```

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2038 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2038

To provide for the extension of certain unemployment benefits, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 25, 2014

   Mr. Thune introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To provide for the extension of certain unemployment benefits, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Solutions to Long-Term Unemployment 
Act''.

   TITLE I--EXEMPTION FROM AFFORDABLE CARE ACT MANDATE FOR LONG-TERM 
                               UNEMPLOYED

SEC. 101. LONG-TERM UNEMPLOYED INDIVIDUALS NOT TAKEN INTO ACCOUNT FOR 
              EMPLOYER HEALTH CARE COVERAGE MANDATE.

    (a) In General.--Paragraph (4) of section 4980H(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(C) Exception for long-term unemployed 
                individuals.--The term `full-time employee' shall not 
                include any individual who is a long-term unemployed 
                individual (as defined in section 3111(d)(3)) with 
                respect to such employer.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to months beginning after December 31, 2013.

    TITLE II--EMPLOYER PAYROLL TAX HOLIDAY FOR LONG-TERM UNEMPLOYED

SEC. 201. EMPLOYER PAYROLL TAX HOLIDAY FOR LONG-TERM UNEMPLOYED 
              INDIVIDUALS.

    (a) In General.--Subsection (d) of section 3111 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(d) Special Rule for Long-Term Unemployed Individuals.--
            ``(1) In general.--Subsection (a) shall not apply to wages 
        paid by a qualified employer with respect to employment during 
        the applicable period of any long-term unemployed individual 
        for services performed--
                    ``(A) in a trade or business of such employer, or
                    ``(B) in the case of an employer exempt from 
                taxation under section 501(a), in furtherance of 
                activities related to the purpose or function 
                constituting the basis of the employer's exemption 
                under section 501.
            ``(2) Qualified employer.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified employer' 
                means any employer other than the United States, any 
                State, or any political subdivision thereof, or any 
                instrumentality of the foregoing.
                    ``(B) Treatment of employees of post-secondary 
                educational institutions.--Notwithstanding subparagraph 
                (A), the term `qualified employer' includes any 
                employer which is a public institution of higher 
                education (as defined in section 101(b) of the Higher 
                Education Act of 1965).
            ``(3) Long-term unemployed individual.--For purposes of 
        this subsection, the term `long-term unemployed individual' 
        means, with respect to any employer, an individual who--
                    ``(A) begins employment with such employer after 
                the date of the enactment of the Solutions to Long-Term 
                Unemployment Act, and
                    ``(B) has been unemployed for 27 weeks or longer, 
                as determined by the Secretary of Labor, immediately 
                before the date such employment begins.
            ``(4) Applicable period.--The term `applicable period' 
        means the period beginning on the date of the enactment of the 
        Solutions to Long-Term Unemployment Act, and ending on the 
        earlier of--
                    ``(A) the date that is 2 years after such date of 
                enactment, or
                    ``(B) the first day of the first month after the 
                date on which the Secretary of Labor certifies that the 
                total number of individuals in the United States who 
                have been unemployed for 27 weeks or longer is less 
                than 2,000,000.
            ``(5) Election.--An employer may elect to have this 
        subsection not apply. Such election shall be made in such 
        manner as the Secretary may require.''.
    (b) Coordination With Work Opportunity Credit.--Section 51(c)(5) of 
the Internal Revenue Code of 1986 is amended to read as follows:
            ``(5) Coordination with payroll tax forgiveness.--The term 
        `wages' shall not include any amount paid or incurred to a 
        long-term unemployed individual (as defined in section 
        3111(d)(3)) during the 1-year period beginning on the hiring 
        date of such individual by a qualified employer (as defined in 
        section 3111(d)) unless such qualified employer makes an 
        election not to have section 3111(d) apply.''.
    (c) Transfers to Federal Old-Age and Survivors Insurance Trust 
Fund.--There are hereby appropriated to the Federal Old-Age and 
Survivors Trust Fund and the Federal Disability Insurance Trust Fund 
established under section 201 of the Social Security Act (42 U.S.C. 
401) amounts equal to the reduction in revenues to the Treasury by 
reason of the amendments made by subsection (a). Amounts appropriated 
by the preceding sentence shall be transferred from the general fund at 
such times and in such manner as to replicate to the extent possible 
the transfers which would have occurred to such Trust Fund had such 
amendments not been enacted.
    (d) Application to Railroad Retirement Taxes.--
            (1) In general.--Subsection (c) of section 3221 of the 
        Internal Revenue Code of 1986 is amended to read as follows:
    ``(c) Special Rule for Long-Term Unemployed Individuals.--
            ``(1) In general.--In the case of compensation paid by an 
        employer during the applicable period, with respect to having a 
        long-term unemployed individual in the employer's employ for 
        services rendered to such employer, the applicable percentage 
        under subsection (a) shall be equal to the rate of tax in 
        effect under section 3111(b) for the calendar year.
            ``(2) Qualified employer.--For purposes of this subsection, 
        the term `qualified employer' means any employer other than the 
        United States, any State, or any political subdivision thereof, 
        or any instrumentality of the foregoing.
            ``(3) Long-term unemployed individual.--For purposes of 
        this subsection, the term `long-term unemployed individual' 
        means, with respect to any employer, an individual who--
                    ``(A) begins employment with such employer after 
                the date of the enactment of the Solutions to Long-Term 
                Unemployment Act, and
                    ``(B) has been unemployed for 27 weeks or longer, 
                as determined by the Secretary of Labor, immediately 
                before the date such employment begins.
            ``(4) Applicable period.--The term `applicable period' 
        means the period beginning on the date of the enactment of the 
        Solutions to Long-Term Unemployment Act, and ending on the 
        earlier of--
                    ``(A) the date that is 2 years after such date of 
                enactment, or
                    ``(B) the first day of the first month after the 
                date on which the Secretary of Labor certifies that the 
                total number of individuals in the United States who 
                have been unemployed for 27 weeks or longer is less 
                than 2,000,000.
            ``(5) Election.--An employer may elect to have this 
        subsection not apply. Such election shall be made in such 
        manner as the Secretary may require.''.
            (2) Transfers to social security equivalent benefit 
        account.--There are hereby appropriated to the Social Security 
        Equivalent Benefit Account established under section 15A(a) of 
        the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a)) 
        amounts equal to the reduction in revenues to the Treasury by 
        reason of the amendments made by paragraph (1). Amounts 
        appropriated by the preceding sentence shall be transferred 
        from the general fund at such times and in such manner as to 
        replicate to the extent possible the transfers which would have 
        occurred to such Account had such amendments not been enacted.
    (e) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this subsection shall apply to wages paid 
        after the date of the enactment of this Act.
            (2) Railroad retirement taxes.--The amendments made by 
        subsection (d) shall apply to compensation paid after the date 
        of the enactment of this Act.

                 TITLE III--EMPLOYMENT RELOCATION LOANS

SEC. 301. EMPLOYMENT RELOCATION LOANS.

    (a) Loans Authorized.--From amounts made available to carry out 
this section, the Secretary may issue loans, with the interest rates, 
terms, and conditions provided in this section, to long-term unemployed 
individuals selected from applications submitted under subsection 
(b)(1), in order to enable each selected individual to relocate to--
            (1) a residence more than 50 miles away from the 
        individual's initial residence, to allow such individual to 
        begin a new job for which the individual has received and 
        accepted an offer of employment; or
            (2) a residence in a State or metropolitan area that--
                    (A) is not the State or metropolitan area of the 
                individual's initial residence; and
                    (B) has an unemployment rate that is 2 or more 
                percentage points less than the unemployment rate of 
                the State or metropolitan area, respectively, of the 
                individual's initial residence.
    (b) Selection Process and Eligibility.--
            (1) Application.--A long-term unemployed individual who 
        desires a loan under this section shall submit to the Secretary 
        an application at such time, in such manner, and containing 
        such information as the Secretary may require.
            (2) Limited eligibility.--A long-term unemployed individual 
        may receive only 1 loan under this section.
    (c) Loan Terms.--A loan issued under this section to a long-term 
unemployed individual shall be--
            (1) in an amount of $10,000 or less; and
            (2) evidenced by a note or other written agreement that--
                    (A) provides for repayment of the principal amount 
                of the loan in installments over a 10-year period 
                beginning on the date on which the loan is issued, 
                except that no installments shall be required for the 
                first year of the loan period;
                    (B) provides for interest to be calculated and 
                accrue on the loan at the rate determined under 
                subsection (d); and
                    (C) allows such individual to accelerate, without 
                penalty, the repayment of the whole or any part of the 
                loan.
    (d) Interest Rate.--The interest rate for a loan issued under this 
section shall--
            (1) be the rate equal to the high yield of the 10-year 
        Treasury note auctioned at the final auction held prior to the 
        date on which the loan is issued; and
            (2) be a fixed interest rate for the period of the loan.
    (e) Loan Forgiveness.--Notwithstanding subsection (c)(2)(A), the 
Secretary may forgive the remaining amount of interest and principal 
due on a loan made under this section to a long-term unemployed 
individual for the purpose described in subsection (a)(1) in any case 
where the new job for which the individual relocates is eliminated 
within the first year of the individual's employment through no fault 
of the individual.
    (f) Definitions.--In this section:
            (1) Initial residence.--The term ``initial residence'', 
        when used with respect to a long-term individual applying for a 
        loan under this section, means the location where the 
        individual resides as of the day before the loan is issued.
            (2) Long-term unemployed individual.--The term ``long-term 
        unemployed individual'' means an individual who resides in a 
        State and who has been unemployed for 27 consecutive weeks or 
        more, as determined by the Secretary.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (4) States.--The term ``State'' means each of the several 
        States of the United States and the District of Columbia.
    (g) Limited Authority.--The Secretary's authority to issue loans 
under subsection (a) shall terminate on the earlier of--
            (1) the date that is 2 years after the date of enactment of 
        this Act; or
            (2) the date that is 1 month after the date on which the 
        Secretary determines that the total number of long-term 
        unemployed individuals in the United States is less than 
        2,000,000.

    TITLE IV--SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Supporting Knowledge and Investing 
in Lifelong Skills Act'' or the ``SKILLS Act''.

SEC. 402. REFERENCES.

    Except as otherwise expressly provided, wherever in this title 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. 2801 et seq.).

SEC. 403. APPLICATION TO FISCAL YEARS.

    Except as otherwise provided, this title and the amendments made by 
this title shall apply with respect to fiscal year 2015 and succeeding 
fiscal years.

     Subtitle A--Amendment to the Workforce Investment Act of 1998

              CHAPTER 1--WORKFORCE INVESTMENT DEFINITIONS

SEC. 406. DEFINITIONS.

    Section 101 (29 U.S.C. 2801) is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) Adult education and family literacy education 
        activities.--The term `adult education and family literacy 
        education activities' has the meaning given the term in section 
        203.'';
            (2) by striking paragraphs (13) and (24);
            (3) by redesignating paragraphs (1) through (12) as 
        paragraphs (3) through (14), and paragraphs (14) through (23) 
        as paragraphs (15) through (24), respectively;
            (4) by striking paragraphs (52) and (53);
            (5) by inserting after ``In this title:'' the following new 
        paragraphs:
            ``(1) Accrued expenditures.--The term `accrued 
        expenditures' means--
                    ``(A) 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;
                    ``(B) charges incurred for services performed by 
                employees, contractors, subgrantees, subcontractors, 
                and other payees; and
                    ``(C) other amounts becoming owed, under programs 
                assisted under this title, for which no current 
                services or performance is required, such as amounts 
                for annuities, insurance claims, and other benefit 
                payments.
            ``(2) Administrative costs.--The term `administrative 
        costs' means expenditures incurred by State boards and local 
        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 that are not related to the direct provision of 
        workforce investment activities (including services to 
        participants and employers). Such costs include both personnel 
        and non-personnel expenditures and both direct and indirect 
        expenditures.'';
            (6) in paragraph (3) (as so redesignated), by striking 
        ``Except in sections 127 and 132, the'' and inserting ``The'';
            (7) 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)).'';
            (8) in paragraph (6) (as so redesignated), by inserting 
        ``(or such other level as the Governor may establish)'' after 
        ``8th grade level'';
            (9) 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 involved (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 or Governor, 
        respectively, determines to be appropriate'';
            (10) 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)--
                            (i) by striking ``134(d)(4)'' and inserting 
                        ``134(c)(4)''; and
                            (ii) 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 (as defined in section 101(d)(1) 
                of title 10, United States Code) who meets the criteria 
                described in paragraph (12)(B).'';
            (11) 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 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'';
            (12) in paragraph (13) (as so redesignated), by inserting 
        ``or regional'' after ``local'' each place it appears;
            (13) 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 117(d)(5)(C); or'';
                    (C) by striking subparagraph (C); and
                    (D) by redesignating subparagraph (D) as 
                subparagraph (C);
            (14) in paragraph (15) (as so redesignated), by striking 
        ``adult or dislocated worker'' and inserting ``individual'';
            (15) in paragraph (20), by striking ``The'' and inserting 
        ``Subject to section 116(a)(1)(E), the'';
            (16) 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;'';
                    (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 a free or 
                reduced price lunch under the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1751 et seq.);'';
            (17) in paragraph (32), by striking ``the Republic of the 
        Marshall Islands, the Federated States of Micronesia,'';
            (18) 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.'';
            (19) in paragraph (38), by striking ``134(a)(1)(A)'' and 
        inserting ``134(a)(1)(B)'';
            (20) in paragraph (41), by striking ``, and the term means 
        such Secretary for purposes of section 503'';
            (21) in paragraph (43), by striking ``clause (iii) or (v) 
        of section 136(b)(3)(A)'' and inserting ``section 
        136(b)(3)(A)(iii)'';
            (22) 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.'';
            (23) 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).'';
            (24) in paragraph (51), by striking ``, and a youth 
        activity''; and
            (25) 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.
                            ``(v) A migrant youth.
            ``(53) Industry or sector partnership.--The term `industry 
        or sector partnership' means a partnership of--
                    ``(A) a State board or local board; and
                    ``(B) one or more industry or sector organizations, 
                and other entities, that have the capability to help 
                the State board or local board determine the immediate 
                and long-term skilled workforce needs of in-demand 
                industries or sectors 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 and is awarded for 
        completion of a program listed or identified under subsection 
        (d) or (i) of section 122, for the local area involved.
            ``(55) Pay-for-performance contract strategy.--The term 
        `pay-for-performance contract strategy' means a strategy in 
        which a pay-for-performance contract to provide a program of 
        employment and training activities incorporates provisions 
        regarding--
                    ``(A) the core indicators of performance described 
                in subclauses (I) through (IV) and (VI) of section 
                136(b)(2)(A)(i);
                    ``(B) a fixed amount that will be paid to an 
                eligible provider of such employment and training 
                activities for each program participant who, within a 
                defined timetable, achieves the agreed-to levels of 
                performance based upon the core indicators of 
                performance described in subparagraph (A), and may 
                include a bonus payment to such provider, which may be 
                used to expand the capacity of such provider;
                    ``(C) the ability for an eligible provider to 
                recoup the costs of providing the activities for a 
                program participant who has not achieved those levels, 
                but for whom the provider is able to demonstrate that 
                such participant gained specific competencies required 
                for education and career advancement that are, where 
                feasible, tied to industry-recognized credentials and 
                related standards, or State licensing requirements; and
                    ``(D) the ability for an eligible provider that 
                does not meet the requirements under section 122(a)(2) 
                to participate in such pay-for-performance contract and 
                to not be required to report on the performance and 
                cost information required under section 122(d).
            ``(56) Recognized postsecondary credential.--The term 
        `recognized postsecondary credential' means a credential 
        awarded by a provider of training services 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 means an industry-recognized 
        credential, a certificate of completion of a registered 
        apprenticeship program, or an associate or baccalaureate degree 
        from an institution described in section 122(a)(2)(A)(i).
            ``(57) Registered apprenticeship program.--The term 
        `registered apprenticeship program' means a program described 
        in section 122(a)(2)(B).''.

      CHAPTER 2--STATEWIDE AND LOCAL WORKFORCE INVESTMENT SYSTEMS

SEC. 411. 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 taxpayer funds.''.

SEC. 412. 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, 
                                each of which has immediate and long-
                                term employment opportunities in an in-
                                demand industry or other occupation 
                                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
                                    (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, the State 
        board shall develop a State plan.
            ``(2) Statewide workforce development system.--The State 
        board shall 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 amounts for additional activities or 
        programs into the Workforce Investment Fund in accordance with 
        section 501(e).
            ``(3) Workforce and labor market information system.--The 
        State board shall develop a statewide workforce and labor 
        market information system described in section 15(e) of the 
        Wagner-Peyser Act (29 U.S.C. 49l-2(e)), which may include using 
        information collected under Federal law other than this Act by 
        the State economic development entity or a related entity in 
        developing such system.
            ``(4) Employer engagement.--The State board shall 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.--The State board shall 
        designate local areas as required under section 116.
            ``(6) One-stop delivery system.--The State board shall 
        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.--The State board shall conduct the 
        following program oversight:
                    ``(A) Reviewing and approving local plans under 
                section 118.
                    ``(B) Ensuring the appropriate use and 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.--The State board 
        shall 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 any 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. 413. 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 services providers in accordance 
        with section 122, including how the State will take into 
        account the performance of providers and whether the training 
        services relate to in-demand industries and other occupations 
        important to the State economy;'';
                    (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 and an assurance regarding 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) an assurance 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 1 
                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)(3)'';
                    (K) in paragraph (16) (as so redesignated)--
                            (i) in subparagraph (A)--
                                    (I) in clause (ii)--
                                            (aa) by striking ``to 
                                        dislocated workers''; and
                                            (bb) by inserting ``and 
                                        additional assistance'' after 
                                        ``rapid response activities'';
                                    (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 Federal and State 
                        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, refugees 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 No. 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 (29 U.S.C. 794, 794d), include the 
                                provision of outreach, intake, 
                                assessments, and service delivery, the 
                                development of performance measures, 
                                the training of staff, and other 
                                aspects of accessibility for 
                                individuals with disabilities 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 activities;
            ``(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 a targeted cluster of multiple firms for a range 
        of workers employed or potentially employed by the industry or 
        sector--
                    ``(A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in the industry or sector;
                    ``(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 and sectors;
            ``(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 by the State 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 nonprofit 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 costs of 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, such as 
        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, including training in advanced manufacturing, 
                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 in and expedite reintegration of 
                homeless veterans into the labor force; and
                    ``(C) the veterans population to be served in the 
                State.'';
            (3) in subsection (c), by striking ``period, that--'' and 
        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. 414. LOCAL WORKFORCE INVESTMENT AREAS.

    Section 116 (29 U.S.C. 2831) is amended--
            (1) in subsection (a)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--
                    ``(A) Process.--In order to receive an allotment 
                under section 132, a State, through the State board, 
                shall establish a process to designate local workforce 
                investment areas within the State. Such process shall--
                            ``(i) support the statewide workforce 
                        development system developed under section 
                        111(d)(2), enabling the system to meet the 
                        workforce needs of the State and its local 
                        areas;
                            ``(ii) include consultation, prior to the 
                        designation, with chief elected officials;
                            ``(iii) include consideration of comments 
                        received on the designation through the public 
                        comment process as described in section 
                        112(b)(9); and
                            ``(iv) require the submission of an 
                        application for approval under subparagraph 
                        (B).
                    ``(B) Application.--To obtain designation of a 
                local area under this paragraph, a local or regional 
                board (or consortia of local or regional boards) 
                seeking to take responsibility for the area under this 
                Act shall submit an application to a State board at 
                such time, in such manner, and containing such 
                information as the State board may require, including--
                            ``(i) a description of the local area, 
                        including the population that will be served by 
                        the local area, and the education and training 
                        needs of its employers and workers;
                            ``(ii) a description of how the local area 
                        is consistent or aligned with--
                                    ``(I) service delivery areas (as 
                                determined by the State);
                                    ``(II) labor market areas; and
                                    ``(III) economic development 
                                regions;
                            ``(iii) a description of the eligible 
                        providers of education and training, including 
                        postsecondary educational institutions such as 
                        community colleges, located in the local area 
                        and available to meet the needs of the local 
                        workforce;
                            ``(iv) a description of the distance that 
                        individuals will need to travel to receive 
                        services provided in such local area; and
                            ``(v) any other criteria that the State 
                        board may require.
                    ``(C) Priority.--In designating local areas under 
                this paragraph, a State board shall give priority 
                consideration to an area proposed by an applicant 
                demonstrating that a designation as a local area under 
                this paragraph will result in the reduction of 
                overlapping service delivery areas, local market areas, 
                or economic development regions.
                    ``(D) Alignment with local plan.--A State may 
                designate an area proposed by an applicant as a local 
                area under this paragraph for a period not to exceed 3 
                years.
                    ``(E) References.--For purposes of this Act, a 
                reference to a local area--
                            ``(i) used with respect to a geographic 
                        area, refers to an area designated under this 
                        paragraph; and
                            ``(ii) used with respect to an entity, 
                        refers to the applicant.'';
                    (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);
                    (D) by striking paragraph (4);
                    (E) by redesignating paragraph (5) as paragraph 
                (3); and
                    (F) in paragraph (3) (as so redesignated), by 
                striking ``(2) or (3)'' both places it appears and 
                inserting ``(1)'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Single States.--Consistent with subsection (a), the State 
board of a State may designate the 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. 415. 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, each of which has 
                        immediate and long-term employment 
                        opportunities in an in-demand industry or other 
                        occupation 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) the superintendent or other employee 
                        of the local educational agency who has primary 
                        responsibility for secondary education, the 
                        presidents or chief executive officers of 
                        postsecondary educational institutions 
                        (including a community college, where such an 
                        entity exists), or administrators of local 
                        entities providing adult education and family 
                        literacy education activities;
                            ``(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) in subsection (c)--
                    (A) in paragraph (1), by striking subparagraph (C); 
                and
                    (B) in paragraph (3)(A)(ii), by striking 
                ``paragraphs (1) through (7)'' and inserting 
                ``paragraphs (1) through (8)'';
            (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 (29 U.S.C. 49l-2(e)).
                    ``(B) Existing analysis.--In carrying out 
                requirements of subparagraph (A)(i), a local board 
                shall use an existing analysis, if any, by the local 
                economic development entity or related entity.
            ``(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 entities, 
        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.--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 
                        clause (i).
                            ``(iii) Disbursal.--The local grant 
                        recipient or an entity designated under clause 
                        (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 clause 
                        (ii) shall disburse the funds immediately on 
                        receiving such direction from the local board.
                    ``(C) Staff.--The local board may employ staff to 
                assist in carrying out the functions described in this 
                subsection.
                    ``(D) 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, annually review the outcomes of such eligible 
                providers using the criteria under section 122(b)(2), 
                and designate such eligible providers in the local area 
                who have demonstrated the highest level of success with 
                respect to such criteria as priority eligible providers 
                for the program year following the review.
                    ``(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 and 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 access 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 
        any action taken'' after ``vote''; and
            (7) by striking subsections (h) and (i).

SEC. 416. 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 subclauses 
        (I) through (IV) of 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 described in section 
                117(d)(8) and 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 activities; and
                    ``(D) to better coordinate workforce development 
                programs with employment, training, and literacy 
                services carried out by nonprofit organizations, 
                including public 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 or sector--
                    ``(A) to encourage industry growth and 
                competitiveness and to improve worker training, 
                retention, and advancement in the targeted industry or 
                sector;
                    ``(B) to address the immediate and long-term 
                skilled workforce needs of in-demand industries, small 
                businesses, and other occupations important to the 
                local economy; and
                    ``(C) to address critical skill gaps within and 
                across industries and sectors;
            ``(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 workforce investment activities, as appropriate;
            ``(7) a description of how the local area will--
                    ``(A) coordinate activities with the local area's 
                disability community, and with transition services (as 
                defined under section 602 of the Individuals with 
                Disabilities Education Act (20 U.S.C. 1401)) provided 
                under that Act 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 No. 13217 (42 U.S.C. 12131 note), serve the 
                employment and training needs of individuals with 
                disabilities, with a focus on employment that fosters 
                independence and integration into the workplace; and
                    ``(C) consistent with sections 504 and 508 of the 
                Rehabilitation Act of 1973 (29 U.S.C. 794, 794d), 
                include the provision of outreach, intake, assessments, 
                and service delivery, the development of performance 
                measures, the training of staff, and other aspects of 
                accessibility for individuals with disabilities 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 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 Federal and State 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, refugees 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 section 
        117(d)(4)(B)(iii), 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, 
        such as 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 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, including training in advanced manufacturing, 
                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 in 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 completed related training by the 
                National Veterans' Employment and Training Services 
                Institute; and
            ``(15) such other information as the Governor may 
        require.''; and
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``such means'' 
                and inserting ``electronic means and such means''; and
                    (B) in paragraph (2), by striking ``, including 
                representatives of business and representatives of 
                labor organizations,''.

SEC. 417. 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 a one-stop 
                        delivery system to the program or activities 
                        carried out by the entity, including making the 
                        work ready services described in section 
                        134(c)(2) that are applicable to the program or 
                        activities of the entity available at one-stop 
                        centers (in addition to any other appropriate 
                        locations);
                            ``(ii) use a portion of the funds available 
                        to the program or activities of the entity to 
                        maintain the one-stop delivery system, 
                        including payment of the costs of 
                        infrastructure 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 program or activities carried out by the 
                        entity.'';
                    (B) in paragraph (1)(B)--
                            (i) by striking clauses (ii), (v), and 
                        (vi);
                            (ii) by redesignating clauses (iii) and 
                        (iv) as clauses (ii) and (iii), respectively;
                            (iii) by redesignating clauses (vii) 
                        through (xii) as clauses (iv) through (ix), 
                        respectively;
                            (iv) in clause (ii), as so redesignated, by 
                        striking ``adult education and literacy 
                        activities'' and inserting ``adult education 
                        and family literacy education activities'';
                            (v) in clause (viii), as so redesignated, 
                        by striking ``and'' at the end;
                            (vi) in clause (ix), as so redesignated, by 
                        striking the period and inserting ``; and''; 
                        and
                            (vii) by adding at the end the following:
                            ``(x) subject to subparagraph (C), programs 
                        authorized under part A of title IV of the 
                        Social Security Act (42 U.S.C. 601 et seq.).'';
                    (C) by inserting after paragraph (1)(B) the 
                following:
                    ``(C) Determination by the governor.--Each entity 
                carrying out a program described in subparagraph (B)(x) 
                shall be considered to be a one-stop partner under this 
                title and carry out the required partner activities 
                described in subparagraph (A) unless the Governor of 
                the State in which the local area is located provides 
                the Secretary and Secretary of Health and Human 
                Services written notice of a determination by the 
                Governor that such an entity shall not be considered to 
                be such a partner and shall not carry out such required 
                partner activities.''; and
                    (D) 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 (i), (ii), 
                                and (v);
                                    (II) in clause (iv), by striking 
                                ``and'' at the end;
                                    (III) by redesignating clauses 
                                (iii) and (iv) as clauses (i) and (ii), 
                                respectively; and
                                    (IV) by adding at the end the 
                                following:
                            ``(iii) employment and training programs 
                        administered by the Commissioner of the Social 
                        Security Administration;
                            ``(iv) employment and training programs 
                        carried out by the Administrator of the Small 
                        Business Administration;
                            ``(v) employment, training, and literacy 
                        services carried out by public libraries; and
                            ``(vi) 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 costs of 
                        infrastructure 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 training 
                        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 3-
                        year period to ensure appropriate funding and 
                        delivery of services under the memorandum; 
                        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 paragraph (4) of section 134(c), including 
                serving as the point of access to career enhancement 
                accounts for training services to participants in 
                accordance with paragraph (4)(F) 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); and
                    ``(E) provide access to the data and information 
                described in subparagraphs (A) and (B) of section 
                15(a)(1) of the Wagner-Peyser Act (29 U.S.C. 49l-
                2(a)(1)).
            ``(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 certifying, at 
                least once every 3 years, one-stop centers for the 
                purpose of awarding the one-stop infrastructure funding 
                described in subsection (h).
                    ``(B) Criteria.--The criteria for certification of 
                a one-stop center under this subsection shall include--
                            ``(i) meeting the expected levels of 
                        performance for each of the corresponding 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 center, involving the programs 
                        provided by the one-stop partners; and
                            ``(iii) meeting minimum standards relating 
                        to how the center ensures 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 funding authorized under 
                subsection (h).
            ``(2) Local boards.--Consistent with the criteria developed 
        by the State, the local board may develop, for certification 
        referred to in paragraph (1)(A), additional criteria or higher 
        standards on the criteria referred to in paragraph (1)(B) 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 
                subsection (b)(2)(B), for a fiscal year shall be 
                provided to the Governor by such partners 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 in the State by 
                        each such partner, the costs of administration 
                        for purposes not related to one-stop centers 
                        for each such partner, and other relevant 
                        factors described in paragraph (3).
                            ``(ii) Special rule.--In those States where 
                        the State constitution places policymaking 
                        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 family literacy education 
                        activities authorized under title II and for 
                        postsecondary career and technical education 
                        activities authorized under the Carl D. Perkins 
                        Career and Technical Education Act of 2006 (20 
                        U.S.C. 2301 et seq.), the determination 
                        described in clause (i) with respect to the 
                        corresponding 2 programs shall be made by the 
                        Governor with the appropriate entity or 
                        official with such independent policymaking 
                        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) and subparagraph 
                        (A) to appeal a determination regarding the 
                        portion of funds to be provided under this 
                        paragraph on the basis that such determination 
                        is inconsistent with the requirements described 
                        in the State plan for the program 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 a 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 program that may be used for 
                        administration.
                            ``(ii) Federal direct spending programs.--
                                    ``(I) In general.--A program that 
                                provides 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 more than the 
                                maximum amount determined under 
                                subclause (II).
                                    ``(II) Maximum amount.--The maximum 
                                amount for the program is the amount 
                                that bears the same relationship to the 
                                costs referred to in paragraph (2) for 
                                the State as the use of the one-stop 
                                centers by such program bears to the 
                                use of such centers by all one-stop 
                                partner 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 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 
        provided under paragraph (1) to local areas. The formula shall 
        include such factors as the State board determines are 
        appropriate, which may include factors such as the number of 
        centers in a 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 involved, and 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 under 
        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 2 types of 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. Such portion shall be used to pay for 
        costs including--
                    ``(A) costs of infrastructure (as defined in 
                subsection (h)) that are in excess of the funds 
                provided under subsection (h);
                    ``(B) common costs that are in addition to the 
                costs of infrastructure (as so defined); and
                    ``(C) the costs of the provision of work ready 
                services applicable to each program.
            ``(2) Determination and standards.--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 standards 
        to facilitate the determination of appropriate allocation of 
        the funds and noncash resources to local areas.''.

SEC. 418. 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 and 
        be included on the list of eligible providers of training 
        services described in subsection (d).
            ``(2) Providers.--Subject to the provisions of this 
        section, to be eligible to receive the funds and be included on 
        the list, 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 a 
                        recognized postsecondary credential;
                    ``(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 
        subsection to be eligible to receive the funds and be included 
        on the list. A provider described in paragraph (2)(B) shall be 
        eligible to receive the funds and be included on the list with 
        respect to programs described in paragraph (2)(B) for so long 
        as the provider remains certified by the Secretary of Labor to 
        carry out the programs.
    ``(b) Criteria.--
            ``(1) In general.--The criteria established by the Governor 
        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, measures for 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;
                    ``(B) whether the training programs of such 
                providers relate to in-demand industries or occupations 
                important to the local economy;
                    ``(C) the need to ensure access to training 
                services throughout the State, including in rural 
                areas;
                    ``(D) the ability of the providers to offer 
                programs that lead to a recognized postsecondary 
                credential, and the quality of such programs;
                    ``(E) the performance of the providers as reflected 
                in 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 recognized postsecondary 
                credentials 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.
            ``(3) Renewal.--The criteria established by the Governor 
        shall also provide for a review on the criteria every 3 years 
        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 on the criteria established by the Governor, for 
        purposes of determining the eligibility of providers of 
        training services under this section in the local area 
        involved.
            ``(5) Limitation.--In carrying out the requirements of this 
        subsection, no entity may disclose personally identifiable 
        information regarding a student, including a Social Security 
        number, student identification number, or other identifier, 
        without the prior written consent of the parent or 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 under this 
                section; 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.--In 
order to facilitate and assist participants under chapter 5 in choosing 
providers of training services, the Governor shall ensure that an 
appropriate list of providers determined eligible under this section in 
the State, including information provided under subsection (b)(2) with 
respect to such providers, is provided to the local boards in the State 
and is 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 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 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 under this section 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 procedures, that a provider of training services 
                substantially violated any requirement under this 
                title, the eligibility of such provider under this 
                section shall be terminated for a period of time that 
                is not less than 10 years.
                    ``(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. For 
                purposes of subparagraph (A), that period shall be 
                considered to be the period beginning on the date on 
                which the inaccurate information described in 
                subparagraph (A) was supplied, and ending on the date 
                of the termination described in subparagraph (A).
            ``(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.--A State may enter into an 
agreement with another State, on a reciprocal basis, to permit eligible 
providers of training services to accept career enhancement accounts 
provided in the other State.
    ``(g) Recommendations.--In developing the criteria (including 
requirements for related information) and procedures 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 and procedures, 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 list.
    ``(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 under this section, to be providers of 
        the training services involved.''.

SEC. 419. 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. 420. 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 1 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 25 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 3.5 percent of the total amount 
        appropriated under section 137 for a fiscal year to--
                    ``(A) make grants to State boards or local boards 
                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; and
                    ``(B) provide assistance to Governors of States 
                with an area that has suffered an emergency or a major 
                disaster (as such terms are 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)) to provide disaster relief employment 
                in the area; 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 
                paragraph 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 
                108-188)) after the date of enactment of the SKILLS 
                Act.
            ``(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) each of fiscal years 2015 
                                through 2017, that is less than 100 
                                percent of the allotment percentage of 
                                the State for fiscal year 2013; and
                                    ``(II) fiscal year 2018 and each 
                                succeeding fiscal year, that is less 
                                than 90 percent of the allotment 
                                percentage of the State for the fiscal 
                                year preceding the fiscal year 
                                involved.
                            ``(ii) Maximum percentage.--Subject to 
                        clause (i), the Secretary shall ensure that no 
                        State shall receive an allotment under this 
                        paragraph for--
                                    ``(I) each of fiscal years 2015 
                                through 2017, that is more than 130 
                                percent of the allotment percentage of 
                                the State for fiscal year 2013; and
                                    ``(II) fiscal year 2018 and each 
                                succeeding fiscal year, that is more 
                                than 130 percent of the allotment 
                                percentage of the State for the fiscal 
                                year preceding the fiscal year 
                                involved.
                    ``(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 \1/5\ 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 2013, means the percentage of the 
                                amounts allotted to States under title 
                                I of this Act, title V of the Older 
                                Americans Act of 1965 (42 U.S.C. 3056 
                                et seq.), the Women in Apprenticeship 
                                and Nontraditional Occupations Act (29 
                                U.S.C. 2501 et seq.), sections 4103A 
                                and 4104 of title 38, United States 
                                Code, and sections 1 through 14 of the 
                                Wagner-Peyser Act (29 U.S.C. 49 et 
                                seq.), as such provisions were in 
                                effect for fiscal year 2013, that is 
                                received under such provisions by the 
                                State involved for fiscal year 2013; 
                                and
                                    ``(II) used with respect to fiscal 
                                year 2017 or a succeeding fiscal year, 
                                means the percentage of the amounts 
                                allotted to States under this paragraph 
                                for the fiscal year, that is received 
                                under this paragraph by the State 
                                involved for the fiscal year.
                            ``(ii) 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 7 percent for the most 
                        recent 12 months, as determined by the 
                        Secretary. For purposes of this clause, 
                        determinations of areas of substantial 
                        unemployment shall be made once each fiscal 
                        year.
                            ``(iii) 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 receives 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.
                            ``(iv) Individual.--The term `individual' 
                        means an individual who is age 16 or older.''.

SEC. 421. WITHIN STATE ALLOCATIONS.

    Section 133 (29 U.S.C. 2863) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Reservations for Statewide Workforce Investment Activities.--
            ``(1) Statewide employment and training activities.--The 
        Governor of a State shall reserve not more than 15 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 section 134(a).
            ``(2) Statewide rapid response activities and additional 
        assistance.--Of the amount reserved under paragraph (1) for a 
        fiscal year, the Governor of the State shall reserve not more 
        than 25 percent for statewide rapid response activities and 
        additional assistance described in section 134(a)(4).
            ``(3) Statewide grants for individuals with barriers to 
        employment.--Of the amount reserved under paragraph (1) for a 
        fiscal year, the Governor of the State shall reserve 15 percent 
        to carry out statewide activities described in section 
        134(a)(5).
            ``(4) State administrative cost limit.--Not more than 5 
        percent of the funds reserved under paragraph (1) may be used 
        by the Governor of the State for administrative costs of 
        carrying out the statewide activities described in section 
        134(a).'';
            (2) by amending subsection (b) to read as follows:
    ``(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 in the State, shall--
                    ``(A) allocate the funds that are allotted to the 
                State under section 132(b)(2) 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)(2)(B)(iii); and
                            ``(iv) 25 percent on the basis described in 
                        section 132(b)(2)(B)(iv),
                except that a reference in a section specified in any 
                of clauses (i) through (iv) to `each State' shall be 
                considered to refer to each local area, and to `all 
                States' shall be considered to refer to all local 
                areas.
                    ``(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) each of fiscal years 2015 
                                through 2017, that is less than 100 
                                percent of the allocation percentage of 
                                the local area for fiscal year 2013; 
                                and
                                    ``(II) fiscal year 2018 and each 
                                succeeding fiscal year, that is less 
                                than 90 percent of the allocation 
                                percentage of the local area for the 
                                fiscal year preceding the fiscal year 
                                involved.
                            ``(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--
                                    ``(I) each of fiscal years 2015 
                                through 2017, that is more than 130 
                                percent of the allocation percentage of 
                                the local area for fiscal year 2013; 
                                and
                                    ``(II) fiscal year 2018 and each 
                                succeeding fiscal year, that is more 
                                than 130 percentage of the allocation 
                                percentage of the local area for the 
                                fiscal year preceding the fiscal year 
                                involved.
                    ``(C) Definitions.--For the purpose of the formula 
                specified in this paragraph, the term `allocation 
                percentage'--
                            ``(i) used with respect to fiscal year 
                        2013, 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 
                        (42 U.S.C. 3056 et seq.), the Women in 
                        Apprenticeship and Nontraditional Occupations 
                        Act (29 U.S.C. 2501 et seq.), sections 4103A 
                        and 4104 of title 38, United States Code, and 
                        sections 1 through 14 of the Wagner-Peyser Act 
                        (29 U.S.C. 49 et seq.), as such provisions were 
                        in effect for fiscal year 2013, that is 
                        received under such provisions by the local 
                        area involved for fiscal year 2013; and
                            ``(ii) used with respect to fiscal year 
                        2017 or a succeeding fiscal year, means the 
                        percentage of the amounts allocated to local 
                        areas under this paragraph for the fiscal year, 
                        that is received under this paragraph by the 
                        local area involved 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 amount 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. 422. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.

    Section 134 (29 U.S.C. 2864) 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) and not reserved under paragraph (2) 
                or (3) of section 133(a)--
                            ``(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 and 
                additional assistance.--Funds reserved by a Governor 
                for a State as described in section 133(a)(2) shall be 
                used to provide the statewide rapid response activities 
                and additional assistance described in paragraph (4).
                    ``(C) Statewide grants for individuals with 
                barriers to employment.--Funds reserved by a Governor 
                for a State as described in section 133(a)(3) shall be 
                used to award statewide grants for individuals with 
                barriers to employment on a competitive basis, and 
                carry out other activities, as described in paragraph 
                (5).
            ``(2) Required statewide employment and training 
        activities.--A State shall use funds referred to in paragraph 
        (1)(A) to carry out statewide employment and training 
        activities, which shall include--
                    ``(A) disseminating the State list of eligible 
                providers of training services described in section 
                122(d), information identifying eligible providers of 
                on-the-job training and customized training described 
                in section 122(i), and performance information and 
                program cost information described in section 
                122(b)(2);
                    ``(B) supporting the provision of work ready 
                services described in subsection (c)(2) in the one-stop 
                delivery system;
                    ``(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, recognized postsecondary credentials, and 
                employment experience to succeed in the labor market;
                    ``(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;
                    ``(E) providing technical assistance to local areas 
                that fail to meet local performance measures;
                    ``(F) operating a fiscal and management 
                accountability system under section 136(f); and
                    ``(G) carrying out monitoring and oversight of 
                activities carried out under this chapter.
            ``(3) Allowable statewide employment and training 
        activities.--A State may use funds referred to in paragraph 
        (1)(A) to carry out statewide employment and training 
        activities which may include--
                    ``(A) 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 partnership 
                initiatives, 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;
                    ``(B) providing incentive grants to local areas--
                            ``(i) for regional cooperation among local 
                        boards (including local boards in a designated 
                        region as described in section 116(c));
                            ``(ii) for local coordination of activities 
                        carried out under this Act; and
                            ``(iii) for exemplary performance by local 
                        areas on the local performance measures;
                    ``(C) developing strategies for effectively 
                integrating programs and services among one-stop 
                partners;
                    ``(D) carrying out activities to facilitate remote 
                access to services provided through a one-stop delivery 
                system, including facilitating access through the use 
                of technology;
                    ``(E) incorporating pay-for-performance contract 
                strategies as an element in funding activities under 
                this section and providing technical support to local 
                areas and eligible providers in order to carry out such 
                a strategy, which may involve providing assistance with 
                data collection and data entry requirements;
                    ``(F) carrying out the State option under 
                subsection (f)(8); and
                    ``(G) carrying out other activities authorized 
                under this section that the State determines to be 
                necessary to assist local areas in carrying out 
                activities described in subsection (c) or (d) through 
                the statewide workforce investment system.
            ``(4) Statewide rapid response activities and additional 
        assistance.--A State shall use funds reserved as described in 
        section 133(a)(2)--
                    ``(A) to carry out statewide rapid response 
                activities, which shall include 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) to provide 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 for, and conduct 
                        evaluations as described in section 136(e) of, 
                        the programs carried out under this paragraph; 
                        and
                            ``(ii) using the remainder, shall award 
                        grants on a competitive basis to eligible 
                        entities (that meet specific performance 
                        outcomes and criteria established by the 
                        Governor) described in subparagraph (B) to 
                        carry out employment and training programs 
                        authorized under this paragraph for individuals 
                        with barriers to employment.
                    ``(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 meeting specified performance 
                        outcomes and criteria established by the 
                        Governor.
                    ``(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 age 16 or 
                older.
                    ``(E) Use of funds.--An eligible entity receiving a 
                grant under this paragraph shall use the grant funds 
                for programs of activities that are designed to assist 
                eligible participants in obtaining employment and 
                acquiring the education and skills necessary to succeed 
                in the labor market. To be eligible to receive a grant 
                under this paragraph for an employment and training 
                program, 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 of the program will be aligned 
                        with the State plan submitted under section 112 
                        and the local plan submitted under section 118, 
                        with respect to the area of the State that will 
                        be the focus of the program under this 
                        paragraph;
                            ``(ii) a description of the educational and 
                        skills training programs and activities the 
                        eligible entity 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 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, with the grant funds provided, for 
                        the program under this paragraph, and how the 
                        entity will ensure the sustainability of such 
                        program after grant funds are no longer 
                        available;
                            ``(vii) a description of the extent of the 
                        involvement of employers in such program;
                            ``(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 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 program 
                        provided under this paragraph; and
                            ``(x) any other criteria the Governor may 
                        require.'';
            (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)--
            ``(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) 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) in the matter preceding subparagraph 
                        (A)--
                                    (I) by striking ``(1)(A)'' and 
                                inserting ``(1)'';
                                    (II) by striking ``core services'' 
                                and inserting ``work ready services''; 
                                and
                                    (III) by striking ``who are adults 
                                or dislocated workers'';
                            (iii) by redesignating subparagraph (K) as 
                        subparagraph (V);
                            (iv) by redesignating subparagraphs (B) 
                        through (J) as subparagraphs (C) through (K), 
                        respectively;
                            (v) by inserting after subparagraph (A) the 
                        following:
                    ``(B) assistance in obtaining eligibility 
                determinations under the other one-stop partner 
                programs through activities, where appropriate and 
                consistent with the authorizing statute of the one-stop 
                partner program involved, such as assisting in--
                            ``(i) the submission of applications;
                            ``(ii) the provision of information on the 
                        results of such applications; and
                            ``(iii) the provision of intake services 
                        and information;'';
                            (vi) by amending subparagraph (E), as so 
                        redesignated, to read as follows:
                    ``(E) 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 
                        provision of 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));'';
                            (vii) in subparagraph (F), as so 
                        redesignated, by striking ``employment 
                        statistics'' and inserting ``workforce and 
                        labor market'';
                            (viii) in subparagraph (G), as so 
                        redesignated, by striking ``and eligible 
                        providers of youth activities described in 
                        section 123,'';
                            (ix) in subparagraph (H), as so 
                        redesignated, by inserting ``under section 
                        136'' after ``local performance measures'';
                            (x) in subparagraph (J), as so 
                        redesignated, by inserting ``and information 
                        regarding the administration of the work test 
                        for the unemployment compensation system'' 
                        after ``compensation'';
                            (xi) by amending subparagraph (K), as so 
                        redesignated, to read as follows:
                    ``(K) assistance in establishing eligibility for 
                programs of financial aid assistance for education and 
                training programs that are not funded under this Act 
                and are available in the local area;''; and
                            (xii) by inserting the following new 
                        subparagraphs after subparagraph (K), as so 
                        redesignated:
                    ``(L) the provision of information from official 
                publications of the Internal Revenue Service regarding 
                Federal tax credits, available to participants in 
                employment and training activities, and relating to 
                education, job training, and employment;
                    ``(M) 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;
                    ``(N) development of an individual employment plan, 
                to identify the employment goals, appropriate 
                achievement objectives, and appropriate combination of 
                services for the participant;
                    ``(O) group counseling;
                    ``(P) individual counseling and career planning;
                    ``(Q) case management;
                    ``(R) 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;
                    ``(S) internships and work experience;
                    ``(T) literacy activities relating to basic work 
                readiness, information and communication technology 
                literacy activities, and financial literacy activities, 
                if the activities involved 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.);
                    ``(U) out-of-area job search assistance and 
                relocation assistance; 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.''; and
                    (D) in paragraph (4)--
                            (i) by amending subparagraph (A) to read as 
                        follows:
                    ``(A) In general.--Funds described in paragraph 
                (1)(C) 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).'';
                            (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 family literacy 
                        education activities provided in conjunction 
                        with other training services authorized under 
                        this subparagraph;
                            ``(vii) workplace training combined with 
                        related instruction;
                            ``(viii) occupational skills training that 
                        incorporates English language acquisition;
                            ``(ix) customized training conducted with a 
                        commitment by an employer or group of employers 
                        to employ an individual upon successful 
                        completion of the training; and
                            ``(x) training programs operated by the 
                        private sector.'';
                            (iv) by striking subparagraph (E) and 
                        redesignating subparagraphs (F) and (G) as 
                        subparagraphs (E) and (F), respectively;
                            (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'';
                                            (bb) in subclause (I), by 
                                        striking ``section 122(e)'' and 
                                        inserting ``section 122(d)'' 
                                        and by striking ``section 
                                        122(h)'' and inserting 
                                        ``section 122(i)''; and
                                            (cc) in subclause (II), by 
                                        striking ``subsections (e) and 
                                        (h)'' and inserting 
                                        ``subsections (d) and (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 from (notwithstanding any 
                        provision of this title) eligible providers for 
                        those programs and sources.
                            ``(v) Assistance.--Each local board may, 
                        through one-stop centers, assist individuals 
                        receiving career enhancement accounts in 
                        obtaining funds (in addition to the funds 
                        provided under this section) 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) by striking 
                                        ``subparagraph (F)'' and 
                                        inserting ``subparagraph (E)'';
                                            (cc) in subclause (II), by 
                                        striking ``individual training 
                                        accounts'' and inserting 
                                        ``career enhancement 
                                        accounts'';
                                            (dd) in subclause (II), by 
                                        striking ``or'' after the 
                                        semicolon;
                                            (ee) in subclause (III), by 
                                        striking the period and 
                                        inserting ``; or''; and
                                            (ff) by adding at the end 
                                        the following:
                                    ``(IV) the local board determines 
                                that it would be most appropriate to 
                                award a contract to a postsecondary 
                                educational institution that has been 
                                identified as a priority eligible 
                                provider under section 117(d)(5)(B) in 
                                order to facilitate the training of 
                                multiple individuals in in-demand 
                                industries or occupations important to 
                                the State or local economy, that such 
                                contract may be used to enable the 
                                expansion of programs provided by a 
                                priority eligible provider, and that 
                                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
                                            (bb) by 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)(2) 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 child care, 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) incorporation of pay-for-performance 
                        contract 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 local board shall 
                        establish the required payment toward such 
                        costs, which may include in-kind contributions.
                            ``(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 board and local board shall give priority to placing participants 
in jobs in the private sector.
    ``(f) Veteran Employment Specialist.--
            ``(1) In general.--Subject to paragraph (8), a local board 
        shall hire and employ one or more veteran employment 
        specialists to carry out employment, training, supportive, and 
        placement services under this subsection in the local area 
        served by the local board.
            ``(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 the furnishing of employment, 
                training, supportive, and placement services to 
                veterans, including disabled and homeless veterans, in 
                the local area.
            ``(3) Hiring preference for veterans and individuals with 
        expertise in serving veterans.--Subject to paragraph (8), a 
        local board 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 the local 
        area served by the local board. 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 service-connected disabled veterans.
                    ``(B) If no veteran described in subparagraph (A) 
                is available, to veterans.
                    ``(C) If no veteran described in subparagraph (A) 
                or (B) is available, to any member of the Armed Forces 
                transitioning out of military service.
                    ``(D) If no veteran or member described in 
                subparagraph (A), (B), or (C) is available, to any 
                spouse of a veteran or a spouse of a member of the 
                Armed Forces transitioning out of military service.
                    ``(E) If no veteran or member described in 
                subparagraph (A), (B), or (C) is available and no 
                spouse described in paragraph (D) is available, to any 
                other individuals with expertise in serving veterans.
            ``(4) Administration and reporting.--
                    ``(A) In general.--Each veteran employment 
                specialist shall be administratively responsible to the 
                one-stop operator of the one-stop center in the local 
                area and shall provide, at a minimum, quarterly reports 
                to the one-stop operator of such center and to the 
                Assistant Secretary for Veterans' Employment and 
                Training for the State on the specialist's performance, 
                and compliance by the specialist with Federal law 
                (including regulations), with respect to the--
                            ``(i) principal duties (including 
                        facilitating the furnishing of services) for 
                        veterans described in paragraph (2); and
                            ``(ii) hiring preferences described in 
                        paragraph (3) for veterans and other 
                        individuals.
                    ``(B) Report to secretary.--Each State shall submit 
                to the Secretary an annual report on the qualifications 
                used by each local board in the State in making hiring 
                determinations for a veteran employment specialist and 
                the salary structure under which such specialist is 
                compensated.
                    ``(C) Report to congress.--The Secretary shall 
                submit to the Committee on Education and the Workforce 
                and the Committee on Veterans' Affairs of the House of 
                Representatives and the Committee on Health, Education, 
                Labor, and Pensions and the Committee on Veterans' 
                Affairs of the Senate an annual report summarizing the 
                reports submitted under subparagraph (B), and including 
                summaries of outcomes achieved by participating 
                veterans, disaggregated by local areas.
            ``(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 (2) shall satisfactorily 
        complete training provided by the National Veterans' Employment 
        and Training Institute during the 3-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 employment, 
        training, supportive, and placement services under this 
        subsection, 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, supportive, and placement services under this 
        subsection.
            ``(8) State option.--At the request of a local board, a 
        State may opt to assume the duties assigned to the local board 
        under paragraphs (1) and (3), including the hiring and 
        employment of one or more veteran employment specialists for 
        placement in the local area served by the local board.''.

SEC. 423. 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) and 134, the program of adult 
                        education and family literacy education 
                        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 (with 
                        performance determined in the aggregate and as 
                        disaggregated by the populations identified in 
                        the State and local plan in each case):
                                    ``(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 difference in 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 participation in 
                                such program.
                                    ``(IV) The percentage and number of 
                                program participants who obtain a 
                                recognized postsecondary credential 
                                (such as an industry-recognized 
                                credential or a certificate from a 
                                registered apprenticeship program), or 
                                a regular secondary school diploma or 
                                its recognized equivalent (subject to 
                                clause (ii)), during participation in 
                                or within 1 year after exit from the 
                                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 (such as an 
                                        industry-recognized credential 
                                        or a certificate from a 
                                        registered apprenticeship 
                                        program), a certificate from an 
                                        on-the-job training program, a 
                                        regular secondary school 
                                        diploma or its recognized 
                                        equivalent, or unsubsidized 
                                        employment; and
                                            ``(bb) are achieving 
                                        measurable basic skill gains 
                                        toward such a credential, 
                                        certificate, diploma, or 
                                        employment.
                                    ``(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), 
                        within 1 year after exit from the program, have 
                        obtained or retained employment, have been 
                        removed from public assistance, or have begun 
                        an education or training program leading to a 
                        recognized postsecondary credential.
                    ``(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 all 3'';
                                    (IV) in clause (iii)--
                                            (aa) in the heading, by 
                                        striking ``for first 3 years''; 
                                        and
                                            (bb) by striking ``and the 
                                        customer satisfaction indicator 
                                        of performance, for the first 3 
                                        program years'' and inserting 
                                        ``for all 3 program years'';
                                    (V) in clause (iv)--
                                            (aa) by striking ``or 
                                        (v)'';
                                            (bb) by striking subclause 
                                        (I) and redesignating 
                                        subclauses (II) and (III) as 
                                        subclauses (I) and (II), 
                                        respectively; and
                                            (cc) in subclause (I) (as 
                                        so redesignated)--

                                                    (AA) by inserting 
                                                ``, such as 
                                                unemployment rates and 
                                                job losses or gains in 
                                                particular industries'' 
                                                after ``economic 
                                                conditions''; and

                                                    (BB) by inserting 
                                                ``, such as indicators 
                                                of poor work 
                                                experience, dislocation 
                                                from high-wage 
                                                employment, low levels 
                                                of literacy or English 
                                                proficiency, disability 
                                                status (including 
                                                disability status among 
                                                veterans), 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)--
                    (A) by amending clause (i) of paragraph (1)(A) to 
                read as follows:
                    ``(i) the core indicators of performance described 
                in subsection (b)(2)(A) for activities described in 
                such subsection, other than statewide workforce 
                investment activities; and'';
                    (B) in clause (ii) of paragraph (1)(A), 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 conditions (such as unemployment rates and 
        job losses or gains in particular industries), or demographic 
        characteristics or other characteristics of the population to 
        be served, in the local area.'';
            (3) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by striking ``127 or'';
                            (ii) by striking ``and the customer 
                        satisfaction indicator'' each place it appears; 
                        and
                            (iii) in the last sentence, by inserting 
                        before the period the following: ``, and on the 
                        amount and percentage of the State's annual 
                        allotment under section 132 the State spends on 
                        administrative costs and on the amount and 
                        percentage of its annual allocation under 
                        section 133 each local area in the State spends 
                        on administrative costs'';
                    (B) in paragraph (2)--
                            (i) by striking subparagraphs (A), (B), and 
                        (D);
                            (ii) by redesignating subparagraph (C) as 
                        subparagraph (A);
                            (iii) by redesignating subparagraph (E) as 
                        subparagraph (B);
                            (iv) in subparagraph (B), as so 
                        redesignated--
                                    (I) by striking ``(excluding 
                                participants who received only self-
                                service and informational 
                                activities)''; and
                                    (II) by striking ``and'' at the 
                                end;
                            (v) by striking subparagraph (F); and
                            (vi) by adding at the end the following:
                    ``(C) with respect to each local area in the 
                State--
                            ``(i) the number of individuals who 
                        received work ready services described in 
                        section 134(c)(2) and the number of individuals 
                        who received training services described in 
                        section 134(c)(4), during the most recent 
                        program year and fiscal year, and the preceding 
                        5 program years, disaggregated (for individuals 
                        who received work ready services) by the type 
                        of entity that provided the work ready services 
                        and disaggregated (for individuals who received 
                        training services) by the type of entity that 
                        provided the training services, and the amount 
                        of funds spent on each of the 2 types of 
                        services during the most recent program year 
                        and fiscal year, and the preceding 5 fiscal 
                        years;
                            ``(ii) the number of individuals who 
                        successfully exited out of work ready services 
                        described in section 134(c)(2) and the number 
                        of individuals who exited out of training 
                        services described in section 134(c)(4), during 
                        the most recent program year and fiscal year, 
                        and the preceding 5 program years, 
                        disaggregated (for individuals who received 
                        work ready services) by the type of entity that 
                        provided the work ready services and 
                        disaggregated (for individuals who received 
                        training services) by the type of entity that 
                        provided the training services; and
                            ``(iii) the average cost per participant of 
                        those individuals who received work ready 
                        services described in section 134(c)(2) and the 
                        average cost per participant of those 
                        individuals who received training services 
                        described in section 134(c)(4), during the most 
                        recent program year and fiscal year, and the 
                        preceding 5 program years, disaggregated (for 
                        individuals who received work ready services) 
                        by the type of entity that provided the work 
                        ready services and disaggregated (for 
                        individuals who received training services) by 
                        the type of entity that provided the training 
                        services; and
                    ``(D) the amount of funds spent on training 
                services and discretionary activities described in 
                section 134(d), disaggregated by the populations 
                identified under section 112(b)(16)(A)(iv) and section 
                118(b)(10).'';
                    (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 reports is valid and reliable.
            ``(5) State and local policies.--
                    ``(A) State policies.--Each State that receives an 
                allotment under section 132 shall maintain a central 
                repository of policies related to access, eligibility, 
                availability of services, and other matters, and plans 
                approved by the State board and make such repository 
                available to the public, including by electronic means.
                    ``(B) Local policies.--Each local area that 
                receives an allotment under section 133 shall maintain 
                a central repository of policies related to access, 
                eligibility, availability of services, and other 
                matters, and plans approved by the local board and make 
                such repository available to the public, including by 
                electronic means.'';
            (4) in subsection (g)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``or 
                        (B)''; and
                            (ii) in subparagraph (B), by striking ``may 
                        reduce by not more than 5 percent,'' and 
                        inserting ``shall reduce''; and
                    (B) 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)--
                    (A) in paragraph (1), by striking ``or (B)''; and
                    (B) in paragraph (2)--
                            (i) 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--'';
                            (ii) by redesignating subparagraphs (B) and 
                        (C) as subparagraphs (C) and (D), respectively;
                            (iii) 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 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.'';
                            (iv) 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 action under subparagraph (A) or 
                        (B) may, not later than 30 days after receiving 
                        notice of the action, appeal to the Governor to 
                        rescind or revise such action''; and
                            (v) in subparagraph (D) (as so 
                        redesignated), by striking ``subparagraph (B)'' 
                        each place it appears and inserting 
                        ``subparagraph (C)'';
            (6) in subsection (i)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by striking 
                        ``subsection (b)(2)(C)'' and inserting 
                        ``subsection (b)(2)(B)''; and
                            (ii) in subparagraph (C), by striking 
                        ``(b)(3)(A)(vi)'' and inserting 
                        ``(b)(3)(A)(v)'';
                    (B) in paragraph (2), by striking ``the activities 
                described in section 502 concerning''; and
                    (C) in paragraph (3), by striking ``described in 
                paragraph (1) and in the activities described in 
                section 502'' and inserting ``and activities described 
                in this subsection''; and
            (7) by adding at the end the following new subsections:
    ``(j) Use of Core Indicators for Other Programs.--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 in 
section 121(b)(1)(B) (in addition to the programs carried out under 
chapter 5) that are carried out by the Secretary.
    ``(k) Establishing Pay-for-Performance Incentives.--
            ``(1) In general.--At the discretion of the Governor of a 
        State, a State may establish an incentive system for local 
        boards to implement pay-for-performance contract strategies for 
        the delivery of employment and training activities in the local 
        areas served by the local boards.
            ``(2) Implementation.--A State that establishes a pay-for-
        performance incentive system shall reserve not more than 10 
        percent of the total amount allotted to the State under section 
        132(b)(2) for a fiscal year to provide funds to local areas in 
        the State whose local boards have implemented a pay-for-
        performance contract strategy.
            ``(3) Evaluations.--A State described in paragraph (2) 
        shall use funds reserved by the State under section 133(a)(1) 
        to evaluate the return on investment of pay-for-performance 
        contract strategies implemented by local boards in the 
        State.''.

SEC. 424. 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, $6,245,318,000 for fiscal year 
2015 and each of the 6 succeeding fiscal years.''.

                          CHAPTER 3--JOB CORPS

SEC. 426. 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 and recognized postsecondary 
        credentials leading to successful careers in in-demand 
        industries that will result in opportunities for 
        advancement;''.

SEC. 427. JOB CORPS DEFINITIONS.

    Section 142 (29 U.S.C. 2882) is amended--
            (1) in paragraph (2)--
                    (A) in the paragraph heading, by striking 
                ``Applicable one-stop'' and inserting ``One-stop'';
                    (B) by striking ``applicable'';
                    (C) 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. 428. 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. 429. 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''; and
                    (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.'';
            (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''; and
                    (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;
                            (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
                            (iv) 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), and whether any actions have 
                been taken with respect to such center pursuant to 
                section 159(f).''; and
            (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. 430. JOB CORPS CENTERS.

    Section 147 (29 U.S.C. 2887) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)(A), by striking ``vocational'' 
                both places it appears and inserting ``career and 
                technical''; and
                    (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, applicable'' 
                                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)--
                                    (I) by striking ``, as 
                                appropriate''; and
                                    (II) by striking ``through (IV)'' 
                                and inserting ``through (V)'';
            (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 investment system;
            ``(5) a description of the strong fiscal controls the 
        entity has in place to ensure proper accounting of Federal 
        funds, and a description of how the entity will meet the 
        requirements of section 159(a);
            ``(6) a description of the strategies and policies the 
        entity will utilize to reduce participant costs;
            ``(7) a description of the steps taken to control costs in 
        accordance with section 159(a)(3);
            ``(8) a detailed budget of the activities that will be 
        supported using funds under this subtitle;
            ``(9) a detailed budget of the activities that will be 
        supported using funds from non-Federal resources;
            ``(10) an assurance the entity will comply with the 
        administrative cost limitation included in section 151(c);
            ``(11) an assurance the entity is licensed to operate in 
        the State in which the center is located; and
            ``(12) 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 1-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 on 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 SKILLS Act 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. 431. 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 (such as industry-recognized 
                        credentials and certificates from registered 
                        apprenticeship programs); 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.'';
            (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) by amending paragraph (3) of subsection (c) to read as 
        follows:
            ``(3) Demonstration.--Each year, any operator seeking to 
        enroll additional enrollees in an advanced career training 
        program shall demonstrate, before the operator may carry out 
        such additional enrollment, that--
                    ``(A) participants in such program have achieved a 
                satisfactory rate of completion and placement in 
                training-related jobs; and
                    ``(B) such operator has met or exceeded the 
                indicators of performance described in paragraphs (1) 
                and (2) of section 159(c) for the previous year.''.

SEC. 432. 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)--
                    (A) by striking ``make every effort to arrange 
                to''; and
                    (B) by striking ``to assist'' and inserting 
                ``assist''; and
            (3) by striking subsection (d).

SEC. 433. 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. 434. 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. 435. 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. 436. 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\ 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 plan described 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.''.

SEC. 437. TECHNICAL ASSISTANCE.

    Section 156 (29 U.S.C. 2896) 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(c); and
            ``(4) assist Job Corps centers and programs in the 
        development of sound management practices, including financial 
        management procedures.''.

SEC. 438. SPECIAL PROVISIONS.

    Section 158(c)(1) (29 U.S.C. 2989(c)(1)) is amended by striking 
``title II of the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 481 et seq.)'' and inserting ``chapter 5 of title 40, 
United States Code,''.

SEC. 439. 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'';
            (2) in subsection (a)(3), by inserting before the period at 
        the end the following: ``, or operating costs for such centers 
        result in a budgetary shortfall'';
            (3) by striking subsections (c) through (g); and
            (4) 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 
                certificate from a registered apprenticeship program; 
                and
                    ``(D) the cost per successful performance outcome, 
                which is calculated by comparing the number of 
                graduates who were placed in unsubsidized employment or 
                obtained a recognized postsecondary credential, 
                including an industry-recognized credential, to total 
                program costs, including all operations, construction, 
                and administration costs at each Job Corps 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 as targets in section 
                145(c)(1);
                    ``(G) the cost per training slot, which is 
                calculated by comparing the program's maximum number of 
                enrollees 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), and (E) 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(f)(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, and 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 (3) and (4) of 
                subsection (c) 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 (3) and (4) of subsection (c) 
                on the performance indicators established under such 
                paragraphs.
            ``(2) Assessment.--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 10 percent on the 
                performance indicator described in paragraph (1)(C); or
                    ``(B) have failed a safety and health code review 
                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 
        subparagraph (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) 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 enter 
into an agreement with the General Services Administration or the 
appropriate State 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.''.

                      CHAPTER 4--NATIONAL PROGRAMS

SEC. 441. 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, and conforming the casing style 
        of the headings of such subsections to the casing style of the 
        heading of subsection (d), as added by paragraph (7) of this 
        section;
            (4) in subsection (a) (as so redesignated)--
                    (A) by inserting ``the training of staff providing 
                rapid response services and additional assistance, 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 SKILLS Act'';
            (5) in subsection (b) (as so redesignated)--
                    (A) by striking ``paragraph (1)'' and inserting 
                ``subsection (a)'';
                    (B) by striking ``, or recipient of financial 
                assistance under any of sections 166 through 169,''; 
                and
                    (C) by striking ``or grant recipient'';
            (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. 442. 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) by amending subsection (a)(4) 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) by amending subsection (c) 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 2016, and thereafter 
shall conduct such an analysis not less than once every 4 years.'';
            (4) in subsection (e), 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'';
            (5) by redesignating subsection (f) as subsection (g) and 
        inserting after subsection (e) the following:
    ``(f) Reduction of Amounts Authorized To Be Appropriated for Late 
Reporting.--If a report required to be transmitted to Congress under 
this section is not transmitted on or before the time period specified 
for that report, amounts authorized to be appropriated under this title 
shall be reduced by 10 percent for the fiscal year that begins after 
the date on which the final report required under this section is 
required to be transmitted and reduced by an additional 10 percent each 
subsequent fiscal year until each such report is transmitted to 
Congress.''; and
            (6) by adding at the end, the following:
    ``(h) 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.''.

                       CHAPTER 5--ADMINISTRATION

SEC. 446. 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 ``subtitle B'' and inserting ``this 
                Act'';
            (4) in subsection (f)(4), by striking ``134(a)(3)(B)'' and 
        inserting ``133(a)(4)''; and
            (5) by adding at the end the following:
    ``(g) Salary and Bonus Limitation.--
            ``(1) In general.--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 the rate prescribed in 
        level II of the Executive Schedule under section 5315 of title 
        5, United States Code.
            ``(2) Vendors.--The limitation described in paragraph (1) 
        shall not apply to vendors providing goods and services as 
        defined in OMB Circular A-133.
            ``(3) Lower limit.--In a case in which a State is a 
        recipient of such funds, the State may establish a lower limit 
        than is provided in paragraph (1) for salaries and bonuses of 
        those receiving salaries and bonuses from a subrecipient 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 Federal programs 
        involved.
    ``(h) General Authority.--
            ``(1) In general.--The Employment and Training 
        Administration of the Department of Labor (referred to in this 
        Act as the `Administration') shall administer all programs 
        authorized under title I and the Wagner-Peyser Act (29 U.S.C. 
        49 et seq.). 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 title II and the 
        Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), 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.
            ``(3) Functions.--In the performance of the functions of 
        the office, the Assistant Secretary shall be directly 
        responsible to the Secretary or the Deputy Secretary of Labor, 
        as determined 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. 447. PROMPT ALLOCATION OF FUNDS.

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

SEC. 448. FISCAL CONTROLS; SANCTIONS.

    Section 184(a)(2) (29 U.S.C. 2934(a)(2)) is amended--
            (1) by striking ``(A)'' and all that follows through 
        ``Each'' and inserting ``Each''; and
            (2) by striking subparagraph (B).

SEC. 449. 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 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. 450. 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 October 1 in the fiscal year 
        for which the appropriation is made.''; and
                    (B) in paragraph (2)--
                            (i) in the first sentence, by striking 
                        ``each State'' and inserting ``each recipient 
                        (except as otherwise provided in this 
                        paragraph)''; and
                            (ii) in the second sentence, by striking 
                        ``171 or''; and
            (2) in subsection (i)--
                    (A) by striking paragraphs (2) and (3);
                    (B) by redesignating paragraph (4) as paragraph 
                (2);
                    (C) by amending paragraph (2)(A), as so 
                redesignated--
                            (i) in clause (i), by striking ``; and'' 
                        and inserting a period at the end;
                            (ii) 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''; and
                            (iii) by striking clause (ii); and
                    (D) by adding at the end the following:
                    ``(D) Expedited process for extending approved 
                waivers to additional states.--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), 
                in lieu of requiring the additional States to meet the 
                requirements of subparagraphs (B) and (C). Such 
                procedure shall ensure that the extension of such a 
                waiver to additional States is accompanied by 
                appropriate conditions relating to the implementation 
                of such waiver.
                    ``(E) External conditions.--The Secretary shall not 
                require or impose new or additional requirements, that 
                are not specified under this Act, on a State in 
                exchange for providing a waiver to the State or a local 
                area in the State under this paragraph.''.

SEC. 451. 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. 452. 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 under a program by a public or private 
        nonprofit entity that are not described in subparagraph (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 paragraph.'';
            (2) by striking paragraph (9);
            (3) by redesignating paragraphs (10) through (13) as 
        paragraphs (9) through (12), respectively; and
            (4) by adding at the end the following new paragraphs:
            ``(13) 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 a one-stop center.
            ``(14) 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. 453. FEDERAL AGENCY STAFF AND RESTRICTIONS ON POLITICAL AND 
              LOBBYING ACTIVITIES.

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

``SEC. 196. FEDERAL AGENCY STAFF.

    ``The Director of the Office of Management and Budget shall--
            ``(1) not later than 60 days after the date of the 
        enactment of the SKILLS Act--
                    ``(A) identify the number of Federal Government 
                employees who, on the day before the date of enactment 
                of the SKILLS Act, worked on or administered each of 
                the programs and activities that were authorized under 
                this Act or were authorized under a provision listed in 
                section 401 of the SKILLS Act; and
                    ``(B) identify the number of full-time equivalent 
                employees who on the day before that date of enactment, 
                worked on or administered each of the programs and 
                activities described in subparagraph (A), on functions 
                for which the authorizing provision has been repealed, 
                or for which an amount has been consolidated (if such 
                employee is in a duplicate position), on or after such 
                date of enactment;
            ``(2) not later than 90 after such date of enactment, 
        publish the information described in paragraph (1) on the 
        Office of Management and Budget website; and
            ``(3) not later than 1 year after such date of enactment--
                    ``(A) reduce the workforce of the Federal 
                Government by the number of full-time equivalent 
                employees identified under paragraph (1)(B); and
                    ``(B) submit to Congress a report on how the 
                Director carried out the requirements of subparagraph 
                (A).

``SEC. 197. RESTRICTIONS ON LOBBYING AND POLITICAL ACTIVITIES.

    ``(a) Lobbying Restrictions.--
            ``(1) Publicity restrictions.--
                    ``(A) In general.--Subject to subparagraph (B), no 
                funds provided under this Act shall be used or proposed 
                for use, for--
                            ``(i) publicity or propaganda purposes; or
                            ``(ii) the preparation, distribution, or 
                        use of any kit, pamphlet, booklet, publication, 
                        electronic communication, radio, television, or 
                        video presentation designed to support or 
                        defeat the enactment of legislation before the 
                        Congress or any State or local legislature or 
                        legislative body.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to--
                            ``(i) normal and recognized executive-
                        legislative relationships;
                            ``(ii) the preparation, distribution, or 
                        use of the materials described in subparagraph 
                        (A)(ii) in presentation to the Congress or any 
                        State or local legislature or legislative body 
                        (except that this subparagraph does not apply 
                        with respect to such preparation, distribution, 
                        or use in presentation to the executive branch 
                        of any State or local government); or
                            ``(iii) such preparation, distribution, or 
                        use of such materials, that are designed to 
                        support or defeat any proposed or pending 
                        regulation, administrative action, or order 
                        issued by the executive branch of any State or 
                        local government.
            ``(2) Salary payment restriction.--No funds provided under 
        this Act shall be used, or proposed for use, to pay the salary 
        or expenses of any grant or contract recipient, or agent acting 
        for such recipient, related to any activity designed to 
        influence the enactment or issuance of legislation, 
        appropriations, regulations, administrative action, or an 
        executive order proposed or pending before the Congress or any 
        State government, or a State or local legislature or 
        legislative body, other than for normal and recognized 
        executive-legislative relationships or participation by an 
        agency or officer of a State, local, or tribal government in 
        policymaking and administrative processes within the executive 
        branch of that government.
    ``(b) Political Restrictions.--
            ``(1) In general.--No funds received by a participant of a 
        program or activity under this Act shall be used for--
                    ``(A) any partisan or nonpartisan political 
                activity or any other political activity associated 
                with a candidate, or contending faction or group, in an 
                election for public or party office; or
                    ``(B) any activity to provide voters with 
                transportation to the polls or similar assistance in 
                connection with any such election.
            ``(2) Restriction on voter registration activities.--No 
        funds under this Act shall be used to conduct voter 
        registration activities.
            ``(3) Definition.--For the purposes of this subsection, the 
        term `participant' includes any State, local area, or 
        government, nonprofit, or for-profit entity receiving funds 
        under this Act.''.

                     CHAPTER 6--STATE UNIFIED PLAN

SEC. 456. STATE UNIFIED PLAN.

    Section 501 (20 U.S.C. 9271) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) General Authority.--The Secretary shall receive and approve 
State unified plans developed and submitted in accordance with this 
section.'';
            (2) by amending subsection (b) to read as follows:
    ``(b) State Unified Plan.--
            ``(1) In general.--A State may develop and submit to the 
        Secretary 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 or programs set forth 
        in subparagraphs (A) and (B) of paragraph (2) and shall cover 
        one or more of the activities or programs set forth in 
        subparagraphs (C) through (N) of paragraph (2).
            ``(2) Activities and programs.--For purposes of paragraph 
        (1), the term `activity or program' means any 1 of the 
        following 14 activities or programs:
                    ``(A) Activities and programs authorized under 
                title I.
                    ``(B) Activities and programs authorized under 
                title II.
                    ``(C) Programs authorized under title I of the 
                Rehabilitation Act of 1973 (29 U.S.C. 710 et seq.).
                    ``(D) Secondary career and technical education 
                programs authorized under the Carl D. Perkins Career 
                and Technical Education Act of 2006 (20 U.S.C. 2301 et 
                seq.).
                    ``(E) Postsecondary career and technical education 
                programs authorized under the Carl D. Perkins Career 
                and Technical Education Act of 2006.
                    ``(F) Activities and programs authorized under 
                title II of the Trade Act of 1974 (19 U.S.C. 2251 et 
                seq.).
                    ``(G) Programs and activities authorized 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.).
                    ``(H) Programs authorized under the Community 
                Services Block Grant Act (42 U.S.C. 9901 et seq.).
                    ``(I) Programs authorized under part A of title IV 
                of the Social Security Act (42 U.S.C. 601 et seq.).
                    ``(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 and Nutrition Act of 1977 (7 U.S.C. 
                2015(o)).
                    ``(L) Activities and programs authorized under 
                title I of the Housing and Community Development Act of 
                1974 (42 U.S.C. 5301 et seq.).
                    ``(M) Activities and programs authorized under the 
                Public Works and Economic Development Act of 1965 (42 
                U.S.C. 3121 et seq.).
                    ``(N) Activities authorized under chapter 41 of 
                title 38, United States Code.'';
            (3) by amending subsection (d) to read as follows:
    ``(d) Approval.--
            ``(1) Jurisdiction.--In approving a State unified plan 
        under this section, the Secretary shall--
                    ``(A) submit the portion of the State unified plan 
                covering an activity or program described in subsection 
                (b)(2) to the head of the Federal agency who exercises 
                administrative authority over the activity or program 
                for the approval of such portion by such Federal agency 
                head; or
                    ``(B) coordinate approval of the portion of the 
                State unified plan covering an activity or program 
                described in subsection (b)(2) with the head of the 
                Federal agency who exercises administrative authority 
                over the activity or program.
            ``(2) Timeline.--A State unified plan 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 details how the plan is not consistent with the 
        requirements of the Federal statute authorizing an activity or 
        program described in subsection (b)(2) and covered under the 
        plan or how the plan is not consistent with the requirements of 
        subsection (c)(3).
            ``(3) Scope of portion.--For purposes of paragraph (1), the 
        portion of the State unified plan covering an activity or 
        program shall be considered to include the plan described in 
        subsection (c)(3) and any proposal described in subsection 
        (e)(2), as that part and proposal relate to the activity or 
        program.''; and
            (4) by adding at the end the following:
    ``(e) Additional Employment and Training Funds.--
            ``(1) Purpose.--It is the purpose of this subsection to 
        reduce inefficiencies in the administration of federally funded 
        State and local employment and training programs.
            ``(2) In general.--In developing a State unified plan for 
        the activities or programs described in subsection (b)(2), and 
        subject to paragraph (4) and to the State plan approval process 
        under subsection (d), a State may propose to consolidate the 
        amount, in whole or part, provided for the activities or 
        programs covered by the plan into the Workforce Investment Fund 
        under section 132(b) to improve the administration of State and 
        local employment and training programs.
            ``(3) Requirements.--A State that has a State unified plan 
        approved under subsection (d) with a proposal for consolidation 
        under paragraph (2), and that is carrying out such 
        consolidation, shall--
                    ``(A) in providing an activity or program for which 
                an amount is consolidated into the Workforce Investment 
                Fund--
                            ``(i) continue to meet the program 
                        requirements, limitations, and prohibitions of 
                        any Federal statute authorizing the activity or 
                        program; and
                            ``(ii) meet the intent and purpose for the 
                        activity or program; and
                    ``(B) continue to make reservations and allotments 
                under subsections (a) and (b) of section 133.
            ``(4) Exceptions.--A State may not consolidate an amount 
        under paragraph (2) that is allocated to the State under--
                    ``(A) the Carl D. Perkins Career and Technical 
                Education Act of 2006 (20 U.S.C. 2301 et seq.); or
                    ``(B) title I of the Rehabilitation Act of 1973 (29 
                U.S.C. 710 et seq.).''.

       Subtitle B--Adult Education and Family Literacy Education

SEC. 461. AMENDMENT.

    Title II (20 U.S.C. 9201 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 mathematics 
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 mathematics 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 mathematics skills; and
            ``(4) assist adults who are not proficient in English in 
        improving their reading, writing, speaking, listening, 
        comprehension, and mathematics 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 mathematics 
                        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 that 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 purpose 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 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 mathematics 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 year 2015 and for each of the 6 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 paragraph (2), for--
                    ``(A) fiscal year 2015, no eligible agency shall 
                receive an allotment under this title that is less than 
                90 percent of the allotment the eligible agency 
                received for fiscal year 2012 under this title; and
                    ``(B) fiscal year 2016 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) 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 
        ratable 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 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, mathematics, 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 monitoring and evaluation of the quality of, and 
        the improvement in, adult education and literacy activities.
            ``(5) 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.
            ``(6) The development and implementation of technology 
        applications or distance education, including professional 
        development to support the use of instructional technology.
            ``(7) Coordination with other public programs, including 
        programs under title I of this Act, and other welfare-to-work, 
        workforce development, and job training programs.
            ``(8) 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.
            ``(9) The development and implementation of a system to 
        assist in the transition from adult basic education to 
        postsecondary education.
            ``(10) Activities to promote workplace literacy programs.
            ``(11) 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.
            ``(12) 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 
        annually evaluate and measure the effectiveness and improvement 
        of the adult education and family literacy education programs 
        funded under this title using the indicators of performance 
        described in section 136, including how the eligible agency 
        will conduct such annual evaluations and measures for each 
        grant received under this title;
            ``(5) a description of how the eligible agency will fund 
        local activities in accordance with the measurable goals 
        described in section 231(d);
            ``(6) an assurance that the eligible agency will expend the 
        funds under this title only in a manner consistent with fiscal 
        requirements in section 241;
            ``(7) a description of the process that will be used for 
        public participation and comment with respect to the State 
        plan, which--
                    ``(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;
            ``(8) 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;
            ``(9) 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;
            ``(10) 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;
            ``(11) 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
            ``(12) 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 90 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 (1), 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 mathematics programs;
            ``(4) secondary school credit or diploma programs or their 
        recognized equivalent; and
            ``(5) integrated education and training.
    ``(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.--In 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 integrated education and 
        training 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 mathematics 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 
        mathematics 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 mathematics, 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.''.

            Subtitle C--Amendments to the Wagner-Peyser Act

SEC. 466. AMENDMENTS TO THE WAGNER-PEYSER ACT.

    Section 15 of the Wagner-Peyser Act (29 U.S.C. 49l-2) is amended to 
read as follows:

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

    ``(a) System Content.--
            ``(1) In general.--The Secretary of Labor (referred to in 
        this section as the `Secretary'), 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 (C) and (D) of subsection (e)(1); 
                        and
                            ``(iii) shall meet the needs for the 
                        information identified in section 121(e)(1)(E) 
                        of the Workforce Investment Act of 1998 (29 
                        U.S.C. 2841(e)(1)(E));
                    ``(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) of the Workforce Investment Act of 1998 
(29 U.S.C. 2864(c)(2)) and to provide workforce and labor market 
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)(1).
    ``(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;
                    ``(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 
                workforce and labor market information 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, and submit 
                to the Secretary, an annual plan to carry out the 
                requirements and authorities of this subsection; and
                    ``(K) utilize the quarterly records described in 
                section 136(f)(2) of the Workforce Investment Act of 
                1998 (29 U.S.C. 2871(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 2015 
and each of the 6 succeeding fiscal years.''.

             Subtitle D--Repeals and Conforming Amendments

SEC. 471. 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, 194, 502, 
        503, and 506 of the Workforce Investment Act of 1998, as in 
        effect on the day before the date of enactment of the SKILLS 
        Act.
            (2) Title V of the Older Americans Act of 1965 (42 U.S.C. 
        3056 et seq.).
            (3) Sections 1 through 14 of the Wagner-Peyser Act (29 
        U.S.C. 49 et seq.).
            (4) The Twenty-First Century Workforce Commission Act (29 
        U.S.C. 2701 note).
            (5) Public Law 91-378, 16 U.S.C. 1701 et seq. (popularly 
        known as the ``Youth Conservation Corps Act of 1970'').
            (6) Section 821 of the Higher Education Amendments of 1998 
        (20 U.S.C. 1151).
            (7) The Women in Apprenticeship and Nontraditional 
        Occupations Act (29 U.S.C. 2501 et seq.).
            (8) Sections 4103A and 4104 of title 38, United States 
        Code.

SEC. 472. AMENDMENT TO THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, 
              COMPENSATION, AND LIABILITY ACT OF 1980.

    Section 104(k)(6)(A) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9604(k)(6)(A)) is 
amended by striking ``training, research, and'' and inserting 
``research and''.
     (a) Amendments to the Food and Nutrition Act of 2008.--
            (1) Definition.--Section 3(t) of the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2012(t)) is amended--
                    (A) by striking ``means (1) the agency'' and 
                inserting the following: ``means--
                    ``(A) the agency'';
                    (B) by striking ``programs, and (2) the tribal'' 
                and inserting the following: ``programs;
                    ``(B) the tribal'';
                    (C) by striking ``this Act.'' and inserting the 
                following: ``this Act; and
                    ``(C) in the context of 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).''.
            (2) Eligible households.--Section 5 of the Food and 
        Nutrition Act of 2008 (7 U.S.C. 2014) is amended--
                    (A) in subsection (d)(14) by striking ``section 
                6(d)(4)(I)'' and inserting ``section 6(d)(4)(C)''; and
                    (B) in subsection (g)(3), in the first sentence, 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)''.
            (3) 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:
                    ``(D) Employment and training.--
                            ``(i) 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.
                            ``(ii) 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.).
                            ``(iii) Reimbursements.--
                                    ``(I) Actual costs.--The State 
                                agency shall provide payments or 
                                reimbursement to participants served 
                                under this paragraph for--
                                            ``(aa) 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
                                            ``(bb) the actual costs of 
                                        such dependent care expenses as 
                                        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 that 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 the option 
                                of the State agency, 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--
                                            ``(aa) 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
                                            ``(bb) 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).''.
            (4) 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:
                    ``(S) the plans of the State agency for providing 
                employment and training services under section 
                6(d)(4);''.
            (5) Administrative cost-sharing and quality control.--
        Section 16(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 
        2025(h)) is amended--
                    (A) in paragraph (1)--
                            (i) 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
                            (ii) in subparagraph (D), by striking 
                        ``operating an employment and training 
                        program'' and inserting ``providing employment 
                        and training services consistent with section 
                        6(d)(4)'';
                    (B) in paragraph (3)--
                            (i) by striking ``participation in an 
                        employment and training program'' and inserting 
                        ``the individual participating in employment 
                        and training activities''; and
                            (ii) by striking ``section 
                        6(d)(4)(I)(i)(II)'' and inserting ``section 
                        6(d)(4)(C)(i)(II)'';
                    (C) in paragraph (4), by striking ``for operating 
                an employment and training program'' and inserting ``to 
                provide employment and training services''; and
                    (D) by striking paragraph (5) and inserting the 
                following:
                    ``(E) Monitoring.--
                            ``(i) In general.--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.
                            ``(ii) Accountability.--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 described in section 136 
                        of the Workforce Investment Act (29 U.S.C. 
                        2871).''.
            (6) Research, demonstration, and evaluations.--Section 17 
        of the Food and Nutrition Act of 2008 (7 U.S.C. 2026) is 
        amended--
                    (A) in subsection (b)--
                            (i) in paragraph (1)(B)(iv)(III)(dd), by 
                        striking ``, (4)(F)(i), or (4)(K)'' and 
                        inserting ``or (4)''; and
                            (ii) by striking paragraph (3); and
                    (B) in subsection (g), in the first sentence in the 
                matter preceding paragraph (1)--
                            (i) by striking ``programs established'' 
                        and inserting ``activities provided to eligible 
                        households''; and
                            (ii) by inserting ``, in conjunction with 
                        the Secretary of Labor,'' after ``Secretary''.
            (7) 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''.
    (b) Amendments to Section 412 of the Immigration and Nationality 
Act.--
            (1) Conditions and considerations.--Section 412(a) of the 
        Immigration and Nationality Act (8 U.S.C. 1522(a)) is amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)(i), by striking 
                        ``make available sufficient resources for 
                        employment training and placement'' and 
                        inserting ``provide refugees with the 
                        opportunity to access employment and training 
                        services, including job placement,''; and
                            (ii) in subparagraph (B)(ii), by striking 
                        ``services;'' and inserting ``services provided 
                        through the Workforce Investment Act of 1998 
                        (29 U.S.C. 2801 et seq.);'';
                    (B) in paragraph (2)(C)(iii)(II), by inserting 
                ``and training'' after ``employment'';
                    (C) in paragraph (6)(A)(ii)--
                            (i) by striking ``insure'' and inserting 
                        ``ensure'';
                            (ii) by inserting ``and training'' after 
                        ``employment''; and
                            (iii) by inserting after ``available'' the 
                        following: ``through the one-stop delivery 
                        system under section 121 of the Workforce 
                        Investment Act of 1998 (29 U.S.C. 2841)''; and
                    (D) in paragraph (9), by inserting ``the Secretary 
                of Labor,'' after ``Education,''.
            (2) Program of initial resettlement.--Section 412(b)(2) of 
        such Act (8 U.S.C. 1522(b)(2)) is amended--
                    (A) by striking ``orientation, instruction'' and 
                inserting ``orientation and instruction''; and
                    (B) by striking ``, and job training for refugees, 
                and such other education and training of refugees, as 
                facilitates'' and inserting ``for refugees to 
                facilitate''.
            (3) Project grants and contracts for services for 
        refugees.--Section 412(c) of such Act (8 U.S.C. 1522(c)) is 
        amended--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)(i), by inserting 
                        ``and training'' after ``employment''; and
                            (ii) by striking subparagraph (C);
                    (B) in paragraph (2)(B), by striking ``paragraph--
                '' and all that follows through ``in a manner'' and 
                inserting ``paragraph in a manner''; and
                    (C) by adding at the end the following:
            ``(C) In carrying out this section, the Director shall 
        ensure that employment and training services are provided 
        through the statewide workforce development system, as 
        appropriate, authorized by the Workforce Investment Act of 1998 
        (29 U.S.C. 2801 et seq.). Such action may include--
                    ``(i) making employment and training activities 
                described in section 134 of such Act (29 U.S.C. 2864) 
                available to refugees; and
                    ``(ii) providing refugees with access to a one-stop 
                delivery system established under section 121 of such 
                Act (29 U.S.C. 2841).''.
            (4) Cash assistance and medical assistance to refugees.--
        Section 412(e) of such Act (8 U.S.C. 1522(e)) is amended--
                    (A) in paragraph (2)(A)(i), by inserting ``and 
                training'' after ``providing employment''; and
                    (B) in paragraph (3), by striking ``The'' and 
                inserting ``Consistent with subsection (c)(3), the''.
    (c) Amendments Relating to the Second Chance Act of 2007.--
            (1) Federal prisoner reentry initiative.--Section 231 of 
        the Second Chance Act of 2007 (42 U.S.C. 17541) is amended--
                    (A) in subsection (a)(1)(E)--
                            (i) by inserting ``the Department of Labor 
                        and'' before ``other Federal agencies''; and
                            (ii) by inserting ``State and local 
                        workforce investment boards,'' after 
                        ``community-based organizations,'';
                    (B) in subsection (c)--
                            (i) in paragraph (2), by striking at the 
                        end ``and'';
                            (ii) in paragraph (3), by striking at the 
                        end the period and inserting ``; and''; and
                            (iii) by adding at the end the following 
                        new paragraph:
                    ``(D) to coordinate reentry programs with the 
                employment and training services provided through the 
                statewide workforce investment system under subtitle B 
                of title I of the Workforce Investment Act of 1998 (29 
                U.S.C. 2811 et seq.).''; and
                    (C) in subsection (d), by adding at the end the 
                following new paragraph:
                    ``(F) Interaction with the workforce investment 
                system.--
                            ``(i) In general.--In carrying out this 
                        section, the Director shall ensure that 
                        employment and training services, including 
                        such employment and services offered through 
                        reentry programs, are provided, as appropriate, 
                        through the statewide workforce investment 
                        system under subtitle B of title I of the 
                        Workforce Investment Act of 1998 (29 U.S.C. 
                        2811 et seq.), which may include--
                                    ``(I) making employment and 
                                training services available to 
                                prisoners prior to and immediately 
                                following the release of such 
                                prisoners; or
                                    ``(II) providing prisoners with 
                                access by remote means to a one-stop 
                                delivery system under section 121 of 
                                the Workforce Investment Act of 1998 
                                (29 U.S.C. 2841) in the State in which 
                                the prison involved is located.
                            ``(ii) Service defined.--In this paragraph, 
                        the term `employment and training services' 
                        means those services described in section 134 
                        of the Workforce Investment Act of 1998 (29 
                        U.S.C. 2864) offered by the Bureau of Prisons, 
                        including--
                                    ``(I) the skills assessment 
                                described in subsection (a)(1)(A);
                                    ``(II) the skills development plan 
                                described in subsection (a)(1)(B); and
                                    ``(III) the enhancement, 
                                development, and implementation of 
                                reentry and skills development 
                                programs.''.
            (2) Duties of the bureau of prisons.--Section 4042(a) of 
        title 18, United States Code, is amended--
                    (A) by redesignating subparagraphs (D) and (E), as 
                added by section 231(d)(1)(C) of the Second Chance Act 
                of 2007 (Public Law 110-199; 122 Stat. 685), as 
                paragraphs (6) and (7), respectively, and adjusting the 
                margin accordingly;
                    (B) in paragraph (6), as so redesignated, by 
                redesignating clauses (i) and (ii) as subparagraphs (A) 
                and (B), respectively, and adjusting the margin 
                accordingly;
                    (C) in paragraph (7), as so redesignated--
                            (i) in clause (ii), by striking 
                        ``Employment'' and inserting ``Employment and 
                        training services (as defined in paragraph (6) 
                        of section 231(d) of the Second Chance Act of 
                        2007), including basic skills attainment, 
                        consistent with such paragraph''; and
                            (ii) by striking clause (iii); and
                    (D) by redesignating clauses (i), (ii), (iv), (v), 
                (vi), and (vii) as subparagraphs (A), (B), (C), (D), 
                (E), and (F), respectively, and adjusting the margin 
                accordingly.
    (d) Amendments to the Omnibus Crime Control and Safe Streets Act of 
1968.--Section 2976 of the Omnibus Crime Control and Safe Streets Act 
of 1968 (42 U.S.C. 3797w) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``vocational'' 
                and inserting ``career and technical education (as 
                defined in section 3 of the Carl D. Perkins Career and 
                Technical Education Act of 2006 (20 U.S.C. 2302)) and 
                training'';
                    (B) by redesignating paragraphs (4), (5), (6), and 
                (7) as paragraphs (5), (6), (7), and (8), respectively; 
                and
                    (C) by inserting after paragraph (3) the following 
                new paragraph:
                    ``(D) coordinating employment and training services 
                provided through the statewide workforce investment 
                system under subtitle B of title I of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2811 et seq.), 
                including a one-stop delivery system under section 121 
                of such Act (29 U.S.C. 2841), for offenders upon 
                release from prison, jail, or a juvenile facility, as 
                appropriate;'';
            (2) in subsection (d)(2), by inserting ``, including local 
        workforce investment boards established under section 117 of 
        the Workforce Investment Act of 1998 (29 U.S.C. 2832),'' after 
        ``nonprofit organizations'';
            (3) in subsection (e)--
                    (A) in paragraph (3), by striking ``victims 
                services, and employment services'' and inserting ``and 
                victim services'';
                    (B) by redesignating paragraphs (4) and (5) as 
                paragraphs (5) and (6), respectively; and
                    (C) by inserting after paragraph (3) the following 
                new paragraph:
                    ``(D) provides employment and training services 
                through the statewide workforce investment system under 
                subtitle B of title I of the Workforce Investment Act 
                of 1998 (29 U.S.C. 2811 et seq.), including a one-stop 
                delivery system under section 121 of such Act (29 
                U.S.C. 2841);''; and
            (4) in subsection (k)--
                    (A) in paragraph (1)(A), by inserting ``, in 
                accordance with paragraph (2)'' after ``under this 
                section'';
                    (B) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively; and
                    (C) by inserting after paragraph (1) the following 
                new paragraph:
                    ``(B) Employment and training.--The Attorney 
                General shall require each grantee under this section 
                to measure the core indicators of performance as 
                described in section 136(b)(2)(A) of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2871(b)(2)(A)) with 
                respect to the program of such grantee funded with a 
                grant under this section.''.
    (e) Conforming Amendments to Title 38, United States Code.--Title 
38, United States Code, is amended--
            (1) 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'';
            (2) in the table of sections at the beginning of chapter 
        41, by striking the items relating to sections 4103A and 4104;
            (3) in section 4102A--
                    (A) in subsection (b)--
                            (i) by striking paragraphs (5), (6), and 
                        (7); and
                            (ii) by redesignating paragraph (8) as 
                        paragraph (5);
                    (B) by striking subsections (c) and (h);
                    (C) by redesignating subsections (d), (e), (f), and 
                (g) as subsections (c), (d), (e), and (f); and
                    (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''; and
                            (ii) by striking ``for purposes of 
                        subsection (c)'';
            (4) in section 4104A--
                    (A) in subsection (b)(1), by striking subparagraph 
                (A) and inserting the following:
                            ``(i) the appropriate veteran employment 
                        specialist (in carrying out the functions 
                        described in section 134(f) of the Workforce 
                        Investment Act of 1998);''; and
                    (B) in subsection (c)(1), by striking subparagraph 
                (A) and inserting the following:
                            ``(i) 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));'';
            (5) in section 4109--
                    (A) in subsection (a), by striking ``disabled 
                veterans' outreach program specialists and local 
                veterans' employment representative'' and inserting 
                ``veteran employment specialists appointed under 
                section 134(f) of the Workforce Investment Act of 
                1998''; and
                    (B) in subsection (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 of 
                1998''; and
            (6) 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 of 1998''; and
                    (B) by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (2).

SEC. 473. CONFORMING AMENDMENT TO TABLE OF CONTENTS.

    The table of contents in section 1(b) is amended to read as 
follows:
    ``(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.
            ``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. 156. Technical assistance to centers.
``Sec. 157. Application of provisions of Federal law.
``Sec. 158. Special provisions.
``Sec. 159. Performance accountability and management.
``Sec. 160. General provisions.
``Sec. 161. Authorization of appropriations.
                    ``Subtitle D--National Programs

``Sec. 170. Technical assistance.
``Sec. 172. Evaluations.
                      ``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. 193. Transfer of Federal equity in State employment security 
                            real property to the States.
``Sec. 195. General program requirements.
``Sec. 196. Federal agency staff.
``Sec. 197. Restrictions on lobbying and political activities.
            ``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 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. 504. Privacy.
``Sec. 505. Buy-American requirements.
``Sec. 507. Effective date.''.

        Subtitle E--Amendments to the Rehabilitation Act of 1973

SEC. 476. 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. 477. 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(c)), by striking 
        ``Commissioner's'' and inserting ``Director's'';
            (4) 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'';
            (5) in the heading for subparagraph (B) of section 
        100(d)(2) (29 U.S.C. 720(d)(2)), by striking ``commissioner'' 
        and inserting ``director'';
            (6) in section 401(a)(1) (29 U.S.C. 781(a)(1)), by 
        inserting ``of the National Institute on Disability and 
        Rehabilitation Research'' after ``Director'';
            (7) in the heading for section 706 (29 U.S.C. 796d-1), by 
        striking ``commissioner'' and inserting ``director''; and
            (8) in the heading for paragraph (3) of section 723(a) (29 
        U.S.C. 796f-2(a)), by striking ``commissioner'' and inserting 
        ``director''.
    (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. 478. 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. 479. CARRYOVER.

    Section 19(a)(1) of the Rehabilitation Act of 1973 (29 U.S.C. 
716(a)(1)) is amended by striking ``part B of title VI,''.

SEC. 480. TRADITIONALLY UNDERSERVED POPULATIONS.

    Section 21 of the Rehabilitation Act of 1973 (29 U.S.C. 718) is 
amended, in paragraphs (1) and (2)(A) of subsection (b), and in 
subsection (c), by striking ``VI,''.

SEC. 481. STATE PLAN.

    Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) 
is amended--
            (1) in paragraph (10)--
                    (A) in subparagraph (B), by striking ``on the 
                eligible individuals'' and all that follows and 
                inserting ``of information necessary to assess the 
                State's performance on the core indicators of 
                performance described in section 136(b)(2)(A) of the 
                Workforce Investment Act of 1998 (29 U.S.C. 
                2871(b)(2)(A)).''; and
                    (B) in subparagraph (E)(ii), by striking ``, to the 
                extent the measures are applicable to individuals with 
                disabilities'';
            (2) 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 participation through 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.'';
            (3) 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 
                        provided under the Individuals with 
                        Disabilities Education Act (20 U.S.C. 1400 et 
                        seq.), about the extent to which those 2 types 
                        of services meet the needs of individuals with 
                        disabilities;'';
                    (B) in subparagraph (B)(ii), by striking ``and 
                under part B of title VI''; and
                    (C) in subparagraph (D)--
                            (i) by redesignating clauses (iii), (iv), 
                        and (v) as clauses (iv), (v), and (vi), 
                        respectively;
                            (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;''; and
                            (iii) in clause (v), as redesignated by 
                        clause (i) of this subparagraph, by striking 
                        ``evaluation standards'' and inserting 
                        ``performance standards'';
            (4) in paragraph (22)--
                    (A) in the paragraph heading, by striking ``state 
                plan supplement'';
                    (B) by striking ``carrying out part B of title VI, 
                including''; and
                    (C) by striking ``that part to supplement funds 
                made available under part B of'';
            (5) in paragraph (24)--
                    (A) in the paragraph heading, by striking 
                ``contracts'' and inserting ``grants''; and
                    (B) in subparagraph (A)--
                            (i) in the subparagraph heading, by 
                        striking ``Contracts'' and inserting 
                        ``Grants''; and
                            (ii) by striking ``part A of title VI'' and 
                        inserting ``section 109A''; and
            (6) 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 assessments 
                described in paragraph (15), and achieve the goals and 
                priorities identified by the State in that paragraph, 
                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. 482. 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 involved, 
        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 et 
        seq.) to promote access to assistive technology for individuals 
        with disabilities and employers.''.

SEC. 483. STANDARDS AND INDICATORS.

    (a) In General.--Section 106 of the Rehabilitation Act of 1973 (29 
U.S.C. 726) is amended--
            (1) in the section heading, by striking ``evaluation 
        standards'' and inserting ``performance standards'';
            (2) 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 (29 
        U.S.C. 2871(b)); and
            ``(2) may, at a State's discretion, include additional 
        indicators identified in the State plan submitted under section 
        101.''; and
            (3) 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''.
    (b) Conforming Amendments.--Section 107 of the Rehabilitation Act 
of 1973 (29 U.S.C. 727) is amended--
            (1) in subsections (a)(1)(B) and (b)(2), by striking 
        ``evaluation standards'' and inserting ``performance 
        standards''; and
            (2) in subsection (c)(1)(B), by striking ``an evaluation 
        standard'' and inserting ``a performance standard''.

SEC. 484. EXPENDITURE OF CERTAIN AMOUNTS.

    Section 108(a) of the Rehabilitation Act of 1973 (29 U.S.C. 728(a)) 
is amended by striking ``under part B of title VI, or''.

SEC. 485. COLLABORATION WITH INDUSTRY.

    The Rehabilitation Act of 1973 is amended by inserting after 
section 109 (29 U.S.C. 728a) the following:

``SEC. 109A. COLLABORATION WITH INDUSTRY.

    ``(a) 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.
    ``(b) 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 pay for the Federal 
share of the cost of carrying out collaborative programs, to create 
practical job and career readiness and training programs, and to 
provide job placements and career advancement.
    ``(c) Awards.--Grants under this section shall--
            ``(1) be awarded for a period not to exceed 5 years; and
            ``(2) be awarded competitively.
    ``(d) 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 
        collaborative 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.
    ``(e) 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.
    ``(f) 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.
    ``(g) Federal Share.--The Federal share for a program under this 
section shall not exceed 80 percent of the costs of the program.''.

SEC. 486. 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 or 
activities under sections 101(a)(26)(B) and 103(b)(6).''.

SEC. 487. 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 under the 
Developmental Disabilities and Bill of Rights Act of 2000 (42 U.S.C. 
15001 et seq.) to provide services in accordance with this section, as 
determined by the Secretary. The amount of such grants shall be the 
same as the amount provided to territories under this subsection.''.

SEC. 488. RESEARCH.

    Section 204(a)(2)(A) of the Rehabilitation Act of 1973 (29 U.S.C. 
764(a)(2)(A)) is amended by striking ``VI,''.

SEC. 489. TITLE III AMENDMENTS.

    Title III of the Rehabilitation Act of 1973 (29 U.S.C. 771 et seq.) 
is amended--
            (1) in section 301(a) (21 U.S.C. 771(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 (29 U.S.C. 772)--
                    (A) in subsection (g)--
                            (i) in the heading, by striking ``and In-
                        Service Training''; and
                            (ii) by striking paragraph (3); and
                    (B) in subsection (h), by striking ``section 306'' 
                and inserting ``section 304'';
            (3) in section 303 (29 U.S.C. 773)--
                    (A) in subsection (b)(1), by striking ``section 
                306'' and inserting ``section 304''; and
                    (B) in subsection (c)--
                            (i) in paragraph (4)--
                                    (I) by amending subparagraph 
                                (A)(ii) to read as follows:
                            ``(ii) to coordinate activities and work 
                        closely with the parent training and 
                        information centers established pursuant to 
                        section 671 of the Individuals with 
                        Disabilities Education Act (20 U.S.C. 1471), 
                        the community parent resource centers 
                        established pursuant to section 672 of such Act 
                        (29 U.S.C. 1472), and the eligible entities 
                        receiving awards under section 673 of such Act 
                        (20 U.S.C. 1473); and''; and
                                    (II) in subparagraph (C), by 
                                inserting ``, and demonstrate the 
                                capacity for serving,'' after 
                                ``serve''; and
                            (ii) by adding at the end the following:
            ``(8) Reservation.--From the amount appropriated to carry 
        out this subsection for a fiscal year, 20 percent of such 
        amount or $500,000, whichever is less, shall be reserved to 
        carry out paragraph (6).'';
            (4) by striking sections 304 and 305 (29 U.S.C. 774, 775); 
        and
            (5) by redesignating section 306 (29 U.S.C. 776) as section 
        304.

SEC. 490. REPEAL OF TITLE VI.

    Title VI of the Rehabilitation Act of 1973 (29 U.S.C. 795 et seq.) 
is repealed.

SEC. 491. TITLE VII GENERAL PROVISIONS.

    (a) Purpose.--Section 701(3) of the Rehabilitation Act of 1973 (29 
U.S.C. 796(3)) is amended by striking ``State programs of supported 
employment services receiving assistance under part B of title VI,''.
    (b) 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. 492. AUTHORIZATIONS OF APPROPRIATIONS.

    The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is further 
amended--
            (1) in section 100 (29 U.S.C. 720)--
                    (A) in subsection (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 
                2015 and each of the 6 succeeding fiscal years''; and
                    (B) in subsection (d)(1)(B), by striking ``2003'' 
                and inserting ``2021'';
            (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 
2015 through 2020.'';
            (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 2015 and 
        each of the 6 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 2015 and each of the 
        6 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 
        2015 and each of the 6 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 
        2015 and each of the 6 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 2015 and each 
        of the 6 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 
        2015 and each of the 6 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 
        2015 and each of the 6 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 2015 
        and each of the 6 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 2015 
        and each of the 6 succeeding fiscal years''; and
            (12) in section 753 (29 U.S.C. 796l), 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 2015 
        and each of the 6 succeeding fiscal years''.

SEC. 493. 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;
            (5) by striking the items related to title VI; and
            (6) by striking the item related to section 706 and 
        inserting the following:

``Sec. 706. Responsibilities of the Director.''.

             Subtitle F--Studies by the Comptroller General

SEC. 496. STUDY BY THE COMPTROLLER GENERAL ON EXHAUSTING FEDERAL PELL 
              GRANTS BEFORE ACCESSING WIA FUNDS.

    Not later than 12 months after the date of enactment of this Act, 
the Comptroller General of the United States shall complete and 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 a report that--
            (1) evaluates the effectiveness of subparagraph (B) of 
        section 134(d)(4) of the Workforce Investment Act of 1998 (29 
        U.S.C. 2864(d)(4)(B)) (as such subparagraph was in effect on 
        the day before the date of enactment of this Act), including--
                    (A) a review of the regulations and guidance issued 
                by the Secretary of Labor to State and local areas on 
                how to comply with such subparagraph;
                    (B) a review of State policies to determine how 
                local areas are required to comply with such 
                subparagraph;
                    (C) a review of local area policies to determine 
                how one-stop operators are required to comply with such 
                subparagraph; and
                    (D) a review of a sampling of individuals receiving 
                training services under section 134(d)(4) of the 
                Workforce Investment Act of 1998 (29 U.S.C. 2864(d)(4)) 
                to determine if, before receiving such training 
                services, such individuals have exhausted funds 
                received through the Federal Pell Grant program under 
                title IV of the Higher Education Act of 1965 (20 U.S.C. 
                1070 et seq.); and
            (2) makes appropriate recommendations with respect to the 
        matters evaluated under paragraph (1).

SEC. 497. STUDY BY THE COMPTROLLER GENERAL ON ADMINISTRATIVE COST 
              SAVINGS.

    (a) Study.--Not later than 12 months after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall complete and 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 a report that--
            (1) determines the amount of administrative costs at the 
        Federal and State levels for the most recent fiscal year for 
        which satisfactory data are available for--
                    (A) each of the programs authorized under the 
                Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
                seq.) or repealed under section 401 of this Act, as 
                such programs were in effect for such fiscal year; and
                    (B) each of the programs described in subparagraph 
                (A) that have been repealed or consolidated on or after 
                the date of enactment of this Act;
            (2) determines the amount of administrative cost savings at 
        the Federal and State levels as a result of repealing and 
        consolidating programs by calculating the differences in the 
        amount of administrative costs between subparagraph (A) and 
        subparagraph (B) of paragraph (1); and
            (3) estimates the administrative cost savings at the 
        Federal and State levels for a fiscal year as a result of 
        States consolidating amounts under section 501(e) of the 
        Workforce Investment Act of 1998 (20 U.S.C. 9271(e)) to reduce 
        inefficiencies in the administration of federally funded State 
        and local employment and training programs.
    (b) Definition.--For purposes of this section, the term 
``administrative costs'' has the meaning given the term in section 101 
of the Workforce Investment Act of 1998 (29 U.S.C. 2801).

                            TITLE V--OFFSET

SEC. 501. NONDEFENSE DISCRETIONARY SPENDING.

    Section 251(c)(2)(B) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by striking ``$492,356,000,000'' and 
inserting ``$482,356,000,000''.
                                 <all>
```