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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1117 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1117

        To prepare disconnected youth for a competitive future.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              June 7, 2013

 Ms. Stabenow introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
        To prepare disconnected youth for a competitive future.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Reengaging 
Americans in Serious Education by Uniting Programs Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Grants authorized.
Sec. 5. Application.
Sec. 6. Priority.
Sec. 7. Selection criteria.
Sec. 8. Use of funds.
Sec. 9. Planning grants authorized.
Sec. 10. Accountability, performance measures, and evaluation.
Sec. 11. Technical assistance and best practices.
Sec. 12. Authorization of appropriations.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) In the United States today, millions of youth drop out 
        of secondary school, fail to complete their studies, or do not 
        graduate on time. While the United States has made slow 
        progress in improving graduation rates, the dropout challenge 
        remains a crisis that is impeding the Nation's ability to 
        produce an educated workforce and succeed in the 21st century 
        global economy.
            (2) Government data shows that more than 25 percent of the 
        Nation's students fail to complete secondary school in 4 years. 
        In some of the larger cities of the United States and among 
        urban minority youth, dropout rates of 40 percent are not 
        uncommon.
            (3) According to recent research, there is an estimated 
        6,700,000 youth ages 16-24 who are disconnected from school and 
        work, of which 3,400,000 are chronic, having had no attachment 
        to school or work since age 16, and 3,300,000 are under-
        attached to school or work and have not progressed toward 
        employment or postsecondary education. While disconnected youth 
        are disproportionately male and from minority groups, 
        substantial disconnected youth rates are found for all groups 
        of youth.
            (4) The impact of this dropout crisis has been likened to a 
        permanent recession for youth, and it has consequences for the 
        economy of the United States. Disconnected youth are more 
        likely than other youth to engage in criminal activities, 
        become incarcerated, and rely on public systems of support.
            (5) The Department of Education reports that the average 
        secondary school dropout is associated with costs to the 
        economy of approximately $240,000 over the individual's 
        lifetime in terms of lower tax contributions, higher reliance 
        on government health programs and public assistance, and higher 
        rates of criminal activity. Over their lifetimes, secondary 
        school dropouts are estimated to earn $400,000 less than 
        secondary school graduates. Further, only 37 percent of 
        secondary school dropouts are steadily employed, and they are 
        more than twice as likely to live in high poverty.
            (6) Experts estimate that two-thirds of jobs created in the 
        near future will require at least some postsecondary education. 
        Education and training pathways that help youth to earn a 
        secondary school diploma and postsecondary credentials are 
        essential.
    (b) Purposes.--The purposes of this Act are--
            (1) to prepare disconnected youth for a competitive future;
            (2) to challenge and support young people who have dropped 
        out of secondary school to--
                    (A) attain a secondary school diploma;
                    (B) attain a 2-year or 4-year credential from a 
                recognized postsecondary educational institution, an 
                industry-recognized credential, or certification from a 
                registered apprenticeship program; and
                    (C) secure and succeed in a family-supporting 
                career; and
            (3) to support local community partnerships in integrating 
        existing, and often disparate, services into a comprehensive, 
        cross-systems dropout recovery approach.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Disability.--The term ``disability'' has the meaning 
        given the term in section 3 of the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12102).
            (2) Disconnected youth.--The term ``disconnected youth'' 
        means a young person who--
                    (A) has left secondary school without obtaining a 
                secondary school diploma;
                    (B) is or was previously a homeless child or youth;
                    (C) is or was under the care and placement 
                responsibility of the State agency responsible for 
                administering a plan under parts B and E of title IV of 
                the Social Security Act (42 U.S.C. 621 et seq., 670 et 
                seq.);
                    (D) was under the custody of a juvenile justice or 
                criminal justice system;
                    (E) has a disability; or
                    (F) is a low-income individual and is pregnant or 
                parenting and not attending any school.
            (3) Eligible entity.--The term ``eligible entity'' means a 
        partnership consisting of entities or individuals qualified to 
        represent the community assisted, or proposed to be assisted, 
        by a grant under this Act, including not less than one partner 
        from each of the following categories:
                    (A) A mayor, or other appropriate chief executive 
                officer, of a unit of general purpose local government 
                in the community.
                    (B) A local educational agency (as defined in 
                section 9101 of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 7801)) serving the community.
                    (C) A local workforce system serving the community.
                    (D) An institution of higher education serving the 
                community.
                    (E) A representative of a local or state system 
                serving young people in the community, including--
                            (i) a juvenile justice system;
                            (ii) a criminal justice system;
                            (iii) a housing agency;
                            (iv) a mental health agency; and
                            (v) a child welfare agency.
                    (F) A representative of a community-based 
                organization serving the community.
                    (G) A representative from business or industry.
                    (H) A representative with expertise in labor 
                management relations.
                    (I) A disconnected youth in the community and the 
                parents or caregivers of such disconnected youth.
            (4) Federal youth development council.--The term ``Federal 
        Youth Development Council'' means the Federal Youth Development 
        Council established under the Tom Osborne Federal Youth 
        Coordination Act (Public Law 109-365; 120 Stat. 2594).
            (5) Homeless children and youths.--The term ``homeless 
        children and youths'' has the meaning given the term in section 
        725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11434a).
            (6) 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 (20 
        U.S.C. 1001).
            (7) One-stop center.--The term ``one-stop center'' means a 
        one-stop center described in section 134(c) of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2864(c)).
            (8) Postsecondary education.--The term ``postsecondary 
        education'' means--
                    (A) a 4-year program of instruction, or not less 
                than a 1-year program of instruction that is acceptable 
                for credit toward a baccalaureate degree, offered by an 
                institution of higher education; or
                    (B) a certificate or registered apprenticeship 
                program at the postsecondary level offered by an 
                institution of higher education or a nonprofit 
                educational institution.
            (9) Registered apprenticeship program.--The term 
        ``registered apprenticeship program'' means an industry skills 
        training program at the postsecondary level that combines 
        technical and theoretical training through structured on-the-
        job learning with related instruction (in a classroom or 
        through distance learning) while an individual is employed, 
        working under the direction of qualified personnel or a mentor, 
        and earning incremental wage increases aligned to enhanced job 
        proficiency, resulting in the acquisition of a nationally 
        recognized and portable certificate, under a plan approved by 
        the Office of Apprenticeship of the Department of Labor or by a 
        State agency recognized by the Department of Labor.
            (10) Secondary school.--The term ``secondary school'' has 
        the meaning given the term in section 9101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            (11) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (12) Young people.--The term ``young people'' means 
        individuals who are between the ages of 16 and 24, inclusive, 
        at the time of commencement of participation in services funded 
        through a grant under section 4.

SEC. 4. GRANTS AUTHORIZED.

    (a) In General.--The Secretary, in consultation with the Secretary 
of Education, the Secretary of Health and Human Services, the Secretary 
of Housing and Urban Development, the Attorney General of the United 
States, the Federal Youth Development Council, and leaders in the field 
of working with disconnected youth, shall award grants, on a 
competitive basis, to eligible entities to enable the eligible entities 
to pay the costs of--
            (1) developing and implementing a strategy to identify 
        disconnected youth; and
            (2) providing such disconnected youth with support needed 
        to--
                    (A) attain a secondary school diploma or its 
                recognized equivalent;
                    (B) attain a postsecondary credential, including a 
                2-year or 4-year credential from an institution of 
                higher education, an industry-recognized credential, or 
                certification from a registered apprenticeship program; 
                and
                    (C) secure and succeed in a family-supporting 
                career.
    (b) Minimum Grant Amount.--The Secretary shall award a grant under 
this section in an amount that--
            (1) is appropriate to achieve the goals and implement the 
        activities described in the application submitted under section 
        5; and
            (2) is not less than $1,000,000 per year.
    (c) Duration of Grant.--A grant under this section shall be awarded 
for a period of 5 years, and may be renewed at the discretion of the 
Secretary based on the effective performance of the eligible entity 
under the preceding grant in accordance with the levels of performance 
determined by the eligible entity and the Secretary pursuant to section 
9(b).
    (d) Equitable Geographic Distribution of Funds.--The Secretary 
shall ensure an equitable and appropriate distribution of grants 
awarded under this section among eligible entities--
            (1) serving urban, rural, and suburban areas; and
            (2) with varying degrees of experience and expertise in 
        serving disconnected youth.
    (e) Fiscal and Administrative Agents.--An eligible entity shall 
choose an entity to be the fiscal agent and an entity to be the 
administrative agent for the grant funds received under this section.
    (f) Existing Partnership.--An existing workforce, education, or 
youth development partnership, coalition, or organization may serve as 
the eligible entity for the purposes of grants under this section if 
the partnership, coalition, or organization includes, or modifies the 
members of the partnership, coalition, or organization to include, the 
individuals required to be included in the eligible entity under 
section 3(3).

SEC. 5. APPLICATION.

    (a) In General.--An eligible entity that desires a grant under 
section 4 shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
require.
    (b) Contents.--An application submitted under this section shall 
include--
            (1) a description of the eligible entity submitting the 
        application, including a description of the fiscal agent and 
        the administrative agent for the grant;
            (2) a description of the strategy that the eligible entity 
        will use to carry out the purpose of this Act, which shall 
        include--
                    (A) a well-developed education component with an 
                emphasis on--
                            (i) multiple pathways and options towards 
                        secondary school diploma and postsecondary 
                        credential attainment, which may include 
                        recuperative strategies such as competency-
                        based instruction and credit retrieval as well 
                        as basic literacy; and
                            (ii) the skills needed in the fields of 
                        science, technology, engineering, and 
                        mathematics;
                    (B) a work preparation component, which may include 
                a hands-on internship, work experience, or national or 
                community service, that promotes the development of 
                applied skills such as oral and written communication, 
                teamwork, leadership, and critical thinking; and
                    (C) a youth support component, including the array 
                of comprehensive support services that will--
                            (i) address the challenges that caused the 
                        disconnected youth to leave school without a 
                        secondary school diploma;
                            (ii) remove barriers to and support the 
                        attainment of--
                                    (I) the graduation of such young 
                                people from secondary school;
                                    (II) a postsecondary credential, 
                                including a 2-year or 4-year credential 
                                from an institution of higher 
                                education, an industry-recognized 
                                credential, or certification from a 
                                registered apprenticeship program; and
                                    (III) success in a family-
                                supporting career; and
                            (iii) provide appropriate case management 
                        to ensure young people achieve the purposes 
                        described in section 2(b);
            (3) a needs assessment of the community to be assisted 
        under the grant, including--
                    (A) an estimate of the number of disconnected youth 
                in the community; and
                    (B) an assessment of resources available in the 
                community that can help such disconnected youth--
                            (i) address the challenges that caused such 
                        disconnected youth to leave school without a 
                        secondary school diploma;
                            (ii) return to an appropriate educational 
                        setting;
                            (iii) attain a secondary school diploma;
                            (iv) attain a postsecondary credential, 
                        including a 2-year or 4-year credential from an 
                        institution of higher education, an industry-
                        recognized credential, or certification from a 
                        registered apprenticeship program; and
                            (v) secure and succeed in a family-
                        supporting career;
            (4) a plan for identifying and engaging disconnected youth 
        and connecting such disconnected youth with a continuum of 
        comprehensive and coordinated resources that can help such 
        disconnected youth attain a secondary school diploma, a 
        recognized postsecondary credential, including a 2-year or 4-
        year credential from an institution of higher education, an 
        industry-recognized credential, or certification from a 
        registered apprenticeship program, and secure and succeed in a 
        family-supporting career, including a description of--
                    (A) the needs of such disconnected youth that will 
                be met by the eligible entity through the grant;
                    (B) the identities, roles, and capacity of the 
                partners in the eligible entity to fulfill the needs 
                described in subparagraph (A), including a description 
                of the role to be played by--
                            (i) secondary schools and institutions of 
                        higher education in constructing education 
                        programming;
                            (ii) the local workforce system, including 
                        one-stop career centers and businesses, in 
                        developing and implementing the workforce 
                        preparation activities; and
                            (iii) systems serving young people, 
                        including the juvenile justice system, and 
                        other community-based organizations in 
                        providing outreach, support, and direct 
                        service;
                    (C) a plan to leverage non-Federal (including in-
                kind) resources and a plan for sustainability beyond 
                the grant period;
                    (D) the services to be provided through the grant 
                to carry out the strategy described in paragraph (2) 
                and a description of the process that will be used to 
                award subgrants and contracts under section 8 for the 
                provision of such services;
                    (E) the research and evidence base indicating why 
                the selected strategy and selection of services will be 
                effective in meeting the comprehensive needs of the 
                disconnected youth identified in the community;
                    (F) the goals, intended outcomes, and performance 
                measures of the eligible entity's strategy in 
                accordance with the performance measures under section 
                10(b);
                    (G) a statement of concurrence on the application, 
                signed by the partners in the eligible entity, that 
                outlines the specific roles and responsibilities of the 
                partners as the roles and responsibilities relate to 
                the functioning of the eligible entity; and
                    (H) a plan to create, or include an existing, youth 
                advisory council, that is composed of disconnected 
                youth from the community to be served, to make 
                recommendations regarding the services to be provided 
                under the grant;
            (5) a description of the system that will be put in place 
        to--
                    (A) provide case management, counseling, intensive 
                placement and follow-up services, adult advocacy, or 
                mentoring to help disconnected youth and their families 
                access the various systems, resources, and supports 
                necessary to ensure such young people's success; and
                    (B) ensure that young people receiving services 
                through the grant will receive individualized case 
                management to ensure that the young people achieve the 
                purposes described in section 2(b), including--
                            (i) an assessment of needs;
                            (ii) coordination of appropriate services; 
                        and
                            (iii) academic preparation and support for 
                        entry, persistence, and completion of 
                        postsecondary education;
            (6) a description of how the eligible entity will ensure 
        that every young person served under the grant receives 
        comprehensive services, including services from each of the 
        categories described in paragraphs (1) through (3) of section 
        8(b) until the young person--
                    (A) attains a secondary school diploma, a 2-year or 
                4-year credential or occupational certification from an 
                institution of higher education, an industry-recognized 
                credential, or certification from a registered 
                apprenticeship program; and
                    (B) secures employment that can lead to economic 
                self-sufficiency;
            (7) a description of how the strategy to be implemented 
        under the grant will identify, engage, and provide services to 
        young people who--
                    (A) left school without a secondary school diploma 
                and have reading, mathematics, or science skills at or 
                below the grade 8 level; and
                    (B) are disconnected youth described in any of 
                subparagraphs (C) through (E) of section 3(2);
            (8) a description of how public and private services that 
        exist on the date of submission of the application will be 
        coordinated and integrated in order to implement and sustain 
        the strategy under the grant;
            (9) a description of how Federal, State, and local private 
        and public funds will be leveraged, coordinated, and integrated 
        in order to implement the strategy under the grant;
            (10) a description of how the strategy to be implemented 
        under the grant strengthens, and does not duplicate, efforts 
        within the community to be served under the grant that are 
        funded under chapter 4 of subtitle B of title I of the 
        Workforce Investment Act of 1998 (29 U.S.C. 2851 et seq.);
            (11) a description of the process to be used to review or 
        approve the industry-recognized credentials that may be 
        attained by the young people receiving support under the grant; 
        and
            (12) a description of how the strategy to be implemented 
        under the grant aligns with the efforts of the local 
        educational agency serving the community assisted under the 
        grant to improve secondary schools, including efforts focused 
        on--
                    (A) students who are off-track to an on-time 
                graduation; and
                    (B) recuperative strategies.
    (c) Existing Plans, Assessments, and Strategies.--Plans, needs 
assessments, and strategies that have been developed by an eligible 
entity or the partners in the eligible entity may be used to satisfy 
the requirements of this section if such plans, needs assessments, or 
strategies--
            (1) include the information required by this section, or 
        can be modified to include the information required by this 
        section; and
            (2) are submitted to the Secretary with such modifications.

SEC. 6. PRIORITY.

    In awarding grants to eligible entities under section 4, the 
Secretary shall give priority to applications from eligible entities 
proposing--
            (1) to serve areas with disproportionately high numbers or 
        percentages of young people who have left secondary school 
        without obtaining a secondary school diploma or its recognized 
        equivalent;
            (2) to serve areas with high concentrations of young people 
        in families whose family income is not more than 200 percent of 
        the poverty line (as determined under section 673(2) of the 
        Community Services Block Grant Act (42 U.S.C. 9902(2))); and
            (3) to serve areas with high numbers or percentages of 
        young people who are unemployed or underemployed.

SEC. 7. SELECTION CRITERIA.

    The Secretary shall award grants to eligible entities under section 
4 based on selection criteria that includes the following:
            (1) Best practices or research.--The extent to which the 
        application submitted by an eligible entity under section 5 is 
        rooted in documented best practices or research.
            (2) Integration.--The extent to which the application 
        demonstrates the integration of multiple services into a 
        comprehensive, coordinated continuum that meets the holistic 
        needs of young people, including health services, mental health 
        services, housing, civic opportunities, job readiness, work 
        experience, school readiness, reenrollment in school, and 
        connections to family and community.
            (3) Leadership and community involvement.--The extent to 
        which the application demonstrates the leadership and 
        substantive involvement of the business community, the mayor or 
        appropriate chief executive officers of the general purpose 
        local government of the community to be served by the grant, 
        each local educational agency serving the community, the public 
        and nonprofit sectors of the community, and other individuals 
        and entities described in section 3(2), of the community.
            (4) Leveraging and sustainability.--The extent to which the 
        application demonstrates that resources from multiple sources 
        will be leveraged to implement the grant, and the extent to 
        which the application demonstrates a plan for sustainability 
        beyond the grant period.

SEC. 8. USE OF FUNDS.

    (a) Subgrants.--
            (1) In general.--Each eligible entity receiving a grant 
        under section 4 shall use the grant funds--
                    (A) to award subgrants and contracts to community-
                based organizations and other entities to enable the 
                organizations and entities to provide a comprehensive 
                array of coordinated activities that will--
                            (i) support the educational, career and 
                        technical, social, emotional, and civic needs 
                        of disconnected youth; and
                            (ii) allow disconnected youth to graduate 
                        from secondary school, attain a postsecondary 
                        credential, including a 2-year or 4-year 
                        credential from an institution of higher 
                        education, an industry-recognized credential, 
                        or certification from a registered 
                        apprenticeship program, and secure and succeed 
                        in a family-supporting career;
                    (B) for training, technical assistance, and 
                professional development for the organizations and 
                entities that is offered by local or national 
                organizations;
                    (C) for coordinating the overall effort of the 
                eligible entity; and
                    (D) for the reasonable costs associated with the 
                administration and oversight of the grants under 
                section 4.
            (2) Use of subgrant funds.--Each organization or entity 
        receiving a subgrant or contract under this section--
                    (A) shall use the subgrant or contract funds to 
                carry out a workforce preparation service, an education 
                support service, or a youth support service, described 
                in paragraphs (1), (2), and (3) of subsection (b), 
                respectively; and
                    (B) may use the subgrant or contract funds to carry 
                out an activity described in paragraph (4) or (5) of 
                subsection (b).
    (b) Allowable Activities.--The services and activities referred to 
in subsection (a)(2) include the following:
            (1) Work and career preparation.--
                    (A) Workforce preparation.--Job training, youth 
                entrepreneurship, technological and career and 
                technical skill building, meaningful internship and 
                apprenticeship opportunities, and other workforce 
                preparation activities developed in partnership with 
                the business community and other employers.
                    (B) Exposure and preparation for careers.--
                Strategies that will expose disconnected youth to, and 
                prepare such disconnected youth for, careers, including 
                careers in high-growth, high-demand industries that 
                require the use of science, technology, engineering, 
                and mathematics skills.
                    (C) Applied skills.--Strategies that promote the 
                development of applied skills in such young people, 
                including oral and written communication, teamwork, 
                leadership, critical thinking, and a commitment to 
                social and civic responsibility, including service-
                learning activities.
                    (D) Compensation.--Compensation for employment 
                opportunities for such young people, including summer 
                and year-round employment opportunities, national and 
                community service, service-learning, and work 
                experience.
            (2) Education support.--
                    (A) Education programming.--Education programming 
                for such young people, including assessment, 
                instruction, tutoring, and technology supports to 
                academic instruction.
                    (B) Career and technical education.--Career and 
                technical education.
                    (C) Dual enrollment programs and early college high 
                schools.--Participation in dual enrollment programs, 
                early college high schools, and other proven models for 
                supporting the educational achievement of disconnected 
                youth.
                    (D) Postsecondary credentials.--Programs that 
                provide young people with a postsecondary credential 
                from an institution of higher education, a non-profit 
                postsecondary educational institution that offers an 
                industry recognized credential, or a registered 
                apprenticeship program.
                    (E) Transition support.--Support for young people 
                in their transition into and their successful 
                completion of postsecondary education.
                    (F) Financial assistance.--Financial assistance for 
                such young people for education support services and 
                for higher education.
            (3) Youth support.--
                    (A) Case management.--Case management, including 
                using subgrant or contract funds for youth centers to 
                serve as points of access and continued support.
                    (B) Health, mental health, or drug treatment 
                services.--Health services, mental health services, or 
                drug treatment services.
                    (C) Housing.--Housing.
                    (D) Transportation.--Transportation.
                    (E) Childcare or family support services.--
                Childcare services or family support services.
                    (F) Mentoring activities.--Mentoring activities for 
                such young people, including one-to-one relationship 
                building and tutoring.
            (4) Curriculum development.--Curriculum development that 
        promotes contextual learning.
            (5) Other services or opportunities.--Other services or 
        opportunities that the Secretary or the eligible entity 
        determine will help carry out the purposes of this Act.
    (c) Eligible Participants.--An eligible entity receiving a grant 
under section 4 shall ensure that, of the group of young people who 
receive the services and participate in the activities described in 
subsections (a) and (b) under the grant, not less than 75 percent of 
the group shall be disconnected youth as defined in section 3(2).
    (d) Waiver of Multiple Service Requirement.--The Secretary may 
waive the requirement of subsection (a) regarding the provision of a 
comprehensive array of coordinated activities for an eligible entity 
receiving a grant under section 4 to permit not more than 25 percent of 
the young people served by the eligible entity under the grant to 
receive only 1 or more services among the allowable activities 
described in subsection (b) if the eligible entity determines that such 
young people only need 1 or more such services in order to--
            (1) attain a secondary school diploma;
            (2) attain a recognized postsecondary credential, including 
        a 2-year or 4-year credential from an institution of higher 
        education, an industry-recognized credential, or certification 
        from a registered apprenticeship program; and
            (3) secure and succeed in a family-supporting career.

SEC. 9. PLANNING GRANTS AUTHORIZED.

    (a) In General.--The Secretary shall award planning grants to 
eligible entities to develop the components of the application 
described in section 5, in order to allow eligible entities to become 
competitive for grants under section 4.
    (b) Duration; Amount.--Planning grants under this section shall 
be--
            (1) for a duration of not more than 6 months in an amount 
        of not more than $50,000; or
            (2) for a duration of more than 6 months and not more than 
        one year and in an amount of not more than $100,000.
    (c) Recipients.--Recipients of grants under this section shall 
include--
            (1) eligible entities that applied for and did not receive 
        a grant under section 4, and demonstrate the ability to submit 
        a competitive application after additional local planning; and
            (2) eligible entities that intend to apply for a grant 
        under section 4 after undergoing a thorough planning process.

SEC. 10. ACCOUNTABILITY, PERFORMANCE MEASURES, AND EVALUATION.

    (a) Purpose.--The purpose of this section is to establish an 
accountability system, comprised of the activities described in this 
section, in order to--
            (1) assess the effectiveness of grants under section 4 in 
        helping disconnected youth--
                    (A) attain a secondary school diploma;
                    (B) attain a 2-year or 4-year credential from an 
                institution of higher education, an industry recognized 
                credential, or certification from a registered 
                apprenticeship program; and
                    (C) secure and succeed in a family-supporting 
                career;
            (2) identify and disseminate effective practices to 
        strengthen performance; and
            (3) maximize the return on investment of Federal funds in 
        activities assisted pursuant to a grant under section 4.
    (b) Performance Measures.--
            (1) In general.--For each eligible entity, performance 
        measures shall consist of the indicators of performance 
        described in paragraph (2) and the level of performance 
        described in paragraph (3).
            (2) Indicators of performance.--The indicators of 
        performance referred to in paragraph (1) shall consist of the 
        following:
                    (A) Interim indicators.--
                            (i) Youth participation.--The participation 
                        of young people in activities funded under 
                        section 4.
                            (ii) Youth progress.--The progress of young 
                        people towards all of the following:
                                    (I) Attainment of a secondary 
                                school diploma or its recognized 
                                equivalent.
                                    (II) Job readiness.
                            (iii) Youth attainment.--The attainment by 
                        young people of a secondary school diploma or 
                        its recognized equivalent.
                    (B) Transitional indicators.--
                            (i) Diploma, and entrance into education or 
                        employment.--The attainment by young people of 
                        a secondary school diploma, and entrance into 
                        postsecondary education or employment.
                            (ii) Credential.--The attainment by young 
                        people of 1 or more recognized postsecondary 
                        credentials, which may include a certificate, a 
                        license, a journey-status card, or an associate 
                        degree or baccalaureate degree.
                    (C) Long-term indicators.--
                            (i) Employment, diploma, and credential.--
                        Employment of individuals who participated in 
                        activities funded under section 4, attained a 
                        secondary school diploma, and attained 1 or 
                        more recognized credentials, which may include 
                        a certificate, license, journey-status card, or 
                        associate degree or baccalaureate degree.
                            (ii) Initial wage or salary level.--The 
                        initial wage or salary level of individuals 
                        described in clause (i).
            (3) Level of performance.--For each indicator of 
        performance described in paragraph (2), the Secretary, in 
        coordination with the eligible entity, shall determine a level 
        of performance expressed in objective, quantifiable, and 
        measurable form and in a way to show the progress of the 
        eligible entity toward continuously improving performance.
            (4) Eligible entity measures.--
                    (A) In general.--Each eligible entity that receives 
                a grant under section 4 shall reach agreement with the 
                Secretary on the levels of performance for the years 
                covered by the grant. The levels of performance shall 
                take into account the economic conditions of the area 
                served, the characteristics of young people in the 
                area, secondary school graduation rates, and the 
                activities or services provided in the community served 
                under the grant.
                    (B) Adjustments.--If unanticipated circumstances 
                arise resulting in a significant change in the economic 
                conditions of the area, the characteristics of young 
                people in the area, secondary school graduation rates, 
                or activities or services provided in the community 
                served under the grant, then the eligible entity may 
                request that the Secretary adjust the level of 
                performance for the eligible entity.
    (c) Assurance.--Each eligible entity that receives a grant under 
section 4 shall provide an assurance to the Secretary, as part of the 
application submitted under section 5, that the eligible entity will--
            (1) report progress toward achieving the indicators under 
        subsection (b) beyond the grant period for young people served 
        under the grant; and
            (2) use funds provided under the grant for such progress 
        reporting.
    (d) Reports.--
            (1) In general.--Each eligible entity that receives a grant 
        under section 4 shall annually, for each year of the grant, 
        provide a report to the Secretary that includes the progress of 
        the eligible entity in accomplishing the performance measures 
        for the eligible entity. The annual report shall include--
                    (A) information on the progress each eligible 
                entity made in accomplishing its performance measures, 
                disaggregated by the categories described in section 
                1111(b)(2)(C)(v)(II) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6311(b)(2)(C)(v)(II));
                    (B) the costs of the activities supported under the 
                grant under section 4, including--
                            (i) the type of cost, such as cash, 
                        personnel, equipment, supplies, or materials, 
                        or other cost;
                            (ii) the sources used to pay such costs, 
                        such as--
                                    (I) funding from other Federal, 
                                State, or local public programs; or
                                    (II) private sector or 
                                philanthropic contributions; and
                            (iii) the dollar value of the resources 
                        leveraged to cover such costs and support the 
                        activities;
                    (C) any fiscal and management accountability 
                information required by the Secretary, which 
                information shall use sound financial and management 
                practices;
                    (D) the characteristics and number of disconnected 
                youth served by the services and activities provided 
                under the grant; and
                    (E) the services and supports provided under the 
                grant.
            (2) Valid and reliable information.--In preparing the 
        reports under this subsection, each eligible entity shall 
        establish procedures, consistent with guidelines issued by the 
        Secretary, to ensure that the information contained in the 
        reports is valid and reliable.
    (e) Evaluation.--Not later than 90 days after the date of enactment 
of this Act, the Secretary shall award a grant or a contract to an 
entity outside the Department of Labor for an evaluation of the 
activities assisted under the grants awarded under section 4. Such 
evaluation shall--
            (1) evaluate a subgroup of eligible entities that received 
        a grant under section 4;
            (2) include an analysis and documentation of the strategies 
        implemented by the eligible entities assisted under the grants 
        awarded under section 4 and the key lessons learned, as such 
        lessons relate to program design, systems coordination, and 
        implementation;
            (3) measure the outcomes, and progress toward the outcomes, 
        of the strategies implemented under the grants under section 4 
        in terms of the interim and transitional indicators of 
        performance under subsection (b)(2), and if feasible, the long-
        term indicators of performance under such subsection;
            (4) document the incremental progress of such young people 
        over time on the outcomes measured under paragraph (3);
            (5) measure the return on investment resulting from the 
        activities funded with grants under section 4; and
            (6) begin as soon as practicable after the awarding of the 
        grant or contract under this section and continue throughout 
        the duration of the periods of the grants under section 4 so 
        that the plans included in the applications under section 5 may 
        be informed by, and conducive to, the evaluation.

SEC. 11. TECHNICAL ASSISTANCE AND BEST PRACTICES.

    The Secretary shall--
            (1) in consultation with the Federal Youth Development 
        Council, the Coordinating Council on Juvenile Justice and 
        Delinquency Prevention established under section 206 of the 
        Juvenile Justice and Delinquency Prevention Act of 1974 (42 
        U.S.C. 5616), the Shared Youth Vision, and other related 
        agencies, disseminate best practices that emerge from the 
        programs assisted under this Act in identifying disconnected 
        youth, and in implementing effective public and private 
        strategies for preparing such young people to be successful 
        students, workers, and citizens during and after implementation 
        of the program; and
            (2) provide, directly or through a grant or contract with 1 
        or more nonprofit organizations selected through a competitive 
        process, training, technical assistance, and professional 
        development for organizations serving disconnected youth, 
        including organizations serving such disconnected youth that do 
        not receive funding under this Act.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this Act such sums as may be necessary for each of the fiscal years 
2014 through 2018.
    (b) Allocation.--Of the amounts appropriated to carry out this 
section for each fiscal year, the Secretary shall use--
            (1) not less than 90 percent of such amount for grants to 
        eligible entities under section 4 and section 9; and
            (2) a total of not more than 10 percent of such amount for 
        the evaluation under section 10(b) and the training, technical 
        assistance, and dissemination of best practices under section 
        11.
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