
          [(1) In general.--Notwithstanding any other provision 
        of law, the Secretary is authorized to provide 
        assistance to American Samoans who reside in Hawaii for 
        the co-location of federally funded and State-funded 
        workforce investment activities.
          [(2) Authorization of appropriations.--There are 
        authorized to be appropriated for fiscal year 1999 such 
        sums as may be necessary to carry out this subsection.

[SEC. 167. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

  [(a) In General.--Every 2 years, the Secretary shall, on a 
competitive basis, make grants to, or enter into contracts 
with, eligible entities to carry out the activities described 
in subsection (d).
  [(b) Eligible Entities.--To be eligible to receive a grant or 
enter into a contract under this section, an entity shall have 
an understanding of the problems of eligible migrant and 
seasonal farmworkers (including dependents), a familiarity with 
the area to be served, and the ability to demonstrate a 
capacity to administer effectively a diversified program of 
workforce investment activities (including youth activities) 
and related assistance for eligible migrant and seasonal 
farmworkers.
  [(c) Program Plan.--
          [(1) In general.--To be eligible to receive a grant 
        or enter into a contract under this section, an entity 
        described in subsection (b) shall submit to the 
        Secretary a plan that describes a 2-year strategy for 
        meeting the needs of eligible migrant and seasonal 
        farmworkers in the area to be served by such entity.
          [(2) Contents.--Such plan shall--
                  [(A) identify the education and employment 
                needs of the population to be served and the 
                manner in which the services to be provided 
                will strengthen the ability of the eligible 
                migrant and seasonal farmworkers and dependents 
                to obtain or retain unsubsidized employment or 
                stabilize their unsubsidized employment;
                  [(B) describe the related assistance and 
                supportive services to be provided and the 
                manner in which such assistance and services 
                are to be integrated and coordinated with other 
                appropriate services; and
                  [(C) describe the indicators of performance 
                to be used to assess the performance of such 
                entity in carrying out the activities assisted 
                under this section.
          [(3) Administration.--Grants and contracts awarded 
        under this section shall be centrally administered by 
        the Department of Labor and competitively awarded by 
        the Secretary using procedures consistent with standard 
        Federal Government competitive procurement policies.
          [(4) Competition.--
                  [(A) In general.--The competition for grants 
                made and contracts entered into under this 
                section shall be conducted every 2 years.
                  [(B) Exception.--Notwithstanding subparagraph 
                (A), if a recipient of such a grant or contract 
                has performed satisfactorily under the terms of 
                the grant agreement or contract, the Secretary 
                may waive the requirement for such competition 
                for such recipient upon receipt from the 
                recipient of a satisfactory 2-year plan 
                described in paragraph (1) for the succeeding 
                2-year grant or contract period. The Secretary 
                may exercise the waiver authority of the 
                preceding sentence not more than once during 
                any 4-year period with respect to any single 
                recipient.
  [(d) Authorized Activities.--Funds made available under this 
section and section 127(b)(1)(A)(iii) shall be used to carry 
out workforce investment activities (including youth 
activities) and provide related assistance for eligible migrant 
and seasonal farmworkers, which may include employment, 
training, educational assistance, literacy assistance, an 
English language program, worker safety training, housing, 
supportive services, dropout prevention activities, followup 
services for those individuals placed in employment, self-
employment and related business enterprise development 
education as needed by eligible migrant and seasonal 
farmworkers and identified pursuant to the plan required by 
subsection (c), and technical assistance relating to capacity 
enhancement in such areas as management information technology.
  [(e) Consultation With Governors and Local Boards.--In making 
grants and entering into contracts under this section, the 
Secretary shall consult with the Governors and local boards of 
the States in which the eligible entities will carry out the 
activities described in subsection (d).
  [(f) Regulations.--The Secretary shall consult with eligible 
migrant and seasonal farmworkers groups and States in 
establishing regulations to carry out this section, including 
performance measures for eligible entities that take into 
account the economic circumstances and demographics of eligible 
migrant and seasonal farmworkers.
  [(g) Compliance With Single Audit Requirements; Related 
Requirement.--Grants and contracts entered into under this 
section shall be subject to the requirements of chapter 75 of 
subtitle V of title 31, United States Code (enacted by the 
Single Audit Act of 1984) and charging of costs under this 
section shall be subject to appropriate circulars issued by the 
Office of Management and Budget.
  [(h) Definitions.--In this section:
          [(1) Disadvantaged.--The term ``disadvantaged'', used 
        with respect to a farmworker, means a farmworker whose 
        income, for 12 consecutive months out of the 24 months 
        prior to application for the program involved, does not 
        exceed the higher of--
                  [(A) the poverty line (as defined in section 
                334(a)(2)(B)) for an equivalent period; or
                  [(B) 70 percent of the lower living standard 
                income level, for an equivalent period.
          [(2) Eligible migrant and seasonal farmworkers.--The 
        term ``eligible migrant and seasonal farmworkers'' 
        means individuals who are eligible migrant farmworkers 
        or are eligible seasonal farmworkers.
          [(3) Eligible migrant farmworker.--The term 
        ``eligible migrant farmworker'' means--
                  [(A) an eligible seasonal farmworker 
                described in paragraph (4)(A) whose 
                agricultural labor requires travel to a job 
                site such that the farmworker is unable to 
                return to a permanent place of residence within 
                the same day; and
                  [(B) a dependent of the farmworker described 
                in subparagraph (A).
          [(4) Eligible seasonal farmworker.--The term 
        ``eligible seasonal farmworker'' means--
                  [(A) a disadvantaged person who, for 12 
                consecutive months out of the 24 months prior 
                to application for the program involved, has 
                been primarily employed in agricultural labor 
                that is characterized by chronic unemployment 
                or underemployment; and
                  [(B) a dependent of the person described in 
                subparagraph (A).

[SEC. 168. VETERANS' WORKFORCE INVESTMENT PROGRAMS.

  [(a) Authorization.--
          [(1) In general.--The Secretary shall conduct, 
        directly or through grants or contracts, programs to 
        meet the needs for workforce investment activities of 
        veterans with service-connected disabilities, veterans 
        who have significant barriers to employment, veterans 
        who served on active duty in the armed forces during a 
        war or in a campaign or expedition for which a campaign 
        badge has been authorized, and recently separated 
        veterans.
          [(2) Conduct of programs.--Programs supported under 
        this section may be conducted through grants and 
        contracts with public agencies and private nonprofit 
        organizations, including recipients of Federal 
        assistance under other provisions of this title, that 
        the Secretary determines have an understanding of the 
        unemployment problems of veterans described in 
        paragraph (1), familiarity with the area to be served, 
        and the capability to administer effectively a program 
        of workforce investment activities for such veterans.
          [(3) Required activities.--Programs supported under 
        this section shall include--
                  [(A) activities to enhance services provided 
                to veterans by other providers of workforce 
                investment activities funded by Federal, State, 
                or local government;
                  [(B) activities to provide workforce 
                investment activities to such veterans that are 
                not adequately provided by other public 
                providers of workforce investment activities; 
                and
                  [(C) outreach and public information 
                activities to develop and promote maximum job 
                and job training opportunities for such 
                veterans and to inform such veterans about 
                employment, job training, on-the-job training 
                and educational opportunities under this title, 
                under title 38, United States Code, and under 
                other provisions of law, which activities shall 
                be coordinated with activities provided through 
                the one-stop centers described in section 
                134(c).
  [(b) Administration of Programs.--
          [(1) In general.--The Secretary shall administer 
        programs supported under this section through the 
        Assistant Secretary for Veterans' Employment and 
        Training.
          [(2) Additional responsibilities.--In carrying out 
        responsibilities under this section, the Assistant 
        Secretary for Veterans' Employment and Training shall--
                  [(A) be responsible for the awarding of 
                grants and contracts and the distribution of 
                funds under this section and for the 
                establishment of appropriate fiscal controls, 
                accountability, and program performance 
                measures for recipients of grants and contracts 
                under this section; and
                  [(B) consult with the Secretary of Veterans 
                Affairs and take steps to ensure that programs 
                supported under this section are coordinated, 
                to the maximum extent feasible, with related 
                programs and activities conducted under title 
                38, United States Code, including programs and 
                activities conducted under chapter 63 of such 
                title, chapters 30, 31, 32, and 34 of such 
                title, and sections 1712A, 1720A, 3687, and 
                4103A of such title.

[SEC. 169. YOUTH OPPORTUNITY GRANTS.

  [(a) Grants.--
          [(1) In general.--Using funds made available under 
        section 127(b)(1)(A), the Secretary shall make grants 
        to eligible local boards and eligible entities 
        described in subsection (d) to provide activities 
        described in subsection (b) for youth to increase the 
        long-term employment of youth who live in empowerment 
        zones, enterprise communities, and high poverty areas 
        and who seek assistance.
          [(2) Definition.--In this section, the term ``youth'' 
        means an individual who is not less than age 14 and not 
        more than age 21.
          [(3) Grant period.--The Secretary may make a grant 
        under this section for a 1-year period, and may renew 
        the grant for each of the 4 succeeding years.
          [(4) Grant awards.--In making grants under this 
        section, the Secretary shall ensure that grants are 
        distributed equitably among local boards and entities 
        serving urban areas and local boards and entities 
        serving rural areas, taking into consideration the 
        poverty rate in such urban and rural areas, as 
        described in subsection (c)(3)(B).
  [(b) Use of Funds.--
          [(1) In general.--A local board or entity that 
        receives a grant under this section shall use the funds 
        made available through the grant to provide activities 
        that meet the requirements of section 129, except as 
        provided in paragraph (2), as well as youth development 
        activities such as activities relating to leadership 
        development, citizenship, and community service, and 
        recreation activities.
          [(2) Intensive placement and followup services.--In 
        providing activities under this section, a local board 
        or entity shall provide--
                  [(A) intensive placement services; and
                  [(B) followup services for not less than 24 
                months after the completion of participation in 
                the other activities described in this 
                subsection, as appropriate.
  [(c) Eligible Local Boards.--To be eligible to receive a 
grant under this section, a local board shall serve a community 
that--
          [(1) has been designated as an empowerment zone or 
        enterprise community under section 1391 of the Internal 
        Revenue Code of 1986;
          [(2)(A) is a State without a zone or community 
        described in paragraph (1); and
          [(B) has been designated as a high poverty area by 
        the Governor of the State; or
          [(3) is 1 of 2 areas in a State that--
                  [(A) have been designated by the Governor as 
                areas for which a local board may apply for a 
                grant under this section; and
                  [(B) meet the poverty rate criteria set forth 
                in subsections (a)(4), (b), and (d) of section 
                1392 of the Internal Revenue Code of 1986.
  [(d) Eligible Entities.--To be eligible to receive a grant 
under this section, an entity (other than a local board) 
shall--
          [(1) be a recipient of financial assistance under 
        section 166; and
          [(2) serve a community that--
                  [(A) meets the poverty rate criteria set 
                forth in subsections (a)(4), (b), and (d) of 
                section 1392 of the Internal Revenue Code of 
                1986; and
                  [(B) is located on an Indian reservation or 
                serves Oklahoma Indians or Alaska Natives.
  [(e) Application.--To be eligible to receive a grant under 
this section, a local board or entity shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require, 
including--
          [(1) a description of the activities that the local 
        board or entity will provide under this section to 
        youth in the community described in subsection (c);
          [(2) a description of the performance measures 
        negotiated under subsection (f), and the manner in 
        which the local boards or entities will carry out the 
        activities to meet the performance measures;
          [(3) a description of the manner in which the 
        activities will be linked to activities described in 
        section 129; and
          [(4) a description of the community support, 
        including financial support through leveraging 
        additional public and private resources, for the 
        activities.
  [(f) Performance Measures.--
          [(1) In general.--The Secretary shall negotiate and 
        reach agreement with the local board or entity on 
        performance measures for the indicators of performance 
        referred to in subparagraphs (A) and (B) of section 
        136(b)(2) that will be used to evaluate the performance 
        of the local board or entity in carrying out the 
        activities described in subsection (b). Each local 
        performance measure shall consist of such a indicator 
        of performance, and a performance level referred to in 
        paragraph (2).
          [(2) Performance levels.--The Secretary shall 
        negotiate and reach agreement with the local board or 
        entity regarding the levels of performance expected to 
        be achieved by the local board or entity on the 
        indicators of performance.
  [(g) Role Model Academy Project.--
          [(1) In general.--Using the funds made available 
        pursuant to section 127(b)(1)(A)(iv) for fiscal year 
        1999, the Secretary shall provide assistance to an 
        entity to carry out a project establishing a role model 
        academy for out-of-school youth.
          [(2) Residential center.--The entity shall use the 
        assistance to establish an academy that consists of a 
        residential center located on the site of a military 
        installation closed or realigned pursuant to a law 
        providing for closures and realignments of such 
        installations.
          [(3) Services.--The academy established pursuant to 
        this subsection shall provide services that--
                  [(A) utilize a military style model that 
                emphasizes leadership skills and discipline, or 
                another model of demonstrated effectiveness; 
                and
                  [(B) include vocational training, secondary 
                school course work leading to a secondary 
                school diploma or recognized equivalent, and 
                the use of mentors who serve as role models and 
                who provide academic training and career 
                counseling to the youth.]

SEC. 170. TECHNICAL ASSISTANCE.

  [(a) General Technical Assistance.--]
  [(1)] (a) In General.--The Secretary shall provide, 
coordinate, and support the development of, appropriate 
training, technical assistance, staff development, and other 
activities, including assistance in replicating programs of 
demonstrated effectiveness, to States and localities, the 
training of staff providing rapid response services, the 
training of other staff of recipients of funds under this 
title, assistance regarding accounting and program operation 
practices (when such assistance would not be duplicative to 
assistance provided by the State), technical assistance to 
States that do not meet State performance measures described in 
section 136, and, in particular, to assist States in making 
transitions [from carrying out activities under the provisions 
of law repealed under section 199 to carrying out activities 
under this title] to implement the amendments made by the 
Workforce Investment Improvement Act of 2012.
  [(2)] (b) Form of Assistance.--In carrying out [paragraph 
(1)] subsection (a) on behalf of a State[, or recipient of 
financial assistance under any of sections 166 through 169,] 
the Secretary, after consultation with the State or grant 
recipient, may award grants and enter into contracts and 
cooperative agreements.
  [(3)] (c) Limitation.--Grants or contracts awarded under 
[paragraph (1)] subsection (a) to entities other than States or 
local units of government that are for amounts in excess of 
$100,000 shall only be awarded on a competitive basis.
  (d) Best Practices Coordination.--The Secretary shall--
          (1) establish a system through which States may share 
        information regarding best practices with regard to the 
        operation of workforce investment activities under this 
        Act; and
          (2) evaluate and disseminate information regarding 
        best practices and identify knowledge gaps.
  [(b) Dislocated Worker Technical Assistance.--
          [(1) Authority.--Of the amounts available pursuant to 
        section 132(a)(2), the Secretary shall reserve not more 
        than 5 percent of such amounts to provide technical 
        assistance to States that do not meet the State 
        performance measures described in section 136 with 
        respect to employment and training activities for 
        dislocated workers. Using such reserved funds, the 
        Secretary may provide such assistance to other States, 
        local areas, and other entities involved in providing 
        assistance to dislocated workers, to promote the 
        continuous improvement of assistance provided to 
        dislocated workers, under this title.
          [(2) Training.--Amounts reserved under this 
        subsection may be used to provide for the training of 
        staff, including specialists, who provide rapid 
        response services. Such training shall include 
        instruction in proven methods of promoting, 
        establishing, and assisting labor-management 
        committees. Such projects shall be administered through 
        the dislocated worker office described in section 
        173(b).]

[SEC. 171. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH, AND MULTISTATE 
                    PROJECTS.

  [(a) Strategic Plan.--
          [(1) In general.--After consultation with States, 
        localities, and other interested parties, the Secretary 
        shall, every 2 years, publish in the Federal Register, 
        a plan that describes the demonstration and pilot 
        (including dislocated worker demonstration and pilot), 
        multiservice, research, and multistate project 
        priorities of the Department of Labor concerning 
        employment and training for the 5-year period following 
        the submission of the plan. Copies of the plan shall be 
        transmitted to the appropriate committees of Congress.
          [(2) Factors.--The plan published under paragraph (1) 
        shall contain strategies to address national employment 
        and training problems and take into account factors 
        such as--
                  [(A) the availability of existing research 
                (as of the date of the publication);
                  [(B) the need to ensure results that have 
                interstate validity;
                  [(C) the benefits of economies of scale and 
                the efficiency of proposed projects; and
                  [(D) the likelihood that the results of the 
                projects will be useful to policymakers and 
                stakeholders in addressing employment and 
                training problems.
  [(b) Demonstration and Pilot Projects.--
          [(1) In general.--Under a plan published under 
        subsection (a), the Secretary shall, through grants or 
        contracts, carry out demonstration and pilot projects 
        for the purpose of developing and implementing 
        techniques and approaches, and demonstrating the 
        effectiveness of specialized methods, in addressing 
        employment and training needs. Such projects shall 
        include the provision of direct services to individuals 
        to enhance employment opportunities and an evaluation 
        component and may include--
                  [(A) the establishment of advanced 
                manufacturing technology skill centers 
                developed through local partnerships of 
                industry, labor, education, community-based 
                organizations, and economic development 
                organizations to meet unmet, high-tech skill 
                needs of local communities;
                  [(B) projects that provide training to 
                upgrade the skills of employed workers who 
                reside and are employed in enterprise 
                communities or empowerment zones;
                  [(C) programs conducted jointly with the 
                Department of Defense to develop training 
                programs utilizing computer-based and other 
                innovative learning technologies;
                  [(D) projects that promote the use of 
                distance learning, enabling students to take 
                courses through the use of media technology 
                such as videos, teleconferencing computers, and 
                the Internet;
                  [(E) projects that assist in providing 
                comprehensive services to increase the 
                employment rates of out-of-school youth 
                residing in targeted high poverty areas within 
                empowerment zones and enterprise communities;
                  [(F) the establishment of partnerships with 
                national organizations with special expertise 
                in developing, organizing, and administering 
                employment and training services, for 
                individuals with disabilities, at the national, 
                State, and local levels;
                  [(G) projects to assist public housing 
                authorities that provide, to public housing 
                residents, job training programs that 
                demonstrate success in upgrading the job skills 
                and promoting employment of the residents; and
                  [(H) projects that assist local areas to 
                develop and implement local self-sufficiency 
                standards to evaluate the degree to which 
                participants in programs under this title are 
                achieving self-sufficiency.
          [(2) Limitations.--
                  [(A) Competitive awards.--Grants or contracts 
                awarded for carrying out demonstration and 
                pilot projects under this subsection shall be 
                awarded in accordance with generally applicable 
                Federal requirements.
                  [(B) Eligible entities.--Grants or contracts 
                may be awarded under this subsection only to--
                          [(i) entities with recognized 
                        expertise in--
                                  [(I) conducting national 
                                demonstration projects;
                                  [(II) utilizing state-of-the-
                                art demonstration methods; or
                                  [(III) conducting evaluations 
                                of workforce investment 
                                projects; or
                          [(ii) State and local entities with 
                        expertise in operating or overseeing 
                        workforce investment programs.
                  [(C) Time limits.--The Secretary shall 
                establish appropriate time limits for carrying 
                out demonstration and pilot projects under this 
                subsection.
  [(c) Multiservice Projects, Research Projects, and Multistate 
Projects.--
          [(1) Multiservice projects.--Under a plan published 
        under subsection (a), the Secretary shall, through 
        grants or contracts, carry out multiservice projects--
                  [(A) that will test an array of approaches to 
                the provision of employment and training 
                services to a variety of targeted populations;
                  [(B) in which the entity carrying out the 
                project, in conjunction with employers, 
                organized labor, and other groups such as the 
                disability community, will design, develop, and 
                test various training approaches in order to 
                determine effective practices; and
                  [(C) that will assist in the development and 
                replication of effective service delivery 
                strategies for targeted populations for the 
                national employment and training system as a 
                whole.
          [(2) Research projects.--
                  [(A) In general.--Under a plan published 
                under subsection (a), the Secretary shall, 
                through grants or contracts, carry out research 
                projects that will contribute to the solution 
                of employment and training problems in the 
                United States.
                  [(B) Formula improvement study and report.--
                          [(i) Study.--The Secretary shall 
                        conduct a 2-year study concerning 
                        improvements in the formulas described 
                        in section 132(b)(1)(B) and paragraphs 
                        (2)(A) and (3) of section 133(b) 
                        (regarding distributing funds under 
                        subtitle B to States and local areas 
                        for adult employment and training 
                        activities). In conducting the study, 
                        the Secretary shall examine means of 
                        improving the formulas by--
                                  [(I) developing formulas 
                                based on statistically reliable 
                                data;
                                  [(II) developing formulas 
                                that are consistent with the 
                                goals and objectives of this 
                                title; and
                                  [(III) developing formulas 
                                based on organizational and 
                                financial stability of State 
                                boards and local boards.
                          [(ii) Report.--The Secretary shall 
                        prepare and submit to Congress a report 
                        containing the results of the study, 
                        including recommendations for improved 
                        formulas.
          [(3) Multistate projects.--
                  [(A) In general.--
                          [(i) Authority.--Under a plan 
                        published under subsection (a), the 
                        Secretary may, through grants or 
                        contracts, carry out multistate 
                        projects that require demonstrated 
                        expertise that is available at the 
                        national level to effectively 
                        disseminate best practices and models 
                        for implementing employment and 
                        training services, address the 
                        specialized employment and training 
                        needs of particular service 
                        populations, or address industry-wide 
                        skill shortages.
                          [(ii) Design of grants.--Grants or 
                        contracts awarded under this subsection 
                        shall be designed to obtain information 
                        relating to the provision of services 
                        under different economic conditions or 
                        to various demographic groups in order 
                        to provide guidance at the national and 
                        State levels about how best to 
                        administer specific employment and 
                        training services.
          [(4) Limitations.--
                  [(A) Competitive awards.--Grants or contracts 
                awarded for carrying out projects under this 
                subsection in amounts that exceed $100,000 
                shall be awarded only on a competitive basis, 
                except that a noncompetitive award may be made 
                in the case of a project that is funded jointly 
                with other public or private sector entities 
                that provide a substantial portion of 
                assistance under the grant or contract for the 
                project.
                  [(B) Time limits.--A grant or contract shall 
                not be awarded under this subsection to the 
                same organization for more than 3 consecutive 
                years unless such grant or contract is 
                competitively reevaluated within such period.
                  [(C) Peer review.--
                          [(i) In general.--The Secretary shall 
                        utilize a peer review process--
                                  [(I) to review and evaluate 
                                all applications for grants in 
                                amounts that exceed $500,000 
                                that are submitted under this 
                                section; and
                                  [(II) to review and designate 
                                exemplary and promising 
                                programs under this section.
                          [(ii) Availability of funds.--The 
                        Secretary is authorized to use funds 
                        provided under this section to carry 
                        out peer review activities under this 
                        subparagraph.
                  [(D) Priority.--In awarding grants or 
                contracts under this subsection, priority shall 
                be provided to entities with nationally 
                recognized expertise in the methods, 
                techniques, and knowledge of workforce 
                investment activities and shall include 
                appropriate time limits, established by the 
                Secretary, for the duration of such projects.
  [(d) Dislocated Worker Projects.--Of the amount made 
available pursuant to section 132(a)(2)(A) for any program 
year, the Secretary shall use not more than 10 percent of such 
amount to carry out demonstration and pilot projects, 
multiservice projects, and multistate projects, relating to the 
employment and training needs of dislocated workers. Of the 
requirements of this section, such projects shall be subject 
only to the provisions relating to review and evaluation of 
applications under subsection (c)(4)(C). Such projects may 
include demonstration and pilot projects relating to promoting 
self-employment, promoting job creation, averting dislocations, 
assisting dislocated farmers, assisting dislocated fishermen, 
and promoting public works. Such projects shall be administered 
through the dislocated worker office described in section 
173(b).
  [(e) Energy Efficiency and Renewable Energy Worker Training 
Program.--
          [(1) Grant program.--
                  [(A) In general.--Not later than 6 months 
                after the date of enactment of the Green Jobs 
                Act of 2007, the Secretary, in consultation 
                with the Secretary of Energy, shall establish 
                an energy efficiency and renewable energy 
                worker training program under which the 
                Secretary shall carry out the activities 
                described in paragraph (2) to achieve the 
                purposes of this subsection.
                  [(B) Eligibility.--For purposes of providing 
                assistance and services under the program 
                established under this subsection--
                          [(i) target populations of eligible 
                        individuals to be given priority for 
                        training and other services shall 
                        include--
                                  [(I) workers impacted by 
                                national energy and 
                                environmental policy;
                                  [(II) individuals in need of 
                                updated training related to the 
                                energy efficiency and renewable 
                                energy industries;
                                  [(III) veterans, or past and 
                                present members of reserve 
                                components of the Armed Forces;
                                  [(IV) unemployed individuals;
                                  [(V) individuals, including 
                                at-risk youth, seeking 
                                employment pathways out of 
                                poverty and into economic self-
                                sufficiency; and
                                  [(VI) formerly incarcerated, 
                                adjudicated, nonviolent 
                                offenders; and
                          [(ii) energy efficiency and renewable 
                        energy industries eligible to 
                        participate in a program under this 
                        subsection include--
                                  [(I) the energy-efficient 
                                building, construction, and 
                                retrofits industries;
                                  [(II) the renewable electric 
                                power industry;
                                  [(III) the energy efficient 
                                and advanced drive train 
                                vehicle industry;
                                  [(IV) the biofuels industry;
                                  [(V) the deconstruction and 
                                materials use industries;
                                  [(VI) the energy efficiency 
                                assessment industry serving the 
                                residential, commercial, or 
                                industrial sectors; and
                                  [(VII) manufacturers that 
                                produce sustainable products 
                                using environmentally 
                                sustainable processes and 
                                materials.
          [(2) Activities.--
                  [(A) National research program.--Under the 
                program established under paragraph (1), the 
                Secretary, acting through the Bureau of Labor 
                Statistics, where appropriate, shall collect 
                and analyze labor market data to track 
                workforce trends resulting from energy-related 
                initiatives carried out under this subsection. 
                Activities carried out under this paragraph 
                shall include--
                          [(i) tracking and documentation of 
                        academic and occupational competencies 
                        as well as future skill needs with 
                        respect to renewable energy and energy 
                        efficiency technology;
                          [(ii) tracking and documentation of 
                        occupational information and workforce 
                        training data with respect to renewable 
                        energy and energy efficiency 
                        technology;
                          [(iii) collaborating with State 
                        agencies, workforce investments boards, 
                        industry, organized labor, and 
                        community and nonprofit organizations 
                        to disseminate information on 
                        successful innovations for labor market 
                        services and worker training with 
                        respect to renewable energy and energy 
                        efficiency technology;
                          [(iv) serving as a clearinghouse for 
                        best practices in workforce 
                        development, job placement, and 
                        collaborative training partnerships;
                          [(v) encouraging the establishment of 
                        workforce training initiatives with 
                        respect to renewable energy and energy 
                        efficiency technologies;
                          [(vi) linking research and 
                        development in renewable energy and 
                        energy efficiency technology with the 
                        development of standards and curricula 
                        for current and future jobs;
                          [(vii) assessing new employment and 
                        work practices including career ladder 
                        and upgrade training as well as high 
                        performance work systems; and
                          [(viii) providing technical 
                        assistance and capacity building to 
                        national and State energy partnerships, 
                        including industry and labor 
                        representatives.
                  [(B) National energy training partnership 
                grants.--
                          [(i) In general.--Under the program 
                        established under paragraph (1), the 
                        Secretary shall award National Energy 
                        Training Partnerships Grants on a 
                        competitive basis to eligible entities 
                        to enable such entities to carry out 
                        training that leads to economic self-
                        sufficiency and to develop an energy 
                        efficiency and renewable energy 
                        industries workforce. Grants shall be 
                        awarded under this subparagraph so as 
                        to ensure geographic diversity with at 
                        least 2 grants awarded to entities 
                        located in each of the 4 Petroleum 
                        Administration for Defense Districts 
                        with no subdistricts, and at least 1 
                        grant awarded to an entity located in 
                        each of the subdistricts of the 
                        Petroleum Administration for Defense 
                        District with subdistricts.
                          [(ii) Eligibility.--To be eligible to 
                        receive a grant under clause (i), an 
                        entity shall be a nonprofit partnership 
                        that--
                                  [(I) includes the equal 
                                participation of industry, 
                                including public or private 
                                employers, and labor 
                                organizations, including joint 
                                labor-management training 
                                programs, and may include 
                                workforce investment boards, 
                                community-based organizations, 
                                qualified service and 
                                conservation corps, educational 
                                institutions, small businesses, 
                                cooperatives, State and local 
                                veterans agencies, and veterans 
                                service organizations; and
                                  [(II) demonstrates--
                                          [(aa) experience in 
                                        implementing and 
                                        operating worker skills 
                                        training and education 
                                        programs;
                                          [(bb) the ability to 
                                        identify and involve in 
                                        training programs 
                                        carried out under this 
                                        grant, target 
                                        populations of 
                                        individuals who would 
                                        benefit from training 
                                        and be actively 
                                        involved in activities 
                                        related to energy 
                                        efficiency and 
                                        renewable energy 
                                        industries; and
                                          [(cc) the ability to 
                                        help individuals 
                                        achieve economic self-
                                        sufficiency.
                          [(iii) Priority.--Priority shall be 
                        given to partnerships which leverage 
                        additional public and private resources 
                        to fund training programs, including 
                        cash or in-kind matches from 
                        participating employers.
                  [(C) State labor market research, 
                information, and labor exchange research 
                program.--
                          [(i) In general.--Under the program 
                        established under paragraph (1), the 
                        Secretary shall award competitive 
                        grants to States to enable such States 
                        to administer labor market and labor 
                        exchange information programs that 
                        include the implementation of the 
                        activities described in clause (ii), in 
                        coordination with the one-stop delivery 
                        system.
                          [(ii) Activities.--A State shall use 
                        amounts awarded under a grant under 
                        this subparagraph to provide funding to 
                        the State agency that administers the 
                        Wagner-Peyser Act and State 
                        unemployment compensation programs to 
                        carry out the following activities 
                        using State agency merit staff:
                                  [(I) The identification of 
                                job openings in the renewable 
                                energy and energy efficiency 
                                sector.
                                  [(II) The administration of 
                                skill and aptitude testing and 
                                assessment for workers.
                                  [(III) The counseling, case 
                                management, and referral of 
                                qualified job seekers to 
                                openings and training programs, 
                                including energy efficiency and 
                                renewable energy training 
                                programs.
                  [(D) State energy training partnership 
                program.--
                          [(i) In general.--Under the program 
                        established under paragraph (1), the 
                        Secretary shall award competitive 
                        grants to States to enable such States 
                        to administer renewable energy and 
                        energy efficiency workforce development 
                        programs that include the 
                        implementation of the activities 
                        described in clause (ii).
                          [(ii) Partnerships.--A State shall 
                        use amounts awarded under a grant under 
                        this subparagraph to award competitive 
                        grants to eligible State Energy Sector 
                        Partnerships to enable such 
                        Partnerships to coordinate with 
                        existing apprenticeship and labor 
                        management training programs and 
                        implement training programs that lead 
                        to the economic self-sufficiency of 
                        trainees.
                          [(iii) Eligibility.--To be eligible 
                        to receive a grant under this 
                        subparagraph, a State Energy Sector 
                        Partnership shall--
                                  [(I) consist of nonprofit 
                                organizations that include 
                                equal participation from 
                                industry, including public or 
                                private nonprofit employers, 
                                and labor organizations, 
                                including joint labor-
                                management training programs, 
                                and may include representatives 
                                from local governments, the 
                                workforce investment system, 
                                including one-stop career 
                                centers, community based 
                                organizations, qualified 
                                service and conservation corps, 
                                community colleges, and other 
                                post-secondary institutions, 
                                small businesses, cooperatives, 
                                State and local veterans 
                                agencies, and veterans service 
                                organizations;
                                  [(II) demonstrate experience 
                                in implementing and operating 
                                worker skills training and 
                                education programs; and
                                  [(III) demonstrate the 
                                ability to identify and involve 
                                in training programs, target 
                                populations of workers who 
                                would benefit from training and 
                                be actively involved in 
                                activities related to energy 
                                efficiency and renewable energy 
                                industries.
                          [(iv) Priority.--In awarding grants 
                        under this subparagraph, the Secretary 
                        shall give priority to States that 
                        demonstrate that activities under the 
                        grant--
                                  [(I) meet national energy 
                                policies associated with energy 
                                efficiency, renewable energy, 
                                and the reduction of emissions 
                                of greenhouse gases;
                                  [(II) meet State energy 
                                policies associated with energy 
                                efficiency, renewable energy, 
                                and the reduction of emissions 
                                of greenhouse gases; and
                                  [(III) leverage additional 
                                public and private resources to 
                                fund training programs, 
                                including cash or in-kind 
                                matches from participating 
                                employers.
                          [(v) Coordination.--A grantee under 
                        this subparagraph shall coordinate 
                        activities carried out under the grant 
                        with existing other appropriate 
                        training programs, including 
                        apprenticeship and labor management 
                        training programs, including such 
                        activities referenced in paragraph 
                        (3)(A), and implement training programs 
                        that lead to the economic self-
                        sufficiency of trainees.
                  [(E) Pathways out of poverty demonstration 
                program.--
                          [(i) In general.--Under the program 
                        established under paragraph (1), the 
                        Secretary shall award competitive 
                        grants of sufficient size to eligible 
                        entities to enable such entities to 
                        carry out training that leads to 
                        economic self-sufficiency. The 
                        Secretary shall give priority to 
                        entities that serve individuals in 
                        families with income of less than 200 
                        percent of the sufficiency standard for 
                        the local areas where the training is 
                        conducted that specifies, as defined by 
                        the State, or where such standard is 
                        not established, the income needs of 
                        families, by family size, the number 
                        and ages of children in the family, and 
                        sub-State geographical considerations. 
                        Grants shall be awarded to ensure 
                        geographic diversity.
                          [(ii) Eligible entities.--To be 
                        eligible to receive a grant an entity 
                        shall be a partnership that--
                                  [(I) includes community-based 
                                nonprofit organizations, 
                                educational institutions with 
                                expertise in serving low-income 
                                adults or youth, public or 
                                private employers from the 
                                industry sectors described in 
                                paragraph (1)(B)(ii), and labor 
                                organizations representing 
                                workers in such industry 
                                sectors;
                                  [(II) demonstrates a record 
                                of successful experience in 
                                implementing and operating 
                                worker skills training and 
                                education programs;
                                  [(III) coordinates 
                                activities, where appropriate, 
                                with the workforce investment 
                                system; and
                                  [(IV) demonstrates the 
                                ability to recruit individuals 
                                for training and to support 
                                such individuals to successful 
                                completion in training programs 
                                carried out under this grant, 
                                targeting populations of 
                                workers who are or will be 
                                engaged in activities related 
                                to energy efficiency and 
                                renewable energy industries.
                          [(iii) Priorities.--In awarding 
                        grants under this paragraph, the 
                        Secretary shall give priority to 
                        applicants that--
                                  [(I) target programs to 
                                benefit low-income workers, 
                                unemployed youth and adults, 
                                high school dropouts, or other 
                                underserved sectors of the 
                                workforce within areas of high 
                                poverty;
                                  [(II) ensure that supportive 
                                services are integrated with 
                                education and training, and 
                                delivered by organizations with 
                                direct access to and experience 
                                with targeted populations;
                                  [(III) leverage additional 
                                public and private resources to 
                                fund training programs, 
                                including cash or in-kind 
                                matches from participating 
                                employers;
                                  [(IV) involve employers and 
                                labor organizations in the 
                                determination of relevant 
                                skills and competencies and 
                                ensure that the certificates or 
                                credentials that result from 
                                the training are employer-
                                recognized;
                                  [(V) deliver courses at 
                                alternative times (such as 
                                evening and weekend programs) 
                                and locations most convenient 
                                and accessible to participants 
                                and link adult remedial 
                                education with occupational 
                                skills training; and
                                  [(VI) demonstrate substantial 
                                experience in administering 
                                local, municipal, State, 
                                Federal, foundation, or private 
                                entity grants.
                          [(iv) Data collection.--Grantees 
                        shall collect and report the following 
                        information:
                                  [(I) The number of 
                                participants.
                                  [(II) The demographic 
                                characteristics of 
                                participants, including race, 
                                gender, age, parenting status, 
                                participation in other Federal 
                                programs, education and 
                                literacy level at entry, 
                                significant barriers to 
                                employment (such as limited 
                                English proficiency, criminal 
                                record, addiction or mental 
                                health problem requiring 
                                treatment, or mental 
                                disability).
                                  [(III) The services received 
                                by participants, including 
                                training, education, and 
                                supportive services.
                                  [(IV) The amount of program 
                                spending per participant.
                                  [(V) Program completion 
                                rates.
                                  [(VI) Factors determined as 
                                significantly interfering with 
                                program participation or 
                                completion.
                                  [(VII) The rate of job 
                                placement and the rate of 
                                employment retention after 1 
                                year.
                                  [(VIII) The average wage at 
                                placement, including any 
                                benefits, and the rate of 
                                average wage increase after 1 
                                year.
                                  [(IX) Any post-employment 
                                supportive services provided.
                        The Secretary shall assist grantees in 
                        the collection of data under this 
                        clause by making available, where 
                        practicable, low-cost means of tracking 
                        the labor market outcomes of 
                        participants, and by providing 
                        standardized reporting forms, where 
                        appropriate.
          [(3) Activities.--
                  [(A) In general.--Activities to be carried 
                out under a program authorized by subparagraph 
                (B), (D), or (E) of paragraph (2) shall be 
                coordinated with existing systems or providers, 
                as appropriate. Such activities may include--
                          [(i) occupational skills training, 
                        including curriculum development, on-
                        the-job training, and classroom 
                        training;
                          [(ii) safety and health training;
                          [(iii) the provision of basic skills, 
                        literacy, GED, English as a second 
                        language, and job readiness training;
                          [(iv) individual referral and tuition 
                        assistance for a community college 
                        training program, or any training 
                        program leading to an industry-
                        recognized certificate;
                          [(v) internship programs in fields 
                        related to energy efficiency and 
                        renewable energy;
                          [(vi) customized training in 
                        conjunction with an existing registered 
                        apprenticeship program or labor-
                        management partnership;
                          [(vii) incumbent worker and career 
                        ladder training and skill upgrading and 
                        retraining;
                          [(viii) the implementation of 
                        transitional jobs strategies; and
                          [(ix) the provision of supportive 
                        services.
                  [(B) Outreach activities.--In addition to the 
                activities authorized under subparagraph (A), 
                activities authorized for programs under 
                subparagraph (E) of paragraph (2) may include 
                the provision of outreach, recruitment, career 
                guidance, and case management services.
          [(4) Worker protections and nondiscrimination 
        requirements.--
                  [(A) Application of wia.--The provisions of 
                sections 181 and 188 of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2931 and 
                2938) shall apply to all programs carried out 
                with assistance under this subsection.
                  [(B) Consultation with labor organizations.--
                If a labor organization represents a 
                substantial number of workers who are engaged 
                in similar work or training in an area that is 
                the same as the area that is proposed to be 
                funded under this Act, the labor organization 
                shall be provided an opportunity to be 
                consulted and to submit comments in regard to 
                such a proposal.
          [(5) Performance measures.--
                  [(A) In general.--The Secretary shall 
                negotiate and reach agreement with the eligible 
                entities that receive grants and assistance 
                under this section on performance measures for 
                the indicators of performance referred to in 
                subparagraphs (A) and (B) of section 136(b)(2) 
                that will be used to evaluate the performance 
                of the eligible entity in carrying out the 
                activities described in subsection (e)(2). Each 
                performance measure shall consist of such an 
                indicator of performance, and a performance 
                level referred to in subparagraph (B).
                  [(B) Performance levels.--The Secretary shall 
                negotiate and reach agreement with the eligible 
                entity regarding the levels of performance 
                expected to be achieved by the eligible entity 
                on the indicators of performance.
          [(6) Report.--
                  [(A) Status report.--Not later than 18 months 
                after the date of enactment of the Green Jobs 
                Act of 2007, the Secretary shall transmit a 
                report to the Senate Committee on Energy and 
                Natural Resources, the Senate Committee on 
                Health, Education, Labor, and Pensions, the 
                House Committee on Education and Labor, and the 
                House Committee on Energy and Commerce on the 
                training program established by this 
                subsection. The report shall include a 
                description of the entities receiving funding 
                and the activities carried out by such 
                entities.
                  [(B) Evaluation.--Not later than 3 years 
                after the date of enactment of such Act, the 
                Secretary shall transmit to the Senate 
                Committee on Energy and Natural Resources, the 
                Senate Committee on Health, Education, Labor, 
                and Pensions, the House Committee on Education 
                and Labor, and the House Committee on Energy 
                and Commerce an assessment of such program and 
                an evaluation of the activities carried out by 
                entities receiving funding from such program.
          [(7) Definition.--As used in this subsection, the 
        term ``renewable energy'' has the meaning given such 
        term in section 203(b)(2) of the Energy Policy Act of 
        2005 (Public Law 109-58).
          [(8) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection, $125,000,000 for each fiscal year, of 
        which--
                  [(A) not to exceed 20 percent of the amount 
                appropriated in each such fiscal year shall be 
                made available for, and shall be equally 
                divided between, national labor market research 
                and information under paragraph (2)(A) and 
                State labor market information and labor 
                exchange research under paragraph (2)(C), and 
                not more than 2 percent of such amount shall be 
                for the evaluation and report required under 
                paragraph (4);
                  [(B) 20 percent shall be dedicated to 
                Pathways Out of Poverty Demonstration Programs 
                under paragraph (2)(E); and
                  [(C) the remainder shall be divided equally 
                between National Energy Partnership Training 
                Grants under paragraph (2)(B) and State energy 
                training partnership grants under paragraph 
                (2)(D).]

SEC. 172. EVALUATIONS.

  (a) Programs and Activities Carried Out Under This Title.--
For the purpose of improving the management and effectiveness 
of programs and activities carried out under this title, [the 
Secretary shall provide for the continuing evaluation of the 
programs and activities, including those programs and 
activities carried out under section 171] the Secretary, 
through grants, contracts, or cooperative agreements, shall 
conduct, at least once every 5 years, an independent evaluation 
of the programs and activities funded under this Act. Such 
evaluations shall address--
          (1) * * *

           *       *       *       *       *       *       *

          [(4) the impact of the programs and activities on the 
        community and participants involved;]
          (4) the impact of receiving services and not 
        receiving services under such programs and activities 
        on the community, businesses, and individuals;

           *       *       *       *       *       *       *

  [(c) Techniques.--Evaluations conducted under this section 
shall utilize appropriate methodology and research designs, 
including the use of control groups chosen by scientific random 
assignment methodologies. The Secretary shall conduct as least 
1 multisite control group evaluation under this section by the 
end of fiscal year 2005.]
  (c) Techniques.--Evaluations conducted under this section 
shall utilize appropriate and rigorous methodology and research 
designs, including the use of control groups chosen by 
scientific random assignment methodologies, quasi-experimental 
methods, impact analysis and the use of administrative data. 
The Secretary shall conduct an impact analysis, as described in 
subsection (a)(4), of the formula grant program under subtitle 
B not later than 2014, and thereafter shall conduct such an 
analysis not less than once every four years.

           *       *       *       *       *       *       *

  (e) Reports to Congress.--Not later than 30 days after the 
completion of such a draft report, the Secretary shall transmit 
the draft report to the Committee on Education and the 
Workforce of the House of Representatives and [the Committee on 
Labor and Human Resources of the Senate] the Committee on 
Health, Education, Labor, and Pensions of the Senate. Not later 
than 60 days after the completion of such a final report, the 
Secretary shall transmit the final report to such committees of 
the Congress.

           *       *       *       *       *       *       *

  (g) Public Availability.--The results of the evaluations 
conducted under this section shall be made publicly available, 
including by posting such results on the Department's website.

[SEC. 173. NATIONAL EMERGENCY GRANTS.

  [(a) In General.--The Secretary is authorized to award 
national emergency grants in a timely manner--
          [(1) to an entity described in subsection (c) to 
        provide employment and training assistance to workers 
        affected by major economic dislocations, such as plant 
        closures, mass layoffs, or closures and realignments of 
        military installations;
          [(2) to provide assistance to the Governor of any 
        State within the boundaries of which is an area that 
        has suffered an emergency or a major disaster as 
        defined in paragraphs (1) and (2), respectively, of 
        section 102 of The Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5122 (1) and 
        (2)) (referred to in this section as the ``disaster 
        area'') to provide disaster relief employment in the 
        area;
          [(3) to provide additional assistance to a State or 
        local board for eligible dislocated workers in a case 
        in which the State or local board has expended the 
        funds provided under this section to carry out 
        activities described in paragraphs (1) and (2) and can 
        demonstrate the need for additional funds to provide 
        appropriate services for such workers, in accordance 
        with requirements prescribed by the Secretary; and
          [(4) from funds appropriated under section 174(c)--
                  [(A) to a State or entity (as defined in 
                section 173(c)(1)(B)) to carry out subsection 
                (f), including providing assistance to eligible 
                individuals; and
                  [(B) to a State or entity (as so defined) to 
                carry out subsection (g), including providing 
                assistance to eligible individuals.
  [(b) Administration.--The Secretary shall designate a 
dislocated worker office to coordinate the functions of the 
Secretary under this title relating to employment and training 
activities for dislocated workers, including activities carried 
out under the national emergency grants.
  [(c) Employment and Training Assistance Requirements.--
          [(1) Grant recipient eligibility.--
                  [(A) Application.--To be eligible to receive 
                a grant under subsection (a)(1), an entity 
                shall submit an application to the Secretary at 
                such time, in such manner, and containing such 
                information as the Secretary may require.
                  [(B) Eligible entity.--In this paragraph, the 
                term ``entity'' means a State, a local board, 
                an entity described in section 166(c), entities 
                determined to be eligible by the Governor of 
                the State involved, and other entities that 
                demonstrate to the Secretary the capability to 
                effectively respond to the circumstances 
                relating to particular dislocations.
          [(2) Participant eligibility.--
                  [(A) In general.--In order to be eligible to 
                receive employment and training assistance 
                under a national emergency grant awarded 
                pursuant to subsection (a)(1), an individual 
                shall be--
                          [(i) a dislocated worker;
                          [(ii) a civilian employee of the 
                        Department of Defense or the Department 
                        of Energy employed at a military 
                        installation that is being closed, or 
                        that will undergo realignment, within 
                        the next 24 months after the date of 
                        the determination of eligibility;
                          [(iii) an individual who is employed 
                        in a nonmanagerial position with a 
                        Department of Defense contractor, who 
                        is determined by the Secretary of 
                        Defense to be at-risk of termination 
                        from employment as a result of 
                        reductions in defense expenditures, and 
                        whose employer is converting operations 
                        from defense to nondefense applications 
                        in order to prevent worker layoffs; or
                          [(iv) a member of the Armed Forces 
                        who--
                                  [(I) was on active duty or 
                                full-time National Guard duty;
                                  [(II)(aa) is involuntarily 
                                separated (as defined in 
                                section 1141 of title 10, 
                                United States Code) from active 
                                duty or full-time National 
                                Guard duty; or
                                  [(bb) is separated from 
                                active duty or full-time 
                                National Guard duty pursuant to 
                                a special separation benefits 
                                program under section 1174a of 
                                title 10, United States Code, 
                                or the voluntary separation 
                                incentive program under section 
                                1175 of that title;
                                  [(III) is not entitled to 
                                retired or retained pay 
                                incident to the separation 
                                described in subclause (II); 
                                and
                                  [(IV) applies for such 
                                employment and training 
                                assistance before the end of 
                                the 180-day period beginning on 
                                the date of that separation.
                  [(B) Retraining assistance.--The individuals 
                described in subparagraph (A)(iii) shall be 
                eligible for retraining assistance to upgrade 
                skills by obtaining marketable skills needed to 
                support the conversion described in 
                subparagraph (A)(iii).
                  [(C) Additional requirements.--The Secretary 
                shall establish and publish additional 
                requirements related to eligibility for 
                employment and training assistance under the 
                national emergency grants to ensure effective 
                use of the funds available for this purpose.
                  [(D) Definitions.--In this paragraph, the 
                terms ``military institution'' and 
                ``realignment'' have the meanings given the 
                terms in section 2910 of the Defense Base 
                Closure and Realignment Act of 1990 (Public Law 
                101-510; 10 U.S.C. 2687 note).
  [(d) Disaster Relief Employment Assistance Requirements.--
          [(1) In general.--Funds made available under 
        subsection (a)(2)--
                  [(A) shall be used to provide disaster relief 
                employment on projects that provide food, 
                clothing, shelter, and other humanitarian 
                assistance for disaster victims, and projects 
                regarding demolition, cleaning, repair, 
                renovation, and reconstruction of damaged and 
                destroyed structures, facilities, and lands 
                located within the disaster area;
                  [(B) may be expended through public and 
                private agencies and organizations engaged in 
                such projects; and
                  [(C) may be expended to provide employment 
                and training activities.
          [(2) Eligibility.--An individual shall be eligible to 
        be offered disaster relief employment under subsection 
        (a)(2) if such individual is a dislocated worker, is a 
        long-term unemployed individual, or is temporarily or 
        permanently laid off as a consequence of the disaster.
          [(3) Limitations on disaster relief employment.--No 
        individual shall be employed under subsection (a)(2) 
        for more than 6 months for work related to recovery 
        from a single natural disaster.
  [(e) Additional Assistance.--
          [(1) In general.--From the amount appropriated and 
        made available to carry out this section for any 
        program year, the Secretary shall use not more than 
        $15,000,000 to make grants to not more than 8 States to 
        provide employment and training activities under 
        section 134, in accordance with subtitle B.
          [(2) Eligible states.--The Secretary shall make a 
        grant under paragraph (1) to a State for a program year 
        if--
                  [(A)(i) the amount of the allotment that 
                would be made to the State for the program year 
                under the formula specified in section 202(a) 
                of the Job Training Partnership Act, as in 
                effect on July 1, 1998; is greater than
                  [(ii) the amount of the allotment that would 
                be made to the State for the program year under 
                the formula specified in section 132(b)(1)(B); 
                and
                  [(B) the State is 1 of the 8 States with the 
                greatest quotient obtained by dividing--
                          [(i) the amount described in 
                        subparagraph (A)(i); by
                          [(ii) the amount described in 
                        subparagraph (A)(ii).
          [(3) Amount of grants.--Subject to paragraph (1), the 
        amount of the grant made under paragraph (1) to a State 
        for a program year shall be based on the difference 
        between--
                  [(A) the amount of the allotment that would 
                be made to the State for the program year under 
                the formula specified in section 202(a) of the 
                Job Training Partnership Act, as in effect on 
                July 1, 1998; and
                  [(B) the amount of the allotment that would 
                be made to the State for the program year under 
                the formula specified in section 132(b)(1)(B).
          [(4) Allocation of funds.--A State that receives a 
        grant under paragraph (1) for a program year--
                  [(A) shall allocate funds made available 
                through the grant on the basis of the formula 
                used by the State to allocate funds within the 
                State for that program year under--
                          [(i) paragraph (2)(A) or (3) of 
                        section 133(b); or
                          [(ii) paragraph (2)(B) of section 
                        133(b); and
                  [(B) shall use the funds in the same manner 
                as the State uses other funds allocated under 
                the appropriate paragraph of section 133(b).
  [(f) Health Insurance Coverage Assistance for Eligible 
Individuals.--
          [(1) Use of funds.--
                  [(A) Health insurance coverage for eligible 
                individuals in order to obtain qualified health 
                insurance that has guaranteed issue and other 
                consumer protections.--Funds made available to 
                a State or entity under paragraph (4)(A) of 
                subsection (a) may be used to provide an 
                eligible individual described in paragraph 
                (4)(C) and such individual's qualifying family 
                members with health insurance coverage for the 
                3-month period that immediately precedes the 
                first eligible coverage month (as defined in 
                section 35(b) of the Internal Revenue Code of 
                1986) in which such eligible individual and 
                such individual's qualifying family members are 
                covered by qualified health insurance that 
                meets the requirements described in clauses (i) 
                through (v) of section 35(e)(2)(A) of the 
                Internal Revenue Code of 1986 (or such longer 
                minimum period as is necessary in order for 
                such eligible individual and such individual's 
                qualifying family members to be covered by 
                qualified health insurance that meets such 
                requirements).
                  [(B) Additional uses.--Funds made available 
                to a State or entity under paragraph (4)(A) of 
                subsection (a) may be used by the State or 
                entity for the following:
                          [(i) Health insurance coverage.--To 
                        assist an eligible individual and such 
                        individual's qualifying family members 
                        with enrolling in health insurance 
                        coverage and qualified health insurance 
                        or paying premiums for such coverage or 
                        insurance.
                          [(ii) Administrative expenses and 
                        start-up expenses to establish group 
                        health plan coverage options for 
                        qualified health insurance.--To pay the 
                        administrative expenses related to the 
                        enrollment of eligible individuals and 
                        such individuals' qualifying family 
                        members in health insurance coverage 
                        and qualified health insurance, 
                        including--
                                  [(I) eligibility verification 
                                activities;
                                  [(II) the notification of 
                                eligible individuals of 
                                available health insurance and 
                                qualified health insurance 
                                options;
                                  [(III) processing qualified 
                                health insurance costs credit 
                                eligibility certificates 
                                provided for under section 7527 
                                of the Internal Revenue Code of 
                                1986;
                                  [(IV) providing assistance to 
                                eligible individuals in 
                                enrolling in health insurance 
                                coverage and qualified health 
                                insurance;
                                  [(V) the development or 
                                installation of necessary data 
                                management systems; and
                                  [(VI) any other expenses 
                                determined appropriate by the 
                                Secretary, including start-up 
                                costs and on going 
                                administrative expenses, in 
                                order for the State to treat 
                                the coverage described in 
                                subparagraphs (C) through (H) 
                                of section 35(e)(1) of the 
                                Internal Revenue Code of 1986 
                                as qualified health insurance 
                                under that section.
                          [(iii) Outreach.--To pay for outreach 
                        to eligible individuals to inform such 
                        individuals of available health 
                        insurance and qualified health 
                        insurance options, including outreach 
                        consisting of notice to eligible 
                        individuals of such options made 
                        available after the date of enactment 
                        of this clause and direct assistance to 
                        help potentially eligible individuals 
                        and such individual's qualifying family 
                        members qualify and remain eligible for 
                        the credit established under section 35 
                        of the Internal Revenue Code of 1986 
                        and advance payment of such credit 
                        under section 7527 of such Code.
                          [(iv) Bridge funding.--To assist 
                        potentially eligible individuals to 
                        purchase qualified health insurance 
                        coverage prior to issuance of a 
                        qualified health insurance costs credit 
                        eligibility certificate under section 
                        7527 of the Internal Revenue Code of 
                        1986 and commencement of advance 
                        payment, and receipt of expedited 
                        payment, under subsections (a) and (e), 
                        respectively, of that section.
                  [(C) Rule of construction.--The inclusion of 
                a permitted use under this paragraph shall not 
                be construed as prohibiting a similar use of 
                funds permitted under subsection (g).
          [(2) Qualified health insurance.--For purposes of 
        this subsection and subsection (g), the term 
        ``qualified health insurance'' has the meaning given 
        that term in section 35(e) of the Internal Revenue Code 
        of 1986.
          [(3) Availability of funds.--
                  [(A) Expedited procedures.--With respect to 
                applications submitted by States or entities 
                for grants under this subsection, the Secretary 
                shall--
                          [(i) not later than 15 days after the 
                        date on which the Secretary receives a 
                        completed application from a State or 
                        entity, notify the State or entity of 
                        the determination of the Secretary with 
                        respect to the approval or disapproval 
                        of such application;
                          [(ii) in the case of an application 
                        of a State or other entity that is 
                        disapproved by the Secretary, provide 
                        technical assistance, at the request of 
                        the State or entity, in a timely manner 
                        to enable the State or entity to submit 
                        an approved application; and
                          [(iii) develop procedures to expedite 
                        the provision of funds to States and 
                        entities with approved applications.
                  [(B) Availability and distribution of 
                funds.--The Secretary shall ensure that funds 
                made available under section 174(c)(1)(A) to 
                carry out subsection (a)(4)(A) are available to 
                States and entities throughout the period 
                described in section 174(c)(2)(A).
          [(4) Eligible individual defined.--For purposes of 
        this subsection and subsection (g), the term ``eligible 
        individual'' means--
                  [(A) an eligible TAA recipient (as defined in 
                section 35(c)(2) of the Internal Revenue Code 
                of 1986),
                  [(B) an eligible alternative TAA recipient 
                (as defined in section 35(c)(3) of the Internal 
                Revenue Code of 1986), and
                  [(C) an eligible PBGC pension recipient (as 
                defined in section 35(c)(4) of the Internal 
                Revenue Code of 1986),
        who, as of the first day of the month, does not have 
        other specified coverage and is not imprisoned under 
        Federal, State, or local authority.
          [(5) Qualifying family member defined.--For purposes 
        of this subsection and subsection (g)--
                  [(A) In general.--The term ``qualifying 
                family member'' means--
                          [(i) the eligible individual's 
                        spouse, and
                          [(ii) any dependent of the eligible 
                        individual with respect to whom the 
                        individual is entitled to a deduction 
                        under section 151(c) of the Internal 
                        Revenue Code of 1986.
                Such term does not include any individual who 
                has other specified coverage.
                  [(B) Special dependency test in case of 
                divorced parents, etc.--If paragraph (2) or (4) 
                of section 152(e) of such Code applies to any 
                child with respect to any calendar year, in the 
                case of any taxable year beginning in such 
                calendar year, such child shall be treated as 
                described in subparagraph (A)(ii) with respect 
                to the custodial parent (within the meaning of 
                section 152(e)(1) of such Code) and not with 
                respect to the noncustodial parent.
          [(6) State.--For purposes of this subsection and 
        subsection (g), the term ``State'' includes an entity 
        as defined in subsection (c)(1)(B).
          [(7) Other specified coverage.--For purposes of this 
        subsection, an individual has other specified coverage 
        for any month if, as of the first day of such month--
                  [(A) Subsidized coverage.--
                          [(i) In general.--Such individual is 
                        covered under any insurance which 
                        constitutes medical care (except 
                        insurance substantially all of the 
                        coverage of which is of excepted 
                        benefits described in section 9832(c) 
                        of the Internal Revenue Code of 1986) 
                        under any health plan maintained by any 
                        employer (or former employer) of the 
                        taxpayer or the taxpayer's spouse and 
                        at least 50 percent of the cost of such 
                        coverage (determined under section 
                        4980B of such Code) is paid or incurred 
                        by the employer.
                          [(ii) Eligible alternative taa 
                        recipients.--In the case of an eligible 
                        alternative TAA recipient (as defined 
                        in section 35(c)(3) of the Internal 
                        Revenue Code of 1986), such individual 
                        is either--
                                  [(I) eligible for coverage 
                                under any qualified health 
                                insurance (other than insurance 
                                described in clause (i), (ii), 
                                or (vi) of paragraph (2)(A)) 
                                under which at least 50 percent 
                                of the cost of coverage 
                                (determined under section 
                                4980B(f)(4) of such Code) is 
                                paid or incurred by an employer 
                                (or former employer) of the 
                                taxpayer or the taxpayer's 
                                spouse, or
                                  [(II) covered under any such 
                                qualified health insurance 
                                under which any portion of the 
                                cost of coverage (as so 
                                determined) is paid or incurred 
                                by an employer (or former 
                                employer) of the taxpayer or 
                                the taxpayer's spouse.
                          [(iii) Treatment of cafeteria 
                        plans.--For purposes of clauses (i) and 
                        (ii), the cost of coverage shall be 
                        treated as paid or incurred by an 
                        employer to the extent the coverage is 
                        in lieu of a right to receive cash or 
                        other qualified benefits under a 
                        cafeteria plan (as defined in section 
                        125(d) of the Internal Revenue Code of 
                        1986).
                  [(B) Coverage under medicare, medicaid, or 
                schip.--Such individual--
                          [(i) is entitled to benefits under 
                        part A of title XVIII of the Social 
                        Security Act or is enrolled under part 
                        B of such title, or
                          [(ii) is enrolled in the program 
                        under title XIX or XXI of such Act 
                        (other than under section 1928 of such 
                        Act).
                  [(C) Certain other coverage.--Such 
                individual--
                          [(i) is enrolled in a health benefits 
                        plan under chapter 89 of title 5, 
                        United States Code, or
                          [(ii) is entitled to receive benefits 
                        under chapter 55 of title 10, United 
                        States Code.
          [(8) Continued qualification of family members after 
        certain events.--
                  [(A) Medicare eligibility.--In the case of 
                any month which would be an eligible coverage 
                month with respect to an eligible individual 
                but for paragraph (7)(B)(i), such month shall 
                be treated as an eligible coverage month with 
                respect to such eligible individual solely for 
                purposes of determining the eligibility of 
                qualifying family members of such individual 
                under this subsection. This subparagraph shall 
                only apply with respect to the first 24 months 
                after such eligible individual is first 
                entitled to the benefits described in paragraph 
                (7)(B)(i).
                  [(B) Divorce.--In the case of the 
                finalization of a divorce between an eligible 
                individual and such individual's spouse, such 
                spouse shall be treated as an eligible 
                individual for purposes of this subsection for 
                a period of 24 months beginning with the date 
                of such finalization, except that the only 
                qualifying family members who may be taken into 
                account with respect to such spouse are those 
                individuals who were qualifying family members 
                immediately before such finalization.
                  [(C) Death.--In the case of the death of an 
                eligible individual--
                          [(i) any spouse of such individual 
                        (determined at the time of such death) 
                        shall be treated as an eligible 
                        individual for purposes of this 
                        subsection for a period of 24 months 
                        beginning with the date of such death, 
                        except that the only qualifying family 
                        members who may be taken into account 
                        with respect to such spouse are those 
                        individuals who were qualifying family 
                        members immediately before such death, 
                        and
                          [(ii) any individual who was a 
                        qualifying family member of the 
                        decedent immediately before such death 
                        shall be treated as an eligible 
                        individual for purposes this subsection 
                        for a period of 24 months beginning 
                        with the date of such death, except 
                        that no qualifying family members may 
                        be taken into account with respect to 
                        such individual.
  [(g) Interim Health Insurance Coverage and Other 
Assistance.--
          [(1) In general.--Funds made available to a State or 
        entity under paragraph (4)(B) of subsection (a) may be 
        used by the State or entity to provide assistance and 
        support services to eligible individuals, including 
        health care coverage to the extent provided under 
        subsection (f)(1)(A), transportation, child care, 
        dependent care, and income assistance.
          [(2) Income support.--With respect to any income 
        assistance provided to an eligible individual with such 
        funds, such assistance shall supplement and not 
        supplant other income support or assistance provided 
        under chapter 2 of title II of the Trade Act of 1974 
        (19 U.S.C. 2271 et seq.) (as in effect on the day 
        before the effective date of the Trade Act of 2002) or 
        the unemployment compensation laws of the State where 
        the eligible individual resides.
          [(3) Health insurance coverage.--With respect to any 
        assistance provided to an eligible individual with such 
        funds in enrolling in qualified health insurance, the 
        following rules shall apply:
                  [(A) The State or entity may provide 
                assistance in obtaining such coverage to the 
                eligible individual and to such individual's 
                qualifying family members.
                  [(B) Such assistance shall supplement and may 
                not supplant any other State or local funds 
                used to provide health care coverage and may 
                not be included in determining the amount of 
                non-Federal contributions required under any 
                program.
          [(4) Availability of funds.--
                  [(A) Expedited procedures.--With respect to 
                applications submitted by States or entities 
                for grants under this subsection, the Secretary 
                shall--
                          [(i) not later than 15 days after the 
                        date on which the Secretary receives a 
                        completed application from a State or 
                        entity, notify the State or entity of 
                        the determination of the Secretary with 
                        respect to the approval or disapproval 
                        of such application;
                          [(ii) in the case of an application 
                        of a State or entity that is 
                        disapproved by the Secretary, provide 
                        technical assistance, at the request of 
                        the State or entity, in a timely manner 
                        to enable the State or entity to submit 
                        an approved application; and
                          [(iii) develop procedures to expedite 
                        the provision of funds to States and 
                        entities with approved applications.
                  [(B) Availability and distribution of 
                funds.--The Secretary shall ensure that funds 
                made available under section 174(c)(1)(B) to 
                carry out subsection (a)(4)(B) are available to 
                States and entities throughout the period 
                described in section 174(c)(2)(B).
          [(5) Inclusion of certain individuals as eligible 
        individuals.--For purposes of this subsection, the term 
        ``eligible individual'' includes an individual who is a 
        member of a group of workers certified after April 1, 
        2002, under chapter 2 of title II of the Trade Act of 
        1974 (as in effect on the day before the effective date 
        of the Trade Act of 2002) and is participating in the 
        trade adjustment allowance program under such chapter 
        (as so in effect) or who would be determined to be 
        participating in such program under such chapter (as so 
        in effect) if such chapter were applied without regard 
        to section 231(a)(3)(B) of the Trade Act of 1974 (as so 
        in effect).

[SEC. 173A. YOUTHBUILD PROGRAM.

  [(a) Statement of Purpose.--The purposes of this section 
are--
          [(1) to enable disadvantaged youth to obtain the 
        education and employment skills necessary to achieve 
        economic self-sufficiency in occupations in demand and 
        postsecondary education and training opportunities;
          [(2) to provide disadvantaged youth with 
        opportunities for meaningful work and service to their 
        communities;
          [(3) to foster the development of employment and 
        leadership skills and commitment to community 
        development among youth in low-income communities; and
          [(4) to expand the supply of permanent affordable 
        housing for homeless individuals and low-income 
        families by utilizing the energies and talents of 
        disadvantaged youth.
  [(b) Definitions.--In this section:
          [(1) Adjusted income.--The term ``adjusted income'' 
        has the meaning given the term in section 3(b) of the 
        United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
          [(2) Applicant.--The term ``applicant'' means an 
        eligible entity that has submitted an application under 
        subsection (c).
          [(3) Eligible entity.--The term ``eligible entity'' 
        means a public or private nonprofit agency or 
        organization (including a consortium of such agencies 
        or organizations), including--
                  [(A) a community-based organization;
                  [(B) a faith-based organization;
                  [(C) an entity carrying out activities under 
                this title, such as a local board;
                  [(D) a community action agency;
                  [(E) a State or local housing development 
                agency;
                  [(F) an Indian tribe or other agency 
                primarily serving Indians;
                  [(G) a community development corporation;
                  [(H) a State or local youth service or 
                conservation corps; and
                  [(I) any other entity eligible to provide 
                education or employment training under a 
                Federal program (other than the program carried 
                out under this section).
          [(4) Homeless individual.--The term ``homeless 
        individual'' has the meaning given the term in section 
        103 of the McKinney-Vento Homeless Assistance Act (42 
        U.S.C. 11302).
          [(5) Housing development agency.--The term ``housing 
        development agency'' means any agency of a State or 
        local government, or any private nonprofit 
        organization, that is engaged in providing housing for 
        homeless individuals or low-income families.
          [(6) Income.--The term ``income'' has the meaning 
        given the term in section 3(b) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)).
          [(7) Indian; indian tribe.--The terms ``Indian'' and 
        ``Indian tribe'' have the meanings given such terms in 
        section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b).
          [(8) Individual of limited english proficiency.--The 
        term ``individual of limited English proficiency'' 
        means an eligible participant under this section who 
        meets the criteria set forth in section 203(10) of the 
        Adult Education and Family Literacy Act (20 U.S.C. 
        9202(10)).
          [(9) Low-income family.--The term ``low-income 
        family'' means a family described in section 3(b)(2) of 
        the United States Housing Act of 1937 (42 U.S.C. 
        1437a(b)(2)).
          [(10) Qualified national nonprofit agency.--The term 
        ``qualified national nonprofit agency'' means a 
        nonprofit agency that--
                  [(A) has significant national experience 
                providing services consisting of training, 
                information, technical assistance, and data 
                management to YouthBuild programs or similar 
                projects; and
                  [(B) has the capacity to provide those 
                services.
          [(11) Registered apprenticeship program.--The term 
        ``registered apprenticeship program'' means an 
        apprenticeship program--
                  [(A) registered under the Act of August 16, 
                1937 (commonly known as the ``National 
                Apprenticeship Act''; 50 Stat. 664, chapter 
                663; 20 U.S.C. 50 et seq.); and
                  [(B) that meets such other criteria as may be 
                established by the Secretary under this 
                section.
          [(12) Transitional housing.--The term ``transitional 
        housing'' means housing provided for the purpose of 
        facilitating the movement of homeless individuals to 
        independent living within a reasonable amount of time. 
        The term includes housing primarily designed to serve 
        deinstitutionalized homeless individuals and other 
        homeless individuals who are individuals with 
        disabilities or members of families with children.
          [(13) Youthbuild program.--The term ``YouthBuild 
        program'' means any program that receives assistance 
        under this section and provides disadvantaged youth 
        with opportunities for employment, education, 
        leadership development, and training through the 
        rehabilitation or construction of housing for homeless 
        individuals and low-income families, and of public 
        facilities.
  [(c) YouthBuild Grants.--
          [(1) Amounts of grants.--The Secretary is authorized 
        to make grants to applicants for the purpose of 
        carrying out YouthBuild programs approved under this 
        section.
          [(2) Eligible activities.--An entity that receives a 
        grant under this subsection shall use the funds made 
        available through the grant to carry out a YouthBuild 
        program, which may include the following activities:
                  [(A) Education and workforce investment 
                activities including--
                          [(i) work experience and skills 
                        training (coordinated, to the maximum 
                        extent feasible, with preapprenticeship 
                        and registered apprenticeship programs) 
                        in the rehabilitation and construction 
                        activities described in subparagraphs 
                        (B) and (C);
                          [(ii) occupational skills training;
                          [(iii) other paid and unpaid work 
                        experiences, including internships and 
                        job shadowing;
                          [(iv) services and activities 
                        designed to meet the educational needs 
                        of participants, including--
                                  [(I) basic skills instruction 
                                and remedial education;
                                  [(II) language instruction 
                                educational programs for 
                                individuals with limited 
                                English proficiency;
                                  [(III) secondary education 
                                services and activities, 
                                including tutoring, study 
                                skills training, and dropout 
                                prevention activities, designed 
                                to lead to the attainment of a 
                                secondary school diploma, 
                                General Education Development 
                                (GED) credential, or other 
                                State-recognized equivalent 
                                (including recognized 
                                alternative standards for 
                                individuals with disabilities);
                                  [(IV) counseling and 
                                assistance in obtaining 
                                postsecondary education and 
                                required financial aid; and
                                  [(V) alternative secondary 
                                school services;
                          [(v) counseling services and related 
                        activities, such as comprehensive 
                        guidance and counseling on drug and 
                        alcohol abuse and referral;
                          [(vi) activities designed to develop 
                        employment and leadership skills, which 
                        may include community service and peer-
                        centered activities encouraging 
                        responsibility and other positive 
                        social behaviors, and activities 
                        related to youth policy committees that 
                        participate in decision-making related 
                        to the program;
                          [(vii) supportive services and 
                        provision of need-based stipends 
                        necessary to enable individuals to 
                        participate in the program and 
                        supportive services to assist 
                        individuals, for a period not to exceed 
                        12 months after the completion of 
                        training, in obtaining or retaining 
                        employment, or applying for and 
                        transitioning to postsecondary 
                        education; and
                          [(viii) job search and assistance.
                  [(B) Supervision and training for 
                participants in the rehabilitation or 
                construction of housing, including residential 
                housing for homeless individuals or low-income 
                families, or transitional housing for homeless 
                individuals.
                  [(C) Supervision and training for 
                participants in the rehabilitation or 
                construction of community and other public 
                facilities, except that not more than 10 
                percent of funds appropriated to carry out this 
                section may be used for such supervision and 
                training.
                  [(D) Payment of administrative costs of the 
                applicant, except that not more than 15 percent 
                of the amount of assistance provided under this 
                subsection to the grant recipient may be used 
                for such costs.
                  [(E) Adult mentoring.
                  [(F) Provision of wages, stipends, or 
                benefits to participants in the program.
                  [(G) Ongoing training and technical 
                assistance that are related to developing and 
                carrying out the program.
                  [(H) Follow-up services.
          [(3) Application.--
                  [(A) Form and procedure.--To be qualified to 
                receive a grant under this subsection, an 
                eligible entity shall submit an application at 
                such time, in such manner, and containing such 
                information as the Secretary may require.
                  [(B) Minimum requirements.--The Secretary 
                shall require that the application contain, at 
                a minimum--
                          [(i) labor market information for the 
                        labor market area where the proposed 
                        program will be implemented, including 
                        both current data (as of the date of 
                        submission of the application) and 
                        projections on career opportunities in 
                        growing industries;
                          [(ii) a request for the grant, 
                        specifying the amount of the grant 
                        requested and its proposed uses;
                          [(iii) a description of the applicant 
                        and a statement of its qualifications, 
                        including a description of the 
                        applicant's relationship with local 
                        boards, one-stop operators, local 
                        unions, entities carrying out 
                        registered apprenticeship programs, 
                        other community groups, and employers, 
                        and the applicant's past experience, if 
                        any, with rehabilitation or 
                        construction of housing or public 
                        facilities, and with youth education 
                        and employment training programs;
                          [(iv) a description of the proposed 
                        site for the proposed program;
                          [(v) a description of the educational 
                        and job training activities, work 
                        opportunities, postsecondary education 
                        and training opportunities, and other 
                        services that will be provided to 
                        participants, and how those activities, 
                        opportunities, and services will 
                        prepare youth for employment in 
                        occupations in demand in the labor 
                        market area described in clause (i);
                          [(vi) a description of the proposed 
                        rehabilitation or construction 
                        activities to be undertaken under the 
                        grant and the anticipated schedule for 
                        carrying out such activities;
                          [(vii) a description of the manner in 
                        which eligible youth will be recruited 
                        and selected as participants, including 
                        a description of arrangements that will 
                        be made with local boards, one-stop 
                        operators, community- and faith-based 
                        organizations, State educational 
                        agencies or local educational agencies 
                        (including agencies of Indian tribes), 
                        public assistance agencies, the courts 
                        of jurisdiction, agencies operating 
                        shelters for homeless individuals and 
                        other agencies that serve youth who are 
                        homeless individuals, foster care 
                        agencies, and other appropriate public 
                        and private agencies;
                          [(viii) a description of the special 
                        outreach efforts that will be 
                        undertaken to recruit eligible young 
                        women (including young women with 
                        dependent children) as participants;
                          [(ix) a description of the specific 
                        role of employers in the proposed 
                        program, such as their role in 
                        developing the proposed program and 
                        assisting in service provision and in 
                        placement activities;
                          [(x) a description of how the 
                        proposed program will be coordinated 
                        with other Federal, State, and local 
                        activities and activities conducted by 
                        Indian tribes, such as local workforce 
                        investment activities, vocational 
                        education programs, adult and language 
                        instruction educational programs, 
                        activities conducted by public schools, 
                        activities, conducted by community 
                        colleges, national service programs, 
                        and other job training provided with 
                        funds available under this title;
                          [(xi) assurances that there will be a 
                        sufficient number of adequately trained 
                        supervisory personnel in the proposed 
                        program;
                          [(xii) a description of results to be 
                        achieved with respect to common 
                        indicators of performance for youth and 
                        lifelong learning, as identified by the 
                        Secretary;
                          [(xiii) a description of the 
                        applicant's relationship with local 
                        building trade unions regarding their 
                        involvement in training to be provided 
                        through the proposed program, the 
                        relationship of the proposed program to 
                        established registered apprenticeship 
                        programs and employers, and the ability 
                        of the applicant to grant industry-
                        recognized skill certification through 
                        the program;
                          [(xiv) a description of activities 
                        that will be undertaken to develop the 
                        leadership skills of participants;
                          [(xv) a detailed budget and a 
                        description of the system of fiscal 
                        controls, and auditing and 
                        accountability procedures, that will be 
                        used to ensure fiscal soundness for the 
                        proposed program;
                          [(xvi) a description of the 
                        commitments for any additional 
                        resources (in addition to the funds 
                        made available through the grant) to be 
                        made available to the proposed program 
                        from--
                                  [(I) the applicant;
                                  [(II) recipients of other 
                                Federal, State or local housing 
                                and community development 
                                assistance who will sponsor any 
                                part of the rehabilitation, 
                                construction, operation and 
                                maintenance, or other housing 
                                and community development 
                                activities undertaken as part 
                                of the proposed program; or
                                  [(III) entities carrying out 
                                other Federal, State, or local 
                                activities or activities 
                                conducted by Indian tribes, 
                                including vocational education 
                                programs, adult and language 
                                instruction educational 
                                programs, and job training 
                                provided with funds available 
                                under this title;
                          [(xvii) information identifying, and 
                        a description of, the financing 
                        proposed for any--
                                  [(I) rehabilitation of the 
                                property involved;
                                  [(II) acquisition of the 
                                property; or
                                  [(III) construction of the 
                                property;
                          [(xviii) information identifying, and 
                        a description of, the entity that will 
                        operate and manage the property;
                          [(xix) information identifying, and a 
                        description of, the data collection 
                        systems to be used;
                          [(xx) a certification, by a public 
                        official responsible for the housing 
                        strategy for the State or unit of 
                        general local government within which 
                        the proposed program is located, that 
                        the proposed program is consistent with 
                        the housing strategy; and
                          [(xxi) a certification that the 
                        applicant will comply with the 
                        requirements of the Fair Housing Act 
                        (42 U.S.C. 3601 et seq.) and will 
                        affirmatively further fair housing.
          [(4) Selection criteria.--For an applicant to be 
        eligible to receive a grant under this subsection, the 
        applicant and the applicant's proposed program shall 
        meet such selection criteria as the Secretary shall 
        establish under this section, which shall include 
        criteria relating to--
                  [(A) the qualifications or potential 
                capabilities of an applicant;
                  [(B) an applicant's potential for developing 
                a successful YouthBuild program;
                  [(C) the need for an applicant's proposed 
                program, as determined by the degree of 
                economic distress of the community from which 
                participants would be recruited (measured by 
                indicators such as poverty, youth unemployment, 
                and the number of individuals who have dropped 
                out of secondary school) and of the community 
                in which the housing and public facilities 
                proposed to be rehabilitated or constructed is 
                located (measured by indicators such as 
                incidence of homelessness, shortage of 
                affordable housing, and poverty);
                  [(D) the commitment of an applicant to 
                providing skills training, leadership 
                development, and education to participants;
                  [(E) the focus of a proposed program on 
                preparing youth for occupations in demand or 
                postsecondary education and training 
                opportunities;
                  [(F) the extent of an applicant's 
                coordination of activities to be carried out 
                through the proposed program with local boards, 
                one-stop operators, and one-stop partners 
                participating in the operation of the one-stop 
                delivery system involved, or the extent of the 
                applicant's good faith efforts in achieving 
                such coordination;
                  [(G) the extent of the applicant's 
                coordination of activities with public 
                education, criminal justice, housing and 
                community development, national service, or 
                postsecondary education or other systems that 
                relate to the goals of the proposed program;
                  [(H) the extent of an applicant's 
                coordination of activities with employers in 
                the local area involved;
                  [(I) the extent to which a proposed program 
                provides for inclusion of tenants who were 
                previously homeless individuals in the rental 
                housing provided through the program;
                  [(J) the commitment of additional resources 
                (in addition to the funds made available 
                through the grant) to a proposed program by--
                          [(i) an applicant;
                          [(ii) recipients of other Federal, 
                        State, or local housing and community 
                        development assistance who will sponsor 
                        any part of the rehabilitation, 
                        construction, operation and 
                        maintenance, or other housing and 
                        community development activities 
                        undertaken as part of the proposed 
                        program; or
                          [(iii) entities carrying out other 
                        Federal, State, or local activities or 
                        activities conducted by Indian tribes, 
                        including vocational education 
                        programs, adult and language 
                        instruction educational programs, and 
                        job training provided with funds 
                        available under this title;
                  [(K) the applicant's potential to serve 
                different regions, including rural areas and 
                States that have not previously received grants 
                for YouthBuild programs; and
                  [(L) such other factors as the Secretary 
                determines to be appropriate for purposes of 
                carrying out the proposed program in an 
                effective and efficient manner.
          [(5) Approval.--To the extent practicable, the 
        Secretary shall notify each applicant, not later than 5 
        months after the date of receipt of the application by 
        the Secretary, whether the application is approved or 
        not approved.
  [(d) Use of Housing Units.--Residential housing units 
rehabilitated or constructed using funds made available under 
subsection (c) shall be available solely--
          [(1) for rental by, or sale to, homeless individuals 
        or low-income families; or
          [(2) for use as transitional or permanent housing, 
        for the purpose of assisting in the movement of 
        homeless individuals to independent living.
  [(e) Additional Program Requirements.--
          [(1) Eligible participants.--
                  [(A) In general.--Except as provided in 
                subparagraph (B), an individual may participate 
                in a YouthBuild program only if such individual 
                is--
                          [(i) not less than age 16 and not 
                        more than age 24, on the date of 
                        enrollment;
                          [(ii) a member of a low-income 
                        family, a youth in foster care 
                        (including youth aging out of foster 
                        care), a youth offender, a youth who is 
                        an individual with a disability, a 
                        child of incarcerated parents, or a 
                        migrant youth; and
                          [(iii) a school dropout.
                  [(B) Exception for individuals not meeting 
                income or educational need requirements.--Not 
                more than 25 percent of the participants in 
                such program may be individuals who do not meet 
                the requirements of clause (ii) or (iii) of 
                subparagraph (A), but who--
                          [(i) are basic skills deficient, 
                        despite attainment of a secondary 
                        school diploma, General Education 
                        Development (GED) credential, or other 
                        State-recognized equivalent (including 
                        recognized alternative standards for 
                        individuals with disabilities); or
                          [(ii) have been referred by a local 
                        secondary school for participation in a 
                        YouthBuild program leading to the 
                        attainment of a secondary school 
                        diploma.
          [(2) Participation limitation.--An eligible 
        individual selected for participation in a YouthBuild 
        program shall be offered full-time participation in the 
        program for a period of not less than 6 months and not 
        more than 24 months.
          [(3) Minimum time devoted to educational services and 
        activities.--A YouthBuild program receiving assistance 
        under subsection (c) shall be structured so that 
        participants in the program are offered--
                  [(A) education and related services and 
                activities designed to meet educational needs, 
                such as those specified in clauses (iv) through 
                (vii) of subsection (c)(2)(A), during at least 
                50 percent of the time during which the 
                participants participate in the program; and
                  [(B) work and skill development activities 
                such as those specified in clauses (i), (ii), 
                (iii), and (viii) of subsection (c)(2)(A), 
                during at least 40 percent of the time during 
                which the participants participate in the 
                program.
          [(4) Authority restriction.--No provision of this 
        section may be construed to authorize any agency, 
        officer, or employee of the United States to exercise 
        any direction, supervision, or control over the 
        curriculum, program of instruction, administration, or 
        personnel of any educational institution (including a 
        school) or school system, or over the selection of 
        library resources, textbooks, or other printed or 
        published instructional materials by any educational 
        institution or school system.
          [(5) State and local standards.--All educational 
        programs and activities supported with funds provided 
        under subsection (c) shall be consistent with 
        applicable State and local educational standards. 
        Standards and procedures for the programs and 
        activities that relate to awarding academic credit for 
        and certifying educational attainment in such programs 
        and activities shall be consistent with applicable 
        State and local educational standards.
  [(f) Management and Technical Assistance.--
          [(1) Secretary assistance.--The Secretary may enter 
        into contracts with 1 or more entities to provide 
        assistance to the Secretary in the management, 
        supervision, and coordination of the program carried 
        out under this section.
          [(2) Technical assistance.--
                  [(A) Contracts and grants.--The Secretary 
                shall enter into contracts with or make grants 
                to 1 or more qualified national nonprofit 
                agencies, in order to provide training, 
                information, technical assistance, and data 
                management to recipients of grants under 
                subsection (c).
                  [(B) Reservation of funds.--Of the amounts 
                available under subsection (h) to carry out 
                this section for a fiscal year, the Secretary 
                shall reserve 5 percent to carry out 
                subparagraph (A).
          [(3) Capacity building grants.--
                  [(A) In general.--In each fiscal year, the 
                Secretary may use not more than 3 percent of 
                the amounts available under subsection (h) to 
                award grants to 1 or more qualified national 
                nonprofit agencies to pay for the Federal share 
                of the cost of capacity building activities.
                  [(B) Federal share.--The Federal share of the 
                cost described in subparagraph (A) shall be 25 
                percent. The non-Federal share shall be 
                provided from private sources.
  [(g) Subgrants and Contracts.--Each recipient of a grant 
under subsection (c) to carry out a YouthBuild program shall 
provide the services and activities described in this section 
directly or through subgrants, contracts, or other arrangements 
with local educational agencies, postsecondary educational 
institutions, State or local housing development agencies, 
other public agencies, including agencies of Indian tribes, or 
private organizations.
  [(h) Authorization of Appropriations.--
          [(1) In general.--There are authorized to be 
        appropriated for each of fiscal years 2007 through 2012 
        such sums as may be necessary to carry out this 
        section.
          [(2) Fiscal year.--Notwithstanding section 189(g), 
        appropriations for any fiscal year for programs and 
        activities carried out under this section shall be 
        available for obligation only on the basis of a fiscal 
        year.

[SEC. 174. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Native American Programs; Migrant and Seasonal 
Farmworker Programs; Veterans' Workforce Investment Programs.--
          [(1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated to carry out sections 166 
        through 168 such sums as may be necessary for each of 
        the fiscal years 1999 through 2003.
          [(2) Reservations.--Of the amount appropriated 
        pursuant to the authorization of appropriations under 
        paragraph (1) for a fiscal year, the Secretary shall--
                  [(A) reserve not less than $55,000,000 for 
                carrying out section 166;
                  [(B) reserve not less than $70,000,000 for 
                carrying out section 167; and
                  [(C) reserve not less than $7,300,000 for 
                carrying out section 168.
  [(b) Technical Assistance; Demonstration and Pilot Projects; 
Evaluations; Incentive Grants.--
          [(1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated to carry out sections 170 
        through 172 and section 503 such sums as may be 
        necessary for each of the fiscal years 1999 through 
        2003.
          [(2) Reservations.--Of the amount appropriated 
        pursuant to the authorization of appropriations under 
        paragraph (1) for a fiscal year, the Secretary shall--
                  [(A)(i) for fiscal year 1999, reserve up to 
                40 percent for carrying out section 170 (other 
                than subsection (b) of such section);
                  [(ii) for fiscal year 2000, reserve up to 25 
                percent for carrying out section 170 (other 
                than subsection (b) of such section); and
                  [(iii) for each of the fiscal years 2001 
                through 2003, reserve up to 20 percent for 
                carrying out section 170 (other than subsection 
                (b) of such section);
                  [(B)(i) for fiscal year 1999, reserve not 
                less than 50 percent for carrying out section 
                171; and
                  [(ii) for each of the fiscal years 2000 
                through 2003, reserve not less than 45 percent 
                for carrying out section 171;
                  [(C)(i) for fiscal year 1999, reserve not 
                less than 10 percent for carrying out section 
                172; and
                  [(ii) for each of the fiscal years 2000 
                through 2003, reserve not less than 10 percent 
                for carrying out section 172; and
                  [(D)(i) for fiscal year 1999, reserve no 
                funds for carrying out section 503;
                  [(ii) for fiscal year 2000, reserve up to 20 
                percent for carrying out section 503; and
                  [(iii) for each of the fiscal years 2001 
                through 2003, reserve up to 25 percent for 
                carrying out section 503.
  [(c) Assistance for Eligible Workers.--
          [(1) Appropriations.--There are authorized to be 
        appropriated and appropriated--
                  [(A) to carry out subsection (a)(4)(A) of 
                section 173--
                          [(i) $10,000,000 for fiscal year 
                        2002; and
                          [(ii) $150,000,000 for the period of 
                        fiscal years 2009 through 2010; and
                  [(B) to carry out subsection (a)(4)(B) of 
                section 173, $50,000,000 for fiscal year 2002.
          [(2) Authorization of appropriations for subsequent 
        fiscal years.--There are authorized to be 
        appropriated--
                  [(A) to carry out subsection (a)(4)(A) of 
                section 173, $60,000,000 for each of fiscal 
                years 2003 through 2007; and
                  [(B) to carry out subsection (a)(4)(B) of 
                section 173--
                          [(i) $100,000,000 for fiscal year 
                        2003; and
                          [(ii) $50,000,000 for fiscal year 
                        2004.
          [(3) Availability of funds.--Funds appropriated 
        pursuant to--
                  [(A) paragraphs (1)(A) and (2)(A) for each 
                fiscal year shall, notwithstanding section 
                189(g), remain available for obligation during 
                the pendency of any outstanding claim under the 
                Trade Act of 1974, as amended by the Trade Act 
                of 2002; and
                  [(B) paragraph (1)(B) and (2)(B), for each 
                fiscal year shall, notwithstanding section 
                189(g), remain available during the period that 
                begins on the date of enactment of the Trade 
                Act of 2002 and ends on September 30, 2004.]

SEC. 175. MILITARY TRANSITIONAL ASSISTANCE.

  (a) In General.--The Secretary, in consultation with the 
Secretaries of Defense, Homeland Security, and Veterans 
Affairs, shall establish and carry out a program to furnish 
counseling, assistance in identifying employment and training 
opportunities, help in obtaining such employment and training, 
and other related information and services to members of the 
armed forces under the jurisdiction of the Secretary concerned 
who are being separated from active duty and the spouses of 
such members. Such services shall be provided to a member 
within the time periods provided under paragraph (3) of section 
1142(a) of title 10, United States Code, except that the 
Secretary concerned shall not provide pre-separation counseling 
to a member described in paragraph (4)(A) of such section.
  (b) Elements of Program.--In establishing and carrying out a 
program under this section, the Secretary shall--
          (1) provide information concerning employment and 
        training assistance, including--
                  (A) labor market information;
                  (B) civilian work place requirements and 
                employment opportunities;
                  (C) instruction in resume preparation; and
                  (D) job analysis techniques, job search 
                techniques, and job interview techniques.
          (2) in providing information under paragraph (1), use 
        experience obtained from implementation of the pilot 
        program established under section 408 of Public Law 
        101-237;
          (3) provide information concerning Federal, State, 
        and local programs, and programs of military and 
        veterans' service organizations, that may be of 
        assistance to such members after separation from the 
        armed forces, including, as appropriate, the 
        information and services to be provided under section 
        1142 of title 10, United States Code;
          (4) inform such members that the Department of 
        Defense and the Department of Homeland Security are 
        required under section 1143(a) of title 10, United 
        States Code, to provide proper certification or 
        verification of job skills and experience acquired 
        while on active duty that may have application to 
        employment in the civilian sector for use in seeking 
        civilian employment and in obtaining job search skills;
          (5) provide information and other assistance to such 
        members in their efforts to obtain loans and grants 
        from the Small Business Administration and other 
        Federal, State, and local agencies;
          (6) provide information about the geographic areas in 
        which such members will relocate after separation from 
        the armed forces, including, to the degree possible, 
        information about employment opportunities, the labor 
        market, and the cost of living in those areas 
        (including, to the extent practicable, the cost and 
        availability of housing, child care, education, and 
        medical and dental care);
          (7) work with military and veterans service 
        organizations and other appropriate organizations in 
        promoting and publicizing job fairs for such members; 
        and
          (8) provide information regarding the public and 
        community service jobs program carried out under 
        section 1143a of title 10, United States Code.
  (c) Participation.--(1) Except as provided in paragraph (2), 
the Secretary shall enter into an agreement with the Secretary 
of Defense and the Secretary of Homeland Security, to require 
the participation in the program carried out under this section 
of the members eligible for assistance under the program.
  (2) The Secretary may, under regulations the Secretary of 
Defense and the Secretary of Homeland Security prescribe, waive 
the participation requirement of paragraph (1) with respect 
to--
          (A) such groups or classifications of members as the 
        Secretary determines, after consultation with the 
        Secretary of Defense, Secretary of Homeland Security 
        and the Secretary of Veterans Affairs, for whom 
        participation is not and would not be of assistance to 
        such members based on the Secretaries' articulable 
        justification that there is extraordinarily high reason 
        to believe the exempted members are unlikely to face 
        major readjustment, health care, employment, or other 
        challenges associated with transition to civilian life; 
        and
          (B) individual members possessing specialized skills 
        who, due to unavoidable circumstances, are needed to 
        support a unit's imminent deployment.
  (d) Use of Personnel and Organizations.--In carrying out the 
program established under this section, the Secretaries--
          (1) shall use the veterans employment specialist 
        appointed under section 134(f); and
          (2) may--
                  (A) use other employment service personnel 
                funded by the Department of Labor to the extent 
                that the Secretary of Labor determines that 
                such use will not significantly interfere with 
                the provision of services or other benefits to 
                eligible veterans and other eligible recipients 
                of such services or benefits;
                  (B) use military and civilian personnel of 
                the Department of Defense and the Department of 
                Homeland Security;
                  (C) use personnel of the Veterans Benefits 
                Administration of the Department of Veterans 
                Affairs and other appropriate personnel of that 
                Department;
                  (D) use representatives of military and 
                veterans service organizations;
                  (E) enter into contracts with public 
                entities;
                  (F) enter into contracts with private 
                entities, particularly with qualified private 
                entities that have experience with instructing 
                members of the armed forces eligible for 
                assistance under the program carried out under 
                this section on--
                          (i) private sector culture, resume 
                        writing, career networking, and 
                        training on job search technologies;
                          (ii) academic readiness and 
                        educational opportunities; or
                          (iii) other relevant topics; and
                  (G) take other necessary action to develop 
                and furnish the information and services to be 
                provided under this section.
  (e) Participation in Apprenticeship Programs.--As part of the 
program carried out under this section, the Secretary, in 
consultation with the Secretary of Defense and the Secretary of 
Homeland Security, may permit a member of the armed forces 
eligible for assistance under the program to participate in an 
apprenticeship program registered under the Act of August 16, 
1937 (commonly known as the ``National Apprenticeship Act''; 50 
Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), or a pre-
apprenticeship program that provides credit toward a program 
registered under such Act, that provides members of the armed 
forces with the education, training, and services necessary to 
transition to meaningful employment that leads to economic 
self-sufficiency.

                       Subtitle E--Administration

SEC. 181. REQUIREMENTS AND RESTRICTIONS.

  (a) * * *
  (b) Labor Standards.--
          (1) * * *

           *       *       *       *       *       *       *

          (6) Opportunity to submit comments.--Interested 
        members of the public[, including representatives of 
        businesses and of labor organizations], shall be 
        provided an opportunity to submit comments to the 
        Secretary with respect to programs and activities 
        proposed to be funded under subtitle B.

           *       *       *       *       *       *       *

  (c) Grievance Procedure.--
          (1) * * *
          (2) Investigation.--
                  (A) In general.--The Secretary [shall] may 
                investigate an allegation of a violation 
                described in paragraph (1) if--
                          (i) * * *

           *       *       *       *       *       *       *

  (e) Limitation on Use of Funds.--No funds available under 
this title shall be used for employment generating activities, 
economic development activities, investment in revolving loan 
funds, capitalization of businesses, investment in contract 
bidding resource centers, and similar activities that are not 
directly related to [training for] the entry into employment, 
retention in employment, or increases in earnings of eligible 
individuals under this title. No funds available [under 
subtitle B] this Act shall be used for foreign travel.

           *       *       *       *       *       *       *

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

SEC. 182. PROMPT ALLOCATION OF FUNDS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Requirement for Funds Distributed by Formula.--All funds 
required to be allotted under section [127 or] 132 shall be 
allotted within 45 days after the date of enactment of the Act 
appropriating the funds, except that, if such funds are 
appropriated in advance as authorized by section 189(g), such 
funds shall be allotted or allocated not later than the March 
31 preceding the program year for which such funds are to be 
available for obligation.

           *       *       *       *       *       *       *

  (e) Availability of Funds.--Funds shall be made available 
under [sections 128 and 133] section 133 for a local area not 
later than 30 days after the date the funds are made available 
to the Governor involved, under section [127 or] 132 (as the 
case may be), or 7 days after the date the local plan for the 
area is approved, whichever is later.

           *       *       *       *       *       *       *

SEC. 184. FISCAL CONTROLS; SANCTIONS.

  (a) Establishment of Fiscal Controls by States.--
          (1) * * *
          (2) Cost principles.--
                  (A) * * *
                  [(B) Exception.--The funds made available to 
                a State for administration of statewide 
                workforce investment activities in accordance 
                with section 134(a)(3)(B) shall be allocable to 
                the overall administration of workforce 
                investment activities, but need not be 
                specifically allocable to--
                          [(i) the administration of adult 
                        employment and training activities;
                          [(ii) the administration of 
                        dislocated worker employment and 
                        training activities; oradministration 
                        of youth activities.]

           *       *       *       *       *       *       *

SEC. 185. REPORTS; RECORDKEEPING; INVESTIGATIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Accessibility of Reports.--Each State, each local board, 
and each recipient (other than a subrecipient, subgrantee, or 
contractor of a recipient) receiving funds under this title--
          (1) * * *
          (2) shall prescribe and maintain comparable 
        management information systems, in accordance with 
        guidelines that shall be prescribed by the Secretary, 
        designed to facilitate the uniform compilation, cross 
        tabulation, and analysis of programmatic, participant, 
        and financial data, on statewide, local area, and other 
        appropriate bases, necessary for reporting, monitoring, 
        and evaluating purposes, including data necessary to 
        comply with section 188; [and]
          (3) shall monitor the performance of providers in 
        complying with the terms of grants, contracts, or other 
        agreements made pursuant to this title[.]; and
          (4) shall have the option to submit or disseminate 
        electronically any reports, records, plans, or any 
        other data that are required to be collected or 
        disseminated under this title.

           *       *       *       *       *       *       *

  (e) Quarterly Financial Reports.--
          (1) * * *
          (2) Additional requirement.--Each State shall submit 
        to the Secretary, and the Secretary shall submit to the 
        Committee on Education and the Workforce of the House 
        of Representatives and the Committee on Health, 
        Education, Labor, and Pensions of the Senate, on a 
        quarterly basis, a summary of the reports submitted to 
        the Governor pursuant to paragraph (1).

           *       *       *       *       *       *       *

SEC. 189. ADMINISTRATIVE PROVISIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (g) Program Year.--
          [(1) In general.--
                  [(A) Program year.--Except as provided in 
                subparagraph (B) and section 173A, 
                appropriations for any fiscal year for programs 
                and activities carried out under this title 
                shall be available for obligation only on the 
                basis of a program year. The program year shall 
                begin on July 1 in the fiscal year for which 
                the appropriation is made.
                  [(B) Youth activities.--The Secretary may 
                make available for obligation, beginning April 
                1 of any fiscal year, funds appropriated for 
                such fiscal year to carry out youth activities 
                under subtitle B.]
          (1) In general.--Appropriations for any fiscal year 
        for programs and activities carried out under this 
        title shall be available for obligation only on the 
        basis of a program year. The program year shall begin 
        on July 1 in the fiscal year for which the 
        appropriation is made.
          (2) Availability.--Funds obligated for any program 
        year for a program or activity carried out under this 
        title may be expended by [each State] each recipient 
        receiving such funds during that program year and the 2 
        succeeding program years. Funds obligated for any 
        program year for a program or activity carried out 
        under section [171 or] 172 shall remain available until 
        expended. Funds received by local areas from States 
        under this title during a program year may be expended 
        during that program year and the succeeding program 
        year. No amount of the funds described in this 
        paragraph shall be deobligated on account of a rate of 
        expenditure that is consistent with a State plan, an 
        operating plan described in section 151, or a plan, 
        grant agreement, contract, application, or other 
        agreement described in subtitle D, as appropriate.

           *       *       *       *       *       *       *

  (i) Waivers and Special Rules.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) General waivers of statutory or regulatory 
        requirements.--
                  (A) General authority.--Notwithstanding any 
                other provision of law, the Secretary may waive 
                for a State, or a local area in a State, 
                pursuant to a request submitted by the Governor 
                of the State (in consultation with appropriate 
                local elected officials) that meets the 
                [requirements of subparagraph (B)--
                          [(i) any of the statutory or 
                        regulatory requirements of subtitle B] 
                        requirements of subparagraph (B) or 
                        (D), any of the statutory or regulatory 
                        requirements of subtitle B or this 
                        subtitle (except for requirements 
                        relating to wage and labor standards, 
                        including nondisplacement protections, 
                        worker rights, participation and 
                        protection of workers and participants, 
                        grievance procedures and judicial 
                        review, nondiscrimination, allocation 
                        of funds to local areas, eligibility of 
                        providers or participants, the 
                        establishment and functions of local 
                        areas and local boards, and procedures 
                        for review and approval of plans); 
                        [and].
                          [(ii) any of the statutory or 
                        regulatory requirements of sections 8 
                        through 10 of the Wagner-Peyser Act (29 
                        U.S.C. 49g through 49i) (excluding 
                        requirements relating to the provision 
                        of services to unemployment insurance 
                        claimants and veterans, and 
                        requirements relating to universal 
                        access to basic labor exchange services 
                        without cost to jobseekers).]

           *       *       *       *       *       *       *

                  (D) Expedited process for extending approved 
                waivers to additional states.--In lieu of the 
                requirements of subparagraphs (B) and (C), the 
                Secretary may establish an expedited procedure 
                for the purpose of extending to additional 
                States the waiver of statutory or regulatory 
                requirements that have been approved for a 
                State pursuant to a request under subparagraph 
                (B). Such procedure shall ensure that the 
                extension of such waivers to additional States 
                are accompanied by appropriate conditions 
                relating the implementation of such waivers.

           *       *       *       *       *       *       *

SEC. 191. STATE LEGISLATIVE AUTHORITY.

  (a) Authority of State Legislature.--Nothing in this title 
shall be interpreted to preclude the enactment of State 
legislation providing for the implementation, [consistent with 
the provisions of this title] consistent with State law and the 
provisions of this title, of the activities assisted under this 
title. Any funds received by a State under this title shall be 
subject to appropriation by the State legislature, [consistent 
with the terms and conditions required under this title] 
consistent with State law and the terms and conditions required 
under this title.

           *       *       *       *       *       *       *

[SEC. 192. WORKFORCE FLEXIBILITY PLANS.

  [(a) Plans.--A State may submit to the Secretary, and the 
Secretary may approve, a workforce flexibility plan under which 
the State is authorized to waive, in accordance with the plan--
          [(1) any of the statutory or regulatory requirements 
        applicable under this title to local areas, pursuant to 
        applications for such waivers from the local areas, 
        except for requirements relating to the basic purposes 
        of this title, wage and labor standards, grievance 
        procedures and judicial review, nondiscrimination, 
        eligibility of participants, allocation of funds to 
        local areas, establishment and functions of local areas 
        and local boards, review and approval of local plans, 
        and worker rights, participation, and protection;
          [(2) any of the statutory or regulatory requirements 
        applicable under sections 8 through 10 of the Wagner-
        Peyser Act (29 U.S.C. 49g through 49i) to the State, 
        except for requirements relating to the provision of 
        services to unemployment insurance claimants and 
        veterans, and to universal access to basic labor 
        exchange services without cost to jobseekers; and
          [(3) any of the statutory or regulatory requirements 
        applicable under the Older Americans Act of 1965 (42 
        U.S.C. 3001 et seq.) to State agencies on aging with 
        respect to activities carried out using funds allotted 
        under section 506(a)(3) of such Act (42 U.S.C. 
        3056d(a)(3)), except for requirements relating to the 
        basic purposes of such Act, wage and labor standards, 
        eligibility of participants in the activities, and 
        standards for agreements.
  [(b) Content of Plans.--A workforce flexibility plan 
implemented by a State under subsection (a) shall include 
descriptions of--
          [(1)(A) the process by which local areas in the State 
        may submit and obtain approval by the State of 
        applications for waivers of requirements applicable 
        under this title; and
          [(B) the requirements described in subparagraph (A) 
        that are likely to be waived by the State under the 
        plan;
          [(2) the requirements applicable under sections 8 
        through 10 of the Wagner-Peyser Act that are proposed 
        to be waived, if any;
          [(3) the requirements applicable under the Older 
        Americans Act of 1965 that are proposed to be waived, 
        if any;
          [(4) the outcomes to be achieved by the waivers 
        described in paragraphs (1) through (3); and
          [(5) other measures to be taken to ensure appropriate 
        accountability for Federal funds in connection with the 
        waivers.
  [(c) Periods.--The Secretary may approve a workforce 
flexibility plan for a period of not more than 5 years.
  [(d) Opportunity for Public Comments.--Prior to submitting a 
workforce flexibility plan to the Secretary for approval, the 
State shall provide to all interested parties and to the 
general public adequate notice and a reasonable opportunity for 
comment on the waiver requests proposed to be implemented 
pursuant to such plan.]

           *       *       *       *       *       *       *

SEC. 194. CONTINUATION OF STATE ACTIVITIES AND POLICIES.

  (a) In General.--Notwithstanding any other provision of this 
title, the Secretary may not deny approval of a State plan for 
a covered State, or an application of a covered State for 
financial assistance, under this title or find a covered State 
(including a State board or Governor), or a local area 
(including a local board or chief elected official) in a 
covered State, in violation of a provision of this title, on 
the basis that--
          (1)(A) the State proposes to allocate or disburse, 
        allocates, or disburses, within the State, funds made 
        available to the State under section [127 or] 132 in 
        accordance with the allocation formula for the type of 
        activities involved, or in accordance with a disbursal 
        procedure or process, used by the State under prior 
        consistent State laws; or
          (B) a local board in the State proposes to disburse, 
        or disburses, within the local area, funds made 
        available to a State under section [127 or] 132 in 
        accordance with a disbursal procedure or process used 
        by a private industry council under prior consistent 
        State law;
          (2) the State proposes to carry out or carries out a 
        State procedure through which local areas use, as 
        fiscal agents for funds made available to the State 
        under section [127 or] 132 and allocated within the 
        State, fiscal agents selected in accordance with a 
        process established under prior consistent State laws;

           *       *       *       *       *       *       *

SEC. 195. GENERAL PROGRAM REQUIREMENTS.

  Except as otherwise provided in this title, the following 
conditions are applicable to all programs under this title:
          (1) * * *

           *       *       *       *       *       *       *

          (7)(A) * * *

           *       *       *       *       *       *       *

          (D) Funds received by a public or private nonprofit 
        entity that are not described in paragraph (B), such as 
        funds privately raised from philanthropic foundations, 
        businesses, or other private entities, shall not be 
        considered to be income under this title and shall not 
        be subject to the requirements of this section.

           *       *       *       *       *       *       *

          (14) Funds provided under this title shall not be 
        used to establish or operate stand-alone fee-for-
        service enterprises that compete with private sector 
        employment agencies within the meaning of section 
        701(c) of the Civil Rights Act of 1964 (42 U.S.C. 
        2000e(c)), except that for purposes of this paragraph, 
        such an enterprise does not include one-stop centers.
          (15) Any report required to be submitted to Congress, 
        or to a Committee of Congress, under this title shall 
        be submitted to both the chairmen and ranking minority 
        members of the Committee on Education and the Workforce 
        of the House of Representatives and the Committee on 
        Health, Education, Labor, and Pensions of the Senate.

SEC. 196. DEPARTMENT STAFF.

  The Secretary shall--
          (1) not later than 60 days after the date of the 
        enactment of the Workforce Investment Improvement Act 
        of 2012--
                  (A) identify the number of Department of 
                Labor employees who work on or administer 
                programs under this Act, as such programs were 
                in effect on the day before such date of 
                enactment; and
                  (B) publish such information on the 
                Department's website;
          (2) not later than 60 days after such date of 
        enactment, identify the number of full-time equivalent 
        employees who work on or administer programs authorized 
        under this Act, as such programs were in effect on the 
        day before such date of enactment, that have been 
        eliminated or consolidated on or after such date; and
          (3) not later than 1 year after such date of 
        enactment--
                  (A) reduce the workforce of the Department of 
                Labor by the number of full-time equivalent 
                employees identified under paragraph (2); and
                  (B) submit to Congress a report on--
                          (i) the number of employees 
                        associated with each program authorized 
                        under this Act and administered by the 
                        Department;
                          (ii) the number of full-time 
                        equivalent employees identified under 
                        paragraph (2); and
                          (iii) how the Secretary reduced the 
                        number of employees at the Department 
                        under subparagraph (A).

           *       *       *       *       *       *       *

                [TITLE II--ADULT EDUCATION AND LITERACY

[SEC. 201. SHORT TITLE.

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

[SEC. 202. PURPOSE.

  [It is the purpose of this title to create a partnership 
among the Federal Government, States, and localities to 
provide, on a voluntary basis, adult education and literacy 
services, in order to--
          [(1) assist adults to become literate and obtain the 
        knowledge and skills necessary for employment and self-
        sufficiency;
          [(2) assist adults who are parents to obtain the 
        educational skills necessary to become full partners in 
        the educational development of their children; and
          [(3) assist adults in the completion of a secondary 
        school education.

[SEC. 203. DEFINITIONS.

  [In this title:
          [(1) Adult education.--The term ``adult education'' 
        means services or instruction below the postsecondary 
        level for individuals--
                  [(A) who have attained 16 years of age;
                  [(B) who are not enrolled or required to be 
                enrolled in secondary school under State law; 
                and
                  [(C) who--
                          [(i) lack sufficient mastery of basic 
                        educational skills to enable the 
                        individuals to function effectively in 
                        society;
                          [(ii) do not have a secondary school 
                        diploma or its recognized equivalent, 
                        and have not achieved an equivalent 
                        level of education; or
                          [(iii) are unable to speak, read, or 
                        write the English language.
          [(2) Adult education and literacy activities.--The 
        term ``adult education and literacy activities'' means 
        activities described in section 231(b).
          [(3) Educational service agency.--The term 
        ``educational service agency'' means a regional public 
        multiservice agency authorized by State statute to 
        develop and manage a service or program, and to provide 
        the service or program to a local educational agency.
          [(4) Eligible agency.--The term ``eligible agency'' 
        means the sole entity or agency in a State or an 
        outlying area responsible for administering or 
        supervising policy for adult education and literacy in 
        the State or outlying area, respectively, consistent 
        with the law of the State or outlying area, 
        respectively.
          [(5) Eligible provider.--The term ``eligible 
        provider'' means--
                  [(A) a local educational agency;
                  [(B) a community-based organization of 
                demonstrated effectiveness;
                  [(C) a volunteer literacy organization of 
                demonstrated effectiveness;
                  [(D) an institution of higher education;
                  [(E) a public or private nonprofit agency;
                  [(F) a library;
                  [(G) a public housing authority;
                  [(H) a nonprofit institution that is not 
                described in any of subparagraphs (A) through 
                (G) and has the ability to provide literacy 
                services to adults and families; and
                  [(I) a consortium of the agencies, 
                organizations, institutions, libraries, or 
                authorities described in any of subparagraphs 
                (A) through (H).
          [(6) English literacy program.--The term ``English 
        literacy program'' means a program of instruction 
        designed to help individuals of limited English 
        proficiency achieve competence in the English language.
          [(7) Family literacy services.--The term ``family 
        literacy services'' means services that are of 
        sufficient intensity in terms of hours, and of 
        sufficient duration, to make sustainable changes in a 
        family, and that integrate all of the following 
        activities:
                  [(A) Interactive literacy activities between 
                parents and their children.
                  [(B) Training for parents regarding how to be 
                the primary teacher for their children and full 
                partners in the education of their children.
                  [(C) Parent literacy training that leads to 
                economic self-sufficiency.
                  [(D) An age-appropriate education to prepare 
                children for success in school and life 
                experiences.
          [(8) Governor.--The term ``Governor'' means the chief 
        executive officer of a State or outlying area.
          [(9) Individual with a disability.--
                  [(A) In general.--The term ``individual with 
                a disability'' means an individual with any 
                disability (as defined in section 3 of the 
                Americans with Disabilities Act of 1990 (42 
                U.S.C. 12102)).
                  [(B) Individuals with disabilities.--The term 
                ``individuals with disabilities'' means more 
                than one individual with a disability.
          [(10) Individual of limited english proficiency.--The 
        term ``individual of limited English proficiency'' 
        means an adult or out-of-school youth who has limited 
        ability in speaking, reading, writing, or understanding 
        the English language, and--
                  [(A) whose native language is a language 
                other than English; or
                  [(B) who lives in a family or community 
                environment where a language other than English 
                is the dominant language.
          [(11) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given the term in section 101 of the Higher Education 
        Act of 1965.
          [(12) Literacy.--The term ``literacy'' means an 
        individual's ability to read, write, and speak in 
        English, compute, and solve problems, at levels of 
        proficiency necessary to function on the job, in the 
        family of the individual, and in society.
          [(13) Local educational agency.--The term ``local 
        educational agency'' has the meaning given the term in 
        section 9101 of the Elementary and Secondary Education 
        Act of 1965.
          [(14) Outlying area.--The term ``outlying area'' has 
        the meaning given the term in section 101.
          [(15) Postsecondary educational institution.--The 
        term ``postsecondary educational institution'' means--
                  [(A) an institution of higher education that 
                provides not less than a 2-year program of 
                instruction that is acceptable for credit 
                toward a bachelor's degree;
                  [(B) a tribally controlled community college; 
                or
                  [(C) a nonprofit educational institution 
                offering certificate or apprenticeship programs 
                at the postsecondary level.
          [(16) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          [(17) State.--The term ``State'' means each of the 
        several States of the United States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.
          [(18) Workplace literacy services.--The term 
        ``workplace literacy services'' means literacy services 
        that are offered for the purpose of improving the 
        productivity of the workforce through the improvement 
        of literacy skills.

[SEC. 204. HOME SCHOOLS.

  [Nothing in this title shall be construed to affect home 
schools, or to compel a parent engaged in home schooling to 
participate in an English literacy program, family literacy 
services, or adult education.

[SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

  [There is authorized to be appropriated to carry out this 
title such sums as may be necessary for each of the fiscal 
years 1999 through 2003.

           [Subtitle A--Adult Education and Literacy Programs

                     [CHAPTER 1--FEDERAL PROVISIONS

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

  [(a) Reservation of Funds.--From the sum appropriated under 
section 205 for a fiscal year, the Secretary--
          [(1) shall reserve 1.5 percent to carry out section 
        242, except that the amount so reserved shall not 
        exceed $8,000,000;
          [(2) shall reserve 1.5 percent to carry out section 
        243, except that the amount so reserved shall not 
        exceed $8,000,000; and
          [(3) shall make available, to the Secretary of Labor, 
        1.72 percent for incentive grants under section 503.
  [(b) Grants to Eligible Agencies.--
          [(1) In general.--From the sum appropriated under 
        section 205 and not reserved under subsection (a) for a 
        fiscal year, the Secretary shall award a grant to each 
        eligible agency having a State plan approved under 
        section 224 in an amount equal to the sum of the 
        initial allotment under subsection (c)(1) and the 
        additional allotment under subsection (c)(2) for the 
        eligible agency for the fiscal year, subject to 
        subsections (f) and (g), to enable the eligible agency 
        to carry out the activities assisted under this 
        subtitle.
          [(2) Purpose of grants.--The Secretary may award a 
        grant under paragraph (1) only if the eligible entity 
        involved agrees to expend the grant for adult education 
        and literacy activities in accordance with the 
        provisions of this subtitle.
  [(c) Allotments.--
          [(1) Initial allotments.--From the sum appropriated 
        under section 205 and not reserved under subsection (a) 
        for a fiscal year, the Secretary shall allot to each 
        eligible agency having a State plan approved under 
        section 224(f)--
                  [(A) $100,000, in the case of an eligible 
                agency serving an outlying area; and
                  [(B) $250,000, in the case of any other 
                eligible agency.
          [(2) Additional allotments.--From the sum 
        appropriated under section 205, not reserved under 
        subsection (a), and not allotted under paragraph (1), 
        for a fiscal year, the Secretary shall allot to each 
        eligible agency that receives an initial allotment 
        under paragraph (1) an additional amount that bears the 
        same relationship to such sum as the number of 
        qualifying adults in the State or outlying area served 
        by the eligible agency bears to the number of such 
        adults in all States and outlying areas.
  [(d) Qualifying Adult.--For the purpose of subsection (c)(2), 
the term ``qualifying adult'' means an adult who--
          [(1) is at least 16 years of age;
          [(2) is beyond the age of compulsory school 
        attendance under the law of the State or outlying area;
          [(3) does not have a secondary school diploma or its 
        recognized equivalent; and
          [(4) is not enrolled in secondary school.
  [(e) Special Rule.--
          [(1) In general.--From amounts made available under 
        subsection (c) for the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the 
        Republic of Palau, the Secretary shall award grants to 
        Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, the Republic of the Marshall Islands, 
        the Federated States of Micronesia, or the Republic of 
        Palau to carry out activities described in this 
        subtitle in accordance with the provisions of this 
        subtitle that the Secretary determines are not 
        inconsistent with this subsection.
          [(2) Award basis.--The Secretary shall award grants 
        pursuant to paragraph (1) on a competitive basis and 
        pursuant to recommendations from the Pacific Region 
        Educational Laboratory in Honolulu, Hawaii.
          [(3) Termination of eligibility.--Notwithstanding any 
        other provision of law, the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the 
        Republic of Palau shall not receive any funds under 
        this subtitle for any fiscal year that begins after 
        September 30, 2001.
          [(4) Administrative costs.--The Secretary may provide 
        not more than 5 percent of the funds made available for 
        grants under this subsection to pay the administrative 
        costs of the Pacific Region Educational Laboratory 
        regarding activities assisted under this subsection.
  [(f) Hold-Harmless.--
          [(1) In general.--Notwithstanding subsection (c)--
                  [(A) for fiscal year 1999, no eligible agency 
                shall receive an allotment under this subtitle 
                that is less than 90 percent of the payments 
                made to the State or outlying area of the 
                eligible agency for fiscal year 1998 for 
                programs for which funds were authorized to be 
                appropriated under section 313 of the Adult 
                Education Act (as such Act was in effect on the 
                day before the date of the enactment of the 
                Workforce Investment Act of 1998); and
                  [(B) for fiscal year 2000 and each succeeding 
                fiscal year, no eligible agency shall receive 
                an allotment under this subtitle that is less 
                than 90 percent of the allotment the eligible 
                agency received for the preceding fiscal year 
                under this subtitle.
          [(2) Ratable reduction.--If for any fiscal year the 
        amount available for allotment under this subtitle is 
        insufficient to satisfy the provisions of paragraph 
        (1), the Secretary shall ratably reduce the payments to 
        all eligible agencies, as necessary.
  [(g) Reallotment.--The portion of any eligible agency's 
allotment under this subtitle for a fiscal year that the 
Secretary determines will not be required for the period such 
allotment is available for carrying out activities under this 
subtitle, shall be available for reallotment from time to time, 
on such dates during such period as the Secretary shall fix, to 
other eligible agencies in proportion to the original 
allotments to such agencies under this subtitle for such year.

[SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.

  [(a) Purpose.--The purpose of this section is to establish a 
comprehensive performance accountability system, comprised of 
the activities described in this section, to assess the 
effectiveness of eligible agencies in achieving continuous 
improvement of adult education and literacy activities funded 
under this subtitle, in order to optimize the return on 
investment of Federal funds in adult education and literacy 
activities.
  [(b) Eligible Agency Performance Measures.--
          [(1) In general.--For each eligible agency, the 
        eligible agency performance measures shall consist of--
                  [(A)(i) the core indicators of performance 
                described in paragraph (2)(A); and
                  [(ii) additional indicators of performance 
                (if any) identified by the eligible agency 
                under paragraph (2)(B); and
                  [(B) an eligible agency adjusted level of 
                performance for each indicator described in 
                subparagraph (A).
          [(2) Indicators of performance.--
                  [(A) Core indicators of performance.--The 
                core indicators of performance shall include 
                the following:
                          [(i) Demonstrated improvements in 
                        literacy skill levels in reading, 
                        writing, and speaking the English 
                        language, numeracy, problem solving, 
                        English language acquisition, and other 
                        literacy skills.
                          [(ii) Placement in, retention in, or 
                        completion of, postsecondary education, 
                        training, unsubsidized employment or 
                        career advancement.
                          [(iii) Receipt of a secondary school 
                        diploma or its recognized equivalent.
                  [(B) Additional indicators.--An eligible 
                agency may identify in the State plan 
                additional indicators for adult education and 
                literacy activities authorized under this 
                subtitle.
          [(3) Levels of performance.--
                  [(A) Eligible agency adjusted levels of 
                performance for core indicators.--
                          [(i) In general.--For each eligible 
                        agency submitting a State plan, there 
                        shall be established, in accordance 
                        with this subparagraph, levels of 
                        performance for each of the core 
                        indicators of performance described in 
                        paragraph (2)(A) for adult education 
                        and literacy activities authorized 
                        under this subtitle. The levels of 
                        performance established under this 
                        subparagraph shall, at a minimum--
                                  [(I) be expressed in an 
                                objective, quantifiable, and 
                                measurable form; and
                                  [(II) show the progress of 
                                the eligible agency toward 
                                continuously improving in 
                                performance.
                          [(ii) Identification in state plan.--
                        Each eligible agency shall identify, in 
                        the State plan submitted under section 
                        224, expected levels of performance for 
                        each of the core indicators of 
                        performance for the first 3 program 
                        years covered by the State plan.
                          [(iii) Agreement on eligible agency 
                        adjusted levels of performance for 
                        first 3 years.--In order to ensure an 
                        optimal return on the investment of 
                        Federal funds in adult education and 
                        literacy activities authorized under 
                        this subtitle, the Secretary and each 
                        eligible agency shall reach agreement 
                        on levels of performance for each of 
                        the core indicators of performance, for 
                        the first 3 program years covered by 
                        the State plan, taking into account the 
                        levels identified in the State plan 
                        under clause (ii) and the factors 
                        described in clause (iv). The levels 
                        agreed to under this clause shall be 
                        considered to be the eligible agency 
                        adjusted levels of performance for the 
                        eligible agency for such years and 
                        shall be incorporated into the State 
                        plan prior to the approval of such 
                        plan.
                          [(iv) Factors.--The agreement 
                        described in clause (iii) or (v) shall 
                        take into account--
                                  [(I) how the levels involved 
                                compare with the eligible 
                                agency adjusted levels of 
                                performance established for 
                                other eligible agencies, taking 
                                into account factors including 
                                the characteristics of 
                                participants when the 
                                participants entered the 
                                program, and the services or 
                                instruction to be provided; and
                                  [(II) the extent to which 
                                such levels involved promote 
                                continuous improvement in 
                                performance on the performance 
                                measures by such eligible 
                                agency and ensure optimal 
                                return on the investment of 
                                Federal funds.
                          [(v) Agreement on eligible agency 
                        adjusted levels of performance for 4th 
                        and 5th years.--Prior to the fourth 
                        program year covered by the State plan, 
                        the Secretary and each eligible agency 
                        shall reach agreement on levels of 
                        performance for each of the core 
                        indicators of performance for the 
                        fourth and fifth program years covered 
                        by the State plan, taking into account 
                        the factors described in clause (iv). 
                        The levels agreed to under this clause 
                        shall be considered to be the eligible 
                        agency adjusted levels of performance 
                        for the eligible agency for such years 
                        and shall be incorporated into the 
                        State plan.
                          [(vi) Revisions.--If unanticipated 
                        circumstances arise in a State 
                        resulting in a significant change in 
                        the factors described in clause 
                        (iv)(II), the eligible agency may 
                        request that the eligible agency 
                        adjusted levels of performance agreed 
                        to under clause (iii) or (v) be 
                        revised. The Secretary, after 
                        collaboration with the representatives 
                        described in section 136(i)(1), shall 
                        issue objective criteria and methods 
                        for making such revisions.
                  [(B) Levels of performance for additional 
                indicators.--The eligible agency may identify, 
                in the State plan, eligible agency levels of 
                performance for each of the additional 
                indicators described in paragraph (2)(B). Such 
                levels shall be considered to be eligible 
                agency adjusted levels of performance for 
                purposes of this subtitle.
  [(c) Report.--
          [(1) In general.--Each eligible agency that receives 
        a grant under section 211(b) shall annually prepare and 
        submit to the Secretary a report on the progress of the 
        eligible agency in achieving eligible agency 
        performance measures, including information on the 
        levels of performance achieved by the eligible agency 
        with respect to the core indicators of performance.
          [(2) Information dissemination.--The Secretary--
                  [(A) shall make the information contained in 
                such reports available to the general public 
                through publication and other appropriate 
                methods;
                  [(B) shall disseminate State-by-State 
                comparisons of the information; and
                  [(C) shall provide the appropriate committees 
                of Congress with copies of such reports.

                      [CHAPTER 2--STATE PROVISIONS

[SEC. 221. STATE ADMINISTRATION.

  [Each eligible agency shall be responsible for the State or 
outlying area administration of activities under this subtitle, 
including--
          [(1) the development, submission, and implementation 
        of the State plan;
          [(2) consultation with other appropriate agencies, 
        groups, and individuals that are involved in, or 
        interested in, the development and implementation of 
        activities assisted under this subtitle; and
          [(3) coordination and nonduplication with other 
        Federal and State education, training, corrections, 
        public housing, and social service programs.

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

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

[SEC. 223. STATE LEADERSHIP ACTIVITIES.

  [(a) In General.--Each eligible agency shall use funds made 
available under section 222(a)(2) for one or more of the 
following adult education and literacy activities:
          [(1) The establishment or operation of professional 
        development programs to improve the quality of 
        instruction provided pursuant to local activities 
        required under section 231(b), including instruction 
        incorporating phonemic awareness, systematic phonics, 
        fluency, and reading comprehension, and instruction 
        provided by volunteers or by personnel of a State or 
        outlying area.
          [(2) The provision of technical assistance to 
        eligible providers of adult education and literacy 
        activities.
          [(3) The provision of technology assistance, 
        including staff training, to eligible providers of 
        adult education and literacy activities to enable the 
        eligible providers to improve the quality of such 
        activities.
          [(4) The support of State or regional networks of 
        literacy resource centers.
          [(5) The monitoring and evaluation of the quality of, 
        and the improvement in, adult education and literacy 
        activities.
          [(6) Incentives for--
                  [(A) program coordination and integration; 
                and
                  [(B) performance awards.
          [(7) Developing and disseminating curricula, 
        including curricula incorporating phonemic awareness, 
        systematic phonics, fluency, and reading comprehension.
          [(8) Other activities of statewide significance that 
        promote the purpose of this title.
          [(9) Coordination with existing support services, 
        such as transportation, child care, and other 
        assistance designed to increase rates of enrollment in, 
        and successful completion of, adult education and 
        literacy activities, to adults enrolled in such 
        activities.
          [(10) Integration of literacy instruction and 
        occupational skill training, and promoting linkages 
        with employers.
          [(11) Linkages with postsecondary educational 
        institutions.
  [(b) Collaboration.--In carrying out this section, eligible 
agencies shall collaborate where possible, and avoid 
duplicating efforts, in order to maximize the impact of the 
activities described in subsection (a).
  [(c) State-Imposed Requirements.--Whenever a State or 
outlying area implements any rule or policy relating to the 
administration or operation of a program authorized under this 
subtitle that has the effect of imposing a requirement that is 
not imposed under Federal law (including any rule or policy 
based on a State or outlying area interpretation of a Federal 
statute, regulation, or guideline), the State or outlying area 
shall identify, to eligible providers, the rule or policy as 
being State- or outlying area-imposed.

[SEC. 224. STATE PLAN.

  [(a) 5-Year Plans.--
          [(1) In general.--Each eligible agency desiring a 
        grant under this subtitle for any fiscal year shall 
        submit to, or have on file with, the Secretary a 5-year 
        State plan.
          [(2) Comprehensive plan or application.--The eligible 
        agency may submit the State plan as part of a 
        comprehensive plan or application for Federal education 
        assistance.
  [(b) Plan Contents.--In developing the State plan, and any 
revisions to the State plan, the eligible agency shall include 
in the State plan or revisions--
          [(1) an objective assessment of the needs of 
        individuals in the State or outlying area for adult 
        education and literacy activities, including 
        individuals most in need or hardest to serve;
          [(2) a description of the adult education and 
        literacy activities that will be carried out with any 
        funds received under this subtitle;
          [(3) a description of how the eligible agency will 
        evaluate annually the effectiveness of the adult 
        education and literacy activities based on the 
        performance measures described in section 212;
          [(4) a description of the performance measures 
        described in section 212 and how such performance 
        measures will ensure the improvement of adult education 
        and literacy activities in the State or outlying area;
          [(5) an assurance that the eligible agency will award 
        not less than one grant under this subtitle to an 
        eligible provider who offers flexible schedules and 
        necessary support services (such as child care and 
        transportation) to enable individuals, including 
        individuals with disabilities, or individuals with 
        other special needs, to participate in adult education 
        and literacy activities, which eligible provider shall 
        attempt to coordinate with support services that are 
        not provided under this subtitle prior to using funds 
        for adult education and literacy activities provided 
        under this subtitle for support services;
          [(6) an assurance that the funds received under this 
        subtitle will not be expended for any purpose other 
        than for activities under this subtitle;
          [(7) a description of how the eligible agency will 
        fund local activities in accordance with the 
        considerations described in section 231(e);
          [(8) an assurance that the eligible agency will 
        expend the funds under this subtitle only in a manner 
        consistent with fiscal requirements in section 241;
          [(9) a description of the process that will be used 
        for public participation and comment with respect to 
        the State plan;
          [(10) a description of how the eligible agency will 
        develop program strategies for populations that 
        include, at a minimum--
                  [(A) low-income students;
                  [(B) individuals with disabilities;
                  [(C) single parents and displaced homemakers; 
                and
                  [(D) individuals with multiple barriers to 
                educational enhancement, including individuals 
                with limited English proficiency;
          [(11) a description of how the adult education and 
        literacy activities that will be carried out with any 
        funds received under this subtitle will be integrated 
        with other adult education, career development, and 
        employment and training activities in the State or 
        outlying area served by the eligible agency; and
          [(12) a description of the steps the eligible agency 
        will take to ensure direct and equitable access, as 
        required in section 231(c)(1).
  [(c) Plan Revisions.--When changes in conditions or other 
factors require substantial revisions to an approved State 
plan, the eligible agency shall submit the revisions to the 
State plan to the Secretary.
  [(d) Consultation.--The eligible agency shall--
          [(1) submit the State plan, and any revisions to the 
        State plan, to the Governor of the State or outlying 
        area for review and comment; and
          [(2) ensure that any comments by the Governor 
        regarding the State plan, and any revision to the State 
        plan, are submitted to the Secretary.
  [(e) Peer Review.--The Secretary shall establish a peer 
review process to make recommendations regarding the approval 
of State plans.
  [(f) Plan Approval.--A State plan submitted to the Secretary 
shall be approved by the Secretary unless the Secretary makes a 
written determination, within 90 days after receiving the plan, 
that the plan is inconsistent with the specific provisions of 
this subtitle.
  [(g) Transition.--The provisions of this section shall be 
subject to section 506(b).

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

  [(a) Program Authorized.--From funds made available under 
section 222(a)(1) for a fiscal year, each eligible agency shall 
carry out corrections education and education for other 
institutionalized individuals.
  [(b) Uses of Funds.--The funds described in subsection (a) 
shall be used for the cost of educational programs for criminal 
offenders in correctional institutions and for other 
institutionalized individuals, including academic programs 
for--
          [(1) basic education;
          [(2) special education programs as determined by the 
        eligible agency;
          [(3) English literacy programs; and
          [(4) secondary school credit programs.
  [(c) Priority.--Each eligible agency that is using assistance 
provided under this section to carry out a program for criminal 
offenders within a correctional institution shall give priority 
to serving individuals who are likely to leave the correctional 
institution within 5 years of participation in the program.
  [(d) Definition of Criminal Offender.--
          [(1) Criminal offender.--The term ``criminal 
        offender'' means any individual who is charged with or 
        convicted of any criminal offense.
          [(2) Correctional institution.--The term 
        ``correctional institution'' means any--
                  [(A) prison;
                  [(B) jail;
                  [(C) reformatory;
                  [(D) work farm;
                  [(E) detention center; or
                  [(F) halfway house, community-based 
                rehabilitation center, or any other similar 
                institution designed for the confinement or 
                rehabilitation of criminal offenders.

                      [CHAPTER 3--LOCAL PROVISIONS

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

  [(a) Grants and Contracts.--From grant funds made available 
under section 211(b), each eligible agency shall award 
multiyear grants or contracts, on a competitive basis, to 
eligible providers within the State or outlying area to enable 
the eligible providers to develop, implement, and improve adult 
education and literacy activities within the State.
  [(b) Required Local Activities.--The eligible agency shall 
require that each eligible provider receiving a grant or 
contract under subsection (a) use the grant or contract to 
establish or operate one or more programs that provide services 
or instruction in one or more of the following categories:
          [(1) Adult education and literacy services, including 
        workplace literacy services.
          [(2) Family literacy services.
          [(3) English literacy programs.
  [(c) Direct and Equitable Access; Same Process.--Each 
eligible agency receiving funds under this subtitle shall 
ensure that--
          [(1) all eligible providers have direct and equitable 
        access to apply for grants or contracts under this 
        section; and
          [(2) the same grant or contract announcement process 
        and application process is used for all eligible 
        providers in the State or outlying area.
  [(d) Special Rule.--Each eligible agency awarding a grant or 
contract under this section shall not use any funds made 
available under this subtitle for adult education and literacy 
activities for the purpose of supporting or providing programs, 
services, or activities for individuals who are not individuals 
described in subparagraphs (A) and (B) of section 203(1), 
except that such agency may use such funds for such purpose if 
such programs, services, or activities are related to family 
literacy services. In providing family literacy services under 
this subtitle, an eligible provider shall attempt to coordinate 
with programs and services that are not assisted under this 
subtitle prior to using funds for adult education and literacy 
activities under this subtitle for activities other than adult 
education activities.
  [(e) Considerations.--In awarding grants or contracts under 
this section, the eligible agency shall consider--
          [(1) the degree to which the eligible provider will 
        establish measurable goals for participant outcomes;
          [(2) the past effectiveness of an eligible provider 
        in improving the literacy skills of adults and 
        families, and, after the 1-year period beginning with 
        the adoption of an eligible agency's performance 
        measures under section 212, the success of an eligible 
        provider receiving funding under this subtitle in 
        meeting or exceeding such performance measures, 
        especially with respect to those adults with the lowest 
        levels of literacy;
          [(3) the commitment of the eligible provider to serve 
        individuals in the community who are most in need of 
        literacy services, including individuals who are low-
        income or have minimal literacy skills;
          [(4) whether or not the program--
                  [(A) is of sufficient intensity and duration 
                for participants to achieve substantial 
                learning gains; and
                  [(B) uses instructional practices, such as 
                phonemic awareness, systematic phonics, 
                fluency, and reading comprehension that 
                research has proven to be effective in teaching 
                individuals to read;
          [(5) whether the activities are built on a strong 
        foundation of research and effective educational 
        practice;
          [(6) whether the activities effectively employ 
        advances in technology, as appropriate, including the 
        use of computers;
          [(7) whether the activities provide learning in real 
        life contexts to ensure that an individual has the 
        skills needed to compete in the workplace and exercise 
        the rights and responsibilities of citizenship;
          [(8) whether the activities are staffed by well-
        trained instructors, counselors, and administrators;
          [(9) whether the activities coordinate with other 
        available resources in the community, such as by 
        establishing strong links with elementary schools and 
        secondary schools, postsecondary educational 
        institutions, one-stop centers, job training programs, 
        and social service agencies;
          [(10) whether the activities offer flexible schedules 
        and support services (such as child care and 
        transportation) that are necessary to enable 
        individuals, including individuals with disabilities or 
        other special needs, to attend and complete programs;
          [(11) whether the activities maintain a high-quality 
        information management system that has the capacity to 
        report participant outcomes and to monitor program 
        performance against the eligible agency performance 
        measures; and
          [(12) whether the local communities have a 
        demonstrated need for additional English literacy 
        programs.

[SEC. 232. LOCAL APPLICATION.

  [Each eligible provider desiring a grant or contract under 
this subtitle shall submit an application to the eligible 
agency containing such information and assurances as the 
eligible agency may require, including--
          [(1) a description of how funds awarded under this 
        subtitle will be spent; and
          [(2) a description of any cooperative arrangements 
        the eligible provider has with other agencies, 
        institutions, or organizations for the delivery of 
        adult education and literacy activities.

[SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

  [(a) In General.--Subject to subsection (b), of the amount 
that is made available under this subtitle to an eligible 
provider--
          [(1) not less than 95 percent shall be expended for 
        carrying out adult education and literacy activities; 
        and
          [(2) the remaining amount, not to exceed 5 percent, 
        shall be used for planning, administration, personnel 
        development, and interagency coordination.
  [(b) Special Rule.--In cases where the cost limits described 
in subsection (a) are too restrictive to allow for adequate 
planning, administration, personnel development, and 
interagency coordination, the eligible provider shall negotiate 
with the eligible agency in order to determine an adequate 
level of funds to be used for noninstructional purposes.

                     [CHAPTER 4--GENERAL PROVISIONS

[SEC. 241. ADMINISTRATIVE PROVISIONS.

  [(a) Supplement Not Supplant.--Funds made available for adult 
education and literacy activities under this subtitle shall 
supplement and not supplant other State or local public funds 
expended for adult education and literacy activities.
  [(b) Maintenance of Effort.--
          [(1) In general.--
                  [(A) Determination.--An eligible agency may 
                receive funds under this subtitle for any 
                fiscal year if the Secretary finds that the 
                fiscal effort per student or the aggregate 
                expenditures of such eligible agency for adult 
                education and literacy activities, in the 
                second preceding fiscal year, was not less than 
                90 percent of the fiscal effort per student or 
                the aggregate expenditures of such eligible 
                agency for adult education and literacy 
                activities, in the third preceding fiscal year.
                  [(B) Proportionate reduction.--Subject to 
                paragraphs (2), (3), and (4), for any fiscal 
                year with respect to which the Secretary 
                determines under subparagraph (A) that the 
                fiscal effort or the aggregate expenditures of 
                an eligible agency for the preceding program 
                year were less than such effort or expenditures 
                for the second preceding program year, the 
                Secretary--
                          [(i) shall determine the percentage 
                        decreases in such effort or in such 
                        expenditures; and
                          [(ii) shall decrease the payment made 
                        under this subtitle for such program 
                        year to the agency for adult education 
                        and literacy activities by the lesser 
                        of such percentages.
          [(2) Computation.--In computing the fiscal effort and 
        aggregate expenditures under paragraph (1), the 
        Secretary shall exclude capital expenditures and 
        special one-time project costs.
          [(3) Decrease in federal support.--If the amount made 
        available for adult education and literacy activities 
        under this subtitle for a fiscal year is less than the 
        amount made available for adult education and literacy 
        activities under this subtitle for the preceding fiscal 
        year, then the fiscal effort per student and the 
        aggregate expenditures of an eligible agency required 
        in order to avoid a reduction under paragraph (1)(B) 
        shall be decreased by the same percentage as the 
        percentage decrease in the amount so made available.
          [(4) Waiver.--The Secretary may waive the 
        requirements of this subsection for 1 fiscal year only, 
        if the Secretary determines that a waiver would be 
        equitable due to exceptional or uncontrollable 
        circumstances, such as a natural disaster or an 
        unforeseen and precipitous decline in the financial 
        resources of the State or outlying area of the eligible 
        agency. If the Secretary grants a waiver under the 
        preceding sentence for a fiscal year, the level of 
        effort required under paragraph (1) shall not be 
        reduced in the subsequent fiscal year because of the 
        waiver.

[SEC. 242. NATIONAL INSTITUTE FOR LITERACY.

  [(a) Purpose.--The purpose of this section is to establish a 
National Institute for Literacy that--
          [(1) provides national leadership regarding literacy;
          [(2) coordinates literacy services and policy; and
          [(3) serves as a national resource for adult 
        education and literacy programs by--
                  [(A) providing the best and most current 
                information available, including the work of 
                the Eunice Kennedy Shriver National Institute 
                of Child Health and Human Development in the 
                area of phonemic awareness, systematic phonics, 
                fluency, and reading comprehension, to all 
                recipients of Federal assistance that focuses 
                on reading, including programs under titles I 
                and VII of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6301 et seq. 
                and 7401 et seq.), the Head Start Act (42 
                U.S.C. 9831 et seq.), the Individuals with 
                Disabilities Education Act (20 U.S.C. 1400 et 
                seq.), and this Act; and
                  [(B) supporting the creation of new ways to 
                offer services of proven effectiveness.
  [(b) Establishment.--
          [(1) In general.--There is established the National 
        Institute for Literacy (in this section referred to as 
        the ``Institute''). The Institute shall be administered 
        under the terms of an interagency agreement entered 
        into by the Secretary of Education with the Secretary 
        of Labor and the Secretary of Health and Human Services 
        (in this section referred to as the ``Interagency 
        Group''). The Interagency Group may include in the 
        Institute any research and development center, 
        institute, or clearinghouse established within the 
        Department of Education, the Department of Labor, or 
        the Department of Health and Human Services the purpose 
        of which is determined by the Interagency Group to be 
        related to the purpose of the Institute.
          [(2) Offices.--The Institute shall have offices 
        separate from the offices of the Department of 
        Education, the Department of Labor, and the Department 
        of Health and Human Services.
          [(3) Recommendations.--The Interagency Group shall 
        consider the recommendations of the National Institute 
        for Literacy Advisory Board (in this section referred 
        to as the ``Board'') established under subsection (e) 
        in planning the goals of the Institute and in the 
        implementation of any programs to achieve the goals. If 
        the Board's recommendations are not followed, the 
        Interagency Group shall provide a written explanation 
        to the Board concerning actions the Interagency Group 
        takes that are inconsistent with the Board's 
        recommendations, including the reasons for not 
        following the Board's recommendations with respect to 
        the actions. The Board may also request a meeting of 
        the Interagency Group to discuss the Board's 
        recommendations.
          [(4) Daily operations.--The daily operations of the 
        Institute shall be administered by the Director of the 
        Institute.
  [(c) Duties.--
          [(1) In general.--In order to provide leadership for 
        the improvement and expansion of the system for 
        delivery of literacy services, the Institute is 
        authorized--
                  [(A) to establish a national electronic data 
                base of information that disseminates 
                information to the broadest possible audience 
                within the literacy and basic skills field, and 
                that includes--
                          [(i) effective practices in the 
                        provision of literacy and basic skills 
                        instruction, including instruction in 
                        phonemic awareness, systematic phonics, 
                        fluency, and reading comprehension, and 
                        the integration of literacy and basic 
                        skills instruction with occupational 
                        skills training;
                          [(ii) public and private literacy and 
                        basic skills programs, and Federal, 
                        State, and local policies, affecting 
                        the provision of literacy services at 
                        the national, State, and local levels;
                          [(iii) opportunities for technical 
                        assistance, meetings, conferences, and 
                        other opportunities that lead to the 
                        improvement of literacy and basic 
                        skills services; and
                          [(iv) a communication network for 
                        literacy programs, providers, social 
                        service agencies, and students;
                  [(B) to coordinate support for the provision 
                of literacy and basic skills services across 
                Federal agencies and at the State and local 
                levels;
                  [(C) to coordinate the support of reliable 
                and replicable research and development on 
                literacy and basic skills in families and 
                adults across Federal agencies, especially with 
                the Office of Educational Research and 
                Improvement in the Department of Education, and 
                to carry out basic and applied research and 
                development on topics that are not being 
                investigated by other organizations or 
                agencies, such as the special literacy needs of 
                individuals with learning disabilities;
                  [(D) to collect and disseminate information 
                on methods of advancing literacy that show 
                great promise, including phonemic awareness, 
                systematic phonics, fluency, and reading 
                comprehension based on the work of the Eunice 
                Kennedy Shriver National Institute of Child 
                Health and Human Development;
                  [(E) to provide policy and technical 
                assistance to Federal, State, and local 
                entities for the improvement of policy and 
                programs relating to literacy;
                  [(F) to fund a network of State or regional 
                adult literacy resource centers to assist State 
                and local public and private nonprofit efforts 
                to improve literacy by--
                          [(i) encouraging the coordination of 
                        literacy services;
                          [(ii) enhancing the capacity of State 
                        and local organizations to provide 
                        literacy services; and
                          [(iii) serving as a link between the 
                        Institute and providers of adult 
                        education and literacy activities for 
                        the purpose of sharing information, 
                        data, research, expertise, and literacy 
                        resources;
                  [(G) to coordinate and share information with 
                national organizations and associations that 
                are interested in literacy and workforce 
                investment activities;
                  [(H) to advise Congress and Federal 
                departments and agencies regarding the 
                development of policy with respect to literacy 
                and basic skills; and
                  [(I) to undertake other activities that lead 
                to the improvement of the Nation's literacy 
                delivery system and that complement other such 
                efforts being undertaken by public and private 
                agencies and organizations.
          [(2) Grants, contracts, and cooperative agreements.--
        The Institute may award grants to, or enter into 
        contracts or cooperative agreements with, individuals, 
        public or private institutions, agencies, 
        organizations, or consortia of such institutions, 
        agencies, or organizations to carry out the activities 
        of the Institute.
  [(d) Literacy Leadership.--
          [(1) In general.--The Institute, in consultation with 
        the Board, may award fellowships, with such stipends 
        and allowances that the Director considers necessary, 
        to outstanding individuals pursuing careers in adult 
        education or literacy in the areas of instruction, 
        management, research, or innovation.
          [(2) Fellowships.--Fellowships awarded under this 
        subsection shall be used, under the auspices of the 
        Institute, to engage in research, education, training, 
        technical assistance, or other activities to advance 
        the field of adult education or literacy, including the 
        training of volunteer literacy providers at the 
        national, State, or local level.
          [(3) Interns and volunteers.--The Institute, in 
        consultation with the Board, may award paid and unpaid 
        internships to individuals seeking to assist the 
        Institute in carrying out its mission. Notwithstanding 
        section 1342 of title 31, United States Code, the 
        Institute may accept and use voluntary and 
        uncompensated services as the Institute determines 
        necessary.
  [(e) National Institute for Literacy Advisory Board.--
          [(1) Establishment.--
                  [(A) In general.--There shall be a National 
                Institute for Literacy Advisory Board (in this 
                section referred to as the ``Board''), which 
                shall consist of 10 individuals appointed by 
                the President with the advice and consent of 
                the Senate.
                  [(B) Composition.--The Board shall be 
                comprised of individuals who are not otherwise 
                officers or employees of the Federal Government 
                and who are representative of entities such 
                as--
                          [(i) literacy organizations and 
                        providers of literacy services, 
                        including nonprofit providers, 
                        providers of English literacy programs 
                        and services, social service 
                        organizations, and eligible providers 
                        receiving assistance under this 
                        subtitle;
                          [(ii) businesses that have 
                        demonstrated interest in literacy 
                        programs;
                          [(iii) literacy students, including 
                        literacy students with disabilities;
                          [(iv) experts in the area of literacy 
                        research;
                          [(v) State and local governments;
                          [(vi) State Directors of adult 
                        education; and
                          [(vii) representatives of employees, 
                        including representatives of labor 
                        organizations.
          [(2) Duties.--The Board shall--
                  [(A) make recommendations concerning the 
                appointment of the Director and staff of the 
                Institute;
                  [(B) provide independent advice on the 
                operation of the Institute; and
                  [(C) receive reports from the Interagency 
                Group and the Director.
          [(3) Federal advisory committee act.--Except as 
        otherwise provided, the Board established by this 
        subsection shall be subject to the provisions of the 
        Federal Advisory Committee Act (5 U.S.C. App.).
          [(4) Appointments.--
                  [(A) In general.--Each member of the Board 
                shall be appointed for a term of 3 years, 
                except that the initial terms for members may 
                be 1, 2, or 3 years in order to establish a 
                rotation in which one-third of the members are 
                selected each year. Any such member may be 
                appointed for not more than 2 consecutive 
                terms.
                  [(B) Vacancies.--Any member appointed to fill 
                a vacancy occurring before the expiration of 
                the term for which the member's predecessor was 
                appointed shall be appointed only for the 
                remainder of that term. A member may serve 
                after the expiration of that member's term 
                until a successor has taken office.
          [(5) Quorum.--A majority of the members of the Board 
        shall constitute a quorum but a lesser number may hold 
        hearings. Any recommendation of the Board may be passed 
        only by a majority of the Board's members present.
          [(6) Election of officers.--The Chairperson and Vice 
        Chairperson of the Board shall be elected by the 
        members of the Board. The term of office of the 
        Chairperson and Vice Chairperson shall be 2 years.
          [(7) Meetings.--The Board shall meet at the call of 
        the Chairperson or a majority of the members of the 
        Board.
  [(f) Gifts, Bequests, and Devises.--
          [(1) In general.--The Institute may accept, 
        administer, and use gifts or donations of services, 
        money, or property, whether real or personal, tangible 
        or intangible.
          [(2) Rules.--The Board shall establish written rules 
        setting forth the criteria to be used by the Institute 
        in determining whether the acceptance of contributions 
        of services, money, or property whether real or 
        personal, tangible or intangible, would reflect 
        unfavorably upon the ability of the Institute or any 
        employee to carry out the responsibilities of the 
        Institute or employee, or official duties, in a fair 
        and objective manner, or would compromise the integrity 
        or the appearance of the integrity of the Institute's 
        programs or any official involved in those programs.
  [(g) Mails.--The Board and the Institute may use the United 
States mails in the same manner and under the same conditions 
as other departments and agencies of the United States.
  [(h) Staff.--The Interagency Group, after considering 
recommendations made by the Board, shall appoint and fix the 
pay of a Director.
  [(i) Applicability of Certain Civil Service Laws.--The 
Director and staff of the Institute may be appointed without 
regard to the provisions of title 5, United States Code, 
governing appointments in the competitive service, and may be 
paid without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of that title relating to 
classification and General Schedule pay rates, except that an 
individual so appointed may not receive pay in excess of the 
annual rate of basic pay payable for level IV of the Executive 
Schedule.
  [(j) Experts and Consultants.--The Institute may procure 
temporary and intermittent services under section 3109(b) of 
title 5, United States Code.
  [(k) Report.--The Institute shall submit a report biennially 
to the Committee on Education and the Workforce of the House of 
Representatives and the Committee on Labor and Human Resources 
of the Senate. Each report submitted under this subsection 
shall include--
          [(1) a comprehensive and detailed description of the 
        Institute's operations, activities, financial 
        condition, and accomplishments in the field of literacy 
        for the period covered by the report;
          [(2) a description of how plans for the operation of 
        the Institute for the succeeding 2 fiscal years will 
        facilitate achievement of the goals of the Institute 
        and the goals of the literacy programs within the 
        Department of Education, the Department of Labor, and 
        the Department of Health and Human Services; and
          [(3) any additional minority, or dissenting views 
        submitted by members of the Board.
  [(l) Funding.--Any amounts appropriated to the Secretary, the 
Secretary of Labor, the Secretary of Health and Human Services, 
or any other department that participates in the Institute for 
purposes that the Institute is authorized to perform under this 
section may be provided to the Institute for such purposes.

[SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.

  [The Secretary shall establish and carry out a program of 
national leadership activities to enhance the quality of adult 
education and literacy programs nationwide. Such activities may 
include the following:
          [(1) Technical assistance, including--
                  [(A) assistance provided to eligible 
                providers in developing and using performance 
                measures for the improvement of adult education 
                and literacy activities, including family 
                literacy services;
                  [(B) assistance related to professional 
                development activities, and assistance for the 
                purposes of developing, improving, identifying, 
                and disseminating the most successful methods 
                and techniques for providing adult education 
                and literacy activities, including family 
                literacy services, based on scientific evidence 
                where available; and
                  [(C) assistance in distance learning and 
                promoting and improving the use of technology 
                in the classroom.
          [(2) Funding national leadership activities that are 
        not described in paragraph (1), either directly or 
        through grants, contracts, or cooperative agreements 
        awarded on a competitive basis to or with postsecondary 
        educational institutions, public or private 
        organizations or agencies, or consortia of such 
        institutions, organizations, or agencies, such as--
                  [(A) developing, improving, and identifying 
                the most successful methods and techniques for 
                addressing the education needs of adults, 
                including instructional practices using 
                phonemic awareness, systematic phonics, 
                fluency, and reading comprehension, based on 
                the work of the Eunice Kennedy Shriver National 
                Institute of Child Health and Human 
                Development;
                  [(B) increasing the effectiveness of, and 
                improving the quality of, adult education and 
                literacy activities, including family literacy 
                services;
                  [(C) carrying out research, such as 
                estimating the number of adults functioning at 
                the lowest levels of literacy proficiency;
                  [(D)(i) carrying out demonstration programs;
                  [(ii) developing and replicating model and 
                innovative programs, such as the development of 
                models for basic skill certificates, 
                identification of effective strategies for 
                working with adults with learning disabilities 
                and with individuals with limited English 
                proficiency who are adults, and workplace 
                literacy programs; and
                  [(iii) disseminating best practices 
                information, including information regarding 
                promising practices resulting from federally 
                funded demonstration programs;
                  [(E) providing for the conduct of an 
                independent evaluation and assessment of adult 
                education and literacy activities through 
                studies and analyses conducted independently 
                through grants and contracts awarded on a 
                competitive basis, which evaluation and 
                assessment shall include descriptions of--
                          [(i) the effect of performance 
                        measures and other measures of 
                        accountability on the delivery of adult 
                        education and literacy activities, 
                        including family literacy services;
                          [(ii) the extent to which the adult 
                        education and literacy activities, 
                        including family literacy services, 
                        increase the literacy skills of adults 
                        (and of children, in the case of family 
                        literacy services), lead the 
                        participants in such activities to 
                        involvement in further education and 
                        training, enhance the employment and 
                        earnings of such participants, and, if 
                        applicable, lead to other positive 
                        outcomes, such as reductions in 
                        recidivism in the case of prison-based 
                        adult education and literacy 
                        activities;
                          [(iii) the extent to which the 
                        provision of support services to adults 
                        enrolled in adult education and family 
                        literacy programs increase the rate of 
                        enrollment in, and successful 
                        completion of, such programs; and
                          [(iv) the extent to which eligible 
                        agencies have distributed funds under 
                        section 231 to meet the needs of adults 
                        through community-based organizations;
                  [(F) supporting efforts aimed at capacity 
                building at the State and local levels, such as 
                technical assistance in program planning, 
                assessment, evaluation, and monitoring of 
                activities carried out under this subtitle;
                  [(G) collecting data, such as data regarding 
                the improvement of both local and State data 
                systems, through technical assistance and 
                development of model performance data 
                collection systems; and
                  [(H) other activities designed to enhance the 
                quality of adult education and literacy 
                activities nationwide.

                          [Subtitle B--Repeals

[SEC. 251. REPEALS.

  [(a) Repeals.--
          [(1) Adult education act.--The Adult Education Act 
        (20 U.S.C. 1201 et seq.) is repealed.
          [(2) National literacy act of 1991.--The National 
        Literacy Act of 1991 (20 U.S.C. 1201 note) is repealed.
  [(b) Conforming Amendments.--
          [(1) Refugee education assistance act.--Subsection 
        (b) of section 402 of the Refugee Education Assistance 
        Act of 1980 (8 U.S.C. 1522 note) is repealed.
          [(2) Elementary and secondary education act of 
        1965.--
                  [(A) Section 1202 of esea.--Section 
                1202(c)(1) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6362(c)(1)) is 
                amended by striking ``Adult Education Act'' and 
                inserting ``Adult Education and Family Literacy 
                Act''.
                  [(B) Section 1205 of esea.--Section 
                1205(8)(B) of such Act (20 U.S.C. 6365(8)(B)) 
                is amended by striking ``Adult Education Act'' 
                and inserting ``Adult Education and Family 
                Literacy Act''.
                  [(C) Section 1206 of esea.--Section 
                1206(a)(1)(A) of such Act (20 U.S.C. 
                6366(a)(1)(A)) is amended by striking ``an 
                adult basic education program under the Adult 
                Education Act'' and inserting ``adult education 
                and literacy activities under the Adult 
                Education and Family Literacy Act''.
                  [(D) Section 3113 of esea.--Section 3113(1) 
                of such Act (20 U.S.C. 6813(1)) is amended by 
                striking ``section 312 of the Adult Education 
                Act'' and inserting ``section 203 of the Adult 
                Education and Family Literacy Act''.
                  [(E) Section 9161 of esea.--Section 9161(2) 
                of such Act (20 U.S.C. 7881(2)) is amended by 
                striking ``section 312(2) of the Adult 
                Education Act'' and inserting ``section 203 of 
                the Adult Education and Family Literacy Act''.
          [(3) Older americans act of 1965.--Section 203(b)(8) 
        of the Older Americans Act of 1965 (42 U.S.C. 
        3013(b)(8)) is amended by striking ``Adult Education 
        Act'' and inserting ``Adult Education and Family 
        Literacy Act''.]

        TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION

SEC. 201. SHORT TITLE.

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

SEC. 202. PURPOSE.

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

SEC. 203. DEFINITIONS.

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

SEC. 204. HOME SCHOOLS.

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

SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

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

                     Subtitle A--Federal Provisions

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

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

SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.

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

                      Subtitle B--State Provisions

SEC. 221. STATE ADMINISTRATION.

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

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

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

SEC. 223. STATE LEADERSHIP ACTIVITIES.

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

SEC. 224. STATE PLAN.

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

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

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

                      Subtitle C--Local Provisions

SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

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

SEC. 232. LOCAL APPLICATION.

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

SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

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

                     Subtitle D--General Provisions

SEC. 241. ADMINISTRATIVE PROVISIONS.

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

SEC. 242. NATIONAL ACTIVITIES.

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

           *       *       *       *       *       *       *

                      TITLE V--GENERAL PROVISIONS

SEC. 501. STATE UNIFIED PLAN.

  (a) * * *
  [(b) State Unified Plan.--
          [(1) In general.--A State may develop and submit to 
        the appropriate Secretaries a State unified plan for 2 
        or more of the activities or programs set forth in 
        paragraph (2), except that the State may include in the 
        plan the activities described in paragraph (2)(A) only 
        with the prior approval of the legislature of the 
        State. The State unified plan shall cover one or more 
        of the activities set forth in subparagraphs (A) 
        through (D) of paragraph (2) and may cover one or more 
        of the activities set forth in subparagraphs (E) 
        through (O) of paragraph (2). For purposes of this 
        paragraph, the activities and programs described in 
        subparagraphs (A) and (B) of paragraph (2) shall not be 
        considered to be 2 or more activities or programs for 
        purposes of the unified plan. Such activities or 
        programs shall be considered to be 1 activity or 
        program.
          [(2) Activities.--The activities and programs 
        referred to in paragraph (1) are as follows:
                  [(A) career and technical education programs 
                at the secondary level authorized under the 
                Carl D. Perkins Career and Technical Education 
                Act of 2006 (20 U.S.C. 2301 et seq.).
                  [(B) career and technical education programs 
                at the postsecondary level authorized under the 
                Carl D. Perkins Career and Technical Education 
                Act of 2006 (20 U.S.C. 2301 et seq.).
                  [(C) Activities authorized under title I.
                  [(D) Activities authorized under title II.
                  [(E) Programs authorized under section 6(d) 
                of the Food and Nutrition Act of 2008 (7 U.S.C. 
                2015(d)).
                  [(F) Work programs authorized under section 
                6(o) of the Food and Nutrition Act of 2008 (7 
                U.S.C. 2015(o)).
                  [(G) Activities authorized under chapter 2 of 
                title II of the Trade Act of 1974 (19 U.S.C. 
                2271 et seq.).
                  [(H) Programs authorized under the Wagner-
                Peyser Act (29 U.S.C. 49 et seq.).
                  [(I) Programs authorized under title I of the 
                Rehabilitation Act of 1973 (29 U.S.C. 720 et 
                seq.), other than section 112 of such Act (29 
                U.S.C. 732).
                  [(J) Activities authorized under chapter 41 
                of title 38, United States Code.
                  [(K) Programs authorized under State 
                unemployment compensation laws (in accordance 
                with applicable Federal law).
                  [(L) Programs authorized under part A of 
                title IV of the Social Security Act (42 U.S.C. 
                601 et seq.).
                  [(M) Programs authorized under title V of the 
                Older Americans Act of 1965 (42 U.S.C. 3056 et 
                seq.).
                  [(N) Training activities carried out by the 
                Department of Housing and Urban Development.
                  [(O) Programs authorized under the Community 
                Services Block Grant Act (42 U.S.C. 9901 et 
                seq.).]
  (b) State Unified Plan.--
          (1) In general.--A State may develop and submit to 
        the appropriate Secretaries a State unified plan for 2 
        or more of the activities or programs set forth in 
        paragraph (2). The State unified plan shall cover one 
        or more of the activities set forth in subparagraphs 
        (A) and (B) of paragraph (2) and may cover one or more 
        of the activities set forth in subparagraphs (C) 
        through (N) of paragraph (2). For purposes of this 
        paragraph, the activities and programs described in 
        subparagraphs (A) and (B) of paragraph (2) shall not be 
        considered to be 2 or more activities or programs for 
        purposes of the unified plan. Such activities or 
        programs shall be considered to be 1 activity or 
        program.
          (2) Activities and programs.--The activities and 
        programs referred to in paragraph (1) are as follows:
                  (A) Programs and activities authorized under 
                title I.
                  (B) Programs and activities authorized under 
                title II.
                  (C) Programs authorized under the 
                Rehabilitation Act of 1973.
                  (D) Secondary career education programs 
                authorized under the Carl D. Perkins Career and 
                Applied Technology Education Act.
                  (E) Postsecondary career education programs 
                authorized under the Carl D. Perkins Career and 
                Applied Technology Education Act.
                  (F) Programs and activities authorized under 
                title II of the Trade Act of 1974.
                  (G) National Apprenticeship Act of 1937.
                  (H) Programs authorized under the Community 
                Services Block Grant Act.
                  (I) Programs authorized under the part A of 
                title IV of the Social Security Act.
                  (J) Programs authorized under State 
                unemployment compensation laws (in accordance 
                with applicable Federal law).
                  (K) Work programs authorized under section 
                6(o) of the Food Stamp Act of 1977.
                  (L) Programs and activities authorized title 
                I of the Housing and Community Development Act 
                of 1974.
                  (M) Programs and activities authorized under 
                the Public Workers and Economic Development Act 
                of 1965.
                  (N) Activities as defined under chapter 41 of 
                title 38, United States Code.

           *       *       *       *       *       *       *

  (e) Authority To Consolidate Funds Into Workforce Investment 
Fund.--
          (1) In general.--A State may consolidate funds 
        allotted to a State under an approved application under 
        subsection (d) into the Workforce Investment Fund under 
        section 132(b) in order to reduce inefficiencies in the 
        administration of federally-funded State and local 
        employment and training programs.
          (2) Treatment of funds.--
                  (A) In general.--Notwithstanding subsection 
                (c), a State with an approved application under 
                subsection (d) may treat any and all funds 
                consolidated into the Workforce Investment Fund 
                as if they were original funds allotted to a 
                State under section 132(b).
                  (B) Applicability.--Such a State shall 
                continue to make reservations, except the 
                reservation under section 133(a)(1), and 
                allotments in accordance with section 
                133(b)(2).
          (3) Special Rule.--A State may not consolidate funds 
        allocated to the State under the Carl D. Perkins Career 
        and Technical Education Act of 2006 and funds allocated 
        to the State under the Rehabilitation Act of 1973.

[SEC. 502. DEFINITIONS FOR INDICATORS OF PERFORMANCE.

  [(a) In General.--In order to ensure nationwide comparability 
of performance data, the Secretary of Labor and the Secretary 
of Education, after consultation with the representatives 
described in subsection (b), shall issue definitions for 
indicators of performance and levels of performance established 
under titles I and II.
  [(b) Representatives.--The representatives referred to in 
subsection (a) are representatives of States (as defined in 
section 101) and political subdivisions, business and industry, 
employees, eligible providers of employment and training 
activities (as defined in section 101), educators, participants 
in activities carried out under this Act, State Directors of 
adult education, providers of adult education, providers of 
literacy services, individuals with expertise in serving the 
employment and training needs of eligible youth (as defined in 
section 101), parents, and other interested parties, with 
expertise regarding activities authorized under this Act.

[SEC. 503. INCENTIVE GRANTS.

  [(a) In General.--Beginning on July 1, 2000, the Secretary 
shall award a grant to each State that exceeds the State 
adjusted levels of performance for title I, the adjusted levels 
of performance for title II, and the levels of performance for 
programs under Public Law 105-332 (20 U.S.C. 2301 et seq.), for 
the purpose of carrying out an innovative program consistent 
with the requirements of any one or more of the programs within 
title I, title II, or such Public Law, respectively.
  [(b) Application.--
          [(1) In general.--The Secretary may provide a grant 
        to a State under subsection (a) only if the State 
        submits an application to the Secretary for the grant 
        that meets the requirements of paragraph (2).
          [(2) Requirements.--The Secretary may review an 
        application described in paragraph (1) only to ensure 
        that the application contains the following assurances:
                  [(A) The legislature of the State was 
                consulted with respect to the development of 
                the application.
                  [(B) The application was approved by the 
                Governor, the eligible agency (as defined in 
                section 203), and the State agency responsible 
                for programs established under Public Law 105-
                332 (20 U.S.C. 2301 et seq.).
                  [(C) The State and the eligible agency, as 
                appropriate, exceeded the State adjusted levels 
                of performance for title I, the expected levels 
                of performance for title II, and the levels of 
                performance for programs under Public Law 105-
                332 (20 U.S.C. 2301 et seq.).
  [(c) Amount.--
          [(1) Minimum and maximum grant amounts.--Subject to 
        paragraph (2), a grant provided to a State under 
        subsection (a) shall be awarded in an amount that is 
        not less than $750,000 and not more than $3,000,000.
          [(2) Proportionate reduction.--If the amount 
        available for grants under this section for a fiscal 
        year is insufficient to award a grant to each State or 
        eligible agency that is eligible for a grant, the 
        Secretary shall reduce the minimum and maximum grant 
        amount by a uniform percentage.
  [(d) Notwithstanding any other provision of this section, for 
fiscal year 2000, the Secretary shall not consider the expected 
levels of performance under Public Law 105-332 (20 U.S.C. 2301 
et seq.) and shall not award a grant under subsection (a) based 
on the levels of performance for that Act.]

           *       *       *       *       *       *       *

[SEC. 506. TRANSITION PROVISIONS.

  [(a) Workforce Investment Systems.--The Secretary of Labor 
shall take such actions as the Secretary determines to be 
appropriate to provide for the orderly transition from any 
authority under the Job Training Partnership Act (29 U.S.C. 
1501 et seq.) to the workforce investment systems established 
under title I of this Act. Such actions shall include the 
provision of guidance relating to the designation of State 
workforce investment boards, local workforce investment areas, 
and local workforce investment boards described in such title.
  [(b) Adult Education and Literacy Programs.--
          [(1) In general.--The Secretary of Education shall 
        take such actions as the Secretary determines to be 
        appropriate to provide for the transition from any 
        authority under the Adult Education Act (20 U.S.C. 1201 
        et seq.) to any authority under the Adult Education and 
        Family Literacy Act (as added by title II of this Act).
          [(2) Limitation.--The authority to take actions under 
        paragraph (1) shall apply only for the 1-year period 
        beginning on the date of the enactment of this Act.
  [(c) Regulations.--
          [(1) Interim final regulations.--Not later than 180 
        days after the date of the enactment of this Act, the 
        Secretary of Labor shall develop and publish in the 
        Federal Register interim final regulations relating to 
        the transition to, and implementation of, this Act.
          [(2) Final regulations.--Not later than December 31, 
        1999, the Secretary shall develop and publish in the 
        Federal Register final regulations relating to the 
        transition to, and implementation of, this Act.
  [(d) Expenditure of Funds During Transition.--
          [(1) In general.--Subject to paragraph (2) and in 
        accordance with regulations developed under subsection 
        (c), States, grant recipients, administrative entities, 
        and other recipients of financial assistance under the 
        Job Training Partnership Act (29 U.S.C. 1501 et seq.) 
        or under this Act may expend funds received under the 
        Job Training Partnership Act or under this Act, prior 
        to July 1, 2000, in order to plan and implement 
        programs and activities authorized under this Act.
          [(2) Additional requirements.--Not to exceed 2 
        percent of any allotment to any State from amounts 
        appropriated under the Job Training Partnership Act or 
        under this Act for fiscal year 1998 or 1999 may be made 
        available to carry out planning authorized under 
        paragraph (1) and not less than 50 percent of any such 
        amount used to carry out planning authorized under 
        paragraph (1) shall be made available to local entities 
        for the planning purposes described in such paragraph.
  [(e) Reorganization.--Not later than 1 year after the date of 
the enactment of this Act, the Secretary of Labor shall 
reorganize and align functions within the Department of Labor 
and within the Employment and Training Administration in order 
to carry out the duties and responsibilities required by this 
Act (and related laws) in an effective and efficient manner.]

           *       *       *       *       *       *       *

                              ----------                              

                           WAGNER-PEYSER ACT

           *       *       *       *       *       *       *
  [Section 1. In order to promote the establishment and 
maintenance of a national system of public employment offices, 
the United States Employment Service shall be established and 
maintained within the Department of Labor.
  [Sec. 2. For purposes of this Act--
          [(1) the term ``chief elected official'' has the same 
        meaning given that term under the Workforce Investment 
        Act of 1998;
          [(2) the term ``local workforce investment board'' 
        means a local workforce investment board established 
        under section 117 of the Workforce Investment Act of 
        1998;
          [(3) the term ``one-stop delivery system'' means a 
        one-stop delivery system described in section 134(c) of 
        the Workforce Investment Act of 1998;
          [(4) the term ``Secretary'' means the Secretary of 
        Labor; and
          [(5) the term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, Guam, and the Virgin Islands.
  [Sec. 3. (a) The Secretary shall assist in coordinating the 
State public employment services throughout the country and in 
increasing their usefulness by developing and prescribing 
minimum standards of efficiency, assisting them in meeting 
problems peculiar to their localities, promoting uniformity in 
their administrative and statistical procedure, furnishing and 
publishing information as to opportunities for employment and 
other information of value in the operation of the system, and 
maintaining a system for clearing labor between the States.
  [(b) It shall be the duty of the Secretary to assure that 
unemployment insurance and employment service offices in each 
State, as appropriate, upon request of a public agency 
administering or supervising the administration of a State 
program funded under part A of title IV of the Social Security 
Act, of a public agency charged with any duty or responsibility 
under any program or activity authorized or required under part 
D of title IV of such Act, or of a State agency charged with 
the administration of the supplemental nutrition assistance 
program in a State under the Food and Nutrition Act of 2008 (7 
U.S.C. 2011 et seq.), shall (and, notwithstanding any other 
provision of law, is authorized to) furnish to such agency 
making the request, from any data contained in the files of any 
such office, information with respect to any individual 
specified in the request as to (1) whether such individual is 
receiving, has received, or has made application for, 
unemployment compensation, and the amount of any such 
compensation being received by such individual, (2) the current 
(or most recent) home address of such individual, and (3) 
whether such individual has refused an offer of employment and, 
if so, a description of the employment so offered and the 
terms, conditions, and rate of pay therefor.
  [(c) The Secretary shall--
          [(1) assist in the coordination and development of a 
        nationwide system of public labor exchange services, 
        provided as part of the one-stop customer service 
        systems of the States;
          [(2) assist in the development of continuous 
        improvement models for such nationwide system that 
        ensure private sector satisfaction with the system and 
        meet the demands of jobseekers relating to the system; 
        and
          [(3) ensure, for individuals otherwise eligible to 
        receive unemployment compensation, the provision of 
        reemployment services and other activities in which the 
        individuals are required to participate to receive the 
        compensation.
  [Sec. 4. In order to obtain the benefits of appropriations 
apportioned under section 5, a State shall, pursuant to State 
statute, accept the provisions of this Act and, in accordance 
with such State statute, the Governor shall designate or 
authorize the creation of a State agency vested with all powers 
necessary to cooperate with the Secretary under this Act.
  [Sec. 5. (a) There is authorized to be appropriated, out of 
any money in the Treasury not otherwise appropriated, such 
amounts from time to time as the Congress may deem necessary to 
carry out the purposes of this Act.
  [(b) The Secretary shall from time to time certify to the 
Secretary of the Treasury for payment to each State which--
          [(1) except in the case of Guam, has an unemployment 
        compensation law approved by the Secretary under the 
        Federal Unemployment Tax Act and is found to be in 
        compliance with section 303 of the Social Security Act, 
        as amended,
          [(2) is found to have coordinated the public 
        employment services with the provision of unemployment 
        insurance claimant services, and
          [(3) is found to be in compliance with this Act,
such amounts as the Secretary determines to be necessary for 
allotment in accordance with section 6.
  [(c)(1) Beginning with fiscal year 1985 and thereafter 
appropriations for any fiscal year for programs and activities 
assisted or conducted under this Act shall be available for 
obligation only on the basis of a program year. The program 
year shall begin on July 1 in the fiscal year for which the 
appropriation is made.
  [(2) Funds obligated for any program year may be expended by 
the State during that program year and the two succeeding 
program years and no amount shall be deobligated on account of 
a rate of expenditure which is consistent with the program 
plan.
  [(3)(A) Appropriations for fiscal year 1984 shall be 
available both to fund activities for the period between 
October 1, 1983, and July 1, 1984, and for the program year 
beginning July 1, 1984.
  [(B) There are authorized to be appropriated such additional 
sums as may be necessary to carry out the provisions of this 
paragraph for the transition to program year funding.
  [Sec. 6. (a) From the amounts appropriated pursuant to 
section 5 for each fiscal year, the Secretary shall first allot 
to Guam and the Virgin Islands an amount which, in relation to 
the total amount available for the fiscal year, is equal to the 
allotment percentage which each received of amounts available 
under this Act in fiscal year 1983.
  [(b)(1) Subject to paragraphs (2), (3), and (4) of this 
subsection, the Secretary shall allot the remainder of the sums 
appropriated and certified pursuant to section 5 of this Act 
for each fiscal year among the States as follows:
          [(A) two-thirds of such sums shall be allotted on the 
        basis of the relative number of individuals in the 
        civilian labor force in each State as compared to the 
        total number of such individuals in all States; and
          [(B) one-third of such sums shall be allotted on the 
        basis of the relative number of unemployed individuals 
        in each State as compared to the total number of such 
        individuals in all States.
        For purposes of this paragraph, the number of 
        individuals in the civilian labor force and the number 
        of unemployed individuals shall be based on data for 
        the most recent calendar year available, as determined 
        by the Secretary.
  [(2) No State's allotment under this section for any fiscal 
year shall be less than 90 percent of its allotment percentage 
for the fiscal year preceding the fiscal year for which the 
determination is made. For the purpose of this section, the 
Secretary shall determine the allotment percentage for each 
State (including Guam and the Virgin Islands) for fiscal year 
1984 which is the percentage that the State received under this 
Act for fiscal year 1983 of the total amounts available for 
payments to all States for such fiscal year. For each 
succeeding fiscal year, the allotment percentage for each such 
State shall be the percentage that the State received under 
this Act for the preceding fiscal year of the total amounts 
available for allotments for all States for such fiscal year.
  [(3) For each fiscal year, no State shall receive a total 
allotment under paragraphs (1) and (2) which is less than 0.28 
percent of the total amount available for allotments for all 
States.
  [(4) The Secretary shall reserve such amount, not to exceed 3 
percent of the sums available for allotments under this section 
for each fiscal year, as shall be necessary to assure that each 
State will have a total allotment under this section sufficient 
to provide staff and other resources necessary to carry out 
employment service activities and related administrative and 
support functions on a statewide basis.
  [(5) The Secretary shall, not later than March 15 of fiscal 
year 1983 and each succeeding fiscal year, provide preliminary 
planning estimates and shall, not later than May 15 of each 
such fiscal year, provide final planning estimates, showing 
each State's projected allocation for the following year.
  [Sec. 7. (a) Ninety percent of the sums allotted to each 
State pursuant to section 6 may be used--
          [(1) for job search and placement services to job 
        seekers including counseling, testing, occupational and 
        labor market information, assessment, and referral to 
        employers;
          [(2) for appropriate recruitment services and special 
        technical services for employers; and
          [(3) for any of the following activities:
                  [(A) evaluation of programs;
                  [(B) developing linkages between services 
                funded under this Act and related Federal or 
                State legislation, including the provision of 
                labor exchange services at education sites;
                  [(C) providing services for workers who have 
                received notice of permanent layoff or 
                impending layoff, or workers in occupations 
                which are experiencing limited demand due to 
                technological change, impact of imports, or 
                plant closures;
                  [(D) developing and providing labor market 
                and occupational information;
                  [(E) developing a management information 
                system and compiling and analyzing reports 
                therefrom; and
                  [(F) administering the work test for the 
                State unemployment compensation system and 
                providing job finding and placement services 
                for unemployment insurance claimants.
  [(b) Ten percent of the sums allotted to each State pursuant 
to section 6 shall be reserved for use in accordance with this 
subsection by the Governor of each such State to provide--
          [(1) performance incentives for public employment 
        service offices and programs, consistent with 
        performance standards established by the Secretary, 
        taking into account direct or indirect placements 
        (including those resulting from self-directed job 
        search or group job search activities assisted by such 
        offices or programs), wages on entered employment, 
        retention, and other appropriate factors;
          [(2) services for groups with special needs, carried 
        out pursuant to joint agreements between the employment 
        service and the appropriate local workforce investment 
        board and chief elected official or officials or other 
        public agencies or private nonprofit organizations; and
          [(3) the extra costs of exemplary models for 
        delivering services of the types described in 
        subsection (a).
  [(c)(1) Funds made available to States under this section may 
be used to provide additional funds under an applicable program 
if--
          [(A) such program otherwise meets the requirements of 
        this Act and the requirements of the applicable 
        program;
          [(B) such program serves the same individuals that 
        are served under this Act;
          [(C) such program provides services in a coordinated 
        manner with services provided under this Act; and
          [(D) such funds would be used to supplement, and not 
        supplant, funds provided from non-Federal sources.
  [(2) For purposes of this subsection, the term ``applicable 
program'' means any workforce investment activity carried out 
under the Workforce Investment Act of 1998.
  [(d) In addition to the services and activities otherwise 
authorized by this Act, the Secretary or any State agency 
designated under this Act may perform such other services and 
activities as shall be specified in contracts for payment or 
reimbursement of the costs thereof made with the Secretary or 
with any Federal, State, or local public agency, or 
administrative entity under the Workforce Investment Act of 
1998, or private nonprofit organization.
  [(e) All job search, placement, recruitment, labor employment 
statistics, and other labor exchange services authorized under 
subsection (a) shall be provided, consistent with the other 
requirements of this Act, as part of the one-stop delivery 
system established by the State.
  [Sec. 8. (a) Any State desiring to receive assistance under 
this Act shall submit to the Secretary, as part of the State 
plan submitted under section 112 of the Workforce Investment 
Act of 1998, detailed plans for carrying out the provisions of 
this Act within such State.
  [(b) Such plans shall include provision for the promotion and 
development of employment opportunities for handicapped persons 
and for job counseling and placement of such persons, and for 
the designation of at least one person in each State or Federal 
employment office, whose duties shall include the effectuation 
of such purposes. In those States where a State board, 
department, or agency exists which is charged with the 
administration of State laws for vocational rehabilitation of 
physically handicapped persons, such plans shall include 
provision for cooperation between such board, department, or 
agency and the agency designated to cooperate with the United 
States Employment Service under this Act.
  [(c) The part of the State plan described in subsection (a) 
shall include the information described in paragraphs (8) and 
(14) of section 112(b) of the Workforce Investment Act of 1998.
  [(d) If such detailed plans are in conformity with the 
provisions of this Act and reasonably appropriate and adequate 
to carry out its purposes, they shall be approved by the 
Secretary of Labor and due notice of such approval shall be 
given to the State agency.
  [Sec. 9. (a)(1) Each State shall establish such fiscal 
control and fund accounting procedures as may be necessary to 
assure the proper disbursal of, and accounting for, Federal 
funds paid to the recipient under this Act. The Director of the 
Office of Management and Budget, in consultation with the 
Comptroller General of the United States, shall establish 
guidance for the proper performance of audits. Such guidance 
shall include a review of fiscal controls and fund accounting 
procedures established by States under this section.
  [(2) At least once every two years, the State shall prepare 
or have prepared an independent financial and compliance audit 
of funds received under this Act.
  [(3) Each audit shall be conducted in accordance with 
applicable auditing standards set forth in the financial and 
compliance element of the Standards for Audit of Governmental 
Organizations, Programs, Activities, and Functions issued by 
the Comptroller General of the United States.
  [(b)(1) The Comptroller General of the United States shall 
evaluate the expenditures by States of funds received under 
this Act in order to assure that expenditures are consistent 
with the provisions of this Act and to determine the 
effectiveness of the State in accomplishing the purposes of 
this Act. The Comptroller General shall conduct evaluations 
whenever determined necessary and shall periodically report to 
the Congress on the findings of such evaluations.
  [(2) Nothing in this Act shall be deemed to relieve the 
Inspector General of the Department of Labor of his 
responsibilities under the Inspector General Act.
  [(3) For the purpose of evaluating and reviewing programs 
established or provided for by this Act, the Comptroller 
General shall have access to and the right to copy any books, 
accounts, records, correspondence, or other documents pertinent 
to such programs that are in the possession, custody, or 
control of the State.
  [(c) Each State shall repay to the United States amounts 
found not to have been expended in accordance with this Act. No 
such finding shall be made except after notice and opportunity 
for a fair hearing. The Secretary may offset such amounts 
against any other amount to which the recipient is or may be 
entitled under this Act.
  [Sec. 10. (a) Each State shall keep records that are 
sufficient to permit the preparation of reports required by 
this Act and to permit the tracing of funds to a level of 
expenditure adequate to insure that the funds have not been 
spent unlawfully.
  [(b)(1) The Secretary may investigate such facts, conditions, 
practices, or other matters which the Secretary finds necessary 
to determine whether any State receiving funds under this Act 
or any official of such State has violated any provision of 
this Act.
  [(2)(A) In order to evaluate compliance with the provisions 
of this Act, the Secretary shall conduct investigations of the 
use of funds received by States under this Act.
  [(B) In order to insure compliance with the provisions of 
this Act, the Comptroller General of the United States may 
conduct investigations of the use of funds received under this 
Act by any State.
  [(3) In conducting any investigation under this Act, the 
Secretary or the Comptroller General of the United States may 
not request new compilation of information not readily 
available to such State.
  [(c) Each State receiving funds under this Act shall--
          [(1) make such reports concerning its operations and 
        expenditures in such form and containing such 
        information as shall be prescribed by the Secretary, 
        and
          [(2) establish and maintain a management information 
        system in accordance with guidelines established by the 
        Secretary designed to facilitate the compilation and 
        analysis of programmatic and financial data necessary 
        for reporting, monitoring, and evaluating purposes.
  [Sec. 11. In carrying out the provisions of this Act the 
Secretary is authorized and directed to provide for the giving 
of notice of strikes or lockouts to applicants before they are 
referred to employment.
  [Sec. 12. The Secretary is hereby authorized to make such 
rules and regulations as may be necessary to carry out the 
provisions of this Act.
  [Sec. 13. (a) The Secretary is authorized to establish 
performance standards for activities under this Act which shall 
take into account the differences in priorities reflected in 
State plans.
  [(b)(1) Nothing in this Act shall be construed to prohibit 
the referral of any applicant to private agencies as long as 
the applicant is not charged a fee.
  [(2) No funds paid under this Act may be used by any State 
for advertising in newspapers for high paying jobs unless such 
State submits an annual report to the Secretary beginning in 
December 1984 concerning such advertising and the 
justifications therefor, and the justification may include that 
such jobs are part of a State industrial development effort.
  [Sec. 14. There are authorized to be appropriated such sums 
as may be necessary to enable the Secretary to provide funds 
through reimbursable agreements with the States to operate 
statistical programs which are essential for development of 
estimates of the gross national product and other national 
statistical series, including those related to employment and 
unemployment.

[SEC. 15. EMPLOYMENT STATISTICS.

  [(a) System Content.--
          [(1) In general.--The Secretary, in accordance with 
        the provisions of this section, shall oversee the 
        development, maintenance, and continuous improvement of 
        a nationwide employment statistics system of employment 
        statistics that includes--
                  [(A) statistical data from cooperative 
                statistical survey and projection programs and 
                data from administrative reporting systems 
                that, taken together, enumerate, estimate, and 
                project employment opportunities and conditions 
                at national, State, and local levels in a 
                timely manner, including statistics on--
                          [(i) employment and unemployment 
                        status of national, State, and local 
                        populations, including self-employed, 
                        part-time, and seasonal workers;
                          [(ii) industrial distribution of 
                        occupations, as well as current and 
                        projected employment opportunities, 
                        wages, benefits (where data is 
                        available), and skill trends by 
                        occupation and industry, with 
                        particular attention paid to State and 
                        local conditions;
                          [(iii) the incidence of, industrial 
                        and geographical location of, and 
                        number of workers displaced by, 
                        permanent layoffs and plant closings; 
                        and
                          [(iv) employment and earnings 
                        information maintained in a 
                        longitudinal manner to be used for 
                        research and program evaluation;
                  [(B) information on State and local 
                employment opportunities, and other appropriate 
                statistical data related to labor market 
                dynamics, which--
                          [(i) shall be current and 
                        comprehensive;
                          [(ii) shall meet the needs identified 
                        through the consultations described in 
                        subparagraphs (A) and (B) of subsection 
                        (e)(2); and
                          [(iii) shall meet the needs for the 
                        information identified in section 
                        134(d);
                  [(C) technical standards (which the Secretary 
                shall publish annually) for data and 
                information described in subparagraphs (A) and 
                (B) that, at a minimum, meet the criteria of 
                chapter 35 of title 44, United States Code;
                  [(D) procedures to ensure compatibility and 
                additivity of the data and information 
                described in subparagraphs (A) and (B) from 
                national, State, and local levels;
                  [(E) procedures to support standardization 
                and aggregation of data from administrative 
                reporting systems described in subparagraph (A) 
                of employment-related programs;
                  [(F) analysis of data and information 
                described in subparagraphs (A) and (B) for uses 
                such as--
                          [(i) national, State, and local 
                        policymaking;
                          [(ii) implementation of Federal 
                        policies (including allocation 
                        formulas);
                          [(iii) program planning and 
                        evaluation; and
                          [(iv) researching labor market 
                        dynamics;
                  [(G) wide dissemination of such data, 
                information, and analysis in a user-friendly 
                manner and voluntary technical standards for 
                dissemination mechanisms; and
                  [(H) programs of--
                          [(i) training for effective data 
                        dissemination;
                          [(ii) research and demonstration; and
                          [(iii) programs and technical 
                        assistance.
          [(2) Information to be confidential.--
                  [(A) In general.--No officer or employee of 
                the Federal Government or agent of the Federal 
                Government may--
                          [(i) use any submission that is 
                        furnished for exclusively statistical 
                        purposes under the provisions of this 
                        section for any purpose other than the 
                        statistical purposes for which the 
                        submission is furnished;
                          [(ii) make any publication or media 
                        transmittal of the data contained in 
                        the submission described in clause (i) 
                        that permits information concerning 
                        individual subjects to be reasonably 
                        inferred by either direct or indirect 
                        means; or
                          [(iii) permit anyone other than a 
                        sworn officer, employee, or agent of 
                        any Federal department or agency, or a 
                        contractor (including an employee of a 
                        contractor) of such department or 
                        agency, to examine an individual 
                        submission described in clause (i);
                without the consent of the individual, agency, 
                or other person who is the subject of the 
                submission or provides that submission.
                  [(B) Immunity from legal process.--Any 
                submission (including any data derived from the 
                submission) that is collected and retained by a 
                Federal department or agency, or an officer, 
                employee, agent, or contractor of such a 
                department or agency, for exclusively 
                statistical purposes under this section shall 
                be immune from the legal process and shall not, 
                without the consent of the individual, agency, 
                or other person who is the subject of the 
                submission or provides that submission, be 
                admitted as evidence or used for any purpose in 
                any action, suit, or other judicial or 
                administrative proceeding.
                  [(C) Rule of construction.--Nothing in this 
                section shall be construed to provide immunity 
                from the legal process for such submission 
                (including any data derived from the 
                submission) if the submission is in the 
                possession of any person, agency, or entity 
                other than the Federal Government or an 
                officer, employee, agent, or contractor of the 
                Federal Government, or if the submission is 
                independently collected, retained, or produced 
                for purposes other than the purposes of this 
                Act.
  [(b) System Responsibilities.--
          [(1) In general.--The employment statistics system 
        described in subsection (a) shall be planned, 
        administered, overseen, and evaluated through a 
        cooperative governance structure involving the Federal 
        Government and States.
          [(2) Duties.--The Secretary, with respect to data 
        collection, analysis, and dissemination of labor 
        employment statistics for the system, shall carry out 
        the following duties:
                  [(A) Assign responsibilities within the 
                Department of Labor for elements of the 
                employment statistics system described in 
                subsection (a) to ensure that all statistical 
                and administrative data collected is consistent 
                with appropriate Bureau of Labor Statistics 
                standards and definitions.
                  [(B) Actively seek the cooperation of other 
                Federal agencies to establish and maintain 
                mechanisms for ensuring complementarity and 
                nonduplication in the development and operation 
                of statistical and administrative data 
                collection activities.
                  [(C) Eliminate gaps and duplication in 
                statistical undertakings, with the 
                systemization of wage surveys as an early 
                priority.
                  [(D) In collaboration with the Bureau of 
                Labor Statistics and States, develop and 
                maintain the elements of the employment 
                statistics system described in subsection (a), 
                including the development of consistent 
                procedures and definitions for use by the 
                States in collecting the data and information 
                described in subparagraphs (A) and (B) of 
                subsection (a)(1).
                  [(E) Establish procedures for the system to 
                ensure that--
                          [(i) such data and information are 
                        timely;
                          [(ii) paperwork and reporting for the 
                        system are reduced to a minimum; and
                          [(iii) States and localities are 
                        fully involved in the development and 
                        continuous improvement of the system at 
                        all levels, including ensuring the 
                        provision, to such States and 
                        localities, of budget information 
                        necessary for carrying out their 
                        responsibilities under subsection (e).
  [(c) Annual Plan.--The Secretary, working through the Bureau 
of Labor Statistics, and in cooperation with the States, and 
with the assistance of other appropriate Federal agencies, 
shall prepare an annual plan which shall be the mechanism for 
achieving cooperative management of the nationwide employment 
statistics system described in subsection (a) and the statewide 
employment statistics systems that comprise the nationwide 
system. The plan shall--
          [(1) describe the steps the Secretary has taken in 
        the preceding year and will take in the following 5 
        years to carry out the duties described in subsection 
        (b)(2);
          [(2) include a report on the results of an annual 
        consumer satisfaction review concerning the performance 
        of the system, including the performance of the system 
        in addressing the needs of Congress, States, 
        localities, employers, jobseekers, and other consumers;
          [(3) evaluate the performance of the system and 
        recommend needed improvements, taking into 
        consideration the results of the consumer satisfaction 
        review, with particular attention to the improvements 
        needed at the State and local levels;
          [(4) justify the budget request for annual 
        appropriations by describing priorities for the fiscal 
        year succeeding the fiscal year in which the plan is 
        developed and priorities for the 5 subsequent fiscal 
        years for the system;
          [(5) describe current (as of the date of the 
        submission of the plan) spending and spending needs to 
        carry out activities under this section, including the 
        costs to States and localities of meeting the 
        requirements of subsection (e)(2); and
          [(6) describe the involvement of States in the 
        development of the plan, through formal consultations 
        conducted by the Secretary in cooperation with 
        representatives of the Governors of every State, and 
        with representatives of local workforce investment 
        boards, pursuant to a process established by the 
        Secretary in cooperation with the States.
  [(d) Coordination With the States.--The Secretary, working 
through the Bureau of Labor Statistics, and in cooperation with 
the States, shall--
          [(1) develop the annual plan described in subsection 
        (c) and address other employment statistics issues by 
        holding formal consultations, at least once each 
        quarter (beginning with the calendar quarter in which 
        the Workforce Investment Act of 1998 is enacted) on the 
        products and administration of the nationwide 
        employment statistics system; and
          [(2) hold the consultations with representatives from 
        each of the 10 Federal regions of the Department of 
        Labor, elected (pursuant to a process established by 
        the Secretary) by and from the State employment 
        statistics directors affiliated with the State agencies 
        that perform the duties described in subsection (e)(2).
  [(e) State Responsibilities.--
          [(1) Designation of state agency.--In order to 
        receive Federal financial assistance under this 
        section, the Governor of a State shall--
                  [(A) designate a single State agency to be 
                responsible for the management of the portions 
                of the employment statistics system described 
                in subsection (a) that comprise a statewide 
                employment statistics system and for the 
                State's participation in the development of the 
                annual plan; and
                  [(B) establish a process for the oversight of 
                such system.
          [(2) Duties.--In order to receive Federal financial 
        assistance under this section, the State agency shall--
                  [(A) consult with State and local employers, 
                participants, and local workforce investment 
                boards about the labor market relevance of the 
                data to be collected and disseminated through 
                the statewide employment statistics system;
                  [(B) consult with State educational agencies 
                and local educational agencies concerning the 
                provision of employment statistics in order to 
                meet the needs of secondary school and 
                postsecondary school students who seek such 
                information;
                  [(C) collect and disseminate for the system, 
                on behalf of the State and localities in the 
                State, the information and data described in 
                subparagraphs (A) and (B) of subsection (a)(1);
                  [(D) maintain and continuously improve the 
                statewide employment statistics system in 
                accordance with this section;
                  [(E) perform contract and grant 
                responsibilities for data collection, analysis, 
                and dissemination for such system;
                  [(F) conduct such other data collection, 
                analysis, and dissemination activities as will 
                ensure an effective statewide employment 
                statistics system;
                  [(G) actively seek the participation of other 
                State and local agencies in data collection, 
                analysis, and dissemination activities in order 
                to ensure complementarity, compatibility, and 
                usefulness of data;
                  [(H) participate in the development of the 
                annual plan described in subsection (c); and
                  [(I) utilize the quarterly records described 
                in section 136(f)(2) of the Workforce 
                Investment Act of 1998 to assist the State and 
                other States in measuring State progress on 
                State performance measures.
          [(3) Rule of construction.--Nothing in this section 
        shall be construed as limiting the ability of a State 
        agency to conduct additional data collection, analysis, 
        and dissemination activities with State funds or with 
        Federal funds from sources other than this section.
  [(f) Nonduplication Requirement.--None of the functions and 
activities carried out pursuant to this section shall duplicate 
the functions and activities carried out under the Carl D. 
Perkins Career and Technical Education Act of 2006 (20 U.S.C. 
2301 et seq.).
  [(g) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for each of the fiscal years 1999 through 2004.
  [(h) Definition.--In this section, the term ``local area'' 
means the smallest geographical area for which data can be 
produced with statistical reliability.]

SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.

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

           *       *       *       *       *       *       *

                              ----------                              

                      OLDER AMERICANS ACT OF 1965

           *       *       *       *       *       *       *
          [TITLE V--COMMUNITY SERVICE SENIOR OPPORTUNITIES ACT

[SEC. 501. SHORT TITLE.

  [This title may be cited as the ``Community Service Senior 
Opportunities Act''.

[SEC. 502. OLDER AMERICAN COMMUNITY SERVICE EMPLOYMENT PROGRAM.

  [(a) In General.--
          [(1) Establishment of program.--To foster individual 
        economic self-sufficiency and promote useful 
        opportunities in community service activities (which 
        shall include community service employment) for 
        unemployed low-income persons who are age 55 or older, 
        particularly persons who have poor employment 
        prospects, and to increase the number of persons who 
        may enjoy the benefits of unsubsidized employment in 
        both the public and private sectors, the Secretary of 
        Labor (referred to in this title as the ``Secretary'') 
        may establish an older American community service 
        employment program.
          [(2) Use of appropriated amounts.--Amounts 
        appropriated to carry out this title shall be used only 
        to carry out the provisions contained in this title.
  [(b) Grant Authority.--
          [(1) Projects.--To carry out this title, the 
        Secretary may make grants to public and nonprofit 
        private agencies and organizations, agencies of a 
        State, and tribal organizations to carry out the 
        program established under subsection (a). Such grants 
        may provide for the payment of costs, as provided in 
        subsection (c), of projects developed by such 
        organizations and agencies in cooperation with the 
        Secretary in order to make such program effective or to 
        supplement such program. The Secretary shall make the 
        grants from allotments made under section 506, and in 
        accordance with section 514. No payment shall be made 
        by the Secretary toward the cost of any project 
        established or administered by such an organization or 
        agency unless the Secretary determines that such 
        project--
                  [(A) will provide community service 
                employment only for eligible individuals except 
                for necessary technical, administrative, and 
                supervisory personnel, and such personnel will, 
                to the fullest extent possible, be recruited 
                from among eligible individuals;
                  [(B)(i) will provide community service 
                employment and other authorized activities for 
                eligible individuals in the community in which 
                such individuals reside, or in nearby 
                communities; or
                  [(ii) if such project is carried out by a 
                tribal organization that receives a grant under 
                this subsection or receives assistance from a 
                State that receives a grant under this 
                subsection, will provide community service 
                employment and other authorized activities for 
                such individuals, including those who are 
                Indians residing on an Indian reservation, as 
                defined in section 2601 of the Energy Policy 
                Act of 1992 (25 U.S.C. 3501);
                  [(C) will comply with an average 
                participation cap for eligible individuals (in 
                the aggregate) of--
                          [(i) 27 months; or
                          [(ii) pursuant to the request of a 
                        grantee, an extended period of 
                        participation established by the 
                        Secretary for a specific project area 
                        for such grantee, up to a period of not 
                        more than 36 months, if the Secretary 
                        determines that extenuating 
                        circumstances exist relating to the 
                        factors identified in section 
                        513(a)(2)(D) that justify such an 
                        extended period for the program year 
                        involved;
                  [(D) will employ eligible individuals in 
                service related to publicly owned and operated 
                facilities and projects, or projects sponsored 
                by nonprofit organizations (excluding political 
                parties exempt from taxation under section 
                501(c)(3) of the Internal Revenue Code of 
                1986), but excluding projects involving the 
                construction, operation, or maintenance of any 
                facility used or to be used as a place for 
                sectarian religious instruction or worship;
                  [(E) will contribute to the general welfare 
                of the community, which may include support for 
                children, youth, and families;
                  [(F) will provide community service 
                employment and other authorized activities for 
                eligible individuals;
                  [(G)(i) will not reduce the number of 
                employment opportunities or vacancies that 
                would otherwise be available to individuals not 
                participating in the program;
                  [(ii) will not displace currently employed 
                workers (including partial displacement, such 
                as a reduction in the hours of nonovertime 
                work, wages, or employment benefits);
                  [(iii) will not impair existing contracts or 
                result in the substitution of Federal funds for 
                other funds in connection with work that would 
                otherwise be performed; and
                  [(iv) will not employ or continue to employ 
                any eligible individual to perform the same 
                work or substantially the same work as that 
                performed by any other individual who is on 
                layoff;
                  [(H) will coordinate activities with training 
                and other services provided under title I of 
                the Workforce Investment Act of 1998 (29 U.S.C. 
                2801 et seq.), including utilizing the one-stop 
                delivery system of the local workforce 
                investment areas involved to recruit eligible 
                individuals to ensure that the maximum number 
                of eligible individuals will have an 
                opportunity to participate in the project;
                  [(I) will include such training (such as work 
                experience, on-the-job training, and classroom 
                training) as may be necessary to make the most 
                effective use of the skills and talents of 
                those individuals who are participating, and 
                will provide for the payment of the reasonable 
                expenses of individuals being trained, 
                including a reasonable subsistence allowance 
                equivalent to the wage described in 
                subparagraph (J);
                  [(J) will ensure that safe and healthy 
                employment conditions will be provided, and 
                will ensure that participants employed in 
                community service and other jobs assisted under 
                this title will be paid wages that shall not be 
                lower than whichever is the highest of--
                          [(i) the minimum wage that would be 
                        applicable to such a participant under 
                        the Fair Labor Standards Act of 1938 
                        (29 U.S.C. 201 et seq.), if section 
                        6(a)(1) of such Act (29 U.S.C. 
                        206(a)(1)) applied to the participant 
                        and if the participant were not exempt 
                        under section 13 of such Act (29 U.S.C. 
                        213);
                          [(ii) the State or local minimum wage 
                        for the most nearly comparable covered 
                        employment; or
                          [(iii) the prevailing rates of pay 
                        for individuals employed in similar 
                        public occupations by the same 
                        employer;
                  [(K) will be established or administered with 
                the advice of persons competent in the field of 
                service in which community service employment 
                or other authorized activities are being 
                provided, and of persons who are knowledgeable 
                about the needs of older individuals;
                  [(L) will authorize payment for necessary 
                supportive services costs (including 
                transportation costs) of eligible individuals 
                that may be incurred in training in any project 
                funded under this title, in accordance with 
                rules issued by the Secretary;
                  [(M) will ensure that, to the extent 
                feasible, such project will serve the needs of 
                minority and Indian eligible individuals, 
                eligible individuals with limited English 
                proficiency, and eligible individuals with 
                greatest economic need, at least in proportion 
                to their numbers in the area served and take 
                into consideration their rates of poverty and 
                unemployment;
                  [(N)(i) will prepare an assessment of the 
                participants' skills and talents and their 
                needs for services, except to the extent such 
                project has, for the participant involved, 
                recently prepared an assessment of such skills 
                and talents, and such needs, pursuant to 
                another employment or training program (such as 
                a program under the Workforce Investment Act of 
                1998 (29 U.S.C. 2801 et seq.), the Carl D. 
                Perkins Career and Technical Education Act of 
                2006 (20 U.S.C. 2301 et seq.), or part A of 
                title IV of the Social Security Act (42 U.S.C. 
                601 et seq.)) and will prepare a related 
                service strategy;
                  [(ii) will provide training and employment 
                counseling to eligible individuals based on 
                strategies that identify appropriate employment 
                objectives and the need for supportive 
                services, developed as a result of the 
                assessment and service strategy provided for in 
                clause (i), and provide other appropriate 
                information regarding such project; and
                  [(iii) will provide counseling to 
                participants on their progress in meeting such 
                objectives and satisfying their need for 
                supportive services;
                  [(O) will provide appropriate services for 
                participants, or refer the participants to 
                appropriate services, through the one-stop 
                delivery system of the local workforce 
                investment areas involved as established under 
                section 134(c) of the Workforce Investment Act 
                of 1998 (29 U.S.C. 2864(c)), and will be 
                involved in the planning and operations of such 
                system pursuant to a memorandum of 
                understanding with the local workforce 
                investment board in accordance with section 
                121(c) of such Act (29 U.S.C. 2841(c));
                  [(P) will post in such project workplace a 
                notice, and will make available to each person 
                associated with such project a written 
                explanation--
                          [(i) clarifying the law with respect 
                        to political activities allowable and 
                        unallowable under chapter 15 of title 
                        5, United States Code, applicable to 
                        the project and to each category of 
                        individuals associated with such 
                        project; and
                          [(ii) containing the address and 
                        telephone number of the Inspector 
                        General of the Department of Labor, to 
                        whom questions regarding the 
                        application of such chapter may be 
                        addressed;
                  [(Q) will provide to the Secretary the 
                description and information described in--
                          [(i) paragraph (8), relating to 
                        coordination with other Federal 
                        programs, of section 112(b) of the 
                        Workforce Investment Act of 1998 (29 
                        U.S.C. 2822(b)); and
                          [(ii) paragraph (14), relating to 
                        implementation of one-stop delivery 
                        systems, of section 112(b) of the 
                        Workforce Investment Act of 1998; and
                  [(R) will ensure that entities that carry out 
                activities under the project (including State 
                agencies, local entities, subgrantees, and 
                subcontractors) and affiliates of such entities 
                receive an amount of the administrative cost 
                allocation determined by the Secretary, in 
                consultation with grantees, to be sufficient.
          [(2) Regulations.--The Secretary may establish, 
        issue, and amend such regulations as may be necessary 
        to effectively carry out this title.
          [(3) Assessment and service strategies.--
                  [(A) Prepared under this act.--An assessment 
                and service strategy required by paragraph 
                (1)(N) to be prepared for an eligible 
                individual shall satisfy any condition for an 
                assessment and service strategy or individual 
                employment plan for an adult participant under 
                subtitle B of title I of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2811 et 
                seq.), in order to determine whether such 
                eligible individual also qualifies for 
                intensive or training services described in 
                section 134(d) of such Act (29 U.S.C. 2864(d)).
                  [(B) Prepared under workforce investment act 
                of 1998.--An assessment and service strategy or 
                individual employment plan prepared under 
                subtitle B of title I of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2811 et seq.) 
                for an eligible individual may be used to 
                comply with the requirement specified in 
                subparagraph (A).
  [(c) Federal Share and Use of Funds.--
          [(1) Federal share.--The Secretary may pay a Federal 
        share not to exceed 90 percent of the cost of any 
        project for which a grant is made under subsection (b), 
        except that the Secretary may pay all of such cost if 
        such project is--
                  [(A) an emergency or disaster project; or
                  [(B) a project located in an economically 
                depressed area, as determined by the Secretary 
                in consultation with the Secretary of Commerce 
                and the Secretary of Health and Human Services.
          [(2) Non-federal share.--The non-Federal share shall 
        be in cash or in kind. In determining the amount of the 
        non-Federal share, the Secretary may attribute fair 
        market value to services and facilities contributed 
        from non-Federal sources.
          [(3) Use of funds for administrative costs.--Of the 
        grant amount to be paid under this subsection by the 
        Secretary for a project, not to exceed 13.5 percent 
        shall be available for any fiscal year to pay the 
        administrative costs of such project, except that--
                  [(A) the Secretary may increase the amount 
                available to pay the administrative costs to an 
                amount not to exceed 15 percent of the grant 
                amount if the Secretary determines, based on 
                information submitted by the grantee under 
                subsection (b), that such increase is necessary 
                to carry out such project; and
                  [(B) if the grantee under subsection (b) 
                demonstrates to the Secretary that--
                          [(i) major administrative cost 
                        increases are being incurred in 
                        necessary program components, including 
                        liability insurance, payments for 
                        workers' compensation, costs associated 
                        with achieving unsubsidized placement 
                        goals, and costs associated with other 
                        operation requirements imposed by the 
                        Secretary;
                          [(ii) the number of community service 
                        employment positions in the project or 
                        the number of minority eligible 
                        individuals participating in the 
                        project will decline if the amount 
                        available to pay the administrative 
                        costs is not increased; or
                          [(iii) the size of the project is so 
                        small that the amount of administrative 
                        costs incurred to carry out the project 
                        necessarily exceeds 13.5 percent of the 
                        grant amount;
                the Secretary shall increase the amount 
                available for such fiscal year to pay the 
                administrative costs to an amount not to exceed 
                15 percent of the grant amount.
          [(4) Administrative costs.--For purposes of this 
        title, administrative costs are the costs, both 
        personnel-related and nonpersonnel-related and both 
        direct and indirect, associated with the following:
                  [(A) The costs of performing general 
                administrative functions and of providing for 
                the coordination of functions, such as the 
                costs of--
                          [(i) accounting, budgeting, and 
                        financial and cash management;
                          [(ii) procurement and purchasing;
                          [(iii) property management;
                          [(iv) personnel management;
                          [(v) payroll functions;
                          [(vi) coordinating the resolution of 
                        findings arising from audits, reviews, 
                        investigations, and incident reports;
                          [(vii) audits;
                          [(viii) general legal services;
                          [(ix) developing systems and 
                        procedures, including information 
                        systems, required for administrative 
                        functions;
                          [(x) preparing administrative 
                        reports; and
                          [(xi) other activities necessary for 
                        the general administration of 
                        government funds and associated 
                        programs.
                  [(B) The costs of performing oversight and 
                monitoring responsibilities related to 
                administrative functions.
                  [(C) The costs of goods and services required 
                for administrative functions of the project 
                involved, including goods and services such as 
                rental or purchase of equipment, utilities, 
                office supplies, postage, and rental and 
                maintenance of office space.
                  [(D) The travel costs incurred for official 
                business in carrying out administrative 
                activities or overall management.
                  [(E) The costs of information systems related 
                to administrative functions (such as personnel, 
                procurement, purchasing, property management, 
                accounting, and payroll systems), including the 
                purchase, systems development, and operating 
                costs of such systems.
                  [(F) The costs of technical assistance, 
                professional organization membership dues, and 
                evaluating results obtained by the project 
                involved against stated objectives.
          [(5) Non-federal share of administrative costs.--To 
        the extent practicable, an entity that carries out a 
        project under this title shall provide for the payment 
        of the expenses described in paragraph (4) from non-
        Federal sources.
          [(6) Use of funds for wages and benefits and 
        programmatic activity costs.--
                  [(A) In general.--Amounts made available for 
                a project under this title that are not used to 
                pay for the administrative costs shall be used 
                to pay for the costs of programmatic 
                activities, including the costs of--
                          [(i) participant wages, such benefits 
                        as are required by law (such as 
                        workers' compensation or unemployment 
                        compensation), the costs of physical 
                        examinations, compensation for 
                        scheduled work hours during which an 
                        employer's business is closed for a 
                        Federal holiday, and necessary sick 
                        leave that is not part of an 
                        accumulated sick leave program, except 
                        that no amounts provided under this 
                        title may be used to pay the cost of 
                        pension benefits, annual leave, 
                        accumulated sick leave, or bonuses;
                          [(ii) participant training (including 
                        the payment of reasonable costs of 
                        instructors, classroom rental, training 
                        supplies, materials, equipment, and 
                        tuition), which may be provided prior 
                        to or subsequent to placement and which 
                        may be provided on the job, in a 
                        classroom setting, or pursuant to other 
                        appropriate arrangements;
                          [(iii) job placement assistance, 
                        including job development and job 
                        search assistance;
                          [(iv) participant supportive services 
                        to enable a participant to successfully 
                        participate in a project under this 
                        title, which may include the payment of 
                        reasonable costs of transportation, 
                        health and medical services, special 
                        job-related or personal counseling, 
                        incidentals (such as work shoes, 
                        badges, uniforms, eyeglasses, and 
                        tools), child and adult care, temporary 
                        shelter, and follow-up services; and
                          [(v) outreach, recruitment and 
                        selection, intake, orientation, and 
                        assessments.
                  [(B) Use of funds for wages and benefits.--
                From the funds made available through a grant 
                made under subsection (b), a grantee under this 
                title--
                          [(i) except as provided in clause 
                        (ii), shall use not less than 75 
                        percent of the grant funds to pay the 
                        wages, benefits, and other costs 
                        described in subparagraph (A)(i) for 
                        eligible individuals who are employed 
                        under projects carried out under this 
                        title; or
                          [(ii) that obtains approval for a 
                        request described in subparagraph (C) 
                        may use not less than 65 percent of the 
                        grant funds to pay the wages, benefits, 
                        and other costs described in 
                        subparagraph (A)(i).
                  [(C) Request to use additional funds for 
                programmatic activity costs.--
                          [(i) In general.--A grantee may 
                        submit to the Secretary a request for 
                        approval--
                                  [(I) to use not less than 65 
                                percent of the grant funds to 
                                pay the wages, benefits, and 
                                other costs described in 
                                subparagraph (A)(i);
                                  [(II) to use the percentage 
                                of grant funds described in 
                                paragraph (3) to pay for 
                                administrative costs, as 
                                specified in that paragraph;
                                  [(III) to use not more than 
                                10 percent of the grant funds 
                                for individual participants to 
                                provide activities described in 
                                clauses (ii) and (iv) of 
                                subparagraph (A), in which case 
                                the grantee shall provide (from 
                                the funds described in this 
                                subclause) the subsistence 
                                allowance described in 
                                subsection (b)(1)(I) for those 
                                individual participants who are 
                                receiving training described in 
                                that subsection from the funds 
                                described in this subclause, 
                                but may not use the funds 
                                described in this subclause to 
                                pay for any administrative 
                                costs; and
                                  [(IV) to use the remaining 
                                grant funds to provide 
                                activities described in clauses 
                                (ii) through (v) of 
                                subparagraph (A).
                          [(ii) Contents.--In submitting the 
                        request the grantee shall include in 
                        the request--
                                  [(I) a description of the 
                                activities for which the 
                                grantee will spend the grant 
                                funds described in subclauses 
                                (III) and (IV) of clause (i), 
                                consistent with those 
                                subclauses;
                                  [(II) an explanation 
                                documenting how the provision 
                                of such activities will improve 
                                the effectiveness of the 
                                project, including an 
                                explanation concerning whether 
                                any displacement of eligible 
                                individuals or elimination of 
                                positions for such individuals 
                                will occur, information on the 
                                number of such individuals to 
                                be displaced and of such 
                                positions to be eliminated, and 
                                an explanation concerning how 
                                the activities will improve 
                                employment outcomes for 
                                individuals served, based on 
                                the assessment conducted under 
                                subsection (b)(1)(N); and
                                  [(III) a proposed budget and 
                                work plan for the activities, 
                                including a detailed 
                                description of the funds to be 
                                spent on the activities 
                                described in subclauses (III) 
                                and (IV) of clause (i).
                          [(iii) Submission.--The grantee shall 
                        submit a request described in clause 
                        (i) not later than 90 days before the 
                        proposed date of implementation 
                        contained in the request. Not later 
                        than 30 days before the proposed date 
                        of implementation, the Secretary shall 
                        approve, approve as modified, or reject 
                        the request, on the basis of the 
                        information included in the request as 
                        described in clause (ii).
                  [(D) Report.--Each grantee under subsection 
                (b) shall annually prepare and submit to the 
                Secretary a report documenting the grantee's 
                use of funds for activities described in 
                clauses (i) through (v) of subparagraph (A).
  [(d) Project Description.--Whenever a grantee conducts a 
project within a planning and service area in a State, such 
grantee shall conduct such project in consultation with the 
area agency on aging of the planning and service area and shall 
submit to the State agency and the area agency on aging a 
description of such project to be conducted in the State, 
including the location of the project, 90 days prior to 
undertaking the project, for review and public comment 
according to guidelines the Secretary shall issue to assure 
efficient and effective coordination of projects under this 
title.
  [(e) Pilot, Demonstration, and Evaluation Projects.--
          [(1) In general.--The Secretary, in addition to 
        exercising any other authority contained in this title, 
        shall use funds reserved under section 506(a)(1) to 
        carry out demonstration projects, pilot projects, and 
        evaluation projects, for the purpose of developing and 
        implementing techniques and approaches, and 
        demonstrating the effectiveness of the techniques and 
        approaches, in addressing the employment and training 
        needs of eligible individuals. The Secretary shall 
        enter into such agreements with States, public 
        agencies, nonprofit private organizations, or private 
        business concerns, as may be necessary, to conduct the 
        projects authorized by this subsection. To the extent 
        practicable, the Secretary shall provide an 
        opportunity, prior to the development of a 
        demonstration or pilot project, for the appropriate 
        area agency on aging to submit comments on such a 
        project in order to ensure coordination of activities 
        under this title.
          [(2) Projects.--Such projects may include--
                  [(A) activities linking businesses and 
                eligible individuals, including activities 
                providing assistance to participants 
                transitioning from subsidized activities to 
                private sector employment;
                  [(B) demonstration projects and pilot 
                projects designed to--
                          [(i) attract more eligible 
                        individuals into the labor force;
                          [(ii) improve the provision of 
                        services to eligible individuals under 
                        one-stop delivery systems established 
                        under title I of the Workforce 
                        Investment Act of 1998 (29 U.S.C. 2801 
                        et seq.);
                          [(iii) enhance the technological 
                        skills of eligible individuals; and
                          [(iv) provide incentives to grantees 
                        under this title for exemplary 
                        performance and incentives to 
                        businesses to promote their 
                        participation in the program under this 
                        title;
                  [(C) demonstration projects and pilot 
                projects, as described in subparagraph (B), for 
                workers who are older individuals (but targeted 
                to eligible individuals) only if such 
                demonstration projects and pilot projects are 
                designed to assist in developing and 
                implementing techniques and approaches in 
                addressing the employment and training needs of 
                eligible individuals;
                  [(D) provision of training and technical 
                assistance to support any project funded under 
                this title;
                  [(E) dissemination of best practices relating 
                to employment of eligible individuals; and
                  [(F) evaluation of the activities authorized 
                under this title.
          [(3) Consultation.--To the extent practicable, 
        entities carrying out projects under this subsection 
        shall consult with appropriate area agencies on aging 
        and with other appropriate agencies and entities to 
        promote coordination of activities under this title.

[SEC. 503. ADMINISTRATION.

  [(a) State Plan.--
          [(1) Governor.--For a State to be eligible to receive 
        an allotment under section 506, the Governor of the 
        State shall submit to the Secretary for consideration 
        and approval, a single State plan (referred to in this 
        title as the ``State plan'') that outlines a 4-year 
        strategy for the statewide provision of community 
        service employment and other authorized activities for 
        eligible individuals under this title. The plan shall 
        contain such provisions as the Secretary may require, 
        consistent with this title, including a description of 
        the process used to ensure the participation of 
        individuals described in paragraph (2). Not less often 
        than every 2 years, the Governor shall review the State 
        plan and submit an update to the State plan to the 
        Secretary for consideration and approval.
          [(2) Recommendations.--In developing the State plan 
        prior to its submission to the Secretary, the Governor 
        shall seek the advice and recommendations of--
                  [(A) individuals representing the State 
                agency and the area agencies on aging in the 
                State, and the State and local workforce 
                investment boards established under title I of 
                the Workforce Investment Act of 1998 (29 U.S.C. 
                2801 et seq.);
                  [(B) individuals representing public and 
                nonprofit private agencies and organizations 
                providing employment services, including each 
                grantee operating a project under this title in 
                the State; and
                  [(C) individuals representing social service 
                organizations providing services to older 
                individuals, grantees under title III of this 
                Act, affected communities, unemployed older 
                individuals, community-based organizations 
                serving the needs of older individuals, 
                business organizations, and labor 
                organizations.
          [(3) Comments.--Any State plan submitted by the 
        Governor in accordance with paragraph (1) shall be 
        accompanied by copies of public comments relating to 
        the plan received pursuant to paragraph (7), and a 
        summary of the comments.
          [(4) Plan provisions.--The State plan shall identify 
        and address--
                  [(A) the relationship that the number of 
                eligible individuals in each area bears to the 
                total number of eligible individuals, 
                respectively, in the State;
                  [(B) the relative distribution of eligible 
                individuals residing in rural and urban areas 
                in the State; and
                  [(C) the relative distribution of--
                          [(i) eligible individuals who are 
                        individuals with greatest economic 
                        need;
                          [(ii) eligible individuals who are 
                        minority individuals;
                          [(iii) eligible individuals who are 
                        limited English proficient; and
                          [(iv) eligible individuals who are 
                        individuals with greatest social need;
                  [(D) the current and projected employment 
                opportunities in the State (such as by 
                providing information available under section 
                15 of the Wagner-Peyser Act (29 U.S.C. 49l-2) 
                by occupation), and the type of skills 
                possessed by local eligible individuals;
                  [(E) the localities and populations for which 
                projects of the type authorized by this title 
                are most needed; and
                  [(F) plans for facilitating the coordination 
                of activities of grantees in the State under 
                this title with activities carried out in the 
                State under title I of the Workforce Investment 
                Act of 1998 (29 U.S.C. 2801 et seq.).
          [(5) Governor's recommendations.--Before a proposal 
        for a grant under this title for any fiscal year is 
        submitted to the Secretary, the Governor of the State 
        in which projects are proposed to be conducted under 
        such grant shall be afforded a reasonable opportunity 
        to submit to the Secretary--
                  [(A) recommendations regarding the 
                anticipated effect of each such proposal upon 
                the overall distribution of enrollment 
                positions under this title in the State 
                (including such distribution among urban and 
                rural areas), taking into account the total 
                number of positions to be provided by all 
                grantees in the State;
                  [(B) any recommendations for redistribution 
                of positions to underserved areas as vacancies 
                occur in previously encumbered positions in 
                other areas; and
                  [(C) in the case of any increase in funding 
                that may be available for use in the State 
                under this title for the fiscal year, any 
                recommendations for distribution of newly 
                available positions in excess of those 
                available during the preceding year to 
                underserved areas.
          [(6) Disruptions.--In developing a plan or 
        considering a recommendation under this subsection, the 
        Governor shall avoid disruptions in the provision of 
        services for participants to the greatest possible 
        extent.
          [(7) Determination; review.--
                  [(A) Determination.--In order to effectively 
                carry out this title, each State shall make the 
                State plan available for public comment. The 
                Secretary, in consultation with the Assistant 
                Secretary, shall review the plan and make a 
                written determination with findings and a 
                decision regarding the plan.
                  [(B) Review.--The Secretary may review, on 
                the Secretary's own initiative or at the 
                request of any public or private agency or 
                organization or of any agency of the State, the 
                distribution of projects and services under 
                this title in the State, including the 
                distribution between urban and rural areas in 
                the State. For each proposed reallocation of 
                projects or services in a State, the Secretary 
                shall give notice and opportunity for public 
                comment.
          [(8) Exemption.--The grantees that serve eligible 
        individuals who are older Indians or Pacific Island and 
        Asian Americans with funds reserved under section 
        506(a)(3) may not be required to participate in the 
        State planning processes described in this section but 
        shall collaborate with the Secretary to develop a plan 
        for projects and services to eligible individuals who 
        are Indians or Pacific Island and Asian Americans, 
        respectively.
  [(b) Coordination With Other Federal Programs.--
          [(1) In general.--The Secretary and the Assistant 
        Secretary shall coordinate the program carried out 
        under this title with programs carried out under other 
        titles of this Act, to increase employment 
        opportunities available to older individuals.
          [(2) Programs.--
                  [(A) In general.--The Secretary shall 
                coordinate programs carried out under this 
                title with the program carried out under the 
                Workforce Investment Act of 1998 (29 U.S.C. 
                2801 et seq.), the Community Services Block 
                Grant Act (42 U.S.C. 9901 et seq.), the 
                Rehabilitation Act of 1973 (29 U.S.C. 701 et 
                seq.), the Carl D. Perkins Career and Technical 
                Education Act of 2006 (20 U.S.C. 2301 et seq.), 
                the National and Community Service Act of 1990 
                (42 U.S.C. 12501 et seq.), and the Domestic 
                Volunteer Service Act of 1973 (42 U.S.C. 4950 
                et seq.). The Secretary shall coordinate the 
                administration of this title with the 
                administration of other titles of this Act by 
                the Assistant Secretary to increase the 
                likelihood that eligible individuals for whom 
                employment opportunities under this title are 
                available and who need services under such 
                titles receive such services.
                  [(B) Use of funds.--
                          [(i) Prohibition.--Funds appropriated 
                        to carry out this title may not be used 
                        to carry out any program under the 
                        Workforce Investment Act of 1998, the 
                        Community Services Block Grant Act, the 
                        Rehabilitation Act of 1973, the Carl D. 
                        Perkins Career and Technical Education 
                        Act of 2006, the National and Community 
                        Service Act of 1990, or the Domestic 
                        Volunteer Service Act of 1973.
                          [(ii) Joint activities.--Clause (i) 
                        shall not be construed to prohibit 
                        carrying out projects under this title 
                        jointly with programs, projects, or 
                        activities under any Act specified in 
                        clause (i), or from carrying out 
                        section 511.
          [(3) Informational materials on age discrimination.--
        The Secretary shall distribute to grantees under this 
        title, for distribution to program participants, and at 
        no cost to grantees or participants, informational 
        materials developed and supplied by the Equal 
        Employment Opportunity Commission and other appropriate 
        Federal agencies that the Secretary determines are 
        designed to help participants identify age 
        discrimination and to understand their rights under the 
        Age Discrimination in Employment Act of 1967 (29 U.S.C. 
        621 et seq.).
  [(c) Use of Services, Equipment, Personnel, and Facilities.--
In carrying out this title, the Secretary may use the services, 
equipment, personnel, and facilities of Federal and other 
agencies, with their consent, with or without reimbursement, 
and on a similar basis cooperate with other public and 
nonprofit private agencies and organizations in the use of 
services, equipment, and facilities.
  [(d) Payments.--Payments under this title may be made in 
advance or by way of reimbursement and in such installments as 
the Secretary may determine.
  [(e) No Delegation of Functions.--The Secretary shall not 
delegate any function of the Secretary under this title to any 
other Federal officer or entity.
  [(f) Compliance.--
          [(1) Monitoring.--The Secretary shall monitor 
        projects for which grants are made under this title to 
        determine whether the grantees are complying with rules 
        and regulations issued to carry out this title 
        (including the statewide planning, consultation, and 
        coordination requirements of this title).
          [(2) Compliance with uniform cost principles and 
        administrative requirements.--Each grantee that 
        receives funds under this title shall comply with the 
        applicable uniform cost principles and appropriate 
        administrative requirements for grants and contracts 
        that are applicable to the type of entity that receives 
        funds, as issued as circulars or rules of the Office of 
        Management and Budget.
          [(3) Reports.--Each grantee described in paragraph 
        (2) shall prepare and submit a report in such manner 
        and containing such information as the Secretary may 
        require regarding activities carried out under this 
        title.
          [(4) Records.--Each grantee described in paragraph 
        (2) shall keep records that--
                  [(A) are sufficient to permit the preparation 
                of reports required by this title;
                  [(B) are sufficient to permit the tracing of 
                funds to a level of expenditure adequate to 
                ensure that the funds have not been spent 
                unlawfully; and
                  [(C) contain any other information that the 
                Secretary determines to be appropriate.
  [(g) Evaluations.--The Secretary shall establish by rule and 
implement a process to evaluate, in accordance with section 
513, the performance of projects carried out and services 
provided under this title. The Secretary shall report to 
Congress, and make available to the public, the results of each 
such evaluation and shall use such evaluation to improve 
services delivered by, or the operation of, projects carried 
out under this title.

[SEC. 504. PARTICIPANTS NOT FEDERAL EMPLOYEES.

  [(a) Inapplicability of Certain Provisions Covering Federal 
Employees.--Eligible individuals who are participants in any 
project funded under this title shall not be considered to be 
Federal employees as a result of such participation and shall 
not be subject to part III of title 5, United States Code.
  [(b) Workers' Compensation.--No grant or subgrant shall be 
made and no contract or subcontract shall be entered into under 
this title with an entity who is, or whose employees are, under 
State law, exempted from operation of the State workers' 
compensation law, generally applicable to employees, unless the 
entity shall undertake to provide either through insurance by a 
recognized carrier or by self-insurance, as authorized by State 
law, that the persons employed under the grant, subgrant, 
contract, or subcontract shall enjoy workers' compensation 
coverage equal to that provided by law for covered employment.

[SEC. 505. INTERAGENCY COOPERATION.

  [(a) Consultation With the Assistant Secretary.--The 
Secretary shall consult with and obtain the written views of 
the Assistant Secretary before issuing rules and before 
establishing general policy in the administration of this 
title.
  [(b) Consultation With Heads of Other Agencies.--The 
Secretary shall consult and cooperate with the Secretary of 
Health and Human Services (acting through officers including 
the Director of the Office of Community Services), and the 
heads of other Federal agencies that carry out programs related 
to the program carried out under this title, in order to 
achieve optimal coordination of the program carried out under 
this title with such related programs. Each head of a Federal 
agency shall cooperate with the Secretary in disseminating 
information relating to the availability of assistance under 
this title and in promoting the identification and interests of 
individuals eligible for employment in projects assisted under 
this title.
  [(c) Coordination.--
          [(1) In general.--The Secretary shall promote and 
        coordinate efforts to carry out projects under this 
        title jointly with programs, projects, or activities 
        carried out under other Acts, especially activities 
        provided under the Workforce Investment Act of 1998 (29 
        U.S.C. 2801 et seq.), including activities provided 
        through one-stop delivery systems established under 
        section 134(c)) of such Act (29 U.S.C. 2864(c)), that 
        provide training and employment opportunities to 
        eligible individuals.
          [(2) Coordination with certain activities.--The 
        Secretary shall consult with the Secretary of Education 
        to promote and coordinate efforts to carry out projects 
        under this title jointly with activities in which 
        eligible individuals may participate that are carried 
        out under the Carl D. Perkins Career and Technical 
        Education Act of 2006 (20 U.S.C. 2301 et seq.).

[SEC. 506. DISTRIBUTION OF ASSISTANCE.

  [(a) Reservations.--
          [(1) Reservation for pilot demonstration and 
        evaluation projects.--Of the funds appropriated to 
        carry out this title for each fiscal year, the 
        Secretary may first reserve not more than 1.5 percent 
        to carry out demonstration projects, pilot projects, 
        and evaluation projects under section 502(e).
          [(2) Reservation for territories.--Of the funds 
        appropriated to carry out this title for each fiscal 
        year, the Secretary shall reserve 0.75 percent, of 
        which--
                  [(A) Guam, American Samoa, and the United 
                States Virgin Islands shall each receive 30 
                percent of the funds so reserved; and
                  [(B) the Commonwealth of the Northern Mariana 
                Islands shall receive 10 percent of the funds 
                so reserved.
          [(3) Reservation for organizations.--Of the funds 
        appropriated to carry out this title for each fiscal 
        year, the Secretary shall reserve such amount as may be 
        necessary to make national grants to public or 
        nonprofit national Indian aging organizations with the 
        ability to provide community service employment and 
        other authorized activities for eligible individuals 
        who are Indians and to national public or nonprofit 
        Pacific Island and Asian American aging organizations 
        with the ability to provide community service 
        employment and other authorized activities for eligible 
        individuals who are Pacific Island and Asian Americans.
  [(b) State Allotments.--The allotment for each State shall be 
the sum of the amounts allotted for national grants in such 
State under subsection (d) and for the grant to such State 
under subsection (e).
  [(c) Division Between National Grants and Grants to States.--
The funds appropriated to carry out this title for any fiscal 
year that remain after amounts are reserved under paragraphs 
(1), (2), and (3) of subsection (a) shall be divided by the 
Secretary between national grants and grants to States as 
follows:
          [(1) Reservation of funds for fiscal year 2000 level 
        of activities.--
                  [(A) In general.--The Secretary shall reserve 
                the amount of funds necessary to maintain the 
                fiscal year 2000 level of activities supported 
                by grantees that operate under this title under 
                national grants from the Secretary, and the 
                fiscal year 2000 level of activities supported 
                by State grantees under this title, in 
                proportion to their respective fiscal year 2000 
                levels of activities.
                  [(B) Insufficient appropriations.--If in any 
                fiscal year the funds appropriated to carry out 
                this title are insufficient to satisfy the 
                requirement specified in subparagraph (A), then 
                the amount described in subparagraph (A) shall 
                be reduced proportionally.
          [(2) Funding in excess of fiscal year 2000 level of 
        activities.--
                  [(A) Up to $35,000,000.--The amount of funds 
                remaining (if any) after the application of 
                paragraph (1), but not to exceed $35,000,000, 
                shall be divided so that 75 percent shall be 
                provided to State grantees and 25 percent shall 
                be provided to grantees that operate under this 
                title under national grants from the Secretary.
                  [(B) Over $35,000,000.--The amount of funds 
                remaining (if any) after the application of 
                subparagraph (A) shall be divided so that 50 
                percent shall be provided to State grantees and 
                50 percent shall be provided to grantees that 
                operate under this title under national grants 
                from the Secretary.
  [(d) Allotments for National Grants.--From funds available 
under subsection (c) for national grants, the Secretary shall 
allot for public and nonprofit private agency and organization 
grantees that operate under this title under national grants 
from the Secretary in each State, an amount that bears the same 
ratio to such funds as the product of the number of individuals 
age 55 or older in the State and the allotment percentage of 
such State bears to the sum of the corresponding products for 
all States, except as follows:
          [(1) Minimum allotment.--No State shall be provided 
        an amount under this subsection that is less than \1/2\ 
        of 1 percent of the amount provided under subsection 
        (c) for public and nonprofit private agency and 
        organization grantees that operate under this title 
        under national grants from the Secretary in all of the 
        States.
          [(2) Hold harmless.--If such amount provided under 
        subsection (c) is--
                  [(A) equal to or less than the amount 
                necessary to maintain the fiscal year 2000 
                level of activities, allotments for grantees 
                that operate under this title under national 
                grants from the Secretary in each State shall 
                be proportional to the amount necessary to 
                maintain their fiscal year 2000 level of 
                activities; or
                  [(B) greater than the amount necessary to 
                maintain the fiscal year 2000 level of 
                activities, no State shall be provided a 
                percentage increase above the amount necessary 
                to maintain the fiscal year 2000 level of 
                activities for grantees that operate under this 
                title under national grants from the Secretary 
                in the State that is less than 30 percent of 
                the percentage increase above the amount 
                necessary to maintain the fiscal year 2000 
                level of activities for public and private 
                nonprofit agency and organization grantees that 
                operate under this title under national grants 
                from the Secretary in all of the States.
          [(3) Reduction.--Allotments for States not affected 
        by paragraphs (1) and (2)(B) shall be reduced 
        proportionally to satisfy the conditions in such 
        paragraphs.
  [(e) Allotments for Grants to States.--From the amount 
provided for grants to States under subsection (c), the 
Secretary shall allot for the State grantee in each State an 
amount that bears the same ratio to such amount as the product 
of the number of individuals age 55 or older in the State and 
the allotment percentage of such State bears to the sum of the 
corresponding products for all States, except as follows:
          [(1) Minimum allotment.--No State shall be provided 
        an amount under this subsection that is less than \1/2\ 
        of 1 percent of the amount provided under subsection 
        (c) for State grantees in all of the States.
          [(2) Hold harmless.--If such amount provided under 
        subsection (c) is--
                  [(A) equal to or less than the amount 
                necessary to maintain the fiscal year 2000 
                level of activities, allotments for State 
                grantees in each State shall be proportional to 
                the amount necessary to maintain their fiscal 
                year 2000 level of activities; or
                  [(B) greater than the amount necessary to 
                maintain the fiscal year 2000 level of 
                activities, no State shall be provided a 
                percentage increase above the amount necessary 
                to maintain the fiscal year 2000 level of 
                activities for State grantees in the State that 
                is less than 30 percent of the percentage 
                increase above the amount necessary to maintain 
                the fiscal year 2000 level of activities for 
                State grantees in all of the States.
          [(3) Reduction.--Allotments for States not affected 
        by paragraphs (1) and (2)(B) shall be reduced 
        proportionally to satisfy the conditions in such 
        paragraphs.
  [(f) Allotment Percentage.--For purposes of subsections (d) 
and (e) and this subsection--
          [(1) the allotment percentage of each State shall be 
        100 percent less that percentage that bears the same 
        ratio to 50 percent as the per capita income of such 
        State bears to the per capita income of the United 
        States, except that--
                  [(A) the allotment percentage shall be not 
                more than 75 percent and not less than 33 
                percent; and
                  [(B) the allotment percentage for the 
                District of Columbia and the Commonwealth of 
                Puerto Rico shall be 75 percent;
          [(2) the number of individuals age 55 or older in any 
        State and in all States, and the per capita income in 
        any State and in all States, shall be determined by the 
        Secretary on the basis of the most satisfactory data 
        available to the Secretary; and
          [(3) for the purpose of determining the allotment 
        percentage, the term ``United States'' means the 50 
        States, and the District of Columbia.
  [(g) Definitions.--In this section:
          [(1) Cost per authorized position.--The term ``cost 
        per authorized position'' means the sum of--
                  [(A) the hourly minimum wage rate specified 
                in section 6(a)(1) of the Fair Labor Standards 
                Act of 1938 (29 U.S.C. 206(a)(1)), multiplied 
                by the number of hours equal to the product of 
                21 hours and 52 weeks;
                  [(B) an amount equal to 11 percent of the 
                amount specified under subparagraph (A), for 
                the purpose of covering Federal payments for 
                fringe benefits; and
                  [(C) an amount determined by the Secretary, 
                for the purpose of covering Federal payments 
                for the remainder of all other program and 
                administrative costs.
          [(2) Fiscal year 2000 level of activities.--The term 
        ``fiscal year 2000 level of activities'' means--
                  [(A) with respect to public and nonprofit 
                private agency and organization grantees that 
                operate under this title under national grants 
                from the Secretary, their level of activities 
                for fiscal year 2000; and
                  [(B) with respect to State grantees, their 
                level of activities for fiscal year 2000.
          [(3) Grants to states.--The term ``grants to States'' 
        means grants made under this title by the Secretary to 
        the States.
          [(4) Level of activities.--The term ``level of 
        activities'' means the number of authorized positions 
        multiplied by the cost per authorized position.
          [(5) National grants.--The term ``national grants'' 
        means grants made under this title by the Secretary to 
        public and nonprofit private agency and organization 
        grantees that operate under this title.
          [(6) State.--The term ``State'' does not include 
        Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and the United States Virgin Islands.

[SEC. 507. EQUITABLE DISTRIBUTION.

  [(a) Interstate Allocation.--In making grants under section 
502(b) from allotments made under section 506, the Secretary 
shall ensure, to the extent feasible, an equitable distribution 
of activities under such grants, in the aggregate, among the 
States, taking into account the needs of underserved States.
  [(b) Intrastate Allocation.--The amount allocated for 
projects within each State under section 506 shall be allocated 
among areas in the State in an equitable manner, taking into 
consideration the State priorities set out in the State plan in 
effect under section 503(a).

[SEC. 508. REPORT.

  [To carry out the Secretary's responsibilities for reporting 
in section 503(g), the Secretary shall require the State agency 
for each State that receives funds under this title to prepare 
and submit a report at the beginning of each fiscal year on 
such State's compliance with section 507(b). Such report shall 
include the names and geographic location of all projects 
assisted under this title and carried out in the State and the 
amount allocated to each such project under section 506.

[SEC. 509. EMPLOYMENT ASSISTANCE AND FEDERAL HOUSING AND FOOD STAMP 
                    PROGRAMS.

  [Funds received by eligible individuals from projects carried 
out under the program established under this title shall not be 
considered to be income of such individuals for purposes of 
determining the eligibility of such individuals, or of any 
other individuals, to participate in any housing program for 
which Federal funds may be available or for any income 
determination under the Food and Nutrition Act of 2008 (7 
U.S.C. 2011 et seq.).

[SEC. 510. ELIGIBILITY FOR WORKFORCE INVESTMENT ACTIVITIES.

  [Eligible individuals under this title may be considered by 
local workforce investment boards and one-stop operators 
established under title I of the Workforce Investment Act of 
1998 (29 U.S.C. 2801 et seq.) to satisfy the requirements for 
receiving services under such title I that are applicable to 
adults.

[SEC. 511. COORDINATION WITH THE WORKFORCE INVESTMENT ACT OF 1998.

  [(a) Partners.--Grantees under this title shall be one-stop 
partners as described in subparagraphs (A) and (B)(vi) of 
section 121(b)(1) of the Workforce Investment Act of 1998 (29 
U.S.C. 2841(b)(1)) in the one-stop delivery system established 
under section 134(c) of such Act (29 U.S.C. 2864(c)) for the 
appropriate local workforce investment areas, and shall carry 
out the responsibilities relating to such partners.
  [(b) Coordination.--In local workforce investment areas where 
more than 1 grantee under this title provides services, the 
grantees shall--
          [(1) coordinate their activities related to the one-
        stop delivery systems; and
          [(2) be signatories of the memorandum of 
        understanding established under section 121(c) of the 
        Workforce Investment Act of 1998 (29 U.S.C. 2841(c)).

[SEC. 512. TREATMENT OF ASSISTANCE.

  [Assistance provided under this title shall not be considered 
to be financial assistance described in section 245A(h)(1)(A) 
of the Immigration and Nationality Act (8 U.S.C. 
1255a(h)(1)(A)).

[SEC. 513. PERFORMANCE.

  [(a) Measures and Indicators.--
          [(1) Establishment and implementation of measures and 
        indicators.--The Secretary shall establish and 
        implement, after consultation with grantees, 
        subgrantees, and host agencies under this title, 
        States, older individuals, area agencies on aging, and 
        other organizations serving older individuals, core 
        measures of performance and additional indicators of 
        performance for each grantee for projects and services 
        carried out under this title. The core measures of 
        performance and additional indicators of performance 
        shall be applicable to each grantee under this title 
        without regard to whether such grantee operates the 
        program directly or through subcontracts, subgrants, or 
        agreements with other entities.
          [(2) Content.--
                  [(A) Composition of measures and 
                indicators.--
                          [(i) Measures.--The core measures of 
                        performance established by the 
                        Secretary in accordance with paragraph 
                        (1) shall consist of core indicators of 
                        performance specified in subsection 
                        (b)(1) and the expected levels of 
                        performance applicable to each core 
                        indicator of performance.
                          [(ii) Additional indicators.--The 
                        additional indicators of performance 
                        established by the Secretary in 
                        accordance with paragraph (1) shall be 
                        the additional indicators of 
                        performance specified in subsection 
                        (b)(2).
                  [(B) Continuous improvement.--The measures 
                described in subparagraph (A)(i) shall be 
                designed to promote continuous improvement in 
                performance.
                  [(C) Expected levels of performance.--The 
                Secretary and each grantee shall reach 
                agreement on the expected levels of performance 
                for each program year for each of the core 
                indicators of performance specified in 
                subparagraph (A)(i). The agreement shall take 
                into account the requirement of subparagraph 
                (B) and the factors described in subparagraph 
                (D), and other appropriate factors as 
                determined by the Secretary, and shall be 
                consistent with the requirements of 
                subparagraph (E). Funds may not be awarded 
                under the grant until such agreement is 
                reached. At the conclusion of negotiations 
                concerning the levels with all grantees, the 
                Secretary shall make available for public 
                review the final negotiated expected levels of 
                performance for each grantee, including any 
                comments submitted by the grantee regarding the 
                grantee's satisfaction with the negotiated 
                levels.
                  [(D) Adjustment.--The expected levels of 
                performance described in subparagraph (C) 
                applicable to a grantee shall be adjusted after 
                the agreement under subparagraph (C) has been 
                reached only with respect to the following 
                factors:
                          [(i) High rates of unemployment or of 
                        poverty or participation in the program 
                        of block grants to States for temporary 
                        assistance for needy families 
                        established under part A of title IV of 
                        the Social Security Act (42 U.S.C. 601 
                        et seq.), in the areas served by a 
                        grantee, relative to other areas of the 
                        State involved or Nation.
                          [(ii) Significant downturns in the 
                        areas served by the grantee or in the 
                        national economy.
                          [(iii) Significant numbers or 
                        proportions of participants with 1 or 
                        more barriers to employment, including 
                        individuals described in subsection 
                        (a)(3)(B)(ii) or (b)(2) of section 518, 
                        served by a grantee relative to such 
                        numbers or proportions for grantees 
                        serving other areas of the State or 
                        Nation.
                          [(iv) Changes in Federal, State, or 
                        local minimum wage requirements.
                          [(v) Limited economies of scale for 
                        the provision of community service 
                        employment and other authorized 
                        activities in the areas served by the 
                        grantee.
                  [(E) Placement.--
                          [(i) Level of performance.--For all 
                        grantees, the Secretary shall establish 
                        an expected level of performance of not 
                        less than the percentage specified in 
                        clause (ii) (adjusted in accordance 
                        with subparagraph (D)) for the entry 
                        into unsubsidized employment core 
                        indicator of performance described in 
                        subsection (b)(1)(B).
                          [(ii) Required placement 
                        percentages.--The minimum percentage 
                        for the expected level of performance 
                        for the entry into unsubsidized 
                        employment core indicator of 
                        performance described in subsection 
                        (b)(1)(B) is--
                                  [(I) 21 percent for fiscal 
                                year 2007;
                                  [(II) 22 percent for fiscal 
                                year 2008;
                                  [(III) 23 percent for fiscal 
                                year 2009;
                                  [(IV) 24 percent for fiscal 
                                year 2010; and
                                  [(V) 25 percent for fiscal 
                                year 2011.
          [(3) Limitation.--An agreement to be evaluated on the 
        core measures of performance and to report information 
        on the additional indicators of performance shall be a 
        requirement for application for, and a condition of, 
        all grants authorized by this title.
  [(b) Indicators of Performance.--
          [(1) Core indicators.--The core indicators of 
        performance described in subsection (a)(2)(A)(i) shall 
        consist of--
                  [(A) hours (in the aggregate) of community 
                service employment;
                  [(B) entry into unsubsidized employment;
                  [(C) retention in unsubsidized employment for 
                6 months;
                  [(D) earnings; and
                  [(E) the number of eligible individuals 
                served, including the number of participating 
                individuals described in subsection 
                (a)(3)(B)(ii) or (b)(2) of section 518.
          [(2) Additional indicators.--The additional 
        indicators of performance described in subsection 
        (a)(2)(A)(ii) shall consist of--
                  [(A) retention in unsubsidized employment for 
                1 year;
                  [(B) satisfaction of the participants, 
                employers, and their host agencies with their 
                experiences and the services provided;
                  [(C) any other indicators of performance that 
                the Secretary determines to be appropriate to 
                evaluate services and performance.
          [(3) Definitions of indicators.--The Secretary, after 
        consultation with national and State grantees, 
        representatives of business and labor organizations, 
        and providers of services, shall, by regulation, issue 
        definitions of the indicators of performance described 
        in paragraphs (1) and (2).
  [(c) Evaluation.--The Secretary shall--
          [(1) annually evaluate, and publish and make 
        available for public review information on, the actual 
        performance of each grantee with respect to the levels 
        achieved for each of the core indicators of 
        performance, compared to the expected levels of 
        performance established under subsection (a)(2)(C) 
        (including any adjustments to such levels made in 
        accordance with subsection (a)(2)(D)); and
          [(2) annually publish and make available for public 
        review information on the actual performance of each 
        grantee with respect to the levels achieved for each of 
        the additional indicators of performance.
  [(d) Technical Assistance and Corrective Efforts.--
          [(1) Initial determinations.--
                  [(A) In general.--As soon as practicable 
                after July 1, 2007, the Secretary shall 
                determine if a grantee under this title has, 
                for program year 2006--
                          [(i) met the expected levels of 
                        performance established under 
                        subsection (a)(2)(C) (including any 
                        adjustments to such levels made in 
                        accordance with subsection (a)(2)(D)) 
                        for the core indicators of performance 
                        described in subparagraphs (A), (C), 
                        (D), and (E) of subsection (b)(1); and
                          [(ii) achieved the applicable 
                        percentage specified in subsection 
                        (a)(2)(E)(ii) for the core indicator of 
                        performance described in subsection 
                        (b)(1)(B).
                  [(B) Technical assistance.--If the Secretary 
                determines that the grantee, for program year 
                2006--
                          [(i) failed to meet the expected 
                        levels of performance described in 
                        subparagraph (A)(i); or
                          [(ii) failed to achieve the 
                        applicable percentage described in 
                        subparagraph (A)(ii),
                the Secretary shall provide technical 
                assistance to assist the grantee to meet the 
                expected levels of performance and achieve the 
                applicable percentage.
          [(2) National grantees.--
                  [(A) In general.--Not later than 120 days 
                after the end of each program year, the 
                Secretary shall determine if a national grantee 
                awarded a grant under section 502(b) in 
                accordance with section 514 has met the 
                expected levels of performance established 
                under subsection (a)(2)(C) (including any 
                adjustments to such levels made in accordance 
                with subsection (a)(2)(D)) for the core 
                indicators of performance described in 
                subsection (b)(1).
                  [(B) Technical assistance and corrective 
                action plan.--
                          [(i) In general.--If the Secretary 
                        determines that a national grantee 
                        fails to meet the expected levels of 
                        performance described in subparagraph 
                        (A), the Secretary after each year of 
                        such failure, shall provide technical 
                        assistance and require such grantee to 
                        submit a corrective action plan not 
                        later than 160 days after the end of 
                        the program year.
                          [(ii) Content.--The plan submitted 
                        under clause (i) shall detail the steps 
                        the grantee will take to meet the 
                        expected levels of performance in the 
                        next program year.
                          [(iii) Recompetition.--Any grantee 
                        who has failed to meet the expected 
                        levels of performance for 4 consecutive 
                        years (beginning with program year 
                        2007) shall not be allowed to compete 
                        in the subsequent grant competition 
                        under section 514 following the fourth 
                        consecutive year of failure but may 
                        compete in the next such grant 
                        competition after that subsequent 
                        competition.
          [(3) State grantees.--
                  [(A) In general.--Not later than 120 days 
                after the end of each program year, the 
                Secretary shall determine if a State grantee 
                allotted funds under section 506(e) has met the 
                expected levels of performance established 
                under subsection (a)(2)(C) (including any 
                adjustments to such levels made in accordance 
                with subsection (a)(2)(D)) for the core 
                indicators of performance described in 
                subsection (b)(1).
                  [(B) Technical assistance and corrective 
                action plan.--
                          [(i) In general.--If the Secretary 
                        determines that a State fails to meet 
                        the expected levels of performance 
                        described in subparagraph (A), the 
                        Secretary, after each year of such 
                        failure, shall provide technical 
                        assistance and require the State to 
                        submit a corrective action plan not 
                        later than 160 days after the end of 
                        the program year.
                          [(ii) Content.--The plan submitted 
                        under clause (i) shall detail the steps 
                        the State will take to meet the 
                        expected levels of performance in the 
                        next program year.
                          [(iii) Competition.--If the Secretary 
                        determines that the State fails to meet 
                        the expected levels of performance 
                        described in subparagraph (A) for 3 
                        consecutive program years (beginning 
                        with program year 2007), the Secretary 
                        shall provide for the conduct by the 
                        State of a competition to award the 
                        funds allotted to the State under 
                        section 506(e) for the first full 
                        program year following the Secretary's 
                        determination.
          [(4) Special rule for establishment and 
        implementation.--The Secretary shall establish and 
        implement the core measures of performance and 
        additional indicators of performance described in this 
        section, including all required indicators described in 
        subsection (b), not later than July 1, 2007.
  [(e) Impact on Grant Competition.--The Secretary may not 
publish a notice announcing a grant competition under this 
title, and solicit proposals for grants, until the day that is 
the later of--
          [(1) the date on which the Secretary implements the 
        core measures of performance and additional indicators 
        of performance described in this section; and
          [(2) January 1, 2010.

[SEC. 514. COMPETITIVE REQUIREMENTS RELATING TO GRANT AWARDS.

  [(a) Program Authorized.--
          [(1) Initial approval of grant applications.--From 
        the funds available for national grants under section 
        506(d), the Secretary shall award grants under section 
        502(b) to eligible applicants, through a competitive 
        process that emphasizes meeting performance 
        requirements, to carry out projects under this title 
        for a period of 4 years, except as provided in 
        paragraph (2). The Secretary may not conduct a grant 
        competition under this title until the day described in 
        section 513(e).
          [(2) Continuation of approval based on performance.--
        If the recipient of a grant made under paragraph (1) 
        meets the expected levels of performance described in 
        section 513(d)(2)(A) for each year of such 4-year 
        period with respect to a project, the Secretary may 
        award a grant under section 502(b) to such recipient to 
        continue such project beyond such 4-year period for 1 
        additional year without regard to such process.
  [(b) Eligible Applicants.--An applicant shall be eligible to 
receive a grant under section 502(b) in accordance with 
subsections (a), (c), and (d).
  [(c) Criteria.--For purposes of subsection (a)(1), the 
Secretary shall select the eligible applicants to receive 
grants based on the following:
          [(1) The applicant's ability to administer a project 
        that serves the greatest number of eligible 
        individuals, giving particular consideration to 
        individuals with greatest economic need, individuals 
        with greatest social need, and individuals described in 
        subsection (a)(3)(B)(ii) or (b)(2) of section 518.
          [(2) The applicant's ability to administer a project 
        that provides employment for eligible individuals in 
        the communities in which such individuals reside, or in 
        nearby communities, that will contribute to the general 
        welfare of the communities involved.
          [(3) The applicant's ability to administer a project 
        that moves eligible individuals into unsubsidized 
        employment.
          [(4) The applicant's prior performance, if any, in 
        meeting core measures of performance and addressing 
        additional indicators of performance under this title 
        and the applicant's ability to address core indicators 
        of performance and additional indicators of performance 
        under this title and under other Federal or State 
        programs in the case of an applicant that has not 
        previously received a grant under this title.
          [(5) The applicant's ability to move individuals with 
        multiple barriers to employment, including individuals 
        described in subsection (a)(3)(B)(ii) or (b)(2) of 
        section 518, into unsubsidized employment.
          [(6) The applicant's ability to coordinate activities 
        with other organizations at the State and local level.
          [(7) The applicant's plan for fiscal management of 
        the project to be administered with funds received in 
        accordance with this section.
          [(8) The applicant's ability to administer a project 
        that provides community service.
          [(9) The applicant's ability to minimize disruption 
        in services for participants and in community services 
        provided.
          [(10) Any additional criteria that the Secretary 
        considers to be appropriate in order to minimize 
        disruption in services for participants.
  [(d) Responsibility Tests.--
          [(1) In general.--Before final selection of a 
        grantee, the Secretary shall conduct a review of 
        available records to assess the applicant's overall 
        responsibility to administer Federal funds.
          [(2) Review.--As part of the review described in 
        paragraph (1), the Secretary may consider any 
        information, including the applicant's history with 
        regard to the management of other grants.
          [(3) Failure to satisfy test.--The failure to satisfy 
        a responsibility test with respect to any 1 factor that 
        is listed in paragraph (4), excluding those listed in 
        subparagraphs (A) and (B) of such paragraph, does not 
        establish that the applicant is not responsible unless 
        such failure is substantial or persists for 2 or more 
        consecutive years.
          [(4) Test.--The responsibility tests include review 
        of the following factors:
                  [(A) Unsuccessful efforts by the applicant to 
                recover debts, after 3 demand letters have been 
                sent, that are established by final agency 
                action, or a failure to comply with an approved 
                repayment plan.
                  [(B) Established fraud or criminal activity 
                of a significant nature within the organization 
                or agency involved.
                  [(C) Serious administrative deficiencies 
                identified by the Secretary, such as failure to 
                maintain a financial management system as 
                required by Federal rules or regulations.
                  [(D) Willful obstruction of the audit 
                process.
                  [(E) Failure to provide services to 
                participants for a current or recent grant or 
                to meet applicable core measures of performance 
                or address applicable indicators of 
                performance.
                  [(F) Failure to correct deficiencies brought 
                to the grantee's attention in writing as a 
                result of monitoring activities, reviews, 
                assessments, or other activities.
                  [(G) Failure to return a grant closeout 
                package or outstanding advances within 90 days 
                of the grant expiration date or receipt of the 
                closeout package, whichever is later, unless an 
                extension has been requested and granted.
                  [(H) Failure to submit required reports.
                  [(I) Failure to properly report and dispose 
                of Government property as instructed by the 
                Secretary.
                  [(J) Failure to have maintained effective 
                cash management or cost controls resulting in 
                excess cash on hand.
                  [(K) Failure to ensure that a subrecipient 
                complies with its Office of Management and 
                Budget Circular A-133 audit requirements 
                specified at section 667.200(b) of title 20, 
                Code of Federal Regulations.
                  [(L) Failure to audit a subrecipient within 
                the required period.
                  [(M) Final disallowed costs in excess of 5 
                percent of the grant or contract award if, in 
                the judgment of the grant officer, the 
                disallowances are egregious.
                  [(N) Failure to establish a mechanism to 
                resolve a subrecipient's audit in a timely 
                fashion.
          [(5) Determination.--Applicants that are determined 
        to be not responsible shall not be selected as 
        grantees.
          [(6) Disallowed costs.--Interest on disallowed costs 
        shall accrue in accordance with the Debt Collection 
        Improvement Act of 1996, including the amendments made 
        by that Act.
  [(e) Grantees Serving Individuals With Barriers to 
Employment.--
          [(1) Definition.--In this subsection, the term 
        ``individuals with barriers to employment'' means 
        minority individuals, Indian individuals, individuals 
        with greatest economic need, and individuals described 
        in subsection (a)(3)(B)(ii) or (b)(2) of section 518.
          [(2) Special consideration.--In areas where a 
        substantial population of individuals with barriers to 
        employment exists, a grantee that receives a national 
        grant in accordance with this section shall, in 
        selecting subgrantees, give special consideration to 
        organizations (including former recipients of such 
        national grants) with demonstrated expertise in serving 
        individuals with barriers to employment.
  [(f) Minority-Serving Grantees.--The Secretary may not 
promulgate rules or regulations affecting grantees in areas 
where a substantial population of minority individuals exists, 
that would significantly compromise the ability of the grantees 
to serve their targeted population of minority older 
individuals.

[SEC. 515. REPORT ON SERVICE TO MINORITY INDIVIDUALS.

  [(a) In General.--The Secretary shall annually prepare a 
report on the levels of participation and performance outcomes 
of minority individuals served by the program carried out under 
this title.
  [(b) Contents.--
          [(1) Organization and data.--Such report shall 
        present information on the levels of participation and 
        the outcomes achieved by such minority individuals with 
        respect to each grantee under this title, by service 
        area, and in the aggregate, beginning with data that 
        applies to program year 2005.
          [(2) Efforts.--The report shall also include a 
        description of each grantee's efforts to serve minority 
        individuals, based on information submitted to the 
        Secretary by each grantee at such time and in such 
        manner as the Secretary determines to be appropriate.
          [(3) Related matters.--The report shall also 
        include--
                  [(A) an assessment of individual grantees 
                based on the criteria established under 
                subsection (c);
                  [(B) an analysis of whether any changes in 
                grantees have affected participation rates of 
                such minority individuals;
                  [(C) information on factors affecting 
                participation rates among such minority 
                individuals; and
                  [(D) recommendations for increasing 
                participation of minority individuals in the 
                program.
  [(c) Criteria.--The Secretary shall establish criteria for 
determining the effectiveness of grantees in serving minority 
individuals in accordance with the goals set forth in section 
502(a)(1).
  [(d) Submission.--The Secretary shall annually submit such a 
report to the appropriate committees of Congress.

[SEC. 516. SENSE OF CONGRESS.

  [It is the sense of Congress that--
          [(1) the older American community service employment 
        program described in this title was established with 
        the intent of placing older individuals in community 
        service positions and providing job training; and
          [(2) placing older individuals in community service 
        positions strengthens the ability of the individuals to 
        become self-sufficient, provides much-needed support to 
        organizations that benefit from increased civic 
        engagement, and strengthens the communities that are 
        served by such organizations.

[SEC. 517. AUTHORIZATION OF APPROPRIATIONS.

  [(a) In General.--There are authorized to be appropriated to 
carry out this title such sums as may be necessary for fiscal 
years 2007, 2008, 2009, 2010, and 2011.
  [(b) Obligation.--Amounts appropriated under this section for 
any fiscal year shall be available for obligation during the 
annual period that begins on July 1 of the calendar year 
immediately following the beginning of such fiscal year and 
that ends on June 30 of the following calendar year. The 
Secretary may extend the period during which such amounts may 
be obligated or expended in the case of a particular 
organization or agency that receives funds under this title if 
the Secretary determines that such extension is necessary to 
ensure the effective use of such funds by such organization or 
agency.
  [(c) Recapturing Funds.--At the end of the program year, the 
Secretary may recapture any unexpended funds for the program 
year, and reobligate such funds within the 2 succeeding program 
years for--
          [(1) incentive grants to entities that are State 
        grantees or national grantees under section 502(b);
          [(2) technical assistance; or
          [(3) grants or contracts for any other activity under 
        this title.

[SEC. 518. DEFINITIONS AND RULE.

  [(a) Definitions.--For purposes of this title:
          [(1) Community service.--The term ``community 
        service'' means--
                  [(A) social, health, welfare, and educational 
                services (including literacy tutoring), legal 
                and other counseling services and assistance, 
                including tax counseling and assistance and 
                financial counseling, and library, 
                recreational, and other similar services;
                  [(B) conservation, maintenance, or 
                restoration of natural resources;
                  [(C) community betterment or beautification;
                  [(D) antipollution and environmental quality 
                efforts;
                  [(E) weatherization activities;
                  [(F) economic development; and
                  [(G) such other services essential and 
                necessary to the community as the Secretary 
                determines by rule to be appropriate.
          [(2) Community service employment.--The term 
        ``community service employment'' means part-time, 
        temporary employment paid with grant funds in projects 
        described in section 502(b)(1)(D), through which 
        eligible individuals are engaged in community service 
        and receive work experience and job skills that can 
        lead to unsubsidized employment.
          [(3) Eligible individual.--
                  [(A) In general.--The term ``eligible 
                individual'' means an individual who is age 55 
                or older and who has a low income (including 
                any such individual whose income is not more 
                than 125 percent of the poverty line), 
                excluding any income that is unemployment 
                compensation, a benefit received under title 
                XVI of the Social Security Act (42 U.S.C. 1381 
                et seq.), a payment made to or on behalf of 
                veterans or former members of the Armed Forces 
                under the laws administered by the Secretary of 
                Veterans Affairs, or 25 percent of a benefit 
                received under title II of the Social Security 
                Act (42 U.S.C. 401 et seq.), subject to 
                subsection (b).
                  [(B) Participation.--
                          [(i) Exclusion.--Notwithstanding any 
                        other provision of this paragraph, the 
                        term ``eligible individual'' does not 
                        include an individual who has 
                        participated in projects under this 
                        title for a period of 48 months in the 
                        aggregate (whether or not consecutive) 
                        after July 1, 2007, unless the period 
                        was increased as described in clause 
                        (ii).
                          [(ii) Increased periods of 
                        participation.--The Secretary shall 
                        authorize a grantee for a project to 
                        increase the period of participation 
                        described in clause (i), pursuant to a 
                        request submitted by the grantee, for 
                        individuals who--
                                  [(I) have a severe 
                                disability;
                                  [(II) are frail or are age 75 
                                or older;
                                  [(III) meet the eligibility 
                                requirements related to age 
                                for, but do not receive, 
                                benefits under title II of the 
                                Social Security Act (42 U.S.C. 
                                401 et seq.);
                                  [(IV) live in an area with 
                                persistent unemployment and are 
                                individuals with severely 
                                limited employment prospects; 
                                or
                                  [(V) have limited English 
                                proficiency or low literacy 
                                skills.
          [(4) Income.--In this section, the term ``income'' 
        means income received during the 12-month period (or, 
        at the option of the grantee involved, the annualized 
        income for the 6-month period) ending on the date an 
        eligible individual submits an application to 
        participate in a project carried out under this title 
        by such grantee.
          [(5) Pacific island and asian americans.--The term 
        ``Pacific Island and Asian Americans'' means Americans 
        having origins in any of the original peoples of the 
        Far East, Southeast Asia, the Indian Subcontinent, or 
        the Pacific Islands.
          [(6) Program.--The term ``program'' means the older 
        American community service employment program 
        established under this title.
          [(7) Supportive services.--The term ``supportive 
        services'' means services, such as transportation, 
        child care, dependent care, housing, and needs-related 
        payments, that are necessary to enable an individual to 
        participate in activities authorized under this title, 
        consistent with the provisions of this title.
          [(8) Unemployed.--The term ``unemployed'', used with 
        respect to a person or individual, means an individual 
        who is without a job and who wants and is available for 
        work, including an individual who may have occasional 
        employment that does not result in a constant source of 
        income.
  [(b) Rule.--Pursuant to regulations prescribed by the 
Secretary, an eligible individual shall have priority for the 
community service employment and other authorized activities 
provided under this title if the individual--
          [(1) is 65 years of age or older; or
          [(2)(A) has a disability;
          [(B) has limited English proficiency or low literacy 
        skills;
          [(C) resides in a rural area;
          [(D) is a veteran;
          [(E) has low employment prospects;
          [(F) has failed to find employment after utilizing 
        services provided under title I of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2801 et seq.); or
          [(G) is homeless or at risk for homelessness.]

           *       *       *       *       *       *       *

                              ----------                              

 SECTION 414 OF THE AMERICAN COMPETITIVENESS AND WORKFORCE IMPROVEMENT 
                                  ACT

SEC. 414. COLLECTION AND USE OF H-1B NONIMMIGRANT FEES FOR SCHOLARSHIPS 
                    FOR LOW-INCOME MATH, ENGINEERING, AND COMPUTER 
                    SCIENCE STUDENTS AND JOB TRAINING OF UNITED STATES 
                    WORKERS.

  (a) * * *

           *       *       *       *       *       *       *

  [(c) Job Training Grants.--
          [(1) In general.--The Secretary of Labor shall use 
        funds available under section 286(s)(2) of the 
        Immigration and Nationality Act (8 U.S.C. 1356(s)(2)) 
        to award grants to eligible entities to provide job 
        training and related activities for workers to assist 
        them in obtaining or upgrading employment in industries 
        and economic sectors identified pursuant to paragraph 
        (4) that are projected to experience significant growth 
        and ensure that job training and related activities 
        funded by such grants are coordinated with the public 
        workforce investment system.
          [(2) Use of funds.--
                  [(A) Training provided.--Funds under this 
                subsection may be used to provide job training 
                services and related activities that are 
                designed to assist workers (including 
                unemployed and employed workers) in gaining the 
                skills and competencies needed to obtain or 
                upgrade career ladder employment positions in 
                the industries and economic sectors identified 
                pursuant to paragraph (4).
                  [(B) Enhanced training programs and 
                information.--In order to facilitate the 
                provision of job training services described in 
                subparagraph (A), funds under this subsection 
                may be used to assist in the development and 
                implementation of model activities such as 
                developing appropriate curricula to build core 
                competencies and train workers, identifying and 
                disseminating career and skill information, and 
                increasing the integration of community and 
                technical college activities with activities of 
                businesses and the public workforce investment 
                system to meet the training needs for the 
                industries and economic sectors identified 
                pursuant to paragraph (4).
          [(3) Eligible entities.--Grants under this subsection 
        may be awarded to partnerships of private and public 
        sector entities, which may include--
                  [(A) businesses or business-related nonprofit 
                organizations, such as trade associations;
                  [(B) education and training providers, 
                including community colleges and other 
                community-based organizations; and
                  [(C) entities involved in administering the 
                workforce investment system established under 
                title I of the Workforce Investment Act of 
                1998, and economic development agencies.
          [(4) High growth industries and economic sectors.--
        For purposes of this subsection, the Secretary of 
        Labor, in consultation with State workforce investment 
        boards, shall identify industries and economic sectors 
        that are projected to experience significant growth, 
        taking into account appropriate factors, such as the 
        industries and sectors that--
                  [(A) are projected to add substantial numbers 
                of new jobs to the economy;
                  [(B) are being transformed by technology and 
                innovation requiring new skill sets for 
                workers;
                  [(C) are new and emerging businesses that are 
                projected to grow; or
                  [(D) have a significant impact on the economy 
                overall or on the growth of other industries 
                and economic sectors.
          [(5) Equitable distribution.--In awarding grants 
        under this subsection, the Secretary of Labor shall 
        ensure an equitable distribution of such grants across 
        geographically diverse areas.
          [(6) Leveraging of resources and authority to require 
        match.--
                  [(A) Leveraging of resources.--In awarding 
                grants under this subsection, the Secretary of 
                Labor shall take into account, in addition to 
                other factors the Secretary determines are 
                appropriate--
                          [(i) the extent to which resources 
                        other than the funds provided under 
                        this subsection will be made available 
                        by the eligible entities applying for 
                        grants to support the activities 
                        carried out under this subsection; and
                          [(ii) the ability of such entities to 
                        continue to carry out and expand such 
                        activities after the expiration of the 
                        grants.
                  [(B) Authority to require match.--The 
                Secretary of Labor may require the provision of 
                specified levels of a matching share of cash or 
                noncash resources from resources other than the 
                funds provided under this subsection for 
                projects funded under this subsection.
          [(7) Performance accountability.--The Secretary of 
        Labor shall require grantees to report on the 
        employment outcomes obtained by workers receiving 
        training under this subsection using indicators of 
        performance that are consistent with other indicators 
        used for employment and training programs administered 
        by the Secretary, such as entry into employment, 
        retention in employment, and increases in earnings. The 
        Secretary of Labor may also require grantees to 
        participate in evaluations of projects carried out 
        under this subsection.]

           *       *       *       *       *       *       *

                              ----------                              

                           PUBLIC LAW 91-378

      (Commonly known as the Youth Conservation Corps Act of 1970)

AN ACT To establish a pilot program in the Departments of the Interior 
  and Agriculture designated as the Youth Conservation Corps, and for 
                            other purposes.

                   [Title I--Youth Conservation Corps

                          [POLICY AND PURPOSE

  [Section 101. The Congress finds that the Youth Conservation 
Corps has demonstrated a high degree of success as a pilot 
program wherein American youth, representing all segments of 
society, have benefited by gainful employment in the healthful 
outdoor atmosphere of the national park system, the national 
forest system, other public land and water areas of the United 
States and by their employment have developed, enhanced, and 
maintained the natural resources of the United States, and 
whereas in so doing the youth have gained an understanding and 
appreciation of the Nation's environment and heritage equal to 
one full academic year of study, it is accordingly the purpose 
of this title to expand and make permanent the Youth 
Conservation Corps and thereby further the development and 
maintenance of the natural resources by America's youth, and in 
so doing to prepare them for the ultimate responsibility of 
maintaining and managing these resources for the American 
people.

                       [YOUTH CONSERVATION CORPS

  [Sec. 102. (a) To carry out the purposes of this title, there 
is established in the Department of the Interior and the 
Department of Agriculture a Youth Conservation Corps 
(hereinafter in this title referred to as the ``Corps''). The 
Corps shall consist of young men and women who are permanent 
residents of the United States, its territories, possessions, 
trust territories, or Commonwealth of Puerto Rico who have 
attained age fifteen but have not attained age nineteen, and 
whom the Secretary of the Interior or the Secretary of 
Agriculture may employ without regard to the civil service or 
classification, laws, rules, or regulations, for the purpose of 
developing, preserving, or maintaining the lands and waters of 
the United States.
  [(b) The Corps shall be open to youth from all parts of the 
country of both sexes and youth of all social, economic, and 
racial classifications withy all Corps members receiving 
compensation consistent with work accomplished, and with no 
person being employed as a member of the Corps for a term in 
excess of ninety days during any single year.

                   [SECRETARIAL DUTIES AND FUNCTIONS

  [Sec. 103. (a) In carrying out this title, the Secretary of 
the Interior and the Secretary of Agriculture shall--
          [(1) determine the areas under their administrative 
        jurisdictions which are appropriate for carrying out 
        the programs using employees of the Corps;
          [(2) determine with other Federal agencies the areas 
        under the administrative jurisdiction of these agencies 
        which are appropriate for carrying out programs using 
        members of the Corps, and determine and select 
        appropriate work and education programs and projects 
        for participation by members of the Corps;
          [(3) determine the rates of pay, hours, and other 
        conditions of employment in the Corps, except that all 
        members of the Corps shall not be deemed to be Federal 
        employees other than for the purpose of chapter 171 of 
        title 28, United States Code, and chapter 81 of title 
        5, United States Code.
          [(4) provide for such transportation, lodging, 
        subsistence, and other services and equipment as they 
        may deem necessary or appropriate for the needs of 
        members of the Corps in their duties;
          [(5) promulgate regulation to insure the safety, 
        health, and welfare of the Corps members; and
          [(6) provide to the extent possible, that permanent 
        or semi-permanent facilities used as Corps camps be 
        made available to local schools, school districts, 
        State junior colleges and universities, and other 
        education institutions for use as environmental/
        ecological education camps during periods of nonuse by 
        the Corps program.
Costs for operations maintenance, and staffing of Corps camp 
facilities during periods of use by non-Corps programs as well 
as any liability for personal injury or property damage 
stemming from such use shall be the responsibility of the 
entity or organization using the facility and shall not be a 
responsibility of the Secretaries or the Corps.
  [(b) Existing but unoccupied Federal facilities and surplus 
or unused equipment (or both), of all types including military 
facilities and equipment, shall be utilized for the purposes of 
the Corps, where appropriate and with the approval of the 
Federal agency involved. To minimize transportation costs, 
Corps members shall be employed on conservation projects as 
near to their places of residence as is feasible.
  [(c) The Secretary of the Interior and the Secretary of 
Agriculture may contract with any public agency or organization 
or any private nonprofit agency or organization which has been 
in existence for at least five years for the operation of any 
Youth Conservation Corps project.

                   [GRANT PROGRAM FOR STATE PROJECTS

  [Sec. 104. (a) The Secretary of the Interior and the 
Secretary of Agriculture shall jointly establish a program 
under which grants shall be made to States to assist them in 
meeting the cost of projects for the employment of young men 
and women to develop, preserve, and maintain non-Federal public 
lands and waters within the States. For purposes of this 
section, the term ``States'' includes the District of Columbia, 
the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the 
Trust Territory of the Pacific Islands, and American Samoa.
  [(b)(1) No grant may be made under this section unless an 
application therefor has been submitted to, and approved by, 
the Secretary of the Interior and the Secretary of Agriculture. 
Such application shall be in such form, and submitted in such 
manner, as the Secretaries shall jointly by regulation 
prescribe, and shall contain--
          [(A) assurances satisfactory to the Secretaries that 
        individuals employed under the project for which the 
        application is submitted shall (i) have attained the 
        age of fifteen but not attained the age of nineteen, 
        (ii) be permanent residents of the United States or its 
        territories, possessions, or the Trust Territory of the 
        Pacific Islands, (iii) be employed without regard to 
        the personnel laws, rules, and regulations applicable 
        to full-time employees of the applicant, (iv) be 
        employed for a period of not more than ninety days in 
        any calendar year, and (v) be employed without regard 
        to their sex or social, economic, or racial 
        classification; and
          [(B) such other information as the Secretaries may 
        jointly by regulation prescribe.
  [(2) The Secretaries may approve applications which they 
determine (A) to meet the requirements of paragraph (1), and 
(B) are for projects which will further the development, 
preservation, or maintenance of non-Federal public lands or 
waters within the jurisdiction of the applicant.
  [(c)(1) The amount of any grant under this section shall be 
determined jointly by the Secretaries, except that no grant for 
any project may exceed 80 per centum of the cost (as determined 
by the Secretaries) of such project.
  [(2) Payments under grants under this section may be made in 
advance or by way of reimbursement and at such intervals and on 
such conditions as the Secretaries find necessary.
  [(d) Thirty per centum of the sums appropriated under section 
106 for any fiscal year shall be made available for grants 
under this section for such fiscal year.
  [Sec. 106. There are authorized to be appropriated amounts 
not to exceed $60,000,000 for each fiscal year, which amounts 
shall be made available to the Secretary of the Interior and 
the Secretary of Agriculture to carry out the purposes of this 
title. Notwithstanding any other provision of law, funds 
appropriated for any fiscalo year to carry out this title shall 
remain available for obligation and expenditure until the end 
of the fiscal year following the fiscal year for which 
appropriated.]

           *       *       *       *       *       *       *

                              ----------                              

         SECTION 821 OF THE HIGHER EDUCATION AMENDMENTS OF 1998

[SEC. 821. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION 
                    TRAINING FOR INCARCERATED INDIVIDUALS.

  [(a) Definition.--In this section, the term ``incarcerated 
individual'' means a male or female offender who is--
          [(1) 35 years of age or younger; and
          [(2) incarcerated in a State prison, including a 
        prerelease facility.
  [(b) Grant Program.--The Secretary of Education (in this 
section referred to as the ``Secretary'')--
          [(1) shall establish a program in accordance with 
        this section to provide grants to the State 
        correctional education agencies in the States to assist 
        and encourage incarcerated individuals who have 
        obtained a secondary school diploma or its recognized 
        equivalent to acquire educational and job skills 
        through--
                  [(A) coursework to prepare such individuals 
                to pursue a postsecondary education 
                certificate, an associate's degree, or 
                bachelor's degree while in prison;
                  [(B) the pursuit of a postsecondary education 
                certificate, an associate's degree, or 
                bachelor's degree while in prison; and
                  [(C) employment counseling and other related 
                services, which start during incarceration and 
                end not later than two years after release from 
                incarceration; and
          [(2) may establish such performance objectives and 
        reporting requirements for State correctional education 
        agencies receiving grants under this section as the 
        Secretary determines are necessary to assess the 
        effectiveness of the program under this section.
  [(c) Application.--To be eligible for a grant under this 
section, a State correctional education agency shall submit to 
the Secretary a proposal for an incarcerated individual program 
that--
          [(1) identifies the scope of the problem, including 
        the number of incarcerated individuals in need of 
        postsecondary education and career and technical 
        training;
          [(2) lists the accredited public or private 
        educational institution or institutions that will 
        provide postsecondary educational services;
          [(3) lists the cooperating agencies, public and 
        private, or businesses that will provide related 
        services, such as counseling in the areas of career 
        development, substance abuse, health, and parenting 
        skills;
          [(4) describes specific performance objectives and 
        evaluation methods (in addition to, and consistent 
        with, any objectives established by the Secretary under 
        subsection (b)(2)) that the State correctional 
        education agency will use in carrying out its proposal, 
        including--
                  [(A) specific and quantified student outcome 
                measures that are referenced to outcomes for 
                non-program participants with similar 
                demographic characteristics; and
                  [(B) measures, consistent with the data 
                elements and definitions described in 
                subsection (d)(1)(A), of--
                          [(i) program completion, including an 
                        explicit definition of what constitutes 
                        a program completion within the 
                        proposal;
                          [(ii) knowledge and skill attainment, 
                        including specification of instruments 
                        that will measure knowledge and skill 
                        attainment;
                          [(iii) attainment of employment both 
                        prior to and subsequent to release;
                          [(iv) success in employment indicated 
                        by job retention and advancement; and
                          [(v) recidivism, including such 
                        subindicators as time before subsequent 
                        offense and severity of offense;
          [(5) describes how the proposed program is to be 
        integrated with existing State correctional education 
        programs (such as adult education, graduate education 
        degree programs, and career and technical training) and 
        State industry programs;
          [(6) describes how the proposed program will--
                  [(A) deliver services under this section; and
                  [(B) utilize technology to deliver such 
                services; and
          [(7) describes how incarcerated individuals will be 
        selected so that only those eligible under subsection 
        (e) will be enrolled in postsecondary programs.
  [(d) Program Requirements.--Each State correctional education 
agency receiving a grant under this section shall--
          [(1) annually report to the Secretary regarding--
                  [(A) the results of the evaluations conducted 
                using data elements and definitions provided by 
                the Secretary for the use of State correctional 
                education programs;
                  [(B) any objectives or requirements 
                established by the Secretary pursuant to 
                subsection (b)(2);
                  [(C) the additional performance objectives 
                and evaluation methods contained in the 
                proposal described in subsection (c)(4) as 
                necessary to document the attainment of project 
                performance objectives;
                  [(D) how the funds provided under this 
                section are being allocated among postsecondary 
                preparatory education, postsecondary academic 
                programs, and career and technical education 
                programs; and
                  [(E) the service delivery methods being used 
                for each course offering; and
          [(2) provide for each student eligible under 
        subsection (e) not more than--
                  [(A) $3,000 annually for tuition, books, and 
                essential materials; and
                  [(B) $300 annually for related services such 
                as career development, substance abuse 
                counseling, parenting skills training, and 
                health education.
  [(e) Student Eligibility.--An incarcerated individual who has 
obtained a secondary school diploma or its recognized 
equivalent shall be eligible for participation in a program 
receiving a grant under this section if such individual--
          [(1) is eligible to be released within seven years 
        (including an incarcerated individual who is eligible 
        for parole within such time);
          [(2) is 35 years of age or younger; and
          [(3) has not been convicted of--
                  [(A) a ``criminal offense against a victim 
                who is a minor'' or a ``sexually violent 
                offense'', as such terms are defined in the 
                Jacob Wetterling Crimes Against Children and 
                Sexually Violent Offender Registration Act (42 
                U.S.C. 14071 et seq.); or
                  [(B) murder, as described insection 1111of 
                title 18, United States Code.
  [(f) Length of Participation.--A State correctional education 
agency receiving a grant under this section shall provide 
educational and related services to each participating 
incarcerated individual for a period not to exceed seven years, 
not more than two years of which may be devoted to study in a 
graduate education degree program or to coursework to prepare 
such individuals to take college level courses. Educational and 
related services shall start during the period of incarceration 
in prison or prerelease, and the related services may continue 
for not more than two years after release from confinement.
  [(g) Education Delivery Systems.--State correctional 
education agencies and cooperating institutions shall, to the 
extent practicable, use high-tech applications in developing 
programs to meet the requirements and goals of this section.
  [(h) Allocation of Funds.--
          [(1) Fiscal year 2009.--From the funds appropriated 
        pursuant to subsection (i) for fiscal year 2009, the 
        Secretary shall allot to each State an amount that 
        bears the same relationship to such funds as the total 
        number of incarcerated individuals described in 
        paragraphs (1) and (2) of subsection (e) in the State 
        bears to the total number of such individuals in all 
        States.
          [(2) Future fiscal years.--From the funds 
        appropriated pursuant to subsection (i) for each fiscal 
        year after fiscal year 2009, the Secretary shall allot 
        to each State an amount that bears the same 
        relationship to such funds as the total number of 
        students eligible under subsection (e) in such State 
        bears to the total number of such students in all 
        States.
  [(i) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal years 2009 through 2014.]
                              ----------                              

                    IMMIGRATION AND NATIONALITY ACT

           *       *       *       *       *       *       *
TITLE IV--MISCELLANEOUS AND REFUGEE ASSISTANCE

           *       *       *       *       *       *       *

Chapter 2--Refugee Assistance

           *       *       *       *       *       *       *

[AUTHORIZATION FOR PROGRAMS FOR DOMESTIC RESETTLEMENT OF AND ASSISTANCE 
                              TO REFUGEES

  [Sec. 412. (a) Conditions and Considerations.--(1)(A) In 
providing assistance under this section, the Director shall, to 
the extent of available appropriations, (i) make available 
sufficient resources for employment training and placement in 
order to achieve economic self-sufficiency among refugees as 
quickly as possible, (ii) provide refugees with the opportunity 
to acquire sufficient English language training to enable them 
to become effectively resettled as quickly as possible, (iii) 
insure that cash assistance is made available to refugees in 
such a manner as not to discourage their economic self-
sufficiency, in accordance with subsection (e)(2), and (iv) 
insure that women have the same opportunities as men to 
participate in training and instruction.
  [(B) It is the intent of Congress that in providing refugee 
assistance under this section--
          [(i) employable refugees should be placed on jobs as 
        soon as possible after their arrival in the United 
        States;
          [(ii) social service funds should be focused on 
        employment-related services, English-as-a-second-
        language training (in non-work hours where possible), 
        and case-management services; and
          [(iii) local voluntary agency activities should be 
        conducted in close cooperation and advance consultation 
        with State and local governments.
  [(2)(A) The Director and the Federal agency administering 
subsection (b)(1) shall consult regularly (not less often than 
quarterly) with State and local governments and private 
nonprofit voluntary agencies concerning the sponsorship process 
and the intended distribution of refugees among the States and 
localities before their placement in those States and 
localities.
  [(B) The Director shall develop and implement, in 
consultation with representatives of voluntary agencies and 
State and local governments, policies and strategies for the 
placement and resettlement of refugees within the United 
States.
  [(C) Such policies and strategies, to the extent practicable 
and except under such unusual circumstances as the Director may 
recognize, shall--
          [(i) insure that a refugee is not initially placed or 
        resettled in an area highly impacted (as determined 
        under regulations prescribed by the Director after 
        consultation with such agencies and governments) by the 
        presence of refugees or comparable populations unless 
        the refugee has a spouse, parent, sibling, son, or 
        daughter residing in that area,
          [(ii) provide for a mechanism whereby representatives 
        of local affiliates of voluntary agencies regularly 
        (not less often than quarterly) meet with 
        representatives of State and local governments to plan 
        and coordinate in advance of their arrival the 
        appropriate placement of refugees among the various 
        States and localities, and
          [(iii) take into account--
                  [(I) the proportion of refugees and 
                comparable entrants in the population in the 
                area,
                  [(II) the availability of employment 
                opportunities, affordable housing, and public 
                and private resources (including educational, 
                health care, and mental health services) for 
                refugees in the area,
                  [(III) the likelihood of refugees placed in 
                the area becoming self-sufficient and free from 
                long-term dependence on public assistance, and
                  [(IV) the secondary migration of refugees to 
                and from the area that is likely to occur.
  [(D) With respect to the location of placement of refugees 
within a State, the Federal agency administering subsection 
(b)(1) shall, consistent with such policies and strategies and 
to the maximum extent possible, take into account 
recommendations of the State.
  [(3) In the provision of domestic assistance under this 
section, the Director shall make a periodic assessment, based 
on refugee population and other relevant factors, of the 
relative needs of refugees for assistance and services under 
this chapter and the resources available to meet such needs. 
The Director shall compile and maintain data on secondary 
migration of refugees within the United States and, by State of 
residence and nationality, on the proportion of refugees 
receiving cash or medical assistance described in subsection 
(e). In allocating resources, the Director shall avoid 
duplication of services and provide for maximum coordination 
between agencies providing related services.
  [(4)(A) No grant or contract may be awarded under this 
section unless an appropriate proposal and application 
(including a description of the agency's ability to perform the 
services specified in the proposal) are submitted to, and 
approved by, the appropriate administering official. Grants and 
contracts under this section shall be made to those agencies 
which the appropriate administering official determines can 
best perform the services. Payments may be made for activities 
authorized under this chapter in advance or by way of 
reimbursement. In carrying out this section, the Director, the 
Secretary of State, and such other appropriate administering 
official are authorized--
          [(i) to make loans, and
          [(ii) to accept and use money, funds, property, and 
        services of any kind made available by gift, devise, 
        bequest, grant, or otherwise for the purpose of 
        carrying out this section.
  [(B) No funds may be made available under this chapter (other 
than under subsection (b)(1)) to States or political 
subdivisions in the form of block grants, per capita grants, or 
similar consolidated grants or contracts. Such funds shall be 
made available under separate grants or contracts--
          [(i) for medical screening and initial medical 
        treatment under subsection (b)(5),
          [(ii) for services for refugees under subsection 
        (c)(1),
          [(iii) for targeted assistance project grants under 
        subsection (c)(2), and
          [(iv) for assistance for refugee children under 
        subsection (d)(2).
  [(C) The Director may not delegate to a State or political 
subdivision his authority to review or approve grants or 
contracts under this chapter or the terms under which such 
grants or contracts are made.
  [(5) Assistance and services funded under this section shall 
be provided to refugees without regard to race, religion, 
nationality, sex, or political opinion.
  [(6) As a condition for receiving assistance under this 
section, a State must--
          [(A) submit to the Director a plan which provides--
                  [(i) a description of how the State intends 
                to encourage effective refugee resettlement and 
                to promote economic self-sufficiency as quickly 
                as possible,
                  [(ii) a description of how the State will 
                insure that language training and employment 
                services are made available to refugees 
                receiving cash assistance,
                  [(iii) for the designation of an individual, 
                employed by the State, who will be responsible 
                for insuring coordination of public and private 
                resources in refugee resettlement,
                  [(iv) for the care and supervision of and 
                legal responsibility for unaccompanied refugee 
                children in the State, and
                  [(v) for the identification of refugees who 
                at the time of resettlement in the State are 
                determined to have medical conditions 
                requiring, or medical histories indicating a 
                need for, treatment or observation and such 
                monitoring of such treatment or observation as 
                may be necessary;
          [(B) meet standards, goals, and priorities, developed 
        by the Director, which assure the effective 
        resettlement of refugees and which promote their 
        economic self-sufficiency as quickly as possible and 
        the efficient provision of services; and
          [(C) submit to the Director, within a reasonable 
        period of time after the end of each fiscal year, a 
        report on the uses of funds provided under this chapter 
        which the State is responsible for administering.
  [(7) The Secretary, together with the Secretary of State with 
respect to assistance provided by the Secretary of State under 
subsection (b), shall develop a system of monitoring the 
assistance provided under this section. This system shall 
include--
          [(A) evaluations of the effectiveness of the programs 
        funded under this section and the performance of 
        States, grantees, and contractors;
          [(B) financial auditing and other appropriate 
        monitoring to detect any fraud, abuse, or mismanagement 
        in the operation of such programs; and
          [(C) data collection on the services provided and the 
        results achieved.
  [(8) The Attorney General shall provide the Director with 
information supplied by refugees in conjunction with their 
applications to the Attorney General for adjustment of status, 
and the Director shall compile, summarize, and evaluate such 
information.
  [(9) The Secretary, the Secretary of Education, the Attorney 
General, and the Secretary of State may issue such regulations 
as each deems appropriate to carry out this chapter.
  [(10) For purposes of this chapter, the term ``refugee'' 
includes any alien described in section 207(c)(2).
  [(b) Program of Initial Resettlement.--(1)(A) For--
          [(i) fiscal years 1980 and 1981, the Secretary of 
        State is authorized, and
          [(ii) fiscal year 1982 and succeeding fiscal years, 
        the Director (except as provided in subparagraph (B)) 
        is authorized,
                to make grants to, and contracts with, public 
                or private nonprofit agencies for initial 
                resettlement (including initial reception and 
                placement with sponsors) of refugees in the 
                United States. Grants to, or contracts with, 
                private nonprofit voluntary agencies under this 
                paragraph shall be made consistent with the 
                objectives of this chapter, taking into account 
                the different resettlement approaches and 
                practices of such agencies. Resettlement 
                assistance under this paragraph shall be 
                provided in coordination with the Director's 
                provision of other assistance under this 
                chapter. Funds provided to agencies under such 
                grants and contracts may only be obligated or 
                expended during the fiscal year in which they 
                are provided (or the subsequent fiscal year or 
                such subsequent fiscal period as the Federal 
                contracting agency may approve) to carry out 
                the purposes of this subsection.
  [(B) If the President determines that the Director should not 
administer the program under this paragraph, the authority of 
the Director under the first sentence of subparagraph (A) shall 
be exercised by such officer as the President shall from time 
to time specify.
  [(2) The Director is authorized to develop programs for such 
orientation, instruction in English, and job training for 
refugees, and such other education and training of refugees, as 
facilitates their resettlement in the United States. The 
Director is authorized to implement such programs, in 
accordance with the provisions of this section, with respect to 
refugees in the United States. The Secretary of State is 
authorized to implement such programs with respect to refugees 
awaiting entry into the United States.
  [(3) The Secretary is authorized to make arrangements 
(including cooperative arrangements with other Federal 
agencies) for the temporary care of refugees in the United 
States in emergency circumstances, including the establishment 
of processing centers, if necessary, without regard to such 
provisions of law (other than the Renegotiation Act of 1951 and 
section 414(b) of this chapter) regulating the making, 
performance, amendment, or modification of contracts and the 
expenditure of funds of the United States Government as the 
Secretary may specify.
  [(4) The Secretary shall--
          [(A) assure that an adequate number of trained staff 
        are available at the location at which the refugees 
        enter the United States to assure that all necessary 
        medical records are available and in proper order;
          [(B) provide for the identification of refugees who 
        have been determined to have medical conditions 
        affecting the public health and requiring treatment;
          [(C) assure that State or local health officials at 
        the resettlement destination within the United States 
        of each refugee are promptly notified of the refugee's 
        arrival and provided with all applicable medical 
        records; and
          [(D) provide for such monitoring of refugees 
        identified under subparagraph (B) as will insure that 
        they receive appropriate and timely treatment.
The Secretary shall develop and implement methods for 
monitoring and assessing the quality of medical screening and 
related health services provided to refugees awaiting 
resettlement in the United States.
  [(5) The Director is authorized to make grants to, and enter 
into contracts with, State and local health agencies for 
payments to meet their costs of providing medical screening and 
initial medical treatment to refugees.
  [(6) The Comptroller General shall directly conduct an annual 
financial audit of funds expended under each grant or contract 
made under paragraph (1) for fiscal year 1986 and for fiscal 
year 1987.
  [(7) Each grant or contract with an agency under paragraph 
(1) shall require the agency to do the following:
          [(A) To provide quarterly performance and financial 
        status reports to the Federal agency administering 
        paragraph (1).
          [(B)(i) To provide, directly or through its local 
        affiliate, notice to the appropriate county or other 
        local welfare office at the time that the agency 
        becomes aware that a refugee is offered employment and 
        to provide notice to the refugee that such notice has 
        been provided, and
          [(ii) upon request of such a welfare office to which 
        a refugee has applied for cash assistance, to furnish 
        that office with documentation respecting any cash or 
        other resources provided directly by the agency to the 
        refugee under this subsection.
          [(C) To assure that refugees, known to the agency as 
        having been identified pursuant to paragraph (4)(B) as 
        having medical conditions affecting the public health 
        and requiring treatment, report to the appropriate 
        county or other health agency upon their resettlement 
        in an area.
          [(D) To fulfill its responsibility to provide for the 
        basic needs (including food, clothing, shelter, and 
        transportation for job interviews and training) of each 
        refugee resettled and to develop and implement a 
        resettlement plan including the early employment of 
        each refugee resettled and to monitor the 
        implementation of such plan.
          [(E) To transmit to the Federal agency administering 
        paragraph (1) an annual report describing the 
        following:
                  [(i) The number of refugees placed (by county 
                of placement) and the expenditures made in the 
                year under the grant or contract, including the 
                proportion of such expenditures used for 
                administrative purposes and for provision of 
                services.
                  [(ii) The proportion of refugees placed by 
                the agency in the previous year who are 
                receiving cash or medical assistance described 
                in subsection (e).
                  [(iii) The efforts made by the agency to 
                monitor placement of the refugees and the 
                activities of local affiliates of the agency.
                  [(iv) The extent to which the agency has 
                coordinated its activities with local social 
                service providers in a manner which avoids 
                duplication of activities and has provided 
                notices to local welfare offices and the 
                reporting of medical conditions of certain 
                aliens to local health departments in 
                accordance with subparagraphs (B)(i) and (C).
                  [(v) Such other information as the agency 
                administering paragraph (1) deems to be 
                appropriate in monitoring the effectiveness of 
                agencies in carrying out their functions under 
                such grants and contracts.
The agency administering paragraph (1) shall promptly forward a 
copy of each annual report transmitted under subparagraph (E) 
to the Committees on the Judiciary of the House of 
Representatives and of the Senate,
  [(8) The Federal agency administering paragraph (1) shall 
establish criteria for the performance of agencies under grants 
and contracts under that paragraph, and shall include criteria 
relating to an agency's--
          [(A) efforts to reduce welfare dependency among 
        refugees resettled by that agency,
          [(B) collection of travel loans made to refugees 
        resettled by that agency for travel to the United 
        States,
          [(C) arranging for effective local sponsorship and 
        other nonpublic assistance for refugees resettled by 
        that agency,
          [(D) cooperation with refugee mutual assistance 
        associations, local social service providers, health 
        agencies, and welfare offices,
          [(E) compliance with the guidelines established by 
        the Director for the placement and resettlement of 
        refugees within the United States, and
          [(F) compliance with other requirements contained in 
        the grant or contract, including the reporting and 
        other requirements under subsection (b)(7).
The Federal administering agency shall use the criteria in the 
process of awarding or renewing grants and contracts under 
paragraph (1).
  [(c) Project Grants and Contracts for Services for 
Refugees.--(1)(A) The Director is authorized to make grants to, 
and enter into contracts with, public or private nonprofit 
agencies for projects specifically designed--
          [(i) to assist refugees in obtaining the skills which 
        are necessary for economic self-sufficiency, including 
        projects for job training, employment services, day 
        care, professional refresher training, and other 
        recertification services;
          [(ii) to provide training in English where necessary 
        (regardless of whether the refugees are employed or 
        receiving cash or other assistance); and
          [(iii) to provide where specific needs have been 
        shown and recognized by the Director, health (including 
        mental health) services, social services, educational 
        and other services.
  [(B) The funds available for a fiscal year for grants and 
contracts under subparagraph (A) shall be allocated among the 
States based on the total number of refugees (including 
children and adults) who arrived in the United States not more 
than 36 months before the beginning of such fiscal year and who 
are actually residing in each State (taking into account 
secondary migration) as of the beginning of the fiscal year.
  [(C) Any limitation which the Director establishes on the 
proportion of funds allocated to a State under this paragraph 
that the State may use for services other than those described 
in subsection (a)(1)(B)(ii) shall not apply if the Director 
receives a plan (established by or in consultation with local 
governments) and determines that the plan provides for the 
maximum appropriate provision of employment-related services 
for, and the maximum placement of, employable refugees 
consistent with performance standards established under section 
106 of the Job Training Partnership Act.
  [(2)(A) The Director is authorized to make grants to States 
for assistance to counties and similar areas in the States 
where, because of factors such as unusually large refugee 
populations (including secondary migration), high refugee 
concentrations, and high use of public assistance by refugees, 
there exists and can be demonstrated a specific need for 
supplementation of available resources for services to 
refugees.
  [(B) Grants shall be made available under this paragraph--
          [(i) primarily for the purpose of facilitating 
        refugee employment and achievement of self-sufficiency,
          [(ii) in a manner that does not supplant other 
        refugee program funds and that assures that not less 
        than 95 percent of the amount of the grant award is 
        made available to the county or other local entity.
  [(d) Assistance for Refugee Children.--(1) The Secretary of 
Education is authorized to make grants, and enter into 
contracts, for payments for projects to provide special 
educational services (including English language training) to 
refugee children in elementary and secondary schools where a 
demonstrated need has been shown.
  [(2)(A) The Director is authorized to provide assistance, 
reimbursement to States, and grants to and contracts with, 
public and private nonprofit agencies, for the provision of 
child welfare services, including foster care maintenance 
payments and services and health care, furnished to any refugee 
child (except as provided in subparagraph (B)) during the 
thirty-six month period beginning with the first month in which 
such refugee child is in the United States.
  [(B)(i) In the case of a refugee child who is unaccompanied 
by a parent or other close adult relative (as defined by the 
Director), the services described in subparagraph (A) may be 
furnished until the month after the child attains eighteen 
years of age (or such higher age as the State's child welfare 
services plan under part B of title IV of the Social Security 
Act prescribes for the availability of such services to any 
other child in that State).
  [(ii) The Director shall attempt to arrange for the placement 
under the laws of the States of such unaccompanied refugee 
children, who have been accepted for admission to the United 
States, before (or as soon as possible after) their arrival in 
the United States. During any interim period while such a child 
is in the United States or in transit to the United States but 
before the child is so placed, the Director shall assume legal 
responsibility (including financial responsibility) for the 
child, if necessary, and is authorized to make necessary 
decisions to provide for the child's immediate care.
  [(iii) In carrying out the Director's responsibilities under 
clause (ii), the Director is authorized to enter into contracts 
with appropriate public or private nonprofit agencies under 
such conditions as the Director determines to be appropriate.
  [(iv) The Director shall prepare and maintain a list of (I) 
all such unaccompanied children who have entered the United 
States after April 1, 1975, (II) the names and last known 
residences of their parents (if living) at the time of arrival, 
and (III) the children's location, status, and progress.
  [(e) Cash Assistance and Medical Assistance to Refugees.--(1) 
The Director is authorized to provide assistance, reimbursement 
to States, and grants to, and contracts with, public or private 
nonprofit agencies for 100 per centum of the cash assistance 
and medical assistance provided to any refugee during the 
thirty-six month period beginning with the first month in which 
such refugee has entered the United States and for the 
identifiable and reasonable administrative costs of providing 
this assistance.
  [(2)(A) Cash assistance provided under this subsection to an 
employable refugee is conditioned, except for good cause 
shown--
          [(i) on the refugee's registration with an 
        appropriate agency providing employment services 
        described in subsection (c)(1)(A)(i), or, if there is 
        no such agency available, with an appropriate State or 
        local employment service;
          [(ii) on the refugee's participation in any available 
        and appropriate social service or targeted assistance 
        program (funded under subsection (c)) providing job or 
        language training in the area in which the refugee 
        resides; and
          [(iii) on the refugee's acceptance of appropriate 
        offers of employment.
  [(B) Cash assistance shall not be made available to refugees 
who are full-time students in institutions of higher education 
(as defined by the Director after consultation with the 
Secretary of Education).
  [(C) In the case of a refugee who--
          [(i) refuses an offer of employment which has been 
        determined to be appropriate either by the agency 
        responsible for the initial resettlement of the refugee 
        under subsection (b) or by the appropriate State or 
        local employment service,
          [(ii) refuses to go to a job interview which has been 
        arranged through such agency or service, or
          [(iii) refuses to participate in a social service or 
        targeted assistance program referred to in subparagraph 
        (A)(ii) which such agency or service determines to be 
        available and appropriate,
cash assistance to the refugee shall be terminated (after 
opportunity for an administrative hearing) for a period of 
three months (for the first such refusal) or for a period of 
six months (for any subsequent refusal).
  [(3) The Director shall develop plans to provide English 
training and other appropriate services and training to 
refugees receiving cash assistance.
  [(4) If a refugee is eligible for aid or assistance under a 
State program funded under part A of title IV or under title 
XIX of the Social Security Act, or for supplemental security 
income benefits (including State supplementary payments) under 
the program established under title XVI of that Act, funds 
authorized under this subsection shall only be used for the 
non-Federal share of such aid or assistance, or for such 
supplementary payments, with respect to cash and medical 
assistance provided with respect to such refugee under this 
paragraph.
  [(5) The Director is authorized to allow for the provision of 
medical assistance under paragraph (1) to any refugee, during 
the one-year period after entry, who does not qualify for 
assistance under a State plan approved under title XIX of the 
Social Security Act on account of any resources or income 
requirement of such plan, but only if the Director determines 
that--
          [(A) this will (i) encourage economic self-
        sufficiency, or (ii) avoid a significant burden on 
        State and local governments; and
          [(B) the refugee meets such alternative financial 
        resources and income requirements as the Director shall 
        establish.
  [(6) As a condition for receiving assistance, reimbursement, 
or a contract under this subsection and notwithstanding any 
other provision of law, a State or agency must provide 
assurances that whenever a refugee applies for cash or medical 
assistance for which assistance or reimbursement is provided 
under this subsection, the State or agency must notify promptly 
the agency (or local affiliate) which provided for the initial 
resettlement of the refugee under subsection (b) of the fact 
that the refugee has so applied.
  [(7)(A) The Secretary shall develop and implement alternative 
projects for refugees who have been in the United States less 
than thirty-six months, under which refugees are provided 
interim support, medical services, support services, and case 
management, as needed, in a manner that encourages self-
sufficiency, reduces welfare dependency, and fosters greater 
coordination among the resettlement agencies and service 
providers. The Secretary may permit alternative projects to 
cover specific groups of refugees who have been in the United 
States 36 months or longer if the Secretary determines that 
refugees in the group have been significantly and 
disproportionately dependent on welfare and need the services 
provided under the project in order to become self-sufficient 
and that their coverage under the projects would be cost-
effective.
  [(B) Refugees covered under such alternative projects shall 
be precluded from receiving cash or medical assistance under 
any other paragraph of this subsection or under title XIX or 
part A of title IV of the Social Security Act.
  [(C) The Secretary shall report to Congress not later than 
October 31, 1985, on the results of these projects and on any 
recommendations respecting changes in the refugee assistance 
program under this section to take into account such results.
  [(D) To the extent that the use of such funds is consistent 
with the purposes of such provisions, funds appropriated under 
section 414(a) of this Act, part A of title IV of the Social 
Security Act, or title XIX of such Act, may be used for the 
purpose of implementing and evaluating alternative projects 
under this paragraph.
  [(8) In its provision of assistance to refugees, a State or 
political subdivision shall consider the recommendations of, 
and assistance provided by, agencies with grants or contracts 
under subsection (b)(1).
  [(f) Assistance to States and Counties for Incarceration of 
Certain Cuban Nationals.--(1) The Attorney General shall pay 
compensation to States and to counties for costs incurred by 
the States and counties to confine in prisons, during the 
fiscal year for which such payment is made, nationals of Cuba 
who--
          [(A) were paroled into the United States in 1980 by 
        the Attorney General,
          [(B) after such parole committed any violation of 
        State or county law for which a term of imprisonment 
        was imposed, and
          [(C) at the time of such parole and such violation 
        were not aliens lawfully admitted to the United 
        States--
                  [(i) for permanent residence, or
                  [(ii) under the terms of an immigrant or a 
                nonimmigrant visa issued,
        under this Act.
  [(2) For a State or county to be eligible to receive 
compensation under this subsection, the chief executive officer 
of the State or county shall submit to the Attorney General, in 
accordance with rules to be issued by the Attorney General, an 
application containing--
          [(A) the number and names of the Cuban nationals with 
        respect to whom the State or county is entitled to such 
        compensation, and
          [(B) such other information as the Attorney General 
        may require.
  [(3) For a fiscal year the Attorney General shall pay the 
costs described in paragraph (1) to each State and county 
determined by the Attorney General to be eligible under 
paragraph (2); except that if the amounts appropriated for the 
fiscal year to carry out this subsection are insufficient to 
cover all such payments, each of such payments shall be ratably 
reduced so that the total of such payments equals the amounts 
so appropriated.
  [(4) The authority of the Attorney General to pay 
compensation under this subsection shall be effective for any 
fiscal year only to the extent and in such amounts as may be 
provided in advance in appropriation Acts.
  [(5) It shall be the policy of the United States Government 
that the President, in consultation with the Attorney General 
and all other appropriate Federal officials and all appropriate 
State and county officials referred to in paragraph (2), shall 
place top priority on seeking the expeditious removal from this 
country and the return to Cuba of Cuban nationals described in 
paragraph (1) by any reasonable and responsible means, and to 
this end the Attorney General may use the funds authorized to 
carry out this subsection to conduct such policy.]

           *       *       *       *       *       *       *

                              ----------                              

                REFUGEE EDUCATION ASSISTANCE ACT OF 1980

           *       *       *       *       *       *       *
    TITLE V--OTHER PROVISIONS RELATING TO CUBAN AND HAITIAN ENTRANTS

             AUTHORITIES FOR OTHER PROGRAMS AND ACTIVITIES

  Sec. 501. [(a)(1) The President shall exercise authorities 
with respect to Cuban and Haitian entrants which are identical 
to the authorities which are exercised under chapter 2 of title 
IV of the Immigration and Nationality Act. The authorizations 
provided in section 414 of that Act shall be available to carry 
out this section without regard to the dollar limitation 
contained in section 414(a)(2).
  [(2) Any reference in chapter III of title I of the 
Supplemental Appropriations and Rescission Act, 1980, to 
section 405(c)(2) of the International Security and Development 
Assistance Act of 1980 or to the International Security Act of 
1980 shall be construed to be a reference to paragraph (1) of 
this subsection.]

           *       *       *       *       *       *       *

                              ----------                              

                       SECOND CHANCE ACT OF 2007

           *       *       *       *       *       *       *
TITLE II--ENHANCED DRUG TREATMENT AND MENTORING GRANT PROGRAMS

           *       *       *       *       *       *       *

             Subtitle C--Administration of Justice Reforms

             CHAPTER 1--IMPROVING FEDERAL OFFENDER REENTRY

[SEC. 231. FEDERAL PRISONER REENTRY INITIATIVE.

  [(a) In General.--The Attorney General, in coordination with 
the Director of the Bureau of Prisons, shall, subject to the 
availability of appropriations, conduct the following 
activities to establish a Federal prisoner reentry initiative:
          [(1) The establishment of a Federal prisoner reentry 
        strategy to help prepare prisoners for release and 
        successful reintegration into the community, including, 
        at a minimum, that the Bureau of Prisons--
                  [(A) assess each prisoner's skill level 
                (including academic, vocational, health, 
                cognitive, interpersonal, daily living, and 
                related reentry skills) at the beginning of the 
                term of imprisonment of that prisoner to 
                identify any areas in need of improvement prior 
                to reentry;
                  [(B) generate a skills development plan for 
                each prisoner to monitor skills enhancement and 
                reentry readiness throughout incarceration;
                  [(C) determine program assignments for 
                prisoners based on the areas of need identified 
                through the assessment described in 
                subparagraph (A);
                  [(D) ensure that priority is given to the 
                reentry needs of high-risk populations, such as 
                sex offenders, career criminals, and prisoners 
                with mental health problems;
                  [(E) coordinate and collaborate with other 
                Federal agencies and with State, Tribal, and 
                local criminal justice agencies, community-
                based organizations, and faith-based 
                organizations to help effectuate a seamless 
                reintegration of prisoners into communities;
                  [(F) collect information about a prisoner's 
                family relationships, parental 
                responsibilities, and contacts with children to 
                help prisoners maintain important familial 
                relationships and support systems during 
                incarceration and after release from custody; 
                and
                  [(G) provide incentives for prisoner 
                participation in skills development programs.
          [(2) Incentives for a prisoner who participates in 
        reentry and skills development programs which may, at 
        the discretion of the Director, include--
                  [(A) the maximum allowable period in a 
                community confinement facility; and
                  [(B) such other incentives as the Director 
                considers appropriate (not including a 
                reduction of the term of imprisonment).
  [(b) Identification and Release Assistance for Federal 
Prisoners.--
          [(1) Obtaining identification.--The Director shall 
        assist prisoners in obtaining identification (including 
        a social security card, driver's license or other 
        official photo identification, or birth certificate) 
        prior to release.
          [(2) Assistance developing release plan.--At the 
        request of a direct-release prisoner, a representative 
        of the United States Probation System shall, prior to 
        the release of that prisoner, help that prisoner 
        develop a release plan.
          [(3) Direct-release prisoner defined.--In this 
        section, the term ``direct-release prisoner'' means a 
        prisoner who is scheduled for release and will not be 
        placed in prerelease custody.
  [(c) Improved Reentry Procedures for Federal Prisoners.--The 
Attorney General shall take such steps as are necessary to 
modify the procedures and policies of the Department of Justice 
with respect to the transition of offenders from the custody of 
the Bureau of Prisons to the community--
          [(1) to enhance case planning and implementation of 
        reentry programs, policies, and guidelines;
          [(2) to improve such transition to the community, 
        including placement of such individuals in community 
        corrections facilities; and
          [(3) to foster the development of collaborative 
        partnerships with stakeholders at the national, State, 
        and local levels to facilitate the exchange of 
        information and the development of resources to enhance 
        opportunities for successful offender reentry.
  [(d) Duties of the Bureau of Prisons.--
          [(1) Duties of the bureau of prisons expanded.--
        Section of title 18, United States Code, is amended--
                  [(A) in paragraph (4), by striking ``and'' at 
                the end;
                  [(B) in paragraph (5), by striking the period 
                and inserting a semicolon; and
                  [(C) by adding at the end the following:
                  [``(D) establish prerelease planning 
                procedures that help prisoners--
                          [``(i) apply for Federal and State 
                        benefits upon release (including Social 
                        Security Cards, Social Security 
                        benefits, and veterans' benefits); and
                          [``(ii) secure such identification 
                        and benefits prior to release, subject 
                        to any limitations in law; and
                  [``(E) establish reentry planning procedures 
                that include providing Federal prisoners with 
                information in the following areas:
                          [``(i) Health and nutrition.
                          [``(ii) Employment.
                          [``(iii) Literacy and education.
                          [``(iv) Personal finance and consumer 
                        skills.
                          [``(v) Community resources.
                          [``(vi) Personal growth and 
                        development.
                          [``(vii) Release requirements and 
                        procedures.''.
          [(2) Measuring the removal of obstacles to reentry.--
                  [(A) Coding required.--The Director shall 
                ensure that each institution within the Bureau 
                of Prisons codes the reentry needs and deficits 
                of prisoners, as identified by an assessment 
                tool that is used to produce an individualized 
                skills development plan for each inmate.
                  [(B) Tracking.--In carrying out this 
                paragraph, the Director shall quantitatively 
                track the progress in responding to the reentry 
                needs and deficits of individual inmates.
                  [(C) Annual report.--On an annual basis, the 
                Director shall prepare and submit to the 
                Committee on the Judiciary of the Senate and 
                the Committee on the Judiciary of the House of 
                Representatives a report that documents the 
                progress of the Bureau of Prisons in responding 
                to the reentry needs and deficits of inmates.
                  [(D) Evaluation.--The Director shall ensure 
                that--
                          [(i) the performance of each 
                        institution within the Bureau of 
                        Prisons in enhancing skills and 
                        resources to assist in reentry is 
                        measured and evaluated using recognized 
                        measurements; and
                          [(ii) plans for corrective action are 
                        developed and implemented as necessary.
          [(3) Measuring and improving recidivism outcomes.--
                  [(A) Annual report required.--
                          [(i) In general.--At the end of each 
                        fiscal year, the Director shall submit 
                        to the Committee on the Judiciary of 
                        the Senate and the Committee on the 
                        Judiciary of the House of 
                        Representatives a report containing 
                        statistics demonstrating the relative 
                        reduction in recidivism for inmates 
                        released by the Bureau of Prisons 
                        within that fiscal year and the 2 prior 
                        fiscal years, comparing inmates who 
                        participated in major inmate programs 
                        (including residential drug treatment, 
                        vocational training, and prison 
                        industries) with inmates who did not 
                        participate in such programs. Such 
                        statistics shall be compiled separately 
                        for each such fiscal year.
                          [(ii) Scope.--A report under this 
                        paragraph is not required to include 
                        statistics for a fiscal year that 
                        begins before the date of the enactment 
                        of this Act.
                  [(B) Measure used.--In preparing the reports 
                required by subparagraph (A), the Director 
                shall, in consultation with the Director of the 
                Bureau of Justice Statistics, select a measure 
                for recidivism (such as rearrest, 
                reincarceration, or any other valid, evidence-
                based measure) that the Director considers 
                appropriate and that is consistent with the 
                research undertaken by the Bureau of Justice 
                Statistics under section 241(b)(6).
                  [(C) Goals.--
                          [(i) In general.--After the Director 
                        submits the first report required by 
                        subparagraph (A), the Director shall 
                        establish goals for reductions in 
                        recidivism rates and shall work to 
                        attain those goals.
                          [(ii) Contents.--The goals 
                        established under clause (i) shall use 
                        the relative reductions in recidivism 
                        measured for the fiscal year covered by 
                        the first report required by 
                        subparagraph (A) as a baseline rate, 
                        and shall include--
                                  [(I) a 5-year goal to 
                                increase, at a minimum, the 
                                baseline relative reduction 
                                rate of recidivism by 2 
                                percent; and
                                  [(II) a 10-year goal to 
                                increase, at a minimum, the 
                                baseline relative reduction 
                                rate of recidivism by 5 percent 
                                within 10 fiscal years.
          [(4) Format.--Any written information that the Bureau 
        of Prisons provides to inmates for reentry planning 
        purposes shall use common terminology and language.
          [(5) Medical care.--The Bureau of Prisons shall 
        provide the United States Probation and Pretrial 
        Services System with relevant information on the 
        medical care needs and the mental health treatment 
        needs of inmates scheduled for release from custody. 
        The United States Probation and Pretrial Services 
        System shall take this information into account when 
        developing supervision plans in an effort to address 
        the medical care and mental health care needs of such 
        individuals. The Bureau of Prisons shall provide 
        inmates with a sufficient amount of all necessary 
        medications (which will normally consist of, at a 
        minimum, a 2-week supply of such medications) upon 
        release from custody.
  [(e) Encouragement of Employment of Former Prisoners.--The 
Attorney General, in consultation with the Secretary of Labor, 
shall take such steps as are necessary to educate employers and 
the one-stop partners and one-stop operators (as such terms are 
defined in section 101 of the Workforce Investment Act of 1998 
()) that provide services at any center operated under a one-
stop delivery system established under section 134(c) of the 
Workforce Investment Act of 1998 () regarding incentives 
(including the Federal bonding program of the Department of 
Labor and tax credits) for hiring former Federal, State, or 
local prisoners.
  [(f) Medical Care for Prisoners.--Section of title 18, United 
States Code, is further amended by adding at the end the 
following new subsection:
  [``(g) Continued Access to Medical Care.--
          [``(1) In general.--In order to ensure a minimum 
        standard of health and habitability, the Bureau of 
        Prisons should ensure that each prisoner in a community 
        confinement facility has access to necessary medical 
        care, mental health care, and medicine through 
        partnerships with local health service providers and 
        transition planning.
          [``(2) Definition.--In this subsection, the term 
        `community confinement' has the meaning given that term 
        in the application notes under section 5F1.1 of the 
        Federal Sentencing Guidelines Manual, as in effect on 
        the date of the enactment of the Second Chance Act of 
        2007.''.
  [(g) Elderly and Family Reunification for Certain Nonviolent 
Offenders Pilot Program.--
          [(1) Program authorized.--
                  [(A) In general.--The Attorney General shall 
                conduct a pilot program to determine the 
                effectiveness of removing eligible elderly 
                offenders from a Bureau of Prisons facility and 
                placing such offenders on home detention until 
                the expiration of the prison term to which the 
                offender was sentenced.
                  [(B) Placement in home detention.--In 
                carrying out a pilot program as described in 
                subparagraph (A), the Attorney General may 
                release some or all eligible elderly offenders 
                from the Bureau of Prisons facility to home 
                detention.
                  [(C) Waiver.--The Attorney General is 
                authorized to waive the requirements of section 
                of title 18, United States Code, as necessary 
                to provide for the release of some or all 
                eligible elderly offenders from the Bureau of 
                Prisons facility to home detention for the 
                purposes of the pilot program under this 
                subsection.
          [(2) Violation of terms of home detention.--A 
        violation by an eligible elderly offender of the terms 
        of home detention (including the commission of another 
        Federal, State, or local crime) shall result in the 
        removal of that offender from home detention and the 
        return of that offender to the designated Bureau of 
        Prisons institution in which that offender was 
        imprisoned immediately before placement on home 
        detention under paragraph (1), or to another 
        appropriate Bureau of Prisons institution, as 
        determined by the Bureau of Prisons.
          [(3) Scope of pilot program.--A pilot program under 
        paragraph (1) shall be conducted through at least one 
        Bureau of Prisons facility designated by the Attorney 
        General as appropriate for the pilot program and shall 
        be carried out during fiscal years 2009 and 2010.
          [(4) Implementation and evaluation.--The Attorney 
        General shall monitor and evaluate each eligible 
        elderly offender placed on home detention under this 
        section, and shall report to Congress concerning the 
        experience with the program at the end of the period 
        described in paragraph (3). The Administrative Office 
        of the United States Courts and the United States 
        probation offices shall provide such assistance and 
        carry out such functions as the Attorney General may 
        request in monitoring, supervising, providing services 
        to, and evaluating eligible elderly offenders released 
        to home detention under this section.
          [(5) Definitions.--In this section:
                  [(A) Eligible elderly offender.--The term 
                ``eligible elderly offender'' means an offender 
                in the custody of the Bureau of Prisons--
                          [(i) who is not less than 65 years of 
                        age;
                          [(ii) who is serving a term of 
                        imprisonment that is not life 
                        imprisonment based on conviction for an 
                        offense or offenses that do not include 
                        any crime of violence (as defined in 
                        section of title 18, United States 
                        Code), sex offense (as defined in 
                        section 111(5) of the Sex Offender 
                        Registration and Notification Act), 
                        offense described in section of title 
                        18, United States Code, or offense 
                        under chapter 37 of title 18, United 
                        States Code, and has served the greater 
                        of 10 years or 75 percent of the term 
                        of imprisonment to which the offender 
                        was sentenced;
                          [(iii) who has not been convicted in 
                        the past of any Federal or State crime 
                        of violence, sex offense, or other 
                        offense described in clause (ii);
                          [(iv) who has not been determined by 
                        the Bureau of Prisons, on the basis of 
                        information the Bureau uses to make 
                        custody classifications, and in the 
                        sole discretion of the Bureau, to have 
                        a history of violence, or of engaging 
                        in conduct constituting a sex offense 
                        or other offense described in clause 
                        (ii);
                          [(v) who has not escaped, or 
                        attempted to escape, from a Bureau of 
                        Prisons institution;
                          [(vi) with respect to whom the Bureau 
                        of Prisons has determined that release 
                        to home detention under this section 
                        will result in a substantial net 
                        reduction of costs to the Federal 
                        Government; and
                          [(vii) who has been determined by the 
                        Bureau of Prisons to be at no 
                        substantial risk of engaging in 
                        criminal conduct or of endangering any 
                        person or the public if released to 
                        home detention.
                  [(B) Home detention.--The term ``home 
                detention'' has the same meaning given the term 
                in the Federal Sentencing Guidelines as of the 
                date of the enactment of this Act, and includes 
                detention in a nursing home or other 
                residential long-term care facility.
                  [(C) Term of imprisonment.--The term ``term 
                of imprisonment'' includes multiple terms of 
                imprisonment ordered to run consecutively or 
                concurrently, which shall be treated as a 
                single, aggregate term of imprisonment for 
                purposes of this section.
  [(h) Federal Remote Satellite Tracking and Reentry Training 
Program.--
          [(1) Establishment of program.--The Director of the 
        Administrative Office of the United States Courts, in 
        consultation with the Attorney General, may establish 
        the Federal Remote Satellite Tracking and Reentry 
        Training (ReStart) program to promote the effective 
        reentry into the community of high risk individuals.
          [(2) High risk individuals.--For purposes of this 
        section, the term ``high risk individual'' means--
                  [(A) an individual who is under supervised 
                release, with respect to a Federal offense, and 
                who has previously violated the terms of a 
                release granted such individual following a 
                term of imprisonment; or
                  [(B) an individual convicted of a Federal 
                offense who is at a high risk for recidivism, 
                as determined by the Director of the Bureau of 
                Prisons, and who is eligible for early release 
                pursuant to voluntary participation in a 
                program of residential substance abuse 
                treatment under section of title 18, United 
                States Code, or a program described in this 
                section.
          [(3) Program elements.--The program authorized under 
        paragraph (1) shall include, with respect to high risk 
        individuals participating in such program, the 
        following core elements:
                  [(A) A system of graduated levels of 
                supervision, that uses, as appropriate and 
                indicated--
                          [(i) satellite tracking, global 
                        positioning, remote satellite, and 
                        other tracking or monitoring 
                        technologies to monitor and supervise 
                        such individuals in the community; and
                          [(ii) community corrections 
                        facilities and home confinement.
                  [(B) Substance abuse treatment and aftercare 
                related to such treatment, mental and medical 
                health treatment and aftercare related to such 
                treatment, vocational and educational training, 
                life skills instruction, conflict resolution 
                skills training, batterer intervention 
                programs, and other programs to promote 
                effective reentry into the community as 
                appropriate.
                  [(C) Involvement of the family of such an 
                individual, a victim advocate, and the victim 
                of the offense committed by such an individual, 
                if such involvement is safe for such victim 
                (especially in a domestic violence case).
                  [(D) A methodology, including outcome 
                measures, to evaluate the program.
                  [(E) Notification to the victim of the 
                offense committed by such an individual of the 
                status and nature of such an individual's 
                reentry plan.
  [(i) Authorization for Appropriations for Bureau of 
Prisons.--There are authorized to be appropriated to the 
Attorney General to carry out this section, $5,000,000 for each 
of fiscal years 2009 and 2010.]

           *       *       *       *       *       *       *

                              ----------                              

       WOMEN IN APPRENTICESHIP AND NONTRADITIONAL OCCUPATIONS ACT

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

[SECTION 1. SHORT TITLE.

  [This Act shall be cited as the ``Women in Apprenticeship and 
Nontraditional Occupations Act''.

[SEC. 2. FINDINGS; STATEMENT OF PURPOSE.

  [(a) Findings.--The Congress finds that--
          [(1) American businesses now and for the remainder of 
        the 20th century will face a dramatically different 
        labor market than the one to which they have become 
        accustomed;
          [(2) two in every three new entrants to the work 
        force will be women, and to meet labor needs such women 
        must work in all occupational areas including in 
        apprenticeable occupations and nontraditional 
        occupations;
          [(3) women face significant barriers to their full 
        and effective participation in apprenticeable 
        occupations and nontraditional occupations;
          [(4) the business community must be prepared to 
        address the barriers that women have to such jobs, in 
        order to successfully integrate them into the work 
        force; and
          [(5) few resources are available to employers and 
        unions who need assistance in recruiting, training, and 
        retaining women in apprenticeable occupations and other 
        nontraditional occupations.
  [(b) Purpose.--It is the purpose of this Act to provide 
technical assistance to employers and labor unions to encourage 
employment of women in apprenticeable occupations and 
nontraditional occupations. Such assistance will enable 
business to meet the challenge of Workforce 2000 by preparing 
employers to successfully recruit, train, and retain women in 
apprenticeable occupations and nontraditional occupations and 
will expand the employment and self-sufficiency options of 
women. This purpose will be achieved by--
          [(1) promoting the program to employers and labor 
        unions to inform them of the availability of technical 
        assistance which will assist them in preparing the 
        workplace to employ women in apprenticeable occupations 
        and nontraditional occupations;
          [(2) providing grants to community-based 
        organizations to deliver technical assistance to 
        employers and labor unions to prepare them to recruit, 
        train, and employ women in apprenticeable occupations 
        and nontraditional occupations;
          [(3) authorizing the Department of Labor to serve as 
        a liaison between employers, labor, and the community-
        based organizations providing technical assistance, 
        through its national office and its regional 
        administrators; and
          [(4) conducting a comprehensive study to examine the 
        barriers to the participation of women in 
        apprenticeable occupations and nontraditional 
        occupations and to develop recommendations for the 
        workplace to eliminate such barriers.

[SEC. 3. OUTREACH TO EMPLOYERS AND LABOR UNIONS.

  [(a) In General.--With funds available to the Secretary of 
Labor to carry out the operations of the Department of Labor in 
fiscal year 1994 and subsequent fiscal years, the Secretary 
shall carry out an outreach program to inform employers of 
technical assistance available under section 4(a) to assist 
employers to prepare the workplace to employ women in 
apprenticeable occupations and other nontraditional 
occupations.
          [(1) Under such program the Secretary shall provide 
        outreach to employers through, but not limited to, the 
        private industry councils in each service delivery 
        area.
          [(2) The Secretary shall provide outreach to labor 
        unions through, but not limited to, the building trade 
        councils, joint apprenticeable occupations councils, 
        and individual labor unions.
  [(b) Priority.--The Secretary shall give priority to 
providing outreach to employers located in areas that have 
nontraditional employment and training programs specifically 
targeted to women.

[SEC. 4. TECHNICAL ASSISTANCE.

  [(a) In General.--With funds appropriated to carry out this 
section, the Secretary shall make grants to community-based 
organizations to provide technical assistance to employers and 
labor unions selected under subsection (b). Such technical 
assistance may include--
          [(1) developing outreach and orientation sessions to 
        recruit women into the employers' apprenticeable 
        occupations and nontraditional occupations;
          [(2) developing preapprenticeable occupations or 
        nontraditional skills training to prepare women for 
        apprenticeable occupations or nontraditional 
        occupations;
          [(3) providing ongoing orientations for employers, 
        unions, and workers on creating a successful 
        environment for women in apprenticeable occupations or 
        nontraditional occupations;
          [(4) setting up support groups and facilitating 
        networks for women in nontraditional occupations on or 
        off the job site to improve their retention;
          [(5) setting up a local computerized data base 
        referral system to maintain a current list of 
        tradeswomen who are available for work;
          [(6) serving as a liaison between tradeswomen and 
        employers and tradeswomen and labor unions to address 
        workplace issues related to gender; and
          [(7) conducting exit interviews with tradeswomen to 
        evaluate their on-the-job experience and to assess the 
        effectiveness of the program.
  [(b) Selection of Employer and Labor Unions.--The Secretary 
shall select a total of 50 employers or labor unions to receive 
technical assistance provided with grants made under subsection 
(a).

[SEC. 5. COMPETITIVE GRANTS.

  [(a) In General.--Each community-based organization that 
desires to receive a grant to provide technical assistance 
under section 4(a) to employers and labor unions shall submit 
an application to the Secretary at such time, in such manner, 
and accompanied by such information as the Secretary may 
reasonably require.
  [(b) Priority.--In awarding grants under section 4(a), the 
Secretary shall give priority to applications from community-
based organizations that--
          [(1) demonstrate experience preparing women to gain 
        employment in apprenticeable occupations or other 
        nontraditional occupations;
          [(2) demonstrate experience working with the business 
        community to prepare them to place women in 
        apprenticeable occupations or other nontraditional 
        occupations;
          [(3) have tradeswomen or women in nontraditional 
        occupations as active members of the organization, as 
        either employed staff or board members; and
          [(4) have experience delivering technical assistance.

[SEC. 6. APPLICATIONS.

  [To be eligible to be selected under section 4(b) to receive 
technical assistance provided with grants made under section 
4(a), an employer or labor union shall submit an application to 
the Secretary at such time, in such manner and containing or 
accompanied by such information as the Secretary may reasonably 
require. At a minimum, the application should include--
          [(1) a description of the need for technical 
        assistance;
          [(2) a description of the types of apprenticeable 
        occupations or nontraditional occupations in which the 
        employer or labor union would like to train or employ 
        women;
          [(3) assurances that there are or will be suitable 
        and appropriate positions available in the 
        apprenticeable occupations program or in the 
        nontraditional occupations being targeted; and
          [(4) commitments that reasonable efforts shall be 
        made to place qualified women in apprenticeable 
        occupations or nontraditional occupations.

[SEC. 7. LIAISON ROLE OF DEPARTMENT OF LABOR.

  [The Department of Labor shall serve as a liaison among 
employers, labor unions, and community-based organizations. The 
liaison role may include--
          [(1) coordination of employers, labor unions, and 
        community-based organizations with respect to technical 
        assistance provided under section 4(a);
          [(2) conducting regular assessment meetings with 
        representatives of employers, labor unions, and 
        community-based organizations with respect to such 
        technical assistance; and
          [(3) seeking the input of employers and labor unions 
        with respect to strategies and recommendations for 
        improving such technical assistance.

[SEC. 8. STUDY OF THE BARRIERS TO THE PARTICIPATION OF WOMEN IN 
                    APPRENTICEABLE OCCUPATIONS AND NONTRADITIONAL 
                    OCCUPATIONS.

  [(a) Study.--With funds available to the Secretary to carry 
out the operations of the Department of Labor in fiscal years 
1994 and 1995, the Secretary shall conduct a study of the 
participation of women in apprenticeable occupations and 
nontraditional occupations. The study shall examine--
          [(1) the barriers to participation of women in 
        apprenticeable occupations and nontraditional 
        occupations;
          [(2) strategies for overcoming such barriers;
          [(3) the retention rates for women in apprenticeable 
        occupations and nontraditional occupations;
          [(4) strategies for retaining women in apprenticeable 
        occupations and nontraditional occupations;
          [(5) the effectiveness of the technical assistance 
        provided by the community-based organizations; and
          [(6) other relevant issues affecting the 
        participation of women in apprenticeable occupations 
        and nontraditional occupations.
  [(b) Report.--Not later than 2 years after the date of the 
enactment of this Act, the Secretary shall submit to the 
Congress a report containing a summary of the results of the 
study described in subsection (a) and such recommendations as 
the Secretary determines to be appropriate.

[SEC. 9. DEFINITIONS.

  [For purposes of this Act:
          [(1) The term ``community-based organization'' means 
        a community-based organization as defined in section 
        4(5) of the Job Training Partnership Act (29 U.S.C. 
        1501(5)), that has demonstrated experience 
        administering programs that train women for 
        apprenticeable occupations or other nontraditional 
        occupations.
          [(2) The term ``nontraditional occupation'' means 
        jobs in which women make up 25 percent or less of the 
        total number of workers in that occupation.
          [(3) The term ``Secretary'' means the Secretary of 
        Labor.

[SEC. 10. TECHNICAL ASSISTANCE PROGRAM AUTHORIZATION.

  [There is authorized to be appropriated $1,000,000 to carry 
out section 4.]
                              ----------                              

                      TITLE 38, UNITED STATES CODE

           *       *       *       *       *       *       *
PART II--GENERAL BENEFITS

           *       *       *       *       *       *       *

CHAPTER 20--BENEFITS FOR HOMELESS VETERANS

           *       *       *       *       *       *       *

                 SUBCHAPTER III--TRAINING AND OUTREACH

[Sec. 2021. Homeless veterans reintegration programs

  [(a) In General.--Subject to the availability of 
appropriations provided for such purpose, the Secretary of 
Labor shall conduct, directly or through grant or contract, 
such programs as the Secretary determines appropriate to 
provide job training, counseling, and placement services 
(including job readiness and literacy and skills training) to 
expedite the reintegration of homeless veterans into the labor 
force.
  [(b) Requirement To Monitor Expenditures of Funds.--(1) The 
Secretary of Labor shall collect such information as that 
Secretary considers appropriate to monitor and evaluate the 
distribution and expenditure of funds appropriated to carry out 
this section. The information shall include data with respect 
to the results or outcomes of the services provided to each 
homeless veteran under this section.
  [(2) Information under paragraph (1) shall be furnished in 
such form and manner as the Secretary of Labor may specify.
  [(c) Administration Through the Assistant Secretary of Labor 
for Veterans' Employment and Training.--The Secretary of Labor 
shall carry out this section through the Assistant Secretary of 
Labor for Veterans' Employment and Training.
  [(d) Biennial Report to Congress.--Not less than every two 
years, the Secretary of Labor shall submit to Congress a report 
on the programs conducted under this section. The Secretary of 
Labor shall include in the report an evaluation of services 
furnished to veterans under this section and an analysis of the 
information collected under subsection (b).
  [(e) Authorization of Appropriations.--(1) There are 
authorized to be appropriated to carry out this section amounts 
as follows:
          [(A) $50,000,000 for fiscal year 2002.
          [(B) $50,000,000 for fiscal year 2003.
          [(C) $50,000,000 for fiscal year 2004.
          [(D) $50,000,000 for fiscal year 2005.
          [(E) $50,000,000 for fiscal year 2006.
          [(F) $50,000,000 for each of fiscal years 2007 
        through 2012.
  [(2) Funds appropriated to carry out this section shall 
remain available until expended. Funds obligated in any fiscal 
year to carry out this section may be expended in that fiscal 
year and the succeeding fiscal year.]

           *       *       *       *       *       *       *

PART III--READJUSTMENT AND RELATED BENEFITS

           *       *       *       *       *       *       *

           CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS

SUBCHAPTER I--STATE APPROVING AGENCIES

           *       *       *       *       *       *       *

Sec. 3672. Approval of courses

  (a) * * *

           *       *       *       *       *       *       *

  (d)(1) Pursuant to regulations prescribed by the Secretary in 
consultation with the Secretary of Labor, the Secretary and 
State approving agencies shall actively promote the development 
of apprenticeship and on the job training programs for the 
purposes of sections 3677 and 3687 of this title and shall 
utilize the services of [disabled veterans' outreach program 
specialists under section 4103A] veteran employment specialists 
appointed under section 134(f) of the Workforce Investment Act 
of this title to promote the development of such programs. The 
Secretary of Labor shall provide assistance and services to the 
Secretary, and to State approving agencies, to increase the use 
of apprenticeships.

           *       *       *       *       *       *       *

    CHAPTER 41--JOB COUNSELING, TRAINING, AND PLACEMENT SERVICE FOR 
                                VETERANS

Sec.
4100. Findings.
     * * * * * * *
[4103A. Disabled veterans' outreach program.
[4104. Local veterans' employment representatives.]

           *       *       *       *       *       *       *

Sec. 4102A. Assistant Secretary of Labor for Veterans' Employment and 
                    Training; program functions; Regional 
                    Administrators

  (a) * * *
  (b) Program Functions.--The Secretary shall carry out the 
following functions:
          (1) * * *

           *       *       *       *       *       *       *

          [(5) Subject to subsection (c), make available for 
        use in each State by grant or contract such funds as 
        may be necessary to support--
                  [(A) disabled veterans' outreach program 
                specialists appointed under section 4103A(a)(1) 
                of this title,
                  [(B) local veterans' employment 
                representatives assigned under section 4104(b) 
                of this title, and
                  [(C) the reasonable expenses of such 
                specialists and representatives described in 
                subparagraphs (A) and (B), respectively, for 
                training, travel, supplies, and other business 
                expenses, including travel expenses and per 
                diem for attendance at the National Veterans' 
                Employment and Training Services Institute 
                established under section 4109 of this title.
          [(6) Monitor and supervise on a continuing basis the 
        distribution and use of funds provided for use in the 
        States under paragraph (5).
          [(7) Establish, and update as appropriate, a 
        comprehensive performance accountability system (as 
        described in subsection (f)) and carry out annual 
        performance reviews of veterans employment, training, 
        and placement services provided through employment 
        service delivery systems, including through disabled 
        veterans' outreach program specialists and through 
        local veterans' employment representatives in States 
        receiving grants, contracts, or awards under this 
        chapter.]
          [(8)] (5) With advice and assistance from the 
        Advisory Committee on Veterans Employment, Training, 
        and Employer Outreach established under section 4110 of 
        this title, furnish information to employers (through 
        meetings in person with hiring executives of 
        corporations and otherwise) with respect to the 
        training and skills of veterans and disabled veterans, 
        and the advantages afforded employers by hiring 
        veterans with such training and skills, and to 
        facilitate employment of veterans and disabled veterans 
        through participation in labor exchanges (Internet-
        based and otherwise), and other means.
  [(c) Conditions for Receipt of Funds.--(1) The distribution 
and use of funds under subsection (b)(5) in order to carry out 
sections 4103A(a) and 4104(a) of this title shall be subject to 
the continuing supervision and monitoring of the Secretary and 
shall not be governed by the provisions of any other law, or 
any regulations prescribed thereunder, that are inconsistent 
with this section or section 4103A or 4104 of this title.
  [(2)(A) A State shall submit to the Secretary an application 
for a grant or contract under subsection (b)(5). The 
application shall contain the following information:
          [(i) A plan that describes the manner in which the 
        State shall furnish employment, training, and placement 
        services required under this chapter for the program 
        year, including a description of--
                  [(I) duties assigned by the State to disabled 
                veterans' outreach program specialists and 
                local veterans' employment representatives 
                consistent with the requirements of sections 
                4103A and 4104 of this title;
                  [(II) the manner in which such specialists 
                and representatives are integrated in the 
                employment service delivery systems in the 
                State; and
                  [(III) the program of performance incentive 
                awards described in section 4112 of this title 
                in the State for the program year.
          [(ii) The veteran population to be served.
          [(iii) For each employee of the State who is assigned 
        to perform the duties of a disabled veterans' outreach 
        program specialist or a local veterans' employment 
        representative under this chapter--
                  [(I) the date on which the employee is so 
                assigned; and
                  [(II) whether the employee has satisfactorily 
                completed such training by the National 
                Veterans' Employment and Training Services 
                Institute as the Secretary requires for 
                purposes of paragraph (8).
          [(iv) Such additional information as the Secretary 
        may require to make a determination with respect to 
        awarding a grant or contract to the State.
  [(B)(i) Subject to the succeeding provisions of this 
subparagraph, of the amount available under subsection (b)(5) 
for a fiscal year, the Secretary shall make available to each 
State with an application approved by the Secretary an amount 
of funding in proportion to the number of veterans seeking 
employment using such criteria as the Secretary may establish 
in regulation, including civilian labor force and unemployment 
data, for the State on an annual basis. The proportion of 
funding shall reflect the ratio of--
          [(I) the total number of veterans residing in the 
        State that are seeking employment; to
          [(II) the total number of veterans seeking employment 
        in all States.
  [(ii) The Secretary shall phase in over the three fiscal-year 
period that begins on October 1, 2003, the manner in which 
amounts are made available to States under subsection (b)(5) 
and this subsection, as amended by the Jobs for Veterans Act.
  [(iii) In carrying out this paragraph, the Secretary may 
establish minimum funding levels and hold-harmless criteria for 
States.
  [(3)(A)(i) As a condition of a grant or contract under this 
section for a program year, in the case of a State that the 
Secretary determines has an entered-employment rate for 
veterans that is deficient for the preceding program year, the 
State shall develop a corrective action plan to improve that 
rate for veterans in the State.
  [(ii) The State shall submit the corrective action plan to 
the Secretary for approval, and if approved, shall 
expeditiously implement the plan.
  [(iii) If the Secretary does not approve a corrective action 
plan submitted by the State under clause (i), the Secretary 
shall take such steps as may be necessary to implement 
corrective actions in the State to improve the entered-
employment rate for veterans in that State.
  [(B) To carry out subparagraph (A), the Secretary shall 
establish in regulations a uniform national threshold entered-
employment rate for veterans for a program year by which 
determinations of deficiency may be made under subparagraph 
(A).
  [(C) In making a determination with respect to a deficiency 
under subparagraph (A), the Secretary shall take into account 
the applicable annual unemployment data for the State and 
consider other factors, such as prevailing economic conditions, 
that affect performance of individuals providing employment, 
training, and placement services in the State.
  [(4) In determining the terms and conditions of a grant or 
contract under which funds are made available to a State in 
order to carry out section 4103A or 4104 of this title, the 
Secretary shall take into account--
          [(A) the results of reviews, carried out pursuant to 
        subsection (b)(7), of the performance of the 
        employment, training, and placement service delivery 
        system in the State, and
          [(B) the monitoring carried out under this section.
  [(5) Each grant or contract by which funds are made available 
to a State shall contain a provision requiring the recipient of 
the funds--
          [(A) to comply with the provisions of this chapter; 
        and
          [(B) on an annual basis, to notify the Secretary of, 
        and provide supporting rationale for, each nonveteran 
        who is employed as a disabled veterans' outreach 
        program specialist and local veterans' employment 
        representative for a period in excess of 6 months.
  [(6) Each State shall coordinate employment, training, and 
placement services furnished to veterans and eligible persons 
under this chapter with such services furnished with respect to 
such veterans and persons under the Workforce Investment Act of 
1998 and the Wagner-Peyser Act.
  [(7) Of the amount of a grant or contract under which funds 
are made available to a State in order to carry out section 
4103A or 4104 of this title for any program year, one percent 
shall be for the purposes of making cash awards under the 
program of performance incentive awards described in section 
4112 of this title in the State.
  [(8)(A) As a condition of a grant or contract under which 
funds are made available to a State in order to carry out 
section 4103A or 4104 of this title, the Secretary shall 
require the State to require each employee hired by the State 
who is assigned to perform the duties of a disabled veterans' 
outreach program specialist or a local veterans' employment 
representative under this chapter to satisfactorily complete 
training provided by the National Veterans' Employment and 
Training Services Institute during the 18-month period that 
begins on the date on which the employee is so assigned.
  [(B) For any employee described in subparagraph (A) who does 
not complete such training during such period, the Secretary 
may reduce by an appropriate amount the amount made available 
to the State employing that employee.
  [(C) The Secretary may establish such reasonable exceptions 
to the completion of training otherwise required under 
subparagraph (A) as the Secretary considers appropriate.]
  [(d)] (c) Participation in Other Federally Funded Job 
Training Programs.--The Assistant Secretary of Labor for 
Veterans' Employment and Training shall promote and monitor 
participation of qualified veterans and eligible persons in 
employment and training opportunities under title I of the 
Workforce Investment Act of 1998 and other federally funded 
employment and training programs.
  [(e)] (d) Regional Administrators.--(1) The Secretary shall 
assign to each region for which the Secretary operates a 
regional office a representative of the Veterans' Employment 
and Training Service to serve as the Regional Administrator for 
Veterans' Employment and Training in such region.

           *       *       *       *       *       *       *

  [(f)] (e) Establishment of Performance Standards and Outcomes 
Measures.--(1) The Assistant Secretary of Labor for Veterans' 
Employment and Training shall establish and implement a 
comprehensive performance accountability system to measure the 
performance of employment service delivery systems[, including 
disabled veterans' outreach program specialists and local 
veterans' employment representatives providing employment, 
training, and placement services under this chapter in a State] 
to provide accountability of that State to the Secretary [for 
purposes of subsection (c)].

           *       *       *       *       *       *       *

  [(g)] (f) Authority to Provide Technical Assistance to 
States.--The Secretary may provide such technical assistance as 
the Secretary determines appropriate to any State that the 
Secretary determines has, or may have, an entered-employment 
rate in the State that is deficient, as determined under 
subsection (c)(3) with respect to a program year, including 
assistance in the development of a corrective action plan under 
that subsection.
  [(h) Consolidation of Disabled Veterans' Outreach Program 
Specialists and Veterans' Employment Representatives.--The 
Secretary may allow the Governor of a State receiving funds 
under subsection (b)(5) to support specialists and 
representatives as described in such subsection to consolidate 
the functions of such specialists and representatives if--
          [(1) the Governor determines, and the Secretary 
        concurs, that such consolidation--
                  [(A) promotes a more efficient administration 
                of services to veterans with a particular 
                emphasis on services to disabled veterans; and
                  [(B) does not hinder the provision of 
                services to veterans and employers; and
          [(2) the Governor submits to the Secretary a proposal 
        therefor at such time, in such manner, and containing 
        such information as the Secretary may require.]

           *       *       *       *       *       *       *

[Sec. 4103A. Disabled veterans' outreach program

  [(a) Requirement for Employment by States of a Sufficient 
Number of Specialists.--(1) Subject to approval by the 
Secretary, a State shall employ such full- or part-time 
disabled veterans' outreach program specialists as the State 
determines appropriate and efficient to carry out intensive 
services and facilitate placements under this chapter to meet 
the employment needs of eligible veterans with the following 
priority in the provision of services:
          [(A) Special disabled veterans.
          [(B) Other disabled veterans.
          [(C) Other eligible veterans in accordance with 
        priorities determined by the Secretary taking into 
        account applicable rates of unemployment and the 
        employment emphases set forth in chapter 42 of this 
        title.
  [(2) In the provision of services in accordance with this 
subsection, maximum emphasis in meeting the employment needs of 
veterans shall be placed on assisting economically or 
educationally disadvantaged veterans.
  [(3) In facilitating placement of a veteran under this 
program, a disabled veterans' outreach program specialist shall 
help to identify job opportunities that are appropriate for the 
veteran's employment goals and assist that veteran in 
developing a cover letter and resume that are targeted for 
those particular jobs.
  [(b) Requirement for Qualified Veterans.--A State shall, to 
the maximum extent practicable, employ qualified veterans to 
carry out the services referred to in subsection (a). 
Preference shall be given in the appointment of such 
specialists to qualified disabled veterans.
  [(c) Part-Time Employees.--A part-time disabled veterans' 
outreach program specialist shall perform the functions of a 
disabled veterans' outreach program specialist under this 
section on a half-time basis.
  [(d) Additional Requirement for Full-time Employees.--(1) A 
full-time disabled veterans' outreach program specialist shall 
perform only duties related to meeting the employment needs of 
eligible veterans, as described in subsection (a), and shall 
not perform other non-veteran-related duties that detract from 
the specialist's ability to perform the specialist's duties 
related to meeting the employment needs of eligible veterans.
  [(2) The Secretary shall conduct regular audits to ensure 
compliance with paragraph (1). If, on the basis of such an 
audit, the Secretary determines that a State is not in 
compliance with paragraph (1), the Secretary may reduce the 
amount of a grant made to the State under section 4102A(b)(5) 
of this title.

[Sec. 4104. Local veterans' employment representatives

  [(a) Requirement for Employment by States of a Sufficient 
Number of Representatives.--Subject to approval by the 
Secretary, a State shall employ such full- and part-time local 
veterans' employment representatives as the State determines 
appropriate and efficient to carry out employment, training, 
and placement services under this chapter.
  [(b) Principal Duties.--As principal duties, local veterans' 
employment representatives shall--
          [(1) conduct outreach to employers in the area to 
        assist veterans in gaining employment, including 
        conducting seminars for employers and, in conjunction 
        with employers, conducting job search workshops and 
        establishing job search groups; and
          [(2) facilitate employment, training, and placement 
        services furnished to veterans in a State under the 
        applicable State employment service delivery systems.
  [(c) Requirement for Qualified Veterans and Eligible 
Persons.--A State shall, to the maximum extent practicable, 
employ qualified veterans or eligible persons to carry out the 
services referred to in subsection (a). Preference shall be 
accorded in the following order:
          [(1) To qualified service-connected disabled 
        veterans.
          [(2) If no veteran described in paragraph (1) is 
        available, to qualified eligible veterans.
          [(3) If no veteran described in paragraph (1) or (2) 
        is available, then to qualified eligible persons.
  [(d) Part-Time Employees.--A part-time local veterans' 
employment representative shall perform the functions of a 
local veterans' employment representative under this section on 
a half-time basis.
  [(e) Additional Requirements for Full-time Employees.--(1) A 
full-time local veterans' employment representative shall 
perform only duties related to the employment, training, and 
placement services under this chapter, and shall not perform 
other non-veteran-related duties that detract from the 
representative's ability to perform the representative's duties 
related to employment, training, and placement services under 
this chapter.
  [(2) The Secretary shall conduct regular audits to ensure 
compliance with paragraph (1). If, on the basis of such an 
audit, the Secretary determines that a State is not in 
compliance with paragraph (1), the Secretary may reduce the 
amount of a grant made to the State under section 4102A(b)(5) 
of this title.
  [(f) Reporting.--Each local veterans' employment 
representative shall be administratively responsible to the 
manager of the employment service delivery system and shall 
provide reports, not less frequently than quarterly, to the 
manager of such office and to the Director for Veterans' 
Employment and Training for the State regarding compliance with 
Federal law and regulations with respect to special services 
and priorities for eligible veterans and eligible persons.]

           *       *       *       *       *       *       *

Sec. 4109. National Veterans' Employment and Training Services 
                    Institute

  (a) In order to provide for such training as the Secretary 
considers necessary and appropriate for the efficient and 
effective provision of employment, job-training, intensive 
services, placement, job-search, and related services to 
veterans, the Secretary shall establish and make available such 
funds as may be necessary to operate a National Veterans' 
Employment and Training Services Institute for the training of 
[disabled veterans' outreach program specialists, local 
veterans' employment representatives] veteran employment 
specialists appointed under section 134(f) of the Workforce 
Investment Act, Directors for Veterans' Employment and 
Training, and Assistant Directors for Veterans' Employment and 
Training, Regional Administrators for Veterans' Employment and 
Training, and such other personnel involved in the provision of 
employment, job-training, intensive services, placement, or 
related services to veterans as the Secretary considers 
appropriate, including travel expenses and per diem for 
attendance at the Institute.

           *       *       *       *       *       *       *

  (d)(1) The Secretary shall require that each disabled 
veterans' outreach program specialist and local veterans' 
employment representative who receives training provided by the 
Institute, or its successor, is given a final examination to 
evaluate the specialist's or representative's performance in 
receiving such training.

           *       *       *       *       *       *       *

Sec. 4112. Performance incentive awards for quality employment, 
                    training, and placement services

  (a) * * *

           *       *       *       *       *       *       *

  (d) Eligible Employee Defined.--In this section, the term 
``eligible employee'' means any of the following:
          (1) A [disabled veterans' outreach program 
        specialist] veteran employment specialist appointed 
        under section 134(f) of the Workforce Investment Act.
          [(2) A local veterans' employment representative.]
          [(3)] (2) An individual providing employment, 
        training, and placement services to veterans under the 
        Workforce Investment Act of 1998 or through an 
        employment service delivery system (as defined in 
        section 4101(7) of this title).

Sec. 4113. Transition Assistance Program personnel

  (a) Requirement to Contract.--In accordance with [section 
1144 of title 10] section 175 of the Workforce Investment Act 
of 1998, the Secretary shall enter into a contract with an 
appropriate private entity or entities to provide the functions 
described in subsection (b) at all locations where the program 
described in such section is carried out.
  (b) Functions.--Contractors under subsection (a) shall 
provide to members of the Armed Forces who are being separated 
from active duty (and the spouses of such members) the services 
described in [section 1144(a)(1) of title 10] section 175(a) of 
the Workforce Investment Act of 1998, including the following:
          (1) * * *

           *       *       *       *       *       *       *

                              ----------                              

                      TITLE 10, UNITED STATES CODE

SUBTITLE A--GENERAL MILITARY LAW

           *       *       *       *       *       *       *

PART II--PERSONNEL

           *       *       *       *       *       *       *

   CHAPTER 58--BENEFITS AND SERVICES FOR MEMBERS BEING SEPARATED OR 
RECENTLY SEPARATED

           *       *       *       *       *       *       *

[Sec. 1144. Employment assistance, job training assistance, and other 
                    transitional services: Department of Labor

  [(a) In General.--(1) The Secretary of Labor, in conjunction 
with the Secretary of Defense, the Secretary of Homeland 
Security, and the Secretary of Veterans Affairs, shall 
establish and maintain a program to furnish counseling, 
assistance in identifying employment and training 
opportunities, help in obtaining such employment and training, 
and other related information and services to members of the 
armed forces under the jurisdiction of the Secretary concerned 
who are being separated from active duty and the spouses of 
such members. Such services shall be provided to a member 
within the time periods provided under paragraph (3) of section 
1142(a) of this title, except that the Secretary concerned 
shall not provide preseparation counseling to a member 
described in paragraph (4)(A) of such section.
  [(2) The Secretary of Defense, the Secretary of Homeland 
Security, and the Secretary of Veterans Affairs shall cooperate 
with the Secretary of Labor in establishing and maintaining the 
program under this section.
  [(3) The Secretaries referred to in paragraph (1) shall enter 
into a detailed agreement to carry out this section.
  [(b) Elements of Program.--In establishing and carrying out a 
program under this section, the Secretary of Labor shall do the 
following:
          [(1) Provide information concerning employment and 
        training assistance, including (A) labor market 
        information, (B) civilian work place requirements and 
        employment opportunities, (C) instruction in resume 
        preparation, and (D) job analysis techniques, job 
        search techniques, and job interview techniques.
          [(2) In providing information under paragraph (1), 
        use experience obtained from implementation of the 
        pilot program established under section 408 of Public 
        Law 101-237.
          [(3) Provide information concerning Federal, State, 
        and local programs, and programs of military and 
        veterans' service organizations, that may be of 
        assistance to such members after separation from the 
        armed forces, including, as appropriate, the 
        information and services to be provided under section 
        1142 of this title.
          [(4) Inform such members that the Department of 
        Defense and the Department of Homeland Security are 
        required under section 1143(a) of this title to provide 
        proper certification or verification of job skills and 
        experience acquired while on active duty that may have 
        application to employment in the civilian sector for 
        use in seeking civilian employment and in obtaining job 
        search skills.
          [(5) Provide information and other assistance to such 
        members in their efforts to obtain loans and grants 
        from the Small Business Administration and other 
        Federal, State, and local agencies.
          [(6) Provide information about the geographic areas 
        in which such members will relocate after separation 
        from the armed forces, including, to the degree 
        possible, information about employment opportunities, 
        the labor market, and the cost of living in those areas 
        (including, to the extent practicable, the cost and 
        availability of housing, child care, education, and 
        medical and dental care).
          [(7) Work with military and veterans' service 
        organizations and other appropriate organizations in 
        promoting and publicizing job fairs for such members.
          [(8) Provide information regarding the public and 
        community service jobs program carried out under 
        section 1143a of this title.
  [(c) Participation.--The Secretary of Defense and the 
Secretary of Homeland Security shall encourage and otherwise 
promote maximum participation by members of the armed forces 
eligible for assistance under the program carried out under 
this section.
  [(d) Use of Personnel and Organizations.--In carrying out the 
program established under this section, the Secretaries may--
          [(1) provide, as the case may be, for the use of 
        disabled veterans outreach program specialists, local 
        veterans' employment representatives, and other 
        employment service personnel funded by the Department 
        of Labor to the extent that the Secretary of Labor 
        determines that such use will not significantly 
        interfere with the provision of services or other 
        benefits to eligible veterans and other eligible 
        recipients of such services or benefits;
          [(2) use military and civilian personnel of the 
        Department of Defense and the Department of Homeland 
        Security;
          [(3) use personnel of the Veterans Benefits 
        Administration of the Department of Veterans Affairs 
        and other appropriate personnel of that Department;
          [(4) use representatives of military and veterans' 
        service organizations;
          [(5) enter into contracts with public entities;
          [(6) enter into contracts with private entities, 
        particularly with qualified private entities that have 
        experience with instructing members of the armed forces 
        eligible for assistance under the program carried out 
        under this section on--
                  [(A) private sector culture, resume writing, 
                career networking, and training on job search 
                technologies;
                  [(B) academic readiness and educational 
                opportunities; or
                  [(C) other relevant topics; and
          [(7) take other necessary action to develop and 
        furnish the information and services to be provided 
        under this section.
  [(e) Participation in Apprenticeship Programs.--As part of 
the program carried out under this section, the Secretary of 
Defense and the Secretary of Homeland Security may permit a 
member of the armed forces eligible for assistance under the 
program to participate in an apprenticeship program registered 
under the Act of August 16, 1937 (commonly known as the 
``National Apprenticeship Act''; 50 Stat. 664, chapter 663; 29 
U.S.C. 50 et seq.), or a pre-apprenticeship program that 
provides credit toward a program registered under such Act, 
that provides members of the armed forces with the education, 
training, and services necessary to transition to meaningful 
employment that leads to economic self-sufficiency.]

           *       *       *       *       *       *       *

                              ----------                              

 COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT 
                                OF 1980

           *       *       *       *       *       *       *
TITLE I--HAZARDOUS SUBSTANCES RELEASES, LIABILITY, COMPENSATION

           *       *       *       *       *       *       *

                          RESPONSE AUTHORITIES

  Sec. 104. (a) * * *

           *       *       *       *       *       *       *

  (k) Brownfields Revitalization Funding.--
          (1) * * *

           *       *       *       *       *       *       *

          (6) Implementation of brownfields programs.--
                  (A) Establishment of program.--The 
                Administrator may provide, or fund eligible 
                entities or nonprofit organizations to 
                provide[, training,] research, and technical 
                assistance to individuals and organizations, as 
                appropriate, to facilitate the inventory of 
                brownfield sites, site assessments, remediation 
                of brownfield sites, community involvement, or 
                site preparation.

           *       *       *       *       *       *       *

                              ----------                              

                     FOOD AND NUTRITION ACT OF 2008

           *       *       *       *       *       *       *
                              DEFINITIONS

  Sec. 3. As used in this Act, the term:
  (a) * * *

           *       *       *       *       *       *       *

  (t) ``State agency'' means (1) the agency of State 
government, including the local offices thereof, which has the 
responsibility for the administration of the federally aided 
public assistance programs within such State, and in those 
States where such assistance programs are operated on a 
decentralized basis, the term shall include the counterpart 
local agencies administering such programs, [and (2)] (2) the 
tribal organization of an Indian tribe determined by the 
Secretary to be capable of effectively administering a food 
distribution program under section 4(b) of this Act or a 
supplemental nutrition assistance program under section 11(d) 
of this Act, and (3) when referencing employment and training 
activities under section 6(d)(4), a State board as defined in 
section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 
2801).

           *       *       *       *       *       *       *

                          ELIGIBLE HOUSEHOLDS

  Sec. 5. (a) * * *

           *       *       *       *       *       *       *

  (d) Exclusions From Income.--Household income for purposes of 
the supplemental nutrition assistance program shall include all 
income from whatever source excluding only--
          (1) * * *

           *       *       *       *       *       *       *

          (14) any payment made to the household under [section 
        6(d)(4)(I)] section 6(d)(4)(C) for work related 
        expenses or for dependent care;

           *       *       *       *       *       *       *

  (g) Allowable Financial Resources.--
          (1) * * *

           *       *       *       *       *       *       *

  (3) The Secretary shall exclude from financial resources the 
value of a burial plot for each member of a household and 
nonliquid resources necessary to allow the household to carry 
out a plan for self-sufficiency approved by the State agency 
that [constitutes adequate participation in an employment and 
training program under section 6(d)] allows the individual to 
participate in employment and training activities under section 
6(d)(4). The Secretary shall also exclude from financial 
resources any earned income tax credits received by any member 
of the household for a period of 12 months from receipt if such 
member was participating in the supplemental nutrition 
assistance program at the time the credits were received and 
participated in such program continuously during the 12-month 
period.

           *       *       *       *       *       *       *

                     ELIGIBILITY DISQUALIFICATIONS

  Sec. 6. (a) * * *

           *       *       *       *       *       *       *

  (d) Conditions of Participation.--
          (1) * * *

           *       *       *       *       *       *       *

          [(4) Employment and training.--
                  [(A) In general.--
                          [(i) Implementation.--Each State 
                        agency shall implement an employment 
                        and training program designed by the 
                        State agency and approved by the 
                        Secretary for the purpose of assisting 
                        members of households participating in 
                        the supplemental nutrition assistance 
                        program in gaining skills, training, 
                        work, or experience that will increase 
                        their ability to obtain regular 
                        employment.
                          [(ii) Statewide workforce development 
                        system.--Each component of an 
                        employment and training program carried 
                        out under this paragraph shall be 
                        delivered through a statewide workforce 
                        development system, unless the 
                        component is not available locally 
                        through such a system.
  [(B) For purposes of this Act, an ``employment and training 
program'' means a program that contains one or more of the 
following components, except that the State agency shall retain 
the option to apply employment requirements prescribed under 
this subparagraph to a program applicant at the time of 
application:
          [(i) Job search programs.
          [(ii) Job search training programs that include, to 
        the extent determined appropriate by the State agency, 
        reasonable job search training and support activities 
        that may consist of jobs skills assessments, job 
        finding clubs, training in techniques for 
        employability, job placement services, or other direct 
        training or support activities, including educational 
        programs, determined by the State agency to expand the 
        job search abilities or employability of those subject 
        to the program.
          [(iii) Workfare programs operated under section 20.
          [(iv) Programs designed to improve the employability 
        of household members through actual work experience or 
        training, or both, and to enable individuals employed 
        or trained under such programs to move promptly into 
        regular public or private employment. An employment or 
        training experience program established under this 
        clause shall--
                  [(I) not provide any work that has the effect 
                of replacing the employment of an individual 
                not participating in the employment or training 
                experience program; and
                  [(II) provide the same benefits and working 
                conditions that are provided at the job site to 
                employees performing comparable work for 
                comparable hours.
          [(v) Educational programs or activities to improve 
        basic skills and literacy, or otherwise improve 
        employability, including educational programs 
        determined by the State agency to expand the job search 
        abilities or employability of those subject to the 
        program under this paragraph.
          [(vi) Programs designed to increase the self-
        sufficiency of recipients through self-employment, 
        including programs that provide instruction for self-
        employment ventures.
          [(vii) Programs intended to ensure job retention by 
        providing job retention services, if the job retention 
        services are provided for a period of not more than 90 
        days after an individual who received employment and 
        training services under this paragraph gains 
        employment.
          [(viii) As approved by the Secretary or the State 
        under regulations issued by the Secretary, other 
        employment, educational and training programs, 
        projects, and experiments, such as a supported work 
        program, aimed at accomplishing the purpose of the 
        employment and training program.
  [(C) The State agency may provide that participation in an 
employment and training program may supplement or supplant 
other employment-related requirements imposed on those subject 
to the program.
  [(D)(i) Each State agency may exempt from any requirement for 
participation in any program under this paragraph categories of 
household members.
  [(ii) Each State agency may exempt from any requirement for 
participation individual household members not included in any 
category designated as exempt under clause (i).
  [(iii) Any exemption of a category or individual under this 
subparagraph shall be periodically evaluated to determine 
whether the exemption continues to be valid.
  [(E) Each State agency shall establish requirements for 
participation by individuals not exempt under subparagraph (D) 
in one or more employment and training programs under this 
paragraph, including the extent to which any individual is 
required to participate. Such requirements may vary among 
participants.
  [(F)(i) The total hours of work in an employment and training 
program carried out under this paragraph required of members of 
a household, together with the hours of work of such members in 
any program carried out under section 20, in any month 
collectively may not exceed a number of hours equal to the 
household's allotment for such month divided by the higher of 
the applicable State minimum wage or Federal minimum hourly 
rate under the Fair Labor Standards Act of 1938.
  [(ii) The total hours of participation in such program 
required of any member of a household, individually, in any 
month, together with any hours worked in another program 
carried out under section 20 and any hours worked for 
compensation (in cash or in kind) in any other capacity, shall 
not exceed one hundred and twenty hours per month.
          [(iii) Any individual voluntarily electing to 
        participate in a program under this paragraph shall not 
        be subject to the limitations described in clauses (i) 
        and (ii).
  [(G) The State agency may operate any program component under 
this paragraph in which individuals elect to participate.
  [(H) Federal funds made available to a State agency for 
purposes of the component authorized under subparagraph (B)(v) 
shall not be used to supplant non-Federal funds used for 
existing services and activities that promote the purposes of 
this component.
  [(I)(i) The State agency shall provide payments or 
reimbursements to participants in programs carried out under 
this paragraph, including individuals participating under 
subparagraph (G), for--
          [(I) the actual costs of transportation and other 
        actual costs (other than dependent care costs), that 
        are reasonably necessary and directly related to 
        participation in the program; and
          [(II) the actual costs of such dependent care 
        expenses that are determined by the State agency to be 
        necessary for the participation of an individual in the 
        program (other than an individual who is the caretaker 
        relative of a dependent in a family receiving benefits 
        under part A of title IV of the Social Security Act (42 
        U.S.C. 601 et seq.) in a local area where an 
        employment, training, or education program under title 
        IV of such Act is in operation), except that no such 
        payment or reimbursement shall exceed the applicable 
        local market rate. Individuals subject to the program 
        under this paragraph may not be required to participate 
        if dependent costs exceed the limit established by the 
        State agency under this subclause or other actual costs 
        exceed any limit established under subclause (I).
  [(ii) In lieu of providing reimbursements or payments for 
dependent care expenses under clause (i), a State agency may, 
at its option, arrange for dependent care through providers by 
the use of purchase of service contracts or vouchers or by 
providing vouchers to the household.
  [(iii) The value of any dependent care services provided for 
or arranged under clause (ii), or any amount received as a 
payment or reimbursement under clause (i), shall--
          [(I) not be treated as income for the purposes of any 
        other Federal or federally assisted program that bases 
        eligibility for, or the amount of benefits on, need; 
        and
          [(II) not be claimed as an employment-related expense 
        for the purposes of the credit provided under section 
        21 of the Internal Revenue Code of 1986.
  [(J) The Secretary shall promulgate guidelines that (i) 
enable State agencies, to the maximum extent practicable, to 
design and operate an employment and training program that is 
compatible and consistent with similar programs operated within 
the State, and (ii) ensure, to the maximum extent practicable, 
that employment and training programs are provided for Indians 
on reservations.
                  [(K) Limitation on funding.--Notwithstanding 
                any other provision of this paragraph, the 
                amount of funds a State agency uses to carry 
                out this paragraph (including funds used to 
                carry out subparagraph (I)) for participants 
                who are receiving benefits under a State 
                program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.) 
                shall not exceed the amount of funds the State 
                agency used in fiscal year 1995 to carry out 
                this paragraph for participants who were 
                receiving benefits in fiscal year 1995 under a 
                State program funded under part A of title IV 
                of the Act (42 U.S.C. 601 et seq.).
  [(L) The Secretary shall ensure that State agencies comply 
with the requirements of this paragraph and section 11(e)(19).
  [(M) The facilities of the State public employment offices 
and other State agencies and providers carrying out activities 
under title I of the Workforce Investment Act of 1998 may be 
used to find employment and training opportunities for 
household members under the programs under this paragraph.]
          (4) Employment and training.--
                  (A) Implementation.--Each State agency shall 
                provide employment and training services 
                authorized under section 134 of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2864) to 
                eligible members of households participating in 
                the supplemental nutrition assistance program 
                in gaining skills, training, work, or 
                experience that will increase their ability to 
                obtain regular employment.
                  (B) Statewide workforce development system.--
                Consistent with subparagraph (A), employment 
                and training services shall be provided through 
                the statewide workforce development system, 
                including the One-Stop delivery system, 
                authorized by the Workforce Investment Act of 
                1998 (29 U.S.C. 2801 et seq.).
                  (C) Reimbursements.--
                          (i) Actual costs.--The State agency 
                        shall provide payments or reimbursement 
                        to participants served under this 
                        paragraph for--
                                  (I) the actual costs of 
                                transportation and other actual 
                                costs (other than dependent 
                                care costs) that are reasonably 
                                necessary and directly related 
                                to the individual participating 
                                in employment and training 
                                activities; and
                                  (II) the actual costs of such 
                                dependent care expenses that 
                                are determined by the State 
                                agency to be necessary for the 
                                individual to participate in 
                                employment and training 
                                activities (other than an 
                                individual who is the caretaker 
                                relative of a dependent in a 
                                family receiving benefits under 
                                part A of title IV of the 
                                Social Security Act (42 U.S.C. 
                                601 et seq.) in a local area 
                                where an employment, training, 
                                or education program under 
                                title IV of such Act is in 
                                operation), except that no such 
                                payment or reimbursement shall 
                                exceed the applicable local 
                                market rate.
                          (ii) Service contracts and 
                        vouchers.--In lieu of providing 
                        reimbursements or payments for 
                        dependent care expenses under clause 
                        (i), a State agency may, at its option, 
                        arrange for dependent care through 
                        providers by the use of purchase of 
                        service contracts or vouchers or by 
                        providing vouchers to the household.
                          (iii) Value of reimbursements.--The 
                        value of any dependent care services 
                        provided for or arranged under clause 
                        (ii), or any amount received as a 
                        payment or reimbursement under clause 
                        (i), shall--
                                  (I) not be treated as income 
                                for the purposes of any other 
                                Federal or federally assisted 
                                program that bases eligibility 
                                for, or the amount of benefits 
                                on, need; and
                                  (II) not be claimed as an 
                                employment-related expense for 
                                the purposes of the credit 
                                provided under section 21 of 
                                the Internal Revenue Code of 
                                1986 (26 U.S.C. 21).

           *       *       *       *       *       *       *

SEC. 11. ADMINISTRATION.

  (a) * * *

           *       *       *       *       *       *       *

  (e) The State plan of operation required under subsection (d) 
of this section shall provide, among such other provisions as 
may be required by regulation--
          (1) * * *

           *       *       *       *       *       *       *

          [(19) the plans of the State agency for carrying out 
        employment and training programs under section 6(d)(4), 
        including the nature and extent of such programs, the 
        geographic areas and households to be covered under 
        such program, and the basis, including any cost 
        information, for exemptions of categories and 
        individuals and for the choice of employment and 
        training program components reflected in the plans;]
          (19) the plans of the State agency for providing 
        employment and training services under section 6(d)(4);

           *       *       *       *       *       *       *

            ADMINISTRATIVE COST-SHARING AND QUALITY CONTROL

  Sec. 16. (a) * * *

           *       *       *       *       *       *       *

  (h) Funding of Employment and Training Programs.--
          (1) In general.--
                  (A) Amounts.--To [carry out employment and 
                training programs] provide employment and 
                training services to eligible households under 
                section 6(d)(4), the Secretary shall reserve 
                for allocation to State agencies, to remain 
                available for 15 months, from funds made 
                available for each fiscal year under section 
                18(a)(1), $90,000,000 for each fiscal year.

           *       *       *       *       *       *       *

                  (D) Minimum allocation.--Notwithstanding 
                subparagraph (B), the Secretary shall ensure 
                that each State agency [operating an employment 
                and training program] providing employment and 
                training services consistent with section 
                6(d)(4) shall receive not less than $50,000 for 
                each fiscal year.

           *       *       *       *       *       *       *

  (3) The Secretary shall also reimburse each State agency in 
an amount equal to 50 per centum of the total amount of 
payments made or costs incurred by the State agency in 
connection with transportation costs and other expenses 
reasonably necessary and directly [related to participation in 
an employment and training program] the individual 
participating in employment and training activities under 
section 6(d)(4), except that the amount of the reimbursement 
for dependent care expenses shall not exceed an amount equal to 
the payment made under section 6(d)(4)(I)(i)(II) but not more 
than the applicable local market rate, and such reimbursement 
shall not be made out of funds allocated under paragraph (1).
  (4) Funds provided to a State agency under this subsection 
may be used only [for operating an employment and training 
program] to provide employment and training services under 
section 6(d)(4), and may not be used for carrying out other 
provisions of this Act.
  [(5) The Secretary shall monitor the employment and training 
programs carried out by State agencies under section 6(d)(4) to 
measure their effectiveness in terms of the increase in the 
numbers of household members who obtain employment and the 
numbers of such members who retain such employment as a result 
of their participation in such employment and training 
programs.]
          (5) Monitoring.--The Secretary, in conjunction with 
        the Secretary of Labor, shall monitor each State agency 
        responsible for administering employment and training 
        services under section 6(d)(4) to ensure funds are 
        being spent effectively and efficiently. Each program 
        of employment and training receiving funds under 
        section 6(d)(4) shall be subject to the requirements of 
        the performance accountability system, including having 
        to meet the state performance measures included in 
        section 136 of the Workforce Investment Act (29 U.S.C. 
        2871).

           *       *       *       *       *       *       *

                RESEARCH, DEMONSTRATION, AND EVALUATIONS

  Sec. 17. (a) * * *
  (b)(1) * * *

           *       *       *       *       *       *       *

  [(3)(A) The Secretary may conduct demonstration projects to 
test improved consistency or coordination between the 
supplemental nutrition assistance program employment and 
training program and the Job Opportunities and Basic Skills 
program under title IV of the Social Security Act (42 U.S.C. 
601 et seq.).
  [(B) Notwithstanding paragraph (1), the Secretary may, as 
part of a project authorized under this paragraph, waive 
requirements under section 6(d) to permit a State to operate an 
employment and training program for supplemental nutrition 
assistance program recipients on the same terms and conditions 
under which the State operates its Job Opportunities and Basic 
Skills program for recipients of aid to families with dependent 
children under part F of title IV of the Social Security Act 
(42 U.S.C. 681 et seq.). Any work experience program conducted 
as part of the project shall be conducted in conformity with 
section 482(f) of such Act (42 U.S.C. 682(f)).
  [(C) A State seeking such a waiver shall provide assurances 
that the resulting employment and training program shall meet 
the requirements of subsections (a)(19) and (g) of section 402 
of such Act (42 U.S.C. 602) (but not including the provision of 
transitional benefits under clauses (ii) through (vii) of 
section 402(g)(1)(A)) and sections 481 through 487 of such Act 
(42 U.S.C. 681 through 687). Each reference to ``aid to 
families with dependent children'' in such sections shall be 
deemed to be a reference to supplemental nutrition assistance 
program benefits for purposes of the demonstration project.
  [(D) Notwithstanding the other provisions of this paragraph, 
participation in an employment and training activity in which 
supplemental nutrition assistance program benefits are 
converted to cash shall occur only with the consent of the 
participant.
  [(E) For the purposes of any project conducted under this 
paragraph, the provisions of this Act affecting the rights of 
recipients may be waived to the extent necessary to conform to 
the provisions of section 402, and sections 481 through 487, of 
the Social Security Act.
  [(F) At least 60 days prior to granting final approval of a 
project under this paragraph, the Secretary shall publish the 
terms and conditions for any demonstration project conducted 
under the paragraph for public comment in the Federal Register 
and shall notify the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate.
  [(G) Waivers may be granted under this paragraph to conduct 
projects at any one time in a total of up to 60 project areas 
(or parts of project areas), as such areas are defined in 
regulations in effect on January 1, 1990.
  [(H) A waiver for a change in program rules may be granted 
under this paragraph only for a demonstration project that has 
been approved by the Secretary, that will be evaluated 
according to criteria prescribed by the Secretary, and that 
will be in operation for no more than 4 years.
  [(I) The Secretary may not grant a waiver under this 
paragraph on or after the date of enactment of this 
subparagraph. Any reference in this paragraph to a provision of 
title IV of the Social Security Act shall be deemed to be a 
reference to such provision as in effect on the day before such 
date.]

           *       *       *       *       *       *       *

  (g) In order to assess the effectiveness of the employment 
and training [programs established] activities provided to 
eligible households under section 6(d) in placing individuals 
into the work force and withdrawing such individuals from the 
supplemental nutrition assistance program, the Secretary, in 
conjunction with the Secretary of Labor, is authorized to carry 
out studies comparing the pre- and post-program labor force 
participation, wage rates, family income, level of receipt of 
supplemental nutrition assistance program and other transfer 
payments, and other relevant information, for samples of 
participants in such employment and training programs as 
compared to the appropriate control or comparison groups that 
did not participate in such programs. Such studies shall, to 
the maximum extent possible--
          (1) * * *

           *       *       *       *       *       *       *

                  MINNESOTA FAMILY INVESTMENT PROJECT

  Sec. 22. (a) * * *
  (b) Required Terms and Conditions of the Project.--The 
application submitted by the State under subsection (a) shall 
provide an assurance that the Project shall satisfy all of the 
following requirements:
          (1) * * *

           *       *       *       *       *       *       *

          (4) The Project shall include education, employment, 
        and training services [equivalent to those offered 
        under the employment and training program] described in 
        section 6(d)(4) to families similar to participating 
        families elsewhere in the State.

           *       *       *       *       *       *       *

                              ----------                              

                       REHABILITATION ACT OF 1973

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) * * *
  (b) Table of Contents.--The table of contents for this Act is 
as follows:
Sec. 1. Short title; table of contents.
     * * * * * * *

               TITLE I--VOCATIONAL REHABILITATION SERVICES

                       Part A--General Provisions

     * * * * * * *
Sec. 109A. Collaboration with industry.
     * * * * * * *

            Part B--Basic Vocational Rehabilitation Services

     * * * * * * *
Sec. 110A. Reservation for expanded transition services.
     * * * * * * *

      TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
                             DEMONSTRATIONS

     * * * * * * *
[Sec. 304. Migrant and seasonal farmworkers.]
Sec. 304. Measuring of project outcomes and performance.
[Sec. 305. Recreational programs.
[Sec. 306. Measuring of project outcomes and performance.]
     * * * * * * *

  [TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES

[Sec. 601. Short title.

                     [Part A--Projects With Industry

[Sec. 611. Projects with industry.
[Sec. 612. Authorization of appropriations.

  [Part B--Supported Employment Services for Individuals With the Most 
                        Significant Disabilities

[Sec. 621. Purpose.
[Sec. 622. Allotments.
[Sec. 623. Availability of services.
[Sec. 624. Eligibility.
[Sec. 625. State plan.
[Sec. 626. Restriction.
[Sec. 627. Savings provision.
[Sec. 628. Authorization of appropriations.]
     * * * * * * *

           *       *       *       *       *       *       *

SEC. 2. FINDINGS; PURPOSE; POLICY.

  (a) Findings.--Congress finds that--
          (1) * * *

           *       *       *       *       *       *       *

          (5) individuals with disabilities continually 
        encounter various forms of discrimination in such 
        critical areas as employment, housing, public 
        accommodations, education, transportation, 
        communication, recreation, institutionalization, health 
        services, voting, and public services; [and]
          (6) the goals of the Nation properly include the goal 
        of providing individuals with disabilities with the 
        tools necessary to--
                  (A) * * *
                  (B) achieve equality of opportunity, full 
                inclusion and integration in society, 
                employment, independent living, and economic 
                and social self-sufficiency, for such 
                individuals[.]; and
          (7) there is a substantial need to improve and expand 
        services for students with disabilities under this Act.

           *       *       *       *       *       *       *

                 REHABILITATION SERVICES ADMINISTRATION

  Sec. 3. (a) There is established in the [Office of the 
Secretary] Department of Education a Rehabilitation Services 
Administration which shall be headed by a [Commissioner] 
Director (hereinafter in this Act referred to as the 
``[Commissioner] Director'') appointed by the [President by and 
with the advice and consent of the Senate] Secretary. Except 
for titles IV and V and as otherwise specifically provided in 
this Act, such Administration shall be the principal agency[, 
and the Commissioner shall be the principal officer,] of such 
Department for carrying out this Act. The [Commissioner] 
Director shall be an individual with substantial experience in 
rehabilitation and in rehabilitation program management. In the 
performance of the functions of the office, the [Commissioner] 
Director shall be directly responsible to the Secretary or to 
the Under Secretary or an appropriate Assistant Secretary of 
such Department, as designated by the Secretary. The functions 
of the [Commissioner] Director shall not be delegated to any 
officer not directly responsible, both with respect to program 
operation and administration, to the [Commissioner] Director. 
Any reference in this Act to duties to be carried out by the 
[Commissioner] Director shall be considered to be a reference 
to duties to be carried out by the Secretary acting through the 
[Commissioner] Director. In carrying out any of the functions 
of the office under this Act, the [Commissioner] Director shall 
be guided by general policies of the National Council on 
Disability established under title IV of this Act.

           *       *       *       *       *       *       *

SEC. 7. DEFINITIONS.

  For the purposes of this Act:
          (1) * * *

           *       *       *       *       *       *       *

          (12) Establishment of a community rehabilitation 
        program.--The term ``establishment of a community 
        rehabilitation program'' includes the acquisition, 
        expansion, remodeling, or alteration of existing 
        buildings necessary to adapt them to community 
        rehabilitation program purposes or to increase their 
        effectiveness for such purposes (subject, however, to 
        such limitations as the Secretary may determine, in 
        accordance with regulations the Secretary shall 
        prescribe, in order to prevent impairment of the 
        objectives of, or duplication of, other Federal laws 
        providing Federal assistance in the construction of 
        facilities for community rehabilitation programs), and 
        may include such additional equipment and staffing as 
        the [Commissioner] Director considers appropriate.

           *       *       *       *       *       *       *

          (35)(A) The term ``student with a disability'' means 
        an individual with a disability who--
                          (i) is not younger than 16 and not 
                        older than 21;
                          (ii) has been determined to be 
                        eligible under section 102(a) for 
                        assistance under this title; and
                          (iii)(I) is eligible for, and is 
                        receiving, special education under part 
                        B of the Individuals with Disabilities 
                        Education Act (20 U.S.C. 1411 et seq.); 
                        or
                          (II) is an individual with a 
                        disability, for purposes of section 
                        504.
          (B) The term ``students with disabilities'' means 
        more than 1 student with a disability.
          [(35)] (36) Supported employment.--
                  (A) In general.--The term ``supported 
                employment'' means competitive work in 
                integrated work settings, or employment in 
                integrated work settings in which individuals 
                are working toward competitive work, consistent 
                with the strengths, resources, priorities, 
                concerns, abilities, capabilities, interests, 
                and informed choice of the individuals, for 
                individuals with the most significant 
                disabilities--
                          (i) * * *
                          (ii) who, because of the nature and 
                        severity of their disability, need 
                        intensive supported employment services 
                        for the period, and any extension, 
                        described in [paragraph (36)(C)] 
                        paragraph (37)(C) and extended services 
                        after the transition described in 
                        paragraph (13)(C) in order to perform 
                        such work.

           *       *       *       *       *       *       *

          [(36)] (37) Supported employment services.--The term 
        ``supported employment services'' means ongoing support 
        services and other appropriate services needed to 
        support and maintain an individual with a most 
        significant disability in supported employment, that--
                  (A) * * *

           *       *       *       *       *       *       *

          [(37)] (38) Transition services.--The term 
        ``transition services'' means a coordinated set of 
        activities for a student, designed within an outcome-
        oriented process, that promotes movement from school to 
        post school activities, including postsecondary 
        education, vocational training, integrated employment 
        (including supported employment), continuing and adult 
        education, adult services, independent living, or 
        community participation. The coordinated set of 
        activities shall be based upon the individual student's 
        needs, taking into account the student's preferences 
        and interests, and shall include instruction, community 
        experiences, the development of employment and other 
        post school adult living objectives, and, when 
        appropriate, acquisition of daily living skills and 
        functional vocational evaluation.
          [(38)] (39) Vocational rehabilitation services.--The 
        term ``vocational rehabilitation services'' means those 
        services identified in section 103 which are provided 
        to individuals with disabilities under this Act.
          [(39)] (40) Workforce investment activities.--The 
        term ``workforce investment activities'' means 
        workforce investment activities, as defined in section 
        101 of the Workforce Investment Act of 1998, that are 
        carried out under that Act.

           *       *       *       *       *       *       *

                       ADMINISTRATION OF THE ACT

  Sec. 12. (a) In carrying out the purposes of this Act, the 
[Commissioner] Director may--
          (1) * * *

           *       *       *       *       *       *       *

  (b)(1) In carrying out the duties under this Act, the 
[Commissioner] Director may utilize the services and facilities 
of any agency of the Federal Government and of any other public 
or nonprofit agency or organization, in accordance with 
agreements between the [Commissioner] Director and the head 
thereof, and may pay therefor, in advance or by way of 
reimbursement, as may be provided in the agreement.
  (2) In carrying out the provisions of this Act, the 
[Commissioner] Director shall appoint such task forces as may 
be necessary to collect and disseminate information in order to 
improve the ability of the [Commissioner] Director to carry out 
the provisions of this Act.
  (c) The [Commissioner] Director may promulgate such 
regulations as are considered appropriate to carry out the 
[Commissioner's] Director's duties under this Act.

           *       *       *       *       *       *       *

                                REPORTS

  Sec. 13. (a) Not later than one hundred and eighty days after 
the close of each fiscal year, the [Commissioner] Director 
shall prepare and submit to the President and to the Congress a 
full and complete report on the activities carried out under 
this Act, including the activities and staffing of the 
information clearinghouse under section 15.
  (b) The [Commissioner] Director shall collect information to 
determine whether the purposes of this Act are being met and to 
assess the performance of programs carried out under this Act. 
The [Commissioner] Director shall take whatever action is 
necessary to assure that the identity of each individual for 
which information is supplied under this section is kept 
confidential, except as otherwise required by law (including 
regulation).
  (c) In preparing the report, the [Commissioner] Director 
shall annually collect and include in the report information 
based on the information submitted by States in accordance with 
section 101(a)(10), including information on administrative 
costs as required by section 101(a)(10)(D). The [Commissioner] 
Director shall, to the maximum extent appropriate, include in 
the report all information that is required to be submitted in 
the reports described in section 136(d) of the Workforce 
Investment Act of 1998 and that pertains to the employment of 
individuals with disabilities.

                               EVALUATION

  Sec. 14. (a) For the purpose of improving program management 
and effectiveness, the Secretary, in consultation with the 
[Commissioner] Director, shall evaluate all the programs 
authorized by this Act, their general effectiveness in relation 
to their cost, their impact on related programs, and their 
structure and mechanisms for delivery of services, using 
appropriate methodology and evaluative research designs. The 
Secretary shall establish and use standards for the evaluations 
required by this subsection. Such an evaluation shall be 
conducted by a person not immediately involved in the 
administration of the program evaluated.

           *       *       *       *       *       *       *

  (f)(1) The [Commissioner] Director shall identify and 
disseminate information on exemplary practices concerning 
vocational rehabilitation.
  (2) To facilitate compliance with paragraph (1), the 
[Commissioner] Director shall conduct studies and analyses that 
identify exemplary practices concerning vocational 
rehabilitation, including studies in areas relating to 
providing informed choice in the rehabilitation process, 
promoting consumer satisfaction, promoting job placement and 
retention, providing supported employment, providing services 
to particular disability populations, financing personal 
assistance services, providing assistive technology devices and 
assistive technology services, entering into cooperative 
agreements, establishing standards and certification for 
community rehabilitation programs, converting from 
nonintegrated to integrated employment, and providing caseload 
management.

           *       *       *       *       *       *       *

                       INFORMATION CLEARINGHOUSE

  Sec. 15. (a) * * *
  (b) The [Commissioner] Director may assist the Secretary to 
develop within the Department of Education a coordinated system 
of information and data retrieval, which will have the capacity 
and responsibility to provide information regarding the 
information and data referred to in subsection (a) of this 
section to the Congress, public and private agencies and 
organizations, individuals with disabilities and their 
families, professionals in fields serving such individuals, and 
the general public.

           *       *       *       *       *       *       *

SEC. 21. TRADITIONALLY UNDERSERVED POPULATIONS.

  (a) * * *
  (b) Outreach to Minorities.--
          (1) In general.--For each fiscal year, the 
        [Commissioner]  Director of the Rehabilitation Services 
        Administration and the Director of the National 
        Institute on Disability and Rehabilitation Research 
        [(referred to in this subsection as the ``Director'')] 
        shall reserve 1 percent of the funds appropriated for 
        the fiscal year for programs authorized under titles 
        II, III, VI, and VII to carry out this subsection. [The 
        Commissioner and the Director] Both such Directors 
        shall use the reserved funds to carry out one or more 
        of the activities described in paragraph (2) through a 
        grant, contract, or cooperative agreement.
          (2) Activities.--The activities carried out by [the 
        Commissioner and the Director] both such Directors 
        shall include one or more of the following:
                  (A) * * *

           *       *       *       *       *       *       *

          (4) Report.--In each fiscal year, [the Commissioner 
        and the Director] both such Directors shall prepare and 
        submit to Congress a report that describes the 
        activities funded under this subsection for the 
        preceding fiscal year.

           *       *       *       *       *       *       *

  (c) Demonstration.--In awarding grants, or entering into 
contracts or cooperative agreements under titles I, II, III, 
VI, and VII, and section 509, [the Commissioner and the 
Director] both such Directors, in appropriate cases, shall 
require applicants to demonstrate how the applicants will 
address, in whole or in part, the needs of individuals with 
disabilities from minority backgrounds.

              TITLE I--VOCATIONAL REHABILITATION SERVICES

                       PART A--GENERAL PROVISIONS

SEC. 100. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIATIONS.

  (a) * * *
  (b) Authorization of Appropriations.--
          (1) In general.--For the purpose of making grants to 
        States under part B to assist States in meeting the 
        costs of vocational rehabilitation services provided in 
        accordance with State plans under section 101, there 
        are authorized to be appropriated [such sums as may be 
        necessary for fiscal years 1999 through 2003] 
        $3,121,712,000 for fiscal year 2013 and each of the 5 
        succeeding fiscal years, except that the amount to be 
        appropriated for a fiscal year shall not be less than 
        the amount of the appropriation under this paragraph 
        for the immediately preceding fiscal year, increased by 
        the percentage change in the Consumer Price Index 
        determined under subsection (c) for the immediately 
        preceding fiscal year.

           *       *       *       *       *       *       *

  (d) Extension.--
          (1) * * *
          (2) Construction.--
                  (A) * * *
                  (B) Acts or determinations of [commissioner] 
                director.--In any case where the [Commissioner] 
                Director is required under an applicable 
                statute to carry out certain acts or make 
                certain determinations which are necessary for 
                the continuation of the program authorized by 
                this title, if such acts or determinations are 
                required during the terminal year of such 
                program, such acts and determinations shall be 
                required during any fiscal year in which the 
                extension described in that part of paragraph 
                (1) that follows clause (ii) of paragraph 
                (1)(A) is in effect.

SEC. 101. STATE PLANS.

  (a) Plan Requirements.--
          (1) In general.--
                  (A) Submission.--To be eligible to 
                participate in programs under this title, a 
                State shall submit to the [Commissioner] 
                Director a State plan for vocational 
                rehabilitation services that meets the 
                requirements of this section, on the same date 
                that the State submits a State plan under 
                section 112 of the Workforce Investment Act of 
                1998.
                  (B) Nonduplication.--The State shall not be 
                required to submit, in the State plan for 
                vocational rehabilitation services, policies, 
                procedures, or descriptions required under this 
                title that have been previously submitted to 
                the [Commissioner] Director and that 
                demonstrate that such State meets the 
                requirements of this title, including any 
                policies, procedures, or descriptions submitted 
                under this title as in effect on the day before 
                the effective date of the Rehabilitation Act 
                Amendments of 1998.
                  (C) Duration.--The State plan shall remain in 
                effect subject to the submission of such 
                modifications as the State determines to be 
                necessary or as the [Commissioner] Director may 
                require based on a change in State policy, a 
                change in Federal law (including regulations), 
                an interpretation of this Act by a Federal 
                court or the highest court of the State, or a 
                finding by the [Commissioner] Director of State 
                noncompliance with the requirements of this 
                Act, until the State submits and receives 
                approval of a new State plan.
          (2) Designated state agency; designated state unit.--
                  (A) Designated state agency.--The State plan 
                shall designate a State agency as the sole 
                State agency to administer the plan, or to 
                supervise the administration of the plan by a 
                local agency, except that--
                          (i) * * *
                          (ii) the [Commissioner] Director, on 
                        the request of a State, may authorize 
                        the designated State agency to share 
                        funding and administrative 
                        responsibility with another agency of 
                        the State or with a local agency in 
                        order to permit the agencies to carry 
                        out a joint program to provide services 
                        to individuals with disabilities, and 
                        may waive compliance, with respect to 
                        vocational rehabilitation services 
                        furnished under the joint program, with 
                        the requirement of paragraph (4) that 
                        the plan be in effect in all political 
                        subdivisions of the State; and

           *       *       *       *       *       *       *

          (4) Statewideness.--The State plan shall provide that 
        the plan shall be in effect in all political 
        subdivisions of the State, except that--
                  (A) in the case of any activity that, in the 
                judgment of the [Commissioner] Director, is 
                likely to assist in promoting the vocational 
                rehabilitation of substantially larger numbers 
                of individuals with disabilities or groups of 
                individuals with disabilities, the 
                [Commissioner] Director may waive compliance 
                with the requirement that the plan be in effect 
                in all political subdivisions of the State to 
                the extent and for such period as may be 
                provided in accordance with regulations 
                prescribed by the [Commissioner] Director, but 
                only if the non-Federal share of the cost of 
                the vocational rehabilitation services involved 
                is met from funds made available by a local 
                agency (including funds contributed to such 
                agency by a private agency, organization, or 
                individual); and
                  (B) in a case in which earmarked funds are 
                used toward the non-Federal share and such 
                funds are earmarked for particular geographic 
                areas within the State, the earmarked funds may 
                be used in such areas if the State notifies the 
                [Commissioner] Director that the State cannot 
                provide the full non-Federal share without such 
                funds.

           *       *       *       *       *       *       *

          (6) Methods for administration.--
                  (A) In general.--The State plan shall provide 
                for such methods of administration as are found 
                by the [Commissioner] Director to be necessary 
                for the proper and efficient administration of 
                the plan.

           *       *       *       *       *       *       *

          (10) Reporting requirements.--
                  (A) In general.--The State plan shall include 
                an assurance that the designated State agency 
                will submit reports in the form and level of 
                detail and at the time required by the 
                [Commissioner] Director regarding applicants 
                for, and eligible individuals receiving, 
                services under this title.
                  (B) Annual reporting.--In specifying the 
                information to be submitted in the reports, the 
                [Commissioner] Director shall require annual 
                reporting on the eligible individuals receiving 
                the services, on those specific data elements 
                described in section 136(d)(2) of the Workforce 
                Investment Act of 1998 that are determined by 
                the Secretary to be relevant in assessing the 
                performance of designated State units in 
                carrying out the vocational rehabilitation 
                program established under this title.
                  (C) Additional data.--In specifying the 
                information required to be submitted in the 
                reports, the [Commissioner] Director shall 
                require additional data with regard to 
                applicants and eligible individuals related 
                to--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) of those applicants and 
                        eligible recipients who are individuals 
                        with significant disabilities--
                                  (I) * * *
                                  (II) the number who ended 
                                their participation in the 
                                program and who were employed 6 
                                months and 12 months after 
                                securing or regaining 
                                employment, or, in the case of 
                                individuals whose employment 
                                outcome was to retain or 
                                advance in employment, who were 
                                employed 6 months and 12 months 
                                after achieving their 
                                employment outcome, including--
                                          (aa) the number who 
                                        earned the minimum wage 
                                        rate specified in 
                                        section 6(a)(1) of the 
                                        Fair Labor Standards 
                                        Act of 1938 (29 U.S.C. 
                                        206(a)(1)) or another 
                                        wage level set by the 
                                        [Commissioner] 
                                        Director, during such 
                                        employment; and

           *       *       *       *       *       *       *

                          (iv) of those applicants and eligible 
                        recipients who are not individuals with 
                        significant disabilities--
                                  (I) * * *
                                  (II) the number who ended 
                                their participation in the 
                                program and who were employed 6 
                                months and 12 months after 
                                securing or regaining 
                                employment, or, in the case of 
                                individuals whose employment 
                                outcome was to retain or 
                                advance in employment, who were 
                                employed 6 months and 12 months 
                                after achieving their 
                                employment outcome, including--
                                          (aa) the number who 
                                        earned the minimum wage 
                                        rate specified in 
                                        section 6(a)(1) of the 
                                        Fair Labor Standards 
                                        Act of 1938 (29 U.S.C. 
                                        206(a)(1)) or another 
                                        wage level set by the 
                                        [Commissioner] 
                                        Director, during such 
                                        employment; and

           *       *       *       *       *       *       *

                  (D) Costs and results.--The [Commissioner] 
                Director shall also require that the designated 
                State agency include in the reports information 
                on--
                          (i) * * *

           *       *       *       *       *       *       *

                  (E) Additional information.--The 
                [Commissioner] Director shall require that each 
                designated State unit include in the reports 
                additional information related to the 
                applicants and eligible individuals, obtained 
                either through a complete count or sampling, 
                including--
                          (i) * * *

           *       *       *       *       *       *       *

          (11) Cooperation, collaboration, and coordination.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) Coordination with education officials.--
                The State plan shall contain plans, policies, 
                and procedures for coordination between the 
                designated State agency and education officials 
                responsible for the public education of 
                students with disabilities, that are designed 
                to facilitate the transition of the students 
                with disabilities from the receipt of 
                educational services in school to the receipt 
                of vocational rehabilitation services under 
                this title, including information on a formal 
                interagency agreement with the State 
                educational agency that, at a minimum, provides 
                for--
                          (i) consultation and technical 
                        assistance to assist educational 
                        agencies in planning for the transition 
                        of students with disabilities from 
                        school to post-school activities, 
                        including vocational rehabilitation 
                        services, which may be provided using 
                        alternative means of meeting 
                        participation (such as video 
                        conferences and conference calls);

           *       *       *       *       *       *       *

                  (G) Coordination with assistive technology 
                programs.--The State plan shall include an 
                assurance that the designated State unit and 
                the lead agency or implementing entity 
                responsible for carrying out duties under the 
                Assistive Technology Act of 1998 (29 U.S.C. 
                3001 et seq.) have developed working 
                relationships and coordinate their activities.

           *       *       *       *       *       *       *

          (15) Annual state goals and reports of progress.--
                  (A) Assessments and estimates.--The State 
                plan shall--
                          (i) include the results of a 
                        comprehensive, statewide assessment, 
                        jointly conducted by the designated 
                        State unit and the State Rehabilitation 
                        Council (if the State has such a 
                        Council) every 3 years, describing the 
                        rehabilitation needs of individuals 
                        with disabilities residing within the 
                        State, particularly the vocational 
                        rehabilitation services needs of--
                                  (I) * * *
                                  (II) individuals with 
                                disabilities who are minorities 
                                and individuals with 
                                disabilities who have been 
                                unserved or underserved by the 
                                vocational rehabilitation 
                                program carried out under this 
                                title; [and]
                                  (III) individuals with 
                                disabilities served through 
                                other components of the 
                                statewide workforce investment 
                                system (other than the 
                                vocational rehabilitation 
                                program), as identified by such 
                                individuals and personnel 
                                assisting such individuals 
                                through the components; and
                                  (IV) students with 
                                disabilities, including their 
                                need for transition services;
                          (ii) include an assessment of the 
                        transition services provided under this 
                        Act, and coordinated with transition 
                        services under the Individuals with 
                        Disabilities Education Act, as to those 
                        services meeting the needs of 
                        individuals with disabilities;
                          [(ii)] (iii) include an assessment of 
                        the need to establish, develop, or 
                        improve community rehabilitation 
                        programs within the State; and
                          [(iii)] (iv) provide that the State 
                        shall submit to the [Commissioner] 
                        Director a report containing 
                        information regarding updates to the 
                        assessments, for any year in which the 
                        State updates the assessments.
                  (B) Annual estimates.--The State plan shall 
                include, and shall provide that the State shall 
                annually submit a report to the [Commissioner] 
                Director that includes, State estimates of--
                          (i) * * *

           *       *       *       *       *       *       *

                  (C) Goals and priorities.--
                          (i) In general.--The State plan shall 
                        identify the goals and priorities of 
                        the State in carrying out the program. 
                        The goals and priorities shall be 
                        jointly developed, agreed to, and 
                        reviewed annually by the designated 
                        State unit and the State Rehabilitation 
                        Council, if the State has such a 
                        Council. Any revisions to the goals and 
                        priorities shall be jointly agreed to 
                        by the designated State unit and the 
                        State Rehabilitation Council, if the 
                        State has such a Council. The State 
                        plan shall provide that the State shall 
                        submit to the [Commissioner] Director a 
                        report containing information regarding 
                        revisions in the goals and priorities, 
                        for any year in which the State revises 
                        the goals and priorities.

           *       *       *       *       *       *       *

                  (D) Strategies.--The State plan shall contain 
                a description of the strategies the State will 
                use to address the needs identified in the 
                assessment conducted under subparagraph (A) and 
                achieve the goals and priorities identified in 
                subparagraph (C), including--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) the methods to be used to 
                        improve and expand vocational 
                        rehabilitation services for students 
                        with disabilities, including the 
                        coordination of services designed to 
                        facilitate the transition of such 
                        students from the receipt of 
                        educational services in school to the 
                        receipt of vocational rehabilitation 
                        services under this title or to 
                        postsecondary education or employment;
                          [(iii)] (iv) where necessary, the 
                        plan of the State for establishing, 
                        developing, or improving community 
                        rehabilitation programs;
                          [(iv)] (v) strategies to improve the 
                        performance of the State with respect 
                        to the evaluation standards and 
                        performance indicators established 
                        pursuant to section 106; and
                          [(v)] (vi) strategies for assisting 
                        entities carrying out other components 
                        of the statewide workforce investment 
                        system (other than the vocational 
                        rehabilitation program) in assisting 
                        individuals with disabilities.
                  (E) Evaluation and reports of progress.--The 
                State plan shall--
                          (i) include the results of an 
                        evaluation of the effectiveness of the 
                        vocational rehabilitation program, and 
                        a joint report by the designated State 
                        unit and the State Rehabilitation 
                        Council, if the State has such a 
                        Council, to the [Commissioner] Director 
                        on the progress made in improving the 
                        effectiveness from the previous year, 
                        which evaluation and report shall 
                        include--
                                  (I) * * *

           *       *       *       *       *       *       *

                          (ii) provide that the designated 
                        State unit and the State Rehabilitation 
                        Council, if the State has such a 
                        Council, shall jointly submit to the 
                        [Commissioner] Director an annual 
                        report that contains the information 
                        described in clause (i).

           *       *       *       *       *       *       *

          (17) Use of funds for construction of facilities.--
        The State plan shall provide that if, under special 
        circumstances, the State plan includes provisions for 
        the construction of facilities for community 
        rehabilitation programs--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) there shall be compliance with 
                regulations the [Commissioner] Director shall 
                prescribe designed to assure that no State will 
                reduce its efforts in providing other 
                vocational rehabilitation services (other than 
                for the establishment of facilities for 
                community rehabilitation programs) because the 
                plan includes such provisions for construction.
          (18) Innovation and expansion activities.--The State 
        plan shall--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) provide that the State shall submit to 
                the [Commissioner] Director an annual report 
                containing a description of how the reserved 
                funds were utilized during the preceding year.

           *       *       *       *       *       *       *

          (22) Supported employment state plan supplement.--The 
        State plan shall include an assurance that the State 
        has an acceptable plan for [carrying out part B of 
        title VI, including] the use of funds under [that part 
        to supplement funds made available under part B of] 
        this title to pay for the cost of services leading to 
        supported employment.
          (23) Annual updates.--The plan shall include an 
        assurance that the State will submit to the 
        [Commissioner] Director reports containing annual 
        updates of the information required under paragraph (7) 
        (relating to a comprehensive system of personnel 
        development) and any other updates of the information 
        required under this section that are requested by the 
        [Commissioner] Director, and annual reports as provided 
        in paragraphs (15) (relating to assessments, estimates, 
        goals and priorities, and reports of progress) and (18) 
        (relating to innovation and expansion), at such time 
        and in such manner as the Secretary may determine to be 
        appropriate.
          (24) Certain contracts and cooperative agreements.--
                  (A) Contracts with for-profit 
                organizations.--The State plan shall provide 
                that the designated State agency has the 
                authority to enter into contracts with for-
                profit organizations for the purpose of 
                providing, as vocational rehabilitation 
                services, on-the-job training and related 
                programs for individuals with disabilities 
                under [part A of title VI] section 109A, upon a 
                determination by such agency that such for-
                profit organizations are better qualified to 
                provide such rehabilitation services than 
                nonprofit agencies and organizations.

           *       *       *       *       *       *       *

          (25) Collaboration with industry.--The State plan 
        shall describe how the designated State agency will 
        carry out the provisions of section 109A, including--
                  (A) the criteria such agency will use to 
                award grants under such section; and
                  (B) how the activities carried out under such 
                grants will be coordinated with other services 
                provided under this title.
          (26) Services for students with disabilities.--The 
        State plan shall provide an assurance satisfactory to 
        the Secretary that the State--
                  (A) has developed and implemented strategies 
                to address the needs identified in the 
                assessment described in paragraph (15), and 
                achieve the goals and priorities identified by 
                the State, to improve and expand vocational 
                rehabilitation services for students with 
                disabilities on a statewide basis in accordance 
                with paragraph (15); and
                  (B) from funds reserved under section 110A, 
                shall carry out programs or activities designed 
                to improve and expand vocational rehabilitation 
                services for students with disabilities that--
                          (i) facilitate the transition of 
                        students with disabilities from the 
                        receipt of educational services in 
                        school, to the receipt of vocational 
                        rehabilitation services under this 
                        title, including, at a minimum, those 
                        services specified in the interagency 
                        agreement required in paragraph 
                        (11)(D);
                          (ii) improve the achievement of post-
                        school goals of students with 
                        disabilities, including improving the 
                        achievement through participation (as 
                        appropriate when career goals are 
                        discussed) in meetings regarding 
                        individualized education programs 
                        developed under section 614 of the 
                        Individuals with Disabilities Education 
                        Act (20 U.S.C. 1414);
                          (iii) provide career guidance, career 
                        exploration services, job search skills 
                        and strategies, and technical 
                        assistance to students with 
                        disabilities;
                          (iv) support the provision of 
                        training and technical assistance to 
                        State and local educational agencies 
                        and designated State agency personnel 
                        responsible for the planning and 
                        provision of services to students with 
                        disabilities; and
                          (v) support outreach activities to 
                        students with disabilities who are 
                        eligible for, and need, services under 
                        this title.
  (b) Approval; Disapproval of the State Plan.--
          (1) Approval.--The [Commissioner] Director shall 
        approve any plan that the [Commissioner] Director finds 
        fulfills the conditions specified in this section, and 
        shall disapprove any plan that does not fulfill such 
        conditions.
          (2) Disapproval.--Prior to disapproval of the State 
        plan, the [Commissioner] Director shall notify the 
        State of the intention to disapprove the plan and shall 
        afford the State reasonable notice and opportunity for 
        a hearing.

SEC. 102. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR EMPLOYMENT.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Procedures.--
          (1) * * *

           *       *       *       *       *       *       *

          (8) Information collection and report.--
                  (A) In general.--The Director of the 
                designated State unit shall collect information 
                described in subparagraph (B) and prepare and 
                submit to the [Commissioner] Director a report 
                containing such information. The [Commissioner] 
                Director shall prepare a summary of the 
                information furnished under this paragraph and 
                include the summary in the annual report 
                submitted under section 13. The [Commissioner] 
                Director shall also collect copies of the final 
                decisions of impartial hearing officers 
                conducting hearings under this subsection and 
                State officials conducting reviews under this 
                subsection.

           *       *       *       *       *       *       *

                  (C) Confidentiality.--The confidentiality of 
                records of applicants and eligible individuals 
                maintained by the designated State unit shall 
                not preclude the access of the [Commissioner] 
                Director to those records for the purposes 
                described in subparagraph (A).

           *       *       *       *       *       *       *

SEC. 103. VOCATIONAL REHABILITATION SERVICES.

  (a) Vocational Rehabilitation Services for Individuals.--
Vocational rehabilitation services provided under this title 
are any services described in an individualized plan for 
employment necessary to assist an individual with a disability 
in preparing for, securing, retaining, or regaining an 
employment outcome that is consistent with the strengths, 
resources, priorities, concerns, abilities, capabilities, 
interests, and informed choice of the individual, including--
          (1) * * *

           *       *       *       *       *       *       *

          [(15) transition services for students with 
        disabilities, that facilitate the achievement of the 
        employment outcome identified in the individualized 
        plan for employment;]
          (15) transition services for students with 
        disabilities, that facilitate the achievement of the 
        employment outcome identified in the individualized 
        plan for employment, including services described in 
        clauses (i) through (iii) of section 101(a)(26)(B);

           *       *       *       *       *       *       *

  (b) Vocational Rehabilitation Services for Groups of 
Individuals.--Vocational rehabilitation services provided for 
the benefit of groups of individuals with disabilities may also 
include the following:
          (1) * * *

           *       *       *       *       *       *       *

          [(6) Consultative and technical assistance services 
        to assist educational agencies in planning for the 
        transition of students with disabilities from school to 
        post-school activities, including employment.]
          (6)(A)(i) Consultation and technical assistance 
        services to assist State and local educational agencies 
        in planning for the transition of students with 
        disabilities from school to post-school activities, 
        including employment.
          (ii) Training and technical assistance described in 
        section 101(a)(26)(B)(iv).
          (B) Services for groups of individuals with 
        disabilities who meet the requirements of clauses (i) 
        and (iii) of section 7(35)(A), including services 
        described in clauses (i), (ii), (iii), and (v) of 
        section 101(a)(26)(B), to assist in the transition from 
        school to post-school activities.
          (7) The establishment, development, or improvement of 
        assistive technology demonstration, loan, 
        reutilization, or financing programs in coordination 
        with activities authorized under the Assistive 
        Technology Act of 1998 (29 U.S.C. 3001) to promote 
        access to assistive technology for individuals with 
        disabilities and employers.

SEC. 104. NON-FEDERAL SHARE FOR ESTABLISHMENT OF PROGRAM OR 
                    CONSTRUCTION.

  For the purpose of determining the amount of payments to 
States for carrying out part B (or to an Indian tribe under 
part C), the non-Federal share, subject to such limitations and 
conditions as may be prescribed in regulations by the 
[Commissioner] Director, shall include contributions of funds 
made by any private agency, organization, or individual to a 
State or local agency to assist in meeting the costs of 
establishment of a community rehabilitation program or 
construction, under special circumstances, of a facility for 
such a program, which would be regarded as State or local funds 
except for the condition, imposed by the contributor, limiting 
use of such funds to establishment of such a program or 
construction of such a facility.

SEC. 105. STATE REHABILITATION COUNCIL.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Functions of Council.--The Council shall, after 
consulting with the State workforce investment board--
          (1) * * *
          (2) in partnership with the designated State unit--
                  (A) * * *
                  (B) evaluate the effectiveness of the 
                vocational rehabilitation program and submit 
                reports of progress to the [Commissioner] 
                Director in accordance with section 
                101(a)(15)(E);

           *       *       *       *       *       *       *

          (5) prepare and submit an annual report to the 
        Governor and the [Commissioner] Director on the status 
        of vocational rehabilitation programs operated within 
        the State, and make the report available to the public;

           *       *       *       *       *       *       *

SEC. 106. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

  [(a) Establishment.--
          [(1) In general.--
                  [(A) Establishment of standards and 
                indicators.--The Commissioner shall, not later 
                than July 1, 1999, establish and publish 
                evaluation standards and performance indicators 
                for the vocational rehabilitation program 
                carried out under this title.
                  [(B) Review and revision.--Effective July 1, 
                1999, the Commissioner shall review and, if 
                necessary, revise the evaluation standards and 
                performance indicators every 3 years. Any 
                revisions of the standards and indicators shall 
                be developed with input from State vocational 
                rehabilitation agencies, related professional 
                and consumer organizations, recipients of 
                vocational rehabilitation services, and other 
                interested parties. Any revisions of the 
                standards and indicators shall be subject to 
                the publication, review, and comment provisions 
                of paragraph (3).
                  [(C) Bases.--Effective July 1, 1999, to the 
                maximum extent practicable, the standards and 
                indicators shall be consistent with the core 
                indicators of performance established under 
                section 136(b) of the Workforce Investment Act 
                of 1998.
          [(2) Measures.--The standards and indicators shall 
        include outcome and related measures of program 
        performance that facilitate the accomplishment of the 
        purpose and policy of this title.
          [(3) Comment.--The standards and indicators shall be 
        developed with input from State vocational 
        rehabilitation agencies, related professional and 
        consumer organizations, recipients of vocational 
        rehabilitation services, and other interested parties. 
        The Commissioner shall publish in the Federal Register 
        a notice of intent to regulate regarding the 
        development of proposed standards and indicators. 
        Proposed standards and indicators shall be published in 
        the Federal Register for review and comment. Final 
        standards and indicators shall be published in the 
        Federal Register.]
  (a) Standards and Indicators.--The performance standards and 
indicators for the vocational rehabilitation program carried 
out under this title--
          (1) shall be subject to paragraphs (2)(A) and (3) of 
        section 136(b) of the Workforce Investment Act of 1998; 
        and
          (2) may, at a State's discretion, include additional 
        indicators identified in the State plan submitted under 
        section 101.
  (b) Compliance.--
          (1) State reports.--In accordance with regulations 
        established by the Secretary, each State shall report 
        to the [Commissioner] Director after the end of each 
        fiscal year the extent to which the State is in 
        compliance with the standards and indicators.
          (2) Program improvement.--
                  (A) Plan.--If the [Commissioner] Director 
                determines that the performance of any State is 
                below established standards, the [Commissioner] 
                Director shall provide technical assistance to 
                the State, and the State and the [Commissioner] 
                Director shall jointly develop a program 
                improvement plan outlining the specific actions 
                to be taken by the State to improve program 
                performance.
                  (B) Review.--The [Commissioner] Director 
                shall--
                          [(i) review the program improvement 
                        efforts of the State on a biannual 
                        basis and, if necessary, request the 
                        State to make further revisions to the 
                        plan to improve performance; and]
                          (i) on a biannual basis, review the 
                        program improvement efforts of the 
                        State and, if the State has not 
                        improved its performance to acceptable 
                        levels, as determined by the Director, 
                        direct the State to make revisions to 
                        the plan to improve performance; and

           *       *       *       *       *       *       *

  (c) Withholding.--If the [Commissioner] Director determines 
that a State whose performance falls below the established 
standards has failed to enter into a program improvement plan, 
or is not complying substantially with the terms and conditions 
of such a program improvement plan, the [Commissioner] Director 
shall, consistent with subsections (c) and (d) of section 107, 
reduce or make no further payments to the State under this 
program, until the State has entered into an approved program 
improvement plan, or satisfies the [Commissioner] Director that 
the State is complying substantially with the terms and 
conditions of such a program improvement plan, as appropriate.
  (d) Report to Congress.--Beginning in fiscal year 1999, the 
[Commissioner] Director shall include in each annual report to 
the Congress under section 13 an analysis of program 
performance, including relative State performance, based on the 
standards and indicators.

SEC. 107. MONITORING AND REVIEW.

  (a) In General.--
          (1) Duties.--In carrying out the duties of the 
        [Commissioner] Director under this title, the 
        [Commissioner] Director shall--
                  (A) * * *

           *       *       *       *       *       *       *

          (2) Procedures for reviews.--In conducting reviews 
        under this section the [Commissioner] Director shall 
        consider, at a minimum--
                  (A) * * *

           *       *       *       *       *       *       *

          (3) Procedures for monitoring.--In conducting 
        monitoring under this section the [Commissioner] 
        Director shall conduct--
                  (A) * * *

           *       *       *       *       *       *       *

          (4) Areas of inquiry.--In conducting the review and 
        monitoring, the [Commissioner] Director shall examine--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) such other areas of inquiry as the 
                [Commissioner] Director may consider 
                appropriate.
          (5) Reports.--If the [Commissioner] Director issues a 
        report detailing the findings of an annual review or 
        onsite monitoring conducted under this section, the 
        report shall be made available to the State 
        Rehabilitation Council, if the State has such a 
        Council, for use in the development and modification of 
        the State plan described in section 101.
  (b) Technical Assistance.--The [Commissioner] Director 
shall--
          (1) * * *
          (2) provide technical assistance and establish a 
        corrective action plan for a program under this title 
        if the [Commissioner] Director finds that the program 
        fails to comply substantially with the provisions of 
        the State plan, or with evaluation standards or 
        performance indicators established under section 106, 
        in order to ensure that such failure is corrected as 
        soon as practicable.
  (c) Failure To Comply With Plan.--
          (1) Withholding payments.--Whenever the 
        [Commissioner] Director, after providing reasonable 
        notice and an opportunity for a hearing to the State 
        agency administering or supervising the administration 
        of the State plan approved under section 101, finds 
        that--
                  (A) * * *

           *       *       *       *       *       *       *

        the [Commissioner] Director shall notify such State 
        agency that no further payments will be made to the 
        State under this title (or, in the discretion of the 
        [Commissioner] Director, that such further payments 
        will be reduced, in accordance with regulations the 
        [Commissioner] Director shall prescribe, or that 
        further payments will not be made to the State only for 
        the projects under the parts of the State plan affected 
        by such failure), until the [Commissioner] Director is 
        satisfied there is no longer any such failure.
          (2) Period.--Until the [Commissioner] Director is so 
        satisfied, the [Commissioner] Director shall make no 
        further payments to such State under this title (or 
        shall reduce payments or limit payments to projects 
        under those parts of the State plan in which there is 
        no such failure).
          (3) Disbursal of withheld funds.--The [Commissioner] 
        Director may, in accordance with regulations the 
        Secretary shall prescribe, disburse any funds withheld 
        from a State under paragraph (1) to any public or 
        nonprofit private organization or agency within such 
        State or to any political subdivision of such State 
        submitting a plan meeting the requirements of section 
        101(a). The [Commissioner] Director may not make any 
        payment under this paragraph unless the entity to which 
        such payment is made has provided assurances to the 
        [Commissioner] Director that such entity will 
        contribute, for purposes of carrying out such plan, the 
        same amount as the State would have been obligated to 
        contribute if the State received such payment.
  (d) Review.--
          (1) Petition.--Any State that is dissatisfied with a 
        final determination of the [Commissioner] Director 
        under section 101(b) or subsection (c) may file a 
        petition for judicial review of such determination in 
        the United States Court of Appeals for the circuit in 
        which the State is located. Such a petition may be 
        filed only within the 30-day period beginning on the 
        date that notice of such final determination was 
        received by the State. The clerk of the court shall 
        transmit a copy of the petition to the [Commissioner] 
        Director or to any officer designated by the 
        [Commissioner] Director for that purpose. In accordance 
        with section 2112 of title 28, United States Code, the 
        [Commissioner] Director shall file with the court a 
        record of the proceeding on which the [Commissioner] 
        Director based the determination being appealed by the 
        State. Until a record is so filed, the [Commissioner] 
        Director may modify or set aside any determination made 
        under such proceedings.
          (2) Submissions and determinations.--If, in an action 
        under this subsection to review a final determination 
        of the [Commissioner] Director under section 101(b) or 
        subsection (c), the petitioner or the [Commissioner] 
        Director applies to the court for leave to have 
        additional oral submissions or written presentations 
        made respecting such determination, the court may, for 
        good cause shown, order the [Commissioner] Director to 
        provide within 30 days an additional opportunity to 
        make such submissions and presentations. Within such 
        period, the [Commissioner] Director may revise any 
        findings of fact, modify or set aside the determination 
        being reviewed, or make a new determination by reason 
        of the additional submissions and presentations, and 
        shall file such modified or new determination, and any 
        revised findings of fact, with the return of such 
        submissions and presentations. The court shall 
        thereafter review such new or modified determination.

           *       *       *       *       *       *       *

SEC. 109A. COLLABORATION WITH INDUSTRY.

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

            Part B--Basic Vocational Rehabilitation Services

                            STATE ALLOTMENTS

  Sec. 110. (a) * * *
  (b)(1) Not later than 45 days prior to the end of the fiscal 
year, the [Commissioner] Director shall determine, after 
reasonable opportunity for the submission to the [Commissioner] 
Director of comments by the State agency administering or 
supervising the program established under this title, that any 
payment of an allotment to a State under section 111(a) for any 
fiscal year will not be utilized by such State in carrying out 
the purposes of this title.
  (2) As soon as practicable but not later than the end of the 
fiscal year, the [Commissioner] Director shall make such amount 
available for carrying out the purposes of this title to one or 
more other States to the extent the [Commissioner] Director 
determines such other State will be able to use such additional 
amount during that fiscal year or the subsequent fiscal year 
for carrying out such purposes. The [Commissioner] Director 
shall make such amount available only if such other State will 
be able to make sufficient payments from non-Federal sources to 
pay for the non-Federal share of the cost of vocational 
rehabilitation services under the State plan for the fiscal 
year for which the amount was appropriated.

           *       *       *       *       *       *       *

  (c)(1) For fiscal year 1987 and for each subsequent fiscal 
year, the [Commissioner] Director shall reserve from the amount 
appropriated under section 100(b)(1) for allotment under this 
section a sum, determined under paragraph (2), to carry out the 
purposes of part C.
  [(2) The sum referred to in paragraph (1) shall be, as 
determined by the Secretary--
          [(A) not less than three-quarters of 1 percent and 
        not more than 1.5 percent of the amount referred to in 
        paragraph (1), for fiscal year 1999; and
          [(B) not less than 1 percent and not more than 1.5 
        percent of the amount referred to in paragraph (1), for 
        each of fiscal years 2000 through 2003.]
          (2) The sum referred to in paragraph (1) shall be, as 
        determined by the Secretary, not less than 1 percent 
        and not more than 1.5 percent of the amount referred to 
        in paragraph (1) for each of fiscal years 2013 through 
        2018.

SEC. 110A. RESERVATION FOR EXPANDED TRANSITION SERVICES.

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

                           PAYMENTS TO STATES

  Sec. 111. (a)(1) Except as provided in paragraph (2), from 
each State's allotment under this part for any fiscal year, the 
[Commissioner] Director shall pay to a State an amount equal to 
the Federal share of the cost of vocational rehabilitation 
services under the plan for that State approved under section 
101, including expenditures for the administration of the State 
plan.
  (2)(A) * * *

           *       *       *       *       *       *       *

  (C) The [Commissioner] Director may waive or modify any 
requirement or limitation under subparagraph (B) or section 
101(a)(17) if the [Commissioner] Director determines that a 
waiver or modification is an equitable response to exceptional 
or uncontrollable circumstances affecting the State.
  (3)(A) * * *
  (B) If the Federal share with respect to rehabilitation 
facilities in such State is determined pursuant to section 
645(b)(2) of such Act (42 U.S.C. 291o(b)(2)), the percentage of 
the cost for purposes of this section shall be determined in 
accordance with regulations prescribed by the [Commissioner] 
Director designed to achieve as nearly as practicable results 
comparable to the results obtained under such section.
  (b) The method of computing and paying amounts pursuant to 
subsection (a) shall be as follows:
          (1) The [Commissioner] Director shall, prior to the 
        beginning of each calendar quarter or other period 
        prescribed by the [Commissioner] Director, estimate the 
        amount to be paid to each State under the provisions of 
        such subsection for such period, such estimate to be 
        based on such records of the State and information 
        furnished by it, and such other investigation as the 
        [Commissioner] Director may find necessary.
          (2) The [Commissioner] Director shall pay, from the 
        allotment available therefor, the amount so estimated 
        by the [Commissioner] Director for such period, reduced 
        or increased, as the case may be, by any sum (not 
        previously adjusted under this paragraph) by which the 
        [Commissioner] Director finds that the estimate of the 
        amount to be paid the State for any prior period under 
        such subsection was greater or less than the amount 
        which should have been paid to the State for such prior 
        period under such subsection. Such payment shall be 
        made prior to audit or settlement by the General 
        Accounting Office, shall be made through the disbursing 
        facilities of the Treasury Department, and shall be 
        made in such installments as the [Commissioner] 
        Director may determine.

                       CLIENT ASSISTANCE PROGRAM

  Sec. 112. (a) * * *

           *       *       *       *       *       *       *

  (c)(1)(A) * * *
  (B)(i) The Governor may not redesignate the agency designated 
under subparagraph (A) without good cause and unless--
          (I) * * *

           *       *       *       *       *       *       *

          (III) the agency has the opportunity to appeal to the 
        [Commissioner] Director on the basis that the 
        redesignation was not for good cause.

           *       *       *       *       *       *       *

  (e)(1)(A) * * *

           *       *       *       *       *       *       *

  (D) The Secretary shall make grants to the protection and 
advocacy system serving the American Indian Consortium to 
provide services in accordance with this section. The amount of 
such grants shall be the same as provided to territories under 
this subsection.
  [(D)] (E)(i) * * *

           *       *       *       *       *       *       *

  (h) There are authorized to be appropriated [such sums as may 
be necessary for fiscal years 1999 through 2003] $12,240,000 
for fiscal year 2013 and each of the 5 succeeding fiscal years 
to carry out the provisions of this section.

       Part C--American Indian Vocational Rehabilitation Services

               VOCATIONAL REHABILITATION SERVICES GRANTS

  Sec. 121. (a) The [Commissioner] Director, in accordance with 
the provisions of this part, may make grants to the governing 
bodies of Indian tribes located on Federal and State 
reservations (and consortia of such governing bodies) to pay 90 
percent of the costs of vocational rehabilitation services for 
American Indians who are individuals with disabilities residing 
on or near such reservations. The non-Federal share of such 
costs may be in cash or in kind, fairly valued, and the 
[Commissioner] Director may waive such non-Federal share 
requirement in order to carry out the purposes of this Act.
  (b)(1) No grant may be made under this part for any fiscal 
year unless an application therefor has been submitted to and 
approved by the [Commissioner] Director. The [Commissioner] 
Director may not approve an application unless the 
application--
          (A) is made at such time, in such manner, and 
        contains such information as the [Commissioner] 
        Director may require;

           *       *       *       *       *       *       *

  (2) The provisions of sections 5, 6, 7, and 102(a) of the 
Indian Self-Determination and Education Assistance Act shall be 
applicable to any application submitted under this part. For 
purposes of this paragraph, any reference in any such provision 
to the Secretary of Education or to the Secretary of the 
Interior shall be considered to be a reference to the 
[Commissioner] Director.
  (3) Any application approved under this part shall be 
effective for not more than 60 months, except as determined 
otherwise by the [Commissioner] Director pursuant to prescribed 
regulations. The State shall continue to provide vocational 
rehabilitation services under its State plan to American 
Indians residing on or near a reservation whenever such State 
includes any such American Indians in its State population 
under section 110(a)(1).

           *       *       *       *       *       *       *

     Part D--Vocational Rehabilitation Services Client Information

SEC. 131. DATA SHARING.

  (a) In General.--
          (1) * * *
          (2) Employment statistics.--The Secretary of Labor 
        shall provide the [Commissioner] Director with 
        employment statistics specified in section 15 of the 
        Wagner-Peyser Act, that facilitate evaluation by the 
        [Commissioner] Director of the program carried out 
        under part B, and allow the [Commissioner] Director to 
        compare the progress of individuals with disabilities 
        who are assisted under the program in securing, 
        retaining, regaining, and advancing in employment with 
        the progress made by individuals who are assisted under 
        title I of the Workforce Investment Act of 1998.

           *       *       *       *       *       *       *

                    TITLE II--RESEARCH AND TRAINING

                    AUTHORIZATION OF APPROPRIATIONS

  Sec. 201. [(a) There are authorized to be appropriated--
          [(1) for the purpose of providing for the expenses of 
        the National Institute on Disability and Rehabilitation 
        Research under section 202, which shall include the 
        expenses of the Rehabilitation Research Advisory 
        Council under section 205, and shall not include the 
        expenses of such Institute to carry out section 204, 
        such sums as may be necessary for each of fiscal years 
        1999 through 2003; and
          [(2) to carry out section 204, such sums as may be 
        necessary for each of fiscal years 1999 through 2003.] 
        (a) There are authorized to be appropriated 
        $108,817,000 for fiscal year 2013 and each of the 5 
        succeeding fiscal years to carry out this title.

           *       *       *       *       *       *       *

      NATIONAL INSTITUTE ON DISABILITY AND REHABILITATION RESEARCH

  Sec. 202. (a)(1) * * *
  (2) In the performance of the functions of the office, the 
Director shall be directly responsible to the Secretary or to 
the same Under Secretary or Assistant Secretary of the 
Department of Education to whom the [Commissioner] Director is 
responsible under section 3(a).

           *       *       *       *       *       *       *

  (h)(1) * * *
  (2) Such plan shall--
          (A) * * *

           *       *       *       *       *       *       *

          (D) be developed by the Director--
                  (i) * * *
                  (ii) in coordination with the [Commissioner] 
                Director;

           *       *       *       *       *       *       *

                         INTERAGENCY COMMITTEE

  Sec. 203. (a)(1) In order to promote coordination and 
cooperation among Federal departments and agencies conducting 
rehabilitation research programs, including programs relating 
to assistive technology research and research that incorporates 
the principles of universal design, there is established within 
the Federal Government an Interagency Committee on Disability 
Research (hereinafter in this section referred to as the 
``Committee''), chaired by the Director and comprised of such 
members as the President may designate, including the following 
(or their designees): the Director, the [Commissioner] Director 
of the Rehabilitation Services Administration, the Assistant 
Secretary for Special Education and Rehabilitative Services, 
the Secretary of Education, the Secretary of Veterans Affairs, 
the Director of the National Institutes of Health, the Director 
of the National Institute of Mental Health, the Administrator 
of the National Aeronautics and Space Administration, the 
Secretary of Transportation, the Assistant Secretary of the 
Interior for Indian Affairs, the Director of the Indian Health 
Service, and the Director of the National Science Foundation.

           *       *       *       *       *       *       *

     TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
                             DEMONSTRATIONS

SEC. 301. DECLARATION OF PURPOSE AND COMPETITIVE BASIS OF GRANTS AND 
                    CONTRACTS.

  (a) Purpose.--It is the purpose of this title to authorize 
grants and contracts to--
          (1) * * *
          (2) conduct special projects and demonstrations that 
        expand and improve the provision of rehabilitation and 
        other services (including those services provided 
        through community rehabilitation programs) authorized 
        under this Act, or that otherwise further the purposes 
        of this Act, including related research and evaluation; 
        and
          [(3) provide vocational rehabilitation services to 
        individuals with disabilities who are migrant or 
        seasonal farmworkers;
          [(4) initiate recreational programs to provide 
        recreational activities and related experiences for 
        individuals with disabilities to aid such individuals 
        in employment, mobility, socialization, independence, 
        and community integration; and]
          [(5)] (3) provide training and information to 
        individuals with disabilities and the individuals' 
        representatives, and other appropriate parties to 
        develop the skills necessary for individuals with 
        disabilities to gain access to the rehabilitation 
        system and statewide workforce investment systems and 
        to become active decisionmakers in the rehabilitation 
        process.

           *       *       *       *       *       *       *

SEC. 302. TRAINING.

  (a) Grants and Contracts for Personnel Training.--
          (1) Authority.--The [Commissioner] Director shall 
        make grants to, and enter into contracts with, States 
        and public or nonprofit agencies and organizations 
        (including institutions of higher education) to pay 
        part of the cost of projects to provide training, 
        traineeships, and related activities, including the 
        provision of technical assistance, that are designed to 
        assist in increasing the numbers of, and upgrading the 
        skills of, qualified personnel (especially 
        rehabilitation counselors) who are trained in providing 
        vocational, medical, social, and psychological 
        rehabilitation services, who are trained to assist 
        individuals with communication and related disorders, 
        who are trained to provide other services provided 
        under this Act, to individuals with disabilities, and 
        who may include--
                  (A) * * *

           *       *       *       *       *       *       *

          (3) Related federal statutes.--In carrying out this 
        subsection, the [Commissioner] Director may make grants 
        to and enter into contracts with States and public or 
        nonprofit agencies and organizations, including 
        institutions of higher education, to furnish training 
        regarding provisions of Federal statutes, including 
        section 504, title I of the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12111 et seq.), and the 
        provisions of titles II and XVI of the Social Security 
        Act (42 U.S.C. 401 et seq. and 1381 et seq.), that are 
        related to work incentives for individuals with 
        disabilities.
          (4) Training for statewide workforce systems 
        personnel.--The [Commissioner] Director may make grants 
        to and enter into contracts under this subsection with 
        States and public or nonprofit agencies and 
        organizations, including institutions of higher 
        education, to furnish training to personnel providing 
        services to individuals with disabilities under title I 
        of the Workforce Investment Act of 1998. Under this 
        paragraph, personnel may be trained--
                  (A) * * *

           *       *       *       *       *       *       *

  (b) Grants and Contracts for Academic Degrees and Academic 
Certificate Granting Training Projects.--
          (1) Authority.--
                  (A) In general.--The [Commissioner] Director 
                may make grants to, and enter into contracts 
                with, States and public or nonprofit agencies 
                and organizations (including institutions of 
                higher education) to pay part of the costs of 
                academic training projects to provide training 
                that leads to an academic degree or academic 
                certificate. In making such grants or entering 
                into such contracts, the [Commissioner] 
                Director shall target funds to areas determined 
                under subsection (e) to have shortages of 
                qualified personnel.

           *       *       *       *       *       *       *

          (2) Application.--No grant shall be awarded or 
        contract entered into under this subsection unless the 
        applicant has submitted to the [Commissioner] Director 
        an application at such time, in such form, in 
        accordance with such procedures, and including such 
        information as the Secretary may require, including--
                  (A) * * *

           *       *       *       *       *       *       *

          (5) Agreements.--
                  (A) Contents.--A recipient of a grant or 
                contract under this subsection shall provide 
                assurances to the [Commissioner] Director that 
                each individual who receives a scholarship, for 
                any academic year beginning after June 1, 1992, 
                utilizing funds provided under such grant or 
                contract shall enter into an agreement with the 
                recipient under which the individual shall--
                          (i) * * *

           *       *       *       *       *       *       *

                except as the [Commissioner] Director by 
                regulation may provide for repayment exceptions 
                and deferrals.
                  (B) Enforcement.--The [Commissioner] Director 
                shall be responsible for the enforcement of 
                each agreement entered into under subparagraph 
                (A) upon completion of the training involved 
                under such subparagraph.
  (c) Grants to Historically Black Colleges and Universities.--
The [Commissioner] Director, in carrying out this section, 
shall make grants to historically Black colleges and 
universities and other institutions of higher education whose 
minority student enrollment is at least 50 percent of the total 
enrollment of the institution.
  (d) Application.--A grant may not be awarded to a State or 
other organization under this section unless the State or 
organization has submitted an application to the [Commissioner] 
Director at such time, in such form, in accordance with such 
procedures, and containing such information as the 
[Commissioner] Director may require. Any such application shall 
include a detailed description of strategies that will be 
utilized to recruit and train individuals so as to reflect the 
diverse populations of the United States as part of the effort 
to increase the number of individuals with disabilities, and 
individuals who are from linguistically and culturally diverse 
backgrounds, who are available to provide rehabilitation 
services.
  (e) Evaluation and Collection of Data.--The [Commissioner] 
Director shall evaluate the impact of the training programs 
conducted under this section, and collect information on the 
training needs of, and data on shortages of qualified personnel 
necessary to provide services to individuals with disabilities. 
The [Commissioner] Director shall prepare and submit to 
Congress, by September 30 of each fiscal year, a report setting 
forth and justifying in detail how the funds made available for 
training under this section for the fiscal year prior to such 
submission are allocated by professional discipline and other 
program areas. The report shall also contain findings on such 
personnel shortages, how funds proposed for the succeeding 
fiscal year will be allocated under the President's budget 
proposal, and how the findings on personnel shortages justify 
the allocations.
  (f) Grants for the Training of Interpreters.--
          (1) Authority.--
                  (A) In general.--For the purpose of training 
                a sufficient number of qualified interpreters 
                to meet the communications needs of individuals 
                who are deaf or hard of hearing, and 
                individuals who are deaf-blind, the 
                [Commissioner] Director, acting through a 
                Federal office responsible for deafness and 
                communicative disorders, may award grants to 
                public or private nonprofit agencies or 
                organizations to pay part of the costs--
                          (i) * * *

           *       *       *       *       *       *       *

                  (B) Geographic areas.--The [Commissioner] 
                Director shall award grants under this 
                subsection for programs in geographic areas 
                throughout the United States that the 
                [Commissioner] Director considers appropriate 
                to best carry out the objectives of this 
                section.
                  (C) Priority.--In awarding grants under this 
                subsection, the [Commissioner] Director shall 
                give priority to public or private nonprofit 
                agencies or organizations with existing 
                programs that have a demonstrated capacity for 
                providing interpreter training services.
                  (D) Funding.--The [Commissioner] Director may 
                award grants under this subsection through the 
                use of--
                          (i) * * *

           *       *       *       *       *       *       *

          (2) Application.--A grant may not be awarded to an 
        agency or organization under paragraph (1) unless the 
        agency or organization has submitted an application to 
        the [Commissioner] Director at such time, in such form, 
        in accordance with such procedures, and containing such 
        information as the [Commissioner] Director may require, 
        including--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) assurances that any interpreter trained 
                or retrained under a program funded under the 
                grant will meet such minimum standards of 
                competency as the [Commissioner] Director may 
                establish for purposes of this subsection; and
                  (D) such other information as the 
                [Commissioner] Director may require.
  (g) Technical Assistance [and In-Service Training].--
          (1) Technical assistance.--The [Commissioner] 
        Director is authorized to provide technical assistance 
        to State designated agencies and community 
        rehabilitation programs, directly or through contracts 
        with State designated agencies or nonprofit 
        organizations.
          (2) Compensation.--An expert or consultant appointed 
        or serving under contract pursuant to this section 
        shall be compensated at a rate, subject to approval of 
        the [Commissioner] Director, that shall not exceed the 
        daily equivalent of the rate of pay for level 4 of the 
        Senior Executive Service Schedule under section 5382 of 
        title 5, United States Code. Such an expert or 
        consultant may be allowed travel and transportation 
        expenses in accordance with section 5703 of title 5, 
        United States Code.
          [(3) In-service training of rehabilitation 
        personnel.--
                  [(A) Projects.--Subject to subparagraph (B), 
                at least 15 percent of the sums appropriated to 
                carry out this section shall be allocated to 
                designated State agencies to be used, directly 
                or indirectly, for projects for in-service 
                training for rehabilitation personnel, 
                consistent with the needs identified through 
                the comprehensive system for personnel 
                development required by section 101(a)(7), 
                including projects designed--
                          [(i) to address recruitment and 
                        retention of qualified rehabilitation 
                        professionals;
                          [(ii) to provide for succession 
                        planning;
                          [(iii) to provide for leadership 
                        development and capacity building; and
                          [(iv) for fiscal years 1999 and 2000, 
                        to provide training regarding the 
                        Workforce Investment Act of 1998 and 
                        the amendments to this Act made by the 
                        Rehabilitation Act Amendments of 1998.
                  [(B) Limitation.--If the allocation to 
                designated State agencies required by 
                subparagraph (A) would result in a lower level 
                of funding for projects being carried out on 
                the date of enactment of the Rehabilitation Act 
                Amendments of 1998 by other recipients of funds 
                under this section, the Commissioner may 
                allocate less than 15 percent of the sums 
                described in subparagraph (A) to designated 
                State agencies for such in-service training.]
  (h) Provision of Information.--The [Commissioner] Director, 
subject to the provisions of section 306, may require that 
recipients of grants or contracts under this section provide 
information, including data, with regard to the impact of 
activities funded under this section.
  (i) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section [such sums as may be 
necessary for each of the fiscal years 1999 through 2003] 
$35,515,000 for fiscal year 2013 and each of the 5 succeeding 
fiscal years.

SEC. 303. DEMONSTRATION AND TRAINING PROGRAMS.

  (a) Demonstration Projects To Increase Client Choice.--
          (1) Grants.--The [Commissioner] Director may make 
        grants to States and public or nonprofit agencies and 
        organizations to pay all or part of the costs of 
        projects to demonstrate ways to increase client choice 
        in the rehabilitation process, including the selection 
        of providers of vocational rehabilitation services.

           *       *       *       *       *       *       *

          (3) Application.--Any eligible entity that desires to 
        receive a grant under this subsection shall submit an 
        application at such time, in such manner, and 
        containing such information and assurances as the 
        [Commissioner] Director may require, including--
                  (A) * * *

           *       *       *       *       *       *       *

          (4) Award of grants.--In selecting entities to 
        receive grants under paragraph (1), the [Commissioner] 
        Director shall take into consideration--
                  (A) * * *

           *       *       *       *       *       *       *

          (5) Records.--Entities that receive grants under 
        paragraph (1) shall maintain such records as the 
        [Commissioner] Director may require and comply with any 
        request from the [Commissioner] Director for such 
        records.

           *       *       *       *       *       *       *

          (7) Evaluation.--The [Commissioner] Director may 
        conduct an evaluation of the demonstration projects 
        with respect to the services provided, clients served, 
        client outcomes obtained, implementation issues 
        addressed, the cost-effectiveness of the project, and 
        the effects of increased choice on clients and service 
        providers. The [Commissioner] Director may reserve 
        funds for the evaluation for a fiscal year from the 
        amounts appropriated to carry out projects under this 
        section for the fiscal year.

           *       *       *       *       *       *       *

  (b) Special Demonstration Programs.--
          (1) Grants; contracts.--The [Commissioner] Director, 
        subject to the provisions of section 306, may provide 
        grants to, or enter into contracts with, eligible 
        entities to pay all or part of the cost of programs 
        that expand and improve the provision of rehabilitation 
        and other services authorized under this Act or that 
        further the purposes of the Act, including related 
        research and evaluation activities.
          (2) Eligible entities; terms and conditions.--
                  (A) Eligible entities.--To be eligible to 
                receive a grant, or enter into a contract, 
                under paragraph (1), an entity shall be a State 
                vocational rehabilitation agency, community 
                rehabilitation program, Indian tribe or tribal 
                organization, or other public or nonprofit 
                agency or organization, or as the 
                [Commissioner] Director determines appropriate, 
                a for-profit organization. The [Commissioner] 
                Director may limit competitions to one or more 
                types of organizations described in this 
                subparagraph.
                  (B) Terms and conditions.--A grant or 
                contract under paragraph (1) shall contain such 
                terms and conditions as the [Commissioner] 
                Director may require.
          (3) Application.--An eligible entity that desires to 
        receive a grant, or enter into a contract, under 
        paragraph (1) shall submit an application to the 
        Secretary at such time, in such form, and containing 
        such information and assurances as the [Commissioner] 
        Director may require, including, if the [Commissioner] 
        Director determines appropriate, a description of how 
        the proposed project or demonstration program--
                  (A) * * *

           *       *       *       *       *       *       *

          (5) Priority for competitions.--
                  (A) In general.--In announcing competitions 
                for grants and contracts under this subsection, 
                the [Commissioner] Director shall give priority 
                consideration to--
                          (i) * * *

           *       *       *       *       *       *       *

                  (B) Additional competitions.--In announcing 
                competitions for grants and contracts under 
                this subsection, the [Commissioner] Director 
                may require that applicants address one or more 
                of the following:
                          (i) * * *

           *       *       *       *       *       *       *

          (6) Use of funds for continuation awards.--The 
        [Commissioner] Director may use funds made available to 
        carry out this section for continuation awards for 
        projects that were funded under sections 12 and 311 (as 
        such sections were in effect on the day before the date 
        of the enactment of the Rehabilitation Act Amendments 
        of 1998).
  (c) Parent Information and Training Program.--
          (1) Grants.--The [Commissioner] Director is 
        authorized to make grants to private nonprofit 
        organizations for the purpose of establishing programs 
        to provide training and information to enable 
        individuals with disabilities, and the parents, family 
        members, guardians, advocates, or other authorized 
        representatives of the individuals to participate more 
        effectively with professionals in meeting the 
        vocational, independent living, and rehabilitation 
        needs of individuals with disabilities. Such grants 
        shall be designed to meet the unique training and 
        information needs of the individuals described in the 
        preceding sentence, who live in the area to be served, 
        particularly those who are members of populations that 
        have been unserved or underserved by programs under 
        this Act.

           *       *       *       *       *       *       *

          (3) Award of grants.--The [Commissioner] Director 
        shall ensure that grants under this subsection--
                  (A) * * *

           *       *       *       *       *       *       *

          (4) Eligible organizations.--In order to receive a 
        grant under this subsection, an organization--
                  (A) shall submit an application to the 
                [Commissioner] Director at such time, in such 
                manner, and containing such information as the 
                [Commissioner] Director may require, including 
                information demonstrating the capacity and 
                expertise of the organization--
                          (i) * * *

           *       *       *       *       *       *       *

          (6) Coordination.--The [Commissioner] Director shall 
        provide coordination and technical assistance by grant 
        or cooperative agreement for establishing, developing, 
        and coordinating the training and information programs. 
        To the extent practicable, such assistance shall be 
        provided by the parent training and information centers 
        established pursuant to section 671 of the Individuals 
        with Disabilities Education Act.
          (7) Review.--
                  (A) * * *
                  (B) Review for grant renewal.--If a nonprofit 
                private organization requests the renewal of a 
                grant under this subsection, the board of 
                directors or the special governing committee 
                shall prepare and submit to the [Commissioner] 
                Director a written review of the training and 
                information program conducted by the 
                organization during the preceding fiscal year.
  (d) Braille Training Programs.--
          (1) Establishment.--The [Commissioner] Director shall 
        make grants to, and enter into contracts with, States 
        and public or nonprofit agencies and organizations, 
        including institutions of higher education, to pay all 
        or part of the cost of training in the use of braille 
        for personnel providing vocational rehabilitation 
        services or educational services to youth and adults 
        who are blind.

           *       *       *       *       *       *       *

          (3) Application.--To be eligible to receive a grant, 
        or enter into a contract, under paragraph (1), an 
        agency or organization shall submit an application to 
        the [Commissioner] Director at such time, in such 
        manner, and containing such information as the 
        [Commissioner] Director may require.
  (e) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section [such sums as may be 
necessary for each of the fiscal years 1999 through 2003] 
$5,325,000 for fiscal year 2013 and each of the 5 succeeding 
fiscal years.

[SEC. 304. MIGRANT AND SEASONAL FARMWORKERS.

  [(a) Grants.--
          [(1) Authority.--The Commissioner, subject to the 
        provisions of section 306, may make grants to eligible 
        entities to pay up to 90 percent of the cost of 
        projects or demonstration programs for the provision of 
        vocational rehabilitation services to individuals with 
        disabilities who are migrant or seasonal farmworkers, 
        as determined in accordance with rules prescribed by 
        the Secretary of Labor, and to the family members who 
        are residing with such individuals (whether or not such 
        family members are individuals with disabilities).
          [(2) Eligible entities.--To be eligible to receive a 
        grant under paragraph (1), an entity shall be--
                  [(A) a State designated agency;
                  [(B) a nonprofit agency working in 
                collaboration with a State agency described in 
                subparagraph (A); or
                  [(C) a local agency working in collaboration 
                with a State agency described in subparagraph 
                (A).
          [(3) Maintenance and transportation.--
                  [(A) In general.--Amounts provided under a 
                grant under this section may be used to provide 
                for the maintenance of and transportation for 
                individuals and family members described in 
                paragraph (1) as necessary for the 
                rehabilitation of such individuals.
                  [(B) Requirement.--Maintenance payments under 
                this paragraph shall be provided in a manner 
                consistent with any maintenance payments 
                provided to other individuals with disabilities 
                in the State under this Act.
          [(4) Assurance of cooperation.--To be eligible to 
        receive a grant under this section an entity shall 
        provide assurances (satisfactory to the Commissioner) 
        that in the provision of services under the grant there 
        will be appropriate cooperation between the grantee and 
        other public or nonprofit agencies and organizations 
        having special skills and experience in the provision 
        of services to migrant or seasonal farmworkers or their 
        families.
          [(5) Coordination with other programs.--The 
        Commissioner shall administer this section in 
        coordination with other programs serving migrant and 
        seasonal farmworkers, including programs under title I 
        of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 6301 et seq.), section 330 of the Public 
        Health Service Act (42 U.S.C. 254b), the Migrant and 
        Seasonal Agricultural Worker Protection Act (29 U.S.C. 
        1801 et seq.), and the Workforce Investment Act of 
        1998.
  [(b) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary to carry out 
this section, for each of the fiscal years 1999 through 2003.

[SEC. 305. RECREATIONAL PROGRAMS.

  [(a) Grants.--
          [(1) Authority.--
                  [(A) In general.--The Commissioner, subject 
                to the provisions of section 306, shall make 
                grants to States, public agencies, and 
                nonprofit private organizations to pay the 
                Federal share of the cost of the establishment 
                and operation of recreation programs to provide 
                individuals with disabilities with recreational 
                activities and related experiences to aid in 
                the employment, mobility, socialization, 
                independence, and community integration of such 
                individuals.
                  [(B) Recreation programs.--The recreation 
                programs that may be funded using assistance 
                provided under a grant under this section may 
                include vocational skills development, leisure 
                education, leisure networking, leisure resource 
                development, physical education and sports, 
                scouting and camping, 4-H activities, 
                construction of facilities for aquatic 
                rehabilitation therapy, music, dancing, 
                handicrafts, art, and homemaking. When possible 
                and appropriate, such programs and activities 
                should be provided in settings with peers who 
                are not individuals with disabilities.
                  [(C) Design of program.--Programs and 
                activities carried out under this section shall 
                be designed to demonstrate ways in which such 
                programs assist in maximizing the independence 
                and integration of individuals with 
                disabilities.
          [(2) Maximum term of grant.--A grant under this 
        section shall be made for a period of not more than 3 
        years.
          [(3) Availability of nongrant resources.--
                  [(A) In general.--A grant may not be made to 
                an applicant under this section unless the 
                applicant provides assurances that, with 
                respect to costs of the recreation program to 
                be carried out under the grant, the applicant, 
                to the maximum extent practicable, will make 
                available non-Federal resources (in cash or in-
                kind) to pay the non-Federal share of such 
                costs.
                  [(B) Federal share.--The Federal share of the 
                costs of the recreation programs carried out 
                under this section shall be--
                          [(i) with respect to the first year 
                        in which assistance is provided under a 
                        grant under this section, 100 percent;
                          [(ii) with respect to the second year 
                        in which assistance is provided under a 
                        grant under this section, 75 percent; 
                        and
                          [(iii) with respect to the third year 
                        in which assistance is provided under a 
                        grant under this section, 50 percent.
          [(4) Application.--To be eligible to receive a grant 
        under this section, a State, agency, or organization 
        shall submit an application to the Commissioner at such 
        time, in such manner, and containing such information 
        as the Commissioner may require, including a 
        description of--
                  [(A) the manner in which the findings and 
                results of the project to be funded under the 
                grant, particularly information that 
                facilitates the replication of the results of 
                such projects, will be made generally 
                available; and
                  [(B) the manner in which the service program 
                funded under the grant will be continued after 
                Federal assistance ends.
          [(5) Level of services.--Recreation programs funded 
        under this section shall maintain, at a minimum, the 
        same level of services over a 3-year project period.
          [(6) Reports by grantees.--
                  [(A) Requirement.--The Commissioner shall 
                require that each recipient of a grant under 
                this section annually prepare and submit to the 
                Commissioner a report concerning the results of 
                the activities funded under the grant.
                  [(B) Limitation.--The Commissioner may not 
                make financial assistance available to a grant 
                recipient for a subsequent year until the 
                Commissioner has received and evaluated the 
                annual report of the recipient under 
                subparagraph (A) for the current year.
  [(b) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section, such sums as may 
be necessary for each of the fiscal years 1999 through 2003.

SEC. [306.] 304. MEASURING OF PROJECT OUTCOMES AND PERFORMANCE.

  The [Commissioner] Director may require that recipients of 
grants under this title submit information, including data, as 
determined by the [Commissioner] Director to be necessary to 
measure project outcomes and performance, including any data 
needed to comply with the Government Performance and Results 
Act.

                TITLE IV--NATIONAL COUNCIL ON DISABILITY

                       DUTIES OF NATIONAL COUNCIL

  Sec. 401. (a) The National Council shall--
          (1) * * *
          (2) provide advice to the [Commissioner] Director 
        with respect to the policies of and conduct of the 
        Rehabilitation Services Administration;
          (3) advise the President, the Congress, the 
        [Commissioner] Director, the appropriate Assistant 
        Secretary of the Department of Education, and the 
        Director of the National Institute on Disability and 
        Rehabilitation Research on the development of the 
        programs to be carried out under this Act;

           *       *       *       *       *       *       *

                    AUTHORIZATION OF APPROPRIATIONS

  Sec. 405. There are authorized to be appropriated to carry 
out this title [such sums as may be necessary for each of the 
fiscal years 1999 through 2003] $3,258,000 for fiscal year 2013 
and each of the 5 succeeding fiscal years.

                      TITLE V--RIGHTS AND ADVOCACY

       ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD

  Sec. 502. (a) * * *

           *       *       *       *       *       *       *

  (j) There are authorized to be appropriated for the purpose 
of carrying out the duties and functions of the Access Board 
under this section [such sums as may be necessary for each of 
the fiscal years 1999 through 2003] $7,400,000 for fiscal year 
2013 and each of the 5 succeeding fiscal years.

SEC. 509. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

  (a) * * *
  (b) Appropriations Less Than $5,500,000.--For any fiscal year 
in which the amount appropriated to carry out this section is 
less than $5,500,000, the [Commissioner] Director may make 
grants from such amount to eligible systems within States to 
plan for, develop outreach strategies for, and carry out 
protection and advocacy programs authorized under this section 
for individuals with disabilities who meet the requirements of 
subparagraphs (A) and (B) of subsection (a)(1).
  (c) Appropriations of $5,500,000 or More.--
          (1) Reservations.--
                  (A) Technical assistance.--For any fiscal 
                year in which the amount appropriated to carry 
                out this section equals or exceeds $5,500,000, 
                the [Commissioner] Director shall set aside not 
                less than 1.8 percent and not more than 2.2 
                percent of the amount to provide training and 
                technical assistance to the systems established 
                under this section.
                  (B) Grant for the eligible system serving the 
                american indian consortium.--For any fiscal 
                year in which the amount appropriated to carry 
                out this section equals or exceeds $10,500,000, 
                the [Commissioner] Director shall reserve a 
                portion, and use the portion to make a grant 
                for the eligible system serving the American 
                Indian consortium. The Commission shall make 
                the grant in an amount of not less than $50,000 
                for the fiscal year.
          (2) Allotments.--For any such fiscal year, after the 
        reservations required by paragraph (1) have been made, 
        the [Commissioner] Director shall make allotments from 
        the remainder of such amount in accordance with 
        paragraph (3) to eligible systems within States to 
        enable such systems to carry out protection and 
        advocacy programs authorized under this section for 
        individuals referred to in subsection (b).
          (3) Systems within states.--
                  (A) Population basis.--Except as provided in 
                subparagraph (B), from such remainder for each 
                such fiscal year, the [Commissioner] Director 
                shall make an allotment to the eligible system 
                within a State of an amount bearing the same 
                ratio to such remainder as the population of 
                the State bears to the population of all 
                States.

           *       *       *       *       *       *       *

          (5) Adjustment for inflation.--For any fiscal year, 
        beginning in fiscal year 1999, in which the total 
        amount appropriated to carry out this section exceeds 
        the total amount appropriated to carry out this section 
        for the preceding fiscal year, the [Commissioner] 
        Director shall increase each of the minimum grants or 
        allotments under paragraphs (1)(B), (3)(B), and (4)(B) 
        by a percentage that shall not exceed the percentage 
        increase in the total amount appropriated to carry out 
        this section between the preceding fiscal year and the 
        fiscal year involved.
  (d) Proportional Reduction.--To provide minimum allotments to 
systems within States (as increased under subsection (c)(5)) 
under subsection (c)(3)(B), or to provide minimum allotments to 
systems within States (as increased under subsection (c)(5)) 
under subsection (c)(4)(B), the [Commissioner] Director shall 
proportionately reduce the allotments of the remaining systems 
within States under subsection (c)(3), with such adjustments as 
may be necessary to prevent the allotment of any such remaining 
system within a State from being reduced to less than the 
minimum allotment for a system within a State (as increased 
under subsection (c)(5)) under subsection (c)(3)(B), or the 
minimum allotment for a State (as increased under subsection 
(c)(5)) under subsection (c)(4)(B), as appropriate.
  (e) Reallotment.--Whenever the [Commissioner] Director 
determines that any amount of an allotment to a system within a 
State for any fiscal year described in subsection (c)(1) will 
not be expended by such system in carrying out the provisions 
of this section, the [Commissioner] Director shall make such 
amount available for carrying out the provisions of this 
section to one or more of the systems that the [Commissioner] 
Director determines will be able to use additional amounts 
during such year for carrying out such provisions. Any amount 
made available to a system for any fiscal year pursuant to the 
preceding sentence shall, for the purposes of this section, be 
regarded as an increase in the allotment of the system (as 
determined under the preceding provisions of this section) for 
such year.
  (f) Application.--In order to receive assistance under this 
section, an eligible system shall submit an application to the 
[Commissioner] Director, at such time, in such form and manner, 
and containing such information and assurances as the 
[Commissioner] Director determines necessary to meet the 
requirements of this section, including assurances that the 
eligible system will--
          (1) * * *

           *       *       *       *       *       *       *

          (7) provide assurances to the [Commissioner] Director 
        that funds made available under this section will be 
        used to supplement and not supplant the non-Federal 
        funds that would otherwise be made available for the 
        purpose for which Federal funds are provided.
  (g) Carryover and Direct Payment.--
          (1) Direct payment.--Notwithstanding any other 
        provision of law, the [Commissioner] Director shall pay 
        directly to any system that complies with the 
        provisions of this section, the amount of the allotment 
        of the State or the grant for the eligible system that 
        serves the American Indian consortium involved under 
        this section, unless the State or American Indian 
        consortium provides otherwise.

           *       *       *       *       *       *       *

  (h) Limitation on Disclosure Requirements.--For purposes of 
any audit, report, or evaluation of the performance of the 
program established under this section, the [Commissioner] 
Director shall not require such a program to disclose the 
identity of, or any other personally identifiable information 
related to, any individual requesting assistance under such 
program.

           *       *       *       *       *       *       *

  (j) Delegation.--The [Commissioner] Director may delegate the 
administration of this program to the [Commissioner] Director 
of the Administration on Developmental Disabilities within the 
Department of Health and Human Services.
  (k) Report.--The [Commissioner] Director shall annually 
prepare and submit to the Committee on Education and the 
Workforce of the House of Representatives and the Committee on 
Labor and Human Resources of the Senate a report describing the 
types of services and activities being undertaken by programs 
funded under this section, the total number of individuals 
served under this section, the types of disabilities 
represented by such individuals, and the types of issues being 
addressed on behalf of such individuals.
  (l) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section [such sums as may be 
necessary for each of the fiscal years 1999 through 2003] 
$18,031,000 for fiscal year 2013 and each of the 5 succeeding 
fiscal years.

           *       *       *       *       *       *       *

SEC. 510. ESTABLISHMENT OF STANDARDS FOR ACCESSIBLE MEDICAL DIAGNOSTIC 
                    EQUIPMENT.

  (a) Standards.--Not later than 24 months after the date of 
enactment of the Affordable Health Choices Act, the 
Architectural and Transportation Barriers Compliance Board 
shall, in consultation with the [Commissioner] Director of the 
Food and Drug Administration, promulgate regulatory standards 
in accordance with the Administrative Procedure Act (2 U.S.C. 
551 et seq.) setting forth the minimum technical criteria for 
medical diagnostic equipment used in (or in conjunction with) 
physician's offices, clinics, emergency rooms, hospitals, and 
other medical settings. The standards shall ensure that such 
equipment is accessible to, and usable by, individuals with 
accessibility needs, and shall allow independent entry to, use 
of, and exit from the equipment by such individuals to the 
maximum extent possible.

           *       *       *       *       *       *       *

  (c) Review and Amendment.--The Architectural and 
Transportation Barriers Compliance Board, in consultation with 
the [Commissioner] Director of the Food and Drug 
Administration, shall periodically review and, as appropriate, 
amend the standards in accordance with the Administrative 
Procedure Act (2 U.S.C. 551 et seq.).

 [TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES

                              [SHORT TITLE

  [Sec. 601. This title may be cited as the ``Employment 
Opportunities for Individuals With Disabilities Act''.

                    [Part A--Projects With Industry

                        [PROJECTS WITH INDUSTRY

  [Sec. 611. (a)(1) The purpose of this part is to create and 
expand job and career opportunities for individuals with 
disabilities in the competitive labor market by engaging the 
talent and leadership of private industry as partners in the 
rehabilitation process, to identify competitive job and career 
opportunities and the skills needed to perform such jobs, to 
create practical job and career readiness and training 
programs, and to provide job placements and career advancement.
  [(2) The Commissioner, in consultation with the Secretary of 
Labor and with designated State units, may award grants to 
individual employers, community rehabilitation program 
providers, labor unions, trade associations, Indian tribes, 
tribal organizations, designated State units, and other 
entities to establish jointly financed Projects With Industry 
to create and expand job and career opportunities for 
individuals with disabilities, which projects shall--
          [(A) provide for the establishment of business 
        advisory councils, that shall--
                  [(i) be comprised of--
                          [(I) representatives of private 
                        industry, business concerns, and 
                        organized labor;
                          [(II) individuals with disabilities 
                        and representatives of individuals with 
                        disabilities; and
                          [(III) a representative of the 
                        appropriate designated State unit;
                  [(ii) identify job and career availability 
                within the community, consistent with the 
                current and projected local employment 
                opportunities identified by the local workforce 
                investment board for the community under 
                section 118(b)(1)(B) of the Workforce 
                Investment Act of 1998;
                  [(iii) identify the skills necessary to 
                perform the jobs and careers identified; and
                  [(iv) prescribe training programs designed to 
                develop appropriate job and career skills, or 
                job placement programs designed to identify and 
                develop job placement and career advancement 
                opportunities, for individuals with 
                disabilities in fields related to the job and 
                career availability identified under clause 
                (ii);
          [(B) provide job development, job placement, and 
        career advancement services;
          [(C) to the extent appropriate, provide for--
                  [(i) training in realistic work settings in 
                order to prepare individuals with disabilities 
                for employment and career advancement in the 
                competitive market; and
                  [(ii) to the extent practicable, the 
                modification of any facilities or equipment of 
                the employer involved that are used primarily 
                by individuals with disabilities, except that a 
                project shall not be required to provide for 
                such modification if the modification is 
                required as a reasonable accommodation under 
                the Americans with Disabilities Act of 1990 (42 
                U.S.C. 12101 et seq.); and
          [(D) provide individuals with disabilities with such 
        support services as may be required in order to 
        maintain the employment and career advancement for 
        which the individuals have received training under this 
        part.
  [(3)(A) An individual shall be eligible for services 
described in paragraph (2) if the individual is determined to 
be an individual described in section 102(a)(1), and if the 
determination is made in a manner consistent with section 
102(a).
  [(B) Such a determination may be made by the recipient of a 
grant under this part, to the extent the determination is 
appropriate and available and consistent with the requirements 
of section 102(a).
  [(4) The Commissioner shall enter into an agreement with the 
grant recipient regarding the establishment of the project. Any 
agreement shall be jointly developed by the Commissioner, the 
grant recipient, and, to the extent practicable, the 
appropriate designated State unit and the individuals with 
disabilities (or the individuals' representatives) involved. 
Such agreements shall specify the terms of training and 
employment under the project, provide for the payment by the 
Commissioner of part of the costs of the project (in accordance 
with subsection (c)), and contain the items required under 
subsection (b) and such other provisions as the parties to the 
agreement consider to be appropriate.
  [(5) Any agreement shall include a description of a plan to 
annually conduct a review and evaluation of the operation of 
the project in accordance with standards developed by the 
Commissioner under subsection (d), and, in conducting the 
review and evaluation, to collect data and information of the 
type described in subparagraphs (A) through (C) of section 
101(a)(10), as determined to be appropriate by the 
Commissioner.
  [(6) The Commissioner may include, as part of agreements with 
grant recipients, authority for such grant recipients to 
provide technical assistance to--
          [(A) assist employers in hiring individuals with 
        disabilities; or
          [(B) improve or develop relationships between--
                  [(i) grant recipients or prospective grant 
                recipients; and
                  [(ii) employers or organized labor; or
          [(C) assist employers in understanding and meeting 
        the requirements of the Americans with Disabilities Act 
        of 1990 (42 U.S.C. 12101 et seq.) as the Act relates to 
        employment of individuals with disabilities.
  [(b) No payment shall be made by the Commissioner under any 
agreement with a grant recipient entered into under subsection 
(a) unless such agreement--
          [(1) provides an assurance that individuals with 
        disabilities placed under such agreement shall receive 
        at least the applicable minimum wage;
          [(2) provides an assurance that any individual with a 
        disability placed under this part shall be afforded 
        terms and benefits of employment equal to terms and 
        benefits that are afforded to the similarly situated 
        nondisabled co-workers of the individual, and that such 
        individuals with disabilities shall not be segregated 
        from their co-workers; and
          [(3) provides an assurance that an annual evaluation 
        report containing information specified under 
        subsection (a)(5) shall be submitted as determined to 
        be appropriate by the Commissioner.
  [(c) Payments under this section with respect to any project 
may not exceed 80 per centum of the costs of the project.
  [(d)(1) The Commissioner shall develop standards for the 
evaluation described in subsection (a)(5) and shall review and 
revise the evaluation standards as necessary, subject to 
paragraph (2).
  [(2) In revising the standards for evaluation to be used by 
the grant recipients, the Commissioner shall obtain and 
consider recommendations for such standards from State 
vocational rehabilitation agencies, current and former grant 
recipients, professional organizations representing business 
and industry, organizations representing individuals with 
disabilities, individuals served by grant recipients, 
organizations representing community rehabilitation program 
providers, and labor organizations.
  [(e)(1)(A) A grant may be awarded under this section for a 
period of up to 5 years and such grant may be renewed.
  [(B) Grants under this section shall be awarded on a 
competitive basis. To be eligible to receive such a grant, a 
prospective grant recipient shall submit an application to the 
Commissioner at such time, in such manner, and containing such 
information as the Commissioner may require.
  [(2) The Commissioner shall, to the extent practicable, 
ensure an equitable distribution of payments made under this 
section among the States. To the extent funds are available, 
the Commissioner shall award grants under this section to new 
projects that will serve individuals with disabilities in 
States, portions of States, Indian tribes, or tribal 
organizations, that are currently unserved or underserved by 
projects.
  [(f)(1) The Commissioner shall, as necessary, develop and 
publish in the Federal Register, in final form, indicators of 
what constitutes minimum compliance consistent with the 
evaluation standards under subsection (d)(1).
  [(2) Each grant recipient shall report to the Commissioner at 
the end of each project year the extent to which the grant 
recipient is in compliance with the evaluation standards.
  [(3)(A) The Commissioner shall annually conduct onsite 
compliance reviews of at least 15 percent of grant recipients. 
The Commissioner shall select grant recipients for review on a 
random basis.
  [(B) The Commissioner shall use the indicators in determining 
compliance with the evaluation standards.
  [(C) The Commissioner shall ensure that at least one member 
of a team conducting such a review shall be an individual who--
          [(i) is not an employee of the Federal Government; 
        and
          [(ii) has experience or expertise in conducting 
        projects.
  [(D) The Commissioner shall ensure that--
          [(i) a representative of the appropriate designated 
        State unit shall participate in the review; and
          [(ii) no person shall participate in the review of a 
        grant recipient if--
                  [(I) the grant recipient provides any direct 
                financial benefit to the reviewer; or
                  [(II) participation in the review would give 
                the appearance of a conflict of interest.
  [(4) In making a determination concerning any subsequent 
grant under this section, the Commissioner shall consider the 
past performance of the applicant, if applicable. The 
Commissioner shall use compliance indicators developed under 
this subsection that are consistent with program evaluation 
standards developed under subsection (d) to assess minimum 
project performance for purposes of making continuation awards 
in the third, fourth, and fifth years.
  [(5) Each fiscal year the Commissioner shall include in the 
annual report to Congress required by section 13 an analysis of 
the extent to which grant recipients have complied with the 
evaluation standards. The Commissioner may identify individual 
grant recipients in the analysis. In addition, the Commissioner 
shall report the results of onsite compliance reviews, 
identifying individual grant recipients.
  [(g) The Commissioner may provide, directly or by way of 
grant, contract, or cooperative agreement, technical assistance 
to--
          [(1) entities conducting projects for the purpose of 
        assisting such entities in--
                  [(A) the improvement of or the development of 
                relationships with private industry or labor; 
                or
                  [(B) the improvement of relationships with 
                State vocational rehabilitation agencies; and
          [(2) entities planning the development of new 
        projects.
  [(h) As used in this section:
          [(1) The term ``agreement'' means an agreement 
        described in subsection (a)(4).
          [(2) The term ``project'' means a Project With 
        Industry established under subsection (a)(2).
          [(3) The term ``grant recipient'' means a recipient 
        of a grant under subsection (a)(2).

                    [AUTHORIZATION OF APPROPRIATIONS

  [Sec. 612. There are authorized to be appropriated to carry 
out the provisions of this part, such sums as may be necessary 
for each of fiscal years 1999 through 2003.

 [Part B--Supported Employment Services for Individuals With the Most 
                        Significant Disabilities

[SEC. 621. PURPOSE.

  [It is the purpose of this part to authorize allotments, in 
addition to grants for vocational rehabilitation services under 
title I, to assist States in developing collaborative programs 
with appropriate entities to provide supported employment 
services for individuals with the most significant disabilities 
to enable such individuals to achieve the employment outcome of 
supported employment.

[SEC. 622. ALLOTMENTS.

  [(a) In General.--
          [(1) States.--The Secretary shall allot the sums 
        appropriated for each fiscal year to carry out this 
        part among the States on the basis of relative 
        population of each State, except that--
                  [(A) no State shall receive less than 
                $250,000, or \1/3\ of 1 percent of the sums 
                appropriated for the fiscal year for which the 
                allotment is made, whichever is greater; and
                  [(B) if the sums appropriated to carry out 
                this part for the fiscal year exceed by 
                $1,000,000 or more the sums appropriated to 
                carry out this part in fiscal year 1992, no 
                State shall receive less than $300,000, or \1/
                3\ of 1 percent of the sums appropriated for 
                the fiscal year for which the allotment is 
                made, whichever is greater.
          [(2) Certain territories.--
                  [(A) In general.--For the purposes of this 
                subsection, Guam, American Samoa, the United 
                States Virgin Islands, and the Commonwealth of 
                the Northern Mariana Islands shall not be 
                considered to be States.
                  [(B) Allotment.--Each jurisdiction described 
                in subparagraph (A) shall be allotted not less 
                than one-eighth of one percent of the amounts 
                appropriated for the fiscal year for which the 
                allotment is made.
  [(b) Reallotment.--Whenever the Commissioner determines that 
any amount of an allotment to a State for any fiscal year will 
not be expended by such State for carrying out the provisions 
of this part, the Commissioner shall make such amount available 
for carrying out the provisions of this part to one or more of 
the States that the Commissioner determines will be able to use 
additional amounts during such year for carrying out such 
provisions. Any amount made available to a State for any fiscal 
year pursuant to the preceding sentence shall, for the purposes 
of this section, be regarded as an increase in the allotment of 
the State (as determined under the preceding provisions of this 
section) for such year.

[SEC. 623. AVAILABILITY OF SERVICES.

  [Funds provided under this part may be used to provide 
supported employment services to individuals who are eligible 
under this part. Funds provided under this part, or title I, 
may not be used to provide extended services to individuals who 
are eligible under this part or title I.

[SEC. 624. ELIGIBILITY.

  [An individual shall be eligible under this part to receive 
supported employment services authorized under this Act if--
          [(1) the individual is eligible for vocational 
        rehabilitation services;
          [(2) the individual is determined to be an individual 
        with a most significant disability; and
          [(3) a comprehensive assessment of rehabilitation 
        needs of the individual described in section 7(2)(B), 
        including an evaluation of rehabilitation, career, and 
        job needs, identifies supported employment as the 
        appropriate employment outcome for the individual.

[SEC. 625. STATE PLAN.

  [(a) State Plan Supplements.--To be eligible for an allotment 
under this part, a State shall submit to the Commissioner, as 
part of the State plan under section 101, a State plan 
supplement for providing supported employment services 
authorized under this Act to individuals who are eligible under 
this Act to receive the services. Each State shall make such 
annual revisions in the plan supplement as may be necessary.
  [(b) Contents.--Each such plan supplement shall--
          [(1) designate each designated State agency as the 
        agency to administer the program assisted under this 
        part;
          [(2) summarize the results of the comprehensive, 
        statewide assessment conducted under section 
        101(a)(15)(A)(i), with respect to the rehabilitation 
        needs of individuals with significant disabilities and 
        the need for supported employment services, including 
        needs related to coordination;
          [(3) describe the quality, scope, and extent of 
        supported employment services authorized under this Act 
        to be provided to individuals who are eligible under 
        this Act to receive the services and specify the goals 
        and plans of the State with respect to the distribution 
        of funds received under section 622;
          [(4) demonstrate evidence of the efforts of the 
        designated State agency to identify and make 
        arrangements (including entering into cooperative 
        agreements) with other State agencies and other 
        appropriate entities to assist in the provision of 
        supported employment services;
          [(5) demonstrate evidence of the efforts of the 
        designated State agency to identify and make 
        arrangements (including entering into cooperative 
        agreements) with other public or nonprofit agencies or 
        organizations within the State, employers, natural 
        supports, and other entities with respect to the 
        provision of extended services;
          [(6) provide assurances that--
                  [(A) funds made available under this part 
                will only be used to provide supported 
                employment services authorized under this Act 
                to individuals who are eligible under this part 
                to receive the services;
                  [(B) the comprehensive assessments of 
                individuals with significant disabilities 
                conducted under section 102(b)(1) and funded 
                under title I will include consideration of 
                supported employment as an appropriate 
                employment outcome;
                  [(C) an individualized plan for employment, 
                as required by section 102, will be developed 
                and updated using funds under title I in order 
                to--
                          [(i) specify the supported employment 
                        services to be provided;
                          [(ii) specify the expected extended 
                        services needed; and
                          [(iii) identify the source of 
                        extended services, which may include 
                        natural supports, or to the extent that 
                        it is not possible to identify the 
                        source of extended services at the time 
                        the individualized plan for employment 
                        is developed, a statement describing 
                        the basis for concluding that there is 
                        a reasonable expectation that such 
                        sources will become available;
                  [(D) the State will use funds provided under 
                this part only to supplement, and not supplant, 
                the funds provided under title I, in providing 
                supported employment services specified in the 
                individualized plan for employment;
                  [(E) services provided under an 
                individualized plan for employment will be 
                coordinated with services provided under other 
                individualized plans established under other 
                Federal or State programs;
                  [(F) to the extent jobs skills training is 
                provided, the training will be provided on 
                site; and
                  [(G) supported employment services will 
                include placement in an integrated setting for 
                the maximum number of hours possible based on 
                the unique strengths, resources, priorities, 
                concerns, abilities, capabilities, interests, 
                and informed choice of individuals with the 
                most significant disabilities;
          [(7) provide assurances that the State agencies 
        designated under paragraph (1) will expend not more 
        than 5 percent of the allotment of the State under this 
        part for administrative costs of carrying out this 
        part; and
          [(8) contain such other information and be submitted 
        in such manner as the Commissioner may require.

[SEC. 626. RESTRICTION.

  [Each State agency designated under section 625(b)(1) shall 
collect the information required by section 101(a)(10) 
separately for eligible individuals receiving supported 
employment services under this part and for eligible 
individuals receiving supported employment services under title 
I.

[SEC. 627. SAVINGS PROVISION.

  [(a) Supported Employment Services.--Nothing in this Act 
shall be construed to prohibit a State from providing supported 
employment services in accordance with the State plan submitted 
under section 101 by using funds made available through a State 
allotment under section 110.
  [(b) Postemployment Services.--Nothing in this part shall be 
construed to prohibit a State from providing discrete 
postemployment services in accordance with the State plan 
submitted under section 101 by using funds made available 
through a State allotment under section 110 to an individual 
who is eligible under this part.

[SEC. 628. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
part such sums as may be necessary for each of fiscal years 
1999 through 2003.]

  TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT 
                                 LIVING

          CHAPTER 1--INDIVIDUALS WITH SIGNIFICANT DISABILITIES

PART A--GENERAL PROVISIONS

           *       *       *       *       *       *       *

SEC. 704. STATE PLAN.

  (a) In General.--
          (1) Requirement.--To be eligible to receive financial 
        assistance under this chapter, a State shall submit to 
        the [Commissioner] Director, and obtain approval of, a 
        State plan containing such provisions as the 
        [Commissioner] Director may require, including, at a 
        minimum, the provisions required in this section.

           *       *       *       *       *       *       *

          (4) Date of submission.--The State shall submit the 
        plan to the [Commissioner] Director 90 days before the 
        completion date of the preceding plan. If a State fails 
        to submit such a plan that complies with the 
        requirements of this section, the [Commissioner] 
        Director may withhold financial assistance under this 
        chapter until such time as the State submits such a 
        plan.

           *       *       *       *       *       *       *

  (c) Designation of State Unit.--The plan shall designate the 
designated State unit of such State as the agency that, on 
behalf of the State, shall--
          (1) * * *

           *       *       *       *       *       *       *

          (3) keep such records and afford such access to such 
        records as the [Commissioner] Director finds to be 
        necessary with respect to the programs; and
          (4) submit such additional information or provide 
        such assurances as the [Commissioner] Director may 
        require with respect to the programs.

           *       *       *       *       *       *       *

  (m) Requirements.--The plan shall provide satisfactory 
assurances that all recipients of financial assistance under 
this chapter will--
          (1) * * *

           *       *       *       *       *       *       *

          (4)(A) * * *
          (B) maintain such other records as the [Commissioner] 
        Director determines to be appropriate to facilitate an 
        effective audit;
          (C) afford such access to records maintained under 
        subparagraphs (A) and (B) as the [Commissioner] 
        Director determines to be appropriate; and
          (D) submit such reports with respect to such records 
        as the [Commissioner] Director determines to be 
        appropriate;
          (5) provide access to the [Commissioner] Director and 
        the Comptroller General or any of their duly authorized 
        representatives, for the purpose of conducting audits 
        and examinations, of any books, documents, papers, and 
        records of the recipients that are pertinent to the 
        financial assistance received under this chapter; and

           *       *       *       *       *       *       *

SEC. 705. STATEWIDE INDEPENDENT LIVING COUNCIL.

  (a) * * *
  (b) Composition and Appointment.--
          (1) * * *

           *       *       *       *       *       *       *

          [(5) Chairperson.--
                  [(A) In general.--Except as provided in 
                subparagraph (B), the Council shall select a 
                chairperson from among the voting membership of 
                the Council.
                  [(B) Designation by chief executive 
                officer.--In States in which the Governor does 
                not have veto power pursuant to State law, the 
                appointing authority described in paragraph (3) 
                shall designate a voting member of the Council 
                to serve as the chairperson of the Council or 
                shall require the Council to so designate such 
                a voting member.]
          (5) Chairperson.--The Council shall select a 
        chairperson from among the voting membership of the 
        Council.

           *       *       *       *       *       *       *

  (c) Duties.--The Council shall--
          (1) * * *

           *       *       *       *       *       *       *

          (5) submit to the [Commissioner] Director such 
        periodic reports as the [Commissioner] Director may 
        reasonably request, and keep such records, and afford 
        such access to such records, as the [Commissioner] 
        Director finds necessary to verify such reports.

           *       *       *       *       *       *       *

SEC. 706. RESPONSIBILITIES OF THE [COMMISSIONER] DIRECTOR.

  (a) Approval of State Plans.--
          (1) In general.--The [Commissioner] Director shall 
        approve any State plan submitted under section 704 that 
        the [Commissioner] Director determines meets the 
        requirements of section 704, and shall disapprove any 
        such plan that does not meet such requirements, as soon 
        as practicable after receiving the plan. Prior to such 
        disapproval, the [Commissioner] Director shall notify 
        the State of the intention to disapprove the plan, and 
        shall afford such State reasonable notice and 
        opportunity for a hearing.
          (2) Procedures.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the provisions of subsections 
                (c) and (d) of section 107 shall apply to any 
                State plan submitted to the [Commissioner] 
                Director under section 704.
                  (B) Application.--For purposes of the 
                application described in subparagraph (A), all 
                references in such provisions--
                          (i) to the Secretary shall be deemed 
                        to be references to the [Commissioner] 
                        Director; and

           *       *       *       *       *       *       *

  (b) Indicators.--Not later than October 1, 1993, the 
[Commissioner] Director shall develop and publish in the 
Federal Register indicators of minimum compliance consistent 
with the standards set forth in section 725.
  (c) Onsite Compliance Reviews.--
          (1) Reviews.--The [Commissioner] Director shall 
        annually conduct onsite compliance reviews of at least 
        15 percent of the centers for independent living that 
        receive funds under section 722 and shall periodically 
        conduct such a review of each such center. The 
        [Commissioner] Director shall annually conduct onsite 
        compliance reviews of at least one-third of the 
        designated State units that receive funding under 
        section 723, and, to the extent necessary to determine 
        the compliance of such a State unit with subsections 
        (f) and (g) of section 723, centers that receive 
        funding under section 723 in such State. The 
        [Commissioner] Director shall select the centers and 
        State units described in this paragraph for review on a 
        random basis.
          (2) Qualifications of employees conducting reviews.--
        The [Commissioner] Director shall--
                  (A) * * *

           *       *       *       *       *       *       *

  (d) Reports.--The [Commissioner] Director shall include, in 
the annual report required under section 13, information on the 
extent to which centers for independent living receiving funds 
under part C have complied with the standards and assurances 
set forth in section 725. The [Commissioner] Director may 
identify individual centers for independent living in the 
analysis. The [Commissioner] Director shall report the results 
of onsite compliance reviews, identifying individual centers 
for independent living and other recipients of assistance under 
this chapter.

                  PART B--INDEPENDENT LIVING SERVICES

SEC. 711. ALLOTMENTS.

  (a) In General.--
          (1) States.--
                  (A) Population basis.--Except as provided in 
                subparagraphs (B) and (C), from sums 
                appropriated for each fiscal year to carry out 
                this part, the [Commissioner] Director shall 
                make an allotment to each State whose State 
                plan has been approved under section 706 of an 
                amount bearing the same ratio to such sums as 
                the population of the State bears to the 
                population of all States.

           *       *       *       *       *       *       *

          (3) Adjustment for inflation.--For any fiscal year, 
        beginning in fiscal year 1999, in which the total 
        amount appropriated to carry out this part exceeds the 
        total amount appropriated to carry out this part for 
        the preceding fiscal year, the [Commissioner] Director 
        shall increase the minimum allotment under paragraph 
        (1)(C) by a percentage that shall not exceed the 
        percentage increase in the total amount appropriated to 
        carry out this part between the preceding fiscal year 
        and the fiscal year involved.
  (b) Proportional Reduction.--To provide allotments to States 
in accordance with subsection (a)(1)(B), to provide minimum 
allotments to States (as increased under subsection (a)(3)) 
under subsection (a)(1)(C), or to provide minimum allotments to 
States under subsection (a)(2)(B), the [Commissioner] Director 
shall proportionately reduce the allotments of the remaining 
States under subsection (a)(1)(A), with such adjustments as may 
be necessary to prevent the allotment of any such remaining 
State from being reduced to less than the amount required by 
subsection (a)(1)(B).
  (c) Reallotment.--Whenever the [Commissioner] Director 
determines that any amount of an allotment to a State for any 
fiscal year will not be expended by such State in carrying out 
the provisions of this part, the [Commissioner] Director shall 
make such amount available for carrying out the provisions of 
this part to one or more of the States that the [Commissioner] 
Director determines will be able to use additional amounts 
during such year for carrying out such provisions. Any amount 
made available to a State for any fiscal year pursuant to the 
preceding sentence shall, for the purposes of this section, be 
regarded as an increase in the allotment of the State (as 
determined under the preceding provisions of this section) for 
such year.

SEC. 712. PAYMENTS TO STATES FROM ALLOTMENTS.

  (a) Payments.--From the allotment of each State for a fiscal 
year under section 711, the State shall be paid the Federal 
share of the expenditures incurred during such year under its 
State plan approved under section 706. Such payments may be 
made (after necessary adjustments on account of previously made 
overpayments or underpayments) in advance or by way of 
reimbursement, and in such installments and on such conditions 
as the [Commissioner] Director may determine.

           *       *       *       *       *       *       *

SEC. 714. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
part [such sums as may be necessary for each of the fiscal 
years 1999 through 2003] $23,359,000 for fiscal year 2013 and 
each of the 5 succeeding fiscal years.

                 PART C--CENTERS FOR INDEPENDENT LIVING

SEC. 721. PROGRAM AUTHORIZATION.

  (a) In General.--From the funds appropriated for fiscal year 
1999 and for each subsequent fiscal year to carry out this 
part, the [Commissioner] Director shall allot such sums as may 
be necessary to States and other entities in accordance with 
subsections (b) through (d).
  (b) Training.--
          (1) Grants; contracts; other arrangements.--For any 
        fiscal year in which the funds appropriated to carry 
        out this part exceed the funds appropriated to carry 
        out this part for fiscal year 1993, the [Commissioner] 
        Director shall first reserve from such excess, to 
        provide training and technical assistance to eligible 
        agencies, centers for independent living, and Statewide 
        Independent Living Councils for such fiscal year, not 
        less than 1.8 percent, and not more than 2 percent, of 
        the funds appropriated to carry out this part for the 
        fiscal year involved.
          (2) Allocation.--From the funds reserved under 
        paragraph (1), the [Commissioner] Director shall make 
        grants to, and enter into contracts and other 
        arrangements with, entities that have experience in the 
        operation of centers for independent living to provide 
        such training and technical assistance with respect to 
        planning, developing, conducting, administering, and 
        evaluating centers for independent living.
          (3) Funding priorities.--The [Commissioner] Director 
        shall conduct a survey of Statewide Independent Living 
        Councils and centers for independent living regarding 
        training and technical assistance needs in order to 
        determine funding priorities for such grants, 
        contracts, and other arrangements.
          (4) Review.--To be eligible to receive a grant or 
        enter into a contract or other arrangement under this 
        subsection, such an entity shall submit an application 
        to the [Commissioner] Director at such time, in such 
        manner, and containing a proposal to provide such 
        training and technical assistance, and containing such 
        additional information as the [Commissioner] Director 
        may require. The [Commissioner] Director shall provide 
        for peer review of grant applications by panels that 
        include persons who are not government employees and 
        who have experience in the operation of centers for 
        independent living.
          (5) Prohibition on combined funds.--No funds reserved 
        by the [Commissioner] Director under this subsection 
        may be combined with funds appropriated under any other 
        Act or part of this Act if the purpose of combining 
        funds is to make a single discretionary grant or a 
        single discretionary payment, unless such funds 
        appropriated under this chapter are separately 
        identified in such grant or payment and are used for 
        the purposes of this chapter.
  (c) In General.--
          (1) States.--
                  (A) Population basis.--After the reservation 
                required by subsection (b) has been made, and 
                except as provided in subparagraphs (B) and 
                (C), from the remainder of the amounts 
                appropriated for each such fiscal year to carry 
                out this part, the [Commissioner] Director 
                shall make an allotment to each State whose 
                State plan has been approved under section 706 
                of an amount bearing the same ratio to such 
                remainder as the population of the State bears 
                to the population of all States.

           *       *       *       *       *       *       *

          (3) Adjustment for inflation.--For any fiscal year, 
        beginning in fiscal year 1999, in which the total 
        amount appropriated to carry out this part exceeds the 
        total amount appropriated to carry out this part for 
        the preceding fiscal year, the [Commissioner] Director 
        shall increase the minimum allotment under paragraph 
        (1)(C) by a percentage that shall not exceed the 
        percentage increase in the total amount appropriated to 
        carry out this part between the preceding fiscal year 
        and the fiscal year involved.
          (4) Proportional reduction.--To provide allotments to 
        States in accordance with paragraph (1)(B), to provide 
        minimum allotments to States (as increased under 
        paragraph (3)) under paragraph (1)(C), or to provide 
        minimum allotments to States under paragraph (2)(B), 
        the [Commissioner] Director shall proportionately 
        reduce the allotments of the remaining States under 
        paragraph (1)(A), with such adjustments as may be 
        necessary to prevent the allotment of any such 
        remaining State from being reduced to less than the 
        amount required by paragraph (1)(B).
  (d) Reallotment.--Whenever the [Commissioner] Director 
determines that any amount of an allotment to a State for any 
fiscal year will not be expended by such State for carrying out 
the provisions of this part, the [Commissioner] Director shall 
make such amount available for carrying out the provisions of 
this part to one or more of the States that the [Commissioner] 
Director determines will be able to use additional amounts 
during such year for carrying out such provisions. Any amount 
made available to a State for any fiscal year pursuant to the 
preceding sentence shall, for the purposes of this section, be 
regarded as an increase in the allotment of the State (as 
determined under the preceding provisions of this section) for 
such year.

SEC. 722. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH 
                    FEDERAL FUNDING EXCEEDS STATE FUNDING.

  (a) Establishment.--
          (1) In general.--Unless the director of a designated 
        State unit awards grants under section 723 to eligible 
        agencies in a State for a fiscal year, the 
        [Commissioner] Director shall award grants under this 
        section to such eligible agencies for such fiscal year 
        from the amount of funds allotted to the State under 
        subsection (c) or (d) of section 721 for such year.
          (2) Grants.--The [Commissioner] Director shall award 
        such grants, from the amount of funds so allotted, to 
        such eligible agencies for the planning, conduct, 
        administration, and evaluation of centers for 
        independent living that comply with the standards and 
        assurances set forth in section 725.
  (b) Eligible Agencies.--In any State in which the 
[Commissioner] Director has approved the State plan required by 
section 704, the [Commissioner] Director may make a grant under 
this section to any eligible agency that--
          (1) * * *
          (2) is determined by the [Commissioner] Director to 
        be able to plan, conduct, administer, and evaluate a 
        center for independent living consistent with the 
        standards and assurances set forth in section 725; and
          (3) submits an application to the [Commissioner] 
        Director at such time, in such manner, and containing 
        such information as the [Commissioner] Director may 
        require.
  (c) Existing Eligible Agencies.--In the administration of the 
provisions of this section, the [Commissioner] Director shall 
award grants to any eligible agency that has been awarded a 
grant under this part by September 30, 1997, unless the 
[Commissioner] Director makes a finding that the agency 
involved fails to meet program and fiscal standards and 
assurances set forth in section 725.
  (d) New Centers for Independent Living.--
          (1) In general.--If there is no center for 
        independent living serving a region of the State or a 
        region is underserved, and the increase in the 
        allotment of the State is sufficient to support an 
        additional center for independent living in the State, 
        the [Commissioner] Director may award a grant under 
        this section to the most qualified applicant proposing 
        to serve such region, consistent with the provisions in 
        the State plan setting forth the design of the State 
        for establishing a statewide network of centers for 
        independent living.
          (2) Selection.--In selecting from among applicants 
        for a grant under this section for a new center for 
        independent living, the [Commissioner] Director--
                  (A) * * *

           *       *       *       *       *       *       *

  (e) Order of Priorities.--The [Commissioner] Director shall 
be guided by the following order of priorities in allocating 
funds among centers for independent living within a State, to 
the extent funds are available:
          (1) The [Commissioner] Director shall support 
        existing centers for independent living, as described 
        in subsection (c), that comply with the standards and 
        assurances set forth in section 725, at the level of 
        funding for the previous year.
          (2) The [Commissioner] Director shall provide for a 
        cost-of-living increase for such existing centers for 
        independent living.
          (3) The [Commissioner] Director shall fund new 
        centers for independent living, as described in 
        subsection (d), that comply with the standards and 
        assurances set forth in section 725.

           *       *       *       *       *       *       *

  (g) Review.--
          (1) In general.--The [Commissioner] Director shall 
        periodically review each center receiving funds under 
        this section to determine whether such center is in 
        compliance with the standards and assurances set forth 
        in section 725. If the [Commissioner] Director 
        determines that any center receiving funds under this 
        section is not in compliance with the standards and 
        assurances set forth in section 725, the [Commissioner] 
        Director shall immediately notify such center that it 
        is out of compliance.
          (2) Enforcement.--The [Commissioner] Director shall 
        terminate all funds under this section to such center 
        90 days after the date of such notification unless the 
        center submits a plan to achieve compliance within 90 
        days of such notification and such plan is approved by 
        the [Commissioner] Director.

SEC. 723. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH 
                    STATE FUNDING EQUALS OR EXCEEDS FEDERAL FUNDING.

  (a) Establishment.--
          (1) In general.--
                  (A) Initial year.--
                          (i) Determination.--The director of a 
                        designated State unit, as provided in 
                        paragraph (2), or the [Commissioner] 
                        Director, as provided in paragraph (3), 
                        shall award grants under this section 
                        for an initial fiscal year if the 
                        [Commissioner] Director determines that 
                        the amount of State funds that were 
                        earmarked by a State for a preceding 
                        fiscal year to support the general 
                        operation of centers for independent 
                        living meeting the requirements of this 
                        part equaled or exceeded the amount of 
                        funds allotted to the State under 
                        subsection (c) or (d) of section 721 
                        for such year.
                          (ii) Grants.--The director or the 
                        [Commissioner] Director, as 
                        appropriate, shall award such grants, 
                        from the amount of funds so allotted 
                        for the initial fiscal year, to 
                        eligible agencies in the State for the 
                        planning, conduct, administration, and 
                        evaluation of centers for independent 
                        living that comply with the standards 
                        and assurances set forth in section 
                        725.
                          (iii) Regulation.--The [Commissioner] 
                        Director shall by regulation specify 
                        the preceding fiscal year with respect 
                        to which the [Commissioner] Director 
                        will make the determinations described 
                        in clause (i) and subparagraph (B), 
                        making such adjustments as may be 
                        necessary to accommodate State funding 
                        cycles such as 2-year funding cycles or 
                        State fiscal years that do not coincide 
                        with the Federal fiscal year.
                  (B) Subsequent years.--For each year 
                subsequent to the initial fiscal year described 
                in subparagraph (A), the director of the 
                designated State unit shall continue to have 
                the authority to award such grants under this 
                section if the [Commissioner] Director 
                determines that the State continues to earmark 
                the amount of State funds described in 
                subparagraph (A)(i). If the State does not 
                continue to earmark such an amount for a fiscal 
                year, the State shall be ineligible to make 
                grants under this section after a final year 
                following such fiscal year, as defined in 
                accordance with regulations established by the 
                [Commissioner] Director, and for each 
                subsequent fiscal year.
          (2) Grants by designated state units.--In order for 
        the designated State unit to be eligible to award the 
        grants described in paragraph (1) and carry out this 
        section for a fiscal year with respect to a State, the 
        designated State agency shall submit an application to 
        the [Commissioner] Director at such time, and in such 
        manner as the [Commissioner] Director may require, 
        including information about the amount of State funds 
        described in paragraph (1) for the preceding fiscal 
        year. If the [Commissioner] Director makes a 
        determination described in subparagraph (A)(i) or (B), 
        as appropriate, of paragraph (1), the [Commissioner] 
        Director shall approve the application and designate 
        the director of the designated State unit to award the 
        grant and carry out this section.
          (3) Grants by [commissioner] director.--If the 
        designated State agency of a State described in 
        paragraph (1) does not submit and obtain approval of an 
        application under paragraph (2), the [Commissioner] 
        Director shall award the grant described in paragraph 
        (1) to eligible agencies in the State in accordance 
        with section 722.
  (b) Eligible Agencies.--In any State in which the 
[Commissioner] Director has approved the State plan required by 
section 704, the director of the designated State unit may 
award a grant under this section to any eligible agency that--
          (1) * * *

           *       *       *       *       *       *       *

  (g) Review.--
          (1) * * *
          (2) Enforcement.--The director of the designated 
        State unit shall terminate all funds under this section 
        to such center 90 days after--
                  (A) * * *

           *       *       *       *       *       *       *

        unless the center submits a plan to achieve compliance 
        within 90 days and such plan is approved by the 
        director, or if appealed, by the [Commissioner] 
        Director.
  (h) Onsite Compliance Review.--The director of the designated 
State unit shall annually conduct onsite compliance reviews of 
at least 15 percent of the centers for independent living that 
receive funding under this section in the State. Each team that 
conducts onsite compliance review of centers for independent 
living shall include at least one person who is not an employee 
of the designated State agency, who has experience in the 
operation of centers for independent living, and who is jointly 
selected by the director of the designated State unit and the 
chairperson of or other individual designated by the Council 
acting on behalf of and at the direction of the Council. A copy 
of this review shall be provided to the [Commissioner] 
Director.
  (i) Adverse Actions.--If the director of the designated State 
unit proposes to take a significant adverse action against a 
center for independent living, the center may seek mediation 
and conciliation to be provided by an individual or individuals 
who are free of conflicts of interest identified by the 
chairperson of or other individual designated by the Council. 
If the issue is not resolved through the mediation and 
conciliation, the center may appeal the proposed adverse action 
to the [Commissioner] Director for a final decision.

SEC. 724. CENTERS OPERATED BY STATE AGENCIES.

  A State that receives assistance for fiscal year 1993 with 
respect to a center in accordance with subsection (a) of this 
section (as in effect on the day before the date of enactment 
of the Rehabilitation Act Amendments of 1998) may continue to 
receive assistance under this part for fiscal year 1994 or a 
succeeding fiscal year if, for such fiscal year--
          (1) no nonprofit private agency--
                  (A) submits an acceptable application to 
                operate a center for independent living for the 
                fiscal year before a date specified by the 
                [Commissioner] Director; and

           *       *       *       *       *       *       *

          (2) after funding all applications so submitted and 
        approved, the [Commissioner] Director determines that 
        funds remain available to provide such assistance.

SEC. 725. STANDARDS AND ASSURANCES FOR CENTERS FOR INDEPENDENT LIVING.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Assurances.--The eligible agency shall provide at such 
time and in such manner as the [Commissioner] Director may 
require, such satisfactory assurances as the [Commissioner] 
Director may require, including satisfactory assurances that--
          (1) * * *

           *       *       *       *       *       *       *

          (13) the center will prepare and submit a report to 
        the designated State unit or the [Commissioner] 
        Director, as the case may be, at the end of each fiscal 
        year that contains the information described in 
        paragraph (8) and information regarding the extent to 
        which the center is in compliance with the standards 
        set forth in subsection (b); and

           *       *       *       *       *       *       *

SEC. 727. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
part [such sums as may be necessary for each of the fiscal 
years 1999 through 2003] $79,953,000 for fiscal year 2013 and 
each of the 5 succeeding fiscal years.

 CHAPTER 2--INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE 
BLIND

           *       *       *       *       *       *       *

SEC. 752. PROGRAM OF GRANTS.

  (a) In General.--
          (1) Authority for grants.--Subject to subsections (b) 
        and (c), the [Commissioner] Director may make grants to 
        States for the purpose of providing the services 
        described in subsection (d) to older individuals who 
        are blind.
          (2) Designated state agency.--The [Commissioner] 
        Director may not make a grant under subsection (a) 
        unless the State involved agrees that the grant will be 
        administered solely by the agency described in section 
        101(a)(2)(A)(i).

           *       *       *       *       *       *       *

  (c) Contingent Formula Grants.--
          (1) * * *
          (2) Allotments.--For grants under subsection (a) for 
        a fiscal year described in paragraph (1), the 
        [Commissioner] Director shall make an allotment to each 
        State in an amount determined in accordance with 
        subsection (j), and shall make a grant to the State of 
        the allotment made for the State if the State submits 
        to the [Commissioner] Director an application in 
        accordance with subsection (i).
  (d) Services Generally.--The [Commissioner] Director may not 
make a grant under subsection (a) unless the State involved 
agrees that the grant will be expended only for purposes of--
          (1) * * *

           *       *       *       *       *       *       *

  (f) Matching Funds.--
          (1) In general.--The [Commissioner] Director may not 
        make a grant under subsection (a) unless the State 
        involved agrees, with respect to the costs of the 
        program to be carried out by the State pursuant to such 
        subsection, to make available (directly or through 
        donations from public or private entities) non-Federal 
        contributions toward such costs in an amount that is 
        not less than $1 for each $9 of Federal funds provided 
        in the grant.

           *       *       *       *       *       *       *

  (h) Requirement Regarding State Plan.--The [Commissioner] 
Director may not make a grant under subsection (a) unless the 
State involved agrees that, in carrying out subsection (d)(1), 
the State will seek to incorporate into the State plan under 
section 704 any new methods and approaches relating to 
independent living services for older individuals who are 
blind.
  (i) Application for Grant.--
          (1) In general.--The [Commissioner] Director may not 
        make a grant under subsection (a) unless an application 
        for the grant is submitted to the [Commissioner] 
        Director and the application is in such form, is made 
        in such manner, and contains such agreements, 
        assurances, and information as the [Commissioner] 
        Director determines to be necessary to carry out this 
        section (including agreements, assurances, and 
        information with respect to any grants under subsection 
        (j)(4)).
          (2) Contents.--An application for a grant under this 
        section shall contain--
                  (A) an assurance that the agency described in 
                subsection (a)(2) will prepare and submit to 
                the [Commissioner] Director a report, at the 
                end of each fiscal year, with respect to each 
                project or program the agency operates or 
                administers under this section, whether 
                directly or through a grant or contract, which 
                report shall contain, at a minimum, information 
                on--
                          (i) * * *

           *       *       *       *       *       *       *

  (j) Amount of Formula Grant.--
          (1) * * *

           *       *       *       *       *       *       *

          (4) Disposition of certain amounts.--
                  (A) Grants.--From the amounts specified in 
                subparagraph (B), the [Commissioner] Director 
                may make grants to States whose population of 
                older individuals who are blind has a 
                substantial need for the services specified in 
                subsection (d) relative to the populations in 
                other States of older individuals who are 
                blind.
                  (B) Amounts.--The amounts referred to in 
                subparagraph (A) are any amounts that are not 
                paid to States under subsection (a) as a result 
                of--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) any State informing the 
                        [Commissioner] Director that the State 
                        does not intend to expend the full 
                        amount of the allotment made for the 
                        State under subsection (a).
                  (C) Conditions.--The [Commissioner] Director 
                may not make a grant under subparagraph (A) 
                unless the State involved agrees that the grant 
                is subject to the same conditions as grants 
                made under subsection (a).

SEC. 753. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
chapter [such sums as may be necessary for each of the fiscal 
years 1999 through 2003] $34,018,000 for fiscal year 2013 and 
each of the 5 succeeding fiscal years.

           *       *       *       *       *       *       *

                             MINORITY VIEWS

                              INTRODUCTION

    Reauthorization of the Workforce Investment Act (WIA) is an 
opportunity to address some of the significant challenges of 
the 21st century economy, including how to educate and train 
America's diverse workforce with the skills required to compete 
in a global market. Any reauthorization should promote 
innovation, expand knowledge of what works in the workforce 
system, build on its strengths, and address its challenges. 
Regrettably, the Republican proposal, H.R. 4297, leaves today's 
workers and employers with obsolete training ideas of the past 
and insufficient accountability going forward over the use of 
limited taxpayer resources.
    Since the start of the 112th Congress, the Committee has 
held a series of hearings to examine and address the continued 
challenges facing our workforce investment system. Despite 
valuable testimony from dozens of witnesses, representing a 
broad range of experts and practitioners who know how to run 
successful training and reemployment programs, the Republican 
approach to rewriting WIA walks away from our federal 
responsibility to create and sustain a highly-skilled 
workforce, especially for our most disadvantaged workers. H.R. 
4297 fails to ensure equitable access to important services and 
fails to adequately respond to the economic challenges 
Americans face.
    The Committee had an opportunity to work together and draft 
bipartisan legislation that would both reduce unemployment and 
improve our country's global competitiveness. Both Democratic 
and Republican governors have come before this committee 
imploring Congress to work together to move the economy 
forward. Economists from across the political spectrum, 
including Republican advisors Bruce Bartlett and Mark Zandi, 
have argued for the same. Unfortunately, H.R. 4297 does not put 
us on a path to bipartisanship; it places ideological positions 
over practical solutions. The Republican approach to 
reauthorize WIA does not rise to meet the challenges our 
economy faces and, for that reason, we opposed Committee 
passage of this legislation.

       21ST CENTURY SKILLS STRATEGY INTEGRAL TO ECONOMIC RECOVERY

    When the bipartisan Workforce Investment Act was signed 
into law in 1998, the unemployment rate was 4.5 percent.\1\ 
More than a decade later, the economy has changed, as has the 
composition of the workforce, including through greater 
participation by older workers, people of color, women with 
children, persons with disabilities, and other groups with 
relatively low historic labor force participation.\2\ And while 
African American, Latinos and other minority groups continue to 
comprise a growing share of the U.S. labor force, aggregate 
numbers show that as a whole, these populations have exhibited 
poorer labor market outcomes when compared to other American 
workers.
---------------------------------------------------------------------------
    \1\Bureau of Labor Statistics, United States Department of Labor. 
(2012). Unemployment Rate--Civilian Labor Force--LNS14000000 [Data 
File]. Retrieved from http://data.bls.gov/cgi-bin/surveymost?ln.
    \2\Karoly, L.A., Panis, C.W.A. (2004). The 21st Century at Work: 
Forces Shaping the Future Workforce and Workplace in the United States. 
Retrieved from http://www.rand.org/pubs/monographs/2004/RAND_ 
MG164.pdf.
---------------------------------------------------------------------------
    By 2007, our nation's financial and housing markets 
suffered significant losses and the U.S. economy entered into 
an 18-month recession that officially ended in June 2009.\3\ 
During that time, more than 8 million jobs were lost.\4\
---------------------------------------------------------------------------
    \3\National Bureau of Economic Research. (2012). U.S. Business 
Cycle Expansions and Contractions. Retrieved from http://www.nber.org/
cycles.html.
    \4\Economic Policy Institute. (2012). The State of Working America, 
The Great Recession. Retrieved from http://stateofworkingamerica.org/
great-recession/.
---------------------------------------------------------------------------
    Aggressive stimulus measures were taken by the Obama 
Administration in 2009. Since then, the unemployment rate has 
dropped nearly two percentage points since it peaked at 10 
percent, adding roughly 4.4 million jobs in the last 28 
months.\5\ While the economy is recovering, more than 40 
percent of the nearly 13 million unemployed have been seeking 
employment for at least 6 months or more.\6\ Communities of 
color and disadvantaged workers including youth, low-income 
adults, people with disabilities and disadvantaged workers 
generally have been disproportionately affected by this 
recession. The June 2012 unemployment rates for African 
Americans, Latinos, and young people were 14.4 percent, 11.0 
percent, and 23.7 percent respectively compared to 7.4 percent 
among Whites.\7\ Among adults with less than a high school 
diploma, the unemployment rate is nearly 13 percent compared to 
4.1 percent for those with a bachelor's degree and higher. 
Unemployment remains at more than 13 percent for people with 
disabilities in contrast to those without a disability at 8.2 
percent.\8\
---------------------------------------------------------------------------
    \5\Center for Budget and Policy Priorities. (2012). Special Series: 
Economic Recovery Watch, Private Payroll Employment Has Grown For 28 
months. Retrieved from http://www.cbpp.org/cms/
index.cfm?fa=view&id=3252.
    \6\Bureau of Labor Statistics, United States Department of Labor. 
(2012). The Employment Situation--June 2012. Retrieved from http://
www.bls.gov/news.release/empsit.nr0.htm.
    \7\Ibid.
    \8\Ibid.
---------------------------------------------------------------------------
    More needs to be done to create additional jobs. Yet, a 
reported 3.4 million jobs remain unfilled.\9\ The majority of 
these available jobs are in growing industries such as health 
care, which has risen by 340,000 over the year.\10\ The 
industry sectors experiencing growth demand different skills 
than the sectors that have been shedding jobs, creating a 
skills mismatch between the unemployed and available jobs. Even 
though the bulk of the evidence points to the rise in the 
unemployment rate since 2007 as more cyclical than structural, 
the structural component still represents millions of workers 
without jobs.\11\ In other words, cyclical unemployment can 
evolve into structural unemployment. Not only must we do more 
to create good jobs, it is equally important to bring a wide 
range of people through a diversity of pathways into the 
skilled labor market.
---------------------------------------------------------------------------
    \9\Bureau of Labor Statistics, United States Department of Labor. 
(2012). Job Openings and Labor Turnover Survey Highlights April 2012. 
Retrieved from http://www.bls.gov/web/jolts/jlt_labstatgraphs.pdf.
    \10\Bureau of Labor Statistics, United States Department of Labor. 
(2012). The Employment Situation--June 2012. Retrieved from http://
www.bls.gov/news.release/empsit.nr0.htm.
    \11\Levine, L. (2012, April). The Increase in Unemployment Since 
2007: Is It Cyclical or Structural? (CRS Report No. R41785).
---------------------------------------------------------------------------
    A sustainable growth strategy should aim to create new jobs 
while increasing the supply of highly qualified workers who can 
meet emerging industry demands. The Republican plan 
accomplishes neither goal. Committee Democrats have repeatedly 
offered proposals to create good jobs now and have pressed for 
a reauthorization that extends opportunity to all Americans and 
aims to close the mismatch between employers' skills demand and 
workers' skills supply. But rather than working together on 
bipartisan solutions to support a stronger economic recovery, 
the Majority has failed to act on job creation measures and 
advanced H.R. 4297, a bill that threatens to widen the American 
skills gap.

                ONE-SIZE WORKFORCE FUND DOES NOT FIT ALL

    Committee Republicans claim their approach builds on the 
work of some state workforce systems, including Utah, which 
among its policy recommendations for WIA reauthorization 
charges that ``[n]ot all training is the same''.\12\ But H.R. 
4297 overlooks the demographic and economic factors such as 
age, English language proficiency, and participation in other 
assistance programs that may significantly impact how training 
should vary to help individuals successfully obtain employment 
and career advancement. Far too many of our nation's job 
seekers experience barriers to employment that make entering 
and advancing in the labor market challenging.
---------------------------------------------------------------------------
    \12\Krantz, J. and Mayne, C. (2011). Is Job Training Justified? An 
Analysis of Job Training Services as Administered by Utah's Department 
of Workforce Services. Salt Lake City, Utah: Utah Department of 
Workforce Services.
---------------------------------------------------------------------------
    Under the guise of reducing duplication, H.R. 4297 combines 
more than two dozen programs into a single Workforce Investment 
Fund (WIF). Under this approach, Committee Republicans 
effectively eliminate, consolidate and cede completely to 
Governors, individual programs designed to serve returning 
veterans, low-income adults, disadvantaged youth, migrant and 
seasonal farmworkers, those with fewer skills and education, 
people with disabilities, chronically unemployed and people of 
color who are disproportionately reflected in unemployment 
figures that are far higher than national averages.
    In addition, H.R. 4297 repeals: Advisory Committees, 
Workforce Flexibility Plans, WIA Incentive Grants, Grants for 
Job Training for Employment in High Growth Industries, the 
Youth Conservation Corps Act of 1970, Grants for Workplace and 
Community Transition Training for Incarcerated Individuals, 
Section 412 of the Immigration and Nationality Act, Section 501 
of the Refugee Education Assistance Act of 1980, Section 231 of 
the Second Chance Act, and the Women in Apprenticeship and 
Nontraditional Occupations, among other programs.
    The bill also includes a form of super-waiver that allows 
Governors to consolidate additional funds from other training-
related programs covered in a unified plan, including Adult 
Education, Temporary Assistance for Needy Families (TANF), 
Trade Adjustment Assistance (TAA) and the Community Services 
Block Grant into the newly created Workforce Investment Fund.
    Further, H.R. 4297 disregards the importance of local 
decision-making by allowing state boards to designate local 
areas. While State Workforce Investment Boards (WIB) must 
consult with the governor to determine economic boundaries, 
they do not have to check with their local boards. H.R. 4297 
fails to maintain the critical balance between states and local 
areas. Committee Democrats believe that it is imperative that 
there be a collaborative process between the states and local 
areas to designate workforce areas. A hallmark of the Workforce 
Investment Act is its emphasis on flexibility for states and 
local areas to innovate and be responsive to local economic 
conditions. The Republican bill ignores the differences between 
local and regional economies by rerouting workforce decisions 
to the state level without sufficient local area involvement.
    The Majority noted a 2011 Government Accountability Office 
(GAO) report that found overlap amongst many federal education 
programs. Committee Democrats support better coordination of 
programs. However, the Majority's approach to merely reducing 
the total number of programs for the sake of reducing the 
number of programs will not improve program efficiency. 
Moreover, merely shifting management responsibilities and 
administrative costs from the federal government to each of the 
fifty states and thousands of local governments will unlikely 
increase effectiveness or reduce administrative and other 
costs. Essentially, the bill consolidates two dozen programs 
and replaces them with fifty different state-level programs.
    Simply combining funding streams does not guarantee that 
workers or businesses will be any better served if those 
investments are not guided by the effective practices developed 
by the workforce field over the past 15 years and measured to 
ensure accountability. Instead, the adoption of a broad 
consolidation under H.R. 4297 puts employment opportunities and 
training services at risk for large, vulnerable segments of our 
workforce. Moreover, H.R. 4297 does not go far enough to ensure 
states adopt documented, effective practices. Under current 
law, many states have already implemented effective strategies, 
including career pathways systems that bring a wide range of 
people into the skilled labor market through strategic 
partnerships. Rather than promote continuous innovation, the 
bill eliminates key policy provisions that support the 
development of career pathways and other innovative approaches. 
Without minimum standards and accountability, Governors will 
serve favored groups and those easiest to serve. The Republican 
bill erodes the ability of American families to remain in or 
move into the middle class and stifles our nation's economic 
competitiveness.

THE WORKFORCE INVESTMENT ACT OF 2012 (H.R. 4227)--DEMOCRATIC SUBSTITUTE 
                               AMENDMENT

    Committee Democrats offered the Workforce Investment Act of 
2012 (H.R. 4227) as a substitute amendment to the Republican 
bill. Led by Representatives Tierney and Hinojosa, the 
Democratic alternative updates the current workforce investment 
system by strengthening accountability measures, streamlining 
existing programs, and creating new initiatives for innovative 
practices. The Democratic alternative reflects a commitment to 
employment opportunities for all workers and a commitment to 
the career advancement of our nation's most vulnerable and 
disadvantaged jobseekers.
    Among other provisions, the substitute amendment would 
streamline and coordinate the operation of job training, adult 
education, and postsecondary education programs through unified 
planning. The bill would improve cross-program alignment 
through flexible implementation of career pathways strategies 
and initiatives that offer career advancement to all workers, 
as well as increase engagement with employers on a regional and 
sectoral basis where appropriate.
    The substitute amendment would ensure all Americans have 
access to high-quality services, including individuals with the 
most significant barriers to employment, by establishing a 
common One-Stop delivery identifier and co-locating Employment 
Services and the One-Stop Center offices. It would also improve 
accountability by establishing common reporting and performance 
measures across all job training, adult education, Wagner-
Peyser, and Vocational Rehabilitation programs.
    In addition, the substitute amendment would promote the 
search for successful practices across programs, continuous 
innovation, and adoption of the most effective approaches. 
Under a new Workforce Innovation Fund, the bill would support 
the exploration of new or promising service models and rigorous 
evaluation to identify successful strategies.
    Recognizing budget realities, provisions in this substitute 
amendment also promote partnerships like those that fully 
engage community colleges, so local areas can 
leverageresources, respond more effectively to economic challenges, and 
meet future industry needs. Of particular note, the substitute 
amendment would establish an authorization of the $8 billion Community 
College to Career Fund as proposed by President Obama to expand 
capacity to train workers in high-growth industries, such as health 
care, transportation, and advanced manufacturing.
    Unlike H.R. 4297, Committee Democrats believe that a WIA 
reauthorization bill must expand opportunities for all workers, 
help businesses staff high-skilled and other open positions, 
and assure that tax-payer dollars are spent wisely, efficiently 
and effectively. Committee Republicans rejected the Democratic 
alternative by a vote of 15-23.

       WIA SHOULD PROVIDE CAREER OPPORTUNITIES FOR ALL AMERICANS

    Beyond the programs H.R. 4297 would eliminate through 
consolidation, Committee Republicans further risk reducing 
access to education and training services for our nation's most 
vulnerable workers by setting aside just 2 percent of formula 
funds for services for individuals with barriers to employment, 
which include disadvantaged youth.
    The provision under H.R. 4297 to provide states an option 
to consolidate Adult Education, TANF, TAA and other federal 
programs that serve our most vulnerable into one generic 
funding stream could result in significantly fewer resources 
for adults with low-levels of literacy, women and their 
families, and workers dislocated from trade impacted 
industries.
    The Republican bill also provides no priority of service 
for low-income adults or out-of-school youth under the 
Workforce Investment Fund and fails to ensure that each local 
area receives funding for youth activities. Committee 
Republicans believe such a provision impedes employers' ability 
to find skilled workers quickly and that eliminating the 
priority of service requirement better serves all job-seekers. 
However, striking priority of services for low-income workers 
for training and intensive services when funds are limited in 
local areas will not boost the recruitment of skilled workers; 
it will instead, almost certainly reduce access to education 
and training services for our nation's most vulnerable 
populations. Without a priority of service provision as 
provided under current law, dislocated workers, youth, older 
workers, and those in areas of highest unemployment would 
continue to be at a disadvantage under the bill.
    In addition, the substitute amendment repeals the National 
Emergency Grants (NEG) under Section 173 of WIA, which provides 
employment-related services for dislocated workers. NEGs are 
intended to immediately respond to sudden and significant 
dislocation events by temporarily expanding service capacity at 
the state and local levels through time-limited funding 
assistance from the federal government. ``These grants have 
proven to be invaluable in providing additional targeted 
assistance to states and local areas responding to large worker 
dislocations,'' according to Committee Republicans in a report 
accompanying H.R. 27 from the 109th Congress. Since 2009, the 
Department of Labor has awarded nearly 145 National Emergency 
Grants to counties throughout the United States for disaster 
reemployment and training relief. Despite previous support, 
H.R. 4297 cancels this critical program.
    Unfortunately, H.R. 4297 is especially detrimental to young 
people because it consolidates the majority of designated youth 
funding into the adult focused Workforce Investment Fund. Youth 
ages 16 to 24 have had unemployment rates hovering around 16 
percent for 38 consecutive months and continue to be adversely 
affected as the economy 13 14 continues to recover.\13\ Just 15 
percent of teens had a job in May 2012.\14\
---------------------------------------------------------------------------
    \13\Bird, K. (2012). Workforce Reauthorization: Amendments and 
Impacts for Youth. Washington, DC: Center for Law and Social Policy. 
Retrieved from http://www.clasp.org/issues/pages?type=youth&id=0050.
    \14\Ibid.
---------------------------------------------------------------------------
    During consideration of H.R. 4297 Committee Democrats 
offered a series of amendments in response to concerns over the 
underlying bill's elimination of existing protections for the 
unemployed, low-skilled adults and disadvantaged youth.
    Representative Scott offered an amendment to include the 
long-term unemployed in the list of special populations which 
must be included in state and local plans. This amendment was 
accepted by voice vote.
    Representative Hinojosa offered the Adult Education and 
Economic Growth Act (H.R. 2226) as a substitute amendment to 
encourage the use and availability of career pathways for low-
skilled adults. Committee Republicans rejected the amendment by 
a vote of 14-23.
    Representative Scott offered an amendment to ensure 
employment opportunities, such as summer and year-round jobs, 
for low-income and disconnected youth. Committee Republicans 
rejected this amendment by a vote of 15-23.
    Representative Scott offered an amendment to set-aside 25 
percent of local-level funding under the Workforce Investment 
Fund to serve youth. Committee Republicans rejected this 
amendment by a vote of 16-22.
    Representative Kildee offered an amendment to increase 
funding for Native American programs. Unlike Representative 
Noem's amendment, which capped the set-aside for Native 
American funding, Representative Kildee's amendment would have 
ensured that there would be a minimum level of funding for 
Native American programs. Committee Republicans defeated this 
amendment 15-23.
    Representative Woolsey offered an amendment to expand 
training opportunities for women in non-traditional employment. 
Committee Republicans defeated this amendment, 15-23.
    Representative Holt offered an amendment to cap spending 
for incumbent worker training at 15 percent to ensure that all 
types of workers have access to job training programs and 
workforce services. This amendment was amended by unanimous 
consent and then later withdrawn.
    Representative Andrews offered an amendment to require 
states to disaggregate performance and spending data by 
populations listed in local plans. Disaggregation of data can 
show where aggregate data are masking discrepancies among 
different demographic groups and better ensure that resources 
are spent where they are most needed. This amendment was 
accepted by voice vote.
    Although two of the many amendments that were offered to 
improve protections for targeted populations were accepted by 
voice vote, the rest were rejected, and Committee Democrats 
remain deeply concerned with the lack of strong safeguards to 
ensure that vulnerable populations receive WIA funded services.

     H.R. 4297 WEAKENS ACCOUNTABILITY AND CONSUMER GOVERNANCE ROLE

    H.R. 4297 eliminates WIA's longstanding requirement that 
labor, community-based organizations, community colleges, or 
people who work with youth, veterans, or workers with 
disabilities have a seat at the table on state and local WIBs. 
The WIBs play a central role in analyzing local needs and 
allocating local resources for workforce development. Simply 
increasing the percentage of employers serving on WIBs will do 
little to increase the number of employers already involved in 
the planning or design of related training and employment 
strategies. At the same time, by decreasing the role of other 
community stakeholders' participation on the WIBs, H.R. 4297 
reduces the valuable input of community organizations and other 
stakeholders with expertise and interest in serving vulnerable 
populations.
    Essentially, the Republican bill restructures the workforce 
system in a way that locks out key stakeholders and leaves the 
system vulnerable to favoritism. These are key stakeholders who 
can recognize when a program is or isn't working. They provide 
a voice for workers who need training and jobs. H.R. 4297 
silences that voice.
    Under current law, business makes up a majority of each WIB 
and chairs each board. H.R. 4297, however, guarantees business 
2/3 of the seats on a board, and up to 100 percent of those 
seats. It gives these businesses nearly unchecked power to 
spend government funds. Moreover, this provision would 
discourage the workforce system from leveraging the expertise 
and resources of community organizations and those who 
represent the training of diverse communities.
    Committee Democrats offered amendments to ensure that the 
range of perspectives in the planning of workforce services is 
maintained to meet the needs of both employers and workers 
within local and regional economies.
    Representative Hinojosa offered an amendment to include 
community colleges, community-based organizations and labor 
unions as mandatory Workforce Investment Board partners. Among 
other provisions, the amendment also restores the priority of 
services for low-income individuals. The amendment was defeated 
en-bloc on a party-line vote.
    Representative Davis offered an amendment, as amended by 
Representative Foxx, specifying that organizations serving 
veterans may serve on state and local Workforce Investment 
Boards. This amendment was adopted by voice vote. While this 
amendment took a step in the right direction, Committee 
Democrats remain concerned that the overall provision continues 
to limit the flexibility for states and local areas to select 
representatives that reflect the unique workforce challenges of 
their communities.
    Demanding accountability in these programs, Committee 
Democrats offered another amendment to protect WIBs from 
gamesmanship. Representative Bishop offered an amendment to 
establish WIB criteria and to prohibit funds for employers 
engaged in outsourcing activities. With the unemployment rate 
still hovering above 8 percent and approximately 23 million 
American workers unemployed or underemployed, Congress must do 
everything in its power to protect American workers. Setting 
standards to preclude membership on workforce governance boards 
for any representative of a business that has outsourced jobs 
is one small step toward protecting American workers and 
discouraging businesses from shipping jobs overseas. This 
amendment was defeated on another party-line vote, 15-23.

          H.R. 4297 FREEZES WIA FUNDS OVER THE NEXT FIVE YEARS

    The authorized funding levels under H.R. 4297 are capped 
over the next five years at current levels with no inflation 
increases. In other words, the bill limits the funding 
authorization irrespective of increases in the costs of 
providing services or the needs for those services that may 
result from future economic circumstances. This freeze will 
lead to real cuts at a time when the need for quality services 
is greatest. One has to look no further than recent budgets 
proposed by the majority to see that their priorities are not 
aligned with working families. During this Congress, the 
Republican majority has proposed cutting roughly $2.97 billion 
in WIA funds, dismantling the national commitment to the 
millions of Americans seeking job assistance, skills 
assessment, career counseling, and job training programs. These 
budgets cut billions of dollars from programs to help Americans 
find new jobs and gain new skills while preserving tax cuts for 
millionaires and billionaires. H.R. 4297 and these budget 
proposals send our country in the wrong direction.

                      OTHER DEMOCRATIC AMENDMENTS

    In addition to the amendments discussed above, Democratic 
members offered the following amendments to address other key 
deficiencies in this legislation.
    Representative Bishop offered an amendment to add co-op 
education as an allowable statewide training activity. 
Committee Republicans rejected the amendment by a vote of 16-
22.
    Representative Miller offered an amendment to create more 
than 300,000 private sector jobs and reemployment opportunities 
in the construction industry through school and community 
college repair and modernization. Committee Republicans 
rejected the amendment by a vote of 15-23.
    Representative Holt offered an amendment to add libraries 
as allowable local employment and training activity. This 
amendment was defeated by a vote of 18-20.
    Representative Holt offered an amendment to establish 
national on-line workforce training grants. The amendment 
failed by a voice vote.
    Representative Loebsack offered an amendment to set-aside 5 
percent of a state's allocation under the Workforce Investment 
Fund for an ``Employer Engagement Fund'' that would be used to 
fund competitive sector partnership grants at the state level. 
Committee Republicans rejected the amendment by a vote of 17-
21.

 HUNDREDS OF CONSUMER GROUPS HAVE EXPRESSED CONCERNS AND OPPOSITION TO 
                               H.R. 4297

    More than 400 groups, including labor organizations, civil 
rights groups, disability advocates, youth groups and workforce 
investment organizations wrote letters of opposition or concern 
regarding H.R. 4297. Some of the groups in opposition include: 
the American Federation of Labor and Congress of Industrial 
Organizations, American Federation of State, County and 
Municipal Employees, Association of Farm Worker Opportunity 
Programs, Campaign for Youth, California Human Development, 
Center for Law and Social Policy, Congressional Black Caucus, 
Council of State Administrator of Vocational Rehabilitation, 
Easter Seals, La Courte Oreilles Tribal Governing Board, the 
Leadership Conference on Civil and Human Rights, National 
Association of Counties, National League of Cities, National 
Council on La Raza, National Council of State Directors of 
Adult Education, National Skills Coalition, and the Service 
Employees International Union. These organizations agree that 
the Republican bill does not move our workforce into the 
future.
    Additionally, Labor Secretary Hilda Solis and Education 
Secretary Arne Duncan wrote a letter in strong opposition to 
H.R. 4297 citing ``it does not succeed in'' addressing the 
Administration's reform principles. The letter goes on to 
state, ``[W]e are concerned that the bill's approach fails to 
ensure that vulnerable populations, especially those with the 
mostsignificant barriers to employment (including veterans, 
individuals with disabilities, low-income individuals and families, and 
low-skilled adults and youth), will receive the range of assistance 
they need.'' While they ``strongly oppose the current version of H.R. 
4297,'' the Departments of Labor and Education expressed their interest 
in working with the Committee to develop bipartisan legislation that is 
consistent with the Administration's reform principles, which consist 
of providing ``[a]ll Americans, including individuals with the most 
significant barriers to employment . . . have access to high-quality 
services One-Stop Career Centers that connect them with the full range 
of services available in their communities.''

                           REHABILITATION ACT

    While the Great Recession has been widespread, affecting a 
wide variety of individuals, people with disabilities continue 
to face formidable hurdles in reconnecting to the labor market. 
The low labor force participation rate of workers with 
disabilities is shockingly low. According to the Bureau of 
Labor Statistics (BLS) employment report for June 2012, there 
are nearly 30 million adults with disabilities in the United 
States between the ages of 16 and 64.\15\ Of this group, just 
20 percent of individuals with a disability are participating 
in the labor force compared to nearly 70 percent of people with 
no disability.\16\ The unemployment rate for persons with a 
disability is nearly 13 percent, well above the 7.7 percent for 
those with no disability.\17\
---------------------------------------------------------------------------
    \15\Bureau of Labor Statistics, United States Department of Labor. 
(2012). The Employment Situation--June 2012. Retrieved from http://
www.bls.gov/news.release/empsit.nr0.htm.
    \16\Ibid.
    \17\Ibid.
---------------------------------------------------------------------------
    Committee Democrats believe revisions to the Rehabilitation 
Act must be made in concert with WIA reauthorization to ensure 
that individuals with disabilities continue to have access to 
the high quality job training and employment services and 
supports tailored to the unique and individualized needs of the 
disability community. Increasing opportunities for competitive 
integrated employment for all individuals with disabilities and 
improving youth transition advances opportunities for economic 
self-sufficiency, employment, and full inclusion in society.
    Developing a job training and employment system that 
reflects the accessibility needs of America's diverse workforce 
and business community is central to this reauthorization. 
However, H.R. 4297 fails to meet this need by failing to 
comprehensively reauthorize the Rehabilitation Act and update 
programs that currently serve about 1 million individuals with 
disabilities each year. Of this population, 92 percent have 
significant disabilities. H.R. 4297 instead focuses on 
eliminating programs and services rather than ensuring high 
quality transition services and employment opportunities for 
people with disabilities. The bill strikes Title VI of the 
Rehabilitation Act, including the Supported Employment Program 
for individuals with the most significant disabilities. This 
program provides critical support to develop and establish 
successful supported employment programs for those individuals 
with the most significant disabilities who might not be 
traditionally considered appropriate for competitive 
employment.
    H.R. 4297 also eliminates the in-service training program 
for rehabilitation personnel. To ensure that consumers have 
access to qualified staff who are trained to address the unique 
vocational rehabilitation and counseling needs of individuals 
with the most significant disabilities, to assist business in 
attracting highly qualified employees with disabilities, and to 
ensure positive employment outcomes requires the recruitment 
and retention of qualified rehabilitation professionals and 
paraprofessionals. Without such investments, the long-term 
result will be declining numbers of rehabilitation 
professionals and a negative impact on the employment of people 
with disabilities.
    Also problematic, H.R. 4297 removes State Vocational 
Rehabilitation (VR) representation from WIBs. Under current 
law, State VR Directors are mandatory partners of the workforce 
system, representing the unique needs of individuals with the 
most significant disabilities. The Republican bill weakens a 
critical voice needed at the state and local levels to ensure 
the employment needs of the disability community are adequately 
represented.
    In addition, H.R. 4297 keeps the current funding 
authorization flat in each year and makes only modest changes 
to areas concerning transitioning youth. Without significant 
improvements to the bill on programmatic accessibility, many 
individuals with the most significant disabilities who require 
specialized services and supports to go to work will continue 
to face tremendous challenges in securing gainful employment.
    Among the hundreds of stakeholder groups that weighed in on 
the bill, numerous organizations sent letters in opposition or 
expressing concern with specific issues to the Rehabilitation 
Act changes under H.R. 4297, including: Consortium for Citizens 
with Disabilities Employment and Training Task Force, Council 
of State Administrators of Vocational Rehabilitation, Easter 
Seals, The Arc, The Pacer Center, and National Disability 
Rights Network.
    Committee Democrats remain committed to improving current 
law by fully reauthorizing one of the nation's most 
comprehensive and longest serving employment programs for 
people with disabilities. During Full Committee deliberation, 
Representatives Holt and Woolsey offered an amendment to strike 
Title V of H.R. 4297 and replace it with the Rehabilitation Act 
Reauthorization, Title IV of the Workforce Investment Act of 
2012 (H.R. 4227). The amendment would increase transition 
services by requiring States to assess the needs of and serve 
transitioning youth with disabilities including through job 
exploration and mentoring. It would increase dissemination and 
applicability of disability research, including research to 
maximize full inclusion in society, competitive integrated 
employment and economic self-sufficiency. The Holt-Woolsey 
amendment would extend supported employment services to include 
services for youth with the most significant disabilities, 
increase focus on underserved populations under the Independent 
Living Centers Program, and improve employer outreach on 
employment opportunities for individuals with disabilities. 
This amendment failed by a party line vote of 15-23.
    In 2011, state Vocational Rehabilitation agencies reported 
that as many as 78,000 individuals with disabilities were on 
waiting lists for services during the year. Unfortunately, H.R. 
4297 fails to provide a comprehensive reauthorization for the 
Rehabilitation Act, threatening services at a time when the 
needs of individuals with disabilities are great. Rather than 
join the disability community's call for a comprehensive 
reauthorization of the Rehabilitation Act, including calls from 
the National Centers for Independent Living, National 
Disability Rights Network, Collaboration to Promote Self-
Determination: Association of Persons for Supported Employment, 
Autistic Self-Advocacy Network, Institute for Educational 
Leadership, Jay Nolan Community Services, National Disability 
Institute, National Down Syndrome Congress, National Down 
Syndrome Society, National Organization of Nurses with 
Disabilities, and TASH, and the National Center for Learning 
Disabilities, the Republican bill largely overlooks this 
important law, rejecting the opportunity to continue key 
policies and programs that assist people with disabilities to 
find employment.

                               CONCLUSION

    With increasing global competition and the deep impact of 
the Great Recession on our workforce, many individuals and 
their families have been hit hard with employment loss. There 
is bipartisan consensus that the nation's job training law 
needs updating to efficiently and effectively ensure job 
training and employment services reflect market demands and 
more importantly, help the people who need them. A modern 
workforce system requires investments in individuals for both 
short-term reemployment needs and for long-term skills 
attainment and credentialing. We can do this by supporting and 
fostering innovation in the system, engaging sector partners 
and leveraging community resources. Now more than ever, we need 
to put people onto career pathways through smart investments in 
our nation's workforce. H.R. 4297 fails to achieve these goals.

                                   George Miller.
                                   Jason Altmire.
                                   Marcia L. Fudge.
                                   Mazie K. Hirono.
                                   Raul M. Grijalva.
                                   Robert C. Scott.
                                   Lynn C. Woolsey.
                                   John F. Tierney.
                                   Dennis J. Kucinich.
                                   Timothy H. Bishop.
                                   Rush D. Holt.
                                   Susan A. Davis.
                                   Dave Loebsack.
                                   Ruben Hinojosa.
                                   Robert E. Andrews.
                                   Carolyn McCarthy.
                                   Dale E. Kildee.

                                  
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