II 

109TH CONGRESS 

1ST SESSION S. 9 

To improve American competitiveness in the global economy by improving 

and strengthening Federal education and training programs, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 24, 2005 

Mr. ENZI (for himself, Mr. FRIST, and Mr. MCCONNELL) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To improve American competitiveness in the global economy 

by improving and strengthening Federal education and 

training programs, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Lifetime of Education Opportunities Act of 2005’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Table of contents. 

Sec. 2. Findings. 

Sec. 3. Purpose. 
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TITLE I—EARLY CHILDHOOD PROGRAMS 

Sec. 101. Sense of the Senate regarding Head Start. 

TITLE II—ELEMENTARY AND SECONDARY PROGRAMS 

Subtitle A—Elementary School Programs 

Sec. 211. Sense of the Senate regarding elementary and secondary education. 

Subtitle B—Secondary School Programs 

Sec. 221. Sense of the Senate regarding career and technical education. 

Sec. 222. Sense of the Senate regarding mathematics and science education. 

TITLE III—TEACHER PREPARATION 

Subtitle A—Teacher Loan Forgiveness 

Sec. 311. Sense of the Senate regarding loan forgiveness for teachers. 

Subtitle B—Preparing Teachers 

Sec. 321. Sense of the Senate regarding teacher preparation. 

Sec. 322. Teacher quality enhancement grants for States and partnerships. 

Subtitle C—Merit Pay 

Sec. 331. Sense of the Senate regarding teacher incentives. 

Subtitle D—Classroom Expense Deduction 

Sec. 341. Sense of the Senate regarding teacher tax credits. 

TITLE IV—HIGHER EDUCATION AND LIFELONG LEARNING 

OPPORTUNITIES 

Subtitle A—Higher Education 

Sec. 411. Sense of the Senate regarding higher education and lifelong learning 

opportunities. 

Sec. 412. Sense of the Senate regarding minority serving institutions. 

Subtitle B—Workforce Investment Act Amendments of 2005 

Sec. 421. Short title. 

Sec. 422. References. 

CHAPTER 1—AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT

ACT OF 1998 

SUBCHAPTER A—DEFINITIONS

Sec. 431. Definitions. 

SUBCHAPTER B—STATEWIDE AND LOCAL WORKFORCE INVESTMENT SYSTEMS

Sec. 432. Purpose. 

Sec. 432A. State workforce investment boards. 

Sec. 432B. State plan. 

Sec. 432C. Local workforce investment areas. 
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Sec. 432D. Local workforce investment boards. 

Sec. 432E. Local plan. 

Sec. 432F. Establishment of one-stop delivery systems. 

Sec. 432G. Eligible providers of training services. 

Sec. 432H. Eligible providers of youth activities. 

Sec. 432I. Youth activities. 

Sec. 432J. Adult and dislocated worker employment and training activities. 

Sec. 432K. Performance accountability system. 

Sec. 432L. Authorization of appropriations. 

SUBCHAPTER C—JOB CORPS

Sec. 433. Job Corps. 

SUBCHAPTER D—NATIONAL PROGRAMS

Sec. 434. Native American programs. 

Sec. 434A. Migrant and seasonal farmworker programs. 

Sec. 434B. Veterans’ workforce investment programs. 

Sec. 434C. Youth challenge grants. 

Sec. 434D. Technical assistance. 

Sec. 434E. Demonstration, pilot, multiservice, research, and multistate 

projects. 

Sec. 434F. National dislocated worker grants. 

Sec. 434G. Authorization of appropriations for national activities. 

SUBCHAPTER E—ADMINISTRATION

Sec. 435. Requirements and restrictions. 

Sec. 435A. Reports. 

Sec. 435B. Administrative provisions. 

Sec. 435C. Use of certain real property. 

Sec. 435D. Table of contents. 

SUBCHAPTER F—INCENTIVE GRANTS

Sec. 436. Incentive grants. 

SUBCHAPTER G—CONFORMING AMENDMENTS

Sec. 437. Conforming amendments. 

CHAPTER 2—AMENDMENTS TO THE ADULT EDUCATION AND FAMILY

LITERACY ACT

Sec. 441. Short title; purpose. 

Sec. 441A. Definitions. 

Sec. 441B. Authorization of appropriations. 

Sec. 441C. Home schools. 

Sec. 441D. Reservation of funds; grants to eligible agencies; allotments. 

Sec. 441E. Performance accountability system. 

Sec. 441F. State administration. 

Sec. 441G. State distribution of funds; matching requirement. 

Sec. 441H. State leadership activities. 

Sec. 441I. State plan. 

Sec. 441J. Programs for corrections education and other institutionalized individuals. 

Sec. 441K. Grants and contracts for eligible providers. 

Sec. 441L. Local application. 
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Sec. 441M. Local administrative cost limits. 

Sec. 441N. Administrative provisions. 

Sec. 441O. National Institute for Literacy. 

Sec. 441P. National leadership activities. 

Sec. 441Q. Integrated English literacy and civics education. 

Sec. 441R. Transition. 

CHAPTER 3—AMENDMENTS TO OTHER PROVISIONS OF LAW

Sec. 451. Wagner-Peyser Act. 

CHAPTER 4—REHABILITATION ACT AMENDMENTS

Sec. 461. Short title. 

Sec. 461A. Technical amendments to table of contents. 

Sec. 461B. Purpose. 

Sec. 461C. Definitions. 

Sec. 461D. Administration of the Act. 

Sec. 461E. Carryover. 

SUBCHAPTER A—VOCATIONAL REHABILITATION SERVICES

Sec. 462. Declaration of policy; authorization of appropriations. 

Sec. 462A. State plans. 

Sec. 462B. Eligibility and individualized plan for employment. 

Sec. 462C. Vocational rehabilitation services. 

Sec. 462D. State rehabilitation council. 

Sec. 462E. Evaluation standards and performance indicators. 

Sec. 462F. State allotments. 

Sec. 462G. Client assistance program. 

Sec. 462H. Incentive grants. 

Sec. 462I. Vocational rehabilitation services grants. 

Sec. 462J. GAO studies. 

SUBCHAPTER B—RESEARCH AND TRAINING

Sec. 463. Authorization of appropriations. 

Sec. 463A. National Institute on Disability and Rehabilitation Research. 

Sec. 464B. Research and other covered activities. 

Sec. 464C. Rehabilitation Research Advisory Council. 

SUBCHAPTER C—PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND

DEMONSTRATIONS

Sec. 464. Training. 

Sec. 464A. Demonstration and training programs. 

Sec. 464B. Migrant and seasonal farmworkers. 

Sec. 464C. Recreational programs. 

SUBCHAPTER D—NATIONAL COUNCIL ON DISABILITY

Sec. 465. Authorization of appropriations. 

SUBCHAPTER E—RIGHTS AND ADVOCACY

Sec. 466. Architectural and Transportation Barriers Compliance Board. 

Sec. 466A. Protection and advocacy of individual rights. 
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SUBCHAPTER F—EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH

DISABILITIES

Sec. 467. Projects with industry authorization of appropriations. 

Sec. 467A. Services for individuals with significant disabilities authorization of 

appropriations. 

SUBCHAPTER G—INDEPENDENT LIVING SERVICES AND CENTERS FOR

INDEPENDENT LIVING

Sec. 468. State plan. 

Sec. 468A. Statewide Independent Living Council. 

Sec. 468B. Independent living services authorization of appropriations. 

Sec. 468C. Program authorization. 

Sec. 468D. Grants to centers for independent living in States in which Federal 

funding exceeds State funding. 

Sec. 468E. Grants to centers for independent living in States in which State 

funding equals or exceeds Federal funding. 

Sec. 468F. Standards and assurances for centers for independent living. 

Sec. 468G. Centers for independent living authorization of appropriations. 

Sec. 468H. Independent living services for older individuals who are blind. 

Sec. 468I. Program of grants. 

Sec. 468J. Independent living services for older individuals who are blind authorization of appropriations. 

SUBCHAPTER H—MISCELLANEOUS

Sec. 469. Helen Keller National Center Act. 

CHAPTER 5—TRANSITION AND EFFECTIVE DATE

Sec. 471. Transition provisions. 

Sec. 471A. Effective date. 

TITLE V—MAKING EDUCATION MORE AFFORDABLE 

Sec. 501. Sense of the Senate regarding making education more affordable. 

Sec. 502. Affordable education provisions made permanent. 

Sec. 503. Credit for education, tuition, and transportation expenses of students 

assigned to schools identified for school improvement. 

1 SEC. 2. FINDINGS. 

2 Congress makes the following findings: 

3 (1) Most children enter Head Start at a great 

4 disadvantage, with early literacy and mathematics 

5 skills substantially below national averages. The typ6 ical Head Start child enters at approximately the 

7 16th percentile in vocabulary and early writing 

8 skills, at approximately the 31st percentile in letter 
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1 recognition, and at approximately the 21st percentile 

2 in early mathematics, when compared to the full 

3 spectrum of American children in the same age 

4 range. 

5 (2) Despite gains in vocabulary and early writ6 ing skills, Head Start children still trail in these 

7 measures compared to national averages. 

8 (3) Community-based organizations, including 

9 faith-based organizations, have historically had a 

10 long and distinguished record of meeting, address11 ing, and responding to the needs of the poor through 

12 a variety of health, educational, and social service 

13 programs. 

14 (4) For many parents in rural and urban areas, 

15 public school choice provided for under the amend16 ments made by the No Child Left Behind Act of 

17 2001 is not a meaningful option due to physical 

18 proximity and capacity constraints. 

19 (5) American 15-year-olds performed below the 

20 international average in mathematics literacy and 

21 problem-solving, according to the 2003 Program for 

22 International Student Assessment (PISA). 

23 (6) American students scored below the inter24 national average in science literacy in 2003. 
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1 (7) American students’ 12th grader perform2 ance in reading has declined. The number of 12th 

3 graders scoring below basic (12th graders who failed 

4 to demonstrate any partial mastery of 12th grade 

5 reading skills) increased over time, and now over a 

6 quarter of 12th graders cannot read at grade level. 

7 Less than 36 percent of 12th graders are even con8 sidered proficient readers. 

9 (8) Of all students entering 9th grade four 

10 years ago, only 68 percent are expected to graduate 

11 this year, and for minority students this number 

12 hovers around 50 percent. 

13 (9) Individuals who did not finish high school 

14 comprise the only group of Americans that consist15 ently lost jobs over the past decade. High school 

16 dropouts have an unemployment rate nearly twice 

17 the level of high school graduates. 

18 (10) Nothing is more important to a child’s 

19 success in school than a well prepared teacher who 

20 has a strong command of the subject matter the 

21 teacher is teaching. 

22 (11) Schools across the Nation are experiencing 

23 difficulty in recruiting and retaining qualified math24 ematics, science, and special education teachers. 
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1 (12) Attracting qualified mathematics, science, 

2 and special education teachers to the teaching pro3 fession and retaining the teachers in the profession 

4 is vital to America’s economic competitiveness and 

5 national security, and critical to ensuring that no 

6 child is left behind. America’s competitiveness is de7 pendent on the skills of its workforce. 

8 (13) Seventy-three percent of all postsecondary 

9 education students are non-traditional, and are 

10 mostly working adults. 

11 (14) College graduates earn 100 percent more 

12 during their lifetime than high school graduates. 

13 This rate has doubled in less than 20 years. 

14 (15) Jobs requiring a bachelor’s degree will 

15 grow by 25 percent by the year 2008, while those re16 quiring an associate degree will grow by nearly one17 third. 

18 (16) Eighty-five percent of today’s jobs are 

19 classified as skilled. 

20 (17) Two-thirds of the 7,000,000 worker gap in 

21 2010 will be a skilled worker shortage. 

22 (18) Our future competitiveness depends on our 

23 workforce, and the quality of our workforce depends 

24 on education. 
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1 SEC. 3. PURPOSE. 

2 It is the purpose of this Act to improve American 

3 competitiveness in the global economy by improving and 

4 strengthening Federal education and training programs, 

5 through— 

6 (1) setting high expectations and raising 

7 achievement for all students, regardless of their 

8 background; 

9 (2) improving accountability for results; 

10 (3) providing flexibility for States to manage 

11 Federal program dollars most effectively; and 

12 (4) supporting a lifetime of learning opportuni13 ties for students at all stages in life. 

14 TITLE I—EARLY CHILDHOOD 

15 PROGRAMS 

16 SEC. 101. SENSE OF THE SENATE REGARDING HEAD START. 

17 It is the sense of the Senate that as the Senate con18 siders the reauthorization of the Head Start Act (42 

19 U.S.C. 9831 et seq.), the Senate should explore efforts 

20 to— 

21 (1) establish new educational standards that en22 sure children enrolled in Head Start— 

23 (A) develop and demonstrate a variety of 

24 early learning skills; and 

25 (B) are able to compete effectively with 

26 other children entering kindergarten programs; 
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1 (2) encourage the coordination and alignment 

2 of Head Start with other publicly funded early child3 hood programs; and 

4 (3) support efforts to improve fiscal manage5 ment and accountability. 

6 TITLE II—ELEMENTARY AND 

7 SECONDARY PROGRAMS 

8 Subtitle A—Elementary School 

9 Programs 

10 SEC. 211. SENSE OF THE SENATE REGARDING ELEMEN11 TARY AND SECONDARY EDUCATION. 

12 It is the sense of the Senate that— 

13 (1) in keeping with the spirit of the No Child 

14 Left Behind Act of 2001, supplemental services 

15 should be made available earlier than required by 

16 the No Child Left Behind Act of 2001 to those par17 ents who cannot access public school choice; 

18 (2) in rural areas where a variety of supple19 mental services may not be available, distance edu20 cation should be encouraged; and 

21 (3) the Federal Government should consider en22 couraging school districts to offer supplemental serv23 ices after a school has entered its second year of 

24 school improvement under title I of the Elementary 
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1 and Secondary Education Act of 1965 (20 U.S.C. 

2 6301 et seq.). 

3 Subtitle B—Secondary School 

4 Programs 

5 SEC. 221. SENSE OF THE SENATE REGARDING CAREER AND 

6 TECHNICAL EDUCATION. 

7 It is the sense of the Senate that as the Senate con8 siders the reauthorization of the Carl D. Perkins Voca9 tional and Technical Education Act of 1998 (20 U.S.C. 

10 2301 et seq.), the Senate should explore efforts to— 

11 (1) strengthen the academic focus of career and 

12 technical education programs in high school and col13 lege; 

14 (2) improve coordination between secondary 

15 and postsecondary career and technical education 

16 programs, including efforts to allow students to at17 tend dual-enrollment programs to earn college credit; 

18 (3) support partnerships among secondary 

19 schools, postsecondary institutions, area career tech20 nical centers, business and industry, professional as21 sociations, and intermediaries; 

22 (4) integrate career and technical education 

23 courses with rigorous and challenging academic 

24 courses; 
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1 (5) develop a highly skilled workforce needed to 

2 keep America competitive in the global economy in 

3 conjunction with other Federal education and train4 ing programs, including workforce investment pro5 grams, that provide lifelong learning for the work6 force of today and tomorrow; and 

7 (6) support the continued integration of tech8 nology into career and technical education programs. 

9 SEC. 222. SENSE OF THE SENATE REGARDING MATHE10 MATICS AND SCIENCE EDUCATION. 

11 It is the sense of the Senate that— 

12 (1) better mathematics, science and reading 

13 programs in high school are needed to ensure that 

14 every student graduates with the skills necessary to 

15 succeed in postsecondary education and a globally 

16 competitive workforce; and 

17 (2) more emphasis should be provided on ensur18 ing that low-income schools offer Advanced Place19 ment and International Baccalaureate courses. 
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1 TITLE III—TEACHER 

2 PREPARATION 

3 Subtitle A—Teacher Loan 

4 Forgiveness 

5 SEC. 311. SENSE OF THE SENATE REGARDING LOAN FOR6 GIVENESS FOR TEACHERS. 

7 It is the sense of the Senate that Congress should 

8 support the recruitment and retention of highly qualified 

9 teachers by encouraging the use of recently expanded loan 

10 forgiveness for mathematics, science, and special edu11 cation teachers who agree to teach in a high need area 

12 for 5 years, which should help ensure that each child re13 ceives a quality education. 

14 Subtitle B—Preparing Teachers 

15 SEC. 321. SENSE OF THE SENATE REGARDING TEACHER 

16 PREPARATION. 

17 It is the sense of the Senate that in order to ensure 

18 a quality teaching force, institutions of higher education 

19 should be held accountable for producing highly qualified 

20 teachers for every classroom. 

21 SEC. 322. TEACHER QUALITY ENHANCEMENT GRANTS FOR 

22 STATES AND PARTNERSHIPS. 

23 Part A of title II of the Higher Education Act of 

24 1965 (20 U.S.C. 1021 et seq.) is amended to read as fol25 lows: 
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1 ‘‘PART A—TEACHER QUALITY ENHANCEMENT 

2 GRANTS FOR STATES AND PARTNERSHIPS 

3 ‘‘SEC. 201. PURPOSES; DEFINITIONS. 

4 ‘‘(a) PURPOSES.—The purposes of this part are to— 

5 ‘‘(1) improve student achievement; 

6 ‘‘(2) improve the quality of the current and fu7 ture teaching force by improving the preparation of 

8 prospective teachers and enhancing professional de9 velopment activities; 

10 ‘‘(3) hold institutions of higher education ac11 countable for preparing highly qualified teachers; 

12 and 

13 ‘‘(4) recruit qualified individuals, including mi14 norities and individuals from other occupations, into 

15 the teaching force. 

16 ‘‘(b) DEFINITIONS.—In this part: 

17 ‘‘(1) ARTS AND SCIENCES.—The term ‘arts and 

18 sciences’ means— 

19 ‘‘(A) when referring to an organizational 

20 unit of an institution of higher education, any 

21 academic unit that offers 1 or more academic 

22 majors in disciplines or content areas cor23 responding to the academic subject areas in 

24 which teachers provide instruction; and 

25 ‘‘(B) when referring to a specific academic 

26 subject area, the disciplines or content areas in 
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1 which academic majors are offered by the arts 

2 and science organizational unit. 

3 ‘‘(2) EDUCATIONAL SERVICE AGENCY.—The 

4 term ‘educational service agency’ has the meaning 

5 given such term in section 9101 of the Elementary 

6 and Secondary Education Act of 1965. 

7 ‘‘(3) EXEMPLARY TEACHER.—The term ‘exem8 plary teacher’ has the meaning given such term in 

9 section 9101 of the Elementary and Secondary Edu10 cation Act of 1965. 

11 ‘‘(4) HIGHLY QUALIFIED.—The term ‘highly 

12 qualified’ has the meaning given such term in sec13 tion 9101 of the Elementary and Secondary Edu14 cation Act of 1965. 

15 ‘‘(5) HIGH-NEED LOCAL EDUCATIONAL AGEN16 CY.—The term ‘high-need local educational agency’ 

17 means a local educational agency— 

18 ‘‘(A)(i) that serves not fewer than 10,000 

19 children from families with incomes below the 

20 poverty line; 

21 ‘‘(ii) for which not less than 20 percent of 

22 the children served by the agency are from fam23 ilies with incomes below the poverty line; or 

24 ‘‘(iii) with a total of less than 600 students 

25 in average daily attendance at the schools that 
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1 are served by the agency and all of whose 

2 schools are designated with a school locale code 

3 of 7 or 8, as determined by the Secretary; and 

4 ‘‘(B)(i) for which there is a high percent5 age of teachers not teaching in the academic 

6 subject areas or grade levels in which the teach7 ers were trained to teach; or 

8 ‘‘(ii) for which there is a high percentage 

9 of teachers with emergency, provisional, or tem10 porary certification or licensing. 

11 ‘‘(6) POVERTY LINE.—The term ‘poverty line’ 

12 means the poverty line (as defined by the Office of 

13 Management and Budget, and revised annually in 

14 accordance with section 673(2) of the Community 

15 Services Block Grant Act (42 U.S.C. 9902(2))) ap16 plicable to a family of the size involved. 

17 ‘‘(7) PROFESSIONAL DEVELOPMENT.—The 

18 term ‘professional development’ has the meaning 

19 given such term in section 9101 of the Elementary 

20 and Secondary Education Act of 1965. 

21 ‘‘(8) SCIENTIFICALLY BASED READING RE22 SEARCH.—The term ‘scientifically based reading re23 search’ has the meaning given such term in section 

24 1208 of the Elementary and Secondary Education 

25 Act of 1965. 
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1 ‘‘(9) SCIENTIFICALLY BASED RESEARCH.—The 

2 term ‘scientifically based research’ has the meaning 

3 given such term in section 9101 of the Elementary 

4 and Secondary Education Act of 1965. 

5 ‘‘(10) TEACHING SKILLS.—The term ‘teaching 

6 skills’ means the ability to— 

7 ‘‘(A) increase student achievement; 

8 ‘‘(B) effectively convey and explain aca9 demic subject matter; 

10 ‘‘(C) employ strategies that— 

11 ‘‘(i) are based on scientifically based 

12 research; 

13 ‘‘(ii) are specific to academic subject 

14 matter; and 

15 ‘‘(iii) focus on identification and tai16 loring of academic instruction to students’ 

17 specific learning needs, particularly stu18 dents with disabilities, students with spe19 cial learning needs (including students who 

20 are gifted and talented), and students with 

21 limited-English proficiency; 

22 ‘‘(D) conduct ongoing assessment of stu23 dent learning; and 

24 ‘‘(E) effectively manage a classroom. 
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1 ‘‘SEC. 202. STATE GRANTS. 

2 ‘‘(a) IN GENERAL.—From amounts made available 

3 under section 209(a)(1) for a fiscal year, the Secretary 

4 is authorized to award grants under this section, on a 

5 competitive basis, to eligible States to enable the eligible 

6 States to carry out the activities described in subsection 

7 (d). 

8 ‘‘(b) ELIGIBLE STATE.— 

9 ‘‘(1) DEFINITION.—In this part, the term ‘eligi10 ble State’ means— 

11 ‘‘(A) the Governor of a State; or 

12 ‘‘(B) in the case of a State for which the 

13 constitution or law of such State designates an14 other individual, entity, or agency in the State 

15 to be responsible for teacher certification and 

16 preparation activity, such individual, entity, or 

17 agency. 

18 ‘‘(2) CONSULTATION.—The Governor or the in19 dividual, entity, or agency designated under para20 graph (1)(B) shall consult with the Governor, State 

21 board of education, State educational agency, or 

22 State agency for higher education, as appropriate, 

23 with respect to the activities assisted under this sec24 tion. 

25 ‘‘(3) CONSTRUCTION.—Nothing in this sub26 section shall be construed to negate or supersede the 
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1 legal authority under State law of any State agency, 

2 State entity, or State public official over programs 

3 that are under the jurisdiction of the agency, entity, 

4 or official. 

5 ‘‘(c) APPLICATION.—To be eligible to receive a grant 

6 under this section, an eligible State shall, at the time of 

7 the initial grant application, submit an application to the 

8 Secretary that— 

9 ‘‘(1) meets the requirement of this section; 

10 ‘‘(2) demonstrates that the eligible State is in 

11 full compliance with sections 206(b) and 207 and, if 

12 applicable, sections 207(a) and 208 of this Act as 

13 such sections were in effect on the day before the 

14 date of enactment of the Higher Education Amend15 ments of 2004; 

16 ‘‘(3) includes a description of how the eligible 

17 State intends to use funds provided under this sec18 tion; 

19 ‘‘(4) includes measurable objectives for the use 

20 of the funds provided under this section; 

21 ‘‘(5) describes how funded activities will reduce 

22 shortages, if any, of highly qualified teachers in low23 income urban and rural areas and in high-need aca24 demic subject areas, and how such activities will be 

25 consistent with State, local, and other education re-
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1 form activities that promote student academic 

2 achievement, including how funded activities will 

3 support carrying out requirements of the eligible 

4 State under sections 1111(h)(1)(C)(viii) and 1119 of 

5 the Elementary and Secondary Education Act of 

6 1965; 

7 ‘‘(6) contains an assurance that the eligible 

8 State will carry out each of the intended uses of 

9 grant funds described in paragraph (3); and 

10 ‘‘(7) contains such other information and assur11 ances as the Secretary may require. 

12 ‘‘(d) USES OF FUNDS.—An eligible State that re13 ceives a grant under this section shall use the grant funds 

14 to reform teacher preparation requirements, to coordinate 

15 with State activities under section 2113(c) of the Elemen16 tary and Secondary Education Act of 1965, and to ensure 

17 that current and future teachers are highly qualified, by 

18 carrying out 1 or more of the following activities: 

19 ‘‘(1) REFORMS.—Ensuring that all teacher 

20 preparation programs in the State are preparing 

21 teachers to become highly qualified, to understand 

22 scientifically based research and its applicability, 

23 and to use technology effectively, including use for 

24 instructional techniques to improve student academic 

25 achievement, by assisting such programs— 
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1 ‘‘(A) in retraining faculty; 

2 ‘‘(B) in designing (or redesigning) teacher 

3 preparation programs so that such programs— 

4 ‘‘(i) are based on rigorous academic 

5 content and scientifically based research 

6 (including scientifically based reading re7 search), and aligned with challenging State 

8 academic content standards; and 

9 ‘‘(ii) promote strong teaching skills; 

10 and 

11 ‘‘(C) in ensuring collaboration with depart12 ments, programs, or units outside of the teach13 er preparation program in all academic content 

14 areas to ensure a successful combination of 

15 training in both teaching and such content. 

16 ‘‘(2) CERTIFICATION OR LICENSURE REQUIRE17 MENTS.—Reforming teacher certification (including 

18 recertification) or licensing requirements to ensure 

19 that— 

20 ‘‘(A) teachers have the academic content 

21 knowledge and teaching skills in the academic 

22 subject areas that the teachers teach that are 

23 necessary to help students meet challenging 

24 State student academic achievement standards; 

25 and 
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1 ‘‘(B) such requirements are aligned with 

2 challenging State academic content standards. 

3 ‘‘(3) ALTERNATIVES TO TRADITIONAL PREPA4 RATION FOR TEACHING AND STATE CERTIFI5 CATION.—Providing prospective teachers with alter6 native routes to State certification and traditional 

7 preparation to become highly qualified teachers 

8 through— 

9 ‘‘(A) innovative approaches that reduce un10 necessary barriers to State certification while 

11 producing highly qualified teachers; 

12 ‘‘(B) programs that provide support to 

13 teachers during their initial years in the profes14 sion; and 

15 ‘‘(C) alternative routes to State certifi16 cation of teachers for qualified individuals, in17 cluding mid-career professionals from other oc18 cupations, former military personnel, and recent 

19 college graduates with records of academic dis20 tinction. 

21 ‘‘(4) INNOVATIVE PROGRAMS.—Planning and 

22 implementing innovative programs to enhance the 

23 ability of institutions of higher education, such as 

24 charter colleges of education or university and local 
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1 educational agency partnership schools, to prepare 

2 highly qualified teachers that— 

3 ‘‘(A) permit flexibility in meeting State re4 quirements as long as graduates, during their 

5 initial years in the profession, increase student 

6 academic achievement; 

7 ‘‘(B) provide long-term data gathered from 

8 teachers’ performance over multiple years in the 

9 classroom on their ability to increase student 

10 academic achievement; 

11 ‘‘(C) ensure high-quality preparation of 

12 teachers from underrepresented groups; and 

13 ‘‘(D) create performance measures that 

14 can be used to document the effectiveness of in15 novative methods for preparing highly qualified 

16 teachers. 

17 ‘‘(5) TEACHER RECRUITMENT AND RETEN18 TION.—Undertaking activities that develop and im19 plement effective mechanisms to ensure that local 

20 educational agencies and schools are able effectively 

21 to recruit and retain highly qualified teachers, in22 cluding the following activities: 

23 ‘‘(A) MERIT PAY.—Developing, or assisting 

24 local educational agencies in developing— 
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1 ‘‘(i) merit-based performance systems 

2 that reward teachers who increase student 

3 academic achievement; and 

4 ‘‘(ii) strategies that provide differen5 tial and bonus pay in high-need local edu6 cational agencies to recruit and retain— 

7 ‘‘(I) principals; 

8 ‘‘(II) highly qualified teachers 

9 who teach in high-need academic sub10 ject areas, such as reading, mathe11 matics, and science; 

12 ‘‘(III) highly qualified teachers 

13 who teach in schools identified for 

14 school improvement under section 

15 1116(b) of the Elementary and Sec16 ondary Education Act of 1965; 

17 ‘‘(IV) special education teachers; 

18 ‘‘(V) teachers specializing in 

19 teaching limited-English proficient 

20 children; and 

21 ‘‘(VI) highly qualified teachers in 

22 low-income urban and rural schools or 

23 districts. 

24 ‘‘(B) TEACHER ADVANCEMENT.—Devel25 oping, or assisting local educational agencies in 
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1 developing, teacher advancement and retention 

2 initiatives that promote professional growth and 

3 emphasize multiple career paths (such as paths 

4 to becoming a highly qualified mentor teacher 

5 or exemplary teacher) and pay differentiation. 

6 ‘‘(6) TEACHER SCHOLARSHIPS AND SUPPORT.— 

7 Providing— 

8 ‘‘(A) scholarships to help students, such as 

9 individuals who have been accepted by, or who 

10 are enrolled in, a program of undergraduate 

11 education at an institution of higher education, 

12 pay the costs of tuition, room, board, and other 

13 expenses of completing a teacher preparation 

14 program, provided that— 

15 ‘‘(i) the Secretary shall establish such 

16 requirements as the Secretary determines 

17 necessary to ensure that recipients of 

18 scholarships under this section who com19 plete teacher preparation programs— 

20 ‘‘(I) subsequently teach in a 

21 high-need local educational agency for 

22 a period of time equivalent to 1 year, 

23 increased by the period for which the 

24 recipient received scholarship assist25 ance; or 
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1 ‘‘(II) repay the amount of the 

2 scholarship; 

3 ‘‘(ii) the Secretary shall use any such 

4 repayments to carry out additional activi5 ties under this paragraph; and 

6 ‘‘(iii) the eligible State shall provide 

7 an assurance that it will recruit minority 

8 students to become highly qualified teach9 ers; 

10 ‘‘(B) support services, if needed, to enable 

11 scholarship recipients to complete postsecondary 

12 education programs, or to move from a career 

13 outside of the field of education into a teaching 

14 career; and 

15 ‘‘(C) follow-up services to former scholar16 ship recipients during their initial years of 

17 teaching. 

18 ‘‘(7) TEACHER REMOVAL.—Developing and im19 plementing effective mechanisms to ensure that local 

20 educational agencies and schools are able to remove 

21 expeditiously incompetent or unqualified teachers 

22 consistent with procedures to ensure due process for 

23 the teachers. 

24 ‘‘(8) TEACHER EFFECTIVENESS.—Developing— 
27 

•S 9 IS 

1 ‘‘(A) systems to measure the effectiveness 

2 of teacher preparation programs and profes3 sional development programs; and 

4 ‘‘(B) strategies to document gains in stu5 dent academic achievement or increases in 

6 teacher mastery of the academic subject matter 

7 the teachers teach as a result of such programs. 

8 ‘‘(9) PRESCHOOL TEACHERS.—Developing 

9 strategies to improve and expand teacher prepara10 tion programs for preschool teachers, including 

11 training in the science of language acquisition and 

12 the development of fundamental early literacy skills. 

13 ‘‘(10) PROFESSIONAL DEVELOPMENT.—Devel14 oping and enhancing high-quality professional devel15 opment, instructional, and training materials for 

16 kindergarten through grade 12 teachers and expand17 ing the access of such information through the use 

18 of technology. 

19 ‘‘(11) TECHNOLOGY.—Assisting teachers to use 

20 technology effectively, including use for instructional 

21 techniques and the collection, management, and 

22 analysis of data to improve teaching, learning, and 

23 decisionmaking for the purpose of increasing student 

24 academic achievement. 
28 

•S 9 IS 

1 ‘‘(12) FOREIGN LANGUAGE INSTRUCTION.—Ex2 panding access to programs of instruction in foreign 

3 languages, including less commonly taught lan4 guages, through the use of technology, such as com5 puter-assisted instruction or distance learning, when 

6 appropriate. 

7 ‘‘(13) TECHNICAL ASSISTANCE.—Providing 

8 technical assistance to low-performing programs of 

9 teacher preparation within institutions of higher 

10 education identified under section 207(a). 

11 ‘‘(14) EVALUATION SUPPORT.—Performing 

12 data collection, evaluation, and reporting to meet the 

13 requirements of subsection (e). 

14 ‘‘(e) EVALUATION.— 

15 ‘‘(1) ANNUAL EVALUATION.—An eligible State 

16 that receives a grant under this section shall evalu17 ate annually the effectiveness of teacher preparation 

18 programs and professional development activities 

19 within the State, carried out using funds provided 

20 under this section. To the extent practicable, such 

21 evaluation shall examine— 

22 ‘‘(A) gains in student achievement as a re23 sult of the programs and activities; 

24 ‘‘(B) teachers’ contribution to improving 

25 student academic achievement, as measured by 
29 

•S 9 IS 

1 State academic assessments required under sec2 tion 1111(b)(3) of the Elementary and Sec3 ondary Education Act of 1965; and 

4 ‘‘(C) teacher mastery of the academic sub5 ject matter the teachers teach, as measured by 

6 pre- and post-participation tests of teacher 

7 knowledge, as appropriate. 

8 ‘‘(2) PUBLIC REPORTING.—The eligible State 

9 shall make the information described in paragraph 

10 (1) widely available through public means, such as 

11 posting on the Internet, distribution to the media, 

12 and distribution through public agencies. 

13 ‘‘(f) SUPPLEMENT, NOT SUPPLANT.—Funds made 

14 available under this section shall be used to supplement, 

15 and not supplant, other Federal, State, and local funds 

16 that would otherwise be expended to carry out activities 

17 under this section. 

18 ‘‘SEC. 203. PARTNERSHIP GRANTS. 

19 ‘‘(a) GRANTS.—From amounts made available under 

20 section 209(a)(2) for a fiscal year, the Secretary is author21 ized to award grants under this section, on a competitive 

22 basis, to eligible partnerships to enable the eligible part23 nerships to carry out the activities described in subsections 

24 (e) and (f). 

25 ‘‘(b) DEFINITIONS.— 
30 

•S 9 IS 

1 ‘‘(1) ELIGIBLE PARTNERSHIP.—In this part, 

2 the term ‘eligible partnership’ means an entity 

3 that— 

4 ‘‘(A) includes— 

5 ‘‘(i) a partner institution; 

6 ‘‘(ii) a school of arts and sciences; 

7 ‘‘(iii) a high-need local educational 

8 agency; and 

9 ‘‘(iv) a public or private educational 

10 organization; and 

11 ‘‘(B) may include a Governor, State edu12 cational agency, the State board of education, 

13 the State agency for higher education, an insti14 tution of higher education not described in sub15 paragraph (A), a public charter school, a public 

16 or private elementary school or secondary 

17 school, a public or private nonprofit educational 

18 organization, a business, a science-, mathe19 matics-, or technology-oriented entity, a faith20 based or community organization, a prekinder21 garten program, a teacher organization, an edu22 cational service agency, a consortium of local 

23 educational agencies, or a nonprofit tele24 communications entity. 
31 

•S 9 IS 

1 ‘‘(2) PARTNER INSTITUTION.—In this section, 

2 the term ‘partner institution’ means an institution of 

3 higher education, including a community college, the 

4 teacher preparation program of which demonstrates 

5 that— 

6 ‘‘(A)(i) its students exhibit strong perform7 ance on State-determined qualifying assess8 ments for new teachers by passing not less than 

9 80 percent of all such assessments; or 

10 ‘‘(ii) it is ranked among the highest-per11 forming teacher preparation programs in the 

12 State, as determined by the State— 

13 ‘‘(I) using criteria consistent with the 

14 requirements for the State report card 

15 under section 206(b); and 

16 ‘‘(II) using the State report card on 

17 teacher preparation required under section 

18 206(b); and 

19 ‘‘(B) it requires all the students of the pro20 gram to participate in intensive clinical experi21 ence, to meet high academic standards, and— 

22 ‘‘(i) in the case of secondary school 

23 candidates, to successfully complete— 

24 ‘‘(I) a major or its equivalent in 

25 coursework in the academic subject 
32 

•S 9 IS 

1 area in which the candidate intends to 

2 teach; or 

3 ‘‘(II) a related major in the aca4 demic subject area in which the can5 didate intends to teach; and 

6 ‘‘(ii) in the case of elementary school 

7 candidates, to successfully complete— 

8 ‘‘(I) an academic major or its 

9 equivalent in coursework in the arts 

10 and sciences; or 

11 ‘‘(II) a major in elementary edu12 cation with a significant amount of 

13 coursework in the arts and sciences. 

14 ‘‘(c) APPLICATION.—Each eligible partnership desir15 ing a grant under this section shall submit an application 

16 to the Secretary at such time, in such manner, and accom17 panied by such information as the Secretary may require. 

18 Each such application shall— 

19 ‘‘(1) contain a needs assessment of all the part20 ners with respect to teaching and learning and a de21 scription of how the eligible partnership will coordi22 nate with other teacher preparation or professional 

23 development programs, and how the activities of the 

24 eligible partnership will be consistent with State, 
33 

•S 9 IS 

1 local, and other education reform activities that pro2 mote student achievement; 

3 ‘‘(2) contain a resource assessment that de4 scribes the resources available to the eligible part5 nership, the intended use of the grant funds, includ6 ing a description of how the grant funds will be fair7 ly distributed, and the commitment of the resources 

8 of the eligible partnership to the activities assisted 

9 under this part, including financial support, faculty 

10 participation, time commitments, and continuation 

11 of the activities when the grant ends; 

12 ‘‘(3) contain a description of— 

13 ‘‘(A) how the eligible partnership will meet 

14 the purposes of this part; 

15 ‘‘(B) how the eligible partnership will carry 

16 out the activities required under subsection (e) 

17 and any permissible activities under subsection 

18 (f); 

19 ‘‘(C) the eligible partnership’s evaluation 

20 plan pursuant to section 205(b); 

21 ‘‘(D) how faculty of the teacher prepara22 tion program at the partner institution will 

23 serve, over the term of the grant, with highly 

24 qualified teachers in the classrooms of the high- 
34 

•S 9 IS 

1 need local educational agency included in the el2 igible partnership; 

3 ‘‘(E) how the eligible partnership will en4 sure that teachers, principals, and superintend5 ents in private elementary schools and private 

6 secondary schools located in the geographic 

7 areas served by an eligible partnership under 

8 this section will participate equitably, as re9 quired under subsection (i); 

10 ‘‘(F) how the eligible partnership will en11 sure that the partner institution’s clinical pro12 gram component includes close supervision of 

13 student teachers by faculty of the teacher prep14 aration program and mentor teachers; 

15 ‘‘(G) how the eligible partnership will de16 sign and implement an induction program to 

17 support all new teachers during their initial 

18 years of teaching that includes mentors who are 

19 trained and compensated by the eligible part20 nership for their work with new teachers; and 

21 ‘‘(H) how the eligible partnership will col22 lect, analyze, and use data on the retention of 

23 all teachers in schools located in the geographic 

24 areas served by the eligible partnership to 
35 

•S 9 IS 

1 evaluate the effectiveness of its teacher support 

2 system; and 

3 ‘‘(4) contain an assurance that the eligible part4 nership will carry out each of the intended uses of 

5 grant funds described in paragraph (2). 

6 ‘‘(d) CONSULTATION.— 

7 ‘‘(1) IN GENERAL.—Members of an eligible 

8 partnership that receives a grant under this section 

9 shall engage in regular consultation throughout the 

10 development and implementation of programs and 

11 activities under this section. 

12 ‘‘(2) REGULAR COMMUNICATION.—To ensure 

13 timely and meaningful consultation, regular commu14 nication shall occur among all members of the eligi15 ble partnership, including the local educational agen16 cy. Such communication shall continue throughout 

17 implementation of the grant and assessment of pro18 grams and activities under this section. 

19 ‘‘(3) WRITTEN AFFIRMATION.—A written affir20 mation signed by all members shall be submitted to 

21 the Secretary before the Secretary may approve 

22 changes in grant activities. 

23 ‘‘(e) REQUIRED USES OF FUNDS.—An eligible part24 nership that receives a grant under this section shall use 

25 the grant funds to carry out the following activities: 
36 

•S 9 IS 

1 ‘‘(1) REFORMS.—Implementing reforms within 

2 teacher preparation programs to ensure that such 

3 programs are preparing teachers to become highly 

4 qualified, to understand scientifically based research 

5 and its applicability, and to use technology effec6 tively, including use for instructional techniques to 

7 improve student academic achievement, by— 

8 ‘‘(A) retraining faculty; 

9 ‘‘(B) designing (or redesigning) teacher 

10 preparation programs so that such programs— 

11 ‘‘(i) are based on rigorous academic 

12 content and scientifically based research 

13 (including scientifically based reading re14 search), and aligned with challenging State 

15 student academic content standards; and 

16 ‘‘(ii) promote strong teaching skills; 

17 and 

18 ‘‘(C) ensuring collaboration with depart19 ments, programs, or units outside of the teach20 er preparation program in all content areas to 

21 ensure a successful combination of training in 

22 both teaching and such content. 

23 ‘‘(2) CLINICAL EXPERIENCE AND INTER24 ACTION.—Improving sustained and high-quality 

25 preservice clinical experience, including the men-
37 

•S 9 IS 

1 toring of prospective teachers by veteran teachers, 

2 and substantially increasing interaction between fac3 ulty at institutions of higher education and new and 

4 experienced teachers, principals, and other adminis5 trators at elementary schools or secondary schools, 

6 and providing support, including preparation time 

7 and release time, for such interaction. 

8 ‘‘(3) PROFESSIONAL DEVELOPMENT.—Creating, 

9 or assisting local educational agencies in creating, 

10 opportunities for enhanced and ongoing professional 

11 development that improves the academic content 

12 knowledge of teachers in the academic subject areas 

13 in which the teachers are certified to teach or in 

14 which the teachers are working toward certification 

15 to teach, and that promotes strong teaching skills. 

16 ‘‘(f) ALLOWABLE USES OF FUNDS.—An eligible part17 nership that receives a grant under this section may use 

18 such funds to carry out the following activities: 

19 ‘‘(1) ALTERNATIVES TO TRADITIONAL TEACHER

20 PREPARATION AND STATE CERTIFICATION.—The ac21 tivity described in section 202(d)(3). 

22 ‘‘(2) DISSEMINATION AND COORDINATION.— 

23 Broadly disseminating information on effective prac24 tices used by the eligible partnership, and coordi25 nating with the activities of the Governor, State 
38 

•S 9 IS 

1 board of education, State higher education agency, 

2 and State educational agency, as appropriate. 

3 ‘‘(3) MANAGERIAL AND LEADERSHIP SKILLS.— 

4 Developing and implementing proven mechanisms to 

5 provide principals and superintendents with effective 

6 managerial and leadership skills that result in in7 creased student achievement. 

8 ‘‘(4) TEACHER SCHOLARSHIPS AND SUPPORT.— 

9 Providing— 

10 ‘‘(A) scholarships to help students, such as 

11 individuals who have been accepted by, or who 

12 are enrolled in, a program of undergraduate 

13 education at an institution of higher education, 

14 pay the costs of tuition, room, board, and other 

15 expenses of completing a teacher preparation 

16 program, whereby— 

17 ‘‘(i) the Secretary shall establish such 

18 requirements as the Secretary determines 

19 necessary to ensure that recipients of 

20 scholarships under this section who com21 plete teacher preparation programs— 

22 ‘‘(I) subsequently teach in a 

23 high-need local educational agency for 

24 a period of time equivalent to 1 year, 

25 increased by the period for which the 
39 

•S 9 IS 

1 recipient received scholarship assist2 ance; or 

3 ‘‘(II) repay the amount of the 

4 scholarship; 

5 ‘‘(ii) the Secretary shall use any such 

6 repayments to carry out additional activi7 ties under this paragraph; and 

8 ‘‘(iii) the eligible partnership shall 

9 provide an assurance that it will recruit 

10 minority students to become highly quali11 fied teachers; 

12 ‘‘(B) support services, if needed, to enable 

13 scholarship recipients to complete postsecondary 

14 education programs, or to transition from a ca15 reer outside of the field of education into a 

16 teaching career; and 

17 ‘‘(C) follow-up services to former scholar18 ship recipients during their initial years of 

19 teaching. 

20 ‘‘(5) COMMUNITY COLLEGES.— 

21 ‘‘(A) TEACHER PREPARATION PRO22 GRAMS.—Implementing, or coordinating with 

23 community colleges to implement, teacher prep24 aration programs, including through distance 
40 

•S 9 IS 

1 learning, for the purposes of allowing prospec2 tive teachers— 

3 ‘‘(i) to attain a bachelor’s degree and 

4 State certification or licensure; and 

5 ‘‘(ii) to become highly qualified teach6 ers. 

7 ‘‘(B) PROFESSIONAL DEVELOPMENT.— 

8 Providing, or coordinating with community col9 leges to provide, professional development that 

10 improves the academic content knowledge of 

11 teachers in the academic subject areas in which 

12 the teachers are certified to teach or in which 

13 the teachers are working toward certification to 

14 teach, and that promotes strong teaching skills. 

15 ‘‘(6) TEACHER MENTORING.—Establishing or 

16 implementing a teacher mentoring program that— 

17 ‘‘(A) includes minimum qualifications for 

18 mentors; 

19 ‘‘(B) provides training and stipends for 

20 mentors; 

21 ‘‘(C) provides mentoring programs for 

22 teachers during their initial years of teaching; 

23 ‘‘(D) provides regular and ongoing oppor24 tunities for mentors and mentees to observe 
41 

•S 9 IS 

1 each other’s teaching methods in classroom set2 tings during the school day; 

3 ‘‘(E) establishes an evaluation and ac4 countability plan for activities conducted under 

5 this paragraph that includes rigorous objectives 

6 to measure the impact of such activities; and 

7 ‘‘(F) provides for a report to the Secretary 

8 on an annual basis regarding the eligible part9 nership’s progress in meeting the objectives de10 scribed in subparagraph (E). 

11 ‘‘(7) PROFESSIONAL DEVELOPMENT.—The ac12 tivity described in section 202(d)(10). 

13 ‘‘(8) TECHNOLOGY.—The activity described in 

14 section 202(d)(11). 

15 ‘‘(9) FOREIGN LANGUAGE INSTRUCTION.—The 

16 activity described in section 202(d)(12). 

17 ‘‘(10) GRADUATE PROGRAMS.—Developing, in 

18 collaboration with departments, programs, or units 

19 of both academic content and teacher education, 

20 master’s degree programs that meet the dem21 onstrated needs of teachers in the local educational 

22 agency within the eligible partnership for content ex23 pertise and teaching skills. 

24 ‘‘(g) CONSTRUCTION.—Nothing in this section shall 

25 be construed to prohibit an eligible partnership from using 
42 

•S 9 IS 

1 grant funds to coordinate with the activities of more than 

2 1 Governor, State board of education, State educational 

3 agency, local educational agency, or State agency for high4 er education. 

5 ‘‘(h) SUPPLEMENT, NOT SUPPLANT.—Funds made 

6 available under this section shall be used to supplement, 

7 and not supplant, other Federal, State, and local funds 

8 that would otherwise be expended to carry out activities 

9 under this section. 

10 ‘‘(i) APPLICABILITY OF PRIVATE SCHOOL PARTICIPA11 TION PROVISIONS.—Section 9501 of the Elementary and 

12 Secondary Education Act of 1965 shall apply to programs 

13 carried out under this section. 

14 ‘‘SEC. 204. ADMINISTRATIVE PROVISIONS. 

15 ‘‘(a) DURATION; ONE-TIME AWARDS; PAYMENTS.— 

16 ‘‘(1) DURATION.— 

17 ‘‘(A) ELIGIBLE STATES.—Grants awarded 

18 to eligible States under this part shall be 

19 awarded for a period not to exceed 3 years. 

20 ‘‘(B) ELIGIBLE PARTNERSHIPS.—Grants 

21 awarded to eligible partnerships under this part 

22 shall be awarded for a period of 5 years. 

23 ‘‘(2) ONE-TIME AWARD.—An eligible partner24 ship may receive a grant under section 203 only 

25 once. 
43 

•S 9 IS 

1 ‘‘(3) PAYMENTS.—The Secretary shall make 

2 annual payments of grant funds awarded under this 

3 part. 

4 ‘‘(b) PEER REVIEW.— 

5 ‘‘(1) PANEL.—The Secretary shall provide the 

6 applications submitted under this part to a peer re7 view panel for evaluation. With respect to each ap8 plication, the peer review panel shall initially rec9 ommend the application for funding or for dis10 approval. 

11 ‘‘(2) PRIORITY.—In recommending applications 

12 to the Secretary for funding under this part, the 

13 panel shall— 

14 ‘‘(A) with respect to grants under section 

15 202— 

16 ‘‘(i) give priority to eligible States 

17 that have initiatives to reform State teach18 er certification requirements so that the re19 quirements are based on rigorous academic 

20 content and scientifically based research 

21 (including scientifically based reading re22 search), and aligned with challenging State 

23 academic content standards; 

24 ‘‘(ii) give priority to eligible States 

25 that have innovative reforms to hold insti-
44 

•S 9 IS 

1 tutions of higher education with teacher 

2 preparation programs accountable for pre3 paring teachers to become highly qualified 

4 and have strong teaching skills; 

5 ‘‘(iii) give priority to eligible States 

6 that have innovative efforts aimed at re7 ducing the shortage of highly qualified 

8 teachers in low-income urban and rural 

9 areas, or in high-need academic subject 

10 areas; and 

11 ‘‘(iv) take into consideration an equi12 table geographic distribution of the grants 

13 throughout the United States; and 

14 ‘‘(B) with respect to grants under section 

15 203— 

16 ‘‘(i) give priority to applications from 

17 broad-based eligible partnerships that in18 volve businesses and community organiza19 tions; and 

20 ‘‘(ii) take into consideration an equi21 table geographic distribution of the grants 

22 throughout the United States. 

23 ‘‘(3) SECRETARIAL SELECTION.—The Secretary 

24 shall determine, based on the peer review process, 

25 which applications shall receive funding and the 
45 

•S 9 IS 

1 amounts of the grants. In determining grant 

2 amounts, the Secretary shall take into account the 

3 total amount of funds available for all grants under 

4 this part and the types of activities proposed to be 

5 carried out. 

6 ‘‘(c) MATCHING REQUIREMENTS.— 

7 ‘‘(1) STATE GRANTS.—Each eligible State re8 ceiving a grant under section 202 shall provide, from 

9 non-Federal sources, an amount equal to 50 percent 

10 of the amount of the grant (in cash or in kind) to 

11 carry out the activities supported by the grant. 

12 ‘‘(2) PARTNERSHIP GRANTS.—Each eligible 

13 partnership receiving a grant under section 203 

14 shall provide, from non-Federal sources (in cash or 

15 in kind), an amount equal to 25 percent of the grant 

16 for the first year of the grant, 35 percent of the 

17 grant for the second year of the grant, and 50 per18 cent of the grant for each succeeding year of the 

19 grant. 

20 ‘‘(d) LIMITATION ON ADMINISTRATIVE EXPENSES.— 

21 An eligible State or eligible partnership that receives a 

22 grant under this part may use not more than 2 percent 

23 of the grant funds for purposes of administering the grant. 
46 

•S 9 IS 

1 ‘‘SEC. 205. ACCOUNTABILITY AND EVALUATION. 

2 ‘‘(a) STATE GRANT ACCOUNTABILITY REPORT.—An 

3 eligible State that receives a grant under section 202 shall 

4 submit an annual accountability report to the Secretary 

5 and the authorizing committees. Such report shall include 

6 a description of the degree to which the eligible State, in 

7 using funds provided under such section, has made 

8 progress in meeting the purposes of this part and substan9 tial progress in meeting the following goals, as applicable: 

10 ‘‘(1) PERCENTAGE OF HIGHLY QUALIFIED

11 TEACHERS.—Increasing the percentage of highly 

12 qualified teachers in the State as required under sec13 tion 1119 of the Elementary and Secondary Edu14 cation Act of 1965. 

15 ‘‘(2) STUDENT ACADEMIC ACHIEVEMENT.—In16 creasing student academic achievement for all stu17 dents as defined by the eligible State. 

18 ‘‘(3) RAISING STANDARDS.—Raising the State 

19 academic standards required to enter the teaching 

20 profession as a highly qualified teacher. 

21 ‘‘(4) INITIAL CERTIFICATION OR LICENSURE.— 

22 Increasing success in the pass rates and scaled 

23 scores for initial State teacher certification or licen24 sure, or increasing the numbers of qualified individ25 uals being certified or licensed as teachers through 

26 alternative certification programs. 
47 

•S 9 IS 

1 ‘‘(5) DECREASING TEACHER SHORTAGES.—De2 creasing shortages of highly qualified teachers in 

3 low-income urban and rural areas and in high-need 

4 academic subject areas. 

5 ‘‘(6) INCREASING OPPORTUNITIES FOR PROFES6 SIONAL DEVELOPMENT.—Increasing opportunities 

7 for enhanced and ongoing professional development 

8 that improves the academic content knowledge of 

9 teachers in the academic subject areas in which the 

10 teachers are certified or licensed to teach or in which 

11 the teachers are working toward certification or li12 censure to teach, and that promotes strong teaching 

13 skills. 

14 ‘‘(7) TECHNOLOGY INTEGRATION.—Increasing 

15 the number of teachers prepared to effectively inte16 grate technology into curricula and instruction and 

17 who use technology to collect, manage, and analyze 

18 data to improve teaching, learning, and decision19 making for the purpose of increasing student aca20 demic achievement. 

21 ‘‘(b) ELIGIBLE PARTNERSHIP EVALUATION.— 

22 ‘‘(1) IN GENERAL.—Each eligible partnership 

23 receiving a grant under section 203 shall establish 

24 and include in the application submitted under sec25 tion 203(c), an evaluation plan that includes strong 
48 

•S 9 IS 

1 performance objectives. The plan shall include objec2 tives and measures for— 

3 ‘‘(A) increased student academic achieve4 ment for all students as measured by the eligi5 ble partnership; 

6 ‘‘(B) increased teacher retention in the ini7 tial years of a teacher’s career; 

8 ‘‘(C) increased success in the pass rates 

9 and scaled scores for initial State certification 

10 or licensure of teachers; 

11 ‘‘(D) increased percentage of highly quali12 fied teachers; 

13 ‘‘(E) increasing opportunities for enhanced 

14 and ongoing professional development that im15 proves the academic content knowledge of 

16 teachers in the academic subject areas in which 

17 the teachers are certified or licensed to teach or 

18 in which the teachers are working toward cer19 tification or licensure to teach, and that pro20 motes strong teaching skills; and 

21 ‘‘(F) increasing the number of teachers 

22 prepared to effectively integrate technology into 

23 curricula and instruction and who use tech24 nology to collect, manage, and analyze data to 

25 improve teaching, learning, and decisionmaking 
49 

•S 9 IS 

1 for the purpose of increasing student academic 

2 achievement. 

3 ‘‘(2) REPORT.—Each eligible partnership re4 ceiving a grant under section 203 shall report annu5 ally on the progress of the eligible partnership to6 ward meeting the purposes of this part and the ob7 jectives and measures described in paragraph (1). 

8 ‘‘(c) REVOCATION OF GRANT.— 

9 ‘‘(1) ELIGIBLE STATES.—If the Secretary de10 termines that an eligible State is not making sub11 stantial progress in meeting the purposes, goals, ob12 jectives, and measures, as appropriate, by the end of 

13 the second year of a grant under this part, the grant 

14 payment shall not be made for the third year of the 

15 grant. 

16 ‘‘(2) ELIGIBLE PARTNERSHIPS.—If the Sec17 retary determines that an eligible partnership is not 

18 making substantial progress in meeting the pur19 poses, goals, objectives, and measures, as appro20 priate, by the end of the third year of a grant under 

21 this part, then the grant payments shall not be made 

22 for any succeeding year of the grant. 

23 ‘‘(d) EVALUATION AND DISSEMINATION.—The Sec24 retary shall evaluate the activities funded under this part 

25 and report the Secretary’s findings regarding the activities 
50 

•S 9 IS 

1 to the authorizing committees. The Secretary shall broadly 

2 disseminate successful practices developed by eligible 

3 States and eligible partnerships under this part, and shall 

4 broadly disseminate information regarding such practices 

5 that were found to be ineffective. 

6 ‘‘SEC. 206. ACCOUNTABILITY FOR PROGRAMS THAT PRE7 PARE TEACHERS. 

8 ‘‘(a) INSTITUTIONAL AND PROGRAM REPORT CARDS

9 ON THE QUALITY OF TEACHER PREPARATION.— 

10 ‘‘(1) REPORT CARD.—Each institution of higher 

11 education that conducts a traditional teacher prepa12 ration program or an alternative certification pro13 gram and that enrolls students receiving Federal as14 sistance under this Act shall report annually to the 

15 State and the general public, in a uniform and com16 prehensible manner that conforms with the defini17 tions and methods established by the Secretary, both 

18 for traditional certification programs and for alter19 native certification programs, the following informa20 tion: 

21 ‘‘(A) PASS RATES AND SCALED SCORES.— 

22 For the most recent year for which the informa23 tion is available, for each of the assessments 

24 used for teacher certification or licensure by the 

25 State in which the program is located, for those 
51 

•S 9 IS 

1 students who are enrolled in the traditional 

2 teacher preparation program or alternative cer3 tification program, or who have completed the 

4 traditional teacher preparation program or al5 ternative certification program during the 2- 

6 year period preceding such year— 

7 ‘‘(i) the percentage of all such stu8 dents who passed each such assessment; 

9 ‘‘(ii) a comparison of the program’s 

10 pass rates with the average pass rates for 

11 programs in the State; 

12 ‘‘(iii) the average scaled score for all 

13 such students who passed each such as14 sessment; and 

15 ‘‘(iv) a comparison of the program’s 

16 average scaled scores with the average 

17 scaled scores for programs in the State. 

18 ‘‘(B) PROGRAM INFORMATION.—The cri19 teria for admission into the program, the num20 ber of students in the program (disaggregated 

21 by race and gender), the average number of 

22 hours of supervised practice teaching required 

23 for those in the program, the number of full24 time equivalent faculty and students in super25 vised practice teaching, and the total number of 
52 

•S 9 IS 

1 students receiving teacher certification, 

2 disaggregated by subject and level. 

3 ‘‘(C) STATEMENT.—In States that require 

4 approval or accreditation of teacher preparation 

5 programs, a statement of whether the institu6 tion’s program is so approved or accredited, 

7 and by whom. 

8 ‘‘(D) DESIGNATION AS LOW-PER9 FORMING.—Whether the program has been des10 ignated as low-performing by the State under 

11 section 207(a). 

12 ‘‘(2) REQUIREMENT.—The information de13 scribed in paragraph (1) shall be reported through 

14 publications such as school catalogs and promotional 

15 materials sent, including by electronic means, to po16 tential applicants, secondary school guidance coun17 selors, and prospective employers of the institution’s 

18 program graduates. 

19 ‘‘(3) FINES.—In addition to the actions author20 ized in section 487(c), the Secretary may impose a 

21 fine not to exceed $25,000 on an institution of high22 er education for failure to provide the information 

23 described in this subsection in a timely or accurate 

24 manner. 
53 

•S 9 IS 

1 ‘‘(4) SPECIAL RULE.—In the case of an institu2 tion of higher education that conducts a traditional 

3 teacher preparation program or an alternative cer4 tification program, with fewer than 10 scores re5 ported on any single initial teacher certification or li6 censure assessment during an academic year, the in7 stitution shall collect and publish information with 

8 respect to an average pass rate and scaled score on 

9 each State certification or licensure assessment 

10 taken over a 3-year period. 

11 ‘‘(b) STATE REPORT CARD ON THE QUALITY OF

12 TEACHER PREPARATION.—Each State that receives funds 

13 under this Act shall provide to the Secretary, annually, 

14 in a uniform and comprehensible manner that conforms 

15 with the definitions and methods established by the Sec16 retary, a State report card on the quality of teacher prepa17 ration in the State, both for traditional certification pro18 grams and for alternative certification programs, which 

19 shall include not less than the following: 

20 ‘‘(1) A description of the teacher certification or 

21 licensure assessments, and any other certification or 

22 licensure requirements, used by the State. 

23 ‘‘(2) The standards and criteria that prospec24 tive teachers must meet in order to attain initial 

25 teacher certification or licensure and to be certified 
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1 or licensed to teach in particular academic subject 

2 areas or in particular grades within the State. 

3 ‘‘(3) A description of how the assessments and 

4 requirements described in paragraph (1) are aligned 

5 with the State’s standards and assessments for stu6 dents. 

7 ‘‘(4) For each of the assessments used by the 

8 State for teacher certification or licensure— 

9 ‘‘(A) the percentage of students at each in10 stitution of higher education who are enrolled in 

11 a traditional teacher preparation program or al12 ternative certification program, or who have 

13 completed the traditional teacher preparation 

14 program or alternative certification program 

15 during the 2-year period preceding the date of 

16 the determination, who passed each such as17 sessment; and 

18 ‘‘(B) the average scaled score for students 

19 at each institution of higher education who are 

20 enrolled in a traditional teacher preparation 

21 program or alternative certification program, or 

22 who have completed the traditional teacher 

23 preparation program or alternative certification 

24 program during the 2-year period preceding the 

25 date of the determination, who passed each 
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1 such assessment, ranked by teacher preparation 

2 program, which shall be made available widely 

3 and publicly. 

4 ‘‘(5) A description of State-run and other alter5 native certification programs outside of institutions 

6 of higher education, if any, including, for each of the 

7 assessments used by the State for teacher certifi8 cation or licensure— 

9 ‘‘(A) the percentage of individuals partici10 pating in such programs, or who have com11 pleted such programs during the 2-year period 

12 preceding the date of the determination, who 

13 passed each such assessment; and 

14 ‘‘(B) the average scaled score of individ15 uals participating in such programs, or who 

16 have completed such programs during the 2- 

17 year period preceding the date of the deter18 mination, who passed each such assessment. 

19 ‘‘(6) A description of the State’s proposed cri20 teria for assessing the performance of teacher prepa21 ration programs within institutions of higher edu22 cation in the State. Such criteria shall include indi23 cators of the academic content knowledge and teach24 ing skills of students enrolled in such programs. 
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1 ‘‘(7) For each teacher preparation program in 

2 the State, the criteria for admission into the pro3 gram, the number of students in the program 

4 (disaggregated by race and gender), the average 

5 number of hours of supervised practice teaching re6 quired for those in the program, and the number of 

7 full-time equivalent faculty and students in super8 vised practice teaching. 

9 ‘‘(c) REPORT OF THE SECRETARY ON THE QUALITY

10 OF TEACHER PREPARATION.— 

11 ‘‘(1) REPORT CARD.—The Secretary shall pro12 vide to Congress, and publish and make widely avail13 able, a report card on teacher qualifications and 

14 preparation in the United States, including all the 

15 information reported in paragraphs (1) through (7) 

16 of subsection (b). Such report shall identify States 

17 for which eligible States and eligible partnerships re18 ceived a grant under this part. Such report shall be 

19 so provided, published, and made available annually. 

20 ‘‘(2) REPORT TO CONGRESS.—The Secretary 

21 shall report to Congress— 

22 ‘‘(A) a comparison of States’ efforts to im23 prove the quality of the current and future 

24 teaching force; 
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1 ‘‘(B) a comparison of eligible partnerships’ 

2 efforts to improve the quality of the current 

3 and future teaching force pursuant to section 

4 203; and 

5 ‘‘(C) regarding the national mean and me6 dian scaled scores and pass rate on any stand7 ardized test that is used in more than 1 State 

8 for teacher certification or licensure. 

9 ‘‘(3) SPECIAL RULE.—In the case of teacher 

10 preparation programs with fewer than 10 scores re11 ported on any single initial teacher certification or li12 censure assessment during an academic year, the 

13 Secretary shall collect and publish information with 

14 respect to an average pass rate and scaled score on 

15 each State certification or licensure assessment 

16 taken over a 3-year period. 

17 ‘‘(d) COORDINATION.—The Secretary, to the extent 

18 practicable, shall coordinate the information collected and 

19 published under this part among States for individuals 

20 who took State teacher certification or licensure assess21 ments in a State other than the State in which the indi22 vidual received the individual’s most recent degree. 

23 ‘‘(e) DATA QUALITY.—Either of the following entities 

24 shall attest annually, in writing, as to the reliability, valid-
58 

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1 ity, integrity, and accuracy of the data submitted pursuant 

2 to this section: 

3 ‘‘(1) The Governor of the State. 

4 ‘‘(2) In the case of a State for which the con5 stitution or law of such State designates another in6 dividual, entity, or agency in the State to be respon7 sible for teacher certification and preparation activ8 ity, such individual, entity, or agency. 

9 ‘‘SEC. 207. STATE FUNCTIONS. 

10 ‘‘(a) STATE ASSESSMENT.—In order to receive funds 

11 under this Act, a State shall have in place a procedure 

12 to identify and assist, through the provision of technical 

13 assistance, low-performing programs of teacher prepara14 tion within institutions of higher education. Such State 

15 shall provide the Secretary an annual list of such low-per16 forming institutions that includes an identification of 

17 those institutions at risk of being placed on such list. Such 

18 levels of performance shall be determined solely by the 

19 State and may include criteria based on information col20 lected pursuant to this part. Such assessment shall be de21 scribed in the report under section 206(b). 

22 ‘‘(b) TERMINATION OF ELIGIBILITY.—Any institu23 tion of higher education that offers a program of teacher 

24 preparation from which the State has withdrawn the 

25 State’s approval or terminated the State’s financial sup-
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1 port due to the low performance of the institution’s teach2 er preparation program based upon the State assessment 

3 described in subsection (a)— 

4 ‘‘(1) shall be ineligible for any funding for pro5 fessional development activities awarded by the De6 partment; and 

7 ‘‘(2) shall not be permitted to accept or enroll 

8 any student that receives aid under title IV in the 

9 institution’s teacher preparation program. 

10 ‘‘SEC. 208. GENERAL PROVISIONS. 

11 ‘‘(a) METHODS.—In complying with sections 206 and 

12 207, the Secretary shall ensure that States and institu13 tions of higher education use fair and equitable methods 

14 in reporting and that the reporting methods do not allow 

15 identification of individuals. 

16 ‘‘(b) SPECIAL RULE.—For each State that does not 

17 use content assessments as a means of ensuring that all 

18 teachers teaching in core academic subjects within the 

19 State are highly qualified not later than the end of the 

20 2005–2006 school year, as required under section 1119 

21 of the Elementary and Secondary Education Act of 

22 1965— 

23 ‘‘(1) the Secretary shall, to the extent prac24 ticable, collect data comparable to the data required 

25 under this part from States, local educational agen-
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1 cies, institutions of higher education, or other enti2 ties that administer such assessments to teachers or 

3 prospective teachers; and 

4 ‘‘(2) notwithstanding any other provision of this 

5 part, the Secretary shall use such data to carry out 

6 requirements of this part related to assessments, 

7 pass rates, and scaled scores. 

8 ‘‘(c) LIMITATIONS.— 

9 ‘‘(1) FEDERAL CONTROL PROHIBITED.—Noth10 ing in this part shall be construed to permit, allow, 

11 encourage, or authorize any Federal control over any 

12 aspect of any private, religious, or home school, 

13 whether or not a home school is treated as a private 

14 school or home school under State law. This section 

15 shall not be construed to prohibit private, religious, 

16 or home schools from participation in programs or 

17 services under this part. 

18 ‘‘(2) NO CHANGE IN STATE CONTROL ENCOUR19 AGED OR REQUIRED.—Nothing in this part shall be 

20 construed to encourage or require any change in a 

21 State’s treatment of any private, religious, or home 

22 school, whether or not a home school is treated as 

23 a private school or home school under State law. 

24 ‘‘(3) NATIONAL SYSTEM OF TEACHER CERTIFI25 CATION PROHIBITED.—Nothing in this part shall be 
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1 construed to permit, allow, encourage, or authorize 

2 the Secretary to establish or support any national 

3 system of teacher certification. 

4 ‘‘SEC. 209. AUTHORIZATION OF APPROPRIATIONS. 

5 ‘‘(a) IN GENERAL.—There are authorized to be ap6 propriated to carry out this part such sums as may be 

7 necessary for fiscal year 2006 and each of the 4 suc8 ceeding fiscal years, of which— 

9 ‘‘(1) 50 percent shall be available for each fiscal 

10 year to award grants under section 202; and 

11 ‘‘(2) 50 percent shall be available for each fiscal 

12 year to award grants under section 203. 

13 ‘‘(b) SPECIAL RULE.—If the Secretary determines 

14 that there is an insufficient number of meritorious appli15 cations for grants under section 202 or 203 to justify 

16 awarding the full amount described in paragraph (1) or 

17 (2) of subsection (a), respectively, the Secretary may, after 

18 funding the meritorious applications, use the remaining 

19 funds for grants under the other such section.’’. 

20 Subtitle C—Merit Pay 

21 SEC. 331. SENSE OF THE SENATE REGARDING TEACHER IN22 CENTIVES. 

23 It is the sense of the Senate that— 

24 (1) teachers should be rewarded for raising stu25 dent achievement and making real progress in clos-
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1 ing the achievement gap that exists between stu2 dents of different backgrounds; and 

3 (2) incentives should be created for individuals 

4 who choose to teach in low-income schools. 

5 Subtitle D—Classroom Expense 

6 Deduction 

7 SEC. 341. SENSE OF THE SENATE REGARDING TEACHER 

8 TAX CREDITS. 

9 (a) SENSE OF THE SENATE.—It is the sense of the 

10 Senate that many teachers are overburdened with the 

11 costs of managing a classroom, and that expansion of the 

12 deduction for classroom expenses for teachers from $250 

13 to $400 would help ease the burden on the teacher dedi14 cated to helping our Nation’s children learn. 

15 (b) AMENDMENT.—Section 62(a)(4)(D) of the Inter16 nal Revenue Code of 1986 (relating to certain expenses 

17 of elementary and secondary school teachers) is amend18 ed— 

19 (1) by striking ‘‘In the case of taxable years be20 ginning during 2002, 2003, 2004, or 2005, the’’ and 

21 inserting ‘‘The’’; and 

22 (2) by striking ‘‘$250’’ and inserting ‘‘$400’’. 

23 (c) EFFECTIVE DATE.—The amendments made by 

24 subsection (b) shall apply to taxable years beginning after 

25 December 31, 2004. 
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1 TITLE IV—HIGHER EDUCATION 

2 AND LIFELONG LEARNING 

3 OPPORTUNITIES 

4 Subtitle A—Higher Education 

5 SEC. 411. SENSE OF THE SENATE REGARDING HIGHER EDU6 CATION AND LIFELONG LEARNING OPPORTU7 NITIES. 

8 It is the sense of the Senate that, as the Senate con9 siders the reauthorization of the Higher Education Act of 

10 1965 (20 U.S.C. 1001 et seq.) and other related legisla11 tion, the Senate should explore efforts to improve and ex12 pand access to higher education and also make higher edu13 cation more accountable, including consideration of how 

14 to— 

15 (1) address the rising costs of higher education; 

16 (2) promote student academic preparation for 

17 postsecondary education; 

18 (3) encourage efforts to increase the availability 

19 of financial aid information for those who need the 

20 financial aid most; 

21 (4) simplify the student aid application process 

22 and improve the administration of the student aid 

23 programs; 
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1 (5) improve efforts to help parents and students 

2 find and utilize information about attending and 

3 paying for college; 

4 (6) improve the level of accountability in the 

5 Federal student aid programs; 

6 (7) take steps to ensure the long-term avail7 ability of Federal Pell Grant funds by— 

8 (A) addressing the current Federal Pell 

9 Grant program shortfall; 

10 (B) exploring initiatives to reduce the time 

11 to graduation; and 

12 (C) making efforts to ensure the fair dis13 tribution of Federal Pell Grant funds to eligible 

14 recipients; 

15 (8) promote quality educational opportunities 

16 for all students, including nontraditional students, 

17 that will equip graduates with the skills the grad18 uates need to continue lifelong learning and succeed 

19 in the 21st century workforce; 

20 (9) support stronger partnerships between busi21 nesses and institutions of higher education; 

22 (10) strengthen collaboration between higher 

23 education programs, and other Federal, State, and 

24 local education and training programs; and 
65 

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1 (11) promote the access to and affordability of 

2 higher education through the use of technology and 

3 distance learning. 

4 SEC. 412. SENSE OF THE SENATE REGARDING MINORITY 

5 SERVING INSTITUTIONS. 

6 It is the sense of the Senate that historically Black 

7 colleges and universities (HBCUs), historically Black 

8 graduate institutions (HBGIs), Hispanic-serving institu9 tions (HSIs), and tribally controlled colleges or univer10 sities (TCCUs) are a source of accomplishment and great 

11 pride for their respective communities as well as the entire 

12 Nation, and that such institutions offer all students, re13 gardless of race, an opportunity to develop their skills and 

14 talents by training young people who go on to serve do15 mestically and internationally in the professions as entre16 preneurs, and in the public and private sectors, and there17 fore every effort should be made to increase funding for 

18 such institutions. 

19 Subtitle B—Workforce Investment 

20 Act Amendments of 2005 

21 SEC. 421. SHORT TITLE. 

22 This subtitle may be cited as the ‘‘Workforce Invest23 ment Act Amendments of 2005’’. 
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1 SEC. 422. REFERENCES. 

2 Except as otherwise expressly provided, wherever in 

3 this subtitle an amendment or repeal is expressed in terms 

4 of an amendment to, or repeal of, a section or other provi5 sion, the reference shall be considered to be made to a 

6 section or other provision of the Workforce Investment Act 

7 of 1998 (29 U.S.C. 2801 et seq.). 

8 CHAPTER 1—AMENDMENTS TO TITLE I OF 

9 THE WORKFORCE INVESTMENT ACT 

10 OF 1998 

11 Subchapter A—Definitions 

12 SEC. 431. DEFINITIONS. 

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

14 (1) by redesignating paragraphs (1) through 

15 (4), (5) through (16), (17), (18) through (41), and 

16 (42) through (53) as paragraphs (2) through (5), 

17 (7) through (18), (20), (23) through (46), and (48) 

18 through (59), respectively; 

19 (2) by inserting before paragraph (2) (as redes20 ignated by paragraph (1)) the following: 

21 ‘‘(1) ACCRUED EXPENDITURES.—The term ‘ac22 crued expenditures’ means charges incurred by re23 cipients of funds under this title for a given period 

24 requiring the provision of funds for— 

25 ‘‘(A) goods or other tangible property re26 ceived; 
67 

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1 ‘‘(B) services performed by employees, con2 tractors, subgrantees, subcontractors, and other 

3 payees; and 

4 ‘‘(C) other amounts becoming owed under 

5 programs assisted under this title for which no 

6 current services or performance is required, 

7 such as annuities, insurance claims, and other 

8 benefit payments.’’; 

9 (3) in paragraph (2) (as redesignated by para10 graph (1)), by striking ‘‘Except in sections 127 and 

11 132,’’ and inserting ‘‘Except in section 132,’’; 

12 (4) by striking paragraph (5) (as redesignated 

13 by paragraph (1)) and inserting the following: 

14 ‘‘(5) BASIC SKILLS DEFICIENT.—The term 

15 ‘basic skills deficient’ means, with respect to an indi16 vidual, that the individual— 

17 ‘‘(A) has English reading, writing, or com18 puting skills at or below the 8th grade level on 

19 a generally accepted standardized test or a com20 parable score on a criterion-referenced test; or 

21 ‘‘(B) is unable to compute or solve prob22 lems, read, write, or speak English at a level 

23 necessary to function on the job, in the individ24 ual’s family, or in society.’’; 
68 

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1 (5) by inserting after paragraph (5) (as redesig2 nated by paragraph (1)) the following: 

3 ‘‘(6) BUSINESS INTERMEDIARY.—The term 

4 ‘business intermediary’ means an entity that brings 

5 together various stakeholders with an expertise in an 

6 industry or business sector.’’; 

7 (6) in paragraph (9) (as redesignated by para8 graph (1)), by inserting ‘‘, including a faith-based 

9 organization,’’ after ‘‘nonprofit organization’’; 

10 (7) in paragraph (10) (as redesignated by para11 graph (1))— 

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

13 ‘‘and’’ after the semicolon; 

14 (B) in subparagraph (C)— 

15 (i) by striking ‘‘for not less than 50 

16 percent of the cost of the training.’’ and 

17 inserting ‘‘for— 

18 ‘‘(i) a significant portion of the cost of 

19 training as determined by the local board, 

20 taking into account the size of the em21 ployer and such other factors as the local 

22 board determines to be appropriate; and 

23 ‘‘(ii) for customized training (as de24 fined in subparagraphs (A) and (B)) with 

25 an employer in multiple local areas in the 
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1 State, a significant portion of the cost of 

2 the training, as determined by the Gov3 ernor, taking into account the size of the 

4 employer and such other factors as the 

5 Governor determines to be appropriate.’’; 

6 (8) in paragraph (11) (as redesignated by para7 graph (1))— 

8 (A) in subparagraph (A)(ii)(II), by striking 

9 ‘‘section 134(c)’’ and inserting ‘‘section 

10 121(e)’’; 

11 (B) in subparagraph (C), by striking ‘‘or’’ 

12 after the semicolon; 

13 (C) in subparagraph (D), by striking the 

14 period and inserting ‘‘; or’’; and 

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

16 ‘‘(E)(i) is the spouse of a member of the 

17 Armed Forces on active duty for a period of 

18 more than 30 days (as defined in section 

19 101(d)(2) of title 10, United States Code) who 

20 has experienced a loss of employment as a di21 rect result of relocation to accommodate a per22 manent change in duty station of such member; 

23 or 
70 

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1 ‘‘(ii) is the spouse of a member of the 

2 Armed Forces on active duty who meets the cri3 teria described in paragraph (12)(B).’’; 

4 (9) in paragraph (12)(A) (as redesignated by 

5 paragraph (1))— 

6 (A) by striking ‘‘and’’ after the semicolon 

7 and inserting ‘‘or’’; 

8 (B) by striking ‘‘(A)’’ and inserting 

9 ‘‘(A)(i)’’; and 

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

11 ‘‘(ii) is the dependent spouse of a member 

12 of the Armed Forces on active duty for a period 

13 of more than 30 days (as defined in section 

14 101(d)(2) of title 10, United States Code) 

15 whose family income is significantly reduced be16 cause of a deployment (as defined in section 

17 991(b) of title 10, United States Code, or pur18 suant to paragraph (4) of such section), a call 

19 or order to active duty pursuant to a provision 

20 of law referred to in section 101(a)(13)(B) of 

21 title 10, United States Code, a permanent 

22 change of station, or the service-connected (as 

23 defined in section 101(16) of title 38, United 

24 States Code) death or disability of the member; 

25 and’’; 
71 

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1 (10) in paragraph (14)(A) (as redesignated by 

2 paragraph (1)), by striking ‘‘section 122(e)(3)’’ and 

3 inserting ‘‘section 122’’; 

4 (11) by inserting after paragraph (18) (as re5 designated by paragraph (1)) the following: 

6 ‘‘(19) HARD-TO-SERVE POPULATIONS.—The 

7 term ‘hard-to-serve populations’ means populations 

8 of individuals who are hard to serve, including dis9 placed homemakers, low-income individuals, Native 

10 Americans, individuals with disabilities, older indi11 viduals, ex-offenders, homeless individuals, individ12 uals with limited English proficiency, individuals 

13 who do not meet the definition of literacy in section 

14 203, individuals facing substantial cultural barriers, 

15 migrant and seasonal farmworkers, individuals with16 in 2 years of exhausting lifetime eligibility under 

17 part A of title IV of the Social Security Act (42 

18 U.S.C. 601 et seq.), and such other groups as the 

19 Governor determines to be hard to serve.’’; 

20 (12) by inserting after paragraph (20) (as re21 designated by paragraph (1)) the following: 

22 ‘‘(21) INTEGRATED TRAINING PROGRAM.—The 

23 term ‘integrated training program’ means a program 

24 that combines occupational skills training with 

25 English language acquisition. 
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1 ‘‘(22) INSTITUTION OF HIGHER EDUCATION.— 

2 The term ‘institution of higher education’ has the 

3 meaning given the term in section 101(a), and sub4 paragraphs (A) and (B) of section 102(a)(1), of the 

5 Higher Education Act of 1965 (20 U.S.C. 1001(a), 

6 1002(a)(1)).’’; 

7 (13) in paragraph (30) (as redesignated by 

8 paragraph (1))— 

9 (A) by redesignating subparagraphs (D) 

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

11 respectively; and 

12 (B) by inserting after subparagraph (C) 

13 the following: 

14 ‘‘(D) receives or is eligible to receive a free 

15 or reduced price lunch under the Richard B. 

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

17 1751 et seq.);’’; 

18 (14) in paragraph (35) (as redesignated by 

19 paragraph (1)), by inserting ‘‘, subject to section 

20 121(b)(1)(C)’’ after ‘‘121(b)(1)’’; 

21 (15) by striking paragraph (38) (as redesig22 nated by paragraph (1)) and inserting the following: 

23 ‘‘(38) OUT-OF-SCHOOL YOUTH.—The term ‘out24 of-school youth’ means an out-of-school youth as de25 fined in section 129(a)(1)(B).’’; 
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1 (16) by inserting after paragraph (46) (as re2 designated by paragraph (1)) the following: 

3 ‘‘(47) SELF-SUFFICIENCY.—The term ‘self-suf4 ficiency’ means self-sufficiency within the meaning 

5 of subsections (a)(3)(A)(x) and (e)(1)(A)(xii) of sec6 tion 134.’’; 

7 (17) in paragraph (49) (as redesignated by 

8 paragraph (1)), by striking ‘‘clause (iii) or (v) of 

9 section 136(b)(3)(A)’’ and inserting ‘‘section 

10 136(b)(3)(A)(iii)’’; 

11 (18) in paragraph (58) (as redesignated by 

12 paragraph (1)), by striking ‘‘(or as described in sec13 tion 129(c)(5))’’ and inserting ‘‘(or as described in 

14 section 129(a)(2))’’; and 

15 (19) in paragraph (59) (as redesignated by 

16 paragraph (1)), by striking ‘‘established under sec17 tion 117(h)’’ and inserting ‘‘that may be established 

18 under section 117(h)(2)’’. 

19 Subchapter B—Statewide and Local 

20 Workforce Investment Systems 

21 SEC. 432. PURPOSE. 

22 Section 106 (29 U.S.C. 2811) is amended to read as 

23 follows: 

24 ‘‘SEC. 106. PURPOSES. 

25 ‘‘The purposes of this subtitle are the following: 
74 

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1 ‘‘(1)(A) Primarily, to provide workforce invest2 ment activities, through statewide and local work3 force investment systems, that increase the employ4 ment, retention, self-sufficiency, and earnings of 

5 participants, and increase occupational skill attain6 ment by participants. 

7 ‘‘(B) As a result of the provision of the activi8 ties, to improve the quality of the workforce, reduce 

9 welfare dependency, increase self-sufficiency, and en10 hance the productivity and competitiveness of the 

11 Nation. 

12 ‘‘(2) To enhance the workforce investment sys13 tem of the Nation by strengthening one-stop centers, 

14 providing for more effective governance arrange15 ments, promoting access to a more comprehensive 

16 array of employment and training and related serv17 ices, establishing a targeted approach to serving 

18 youth, improving performance accountability, and 

19 promoting State and local flexibility. 

20 ‘‘(3) To provide workforce investment activities 

21 in a manner that promotes the informed choice of 

22 participants and actively involves participants in de23 cisions affecting their participation in such activities. 
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1 ‘‘(4) To provide workforce investment systems 

2 that are demand-driven and responsive to the needs 

3 of all employers, including small employers. 

4 ‘‘(5) To provide workforce investment systems 

5 that work in all areas of the Nation, including urban 

6 and rural areas. 

7 ‘‘(6) To allow flexibility to meet State, local, re8 gional, and individual workforce investment needs. 

9 ‘‘(7) To recognize and reinforce the vital link 

10 between economic development and workforce invest11 ment activities. 

12 ‘‘(8) To provide for accurate data collection, re13 porting, and performance measures that are not un14 duly burdensome. 

15 ‘‘(9) To address the ongoing shortage of essen16 tial skills in the United States workforce related to 

17 both manufacturing and knowledge-based economies 

18 to ensure that the United States remains competi19 tive in the global economy. 

20 ‘‘(10) To equip workers with higher skills and 

21 contribute to lifelong education. 

22 ‘‘(11) To eliminate training disincentives for 

23 hard-to-serve populations and minority workers, in24 cluding effectively utilizing community programs, 

25 services, and agencies. 
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1 ‘‘(12) To educate limited English proficient in2 dividuals about skills and language so the individ3 uals are employable. 

4 ‘‘(13) To increase the employment, retention 

5 and earnings of individuals with disabilities.’’. 

6 SEC. 432A. STATE WORKFORCE INVESTMENT BOARDS. 

7 (a) MEMBERSHIP.— 

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

9 2821(b)) is amended— 

10 (A) in paragraph (1), by striking subpara11 graph (C) and inserting the following: 

12 ‘‘(C) representatives appointed by the Gov13 ernor, who— 

14 ‘‘(i) are the lead State agency officials 

15 with responsibility for the programs and 

16 activities that are described in section 

17 121(b) and carried out by one-stop part18 ners, except that— 

19 ‘‘(I) in any case in which no lead 

20 State agency official has responsibility 

21 for such a program or activity, the 

22 representative shall be a representa23 tive in the State with expertise relat24 ing to such program or activity; and 
77 

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1 ‘‘(II) in the case of the programs 

2 authorized under title I of the Reha3 bilitation Act of 1973 (29 U.S.C. 720 

4 et seq.), the representative shall be 

5 the director of the designated State 

6 unit, as defined in section 7 of the Re7 habilitation Act of 1973 (29 U.S.C. 

8 705); 

9 ‘‘(ii) are the State agency officials re10 sponsible for economic development; 

11 ‘‘(iii) are representatives of business 

12 in the State, including small businesses, 

13 who— 

14 ‘‘(I) are owners of businesses, 

15 chief executive or operating officers of 

16 businesses, or other business execu17 tives or employers with optimum pol18 icymaking or hiring authority; 

19 ‘‘(II) represent businesses with 

20 employment opportunities that reflect 

21 employment opportunities in the 

22 State; and 

23 ‘‘(III) are appointed from among 

24 individuals nominated by State busi-
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1 ness organizations, business trade as2 sociations, and local boards; 

3 ‘‘(iv) are chief elected officials (rep4 resenting cities and counties, where appro5 priate); 

6 ‘‘(v) are representatives of labor orga7 nizations, who have been nominated by 

8 State labor federations; and 

9 ‘‘(vi) are such other State agency offi10 cials and other representatives as the Gov11 ernor may designate.’’; and 

12 (B) in paragraph (3), by striking ‘‘para13 graph (1)(C)(i)’’ and inserting ‘‘paragraph 

14 (1)(C)(iii)’’. 

15 (2) CONFORMING AMENDMENT.—Section 

16 111(c) (29 U.S.C. 2821(c)) is amended by striking 

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

18 (b)(1)(C)(iii)’’. 

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

20 2811(d)) is amended— 

21 (1) in paragraph (1), by striking ‘‘development’’ 

22 and inserting ‘‘development, implementation, and re23 vision’’; 

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

25 134(c)’’ and inserting ‘‘section 121(e)’’; 
79 

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1 (3) by striking paragraph (3) and inserting the 

2 following: 

3 ‘‘(3) reviewing and providing comment on the 

4 State plans of all one-stop partner programs, where 

5 applicable, in order to provide effective strategic 

6 leadership in the development of a high quality, com7 prehensive statewide workforce investment system, 

8 including commenting at least once annually on the 

9 measures taken pursuant to section 113(b)(3) of the 

10 Carl D. Perkins Vocational and Technical Education 

11 Act of 1998 (20 U.S.C. 2323(b)(3)) and title II of 

12 this Act;’’; 

13 (4) by redesignating paragraphs (4) through 

14 (9) as paragraphs (5) through (10), respectively; 

15 (5) by inserting after paragraph (3) the fol16 lowing: 

17 ‘‘(4) development and review of statewide poli18 cies affecting the coordinated provision of services 

19 through the one-stop delivery systems described in 

20 section 121(e) within the State, including— 

21 ‘‘(A) the development of objective criteria 

22 and procedures for use by local boards in as23 sessing the effectiveness and continuous im24 provement of one-stop centers under section 

25 121(g); 
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1 ‘‘(B) the development of guidance for the 

2 allocation of one-stop center infrastructure 

3 funds under section 121(h)(1)(B); 

4 ‘‘(C) the development of— 

5 ‘‘(i) statewide policies relating to the 

6 appropriate roles and contributions of one7 stop partner programs within the one-stop 

8 delivery system, including approaches to 

9 facilitating equitable and efficient cost allo10 cation in the one-stop delivery system; 

11 ‘‘(ii) statewide strategies for providing 

12 effective outreach to individuals, including 

13 hard-to-serve populations, and employers 

14 who could benefit from services provided 

15 through the one-stop delivery system; and 

16 ‘‘(iii) strategies for technology im17 provements to facilitate access to services 

18 provided through the one-stop delivery sys19 tem, in remote areas, and for individuals 

20 with disabilities, which may be utilized 

21 throughout the State; 

22 ‘‘(D) identification and dissemination of 

23 information on best practices for effective oper24 ation of one-stop centers, including use of inno25 vative business outreach, partnerships, and 
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1 service delivery strategies, including for hard-to2 serve populations; and 

3 ‘‘(E) conduct of such other matters as may 

4 promote statewide objectives for, and enhance 

5 the performance of, the one-stop delivery sys6 tems;’’; 

7 (6) in paragraph (5) (as redesignated by para8 graph (4)), by inserting ‘‘and the development of 

9 statewide criteria to be used by chief elected officials 

10 for the appointment of local boards consistent with 

11 section 117’’ after ‘‘section 116’’; 

12 (7) in paragraph (6) (as redesignated by para13 graph (4)), by striking ‘‘sections 128(b)(3)(B) and 

14 133(b)(3)(B)’’ and inserting ‘‘sections 128(b)(3) and 

15 133(b)(3)(B)’’; 

16 (8) in paragraph (9) (as redesignated by para17 graph (4))— 

18 (A) by striking ‘‘employment statistics sys19 tem’’ and inserting ‘‘workforce and labor mar20 ket information system’’; and 

21 (B) by striking ‘‘and’’ after the semicolon; 

22 (9) in paragraph (10) (as redesignated by para23 graph (4))— 

24 (A) by striking ‘‘section 503’’ and insert25 ing ‘‘section 136(i)(1)’’; and 
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1 (B) by striking the period and inserting ‘‘; 

2 and’’; and 

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

4 ‘‘(11) increasing the availability of skills train5 ing, employment opportunities, and career advance6 ment, for hard-to-serve populations.’’. 

7 (c) ALTERNATIVE ENTITY.—Section 111(e) (29 

8 U.S.C. 2811(e)) is amended— 

9 (1) in paragraph (1), by striking ‘‘For’’ and in10 serting ‘‘Subject to paragraph (3), for’’; and 

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

12 ‘‘(3) FAILURE TO MEET PERFORMANCE MEAS13 URES.—If a State fails to have performed success14 fully, as defined in section 116(a)(2), the Secretary 

15 may require the State to establish a State board in 

16 accordance with subsections (a), (b), and (c) in lieu 

17 of the alternative entity established under paragraph 

18 (1).’’. 

19 (d) SUNSHINE PROVISION.—Section 111(g) (29 

20 U.S.C. 2822(g)) is amended— 

21 (1) by inserting ‘‘, and modifications to the 

22 State plan,’’ before ‘‘prior’’; and 

23 (2) by inserting ‘‘, and modifications to the 

24 State plan’’ after ‘‘the plan’’. 
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1 (e) AUTHORITY TO HIRE STAFF.—Section 111 (29 

2 U.S.C. 2811)) is amended by adding at the end the fol3 lowing: 

4 ‘‘(h) AUTHORITY TO HIRE STAFF.—The State board 

5 may hire staff to assist in carrying out the functions de6 scribed in subsection (d) using funds allocated under sec7 tions 127(b)(1)(C) and 132(b).’’. 

8 SEC. 432B. STATE PLAN. 

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

10 2822(a)) is amended— 

11 (1) by striking ‘‘5-year strategy’’ and inserting 

12 ‘‘4-year strategy’’; and 

13 (2) by adding at the end the following: ‘‘At the 

14 end of the first 2-year period of the 4-year State 

15 plan, the State board shall review and, as needed, 

16 amend the 4-year State plan to reflect labor market 

17 and economic conditions. In addition, the State shall 

18 submit a modification to the State plan at the end 

19 of the first 2-year period of the State plan, which 

20 may include redesignation of local areas pursuant to 

21 section 116(a) and specification of the levels of per22 formance under sections 136 for the third and 

23 fourth years of the plan.’’. 

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

25 is amended— 
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1 (1) in paragraph (8)(A)— 

2 (A) in clause (ix), by striking ‘‘and’’ after 

3 the semicolon; and 

4 (B) by adding at the end the following: 

5 ‘‘(xi) programs authorized under title II of 

6 the Social Security Act (42 U.S.C. 401 et seq.) 

7 (relating to Federal old-age, survivors, and dis8 ability insurance benefits), title XVI of such Act 

9 (42 U.S.C. 1381 et seq.) (relating to supple10 mental security income), title XIX of such Act 

11 (42 U.S.C. 1396 et seq.) (relating to medicaid), 

12 and title XX of such Act (42 U.S.C. 1397 et 

13 seq.) (relating to block grants to States for so14 cial services), programs authorized under title 

15 VII of the Rehabilitation Act of 1973 (29 

16 U.S.C. 796 et seq.), and programs carried out 

17 by State agencies relating to mental retardation 

18 and developmental disabilities; and’’; 

19 (2) by striking paragraph (10) and inserting 

20 the following: 

21 ‘‘(10) a description of how the State will use 

22 funds the State received under this subtitle to lever23 age other Federal, State, local, and private re24 sources, in order to maximize the effectiveness of 

25 such resources, expand resources for the provision of 
85 

•S 9 IS 

1 education and training services, and expand the par2 ticipation of businesses, employees, and individuals 

3 in the statewide workforce investment system, in4 cluding a description of incentives and technical as5 sistance the State will provide to local areas for such 

6 purposes;’’; 

7 (3) in paragraph (12)(A), by striking ‘‘sections 

8 128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec9 tions 128(b)(3) and 133(b)(3)(B)’’; 

10 (4) in paragraph (14), by striking ‘‘section 

11 134(c)’’ and inserting ‘‘section 121(e)’’; 

12 (5) in paragraph (15), by striking ‘‘section 

13 116(a)(5)’’ and inserting ‘‘section 116(a)(4)’’; 

14 (6) in paragraph (17)— 

15 (A) in subparagraph (A)— 

16 (i) in clause (iii)— 

17 (I) by inserting ‘‘local’’ before 

18 ‘‘customized training’’; and 

19 (II) by striking ‘‘and’’ at the end; 

20 (ii) in clause (iv), by striking ‘‘(includ21 ing displaced homemakers),’’ and all that 

22 follows through ‘‘disabilities)’’ and insert23 ing ‘‘, hard-to-serve populations and indi24 viduals training for nontraditional employ25 ment’’; and 
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1 (iii) by adding after clause (iv) the 

2 following: 

3 ‘‘(v) how the State will serve the em4 ployment and training needs of individuals 

5 with disabilities, consistent with section 

6 188 and Executive Order 13217 (42 

7 U.S.C. 12131 note; relating to community8 based alternatives for individuals with dis9 abilities), including the provision of out10 reach, intake, the conduct of assessments, 

11 service delivery, the development of adjust12 ments to performance measures established 

13 under section 136, and the training of 

14 staff; and’’; and 

15 (B) in subparagraph (B), by striking 

16 ‘‘and’’ at the end; 

17 (7) in paragraph (18)(D)— 

18 (A) by striking ‘‘youth opportunity grants 

19 under section 169’’ and inserting ‘‘youth chal20 lenge grants authorized under section 169 and 

21 other federally funded youth programs’’; and 

22 (B) by striking the period and inserting a 

23 semicolon; and 

24 (8) by adding at the end the following: 
87 

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1 ‘‘(19) a description of how the State will utilize 

2 technology to facilitate access to services in remote 

3 areas, which may be utilized throughout the State; 

4 ‘‘(20) a description of the State strategy for co5 ordinating workforce investment activities and eco6 nomic development activities; 

7 ‘‘(21) a description of the State strategy and 

8 assistance to be provided for ensuring regional co9 operation within the State and across State borders 

10 as appropriate; 

11 ‘‘(22) a description of how the State will use 

12 funds the State receives under this subtitle to— 

13 ‘‘(A) implement innovative programs and 

14 strategies designed to meet the needs of all 

15 businesses in the State, including small busi16 nesses, which may include incumbent worker 

17 training programs, sectoral and industry cluster 

18 strategies, regional skills alliances, career ladder 

19 programs, utilization of effective business inter20 mediaries, and other business services and 

21 strategies that better engage employers in 

22 workforce investment activities and make the 

23 statewide workforce investment system more 

24 relevant to the needs of State and local busi-
88 

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1 nesses, consistent with the objectives of this 

2 title; and 

3 ‘‘(B) provide incentives and technical as4 sistance to assist local areas in more fully en5 gaging all employers, including small employers, 

6 in local workforce investment activities, to make 

7 the workforce investment system more relevant 

8 to the needs of area businesses, and to better 

9 coordinate workforce investment and economic 

10 development efforts to contribute to the eco11 nomic well-being of the local area, as deter12 mined appropriate by the local board; 

13 ‘‘(23) a description of the State strategy— 

14 ‘‘(A) for ensuring cooperation between 

15 transportation providers, including public trans16 portation providers, and providers of workforce 

17 investment activities; and 

18 ‘‘(B) for ensuring coordination among ap19 propriate State agencies and programs to make 

20 available skills training, employment services 

21 and opportunities, and career advancement ac22 tivities, that will assist ex-offenders in reen23 tering the workforce; 

24 ‘‘(24) a description of how the State will assist 

25 local areas in assuring physical and programmatic 
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1 accessibility for individuals with disabilities at one2 stop centers; 

3 ‘‘(25) a description of the process and method4 ology that will be used by the State board to— 

5 ‘‘(A) review statewide policies and provide 

6 guidance on the coordinated provision of serv7 ices through the one-stop delivery system de8 scribed in section 121; 

9 ‘‘(B) establish, in consultation with chief 

10 elected officials and local boards, objective cri11 teria and procedures for use by local boards in 

12 periodically assessing the effectiveness, physical 

13 and programmatic accessibility, and continuous 

14 improvement of one-stop centers and one-stop 

15 delivery systems as described in section 121(g); 

16 and 

17 ‘‘(C) determine— 

18 ‘‘(i) one-stop partner program con19 tributions for the costs of the infrastruc20 ture of one-stop centers under section 

21 121(h)(2); and 

22 ‘‘(ii) the formula for allocating the 

23 funds described in section 121(h)(2) to 

24 local areas; 
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1 ‘‘(26) a description of the State strategy for en2 suring that activities carried out under this title are 

3 placing men and women in jobs, education, or train4 ing that lead to comparable pay; and 

5 ‘‘(27) a description of the technical assistance 

6 available to one-stop operators and providers of 

7 training services for strategies to serve hard-to-serve 

8 populations and promote placement in nontraditional 

9 employment.’’. 

10 (c) MODIFICATIONS TO PLAN.—Section 112(d) (29 

11 U.S.C. 2822(d)) is amended— 

12 (1) by striking ‘‘5-year period’’ and inserting 

13 ‘‘4-year period’’; and 

14 (2) by adding at the end the following: ‘‘In ad15 dition, the State shall submit the modifications to 

16 the State plan required under subsection (a), under 

17 circumstances prescribed by the Secretary that are 

18 due to changes in Federal law that significantly af19 fect elements of the State plan.’’. 

20 SEC. 432C. LOCAL WORKFORCE INVESTMENT AREAS. 

21 (a) DESIGNATION OF AREAS.— 

22 (1) CONSIDERATIONS.—Section 116(a)(1) (29 

23 U.S.C. 2831(a)(1)) is amended— 
91 

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1 (A) in subparagraph (A), by striking 

2 ‘‘paragraphs (2), (3), and (4)’’ and inserting 

3 ‘‘paragraphs (2) and (3)’’; and 

4 (B) in subparagraph (B), by adding at the 

5 end the following: 

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

7 areas will promote maximum effectiveness 

8 in the administration and provision of serv9 ices.’’. 

10 (2) AUTOMATIC DESIGNATION.—Section 

11 116(a)(2) (29 U.S.C. 2831(a)(2)) is amended to 

12 read as follows: 

13 ‘‘(2) AUTOMATIC DESIGNATION.— 

14 ‘‘(A) IN GENERAL.—The Governor shall 

15 approve a request for designation as a local 

16 area that is submitted prior to the submission 

17 of the State plan, or of a modification to the 

18 State plan relating to area designation, from 

19 any area that— 

20 ‘‘(i) is a unit of general local govern21 ment with a population of 500,000 or 

22 more, except that after the initial 2-year 

23 period following such designation pursuant 

24 to this clause that occurs after the date of 

25 enactment of the Workforce Investment 
92 

•S 9 IS 

1 Act Amendments of 2005, the Governor 

2 shall only be required to approve a request 

3 for designation from such area if such 

4 area— 

5 ‘‘(I) performed successfully; and 

6 ‘‘(II) sustained fiscal integrity; 

7 ‘‘(ii) was a local area under this title 

8 for the preceding 2-year period, if such 

9 local area— 

10 ‘‘(I) performed successfully; and 

11 ‘‘(II) sustained fiscal integrity; 

12 ‘‘(iii) is served by a rural concentrated 

13 employment program grant recipient, ex14 cept that after the initial 2-year period fol15 lowing any such designation under the ini16 tial State plan submitted after the date of 

17 enactment of the Workforce Investment 

18 Act Amendments of 2005, the Governor 

19 shall only be required to approve a request 

20 for designation under this clause for such 

21 area if such area— 

22 ‘‘(I) performed successfully; and 

23 ‘‘(II) sustained fiscal integrity; or 

24 ‘‘(iv) was a local area under section 

25 116(a)(2)(C) (as in effect on the day be-
93 

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1 fore the date of enactment of the Work2 force Investment Act Amendments of 

3 2005), except that after the initial 2-year 

4 period following such designation pursuant 

5 to this clause that occurs after that date of 

6 enactment, the Governor shall only be re7 quired to approve a request for designation 

8 under this clause for such area if such 

9 area— 

10 ‘‘(I) performed successfully; and 

11 ‘‘(II) sustained fiscal integrity. 

12 ‘‘(B) DEFINITIONS.—For purposes of this 

13 paragraph: 

14 ‘‘(i) PERFORMED SUCCESSFULLY.— 

15 The term ‘performed successfully’, when 

16 used with respect to a local area, means 

17 the local area performed at 80 percent or 

18 more of the adjusted level of performance 

19 for core indicators of performance de20 scribed in section 136(b)(2)(A) for 2 con21 secutive years. 

22 ‘‘(ii) SUSTAINED FISCAL INTEG23 RITY.—The term ‘sustained fiscal integ24 rity’, used with respect to an area, means 

25 that the Secretary has not made a formal 
94 

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1 determination during the preceding 2-year 

2 period that either the grant recipient or 

3 the administrative entity of the area 

4 misexpended funds provided under this 

5 title due to willful disregard of the require6 ments of the Act involved, gross neg7 ligence, or failure to comply with accepted 

8 standards of administration.’’. 

9 (3) CONFORMING AMENDMENTS.—Section 

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

11 (A) by striking paragraph (3); 

12 (B) by redesignating paragraphs (4) and 

13 (5) as paragraph (3) and (4), respectively; 

14 (C) in paragraph (3) (as redesignated by 

15 subparagraph (B))— 

16 (i) by striking ‘‘(including temporary 

17 designation)’’; and 

18 (ii) by striking ‘‘(v)’’ and inserting 

19 ‘‘(vi)’’; and 

20 (D) in paragraph (4) (as redesignated by 

21 subparagraph (B))— 

22 (i) by striking ‘‘under paragraph (2) 

23 or (3)’’ and inserting ‘‘under paragraph 

24 (2)’’; and 

25 (ii) by striking the second sentence. 
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1 (b) SINGLE LOCAL AREA STATES.—Section 116(b) 

2 (29 U.S.C. 2831(b)) is amended to read as follows: 

3 ‘‘(b) SINGLE LOCAL AREA STATES.— 

4 ‘‘(1) CONTINUATION OF PREVIOUS DESIGNA5 TION.—Notwithstanding subsection (a)(2), the Gov6 ernor of any State that was a single local area for 

7 purposes of this title as of July 1, 2002, may con8 tinue to designate the State as a single local area for 

9 purposes of this title if the Governor identifies the 

10 State as a local area in the State plan under section 

11 112(b)(5). 

12 ‘‘(2) REDESIGNATION.—The Governor of a 

13 State not described in paragraph (1) may designate 

14 the State as a single local area if, prior to the sub15 mission of the State plan or modification to such 

16 plan so designating the State, no local area meeting 

17 the requirements for automatic designation under 

18 subsection (a)(2) requests such designation as a sep19 arate local area. 

20 ‘‘(3) EFFECT ON LOCAL PLAN.—In any case in 

21 which a State is designated as a local area pursuant 

22 to this subsection, the local plan prepared under sec23 tion 118 for the area shall be submitted to the Sec24 retary for approval as part of the State plan under 

25 section 112.’’. 
96 

•S 9 IS 

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

2 U.S.C. 2831(c)) is amended— 

3 (1) by striking paragraph (1) and inserting the 

4 following: 

5 ‘‘(1) PLANNING.— 

6 ‘‘(A) IN GENERAL.—As part of the process 

7 for developing the State plan, a State may re8 quire regional planning by local boards for a 

9 designated region in the State. The State may 

10 require the local boards for a designated region 

11 to participate in a regional planning process 

12 that results in the establishment of regional 

13 performance measures for workforce investment 

14 activities authorized under this subtitle. The 

15 State, after consultation with local boards and 

16 chief elected officials, may require the local 

17 boards for the designated region to prepare, 

18 submit, and obtain approval of a single regional 

19 plan that incorporates local plans for each of 

20 the local areas in the region, as required under 

21 section 118. The State may award regional in22 centive grants to the designated regions that 

23 meet or exceed the regional performance meas24 ures pursuant to section 134(a)(2)(B)(iii). 
97 

•S 9 IS 

1 ‘‘(B) TECHNICAL ASSISTANCE.—If the 

2 State requires regional planning as provided in 

3 subparagraph (A), the State shall provide tech4 nical assistance and labor market information 

5 to such local areas in the designated regions to 

6 assist with such regional planning and subse7 quent service delivery efforts.’’; 

8 (2) in paragraph (2), by inserting ‘‘information 

9 about the skill requirements of existing and emerg10 ing industries and industry clusters,’’ after ‘‘infor11 mation about employment opportunities and 

12 trends,’’; and 

13 (3) in paragraph (3), by adding at the end the 

14 following: ‘‘Such services may be required to be co15 ordinated with regional economic development serv16 ices and strategies.’’. 

17 SEC. 432D. LOCAL WORKFORCE INVESTMENT BOARDS. 

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

19 2832(b)) is amended— 

20 (1) in paragraph (2)(A)— 

21 (A) in clause (i), by striking subclause (II) 

22 and inserting the following: 

23 ‘‘(II) collectively, represent busi24 nesses with employment opportunities 

25 that reflect the employment opportu-
98 

•S 9 IS 

1 nities of the local area, and include 

2 representatives of businesses that are 

3 in high-growth and emerging indus4 tries, and representatives of busi5 nesses, including small businesses, in 

6 the local area; and’’; 

7 (B) by striking clause (ii) and inserting the 

8 following: 

9 ‘‘(ii)(I) a superintendent representing 

10 the local school districts involved or an11 other high-level official from such districts; 

12 ‘‘(II) the president or highest ranking 

13 official of an institution of higher edu14 cation serving the local area; and 

15 ‘‘(III) an administrator of local enti16 ties providing adult education and literacy 

17 activities in the local area;’’; 

18 (C) in clause (iv), by inserting ‘‘, hard-to19 serve populations,’’ after ‘‘disabilities’’; and 

20 (D) by striking clause (vi) and inserting 

21 the following: 

22 ‘‘(vi) if the local board does not estab23 lish or continue a youth council, represent24 atives with experience serving out-of-school 
99 

•S 9 IS 

1 youth, particularly out-of-school youth fac2 ing barriers to employment; and’’; and 

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

4 ‘‘(6) SPECIAL RULE.—In the case that there 

5 are multiple school districts or institutions of higher 

6 education serving a local area, the representatives 

7 described in subclause (I) or (II) of paragraph 

8 (2)(A)(ii), respectively, shall be appointed from 

9 among individuals nominated by regional or local 

10 educational agencies, institutions, or organizations 

11 representing such agencies or institutions.’’. 

12 (b) AUTHORITY OF BOARD MEMBERS.—Section 

13 117(b)(3) (29 U.S.C. 2832(b)(3)) is amended— 

14 (1) in the heading, by inserting ‘‘AND REP15 RESENTATION’’ after ‘‘AUTHORITY’’; and 

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

17 members of the board shall represent diverse geo18 graphic sections within the local area.’’. 

19 (c) CONFORMING AMENDMENT.—Section 

20 117(c)(1)(C) (29 U.S.C. 2832(c)(1)(C)) is amended by 

21 striking ‘‘section 116(a)(2)(B)’’ and inserting ‘‘section 

22 116(a)(2)(A)(ii)’’. 

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

24 2832(d)) is amended— 

25 (1) in paragraph (2)— 
100 

•S 9 IS 

1 (A) in subparagraph (B)— 

2 (i) by inserting ‘‘(except as provided 

3 in section 123(b))’’ after ‘‘basis’’; and 

4 (ii) by inserting ‘‘(where appro5 priate)’’ after ‘‘youth council’’; and 

6 (B) by adding at the end the following: 

7 ‘‘(E) CONSUMER CHOICE REQUIRE8 MENTS.—Consistent with sections 122 and 

9 paragraphs (3) and (4) of 134(d), the local 

10 board shall work to ensure there are sufficient 

11 providers of intensive services and training serv12 ices serving the local area in a manner that 

13 maximizes consumer choice, including providers 

14 with expertise in assisting individuals with dis15 abilities.’’; 

16 (2) in paragraph (4), by inserting ‘‘, and shall 

17 ensure the appropriate use and management of the 

18 funds provided under this subtitle for such pro19 grams, activities, and system’’ after ‘‘area’’; 

20 (3) in paragraph (6)— 

21 (A) by striking ‘‘EMPLOYMENT STATISTICS

22 SYSTEM’’ and inserting ‘‘WORKFORCE AND

23 LABOR MARKET INFORMATION SYSTEM’’; and 
101 

•S 9 IS 

1 (B) by striking ‘‘employment statistics sys2 tem’’ and inserting ‘‘workforce and labor mar3 ket information system’’; 

4 (4) in paragraph (8)— 

5 (A) by inserting ‘‘, including small employ6 ers,’’ after ‘‘private sector employers’’; and 

7 (B) by striking the period and inserting ‘‘, 

8 taking into account the unique needs of small 

9 businesses.’’; and 

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

11 ‘‘(9) TECHNOLOGY IMPROVEMENTS.—The local 

12 board shall develop strategies for technology im13 provements to facilitate access to services, in remote 

14 areas, for services authorized under this subtitle and 

15 carried out in the local area.’’. 

16 (e) CONFORMING AMENDMENT.—Section 117(f)(2) 

17 (29 U.S.C. 2832(f)(2)) is amended by striking ‘‘described 

18 in section 134(c)’’. 

19 (f) AUTHORITY TO ESTABLISH COUNCILS AND

20 ELIMINATION OF REQUIREMENT FOR YOUTH COUN21 CILS.—Section 117(h) (29 U.S.C. 2832(h)) is amended to 

22 read as follows: 

23 ‘‘(h) COUNCILS.—The local board may establish or 

24 continue councils to provide information and advice to as-
102 

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1 sist the local board in carrying out activities under this 

2 title. Such councils may include— 

3 ‘‘(1) a council composed of one-stop partners to 

4 advise the local board on the operation of the one5 stop delivery system involved; 

6 ‘‘(2) a youth council composed of experts and 

7 stakeholders in youth programs to advise the local 

8 board on youth activities; and 

9 ‘‘(3) such other councils as the local board de10 termines are appropriate.’’. 

11 (g) ALTERNATIVE ENTITY PROVISION.—Section 

12 117(i)(1) (29 U.S.C. 2832(i)(1)) is amended— 

13 (1) in the matter preceding subparagraph (A), 

14 by striking ‘‘and paragraphs (1) and (2) of sub15 section (h),’’; 

16 (2) by striking subparagraph (B) and inserting 

17 the following: 

18 ‘‘(B) was in existence on August 7, 1998, 

19 pursuant to State law; and’’; 

20 (3) by striking subparagraph (C); and 

21 (4) by redesignating subparagraph (D) as sub22 paragraph (C). 

23 SEC. 432E. LOCAL PLAN. 

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

25 2833(a)) is amended— 
103 

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1 (1) by striking ‘‘5-year’’ and inserting ‘‘4-year’’; 

2 and 

3 (2) by adding at the end the following: ‘‘At the 

4 end of the first 2-year period of the 4-year plan, the 

5 local board shall review and, as needed, amend the 

6 4-year plan to reflect labor market and economic 

7 conditions.’’. 

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

9 is amended— 

10 (1) in paragraph (2)— 

11 (A) in subparagraph (A), by striking 

12 ‘‘and’’ after the semicolon; 

13 (B) by striking subparagraph (B) and in14 serting the following: 

15 ‘‘(B) a description of how the local board 

16 will facilitate access to services provided 

17 through the one-stop delivery system, in remote 

18 areas, including facilitating access through the 

19 use of technology; and’’; and 

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

21 ‘‘(C) a description of how the local board 

22 will ensure physical and programmatic accessi23 bility for individuals with disabilities at one-stop 

24 centers;’’; 
104 

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1 (2) in paragraph (9), by striking ‘‘; and’’ and 

2 inserting a semicolon; 

3 (3) by redesignating paragraph (10) as para4 graph (14); and 

5 (4) by inserting after paragraph (9) the fol6 lowing: 

7 ‘‘(10) a description of how the local board will 

8 coordinate workforce investment activities carried 

9 out in the local area with economic development ac10 tivities carried out in the local area; 

11 ‘‘(11) a description of the strategies and serv12 ices that will be initiated in the local area to more 

13 fully engage all employers, including small employ14 ers, in workforce investment activities, to make the 

15 workforce investment system more relevant to the 

16 needs of area businesses, and to better coordinate 

17 workforce investment and economic development ef18 forts, which may include the implementation of inno19 vative initiatives such as incumbent worker training 

20 programs, sectoral and industry cluster strategies, 

21 regional skills alliance initiatives, career ladder pro22 grams, utilization of effective business inter23 mediaries, and other business services and strategies 

24 designed to meet the needs of area employers and 

25 contribute to the economic well-being of the local 
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1 area, as determined appropriate by the local board, 

2 consistent with the objectives of this title; 

3 ‘‘(12) a description of how the local board will 

4 expand access to education and training services for 

5 eligible individuals who are in need of such services 

6 through— 

7 ‘‘(A) the utilization of programs funded 

8 under this title; and 

9 ‘‘(B) the increased leveraging of resources 

10 other than those provided under this title, in11 cluding tax credits, private sector-provided 

12 training, and other Federal, State, local, and 

13 private funds that are brokered through the 

14 one-stop centers for training services; 

15 ‘‘(13) a description of how the local board will 

16 coordinate workforce investment activities carried 

17 out in the local area with the provision of transpor18 tation, including public transportation, in the local 

19 area; and’’. 

20 SEC. 432F. ESTABLISHMENT OF ONE-STOP DELIVERY SYS21 TEMS. 

22 (a) ONE-STOP PARTNERS.— 

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

24 (29 U.S.C. 2841(b)(1)) is amended— 
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1 (A) by striking subparagraph (A) and in2 serting the following: 

3 ‘‘(A) ROLES AND RESPONSIBILITIES OF

4 ONE-STOP PARTNERS.—Each entity that carries 

5 out a program or activities described in sub6 paragraph (B) shall— 

7 ‘‘(i) provide access through the one8 stop delivery system to the programs and 

9 activities carried out by the entity, includ10 ing making the core services described in 

11 section 134(d)(2) that are applicable to the 

12 program of the entity available at the com13 prehensive one-stop centers (in addition to 

14 any other appropriate locations); 

15 ‘‘(ii) use a portion of the funds avail16 able to the program of the entity to main17 tain the one-stop delivery system, including 

18 payment of the infrastructure costs of one19 stop centers in accordance with subsection 

20 (h); 

21 ‘‘(iii) enter into a local memorandum 

22 of understanding with the local board re23 lating to the operation of the one-stop sys24 tem that meets the requirements of sub25 section (c); 
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•S 9 IS 

1 ‘‘(iv) participate in the operation of 

2 the one-stop system consistent with the 

3 terms of the memorandum of under4 standing, the requirements of this title, 

5 and the requirements of the Federal laws 

6 authorizing the programs carried out by 

7 the entity; and 

8 ‘‘(v) provide representation on the 

9 State board to the extent provided under 

10 section 111.’’; 

11 (B) in subparagraph (B)— 

12 (i) by striking clause (v); 

13 (ii) by redesignating clauses (vi) 

14 through (xii) as clauses (v) through (xi), 

15 respectively; 

16 (iii) in clause (x) (as redesignated by 

17 clause (ii)), by striking ‘‘and’’ at the end; 

18 (iv) in clause (xi) (as redesignated by 

19 clause (ii)), by striking the period and in20 serting ‘‘; and’’; and 

21 (v) by adding at the end the following: 

22 ‘‘(xii) programs authorized under part 

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

24 U.S.C. 601 et seq.), subject to subpara25 graph (C).’’; and 
108 

•S 9 IS 

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

2 ‘‘(C) DETERMINATION BY THE GOV3 ERNOR.— 

4 ‘‘(i) IN GENERAL.—An entity that 

5 carries out programs referred to in sub6 paragraph (B)(xii) shall be included in the 

7 one-stop partners for the local area, as a 

8 required partner, for purposes of this title 

9 unless the Governor of the State provides 

10 the notification described in clause (ii). 

11 ‘‘(ii) NOTIFICATION.—The notification 

12 referred to in clause (i) is a notification 

13 that— 

14 ‘‘(I) is made in writing of a de15 termination by the Governor not to in16 clude such entity in the one-stop part17 ners described in clause (i); and 

18 ‘‘(II) is provided to the Secretary 

19 and the Secretary of Health and 

20 Human Services.’’. 

21 (2) ADDITIONAL PARTNERS.— 

22 (A) IN GENERAL.—Section 121(b)(2)(A) 

23 (29 U.S.C. 2841(b)(2)(A)) is amended to read 

24 as follows: 
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1 ‘‘(A) IN GENERAL.—With the approval of 

2 the local board and chief elected official, in ad3 dition to the entities described in paragraph 

4 (1), other entities that carry out human re5 source programs described in subparagraph (B) 

6 may be one-stop partners and carry out the re7 sponsibilities described in paragraph (1)(A).’’. 

8 (B) ADDITIONAL PARTNERS.—Section 

9 121(b)(2)(B) (29 U.S.C. 2841(b)(2)(B)) is 

10 amended by striking clauses (i) through (iii) 

11 and inserting the following: 

12 ‘‘(i) employment and training pro13 grams administered by the Social Security 

14 Administration, including the Ticket to 

15 Work and Self-Sufficiency program estab16 lished under section 1148 of the Social Se17 curity Act (42 U.S.C. 1320b–19); 

18 ‘‘(ii) employment and training pro19 grams carried out by the Small Business 

20 Administration; 

21 ‘‘(iii) programs authorized under sec22 tion 6(d)(4) of the Food Stamp Act of 

23 1977 (7 U.S.C. 2015(d)(4));’’. 
110 

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1 (b) LOCAL MEMORANDUM OF UNDERSTANDING.— 

2 Section 121(c)(2)(A) (29 U.S.C. 2841(c)(2)(A)) is amend3 ed to read as follows: 

4 ‘‘(A) provisions describing— 

5 ‘‘(i) the services to be provided 

6 through the one-stop delivery system con7 sistent with the requirements of this sec8 tion, including the manner in which the 

9 services will be coordinated through such 

10 system; 

11 ‘‘(ii) how the costs of such services 

12 and the operating costs of such system will 

13 be funded to provide a stable and equitable 

14 funding stream for ongoing one-stop sys15 tem operations, including the funding of 

16 the infrastructure costs of one-stop centers 

17 in accordance with subsection (h); 

18 ‘‘(iii) methods of referral of individ19 uals between the one-stop operator and the 

20 one-stop partners for appropriate services 

21 and activities; 

22 ‘‘(iv) methods to ensure the needs of 

23 hard-to-serve populations are addressed in 

24 providing access to services through the 

25 one-stop system; and 
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•S 9 IS 

1 ‘‘(v) the duration of the memorandum 

2 of understanding and the procedures for 

3 amending the memorandum during the 

4 term of the memorandum, and assurances 

5 that such memorandum shall be reviewed 

6 not less than once every 2-year period to 

7 ensure appropriate funding and delivery of 

8 services; and’’. 

9 (c) CONFORMING AMENDMENT.—Section 121(d)(2) 

10 (29 U.S.C. 2841(d)(2)) is amended by striking ‘‘section 

11 134(c)’’ and inserting ‘‘section 121(e)’’. 

12 (d) PROVISION OF SERVICES.— 

13 (1) ELIMINATION OF PROVISIONS CONCERNING

14 ESTABLISHED SYSTEMS.—Section 121 (29 U.S.C. 

15 2841) is amended by striking subsection (e). 

16 (2) REDESIGNATION.—Subtitle B of title I is 

17 amended— 

18 (A) in section 134 (29 U.S.C. 2864), by 

19 redesignating subsection (c) as subsection (e); 

20 and 

21 (B) by transferring that subsection (e) so 

22 that the subsection appears after subsection (d) 

23 of section 121. 
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•S 9 IS 

1 (3) ONE-STOP DELIVERY SYSTEMS.—Paragraph 

2 (1) of section 121(e) (29 U.S.C. 2841(e)) (as redes3 ignated by paragraph (2)) is amended— 

4 (A) in subparagraph (A), by striking ‘‘sub5 section (d)(2)’’ and inserting ‘‘section 

6 134(d)(2)’’; 

7 (B) in subparagraph (B)— 

8 (i) by striking ‘‘subsection (d)’’ and 

9 inserting ‘‘section 134(d)’’; 

10 (ii) by striking ‘‘individual training 

11 accounts’’ and inserting ‘‘career scholar12 ship accounts’’; and 

13 (iii) by striking ‘‘subsection 

14 (d)(4)(G)’’ and inserting ‘‘section 

15 134(d)(4)(G)’’; 

16 (C) in subparagraph (C), by striking ‘‘sub17 section (e)’’ and inserting ‘‘section 134(e)’’; 

18 (D) in subparagraph (D), by striking ‘‘sec19 tion 121(b)’’ and inserting ‘‘subsection (b)’’; 

20 and 

21 (E) in subparagraph (E), by striking ‘‘in22 formation described in section 15’’ and insert23 ing ‘‘data, information, and analysis described 

24 in section 15(a)’’. 
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•S 9 IS 

1 (e) CONTINUOUS IMPROVEMENT OF ONE-STOP CEN2 TERS.—Section 121 (29 U.S.C. 2841) is amended by add3 ing at the end the following: 

4 ‘‘(g) CONTINUOUS IMPROVEMENT OF ONE-STOP

5 CENTERS.— 

6 ‘‘(1) IN GENERAL.—The State board, in con7 sultation with chief local elected officials and local 

8 boards, shall establish objective criteria and proce9 dures for use by local boards in periodically assess10 ing the effectiveness, physical and programmatic ac11 cessibility, and continuous improvement of one-stop 

12 centers and one-stop delivery systems. 

13 ‘‘(2) CRITERIA.—The procedures and criteria 

14 developed under this subsection shall include min15 imum standards relating to the scope and degree of 

16 service coordination achieved by the one-stop deliv17 ery system with respect to the programs adminis18 tered by the one-stop partners at the one-stop cen19 ters, consistent with the guidelines and guidance 

20 provided by the Governor and by the State board, in 

21 consultation with the chief elected official and local 

22 boards, for such partners’ participation under sub23 sections (h)(1)(B) and subsection (i), respectively, 

24 and such other factors relating to the quality, acces25 sibility, and effectiveness of the one-stop delivery 
114 

•S 9 IS 

1 system as the State board determines to be appro2 priate. 

3 ‘‘(3) LOCAL BOARDS.—Consistent with the cri4 teria developed by the State, the local board may de5 velop additional criteria of higher standards to re6 spond to local labor market and demographic condi7 tions and trends. 

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

9 ‘‘(1) IN GENERAL.— 

10 ‘‘(A) OPTIONS FOR INFRASTRUCTURE

11 FUNDING.— 

12 ‘‘(i) LOCAL OPTIONS.—The local 

13 board, chief elected officials, and one-stop 

14 partners in a local area may choose to 

15 fund the costs of the infrastructure of one16 stop centers through— 

17 ‘‘(I) methods described in the 

18 local memorandum of understanding, 

19 if, the local board, chief elected offi20 cials, and one-stop partners agree to 

21 such methods; or 

22 ‘‘(II) the State infrastructure 

23 funding mechanism described in para24 graph (2). 
115 

•S 9 IS 

1 ‘‘(ii) FAILURE TO REACH AGREEMENT

2 ON FUNDING METHODS.—If, as of July 1, 

3 2005, the local board, chief elected offi4 cials, and one-stop partners in a local area 

5 fail to reach agreement on methods of suf6 ficient funding of the infrastructure costs 

7 of one-stop centers, as determined by the 

8 local area, the State infrastructure funding 

9 mechanism described in paragraph (2) 

10 shall be applicable to such local area. 

11 ‘‘(B) GUIDANCE FOR INFRASTRUCTURE

12 FUNDING.—In addition to carrying out the re13 quirements relating to the State mechanism for 

14 one-stop center infrastructure funding described 

15 in paragraph (2), the Governor, after consulta16 tion with chief local elected officials, local 

17 boards, and the State board, and consistent 

18 with the guidelines provided by the State board 

19 under subsection (i), shall provide— 

20 ‘‘(i) guidelines for State administered 

21 one-stop partner programs in determining 

22 such programs’ contributions to and par23 ticipation in the one-stop delivery system, 

24 including funding for the costs of infra25 structure as defined in paragraph (2)(D), 
116 

•S 9 IS 

1 negotiated pursuant to the local memo2 randum of understanding under subsection 

3 (c); and 

4 ‘‘(ii) guidance to assist local areas in 

5 identifying equitable and stable alternative 

6 methods of funding of the costs of the in7 frastructure of one-stop centers in local 

8 areas. 

9 ‘‘(2) STATE ONE-STOP INFRASTRUCTURE FUND10 ING.— 

11 ‘‘(A) PARTNER CONTRIBUTIONS.— 

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

13 (iii), a portion determined under clause (ii) 

14 of the Federal funds provided to the State 

15 and areas within the State under the Fed16 eral laws authorizing the programs de17 scribed in subsection (b)(1) and adminis18 tered by one-stop partners for a fiscal year 

19 shall be provided to the Governor from 

20 such programs to assist in paying the costs 

21 of infrastructure of one-stop centers in 

22 those local areas of the State not funded 

23 under the option described in paragraph 

24 (1)(A)(i)(I). 
117 

•S 9 IS 

1 ‘‘(ii) DETERMINATION OF GOV2 ERNOR.— 

3 ‘‘(I) IN GENERAL.—Subject to 

4 subclause (II) and clause (iii), the 

5 Governor, after consultation with chief 

6 local elected officials, local boards, 

7 and the State board, shall determine 

8 the portion of funds to be provided 

9 under clause (i) by each one-stop 

10 partner from each program described 

11 in clause (i). In making such deter12 mination, the Governor shall calculate 

13 the proportionate use of the one-stop 

14 centers for the purpose of determining 

15 funding contributions pursuant to 

16 clause (i)(II) or (ii) of paragraph 

17 (1)(A) by each partner, and the costs 

18 of administration for purposes not re19 lated to one-stop centers for each 

20 partner. The Governor shall exclude 

21 from such determination the portion 

22 of funds and use of one-stop centers 

23 attributable to the programs of one24 stop partners for those local areas of 

25 the State where the infrastructure of 
118 

•S 9 IS 

1 one-stop centers is funded under the 

2 option described in paragraph 

3 (1)(A)(i)(I). 

4 ‘‘(II) SPECIAL RULE.—In a State 

5 in which the State constitution places 

6 policymaking authority that is inde7 pendent of the authority of the Gov8 ernor in an entity or official with re9 spect to the funds provided for adult 

10 education and literacy activities au11 thorized under title II and for postsec12 ondary vocational and technical edu13 cation activities authorized under the 

14 Carl D. Perkins Vocational and Tech15 nical Education Act of 1998 (20 

16 U.S.C. 2301 et seq.), or vocational re17 habilitation services offered under the 

18 Rehabilitation Act of 1973 (29 U.S.C. 

19 701 et seq.), the determination de20 scribed in subclause (I) with respect 

21 to the programs authorized under that 

22 title and those Acts shall be made by 

23 the chief officer of the entity with 

24 such authority in consultation with 

25 the Governor. 
119 

•S 9 IS 

1 ‘‘(III) APPEAL BY ONE-STOP

2 PARTNERS.—The Governor shall es3 tablish a procedure for the one-stop 

4 partner administering a program de5 scribed in subsection (b) to appeal a 

6 determination regarding the portion of 

7 funds to be contributed under this 

8 paragraph on the basis that such de9 termination is inconsistent with the 

10 criteria described in the State plan or 

11 with the requirements of this para12 graph. Such procedure shall ensure 

13 prompt resolution of the appeal. 

14 ‘‘(iii) LIMITATIONS.— 

15 ‘‘(I) PROVISION FROM ADMINIS16 TRATIVE FUNDS.—The funds provided 

17 under this paragraph by each one-stop 

18 partner shall be provided only from 

19 funds available for the costs of admin20 istration under the program adminis21 tered by such partner, and shall be 

22 subject to the program limitations 

23 with respect to the portion of funds 

24 under such program that may be used 

25 for administration. 
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•S 9 IS 

1 ‘‘(II) CAP ON REQUIRED CON2 TRIBUTIONS.— 

3 ‘‘(aa) WIA FORMULA PRO4 GRAMS AND EMPLOYMENT SERV5 ICE.—The portion of funds re6 quired to be contributed under 

7 clause (i)(II) or (ii) of paragraph 

8 (1)(A) by the programs author9 ized under chapters 4 and 5 and 

10 under the Wagner-Peyser Act 

11 (29 U.S.C. 49 et seq.) shall not 

12 be in excess of 3 percent of the 

13 amount of Federal funds pro14 vided to carry out each such pro15 gram in the State for a fiscal 

16 year. 

17 ‘‘(bb) OTHER ONE-STOP

18 PARTNERS.—The portion of 

19 funds required to be contributed 

20 under clause (i)(II) or (ii) of 

21 paragraph (1)(A) by a one-stop 

22 partner from a program de23 scribed in subsection (b)(1) other 

24 than the programs described 

25 under item (aa) shall not be in 
121 

•S 9 IS 

excess of 11 1 ⁄2 percent of the 

2 amount of Federal funds pro3 vided to carry out such program 

4 in the State for a fiscal year. 

5 ‘‘(cc) SPECIAL RULE.—Not6 withstanding items (aa) and (bb), 

7 an agreement, including a local 

8 memorandum of understanding, 

9 entered into prior to the date of 

10 enactment of the Workforce In11 vestment Act Amendments of 

12 2005 by an entity regarding con13 tributions under this title that 

14 permits the percentages described 

15 in such items to be exceeded, 

16 may continue to be in effect until 

17 terminated by the parties. 

18 ‘‘(dd) VOCATIONAL REHA19 BILITATION.—Notwithstanding 

20 items (aa) and (bb), an entity ad21 ministering a program under title 

22 I of the Rehabilitation Act of 

23 1973 (29 U.S.C. 720 et seq.) 

24 shall not be required to provide, 
122 

•S 9 IS 

1 for the purposes of this para2 graph, an amount in excess of— 

3 ‘‘(AA) 0.75 percent of 

4 the amount provided for 

5 such program in the State 

6 for the second program year 

7 that begins after the date of 

8 enactment of the Workforce 

9 Investment Act Amendments 

10 of 2005; 

11 ‘‘(BB) 1.0 percent of 

12 the amount provided for 

13 such program in the State 

14 for the third program year 

15 that begins after such date; 

16 ‘‘(CC) 1.25 percent of 

17 the amount provided for 

18 such program in the State 

19 for the fourth program year 

20 that begins after such date; 

21 and 

22 ‘‘(DD) 1.5 percent of 

23 the amount provided for 

24 such program in the State 

25 for the fifth and each suc-
123 

•S 9 IS 

1 ceeding program year that 

2 begins after such date. 

3 ‘‘(III) FEDERAL DIRECT SPEND4 ING PROGRAMS.—An entity admin5 istering a program funded with direct 

6 spending as defined in section 

7 250(c)(8) of the Balanced Budget and 

8 Emergency Deficit Control Act of 

9 1985 (2 U.S.C. 900(c)(8)) shall not 

10 be required to provide, for purposes of 

11 this paragraph, an amount in excess 

12 of the amount determined to be equiv13 alent to the cost of the proportionate 

14 use of the one-stop centers for such 

15 program in the State. 

16 ‘‘(IV) NATIVE AMERICAN PRO17 GRAMS.—Native American programs 

18 established under section 166 shall 

19 not be subject to the provisions of this 

20 subsection or subsection (i). The 

21 method for determining the appro22 priate portion of funds to be provided 

23 by such Native American programs to 

24 pay for the costs of infrastructure of 

25 a one-stop center shall be determined 
124 

•S 9 IS 

1 as part of the development of the 

2 memorandum of understanding under 

3 subsection (c) for the one-stop center 

4 and shall be stated in the memo5 randum. 

6 ‘‘(B) ALLOCATION BY GOVERNOR.—From 

7 the funds provided under subparagraph (A), the 

8 Governor shall allocate the funds to local areas 

9 in accordance with the formula established 

10 under subparagraph (C) for the purposes of as11 sisting in paying the costs of infrastructure of 

12 one-stop centers. 

13 ‘‘(C) ALLOCATION FORMULA.—The State 

14 board shall develop a formula to be used by the 

15 Governor to allocate the funds provided under 

16 subparagraph (A) to local areas not funding in17 frastructure costs under the option described in 

18 paragraph (1)(A)(i)(I). The formula shall be 

19 based on factors including the number of one20 stop centers in a local area, the population 

21 served by such centers, the services provided by 

22 such centers, and other factors relating to the 

23 performance of such centers that the State 

24 board determines are appropriate. 
125 

•S 9 IS 

1 ‘‘(D) COSTS OF INFRASTRUCTURE.—In 

2 this subsection, the term ‘costs of infrastruc3 ture’, used with respect to a one-stop center, 

4 means the nonpersonnel costs that are nec5 essary for the general operation of the one-stop 

6 center, including the rental costs of the facili7 ties, the costs of utilities and maintenance, 

8 equipment (including adaptive technology for 

9 individuals with disabilities), and technology to 

10 facilitate remote access to the one-stop center’s 

11 strategic planning activities, and common out12 reach activities. 

13 ‘‘(i) OTHER FUNDS.— 

14 ‘‘(1) IN GENERAL.—Subject to the memo15 randum of understanding described in subsection (c) 

16 for the one-stop delivery system involved, in addition 

17 to the funds provided to carry out subsection (h), a 

18 portion of funds made available under Federal law 

19 authorizing the programs described in subsection (b) 

20 and administered by one-stop partners, or the 

21 noncash resources available under such programs, 

22 shall be used to pay the additional costs relating to 

23 the operation of the one-stop delivery system that 

24 are not paid from the funds provided under sub25 section (h), as determined in accordance with para-
126 

•S 9 IS 

1 graph (2), to the extent not inconsistent with the 

2 Federal law involved. Such costs shall include the 

3 costs of the provision of core services described in 

4 section 134(d)(2) applicable to each program and 

5 may include common costs that are not paid from 

6 the funds provided under subsection (h). 

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

8 method for determining the appropriate portion of 

9 funds and noncash resources to be provided by each 

10 program under paragraph (1) for a one-stop center 

11 shall be determined as part of the development of 

12 the memorandum of understanding under subsection 

13 (c) for the one-stop center and shall be stated in the 

14 memorandum. The State board shall provide guid15 ance to facilitate the determination of an appro16 priate allocation of the funds and noncash resources 

17 in local areas.’’. 

18 SEC. 432G. ELIGIBLE PROVIDERS OF TRAINING SERVICES. 

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

20 follows: 

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

22 TRAINING SERVICES. 

23 ‘‘(a) IN GENERAL.—The Governor, after consultation 

24 with the State board, shall establish criteria and proce25 dures regarding the eligibility of providers of training serv-
127 

•S 9 IS 

1 ices described in section 134(d)(4) (referred to in this sec2 tion as ‘training services’) to receive funds provided under 

3 section 133(b) for the provision of training services. 

4 ‘‘(b) CRITERIA.— 

5 ‘‘(1) IN GENERAL.—The criteria established by 

6 the Governor pursuant to subsection (a) shall take 

7 into account— 

8 ‘‘(A) the performance of providers of train9 ing services with respect to the performance 

10 measures described in section 136 or other ap11 propriate measures of performance outcomes 

12 for those individuals receiving training services 

13 under this subtitle (taking into consideration 

14 the characteristics of the population served and 

15 relevant economic conditions); 

16 ‘‘(B) the need to ensure access to training 

17 services throughout the State, including any 

18 rural areas; 

19 ‘‘(C) the information such providers are re20 quired to report to State agencies with respect 

21 to Federal and State programs (other than the 

22 program carried out under this subtitle), includ23 ing one-stop partner programs; 

24 ‘‘(D) the requirements for State licensing 

25 of providers of training services, and the licens-
128 

•S 9 IS 

1 ing status of each provider of training services 

2 if applicable; 

3 ‘‘(E) to the extent practicable, encouraging 

4 the use of industry-recognized standards and 

5 certification; 

6 ‘‘(F) the ability to provide training services 

7 to hard-to-serve populations, including individ8 uals with disabilities; and 

9 ‘‘(G) such other factors as the Governor 

10 determines are appropriate to ensure— 

11 ‘‘(i) the quality of services provided; 

12 ‘‘(ii) the accountability of the pro13 viders; 

14 ‘‘(iii) that the one-stop centers in the 

15 State will ensure that such providers meet 

16 the needs of local employers and partici17 pants; 

18 ‘‘(iv) the informed choice of partici19 pants under chapter 5; and 

20 ‘‘(v) that the collection of information 

21 required is not unduly burdensome or cost22 ly to providers. 

23 ‘‘(2) INFORMATION AND RENEWAL.—The cri24 teria established by the Governor shall require that 

25 a provider of training services submit appropriate, 
129 

•S 9 IS 

1 accurate, and timely information to the State for 

2 purposes of carrying out subsection (d). The criteria 

3 shall also provide for annual review and renewal of 

4 eligibility under this section for providers of training 

5 services. 

6 ‘‘(3) LOCAL CRITERIA.—A local board in the 

7 State may establish criteria in addition to the cri8 teria established by the Governor, or may require 

9 higher levels of performance than required under the 

10 criteria established by the Governor, for purposes of 

11 determining the eligibility of providers of training 

12 services to receive funds described in subsection (a) 

13 to provide the services in the local area involved. 

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

15 under subsection (a) shall identify the application process 

16 for a provider of training services to become eligible to 

17 receive funds provided under section 133(b) for the provi18 sion of training services, and identify the respective roles 

19 of the State and local areas in receiving and reviewing the 

20 applications and in making determinations of such eligi21 bility based on the criteria established under this section. 

22 The procedures shall also establish a process for a pro23 vider of training services to appeal a denial or termination 

24 of eligibility under this section, that includes an oppor-
130 

•S 9 IS 

1 tunity for a hearing and prescribes appropriate time limits 

2 to ensure prompt resolution of the appeal. 

3 ‘‘(d) INFORMATION TO ASSIST PARTICIPANTS IN

4 CHOOSING PROVIDERS.— 

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

6 assist participants in choosing employment and 

7 training activities under chapter 5 and in choosing 

8 providers of training services, the Governor shall en9 sure that an appropriate list of providers determined 

10 to be eligible under this section in the State, accom11 panied by appropriate information provided by pro12 viders of training services in the State in accordance 

13 with subsection (b) and such other information as 

14 the Governor determines is appropriate, including in15 formation on program costs for participants in appli16 cable programs, is provided to the one-stop delivery 

17 system in the State. The list and the information 

18 shall be made available to such participants and to 

19 members of the public through the one-stop delivery 

20 system in the State. 

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

22 out programs under the Act of August 16, 1937 

23 (commonly known as the ‘National Apprenticeship 

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

25 seq.) shall be included on the list of eligible pro-
131 

•S 9 IS 

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

2 entity remains certified by the Department of Labor. 

3 ‘‘(e) ENFORCEMENT.— 

4 ‘‘(1) IN GENERAL.—The criteria and proce5 dures established under this section shall provide the 

6 following: 

7 ‘‘(A) INTENTIONALLY SUPPLYING INAC8 CURATE INFORMATION.—Upon a determination, 

9 by an individual or entity specified in the cri10 teria or procedures, that a provider of training 

11 services, or individual providing information on 

12 behalf of the provider, intentionally supplied in13 accurate information under this section, the eli14 gibility of such provider to receive funds under 

15 chapter 5 shall be terminated for a period of 

16 time that is not less than 2 years. 

17 ‘‘(B) SUBSTANTIAL VIOLATIONS.—Upon a 

18 determination, by an individual or entity speci19 fied in the criteria or procedures, that a pro20 vider of training services substantially violated 

21 any requirement under this title, the eligibility 

22 of such provider to receive funds under the pro23 gram involved may be terminated, or other ap24 propriate action may be taken. 
132 

•S 9 IS 

1 ‘‘(C) REPAYMENT.—A provider of training 

2 services whose eligibility is terminated under 

3 subparagraph (A) or (B) shall be liable for the 

4 repayment of funds received under chapter 5 

5 during a period of noncompliance described in 

6 such subparagraph. 

7 ‘‘(2) CONSTRUCTION.—Paragraph (1) shall be 

8 construed to provide remedies and penalties that 

9 supplement, but do not supplant, other civil and 

10 criminal remedies and penalties. 

11 ‘‘(f) AGREEMENTS WITH OTHER STATES.—States 

12 may enter into agreements, on a reciprocal basis, to per13 mit eligible providers of training services to accept career 

14 scholarship accounts provided in another State. 

15 ‘‘(g) OPPORTUNITY TO SUBMIT COMMENTS.—In es16 tablishing criteria, procedures, and information required 

17 under this section, the Governor shall provide an oppor18 tunity for interested members of the public to make rec19 ommendations and submit comments regarding such cri20 teria, procedures, and information. 

21 ‘‘(h) TRANSITION PERIOD FOR IMPLEMENTATION.— 

22 The requirements of this section shall be implemented not 

23 later than December 31, 2005. In order to facilitate early 

24 implementation of this section, the Governor may establish 

25 transition procedures under which providers eligible to 
133 

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1 provide training services under chapter 5 as such chapter 

2 was in effect on the day before the date of enactment of 

3 the Workforce Investment Act Amendments of 2005 may 

4 continue to be eligible to provide such services until De5 cember 31, 2005, or until such earlier date as the Gov6 ernor determines to be appropriate. 

7 ‘‘(i) ON-THE-JOB TRAINING OR CUSTOMIZED TRAIN8 ING EXCEPTION.— 

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

10 training or customized training shall not be subject 

11 to the requirements of subsections (a) through (h). 

12 ‘‘(2) COLLECTION AND DISSEMINATION OF IN13 FORMATION.—A one-stop operator in a local area 

14 shall collect such performance information from on15 the-job training and customized training providers 

16 as the Governor may require, determine whether the 

17 providers meet such performance criteria as the Gov18 ernor may require, and disseminate information 

19 identifying providers that meet the criteria as eligi20 ble providers, and the performance information, 

21 through the one-stop delivery system. Providers de22 termined to meet the criteria shall be considered to 

23 be identified as eligible providers of training serv24 ices.’’. 
134 

•S 9 IS 

1 SEC. 432H. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 

2 Section 123 (29 U.S.C. 2843) is amended to read as 

3 follows: 

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

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

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

7 area shall award grants or contracts on a competitive basis 

8 to providers of youth activities identified based on the cri9 teria in the State plan described in section 112 and shall 

10 conduct oversight with respect to such providers. 

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

12 or contracts on a sole-source basis if such board deter13 mines there is an insufficient number of eligible providers 

14 of youth activities in the local area involved (such as a 

15 rural area) for grants and contracts to be awarded on a 

16 competitive basis under subsection (a).’’. 

17 SEC. 432I. YOUTH ACTIVITIES. 

18 (a) STATE ALLOTMENTS.—Section 127 (29 U.S.C. 

19 2852) is amended— 

20 (1) in subsection (a)(1), by striking ‘‘oppor21 tunity’’ and inserting ‘‘challenge’’; and 

22 (2) by striking subsection (b) and inserting the 

23 following: 

24 ‘‘(b) ALLOTMENT AMONG STATES.— 

25 ‘‘(1) YOUTH ACTIVITIES.— 

26 ‘‘(A) YOUTH CHALLENGE GRANTS.— 
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•S 9 IS 

1 ‘‘(i) IN GENERAL.—For each fiscal 

2 year in which the amount appropriated 

3 under section 137(a) exceeds 

4 $1,000,000,000, the Secretary shall re5 serve a portion of the amount to provide 

6 youth challenge grants and other activities 

7 under section 169 (relating to youth chal8 lenge grants) and provide youth activities 

9 under section 167 (relating to migrant and 

10 seasonal farmworker programs). 

11 ‘‘(ii) PORTION.—The portion referred 

12 to in clause (i) shall equal, for a fiscal 

13 year— 

14 ‘‘(I) except as provided in sub15 clause (II), the difference obtained by 

16 subtracting $1,000,000,000 from the 

17 amount appropriated under section 

18 137(a) for the fiscal year; or 

19 ‘‘(II) for any fiscal year in which 

20 the amount is $1,250,000,000 or 

21 greater, $250,000,000. 

22 ‘‘(iii) YOUTH ACTIVITIES FOR FARM23 WORKERS.—The Secretary shall reserve 

24 the greater of $10,000,000 or 4 percent of 

25 the portion described in clause (i) for a fis-
136 

•S 9 IS 

1 cal year to provide youth activities under 

2 section 167. 

3 ‘‘(iv) NATIVE AMERICANS.—From the 

4 remainder of the amount appropriated 

5 under section 137(a) for each fiscal year 

6 the Secretary shall reserve not more than 

11 7 ⁄2 percent of such amount to provide 

8 youth activities under section 166 (relating 

9 to Native Americans). 

10 ‘‘(B) OUTLYING AREAS.— 

11 ‘‘(i) IN GENERAL.—From the amount 

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

13 each fiscal year the Secretary shall reserve 

not more than 1 14 ⁄4 of 1 percent of the 

15 amount appropriated under section 137(a) 

16 for the fiscal year to provide assistance to 

17 the outlying areas to carry out youth ac18 tivities and statewide workforce investment 

19 activities. 

20 ‘‘(ii) LIMITATION FOR FREELY ASSO21 CIATED STATES.— 

22 ‘‘(I) COMPETITIVE GRANTS.— 

23 The Secretary shall use funds de24 scribed in clause (i) to award grants 

25 to Guam, American Samoa, the Com-
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•S 9 IS 

1 monwealth of the Northern Mariana 

2 Islands, and the Freely Associated 

3 States to carry out youth activities 

4 and statewide workforce investment 

5 activities. 

6 ‘‘(II) AWARD BASIS.—The Sec7 retary shall award grants pursuant to 

8 subclause (I) on a competitive basis 

9 and pursuant to the recommendations 

10 of experts in the field of employment 

11 and training, working through the Pa12 cific Region Educational Laboratory 

13 in Honolulu, Hawaii. 

14 ‘‘(III) ASSISTANCE REQUIRE15 MENTS.—Any Freely Associated State 

16 that desires to receive assistance 

17 under this subparagraph shall submit 

18 an application to the Secretary and 

19 shall include in the application for as20 sistance— 

21 ‘‘(aa) information dem22 onstrating that the Freely Asso23 ciated State will meet all condi24 tions that apply to States under 

25 this title; 
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1 ‘‘(bb) an assurance that, 

2 notwithstanding any other provi3 sion of this title, the Freely Asso4 ciated State will use such assist5 ance only for the direct provision 

6 of services; and 

7 ‘‘(cc) such other information 

8 and assurances as the Secretary 

9 may require. 

10 ‘‘(IV) ADMINISTRATIVE COSTS.— 

11 The Secretary may provide not more 

12 than 5 percent of the funds made 

13 available for grants under subclause 

14 (I) to pay the administrative costs of 

15 the Pacific Region Educational Lab16 oratory in Honolulu, Hawaii, regard17 ing activities assisted under this 

18 clause. 

19 ‘‘(iii) ADDITIONAL REQUIREMENT.— 

20 The provisions of Public Law 95–134, per21 mitting the consolidation of grants by the 

22 outlying areas, shall not apply to assist23 ance provided to those areas, including the 

24 Freely Associated States, under this sub25 paragraph. 
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1 ‘‘(C) STATES.— 

2 ‘‘(i) IN GENERAL.—From the remain3 der of the amount appropriated under sec4 tion 137(a) for a fiscal year that exists 

5 after the Secretary determines the 

6 amounts to be reserved under subpara7 graphs (A) and (B), the Secretary shall 

8 allot to the States— 

9 ‘‘(I) an amount of the remainder 

10 that is less than or equal to the total 

11 amount that was allotted to States for 

12 fiscal year 2003 under section 

13 127(b)(1)(C) of this Act (as in effect 

14 on the day before the date of enact15 ment of the Workforce Investment Act 

16 Amendments of 2005), in accordance 

17 with the requirements of such section 

18 127(b)(1)(C); and 

19 ‘‘(II) the amount of the remain20 der, if any, in excess of the amount 

21 referred to in subclause (I), in accord22 ance with clause (ii). 

23 ‘‘(ii) FORMULA.—Subject to clauses 

24 (iii) and (iv), of the amount described in 

25 clause (i)(II)— 
140 

•S 9 IS 

‘‘(I) 331 1 ⁄3 percent shall be allot2 ted on the basis of the relative num3 ber of individuals in the civilian labor 

4 force who are ages 16 through 21 in 

5 each State, compared to the total 

6 number of individuals in the civilian 

7 labor force who are ages 16 through 

8 21 in all States; 

‘‘(II) 331 9 ⁄3 percent shall be allot10 ted on the basis of the relative num11 ber of unemployed individuals in each 

12 State, compared to the total number 

13 of unemployed individuals in all 

14 States; and 

‘‘(III) 331 15 ⁄3 percent shall be allot16 ted on the basis of the relative num17 ber of disadvantaged youth who are 

18 ages 16 through 21 in each State, 

19 compared to the total number of dis20 advantaged youth who are ages 16 

21 through 21 in all States. 

22 ‘‘(iii) MINIMUM AND MAXIMUM PER23 CENTAGES.— 

24 ‘‘(I) MINIMUM PERCENTAGE.— 

25 The Secretary shall ensure that no 
141 

•S 9 IS 

1 State shall receive an allotment per2 centage under this subparagraph for a 

3 fiscal year that is less than 90 percent 

4 of the allotment percentage of the 

5 State for the preceding fiscal year. 

6 ‘‘(II) MAXIMUM PERCENTAGE.— 

7 Subject to subclause (I), the Secretary 

8 shall ensure that no State shall re9 ceive an allotment percentage under 

10 this subparagraph for a fiscal year 

11 that is more than 130 percent of the 

12 allotment percentage of the State for 

13 the preceding fiscal year. 

14 ‘‘(iv) SMALL STATE MINIMUM ALLOT15 MENT.—Subject to clause (iii), the Sec16 retary shall ensure that no State shall re17 ceive an allotment under this subparagraph 

18 that is less than the total of— 

‘‘(I) 3 19 ⁄10 of 1 percent of 

20 $1,000,000,000 of the remainder de21 scribed in clause (i) for the fiscal 

22 year; and 

23 ‘‘(II) if the remainder described 

24 in clause (i) for the fiscal year exceeds 
142 

•S 9 IS 

$1,000,000,000, 2 1 ⁄5 of 1 percent of 

2 the excess. 

3 ‘‘(2) DEFINITIONS.—For the purposes of para4 graph (1): 

5 ‘‘(A) ALLOTMENT PERCENTAGE.—The 

6 term ‘allotment percentage’, used with respect 

7 to fiscal year 2006 or a subsequent fiscal year, 

8 means a percentage of the remainder described 

9 in paragraph (1)(C)(i) that is received by the 

10 State involved through an allotment made 

11 under this subsection for the fiscal year. The 

12 term, used with respect to fiscal year 2005, 

13 means the percentage of the amounts allotted 

14 to States under this chapter (as in effect on the 

15 day before the date of enactment of the Work16 force Investment Act Amendments of 2005) 

17 that is received by the State involved for fiscal 

18 year 2003. 

19 ‘‘(B) DISADVANTAGED YOUTH.—Subject to 

20 paragraph (3), the term ‘disadvantaged youth’ 

21 means an individual who is age 16 through 21 

22 who received an income, or is a member of a 

23 family that received a total family income, that, 

24 in relation to family size, does not exceed the 

25 higher of— 
143 

•S 9 IS 

1 ‘‘(i) the poverty line; or 

2 ‘‘(ii) 70 percent of the lower living 

3 standard income level. 

4 ‘‘(C) FREELY ASSOCIATED STATE.—The 

5 term ‘Freely Associated State’ means the Re6 public of the Marshall Islands, the Federated 

7 States of Micronesia, and the Republic of 

8 Palau. 

9 ‘‘(3) SPECIAL RULE.—For purposes of the for10 mula specified in paragraph (1)(C), the Secretary 

11 shall, as appropriate and to the extent practicable, 

12 exclude college students and members of the Armed 

13 Forces from the determination of the number of dis14 advantaged youth.’’. 

15 (b) REALLOTMENT.— 

16 (1) AMENDMENT.—Section 127(c) (29 U.S.C. 

17 2852(c)) is amended— 

18 (A) by striking paragraph (2) and insert19 ing the following: 

20 ‘‘(2) AMOUNT.—The amount available for real21 lotment for a program year is equal to the amount 

22 by which the unexpended balance at the end of the 

23 program year prior to the program year for which 

24 the determination is made exceeds 30 percent of the 

25 total amount of funds available to the State under 
144 

•S 9 IS 

1 this section during such prior program year (includ2 ing amounts allotted to the State in all prior pro3 gram years that remained available). For purposes 

4 of this paragraph, the unexpended balance is the 

5 amount that is the difference between— 

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

7 the State under this section during the program 

8 year prior to the program year for which the 

9 determination is made (including amounts allot10 ted to the State in all prior program years that 

11 remained available); and 

12 ‘‘(B) the accrued expenditures during such 

13 prior program year.’’; 

14 (B) in paragraph (3)— 

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

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

17 for which the determination is made’’; and 

18 (ii) by striking ‘‘such prior program 

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

20 (C) by striking paragraph (4) and insert21 ing the following: 

22 ‘‘(4) ELIGIBILITY.—For purposes of this sub23 section, an eligible State means a State that does 

24 not have an amount available for reallotment under 
145 

•S 9 IS 

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

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

3 (D) in paragraph (5), by striking ‘‘obliga4 tion’’ and inserting ‘‘accrued expenditure’’. 

5 (2) EFFECTIVE DATE.—The amendment made 

6 by paragraph (1) shall take effect for the program 

7 year that begins after the date of enactment of this 

8 Act. 

9 (c) WITHIN STATE ALLOCATIONS.— 

10 (1) RESERVATION FOR STATEWIDE ACTIVI11 TIES.—Section 128(a) (29 U.S.C. 2853(a)) is 

12 amended to read as follows: 

13 ‘‘(a) RESERVATIONS FOR STATEWIDE ACTIVITIES.— 

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

15 shall reserve not more than 15 percent of each of 

16 the amounts allotted to the State under section 

17 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of 

18 section 132(b) for a fiscal year for statewide work19 force investment activities. 

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

21 the reserved amounts were allotted under section 

22 127(b)(1)(C), or under paragraph (1)(B) or (2)(B) 

23 of section 132(b), the Governor may use the re24 served amounts to carry out statewide activities 

25 under section 129(b) or statewide employment and 
146 

•S 9 IS 

1 training activities, for adults or dislocated workers, 

2 under section 134(a).’’. 

3 (2) WITHIN STATE ALLOCATION.—Section 

4 128(b) (29 U.S.C. 2853(b)) is amended to read as 

5 follows: 

6 ‘‘(b) WITHIN STATE ALLOCATIONS.— 

7 ‘‘(1) IN GENERAL.—Of the amount allotted to 

8 the State under section 127(b)(1)(C) and not re9 served under subsection (a)(1)— 

10 ‘‘(A) a portion equal to not less than 80 

11 percent of such amount shall be allocated by 

12 the Governor to local areas in accordance with 

13 paragraph (2); and 

14 ‘‘(B) a portion equal to not more than 20 

15 percent of such amount may be allocated by the 

16 Governor to local areas in accordance with 

17 paragraph (3). 

18 ‘‘(2) ESTABLISHED FORMULA.— 

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

21 allocate— 

‘‘(i) 331 22 ⁄3 percent on the basis of the 

23 relative number of individuals in the civil24 ian labor force who are ages 16 through 21 

25 in each local area, compared to the total 
147 

•S 9 IS 

1 number of individuals in the civilian labor 

2 force who are ages 16 through 21 in all 

3 local areas in the State; 

‘‘(ii) 331 4 ⁄3 percent on the basis of the 

5 relative number of unemployed individuals 

6 in each local area, compared to the total 

7 number of unemployed individuals in all 

8 local areas in the State; and 

‘‘(iii) 331 9 ⁄3 percent on the basis of the 

10 relative number of disadvantaged youth 

11 who are ages 16 through 21 in each local 

12 area, compared to the total number of dis13 advantaged youth who are ages 16 through 

14 21 in all local areas in the State. 

15 ‘‘(B) MINIMUM AND MAXIMUM PERCENT16 AGES.— 

17 ‘‘(i) MINIMUM PERCENTAGE.—The 

18 Governor shall ensure that no local area 

19 shall receive an allocation percentage under 

20 this paragraph for a fiscal year that is less 

21 than 90 percent of the allocation percent22 age of the local area for the preceding fis23 cal year. 

24 ‘‘(ii) MAXIMUM PERCENTAGE.—Sub25 ject to clause (i), the Governor shall ensure 
148 

•S 9 IS 

1 that no local area shall receive an alloca2 tion percentage under this paragraph for a 

3 fiscal year that is more than 130 percent 

4 of the allocation percentage of the local 

5 area for the preceding fiscal year. 

6 ‘‘(C) DEFINITIONS.—In this paragraph: 

7 ‘‘(i) ALLOCATION PERCENTAGE.—The 

8 term ‘allocation percentage’, used with re9 spect to fiscal year 2006 or a subsequent 

10 fiscal year, means a percentage of the por11 tion described in paragraph (1)(A) that is 

12 received by the local area involved through 

13 an allocation made under this paragraph 

14 for the fiscal year. The term, used with re15 spect to fiscal year 2005, means the per16 centage of the amounts allocated to local 

17 areas under this chapter (as in effect on 

18 the day before the date of enactment of the 

19 Workforce Investment Act Amendments of 

20 2005) that is received by the local area in21 volved for fiscal year 2003. 

22 ‘‘(ii) DISADVANTAGED YOUTH.—The 

23 term ‘disadvantaged youth’ means an indi24 vidual who— 

25 ‘‘(I) is age 16 through 21; 
149 

•S 9 IS 

1 ‘‘(II) is not a college student or 

2 member of the Armed Forces; and 

3 ‘‘(III) received an income, or is a 

4 member of a family that received a 

5 total family income, that, in relation 

6 to family size, does not exceed the 

7 higher of— 

8 ‘‘(aa) the poverty line; or 

9 ‘‘(bb) 70 percent of the 

10 lower living standard income 

11 level. 

12 ‘‘(3) YOUTH DISCRETIONARY ALLOCATION.— 

13 The Governor may allocate the portion described in 

14 paragraph (1)(B) to local areas where there are a 

15 significant number of eligible youth, after consulta16 tion with the State board and local boards. 

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

18 ‘‘(A) IN GENERAL.—Of the amount allo19 cated to a local area under this subsection and 

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

21 10 percent of the amount may be used by the 

22 local board involved for the administrative costs 

23 of carrying out local workforce investment ac24 tivities under this chapter or chapter 5. 
150 

•S 9 IS 

1 ‘‘(B) USE OF FUNDS.—Funds made avail2 able for administrative costs under subpara3 graph (A) may be used for the administrative 

4 costs of any of the local workforce investment 

5 activities described in this chapter or chapter 5, 

6 regardless of whether the funds were allocated 

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

8 (3) REALLOCATION.— 

9 (A) AMENDMENT.—Section 128(c) (29 

10 U.S.C. 2853(c)) is amended— 

11 (i) in paragraph (1), by striking 

12 ‘‘paragraph (2)(A) or (3) of’’; 

13 (ii) by striking paragraph (2) and in14 serting the following: 

15 ‘‘(2) AMOUNT.—The amount available for re16 allocation for a program year is equal to the amount 

17 by which the unexpended balance at the end of the 

18 program year prior to the program year for which 

19 the determination is made exceeds 30 percent of the 

20 total amount of funds available to the local area 

21 under this section during such prior program year 

22 (including amounts allocated to the local area in all 

23 prior program years that remained available). For 

24 purposes of this paragraph, the unexpended balance 

25 is the amount that is the difference between— 
151 

•S 9 IS 

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

2 the local area under this section during the pro3 gram year prior to the program year for which 

4 the determination is made (including amounts 

5 allocated to the local area in all prior program 

6 years that remained available); and 

7 ‘‘(B) the accrued expenditures during such 

8 prior program year.’’; 

9 (iii) by amending paragraph (3)— 

10 (I) by striking ‘‘subsection 

11 (b)(3)’’ each place it appears and in12 serting ‘‘subsection (b)’’; 

13 (II) by striking ‘‘for the prior 

14 program year’’ the first place it ap15 pears and inserting ‘‘for the program 

16 year for which the determination is 

17 made’’; 

18 (III) by striking ‘‘such prior pro19 gram year’’ and inserting ‘‘such pro20 gram year’’; and 

21 (IV) by striking the last sen22 tence; and 

23 (iv) by striking paragraph (4) and in24 serting the following: 
152 

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1 ‘‘(4) ELIGIBILITY.—For purposes of this sub2 section, an eligible local area means a local area that 

3 does not have an amount available for reallocation 

4 under paragraph (2) for the program year for which 

5 the determination under paragraph (2) is made.’’. 

6 (B) EFFECTIVE DATE.—The amendments 

7 made by subparagraph (A) shall take effect for 

8 the later of— 

9 (i) the program year that begins after 

10 the date of enactment of this Act; or 

11 (ii) program year 2005. 

12 (d) YOUTH PARTICIPANT ELIGIBILITY.—Section 

13 129(a) (29 U.S.C. 2854(a)) is amended to read as follows: 

14 ‘‘(a) YOUTH PARTICIPANT ELIGIBILITY.— 

15 ‘‘(1) ELIGIBILITY.— 

16 ‘‘(A) IN GENERAL.—To be eligible to par17 ticipate in activities carried out under this 

18 chapter during any program year an individual 

19 shall, at the time the eligibility determination is 

20 made, be an out-of-school youth or an in-school 

21 youth. 

22 ‘‘(B) OUT-OF-SCHOOL YOUTH.—In this 

23 title the term ‘out-of-school youth’ means an in24 dividual who is— 
153 

•S 9 IS 

1 ‘‘(i) not younger than age 16 (subject 

2 to paragraph (3)) nor older than age 21; 

3 and 

4 ‘‘(ii) one of the following: 

5 ‘‘(I) A school dropout. 

6 ‘‘(II) A youth who is within the 

7 age for compulsory school attendance, 

8 but has not attended school for at 

9 least 1 school year calendar quarter. 

10 ‘‘(III) A recipient of a secondary 

11 school diploma or its equivalent who 

12 is— 

13 ‘‘(aa) deficient in basic 

14 skills, including limited English 

15 proficiency; 

16 ‘‘(bb) a low-income indi17 vidual; and 

18 ‘‘(cc) not attending any 

19 school. 

20 ‘‘(IV) Subject to the juvenile jus21 tice system or ordered by a court to 

22 an alternative school. 

23 ‘‘(V) A low-income individual who 

24 is pregnant or parenting and not at25 tending any school. 
154 

•S 9 IS 

1 ‘‘(VI) A youth who is not attend2 ing school or a youth attending an al3 ternative school, who is homeless, a 

4 runaway, a foster child, a child eligi5 ble for assistance under section 477 of 

6 the Social Security Act (42 U.S.C. 

7 677), or in an out-of-home placement. 

8 ‘‘(VII) A low-income individual 

9 who requires additional assistance to 

10 complete an educational program or 

11 to secure or hold employment. 

12 ‘‘(C) IN-SCHOOL YOUTH.—In this section 

13 the term ‘in-school youth’ means an individual 

14 who is— 

15 ‘‘(i) not younger than age 14 nor 

16 older than age 21; 

17 ‘‘(ii) a low-income individual; and 

18 ‘‘(iii) one or more of the following: 

19 ‘‘(I) Deficient in basic literacy 

20 skills, including limited English pro21 ficiency. 

22 ‘‘(II) Homeless, a runaway, a 

23 foster child, a child eligible for assist24 ance under section 477 of the Social 
155 

•S 9 IS 

1 Security Act (42 U.S.C. 677), or in 

2 an out-of-home placement. 

3 ‘‘(III) Pregnant or parenting. 

4 ‘‘(IV) An offender (other than an 

5 individual described in subparagraph 

6 (B)(ii)(IV)). 

7 ‘‘(V) An individual who requires 

8 additional assistance to complete an 

9 educational program or to secure or 

10 hold employment. 

11 ‘‘(2) EXCEPTION.—Not more than 5 percent of 

12 the individuals assisted under this section in each 

13 local area, in the case of individuals for whom low 

14 income is a requirement for eligibility under this sec15 tion, may be individuals who are not low income. 

16 ‘‘(3) LIMITATIONS ON ACTIVITIES FOR IN17 SCHOOL YOUTH.— 

18 ‘‘(A) IN GENERAL.—For any program 

19 year, not more than 60 percent of the funds 

20 available for statewide activities under sub21 section (b), and not more than 60 percent of 

22 funds available to local areas under subsection 

23 (c), may be used to provide activities for in24 school youth meeting the requirements of para25 graph (1)(B). 
156 

•S 9 IS 

1 ‘‘(B) EXCEPTION.—A State that receives a 

2 minimum allotment under section 127(b)(1) in 

3 accordance with section 127(b)(1)(C)(iv) or 

4 under section 132(b)(1) in accordance with sec5 tion 132(b)(1)(B)(iv)(II) may increase the per6 centage described in subparagraph (A) for a 

7 local area in the State, if— 

8 ‘‘(i) after an analysis of the eligible 

9 youth population in the local area, the 

10 State determines that the local area will be 

11 unable to use at least 40 percent of the 

12 funds available for activities under sub13 section (b) or (c) to serve out-of-school 

14 youth due to a low number of out-of-school 

15 youth; and 

16 ‘‘(ii)(I) the State submits to the Sec17 retary, for the local area, a request includ18 ing a proposed increased percentage for 

19 purposes of subparagraph (A), and the 

20 summary of the eligible youth population 

21 analysis; and 

22 ‘‘(II) the request is approved by the 

23 Secretary. 

24 ‘‘(4) CONSISTENCY WITH COMPULSORY SCHOOL

25 ATTENDANCE LAWS.—In providing assistance under 
157 

•S 9 IS 

1 this section to an individual who is required to at2 tend school under applicable State compulsory school 

3 attendance laws, the priority in providing such as4 sistance shall be for the individual to attend school 

5 regularly.’’. 

6 (e) STATEWIDE ACTIVITIES.—Section 129(b) (29 

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

8 ‘‘(b) STATEWIDE ACTIVITIES.— 

9 ‘‘(1) IN GENERAL.—Funds reserved by a Gov10 ernor for a State as described in sections 128(a) and 

11 133(a)(1) shall be used, regardless of whether the 

12 funds were allotted to the State under section 

13 127(b)(1)(C) or under paragraph (1)(B) or (2)(B) 

14 of section 132(b) for statewide activities, which may 

15 include— 

16 ‘‘(A) conducting— 

17 ‘‘(i) evaluations under section 136(e) 

18 of activities authorized under this chapter 

19 and chapter 5 in coordination with evalua20 tions carried out by the Secretary under 

21 section 172; 

22 ‘‘(ii) research; and 

23 ‘‘(iii) demonstration projects; 

24 ‘‘(B) providing incentive grants to local 

25 areas for regional cooperation among local 
158 

•S 9 IS 

1 boards (including local boards in a designated 

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

3 coordination of activities carried out under this 

4 title, and for performance by local areas as de5 scribed in section 136(i)(2); 

6 ‘‘(C) providing technical assistance and ca7 pacity building activities to local areas, one-stop 

8 operators, one-stop partners, and eligible pro9 viders, including the development and training 

10 of staff, the development of exemplary program 

11 activities, the provision of technical assistance 

12 to local areas that fail to meet local perform13 ance measures described in section 136(c), and 

14 the provision of technology to facilitate remote 

15 access to services provided through one-stop de16 livery systems; 

17 ‘‘(D) operating a fiscal and management 

18 accountability information system under section 

19 136(f); 

20 ‘‘(E) carrying out monitoring and over21 sight of activities carried out under this chapter 

22 and chapter 5, which may include a review com23 paring the services provided to male and female 

24 youth; 
159 

•S 9 IS 

1 ‘‘(F) providing additional assistance to 

2 local areas that have high concentrations of eli3 gible youth; 

4 ‘‘(G) supporting the development of alter5 native programs and other activities that en6 hance the choices available to eligible youth and 

7 encourage such youth to reenter secondary edu8 cation, enroll in postsecondary education and 

9 advanced training, and obtain career path em10 ployment; and 

11 ‘‘(H) supporting the provision of core serv12 ices described in section 134(d)(2) in the one13 stop delivery system in the State. 

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

15 the funds allotted to a State under section 

16 127(b)(1)(C) shall be used by the State for adminis17 trative activities carried out under this subsection or 

18 section 134(a). 

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

20 subsection may be used to develop or implement 

21 education curricula for school systems in the 

22 State.’’. 

23 (f) LOCAL ELEMENTS AND REQUIREMENTS.— 

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

25 U.S.C. 2854(c)(1)) is amended— 
160 

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1 (A) in the matter that precedes subpara2 graph (A), by striking ‘‘paragraph (2)(A) or 

3 (3), as appropriate, of’’; 

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

5 directly linked to 1 or more of the performance 

6 measures relating to this chapter under section 

7 136, and that’’ after ‘‘for each participant 

8 that’’; and 

9 (C) in subparagraph (C)— 

10 (i) by redesignating clauses (i) 

11 through (iv) as clauses (ii) through (v), re12 spectively; 

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

14 redesignated by clause (i)) the following: 

15 ‘‘(i) activities leading to the attain16 ment of a secondary school diploma or its 

17 equivalent, or another recognized creden18 tial;’’; 

19 (iii) in clause (ii) (as redesignated by 

20 clause (i)), by inserting ‘‘and advanced 

21 training’’ after ‘‘opportunities’’; 

22 (iv) in clause (iii) (as redesignated by 

23 clause (i))— 

24 (I) by inserting ‘‘instruction 

25 based on State academic content and 
161 

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1 student academic achievement stand2 ards established under section 1111 of 

3 the Elementary and Secondary Edu4 cation Act of 1965 (20 U.S.C. 6311)’’ 

5 after ‘‘academic’’; and 

6 (II) by inserting ‘‘that lead to the 

7 attainment of recognized credentials’’ 

8 after ‘‘learning’’; and 

9 (v) by striking clause (v) (as redesig10 nated by clause (i)) and inserting the fol11 lowing: 

12 ‘‘(v) effective connections to all em13 ployers, including small employers, in sec14 tors of the local and regional labor markets 

15 that are experiencing high growth in em16 ployment opportunities.’’. 

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

18 (29 U.S.C. 2854(c)(2)) is amended— 

19 (A) in subparagraph (A), by striking ‘‘sec20 ondary school, including dropout prevention 

21 strategies’’ and inserting ‘‘the requirements for 

22 a secondary school diploma or its recognized 

23 equivalent (including recognized alternative 

24 standards for individuals with disabilities) or 
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1 for another recognized credential, including 

2 dropout prevention strategies’’; 

3 (B) in subparagraph (B), by inserting ‘‘, 

4 with a priority on exposing youth to technology 

5 and nontraditional jobs’’ before the semicolon; 

6 (C) in subparagraph (F), by striking ‘‘dur7 ing nonschool hours’’; 

8 (D) in subparagraph (I), by striking ‘‘and’’ 

9 at the end; 

10 (E) in subparagraph (J), by striking the 

11 period at the end and inserting a semicolon; 

12 and 

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

14 ‘‘(K) on-the-job training opportunities; 

15 ‘‘(L) opportunities to acquire financial lit16 eracy skills; 

17 ‘‘(M) entrepreneurial skills training and 

18 microenterprise services; and 

19 ‘‘(N) information about average wages for 

20 a range of jobs available in the local area, in21 cluding technology jobs.’’. 

22 (3) ADDITIONAL REQUIREMENTS.—Section 

23 129(c)(3)(A) (29 U.S.C. 2854(c)(3)(A)) is amended 

24 in the matter preceding clause (i) by striking ‘‘or ap-
163 

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1 plicant who meets the minimum income criteria to 

2 be considered an eligible youth’’. 

3 (4) PRIORITY AND EXCEPTIONS.—Section 

4 129(c) (29 U.S.C. 2854(c)) is amended by striking 

5 paragraphs (4) and (5). 

6 (5) PROHIBITIONS AND LINKAGES.—Section 

7 129(c) (29 U.S.C. 2854(c)), as amended by para8 graph (4), is further amended— 

9 (A) by redesignating paragraphs (6), (7), 

10 and (8) as paragraphs (4), (5), and (6), respec11 tively; 

12 (B) in paragraph (4) (as redesignated by 

13 subparagraph (A))— 

14 (i) by striking subparagraph (B); and 

15 (ii) by redesignating subparagraph 

16 (C) as subparagraph (B); and 

17 (C) in paragraph (5) (as redesignated by 

18 subparagraph (A)), by striking ‘‘youth councils’’ 

19 and inserting ‘‘local boards’’. 

20 SEC. 432J. ADULT AND DISLOCATED WORKER EMPLOY21 MENT AND TRAINING ACTIVITIES. 

22 (a) STATE ALLOTMENTS.— 

23 (1) RESERVATIONS.—Section 132(a)(2)(A) (29 

24 U.S.C. 2862 (a)(2)(A)) is amended by striking ‘‘na25 tional emergency grants, other than under sub-
164 

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1 section (a)(4), (f), and (g)’’ and inserting ‘‘national 

2 dislocated worker grants, other than under para3 graph (4) or (5) of subsection (a), subsection (e), 

4 and subsection (f)’’. 

5 (2) ALLOTMENT AMONG STATES.—Section 

6 132(b) (29 U.S.C. 2862(b)) is amended— 

7 (A) in paragraph (1)(A)(ii), by striking 

8 ‘‘section 127(b)(1)(B)’’ and all that follows and 

9 inserting ‘‘section 127(b)(1)(B).’’; 

10 (B) by striking paragraph (1)(B)(ii) and 

11 inserting the following: 

12 ‘‘(ii) FORMULA.—Subject to clauses 

13 (iii) and (iv), of the remainder— 

14 ‘‘(I) 40 percent shall be allotted 

15 on the basis of the relative number of 

16 unemployed individuals in areas of 

17 substantial unemployment in each 

18 State, compared to the total number 

19 of unemployed individuals in areas of 

20 substantial unemployment in all 

21 States; 

22 ‘‘(II) 25 percent shall be allotted 

23 on the basis of the relative number of 

24 individuals in the civilian labor force 

25 in each State, compared to the total 
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1 number of such individuals in all 

2 States; and 

3 ‘‘(III) 35 percent shall be allotted 

4 on the basis of the relative number of 

5 disadvantaged adults in each State, 

6 compared to the total number of dis7 advantaged adults in all States, except 

8 as described in clause (iii).’’; 

9 (C) in paragraph (1)(B)— 

10 (i) in clause (iii), by striking ‘‘section 

11 116(a)(2)(B)’’ and inserting ‘‘section 

12 116(a)(2)(A)(iii)’’; 

13 (ii) in clause (iv)— 

14 (I) in subclause (I), by striking 

15 ‘‘Subject to subclause (IV), the’’ and 

16 inserting ‘‘The’’; 

17 (II) in subclause (II), by striking 

18 ‘‘subclauses (I), (III), and (IV)’’ and 

19 inserting ‘‘subclauses (I) and (III)’’; 

20 and 

21 (III) by striking subclause (IV); 

22 and 

23 (iii) in clause (v), by striking sub24 clause (VI); and 
166 

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1 (D) in paragraph (2)(A)(ii), by striking 

2 ‘‘section 127(b)(1)(B)’’ and all that follows and 

3 inserting ‘‘section 127(b)(1)(B).’’. 

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

5 2862(c)) is amended— 

6 (A) by striking paragraph (2) and insert7 ing the following: 

8 ‘‘(2) AMOUNT.—The amount available for real9 lotment for a program year for programs funded 

10 under subsection (b)(1)(B) (relating to adult em11 ployment and training) and subsection (b)(2)(B) (re12 lating to dislocated worker employment and train13 ing), respectively, is equal to the amount by which 

14 the unexpended balance at the end of the program 

15 year prior to the program year for which the deter16 mination is made exceeds 30 percent of the total 

17 amount of funds available to the State under sub18 section (b)(1)(B) or (b)(2)(B), respectively, during 

19 such prior program year (including amounts allotted 

20 to the State in all prior program years under such 

21 provisions that remained available). For purposes of 

22 this paragraph, the unexpended balance is the 

23 amount that is the difference between— 

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

25 the State under subsection (b)(1)(B) or 
167 

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1 (b)(2)(B), respectively, during the program year 

2 prior to the program year for which the deter3 mination is made (including amounts allotted to 

4 the State in all prior program years under such 

5 provisions that remained available); and 

6 ‘‘(B) the accrued expenditures from such 

7 total amount of funds available under sub8 section (b)(1)(B) or (b)(2)(B), respectively, 

9 during such prior program year.’’; 

10 (B) in paragraph (3)— 

11 (i) by striking ‘‘under this section for 

12 such activities for the prior program year’’ 

13 and inserting ‘‘under subsection (b)(1)(B) 

14 or (b)(2)(B), as appropriate, for the pro15 gram year for which the determination is 

16 made’’; and 

17 (ii) by striking ‘‘under this subsection 

18 for such activities for such prior program 

19 year’’ and inserting ‘‘under subsection 

20 (b)(1)(B) or (b)(2)(B), as appropriate, for 

21 such program year’’; 

22 (C) by striking paragraph (4) and insert23 ing the following: 

24 ‘‘(4) ELIGIBILITY.—For purposes of this sub25 section, an eligible State means— 
168 

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1 ‘‘(A) with respect to funds allotted under 

2 subsection (b)(1)(B), a State that does not have 

3 an amount of such funds available for reallot4 ment under paragraph (2) for the program year 

5 for which the determination under paragraph 

6 (2) is made; and 

7 ‘‘(B) with respect to funds allotted under 

8 subsection (b)(2)(B), a State that does not have 

9 an amount of such funds available for reallot10 ment under paragraph (2) for the program year 

11 for which the determination under paragraph 

12 (2) is made.’’; and 

13 (D) in paragraph (5), by striking ‘‘obliga14 tion’’ and inserting ‘‘accrued expenditure’’. 

15 (4) EFFECTIVE DATE.—The amendments made 

16 by paragraph (3) shall take effect for the later of— 

17 (A) the program year that begins after the 

18 date of enactment of this Act; or 

19 (B) program year 2005. 

20 (b) WITHIN STATE ALLOCATIONS.— 

21 (1) ALLOCATION.—Section 133(b)(2)(A)(i) (29 

22 U.S.C. 2863(b)(2)(A)(i)) is amended— 

(A) in subclause (I), by striking ‘‘331 23 ⁄3

24 percent’’ and inserting ‘‘40 percent’’; 
169 

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(B) in subclause (II), by striking ‘‘331 1 ⁄3

2 percent’’ and inserting ‘‘25 percent’’; and 

(C) in subclause (III), by striking ‘‘331 3 ⁄3

4 percent’’ and inserting ‘‘35 percent’’. 

5 (2) REQUIREMENTS.—Clauses (i) and (ii) of 

6 section 133(b)(5)(B) (29 U.S.C. 2863(b)(5)(B)) are 

7 amended by striking ‘‘section 134(c)’’ and inserting 

8 ‘‘section 121(e)’’. 

9 (3) REALLOCATION.—Section 133(c) (29 

10 U.S.C. 2863(c)) is amended— 

11 (A) in paragraph (1), by inserting ‘‘, and 

12 under subsection (b)(2)(B) for dislocated work13 er employment and training activities,’’ after 

14 ‘‘activities’’; 

15 (B) by striking paragraph (2) and insert16 ing the following: 

17 ‘‘(2) AMOUNT.—The amount available for re18 allocation for a program year for programs funded 

19 under paragraphs (2)(A) and (3) of subsection (b) 

20 (relating to adult employment and training) and 

21 subsection (b)(2)(B) (relating to dislocated worker 

22 employment and training), respectively, is equal to 

23 the amount by which the unexpended balance at the 

24 end of the program year prior to the program year 

25 for which the determination is made exceeds 30 per-
170 

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1 cent of the total amount of funds available to the 

2 local area under paragraphs (2)(A) and (3) of sub3 section (b), or subsection (b)(2)(B), respectively, 

4 during such prior program year (including amounts 

5 allocated to the local area in all prior program years 

6 under such provisions that remained available). For 

7 purposes of this paragraph, the unexpended balance 

8 is the amount that is the difference between— 

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

10 the local area under paragraphs (2)(A) and (3) 

11 of subsection (b), or subsection (b)(2)(B), re12 spectively, during the program year prior to the 

13 program year for which the determination is 

14 made (including amounts allotted to the local 

15 area in all prior program years under such pro16 visions that remained available); and 

17 ‘‘(B) the accrued expenditures from such 

18 total amount of funds available under para19 graphs (2)(A) and (3) of subsection (b), or sub20 section (b)(2)(B), respectively, during such 

21 prior program year.’’; 

22 (C) by striking paragraph (3) and insert23 ing the following: 

24 ‘‘(3) REALLOCATION.—In making reallocations 

25 to eligible local areas of amounts available pursuant 
171 

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1 to paragraph (2) for a program year, the Governor 

2 shall allocate to each eligible local area within the 

3 State— 

4 ‘‘(A) with respect to amounts that are 

5 available for reallocation under paragraph (2) 

6 that were allocated under paragraphs (2)(A) or 

7 (3) of subsection (b), an amount based on the 

8 relative amount allocated to such local area 

9 under paragraphs (2)(A) or (3) of subsection 

10 (b), as appropriate, for the program year for 

11 which the determination is made, as compared 

12 to the total amount allocated to all eligible local 

13 areas under paragraphs (2)(A) or (3) of sub14 section (b), as appropriate, of such program 

15 year; and 

16 ‘‘(B) with respect to amounts that are 

17 available for reallocation under paragraph (2) 

18 that were allocated under subsection (b)(2)(B), 

19 an amount based on the relative amount allo20 cated to such local area under subsection 

21 (b)(2)(B) for the program year for which the 

22 determination is made, as compared to the total 

23 amount allocated to all eligible local areas 

24 under subsection (b)(2)(B) for such program 

25 year.’’; and 
172 

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1 (D) by striking paragraph (4) and insert2 ing the following: 

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

5 ‘‘(A) with respect to funds allocated under 

6 paragraphs (2)(A) or (3) of subsection (b), a 

7 local area that does not have an amount of such 

8 funds available for reallocation under paragraph 

9 (2) for the program year for which the deter10 mination under paragraph (2) is made; and 

11 ‘‘(B) with respect to funds allocated under 

12 subsection (b)(2)(B), a local area that does not 

13 have an amount of such funds available for re14 allocation under paragraph (2) for the program 

15 year for which the determination under para16 graph (2) is made.’’. 

17 (4) EFFECTIVE DATE.—The amendments made 

18 by paragraph (3) shall take effect for the later of— 

19 (A) the program year that begins after the 

20 date of enactment of this Act; or 

21 (B) program year 2005. 

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

24 (1) STATEWIDE EMPLOYMENT AND TRAINING

25 ACTIVITIES.— 
173 

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1 (A) STATEWIDE RAPID RESPONSE ACTIVI2 TIES.—Section 134(a)(2)(A) (29 U.S.C. 

3 2864(a)(2)(A)) is amended to read as follows: 

4 ‘‘(A) STATEWIDE RAPID RESPONSE ACTIVI5 TIES.— 

6 ‘‘(i) IN GENERAL.—A State shall 

7 carry out statewide rapid response activi8 ties using funds reserved by a Governor for 

9 a State under section 133(a)(2). Such ac10 tivities shall include— 

11 ‘‘(I) provision of rapid response 

12 activities, carried out in local areas by 

13 the State or by an entity designated 

14 by the State, working in conjunction 

15 with the local boards and the chief 

16 elected officials for the local areas; 

17 and 

18 ‘‘(II) provision of additional as19 sistance to local areas that experience 

20 disasters, mass layoffs, or plant clos21 ings, or other events that precipitate 

22 substantial increases in the number of 

23 unemployed individuals, carried out in 

24 local areas by the State, working in 

25 conjunction with the local boards and 
174 

•S 9 IS 

1 the chief elected officials for the local 

2 areas. 

3 ‘‘(ii) USE OF UNEXPENDED FUNDS.— 

4 Funds reserved under section 133(a)(2) to 

5 carry out this subparagraph that remain 

6 unexpended after the first program year 

7 for which such funds were allotted may be 

8 used by the Governor to carry out state9 wide activities authorized under subpara10 graph (B) and paragraph (3)(A) in addi11 tion to activities under this subpara12 graph.’’. 

13 (B) STATEWIDE EMPLOYMENT AND TRAIN14 ING ACTIVITIES.—Section 134(a)(2) (29 U.S.C. 

15 2864(a)(2)) is amended by striking subpara16 graph (B) and inserting the following: 

17 ‘‘(B) STATEWIDE EMPLOYMENT AND

18 TRAINING ACTIVITIES.—Funds reserved by a 

19 Governor for a State under sections 128(a)(1) 

20 and 133(a)(1) and not used under paragraph 

21 (1)(A) (regardless of whether the funds were al22 lotted to the States under section 127(b)(1)(C) 

23 or paragraphs (1)(B) or (2)(B) of section 

24 132(b)) shall be used for statewide employment 

25 and training activities, including— 
175 

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1 ‘‘(i) disseminating— 

2 ‘‘(I) the State list of eligible pro3 viders of training services, including 

4 eligible providers of nontraditional 

5 training services; 

6 ‘‘(II) information identifying eli7 gible providers of on-the-job training 

8 and customized training; 

9 ‘‘(III) performance information 

10 and program cost information, as de11 scribed in subsections (d) and (i) of 

12 section 122; and 

13 ‘‘(IV) information on physical 

14 and programmatic accessibility for in15 dividuals with disabilities; 

16 ‘‘(ii) conducting evaluations under 

17 section 136(e) of activities authorized 

18 under this chapter and chapter 5 in coordi19 nation with evaluations carried out by the 

20 Secretary under section 172; 

21 ‘‘(iii) providing incentive grants to 

22 local areas in recognition of exceptional 

23 achievement relating to— 

24 ‘‘(I) regional cooperation among 

25 local boards (including local boards in 
176 

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1 a designated region as described in 

2 section 116(c)); 

3 ‘‘(II) expanded local coordination 

4 of programs and activities carried out 

5 as part of a comprehensive workforce 

6 investment system, including— 

7 ‘‘(aa) employment services 

8 under the Wagner-Peyser Act 

9 (29 U.S.C. 49 et seq.) and core 

10 activities under this title; and 

11 ‘‘(bb) one-stop partner pro12 grams described in section 121; 

13 ‘‘(III) performance by local areas 

14 as described in section 136(i)(2); and 

15 ‘‘(IV) providing expanded access 

16 to education and training services, es17 pecially through increased leveraging 

18 of resources other than those provided 

19 through programs under this title; 

20 ‘‘(iv) developing strategies for ensur21 ing that activities carried out under this 

22 section are placing men and women in 

23 jobs, education, and training that lead to 

24 comparable pay; 
177 

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1 ‘‘(v) providing technical assistance 

2 and capacity building to local areas, one3 stop operators, one-stop partners, and eli4 gible providers, including the development 

5 and training of staff, the development of 

6 exemplary program activities, and the pro7 vision of technical assistance to local areas 

8 that fail to meet local performance meas9 ures described in section 136(c), which 

10 may include the development and training 

11 of staff to provide opportunities for hard12 to-serve populations to enter high-wage, 

13 high-skilled, and nontraditional occupa14 tions; 

15 ‘‘(vi) operating a fiscal and manage16 ment accountability system under section 

17 136(f); and 

18 ‘‘(vii) carrying out monitoring and 

19 oversight of activities carried out under 

20 this chapter and chapter 4.’’. 

21 (C) ALLOWABLE STATEWIDE EMPLOYMENT

22 AND TRAINING ACTIVITIES.—Section 

23 134(a)(3)(A) (29 U.S.C. 2864(a)(3)(A) is 

24 amended to read as follows: 
178 

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1 ‘‘(A) IN GENERAL.—Funds reserved by a 

2 Governor for a State under sections 128(a)(1) 

3 and 133(a)(1) and not used under paragraph 

4 (1)(A) or (2)(B) (regardless of whether the 

5 funds were allotted to the State under section 

6 127(b)(1)(C) or paragraph (1)(B) or (2)(B) of 

7 section 132(b)) may be used to carry out addi8 tional statewide employment and training activi9 ties, which may include— 

10 ‘‘(i) implementing innovative pro11 grams and strategies designed to meet the 

12 needs of all businesses in the State, includ13 ing small businesses, which may include in14 cumbent worker training programs, sec15 toral and industry cluster strategies and 

16 partnerships, including regional skills alli17 ances, career ladder programs, micro-en18 terprise and entrepreneurial training and 

19 support programs, utilization of effective 

20 business intermediaries, activities to im21 prove linkages between the one-stop deliv22 ery systems in the State and all employers 

23 (including small employers) in the State, 

24 and other business services and strategies 

25 that better engage employers in workforce 
179 

•S 9 IS 

1 investment activities and make the work2 force investment system more relevant to 

3 the needs of State and local businesses, 

4 consistent with the objectives of this title; 

5 ‘‘(ii) developing strategies for effec6 tively serving hard-to-serve populations 

7 and for coordinating programs and services 

8 among one-stop partners; 

9 ‘‘(iii) implementing innovative pro10 grams for displaced homemakers, which for 

11 purposes of this clause may include an in12 dividual who is receiving public assistance 

13 and is within 2 years of exhausting lifetime 

14 eligibility under part A of title IV of the 

15 Social Security Act (42 U.S.C. 601 et 

16 seq.); 

17 ‘‘(iv) implementing programs to in18 crease the number of individuals training 

19 for and placed in nontraditional employ20 ment; 

21 ‘‘(v) carrying out activities to facili22 tate remote access to services, including 

23 training services described in subsection 

24 (d)(4), provided through a one-stop deliv-
180 

•S 9 IS 

1 ery system, including facilitating access 

2 through the use of technology; 

3 ‘‘(vi) supporting the provision of core 

4 services described in subsection (d)(2) in 

5 the one-stop delivery system in the State; 

6 ‘‘(vii) coordinating with the child wel7 fare system to facilitate services for chil8 dren in foster care and those who are eligi9 ble for assistance under section 477 of the 

10 Social Security Act (42 U.S.C. 677); 

11 ‘‘(viii) activities— 

12 ‘‘(I) to improve coordination be13 tween workforce investment activities 

14 carried out within the State involved 

15 and economic development activities; 

16 ‘‘(II) to improve coordination be17 tween employment and training assist18 ance, child support services, and as19 sistance provided by State and local 

20 agencies carrying out part D of title 

21 IV of the Social Security Act (42 

22 U.S.C. 651 et seq.); 

23 ‘‘(III) to improve coordination 

24 between employment and training as25 sistance and cooperative extension 
181 

•S 9 IS 

1 programs carried out by the Depart2 ment of Agriculture; 

3 ‘‘(IV) to improve coordination be4 tween employment and training assist5 ance and programs carried out in the 

6 local area for individuals with disabil7 ities, including programs carried out 

8 by State agencies relating to mental 

9 retardation and developmental disabil10 ities, Statewide Independent Living 

11 Councils established under section 

12 705 of the Rehabilitation Act of 1973 

13 (29 U.S.C. 796d), and centers for 

14 independent living defined in section 

15 702 of the Rehabilitation Act of 1973 

16 (29 U.S.C. 796a); 

17 ‘‘(V) to develop and disseminate 

18 workforce and labor market informa19 tion; and 

20 ‘‘(VI) to improve coordination 

21 with the corrections system to facili22 tate provision of training services and 

23 employment opportunities that will as24 sist ex-offenders in reentering the 

25 workforce; 
182 

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1 ‘‘(ix) conducting— 

2 ‘‘(I) research; and 

3 ‘‘(II) demonstration projects; and 

4 ‘‘(x) adopting, calculating, or commis5 sioning a minimum self-sufficiency stand6 ard that specifies the income needs of fam7 ilies, by family size, the number and ages 

8 of children in the family, and sub-State 

9 geographical considerations.’’. 

10 (2) REQUIRED LOCAL EMPLOYMENT AND

11 TRAINING ACTIVITIES.— 

12 (A) ALLOCATED FUNDS.—Section 

13 134(d)(1)(A) (29 U.S.C. 2864(d)(1)(A)) is 

14 amended— 

15 (i) in clause (i), by striking ‘‘described 

16 in subsection (c)’’; 

17 (ii) in clause (iii), by striking ‘‘and’’ 

18 at the end; 

19 (iii) in clause (iv), by striking the pe20 riod and inserting a semicolon; and 

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

23 ‘‘(v) to designate a dedicated business 

24 liaison in the local area who may be funded 

25 with funds provided under this title or 
183 

•S 9 IS 

1 from other sources to establish and develop 

2 relationships and networks with large and 

3 small employers and their intermediaries; 

4 and 

5 ‘‘(vi) in order to avoid duplication of 

6 services and enhance coordination of serv7 ices, to require the colocation of employ8 ment services provided under the Wagner9 Peyser Act (29 U.S.C. 49 et seq.) at the 

10 comprehensive one-stop centers.’’. 

11 (B) CORE SERVICES.—Section 134(d)(2) 

12 (29 U.S.C. 2864(d)(2)) is amended— 

13 (i) in the matter preceding subpara14 graph (A), by striking ‘‘paragraph (1)(A)’’ 

15 and inserting ‘‘paragraph (1)’’; 

16 (ii) by striking subparagraph (D) and 

17 inserting the following: 

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

19 ‘‘(i) job search and placement assist20 ance and, in appropriate cases, career 

21 counseling, including— 

22 ‘‘(I) exposure to high wage, high 

23 skill jobs; and 

24 ‘‘(II) nontraditional employment; 

25 and 
184 

•S 9 IS 

1 ‘‘(ii) appropriate recruitment and 

2 other business services for all employers, 

3 including small employers, in the local 

4 area, which may include services described 

5 in this subsection, including information 

6 and referral to specialized business services 

7 not traditionally offered through the one8 stop delivery system;’’; 

9 (iii) in subparagraph (E)(iii)— 

10 (I) by inserting ‘‘, career lad11 ders,’’ after ‘‘earnings’’; and 

12 (II) by striking ‘‘and’’ at the end; 

13 (iv) in subparagraph (F)— 

14 (I) by striking ‘‘and program cost 

15 information’’; and 

16 (II) by striking ‘‘described in sec17 tion 123’’; 

18 (v) by striking subparagraph (H) and 

19 inserting the following: 

20 ‘‘(H) provision of accurate information, in 

21 formats that are usable and understandable to 

22 all one-stop center customers, relating to the 

23 availability of supportive services or assistance, 

24 including child care, child support, medical or 

25 child health assistance under title XIX or XXI 
185 

•S 9 IS 

1 of the Social Security Act (42 U.S.C. 1396 et 

2 seq. and 1397aa et seq.), benefits under the 

3 Food Stamp Act of 1977 (7 U.S.C. 2011 et 

4 seq.), the earned income tax credit under sec5 tion 32 of the Internal Revenue Code of 1986, 

6 and assistance under a State program funded 

7 under part A of title IV of the Social Security 

8 Act (42 U.S.C. 601 et seq.) and other sup9 portive services and transportation provided 

10 through funds made available under such part, 

11 available in the local area, and referral to such 

12 services or assistance as appropriate;’’; and 

13 (vi) in subparagraph (J), by striking 

14 ‘‘for—’’ and all that follows through ‘‘(ii) 

15 programs’’ and inserting ‘‘for programs’’. 

16 (C) INTENSIVE SERVICES.—Section 

17 134(d)(3) (29 U.S.C. 2864(d)(3)) is amended— 

18 (i) by striking subparagraph (A) and 

19 inserting the following: 

20 ‘‘(A) IN GENERAL.— 

21 ‘‘(i) ELIGIBILITY.—Except as pro22 vided in clause (ii), funds allocated to a 

23 local area for adults under paragraph 

24 (2)(A) or (3), as appropriate, of section 

25 133(b), and funds allocated to the local 
186 

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1 area for dislocated workers under section 

2 133(b)(2)(B), shall be used to provide in3 tensive services to adults and dislocated 

4 workers, respectively— 

5 ‘‘(I) who are unemployed and 

6 who, after an interview, evaluation, or 

7 assessment, have been determined by 

8 a one-stop operator or one-stop part9 ner to be— 

10 ‘‘(aa) unlikely or unable to 

11 obtain employment, that leads to 

12 self-sufficiency or wages com13 parable to or higher than pre14 vious employment, through core 

15 services described in paragraph 

16 (2); and 

17 ‘‘(bb) in need of intensive 

18 services to obtain employment 

19 that leads to self-sufficiency or 

20 wages comparable to or higher 

21 than previous employment; or 

22 ‘‘(II) who are employed, but who, 

23 after an interview, evaluation, or as24 sessment are determined by a one25 stop operator or one-stop partner to 
187 

•S 9 IS 

1 be in need of intensive services to ob2 tain or retain employment that leads 

3 to self-sufficiency. 

4 ‘‘(ii) SPECIAL RULE.—A new inter5 view, evaluation, or assessment of a partic6 ipant is not required under clause (i) if the 

7 one-stop operator or one-stop partner de8 termines that it is appropriate to use a re9 cent assessment of the participant con10 ducted pursuant to another education or 

11 training program.’’; and 

12 (ii) in subparagraph (C)— 

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

14 participants seeking training services 

15 under paragraph (4)’’; and 

16 (II) by adding at the end the fol17 lowing: 

18 ‘‘(vii) Internships and work experi19 ence. 

20 ‘‘(viii) Literacy activities relating to 

21 basic work readiness, and financial literacy 

22 activities. 

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

24 and relocation assistance. 
188 

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1 ‘‘(x) English language acquisition and 

2 integrated training programs.’’. 

3 (D) TRAINING SERVICES.—Section 

4 134(d)(4) (29 U.S.C. 2864(d)(4)) is amended— 

5 (i) by striking subparagraph (A) and 

6 inserting the following: 

7 ‘‘(A) IN GENERAL.— 

8 ‘‘(i) ELIGIBILITY.—Except as pro9 vided in clause (ii), funds allocated to a 

10 local area for adults under paragraph 

11 (2)(A) or (3), as appropriate, of section 

12 133(b), and funds allocated to the local 

13 area for dislocated workers under section 

14 133(b)(2)(B), shall be used to provide 

15 training services to adults and dislocated 

16 workers, respectively— 

17 ‘‘(I) who, after an interview, eval18 uation, or assessment, and case man19 agement, have been determined by a 

20 one-stop operator or one-stop partner, 

21 as appropriate, to— 

22 ‘‘(aa) be unlikely or unable 

23 to obtain or retain employment, 

24 that leads to self-sufficiency or 

25 wages comparable to or higher 
189 

•S 9 IS 

1 than previous employment, 

2 through the intensive services de3 scribed in paragraph (3); 

4 ‘‘(bb) be in need of training 

5 services to obtain or retain em6 ployment that leads to self-suffi7 ciency or wages comparable to or 

8 higher than previous employ9 ment; and 

10 ‘‘(cc) have the skills and 

11 qualifications to successfully par12 ticipate in the selected program 

13 of training services; 

14 ‘‘(II) who select programs of 

15 training services that are directly 

16 linked to the employment opportuni17 ties in the local area or region in18 volved or in another area to which the 

19 adults or dislocated workers are will20 ing to commute or relocate; 

21 ‘‘(III) who meet the requirements 

22 of subparagraph (B); and 

23 ‘‘(IV) who are determined to be 

24 eligible in accordance with the priority 
190 

•S 9 IS 

1 system in effect under subparagraph 

2 (E). 

3 ‘‘(ii) SPECIAL RULE.—A new inter4 view, evaluation, or assessment of a partic5 ipant is not required under clause (i) if the 

6 one-stop operator or one-stop partner de7 termines that it is appropriate to use a re8 cent assessment of the participant con9 ducted pursuant to another education or 

10 training program.’’; 

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

15 and except’’; 

16 (iii) in subparagraph (D)— 

17 (I) in clause (viii), by striking 

18 ‘‘and’’ after the semicolon; 

19 (II) in clause (ix), by striking the 

20 period and inserting ‘‘; and’’; and 

21 (III) by adding at the end the 

22 following: 

23 ‘‘(x) English language acquisition and 

24 integrated training programs.’’; 

25 (iv) in subparagraph (F)— 
191 

•S 9 IS 

1 (I) in clause (ii), by striking ‘‘re2 ferred to in subsection (c), shall make 

3 available—’’ and all that follows and 

4 inserting ‘‘shall make available a list 

5 of eligible providers of training serv6 ices, and accompanying information, 

7 in accordance with section 122(d).’’; 

8 (II) in the heading of clause (iii), 

9 by striking ‘‘INDIVIDUAL TRAINING

10 ACCOUNTS’’ and inserting ‘‘CAREER

11 SCHOLARSHIP ACCOUNTS’’; 

12 (III) in clause (iii)— 

13 (aa) by striking ‘‘identifying 

14 information’’ and inserting ‘‘ac15 companying information’’; 

16 (bb) by striking ‘‘clause 

17 (ii)(I)’’ and inserting ‘‘clause 

18 (ii)’’; and 

19 (cc) by striking ‘‘individual 

20 training account’’ and inserting 

21 ‘‘career scholarship account’’; 

22 and 

23 (IV) by adding at the end the fol24 lowing: 
192 

•S 9 IS 

1 ‘‘(iv) COORDINATION.—Each local 

2 board may, through one-stop centers, co3 ordinate career scholarship accounts with 

4 other Federal, State, local, or private job 

5 training programs or sources to assist the 

6 individual in obtaining training services.’’; 

7 and 

8 (v) in subparagraph (G)— 

9 (I) in the subparagraph heading, 

10 by striking ‘‘INDIVIDUAL TRAINING

11 ACCOUNTS’’ and inserting ‘‘CAREER

12 SCHOLARSHIP ACCOUNTS’’; 

13 (II) in clause (i), by striking ‘‘in14 dividual training accounts’’ and in15 serting ‘‘career scholarship accounts’’; 

16 (III) in clause (ii)— 

17 (aa) by striking ‘‘individual 

18 training account’’ and inserting 

19 ‘‘career scholarship account’’; 

20 (bb) in subclause (II), by 

21 striking ‘‘individual training ac22 counts’’ and inserting ‘‘career 

23 scholarship accounts’’; 

24 (cc) in subclause (II) by 

25 striking ‘‘or’’ after the semicolon; 
193 

•S 9 IS 

1 (dd) in subclause (III), by 

2 striking ‘‘special participant pop3 ulations that face multiple bar4 riers to employment’’ and insert5 ing ‘‘hard-to-serve populations’’; 

6 (ee) in subclause (III), by 

7 striking the period and inserting 

8 ’‘‘; or’’; and 

9 (ff) by adding at the end the 

10 following: 

11 ‘‘(IV) the local board determines 

12 that it would be most appropriate to 

13 award a contract to an institution of 

14 higher education in order to facilitate 

15 the training of multiple individuals in 

16 high-demand occupations, if such con17 tract does not limit customer choice.’’; 

18 and 

19 (IV) in clause (iv)— 

20 (aa) by redesignating sub21 clause (IV) as subclause (V); and 

22 (bb) by inserting after sub23 clause (III) the following: 

24 ‘‘(IV) Individuals with disabil25 ities.’’. 
194 

•S 9 IS 

1 (3) PERMISSIBLE ACTIVITIES.—Section 134(e) 

2 (29 U.S.C. 2864(e)) is amended— 

3 (A) by striking the matter preceding para4 graph (2) and inserting the following: 

5 ‘‘(e) PERMISSIBLE LOCAL EMPLOYMENT AND TRAIN6 ING ACTIVITIES.— 

7 ‘‘(1) IN GENERAL.— 

8 ‘‘(A) ACTIVITIES.—Funds allocated to a 

9 local area for adults under paragraph (2)(A) or 

10 (3), as appropriate, of section 133(b), and 

11 funds allocated to the local area for dislocated 

12 workers under section 133(b)(2)(B), may be 

13 used to provide, through the one-stop delivery 

14 system involved— 

15 ‘‘(i) customized screening and referral 

16 of qualified participants in training serv17 ices described in subsection (d)(4) to em18 ployment; 

19 ‘‘(ii) customized employment-related 

20 services to employers on a fee-for-service 

21 basis; 

22 ‘‘(iii) customer support to enable 

23 members of hard-to-serve populations, in24 cluding individuals with disabilities, to 
195 

•S 9 IS 

1 navigate among multiple services and ac2 tivities for such populations; 

3 ‘‘(iv) technical assistance and capacity 

4 building for serving individuals with dis5 abilities in local areas, for one-stop opera6 tors, one-stop partners, and eligible pro7 viders, including the development and 

8 training of staff, the provision of outreach, 

9 intake, assessments, and service delivery, 

10 and the development of performance meas11 ures; 

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

14 support enforcement activities of the State 

15 and local agencies carrying out part D of 

16 title IV of the Social Security Act (42 

17 U.S.C. 651 et seq.); 

18 ‘‘(vi) activities to improve coordination 

19 between employment and training assist20 ance, child support services, and assistance 

21 provided by State and local agencies car22 rying out part D of title IV of the Social 

23 Security Act (42 U.S.C. 651 et seq.); 

24 ‘‘(vii) activities to improve coordina25 tion between employment and training as-
196 

•S 9 IS 

1 sistance and cooperative extension pro2 grams carried out by the Department of 

3 Agriculture; 

4 ‘‘(viii) activities to facilitate remote 

5 access to services provided through a one6 stop delivery system, including facilitating 

7 access through the use of technology; 

8 ‘‘(ix) activities— 

9 ‘‘(I) to improve coordination be10 tween workforce investment activities 

11 carried out within the local area in12 volved and economic development ac13 tivities; and 

14 ‘‘(II) to improve services and 

15 linkages between the local workforce 

16 investment system including the local 

17 one-stop delivery system, and all em18 ployers, including small employers in 

19 the local area, through services de20 scribed in this section, including sub21 paragraph (B); 

22 ‘‘(x) training programs for displaced 

23 homemakers and for individuals training 

24 for nontraditional occupations, in conjunc-
197 

•S 9 IS 

1 tion with programs operated in the local 

2 area; 

3 ‘‘(xi) using a portion of the funds allo4 cated under section 133(b), activities to 

5 carry out business services and strategies 

6 that meet the workforce investment needs 

7 of local area employers, as determined by 

8 the local board, consistent with the local 

9 plan under section 118, which services— 

10 ‘‘(I) may be provided through ef11 fective business intermediaries work12 ing in conjunction with the local 

13 board, and may also be provided on a 

14 fee-for-service basis or through the 

15 leveraging of economic development 

16 and other resources as determined ap17 propriate by the local board; and 

18 ‘‘(II) may include— 

19 ‘‘(aa) identifying and dis20 seminating to business, edu21 cators, and job seekers, informa22 tion related to the workforce, eco23 nomic and community develop24 ment needs, and opportunities of 

25 the local economy; 
198 

•S 9 IS 

1 ‘‘(bb) development and deliv2 ery of innovative workforce in3 vestment services and strategies 

4 for area businesses, which may 

5 include sectoral, industry cluster, 

6 regional skills alliances, career 

7 ladder, skills upgrading, skill 

8 standard development and certifi9 cation, apprenticeship, and other 

10 effective initiatives for meeting 

11 the workforce investment needs 

12 of area employers and workers; 

13 ‘‘(cc) participation in semi14 nars and classes offered in part15 nership with relevant organiza16 tions focusing on the workforce17 related needs of area employers 

18 and job seekers; 

19 ‘‘(dd) training consulting, 

20 needs analysis, and brokering 

21 services for area businesses, in22 cluding the organization and ag23 gregation of training (which may 

24 be paid for with funds other than 

25 those provided under this title), 
199 

•S 9 IS 

1 for individual employers and coa2 litions of employers with similar 

3 interests, products, or workforce 

4 needs; 

5 ‘‘(ee) assistance to area em6 ployers in the aversion of layoffs 

7 and in managing reductions in 

8 force in coordination with rapid 

9 response activities; 

10 ‘‘(ff) the marketing of busi11 ness services offered under this 

12 title, to appropriate area employ13 ers, including small and mid14 sized employers; 

15 ‘‘(gg) information referral 

16 on concerns affecting local em17 ployers; and 

18 ‘‘(hh) other business services 

19 and strategies designed to better 

20 engage employers in workforce 

21 investment activities and to make 

22 the workforce investment system 

23 more relevant to the workforce 

24 investment needs of area busi25 nesses, as determined by the local 
200 

•S 9 IS 

1 board to be consistent with the 

2 objectives of this title; 

3 ‘‘(xii) activities to adjust the self-suffi4 ciency standards for local factors, or activi5 ties to adopt, calculate, or commission a 

6 self-sufficiency standard that specifies the 

7 income needs of families, by family size, 

8 the number and ages of children in the 

9 family, and sub-State geographical consid10 erations; and 

11 ‘‘(xiii) improved coordination between 

12 employment and training assistance and 

13 programs carried out in the local area for 

14 individuals with disabilities, including pro15 grams carried out by State agencies relat16 ing to mental retardation and develop17 mental disabilities, Statewide Independent 

18 Living Councils established under section 

19 705 of the Rehabilitation Act of 1973 (29 

20 U.S.C. 796d), and centers for independent 

21 living defined in section 702 of the Reha22 bilitation Act of 1973 (29 U.S.C. 796a). 

23 ‘‘(B) WORK SUPPORT ACTIVITIES FOR

24 LOW-WAGE WORKERS.— 
201 

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

2 a local area for adults under paragraph 

3 (2)(A) or (3), as appropriate, of section 

4 133(b), and funds allocated to the local 

5 area for dislocated workers under section 

6 133(b)(2)(B), may be used to provide, 

7 through the one-stop delivery system in8 volved, work support activities designed to 

9 assist low-wage workers in retaining and 

10 enhancing employment. The one-stop part11 ners shall coordinate the appropriate pro12 grams and resources of the partners with 

13 the activities and resources provided under 

14 this subparagraph. 

15 ‘‘(ii) ACTIVITIES.—The activities de16 scribed in clause (i) may include the provi17 sion of activities described in this section 

18 through the one-stop delivery system in a 

19 manner that enhances the opportunities of 

20 such workers to participate in the activi21 ties, such as the provision of activities de22 scribed in this section during nontradi23 tional hours and the provision of onsite 

24 child care while such activities are being 

25 provided.’’; 
202 

•S 9 IS 

1 (B) in paragraph (2), by striking the mat2 ter preceding subparagraph (A) and inserting 

3 the following: 

4 ‘‘(2) SUPPORTIVE SERVICES.—Funds allocated 

5 to a local area for adults under paragraph (2)(A) or 

6 (3), as appropriate, of section 133(b), and funds al7 located to the local area for dislocated workers under 

8 section 133(b)(2)(B), may be used to provide sup9 portive services to adults and dislocated workers, re10 spectively—’’; and 

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

12 ‘‘(4) INCUMBENT WORKER TRAINING PRO13 GRAMS.— 

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

15 use up to 10 percent of the funds allocated to 

16 the local area involved under section 133(b) to 

17 pay for the Federal share of the cost of pro18 viding training through an incumbent worker 

19 training program carried out in accordance with 

20 this paragraph. The Governor or State board 

21 may make recommendations to the local board 

22 regarding incumbent worker training with 

23 statewide impact. 

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

25 program for incumbent workers carried out 
203 

•S 9 IS 

1 under this paragraph shall be carried out by the 

2 local board in conjunction with the employers or 

3 groups of employers of such workers for the 

4 purpose of assisting such workers in obtaining 

5 the skills necessary to retain employment or 

6 avert layoffs. 

7 ‘‘(C) EMPLOYER SHARE REQUIRED.— 

8 ‘‘(i) IN GENERAL.—Employers partici9 pating in the program carried out under 

10 this paragraph shall be required to pay the 

11 non-Federal share of the costs of providing 

12 the training to incumbent workers of the 

13 employers. The local board shall establish 

14 the non-Federal share of such costs, which 

15 may include in-kind contributions. The 

16 non-Federal share shall not be less than— 

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

18 employers with 50 or fewer employees; 

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

20 employers with more than 50 employ21 ees but fewer than 100 employees; 

22 and 

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

24 employers with 100 or more employ25 ees. 
204 

•S 9 IS 

1 ‘‘(ii) CALCULATION OF EMPLOYER

2 SHARE.—The non-Federal share paid by 

3 such an employer may include the amount 

4 of the wages paid by the employer to a 

5 worker while the worker is attending a 

6 training program under this paragraph.’’. 

7 SEC. 432K. PERFORMANCE ACCOUNTABILITY SYSTEM. 

8 (a) STATE PERFORMANCE MEASURES.— 

9 (1) INDICATORS OF PERFORMANCE.—Section 

10 136(b)(2)(A) (29 U.S.C. 2871(b)(2)(A)) is amend11 ed— 

12 (A) in clause (i)— 

13 (i) in the matter preceding subclause 

14 (I), by striking ‘‘and (for participants who 

15 are eligible youth age 19 through 21) for 

16 youth activities authorized under section 

17 129’’; 

18 (ii) by striking subclause (III) and in19 serting the following: 

20 ‘‘(III) increases in earnings from 

21 unsubsidized employment; and’’; and 

22 (iii) in subclause (IV), by striking ‘‘, 

23 or by participants’’ and all that follows 

24 through ‘‘unsubsidized employment’’; and 
205 

•S 9 IS 

1 (B) by striking clause (ii) and inserting the 

2 following: 

3 ‘‘(ii) CORE INDICATORS FOR ELIGIBLE

4 YOUTH.—The core indicators of perform5 ance for youth activities authorized under 

6 section 129 shall consist of— 

7 ‘‘(I) entry into employment, edu8 cation or advanced training, or mili9 tary service; 

10 ‘‘(II) attainment of secondary 

11 school diplomas or their recognized 

12 equivalents, and postsecondary certifi13 cates; and 

14 ‘‘(III) literacy or numeracy 

15 gains.’’. 

16 (2) ADDITIONAL INDICATORS.—Section 

17 136(b)(2)(C) (29 U.S.C. 2871(b)(2)(C)) is amended 

18 to read as follows: 

19 ‘‘(C) ADDITIONAL INDICATORS.—A State 

20 may identify in the State plan additional indica21 tors for workforce investment activities under 

22 this subtitle, including indicators identified in 

23 collaboration with State business and industry 

24 associations, with employee representatives 

25 where applicable, and with local boards, to 
206 

•S 9 IS 

1 measure the performance of the workforce in2 vestment system in serving the workforce needs 

3 of business and industry in the State.’’. 

4 (3) LEVELS OF PERFORMANCE.—Section 

5 136(b)(3)(A) (29 U.S.C. 2871(b)(3)(A)) is amend6 ed— 

7 (A) in clause (iii)— 

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

9 FIRST 3 YEARS’’; 

10 (ii) by striking ‘‘and the customer sat11 isfaction indicator of performance, for the 

12 first 3’’ and inserting ‘‘described in clauses 

13 (i) and (ii) of paragraph (2)(A) and the 

14 customer satisfaction indicator of perform15 ance, for the first 2’’; and 

16 (iii) by inserting at the end the fol17 lowing: ‘‘Agreements on levels of perform18 ance for each of the core indicators of per19 formance for the third and fourth program 

20 years covered by the State plan shall be 

21 reached prior to the beginning of the third 

22 program year covered by the State plan, 

23 and incorporated as a modification to the 

24 State plan.’’; 

25 (B) in clause (iv)— 
207 

•S 9 IS 

1 (i) in the matter preceding subclause 

2 (I), by striking ‘‘or (v)’’; 

3 (ii) in subclause (II)— 

4 (I) by striking ‘‘taking into ac5 count’’ and inserting ‘‘and shall en6 sure that the levels involved are ad7 justed, using objective statistical 

8 methods, based on’’; 

9 (II) by inserting ‘‘(such as dif10 ferences in unemployment rates and 

11 job losses or gains in particular indus12 tries)’’ after ‘‘economic conditions’’; 

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

15 work experience, lack of educational 

16 or occupational skills attainment, dis17 location from high-wage and benefit 

18 employment, low levels of literacy or 

19 English proficiency, disability status, 

20 homelessness, and welfare depend21 ency)’’ after ‘‘program’’; and 

22 (IV) by striking ‘‘and’’ at the 

23 end; 

24 (iii) in subclause (III), by striking the 

25 period and inserting ‘‘; and’’; and 
208 

•S 9 IS 

1 (iv) by adding at the end the fol2 lowing: 

3 ‘‘(IV) the extent to which the lev4 els involved will assist the State in 

5 meeting the national goals described 

6 in clause (v).’’; 

7 (C) by striking clause (v) and inserting the 

8 following: 

9 ‘‘(v) ESTABLISHMENT OF NATIONAL

10 GOALS.—In order to promote enhanced 

11 performance outcomes on the performance 

12 measures and to facilitate the process of 

13 reaching agreements with the States under 

14 clause (iii) and to measure systemwide per15 formance for the one-stop delivery systems 

16 of the States, the Secretary shall establish 

17 long-term national goals for the adjusted 

18 levels of performance for that systemwide 

19 performance to be achieved by the pro20 grams assisted under chapters 4 and 5 on 

21 the core indicators of performance de22 scribed in subparagraphs (A) and (B) of 

23 subsection (b)(2). Such goals shall be es24 tablished in accordance with the Govern25 ment Performance and Results Act of 
209 

•S 9 IS 

1 1993 in consultation with the States and 

2 other appropriate parties.’’; and 

3 (D) in clause (vi)— 

4 (i) by striking ‘‘or (v)’’; and 

5 (ii) by striking ‘‘with the representa6 tives described in subsection (i)’’ and in7 serting ‘‘with the States and other inter8 ested parties’’. 

9 (b) LOCAL PERFORMANCE MEASURES.—Section 

10 136(c)(3) (29 U.S.C. 2871(c)(3))— 

11 (1) by striking ‘‘shall take into account’’ and 

12 inserting ‘‘shall ensure that the levels involved are 

13 adjusted, using objective statistical methods, based 

14 on’’; 

15 (2) by inserting ‘‘(characteristics such as unem16 ployment rates and job losses or gains in particular 

17 industries)’’ after ‘‘economic’’; and 

18 (3) by inserting ‘‘(characteristics such as indi19 cators of poor work history, lack of work experience, 

20 lack of educational and occupational skills attain21 ment, dislocation from high-wage and benefit em22 ployment, low levels of literacy or English pro23 ficiency, disability status, homelessness, and welfare 

24 dependency)’’ after ‘‘demographic’’. 
210 

•S 9 IS 

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

2 amended— 

3 (1) in paragraph (1), by adding at the end the 

4 following: ‘‘In the case of a State or local area that 

5 chooses to expend funds for activities under sub6 section (a)(3)(A)(i) or (e)(1)(A)(xi), respectively, of 

7 section 134, the report also shall include the amount 

8 of such funds so expended and the percentage that 

9 such funds are of the funds available for activities 

10 under section 134.’’; 

11 (2) in paragraph (2)— 

12 (A) in subparagraph (E)— 

13 (i) by striking ‘‘(excluding partici14 pants who received only self-service and in15 formational activities)’’; and 

16 (ii) by striking ‘‘and’’ after the semi17 colon; 

18 (B) in subparagraph (F)— 

19 (i) by inserting ‘‘noncustodial parents 

20 with child support obligations, homeless in21 dividuals,’’ after ‘‘displaced homemakers,’’; 

22 and 

23 (ii) by striking the period and insert24 ing a semicolon; and 

25 (C) by adding at the end the following: 
211 

•S 9 IS 

1 ‘‘(G) the number of participants served 

2 and the cost per participant; and 

3 ‘‘(H) the amount of adult and dislocated 

4 worker funds spent on— 

5 ‘‘(i) core, intensive, and training serv6 ices, respectively; and 

7 ‘‘(ii) services provided under sub8 section (a)(3)(A)(i) or (e)(1)(A)(xi) of sec9 tion 134, if applicable.’’; and 

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

11 ‘‘(4) DATA VALIDATION.—In preparing the re12 ports described in this subsection, the States shall 

13 establish procedures, consistent with guidelines 

14 issued by the Secretary, to ensure that the informa15 tion contained in the reports is valid and reliable.’’. 

16 (d) EVALUATION OF STATE PROGRAMS.—Section 

17 136(e)(3) is amended by inserting ‘‘, including informa18 tion on promoting self-sufficiency and comparable pay be19 tween men and women’’ after ‘‘employers’’. 

20 (e) SANCTIONS FOR STATE.—Section 136(g) is 

21 amended— 

22 (1) in paragraph (1)(B), by striking ‘‘If such 

23 failure continues for a second consecutive year’’ and 

24 inserting ‘‘If a State performs at less than 80 per25 cent of the adjusted level of performance for core in-
212 

•S 9 IS 

1 dicators of performance described in subsection 

2 (b)(2)(A) for 2 consecutive years’’; and 

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

4 and inserting ‘‘subsection (i)(1)’’. 

5 (f) SANCTIONS FOR LOCAL AREA.—Section 

6 136(h)(2)(A) (29 U.S.C. 2871(h)(2)(A)) is amended— 

7 (1) in the matter preceding clause (i), by strik8 ing ‘‘If such failure continues for a second consecu9 tive year’’ and inserting ‘‘If a local area performs at 

10 less than 80 percent of the adjusted level of per11 formance for core indicators of performance de12 scribed in subsection (b)(2)(A) for 2 consecutive 

13 years’’; 

14 (2) in clause (ii), by striking ‘‘or’’ after the 

15 semicolon; 

16 (3) by redesignating clause (iii) as clause (iv); 

17 and 

18 (4) by inserting after clause (ii) the following: 

19 ‘‘(iii) redesignate the local area in ac20 cordance with section 116(b)(2); or’’. 

21 (g) INCENTIVE GRANTS.—Section 136(i) (29 U.S.C. 

22 2871(i)) is amended to read as follows: 

23 ‘‘(i) INCENTIVE GRANTS FOR LOCAL AREAS.— 

24 ‘‘(1) IN GENERAL.—From funds reserved under 

25 sections 128(a) and 133(a)(1), the Governor in-
213 

•S 9 IS 

1 volved shall award incentive grants to local areas for 

2 performance described in paragraph (2) in carrying 

3 out programs under chapters 4 and 5. 

4 ‘‘(2) BASIS.—The Governor shall award the 

5 grants on the basis— 

6 ‘‘(A) that the local areas met or exceeded 

7 the performance measures established under 

8 subsection (c)(2) relating to indicators de9 scribed in subsection (b)(3)(A)(iii); 

10 ‘‘(B) of exemplary performance of the local 

11 areas in serving hard-to-serve populations; or 

12 ‘‘(C) that the local areas are effectively— 

13 ‘‘(i) coordinating multiple systems 

14 into a comprehensive workforce investment 

15 system, including coordination of employ16 ment services under the Wagner-Peyser 

17 Act (29 U.S.C. 49 et seq.) and core activi18 ties under this title as well as one-stop 

19 partner programs described in section 121; 

20 ‘‘(ii) expanding access to training, in21 cluding through increased leveraging of re22 sources other than those funded through 

23 programs under this title; or 

24 ‘‘(iii) implementing innovative busi25 ness and economic development initiatives. 
214 

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1 ‘‘(3) USE OF FUNDS.—The funds awarded to a 

2 local area under this paragraph may be used to 

3 carry out activities authorized for local areas under 

4 chapters 4 and 5, and such demonstration projects 

5 or innovative programs for hard-to-serve populations 

6 as may be approved by the Governor.’’. 

7 (h) USE OF CORE MEASURES IN OTHER DEPART8 MENT OF LABOR PROGRAMS.—Section 136 (29 U.S.C. 

9 2871) is amended by adding at the end the following: 

10 ‘‘(j) USE OF CORE INDICATORS FOR OTHER PRO11 GRAMS.—In addition to the programs carried out under 

12 chapters 4 and 5, and consistent with the requirements 

13 of the applicable authorizing laws, the Secretary shall use 

14 the indicators of performance described in subparagraphs 

15 (A) and (B) of subsection (b)(2) to assess the effectiveness 

16 of the programs described in clauses (i), (ii), and (vi) of 

17 section 121(b)(1)(B) that are carried out by the Sec18 retary.’’. 

19 (i) PREVIOUS DEFINITIONS OF CORE INDICATORS.— 

20 Section 502 (29 U.S.C. 9272) is repealed. 

21 SEC. 432L. AUTHORIZATION OF APPROPRIATIONS. 

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

23 2872(a)) is amended by striking ‘‘such sums as may be 

24 necessary for each of fiscal years 1999 through 2003’’ and 
215 

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1 inserting ‘‘such sums as may be necessary for each of fis2 cal years 2006 through 2011’’. 

3 (b) ADULT EMPLOYMENT AND TRAINING ACTIVI4 TIES.—Section 137(b) (29 U.S.C. 2872(b)) is amended by 

5 striking ‘‘such sums as may be necessary for each of fiscal 

6 years 1999 through 2003’’ and inserting ‘‘such sums as 

7 may be necessary for each of fiscal years 2006 through 

8 2011’’. 

9 (c) DISLOCATED WORKER EMPLOYMENT AND

10 TRAINING ACTIVITIES.—Section 137(c) (29 U.S.C. 

11 2872(c)) is amended by striking ‘‘such sums as may be 

12 necessary for each of fiscal years 1999 through 2003’’ and 

13 inserting ‘‘such sums as may be necessary for each of fis14 cal years 2006 through 2011’’. 

15 Subchapter C—Job Corps 

16 SEC. 433. JOB CORPS. 

17 (a) ELIGIBILITY.—Section 144(3) (29 U.S.C. 

18 2884(3)) is amended by adding at the end the following: 

19 ‘‘(F) A child eligible for assistance under 

20 section 477 of the Social Security Act (42 

21 U.S.C. 677).’’. 

22 (b) IMPLEMENTATION OF STANDARDS AND PROCE23 DURES.—Section 145(a)(3) (29 U.S.C. 2885(a)(3)) is 

24 amended— 
216 

•S 9 IS 

1 (1) in subparagraph (B), by striking ‘‘and’’ 

2 after the semicolon; 

3 (2) in subparagraph (C), by striking the period 

4 and inserting ‘‘; and’’; and 

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

6 ‘‘(D) child welfare agencies that are re7 sponsible for children in foster care and chil8 dren eligible for assistance under section 477 of 

9 the Social Security Act (42 U.S.C. 677).’’. 

10 (c) INDUSTRY COUNCILS.—Section 154(b) (29 

11 U.S.C. 2894(b)) is amended— 

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

13 distant’’; and 

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

15 ‘‘(3) EMPLOYERS OUTSIDE OF LOCAL AREA.— 

16 The industry council may include, or otherwise pro17 vide for consultation with, employers from outside 

18 the local area who are likely to hire a significant 

19 number of enrollees from the Job Corps center. 

20 ‘‘(4) SPECIAL RULE FOR SINGLE LOCAL AREA

21 STATES.—In the case of a single local area State 

22 designated under section 116(b), the industry coun23 cil shall include a representative of the State 

24 Board.’’. 
217 

•S 9 IS 

1 (d) INDICATORS OF PERFORMANCE.—Section 159 

2 (29 U.S.C. 2899) is amended— 

3 (1) in subsection (c)— 

4 (A) by striking paragraph (1) and insert5 ing the following: 

6 ‘‘(1) PERFORMANCE INDICATORS.—The Sec7 retary shall annually establish expected levels of per8 formance for Job Corps centers and the Job Corps 

9 program relating to each of the core indicators of 

10 performance for youth activities identified in section 

11 136(b)(2)(A)(ii).’’; 

12 (B) in paragraph (2), by striking ‘‘meas13 ures’’ each place it appears and inserting ‘‘indi14 cators’’; and 

15 (C) in paragraph (3)— 

16 (i) in the first sentence, by striking 

17 ‘‘core performance measures, as compared 

18 to the expected performance level for each 

19 performance measure’’ and inserting ‘‘per20 formance indicators described in paragraph 

21 (1), as compared to the expected level of 

22 performance established under paragraph 

23 (1) for each performance measure’’; and 
218 

•S 9 IS 

1 (ii) in the second sentence, by striking 

2 ‘‘measures’’ each place it appears and in3 serting ‘‘indicators’’; and 

4 (2) in subsection (f)(2), in the first sentence, by 

5 striking ‘‘core performance measures’’ and inserting 

6 ‘‘indicators of performance’’. 

7 (e) AUTHORIZATION OF APPROPRIATIONS.—Section 

8 161 (29 U.S.C. 2901) is amended by striking ‘‘1999 

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

10 Subchapter D—National Programs 

11 SEC. 434. NATIVE AMERICAN PROGRAMS. 

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

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

14 ‘‘(C) DUTIES.—The Council shall advise 

15 the Secretary on the operation and administra16 tion of the programs assisted under this sec17 tion, including the selection of the individual 

18 appointed as head of the unit established under 

19 paragraph (1).’’. 

20 (b) ASSISTANCE TO UNIQUE POPULATIONS IN ALAS21 KA AND HAWAII.—Section 166(j) (29 U.S.C. 2911(j)) is 

22 amended to read as follows: 

23 ‘‘(j) ASSISTANCE TO UNIQUE POPULATIONS IN ALAS24 KA AND HAWAII.— 
219 

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1 ‘‘(1) IN GENERAL.—Notwithstanding any other 

2 provision of law, the Secretary is authorized to pro3 vide assistance to unique populations who reside in 

4 Alaska or Hawaii to improve job training and work5 force investment activities. 

6 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— 

7 There are authorized to be appropriated to carry out 

8 this subsection such sums as may be necessary for 

9 fiscal year 2006.’’. 

10 (c) PERFORMANCE INDICATORS.—Section 166 (29 

11 U.S.C. 2911) is amended by adding at the end the fol12 lowing’: 

13 ‘‘(k) PERFORMANCE INDICATORS.— 

14 ‘‘(1) DEVELOPMENT OF INDICATORS.—The 

15 Secretary, in consultation with the Native American 

16 Employment and Training Council, shall develop a 

17 set of performance indicators and standards which 

18 shall be applicable to programs under this section. 

19 ‘‘(2) SPECIAL CONSIDERATIONS.—Such per20 formance indicators and standards shall take into 

21 account— 

22 ‘‘(A) the purposes of the programs under 

23 this section as described in paragraph (a)(1); 

24 ‘‘(B) the needs of the groups served by this 

25 section, including the differences in needs 
220 

•S 9 IS 

1 among such groups in various geographic serv2 ice areas; and 

3 ‘‘(C) the economic circumstances of the 

4 communities served, including differences in cir5 cumstances among various geographic service 

6 areas.’’. 

7 SEC. 434A. MIGRANT AND SEASONAL FARMWORKER PRO8 GRAMS. 

9 Section 167(d) (29 U.S.C. 2912(d)) is amended by 

10 inserting ‘‘(including permanent housing)’’ after ‘‘hous11 ing’’. 

12 SEC. 434B. VETERANS’ WORKFORCE INVESTMENT PRO13 GRAMS. 

14 Section 168(a)(3)(C) (29 U.S.C. 2913(a)(3)(C)) is 

15 amended by striking ‘‘section 134(c)’’ and inserting ‘‘sec16 tion 121(e)’’. 

17 SEC. 434C. YOUTH CHALLENGE GRANTS. 

18 Section 169 (29 U.S.C. 2914) is amended to read as 

19 follows: 

20 ‘‘SEC. 169. YOUTH CHALLENGE GRANTS. 

21 ‘‘(a) IN GENERAL.—Of the amounts reserved by the 

22 Secretary under section 127(b)(1)(A) for a fiscal year— 

23 ‘‘(1) the Secretary shall use not less than 80 

24 percent to award competitive grants under sub25 section (b); and 
221 

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1 ‘‘(2) the Secretary may use not more than 20 

2 percent to award discretionary grants under sub3 section (c). 

4 ‘‘(b) COMPETITIVE GRANTS TO STATES AND LOCAL

5 AREAS.— 

6 ‘‘(1) ESTABLISHMENT.—From the funds de7 scribed in subsection (a)(1), the Secretary shall 

8 award competitive grants to eligible entities to carry 

9 out activities authorized under this subsection to as10 sist eligible youth in acquiring the skills, credentials, 

11 and employment experience necessary to achieve the 

12 performance outcomes for youth described in section 

13 136 

14 ‘‘(2) ELIGIBLE ENTITY.—In this subsection, the 

15 term ‘eligible entity’ means— 

16 ‘‘(A) a State or consortium of States; 

17 ‘‘(B) a local board or consortium of local 

18 boards; 

19 ‘‘(C) a recipient of a grant under section 

20 166 (relating to Native American programs); or 

21 ‘‘(D) a public or private entity (including 

22 a consortium of such entities) with expertise in 

23 the provision of youth activities, applying in 

24 partnership with a local board or consortium of 

25 local boards. 
222 

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1 ‘‘(3) APPLICATIONS.—To be eligible to receive a 

2 grant under this subsection, an eligible entity shall 

3 submit an application to the Secretary at such time, 

4 in such manner, and containing such information as 

5 the Secretary may require, including— 

6 ‘‘(A) a description of the activities the eli7 gible entity will provide to eligible youth under 

8 this subsection, and how the eligible entity will 

9 collaborate with State and local workforce in10 vestment systems established under this title in 

11 the provision of such activities; 

12 ‘‘(B) a description of the programs of dem13 onstrated effectiveness on which the provision 

14 of the activities under subparagraph (A) are 

15 based, and a description of how such activities 

16 will expand the base of knowledge relating to 

17 the provision of activities for youth; 

18 ‘‘(C) a description of the State, local, and 

19 private resources that will be leveraged to pro20 vide the activities described under subparagraph 

21 (A) in addition to funds provided under this 

22 subsection, and a description of the extent of 

23 the involvement of employers in the activities; 

24 ‘‘(D) the levels of performance the eligible 

25 entity expects to achieve with respect to the in-
223 

•S 9 IS 

1 dicators of performance for youth specified in 

2 section 136(b)(2)(A)(ii); and 

3 ‘‘(E) an assurance that the State board of 

4 each State in which the proposed activities are 

5 to be carried out had the opportunity to review 

6 the application, and including the comments, if 

7 any, of the affected State boards on the appli8 cation, except that this subparagraph shall not 

9 apply to an eligible entity described in para10 graph (2)(C). 

11 ‘‘(4) FACTORS FOR AWARD.— 

12 ‘‘(A) IN GENERAL.—In awarding grants 

13 under this subsection the Secretary shall con14 sider— 

15 ‘‘(i) the quality of the proposed activi16 ties; 

17 ‘‘(ii) the goals to be achieved; 

18 ‘‘(iii) the likelihood of successful im19 plementation; 

20 ‘‘(iv) the extent to which the proposed 

21 activities are based on proven strategies or 

22 the extent to which the proposed activities 

23 will expand the base of knowledge relating 

24 to the provision of activities for youth; 
224 

•S 9 IS 

1 ‘‘(v) the extent of collaboration with 

2 the State and local workforce investment 

3 systems in carrying out the proposed ac4 tivities; 

5 ‘‘(vi) the extent of employer involve6 ment in the proposed activities; 

7 ‘‘(vii) whether there are other Federal 

8 and non-Federal funds available for similar 

9 activities to the proposed activities, and the 

10 additional State, local, and private re11 sources that will be provided to carry out 

12 the proposed activities; and 

13 ‘‘(viii) the quality of proposed activi14 ties in meeting the needs of the youth to 

15 be served. 

16 ‘‘(B) EQUITABLE GEOGRAPHIC DISTRIBU17 TION.—In awarding grants under this sub18 section the Secretary shall ensure an equitable 

19 distribution of such grants across geographi20 cally diverse areas. 

21 ‘‘(5) USE OF FUNDS.— 

22 ‘‘(A) IN GENERAL.—An eligible entity that 

23 receives a grant under this subsection shall use 

24 the grant funds to carry out activities that are 

25 designed to assist youth in acquiring the skills, 
225 

•S 9 IS 

1 credentials, and employment experience that are 

2 necessary to succeed in the labor market, in3 cluding the activities identified in section 129. 

4 ‘‘(B) ACTIVITIES.—The activities carried 

5 out pursuant to subparagraph (A) may include 

6 the following: 

7 ‘‘(i) Training and internships for out8 of-school youth in sectors of the economy 

9 experiencing, or projected to experience, 

10 high growth. 

11 ‘‘(ii) Dropout prevention activities for 

12 in-school youth. 

13 ‘‘(iii) Activities designed to assist spe14 cial youth populations, such as court-in15 volved youth and youth with disabilities. 

16 ‘‘(iv) Activities combining remediation 

17 of academic skills, work readiness training, 

18 and work experience, and including link19 ages to postsecondary education, appren20 ticeships, and career-ladder employment. 

21 ‘‘(v) Activities, including work experi22 ence, paid internships, and entrepreneurial 

23 training, in areas where there is a migra24 tion of youth out of the areas. 
226 

•S 9 IS 

1 ‘‘(C) PARTICIPANT ELIGIBILITY.—Youth 

2 who are 14 years of age through 21 years of 

3 age, as of the time the eligibility determination 

4 is made, may be eligible to participate in activi5 ties carried out under this subsection. 

6 ‘‘(6) GRANT PERIOD.—The Secretary shall 

7 make a grant under this subsection for a period of 

8 2 years and may renew the grant, if the eligible enti9 ty has performed successfully, for a period of not 

10 more than 3 succeeding years. 

11 ‘‘(7) MATCHING FUNDS REQUIRED.—The Sec12 retary shall require that an eligible entity that re13 ceives a grant under this subsection provide non14 Federal matching funds in an amount to be deter15 mined by the Secretary that is not less than 10 per16 cent of the cost of activities carried out under the 

17 grant. The Secretary may require that such non18 Federal matching funds be provided in cash re19 sources, noncash resources, or a combination of cash 

20 and noncash resources. 

21 ‘‘(8) EVALUATION.—The Secretary shall reserve 

22 not more than 3 percent of the funds described in 

23 subsection (a)(1) to provide technical assistance to, 

24 and conduct evaluations of (using appropriate tech-
227 

•S 9 IS 

1 niques as described in section 172(c)), the projects 

2 funded under this subsection. 

3 ‘‘(c) DISCRETIONARY GRANTS FOR YOUTH ACTIVI4 TIES.— 

5 ‘‘(1) IN GENERAL.—From the funds described 

6 in subsection (a)(2), the Secretary may award 

7 grants to eligible entities to provide activities that 

8 will assist youth in preparing for, and entering and 

9 retaining, employment. 

10 ‘‘(2) ELIGIBLE ENTITY.—In this subsection, the 

11 term ‘eligible entity’ means a public or private entity 

12 that the Secretary determines would effectively carry 

13 out activities relating to youth under this subsection. 

14 ‘‘(3) EQUITABLE DISTRIBUTION TO RURAL

15 AREAS.—In awarding grants under this subsection 

16 the Secretary shall ensure an equitable distribution 

17 of such grants to rural areas. 

18 ‘‘(4) APPLICATIONS.—To be eligible to receive a 

19 grant under this subsection, an eligible entity shall 

20 submit an application to the Secretary at such time, 

21 in such manner, and containing such information as 

22 the Secretary may require. 

23 ‘‘(5) USE OF FUNDS.— 
228 

•S 9 IS 

1 ‘‘(A) IN GENERAL.—An eligible entity that 

2 receives a grant under this subsection shall use 

3 the grant funds to carry out— 

4 ‘‘(i) activities that will assist youth in 

5 preparing for, and entering and retaining, 

6 employment, including the activities de7 scribed in section 129 for out-of-school 

8 youth; 

9 ‘‘(ii) activities designed to assist in10 school youth to stay in school and gain 

11 work experience; 

12 ‘‘(iii) activities designed to assist 

13 youth in economically distressed areas; and 

14 ‘‘(iv) such other activities that the 

15 Secretary determines are appropriate to 

16 ensure that youth entering the workforce 

17 have the skills needed by employers. 

18 ‘‘(B) PARTICIPANT ELIGIBILITY.—Youth 

19 who are 14 years of age through 21 years of 

20 age, as of the time the eligibility determination 

21 is made, may be eligible to participate in activi22 ties carried out under this subsection. 

23 ‘‘(6) MATCHING FUNDS REQUIRED.—The Sec24 retary shall require that an eligible entity that re25 ceives a grant under this subsection provide non- 
229 

•S 9 IS 

1 Federal matching funds in an amount to be deter2 mined by the Secretary that is not less than 10 per3 cent of the cost of activities carried out under the 

4 grant. The Secretary may require that such non5 Federal matching funds be provided in cash re6 sources, noncash resources, or a combination of cash 

7 and noncash resources. 

8 ‘‘(7) EVALUATIONS.—The Secretary may re9 quire that an eligible entity that receives a grant 

10 under this subsection participate in an evaluation of 

11 activities carried out under this subsection, including 

12 an evaluation using the techniques described in sec13 tion 172(c).’’. 

14 SEC. 434D. TECHNICAL ASSISTANCE. 

15 Section 170 (29 U.S.C. 2915) is amended— 

16 (1) in subsection (a)(1), by— 

17 (A) inserting ‘‘the training of staff pro18 viding rapid response services, the training of 

19 other staff of recipients of funds under this 

20 title, the training of members of State boards 

21 and local boards, peer review activities under 

22 this title,’’ after ‘‘localities,’’; and 

23 (B) striking ‘‘from carrying out activities’’ 

24 and all that follows through the period and in25 serting ‘‘to implement the amendments made by 
230 

•S 9 IS 

1 the Workforce Investment Act Amendments of 

2 2005.’’; 

3 (2) in subsection (a)(2), by adding at the end 

4 the following: ‘‘The Secretary shall also hire staff 

5 qualified to provide the assistance described in para6 graph (1).’’; 

7 (3) in subsection (b)(2), by striking the last 

8 sentence and inserting ‘‘Such projects shall be ad9 ministered by the Employment and Training Admin10 istration.’’; and 

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

12 ‘‘(c) BEST PRACTICES COORDINATION.—The Sec13 retary shall— 

14 ‘‘(1) establish a system through which States 

15 may share information regarding best practices with 

16 regard to the operation of workforce investment ac17 tivities under this Act; 

18 ‘‘(2) evaluate and disseminate information re19 garding best practices and identify knowledge gaps; 

20 and 

21 ‘‘(3) commission research under section 172 to 

22 address knowledge gaps identified under paragraph 

23 (2).’’. 
231 

•S 9 IS 

1 SEC. 434E. DEMONSTRATION, PILOT, MULTISERVICE, RE2 SEARCH, AND MULTISTATE PROJECTS. 

3 (a) DEMONSTRATION AND PILOT PROJECTS.—Sec4 tion 171(b) (29 U.S.C. 2916(b)) is amended— 

5 (1) in paragraph (1)— 

6 (A) by striking ‘‘Under a’’ and inserting 

7 ‘‘Consistent with the priorities specified in the’’; 

8 (B) by striking subparagraphs (A) through 

9 (E) and inserting the following: 

10 ‘‘(A) projects that assist national employ11 ers in connecting with the workforce investment 

12 system established under this title in order to 

13 facilitate the recruitment and employment of 

14 needed workers for career ladder jobs and to 

15 provide information to such system on skills 

16 and occupations in demand; 

17 ‘‘(B) projects that promote the develop18 ment of systems that will improve the maximum 

19 effectiveness of programs carried out under this 

20 title; 

21 ‘‘(C) projects that focus on opportunities 

22 for employment in industries and sectors of in23 dustries that are experiencing, or are likely to 

24 experience, high rates of growth and jobs with 

25 wages leading to self-sufficiency; 
232 

•S 9 IS 

1 ‘‘(D) computerized, individualized, self2 paced training projects targeted to dislocated, 

3 disadvantaged, or incumbent workers utilizing 

4 equipment and curriculum designed in partner5 ship with industries for employment in the op6 erations, repair, and maintenance of high-tech 

7 equipment that is used in integrated systems 

8 technology; 

9 ‘‘(E) projects carried out by States and 

10 local areas to test innovative approaches to de11 livering employment-related services;’’; 

12 (C) in subparagraph (G), by striking 

13 ‘‘and’’ after the semicolon; and 

14 (D) by striking subparagraph (H) and in15 serting the following: 

16 ‘‘(H) projects that provide retention 

17 grants, which shall— 

18 ‘‘(i) be made to qualified job training 

19 programs offering instruction, assessment, 

20 or professional coaching, upon placement 

21 of a low-income individual trained by the 

22 program involved in employment with an 

23 employer and retention of the low-income 

24 individual in that employment with that 

25 employer for a period of 1 year, if that em-
233 

•S 9 IS 

1 ployment provides the low-income indi2 vidual with an annual salary— 

3 ‘‘(I) that is at least $10,000 

4 more than the individual’s federally 

5 adjusted income for the previous year; 

6 and 

7 ‘‘(II) that is not less than twice 

8 the poverty line applicable to the indi9 vidual; and 

10 ‘‘(ii) be made taking into account the 

11 economic benefit received by the Federal 

12 Government from the employment and re13 tention of the individual, including the eco14 nomic benefit from tax revenue and de15 creased public subsidies; 

16 ‘‘(I) targeted innovation projects that im17 prove access to and delivery of employment and 

18 training services, with emphasis given to 

19 projects that incorporate advanced technologies 

20 to facilitate the connection of individuals to the 

21 information and tools they need to upgrade 

22 skills; 

23 ‘‘(J) projects that promote the use of dis24 tance learning, enabling students to take 

25 courses through the use of media technology 
234 

•S 9 IS 

1 such as videos, teleconferencing computers, and 

2 the Internet; and 

3 ‘‘(K) projects that provide comprehensive 

4 education and training services, and support 

5 services, in coordination with local boards, for 

6 populations in targeted high poverty areas 

7 where the greatest barriers to employment 

8 exist, including ex-offenders, out-of-school 

9 youth, and public assistance recipient popu10 lations.’’; and 

11 (2) in paragraph (2)— 

12 (A) by striking subparagraph (B); and 

13 (B) by redesignating subparagraph (C) as 

14 subparagraph (B). 

15 (b) MULTISERVICE PROJECTS.—Section 

16 171(c)(2)(B) (29 U.S.C. 2916(c)(2)(B)) is amended to 

17 read as follows: 

18 ‘‘(B) STUDIES AND REPORTS.— 

19 ‘‘(i) NET IMPACT STUDIES AND RE20 PORTS.— 

21 ‘‘(I) IN GENERAL.—The Sec22 retary, in coordination with the Sec23 retary of Education, shall conduct 

24 studies to determine the net impacts 
235 

•S 9 IS 

1 of programs, services, and activities 

2 carried out under this title. 

3 ‘‘(II) REPORTS.—The Secretary 

4 shall prepare and disseminate to the 

5 public reports containing the results 

6 of the studies conducted under sub7 clause (I). 

8 ‘‘(ii) STUDY ON RESOURCES AVAIL9 ABLE TO ASSIST OUT-OF-SCHOOL

10 YOUTH.—The Secretary, in coordination 

11 with the Secretary of Education, may con12 duct a study examining the resources avail13 able at the Federal, State, and local levels 

14 to assist out-of-school youth in obtaining 

15 the skills, credentials, and work experience 

16 necessary to become successfully employed, 

17 including the availability of funds provided 

18 through average daily attendance and 

19 other methodologies used by States and 

20 local areas to distribute funds. 

21 ‘‘(iii) STUDY OF INDUSTRY-BASED

22 CERTIFICATION AND CREDENTIALS.— 

23 ‘‘(I) IN GENERAL.—The Sec24 retary shall conduct a study con25 cerning the role and benefits of 
236 

•S 9 IS 

1 credentialing and certification to busi2 nesses and workers in the economy 

3 and the implications of certification to 

4 the services provided through the 

5 workforce investment system. The 

6 study may examine issues such as— 

7 ‘‘(aa) the characteristics of 

8 successful credentialing and cer9 tification systems that serve busi10 ness and individual needs; 

11 ‘‘(bb) the relative propor12 tions of certificates and creden13 tials attained with assistance 

14 from the public sector, with pri15 vate-sector training of new hires 

16 or incumbent workers, and by in17 dividuals on their own initiative 

18 without other assistance, respec19 tively; 

20 ‘‘(cc) the return on human 

21 capital investments from occupa22 tional credentials and industry23 based skill certifications, includ24 ing the extent to which acquisi25 tion of such credentials or certifi-
237 

•S 9 IS 

1 cates enhances outcomes such as 

2 entry into employment, retention, 

3 earnings (including the number 

4 and amount of wage increases), 

5 career advancement, and layoff 

6 aversion; 

7 ‘‘(dd) the implications of the 

8 effects of skill certifications and 

9 credentials to the types and deliv10 ery of services provided through 

11 the workforce investment system; 

12 ‘‘(ee) the role that Federal 

13 and State governments play in 

14 fostering the development of and 

15 disseminating credentials and 

16 skill standards; and 

17 ‘‘(ff) the use of credentials 

18 by businesses to achieve goals for 

19 workforce skill upgrading and 

20 greater operating efficiency. 

21 ‘‘(II) REPORT TO CONGRESS.— 

22 The Secretary shall prepare and sub23 mit to Congress a report containing 

24 the results of the study conducted 

25 pursuant to subclause (I). Such report 
238 

•S 9 IS 

1 may include any recommendations 

2 that the Secretary determines are ap3 propriate to include in such report re4 lating to promoting the acquisition of 

5 industry-based certification and cre6 dentials, and the appropriate role of 

7 the Department of Labor and the 

8 workforce investment system in sup9 porting the needs of business and in10 dividuals with respect to such certifi11 cation and credentials. 

12 ‘‘(iv) STUDY OF EFFECTIVENESS OF

13 WORKFORCE INVESTMENT SYSTEM IN

14 MEETING BUSINESS NEEDS.— 

15 ‘‘(I) IN GENERAL.—Using funds 

16 available to carry out this section 

17 jointly with funds available to the Sec18 retary of Commerce and Adminis19 trator of the Small Business Adminis20 tration, the Secretary, in coordination 

21 with the Secretary of Commerce and 

22 the Administrator of the Small Busi23 ness Administration, may conduct a 

24 study of the effectiveness of the work25 force investment system in meeting 
239 

•S 9 IS 

1 the needs of business, with particular 

2 attention to the needs of small busi3 ness, including in assisting workers to 

4 obtain the skills needed to utilize 

5 emerging technologies. In conducting 

6 the study, the Secretary, in coordina7 tion with the Secretary of Commerce 

8 and the Administrator of the Small 

9 Business Administration, may exam10 ine issues such as— 

11 ‘‘(aa) methods for identi12 fying the workforce needs of 

13 businesses and how the require14 ments of small businesses may 

15 differ from larger establishments; 

16 ‘‘(bb) business satisfaction 

17 with the workforce investment 

18 system, with particular emphasis 

19 on the satisfaction of small busi20 nesses; 

21 ‘‘(cc) the extent to which 

22 business is engaged as a collabo23 rative partner in the workforce 

24 investment system, including the 

25 extent of business involvement as 
240 

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1 members of State boards and 

2 local boards, and the extent to 

3 which such boards and one-stop 

4 centers effectively collaborate 

5 with business and industry lead6 ers in developing workforce in7 vestment strategies, including 

8 strategies to identify high growth 

9 opportunities; 

10 ‘‘(dd) ways in which the 

11 workforce investment system ad12 dresses changing skill needs of 

13 business that result from changes 

14 in technology and work processes; 

15 ‘‘(ee) promising practices for 

16 serving small businesses; 

17 ‘‘(ff) the extent and manner 

18 in which the workforce invest19 ment system uses technology to 

20 serve business and individual 

21 needs, and how uses of tech22 nology could enhance efficiency 

23 and effectiveness in providing 

24 services; and 
241 

•S 9 IS 

1 ‘‘(gg) the extent to which 

2 various segments of the labor 

3 force have access to and utilize 

4 technology to locate job openings 

5 and apply for jobs, and charac6 teristics of individuals utilizing 

7 such technology (such as age, 

8 gender, race or ethnicity, indus9 try sector, and occupational 

10 groups). 

11 ‘‘(II) REPORT TO CONGRESS.— 

12 The Secretary shall prepare and sub13 mit to Congress a report containing 

14 the results of the study described in 

15 subclause (I). Such report may in16 clude any recommendations the Sec17 retary determines are appropriate to 

18 include in such report, including ways 

19 to enhance the effectiveness of the 

20 workforce investment system in meet21 ing the needs of business for skilled 

22 workers.’’. 

23 (c) ADMINISTRATION.—Section 171(d) (29 U.S.C. 

24 2916(d)) is amended by striking the last sentence and in-
242 

•S 9 IS 

1 serting the following: ‘‘Such projects shall be administered 

2 by the Employment and Training Administration.’’. 

3 (d) NEXT GENERATION TECHNOLOGIES.—Section 

4 171 (29 U.S.C. 2916) is amended by adding at the end 

5 the following: 

6 ‘‘(e) SKILL CERTIFICATION PILOT PROJECTS.— 

7 ‘‘(1) PILOT PROJECTS.—In accordance with 

8 subsection (b) and from funds appropriated pursu9 ant to paragraph (10), the Secretary shall establish 

10 and carry out not more than 10 pilot projects to es11 tablish a system of industry-validated national cer12 tifications of skills, including— 

13 ‘‘(A) not more than 8 national certifi14 cations of skills in high-technology industries, 

15 including biotechnology, telecommunications, 

16 highly automated manufacturing (including 

17 semiconductors), nanotechnology, and energy 

18 technology; and 

19 ‘‘(B) not more than 2 cross-disciplinary 

20 national certifications of skills in homeland se21 curity technology. 

22 ‘‘(2) GRANTS TO ELIGIBLE ENTITIES.—In car23 rying out the pilot projects, the Secretary shall make 

24 grants to eligible entities, for periods of not less 

25 than 36 months and not more than 48 months, to 
243 

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1 carry out the authorized activities described in para2 graph (7) with respect to the certifications described 

3 in paragraph (1). In awarding grants under this 

4 subsection the Secretary shall take into consider5 ation awarding grants to eligible entities from di6 verse geographic areas, including rural areas. 

7 ‘‘(3) ELIGIBLE ENTITIES.— 

8 ‘‘(A) DEFINITION OF ELIGIBLE ENTITY.— 

9 In this subsection the term ‘eligible entity’ 

10 means an entity that shall work in conjunction 

11 with a local board and shall include as a prin12 cipal participant one or more of the following: 

13 ‘‘(i) An educational institution, includ14 ing a 2- or 4-year college, or a technical or 

15 vocational school. 

16 ‘‘(ii) An advanced technology edu17 cation center. 

18 ‘‘(iii) A local board. 

19 ‘‘(iv) A representative of a business in 

20 a target industry for the certification in21 volved. 

22 ‘‘(v) A representative of an industry 

23 association, labor organization, or commu24 nity development organization. 
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1 ‘‘(B) HISTORY OF DEMONSTRATED CAPA2 BILITY REQUIRED.—To be eligible to receive a 

3 grant under this subsection, an eligible entity 

4 shall have a history of demonstrated capability 

5 for effective collaboration with industry on 

6 workforce investment activities that is con7 sistent with the objectives of this title. 

8 ‘‘(4) APPLICATIONS.—To be eligible to receive a 

9 grant under this subsection, an eligible entity shall 

10 submit an application to the Secretary at such time, 

11 in such manner, and containing such information as 

12 the Secretary may require. 

13 ‘‘(5) CRITERIA.—The Secretary shall establish 

14 criteria, consistent with paragraph (6), for awarding 

15 grants under this subsection. 

16 ‘‘(6) PRIORITY.—In selecting eligible entities to 

17 receive grants under this subsection, the Secretary 

18 shall give priority to eligible entities that dem19 onstrate the availability of and ability to provide 

20 matching funds from industry or nonprofit sources. 

21 Such matching funds may be provided in cash or in 

22 kind. 

23 ‘‘(7) AUTHORIZED ACTIVITIES.— 
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1 ‘‘(A) IN GENERAL.—An eligible entity that 

2 receives a grant under this subsection shall use 

3 the funds made available through the grant— 

4 ‘‘(i) to facilitate the establishment of 

5 certification requirements for a certifi6 cation described in paragraph (1) for an 

7 industry; 

8 ‘‘(ii) to develop and initiate a certifi9 cation program that includes preparatory 

10 courses, course materials, procedures, and 

11 examinations, for the certification; and 

12 ‘‘(iii) to collect and analyze data re13 lated to the program at the program’s 

14 completion, and to identify best practices 

15 (consistent with paragraph (8)) that may 

16 be used by local and State workforce in17 vestment boards in the future. 

18 ‘‘(B) BASIS FOR REQUIREMENTS.—The 

19 certification requirements established under the 

20 grant shall be based on applicable skill stand21 ards for the industry involved that have been 

22 developed by or linked to national centers of ex23 cellence under the National Science Founda24 tion’s Advanced Technological Education Pro25 gram. The requirements shall require an indi-
246 

•S 9 IS 

1 vidual to demonstrate an identifiable set of 

2 competencies relevant to the industry in order 

3 to receive certification. The requirements shall 

4 be designed to provide evidence of a transfer5 able skill set that allows flexibility and mobility 

6 of workers within a high technology industry. 

7 ‘‘(C) RELATIONSHIP TO TRAINING AND

8 EDUCATION PROGRAMS.—The eligible entity 

9 shall ensure that— 

10 ‘‘(i) a training and education program 

11 related to competencies for the industry in12 volved, that is flexible in mode and time13 frame for delivery and that meets the 

14 needs of those seeking the certification, is 

15 offered; and 

16 ‘‘(ii) the certification program is of17 fered at the completion of the training and 

18 education program. 

19 ‘‘(D) RELATIONSHIP TO THE ASSOCIATE

20 DEGREE.—The eligible entity shall ensure that 

21 the certification program is consistent with the 

22 requirements for a 2-year associate degree. 

23 ‘‘(E) AVAILABILITY.—The eligible entity 

24 shall ensure that the certification program is 
247 

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1 open to students pursuing associate degrees, 

2 employed workers, and displaced workers. 

3 ‘‘(8) CONSULTATION.—The Secretary shall con4 sult with the Director of the National Science Foun5 dation to ensure that the pilot projects build on the 

6 expertise and information about best practices 

7 gained through the implementation of the National 

8 Science Foundation’s Advanced Technological Edu9 cation Program. 

10 ‘‘(9) CORE COMPONENTS; GUIDELINES; RE11 PORTS.—After collecting and analyzing the data ob12 tained from the pilot programs, the Secretary 

13 shall— 

14 ‘‘(A) establish the core components of a 

15 model high-technology certification program; 

16 ‘‘(B) establish guidelines to assure develop17 ment of a uniform set of standards and policies 

18 for such programs; 

19 ‘‘(C) prepare and submit a report on the 

20 pilot projects to the Committee on Health, Edu21 cation, Labor, and Pensions of the Senate and 

22 the Committee on Education and the Workforce 

23 of the House of Representatives; and 

24 ‘‘(D) make available to the public both the 

25 data and the report. 
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1 ‘‘(10) AUTHORIZATION OF APPROPRIATIONS.— 

2 In addition to amounts authorized to be appro3 priated under section 174(b), there is authorized to 

4 be appropriated $30,000,000 for fiscal year 2006 to 

5 carry out this subsection.’’. 

6 (e) INTEGRATED WORKFORCE TRAINING PROGRAMS

7 FOR ADULTS WITH LIMITED ENGLISH PROFICIENCY.— 

8 Section 171 (29 U.S.C. 2916), as amended by subsection 

9 (d), is further amended by adding at the end the following: 

10 ‘‘(f) INTEGRATED WORKFORCE TRAINING PROGRAMS

11 FOR ADULTS WITH LIMITED ENGLISH PROFICIENCY.— 

12 ‘‘(1) DEFINITIONS.—In this subsection: 

13 ‘‘(A) INTEGRATED WORKFORCE TRAIN14 ING.—The term ‘integrated workforce training’ 

15 means training that integrates occupational 

16 skills training with language acquisition. 

17 ‘‘(B) SECRETARY.—The term ‘Secretary’ 

18 means the Secretary of Labor in consultation 

19 with the Secretary of Education. 

20 ‘‘(2) DEMONSTRATION PROJECT.—In accord21 ance with subsection (b) and from funds appro22 priated pursuant to paragraph (11), the Secretary 

23 shall establish and implement a national demonstra24 tion project designed to both analyze and provide 

25 data on workforce training programs that integrate 
249 

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1 English language acquisition and occupational train2 ing. 

3 ‘‘(3) GRANTS.— 

4 ‘‘(A) IN GENERAL.—In carrying out the 

5 demonstration project, the Secretary shall make 

6 not less than 10 grants, on a competitive basis, 

7 to eligible entities to provide the integrated 

8 workforce training programs. In awarding 

9 grants under this subsection the Secretary shall 

10 take into consideration awarding grants to eligi11 ble entities from diverse geographic areas, in12 cluding rural areas. 

13 ‘‘(B) PERIODS.—The Secretary shall make 

14 the grants for periods of not less than 24 

15 months and not more than 48 months. 

16 ‘‘(4) ELIGIBLE ENTITIES.— 

17 ‘‘(A) IN GENERAL.—To be eligible to re18 ceive a grant under this subsection, an eligible 

19 entity shall work in conjunction with a local 

20 board and shall include as a principal partici21 pant one or more of the following: 

22 ‘‘(i) An employer or employer associa23 tion. 

24 ‘‘(ii) A nonprofit provider of English 

25 language instruction. 
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1 ‘‘(iii) A provider of occupational or 

2 skills training. 

3 ‘‘(iv) A community-based organiza4 tion. 

5 ‘‘(v) An educational institution, in6 cluding a 2- or 4-year college, or a tech7 nical or vocational school. 

8 ‘‘(vi) A labor organization. 

9 ‘‘(vii) A local board. 

10 ‘‘(B) EXPERTISE.—To be eligible to re11 ceive a grant under this subsection, an eligible 

12 entity shall have proven expertise in— 

13 ‘‘(i) serving individuals with limited 

14 English proficiency, including individuals 

15 with lower levels of oral and written 

16 English; and 

17 ‘‘(ii) providing workforce programs 

18 with training and English language in19 struction. 

20 ‘‘(5) APPLICATIONS.— 

21 ‘‘(A) IN GENERAL.—To be eligible to re22 ceive a grant under this subsection, an eligible 

23 entity shall submit an application to the Sec24 retary at such time, in such manner, and con-
251 

•S 9 IS 

1 taining such information as the Secretary may 

2 require. 

3 ‘‘(B) CONTENTS.—Each application sub4 mitted under subparagraph (A) shall— 

5 ‘‘(i) contain information, including ca6 pability statements, that demonstrates that 

7 the eligible entity has the expertise de8 scribed in paragraph (4)(B); and 

9 ‘‘(ii) include an assurance that the 

10 program to be assisted shall— 

11 ‘‘(I) establish a generalized adult 

12 bilingual workforce training and edu13 cation model that integrates English 

14 language acquisition and occupational 

15 training, and incorporates the unique 

16 linguistic and cultural factors of the 

17 participants; 

18 ‘‘(II) establish a framework by 

19 which the employer, employee, and 

20 other relevant members of the eligible 

21 entity can create a career development 

22 and training plan that assists both the 

23 employer and the employee to meet 

24 their long-term needs; 
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1 ‘‘(III) ensure that the framework 

2 established under subclause (II) takes 

3 into consideration the knowledge, 

4 skills, and abilities of the employee 

5 with respect to both the current and 

6 economic conditions of the employer 

7 and future labor market conditions 

8 relevant to the local area; and 

9 ‘‘(IV) establish identifiable meas10 ures so that the progress of the em11 ployee and employer and the relative 

12 efficacy of the program can be evalu13 ated and best practices identified. 

14 ‘‘(6) CRITERIA.—The Secretary shall establish 

15 criteria for awarding grants under this subsection. 

16 ‘‘(7) INTEGRATED WORKFORCE TRAINING PRO17 GRAMS.— 

18 ‘‘(A) PROGRAM COMPONENTS.— 

19 ‘‘(i) REQUIRED COMPONENTS.—Each 

20 program that receives funding under this 

21 subsection shall— 

22 ‘‘(I) test an individual’s English 

23 language proficiency levels to assess 

24 oral and literacy gains from the begin-
253 

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1 ning and throughout program enroll2 ment; 

3 ‘‘(II) combine training specific to 

4 a particular occupation or occupa5 tional cluster, with— 

6 ‘‘(aa) English language in7 struction, such as instruction 

8 through an English as a Second 

9 Language program, or an 

10 English for Speakers of Other 

11 Languages program; 

12 ‘‘(bb) basic skills instruc13 tion; and 

14 ‘‘(cc) supportive services; 

15 ‘‘(III) effectively integrate public 

16 and private sector entities, including 

17 the local workforce investment system 

18 and its functions, to achieve the goals 

19 of the program; and 

20 ‘‘(IV) require matching or in21 kind resources from private and non22 profit entities. 

23 ‘‘(ii) PERMISSIBLE COMPONENTS.— 

24 The program may offer other services, as 

25 necessary to promote successful participa-
254 

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1 tion and completion, including work-based 

2 learning, substance abuse treatment, and 

3 mental health services. 

4 ‘‘(B) GOAL.—Each program that receives 

5 funding under this subsection shall be designed 

6 to prepare limited English proficient adults for, 

7 and place such adults in employment in, grow8 ing industries with identifiable career ladder 

9 paths. 

10 ‘‘(C) PROGRAM TYPES.—In selecting pro11 grams to receive funding under this subsection, 

12 the Secretary shall select programs that meet 1 

13 or more of the following criteria: 

14 ‘‘(i) A program that— 

15 ‘‘(I) serves unemployed, limited 

16 English proficient individuals with sig17 nificant work experience or substan18 tial education but persistently low 

19 wages; and 

20 ‘‘(II) aims to prepare such indi21 viduals for, and place such individuals 

22 in, higher paying employment, defined 

23 for purposes of this subparagraph as 

24 employment that provides at least 75 
255 

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1 percent of the median wage in the 

2 local area. 

3 ‘‘(ii) A program that— 

4 ‘‘(I) serves limited English pro5 ficient individuals with lower levels of 

6 oral and written fluency, who are 

7 working but at persistently low wages; 

8 and 

9 ‘‘(II) aims to prepare such indi10 viduals for, and place such individuals 

11 in, higher paying employment, 

12 through services provided at the work13 site, or at a location central to several 

14 work sites, during work hours. 

15 ‘‘(iii) A program that— 

16 ‘‘(I) serves unemployed, limited 

17 English proficient individuals with 

18 lower levels of oral and written flu19 ency, who have little or no work expe20 rience; and 

21 ‘‘(II) aims to prepare such indi22 viduals for, and place such individuals 

23 in, employment through services that 

24 include subsidized employment, in ad-
256 

•S 9 IS 

1 dition to the components required in 

2 subparagraph (A)(i). 

3 ‘‘(iv) A program that includes funds 

4 from private and nonprofit entities. 

5 ‘‘(D) PROGRAM APPROACHES.—In select6 ing programs to receive funding under this sub7 section, the Secretary shall select programs 

8 with different approaches to integrated work9 force training, in different contexts, in order to 

10 obtain comparative data on multiple approaches 

11 to integrated workforce training and English 

12 language instruction, to ensure programs are 

13 tailored to characteristics of individuals with 

14 varying skill levels and to assess how different 

15 curricula work for limited English proficient 

16 populations. Such approaches may include— 

17 ‘‘(i) bilingual programs in which the 

18 workplace language component and the 

19 training are conducted in a combination of 

20 an individual’s native language and 

21 English; 

22 ‘‘(ii) integrated workforce training 

23 programs that combine basic skills, lan24 guage instruction, and job specific skills 

25 training; or 
257 

•S 9 IS 

1 ‘‘(iii) sequential programs that provide 

2 a progression of skills, language, and train3 ing to ensure success upon an individual’s 

4 completion of the program. 

5 ‘‘(8) EVALUATION BY ELIGIBLE ENTITY.—Each 

6 eligible entity that receives a grant under this sub7 section for a program shall carry out a continuous 

8 program evaluation and an evaluation specific to the 

9 last phase of the program operations. 

10 ‘‘(9) EVALUATION BY SECRETARY.— 

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

12 conduct an evaluation of program impacts of 

13 the programs funded under the demonstration 

14 project, with a random assignment, experi15 mental design impact study done at each work16 site at which such a program is carried out. 

17 ‘‘(B) DATA COLLECTION AND ANALYSIS.— 

18 The Secretary shall collect and analyze the data 

19 from the demonstration project to determine 

20 program effectiveness, including gains in lan21 guage proficiency, acquisition of skills, and job 

22 advancement for program participants. 

23 ‘‘(C) REPORT.—The Secretary shall pre24 pare and submit to the Committee on Health, 

25 Education, Labor, and Pensions of the Senate 
258 

•S 9 IS 

1 and the Committee on Education and the 

2 Workforce of the House of Representatives, and 

3 make available to the public, a report on the 

4 demonstration project, including the results of 

5 the evaluation. 

6 ‘‘(10) TECHNICAL ASSISTANCE.—The Secretary 

7 shall provide technical assistance to recipients of 

8 grants under this subsection throughout the grant 

9 periods. 

10 ‘‘(11) AUTHORIZATION OF APPROPRIATIONS.— 

11 In addition to amounts authorized to be appro12 priated under section 174(b), there is authorized to 

13 be appropriated $10,000,000 for fiscal year 2006 to 

14 carry out this subsection.’’. 

15 SEC. 434F. NATIONAL DISLOCATED WORKER GRANTS. 

16 (a) IN GENERAL.—Section 173 (29 U.S.C. 2918) is 

17 amended— 

18 (1) by striking the heading and inserting the 

19 following: 

20 ‘‘SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.’’; 

21 and 

22 (2) in subsection (a)— 

23 (A) by striking the matter preceding para24 graph (1) and inserting the following: 
259 

•S 9 IS 

1 ‘‘(a) IN GENERAL.—The Secretary is authorized to 

2 award national dislocated worker grants—’’; 

3 (B) in paragraph (1), by striking ‘‘sub4 section (c)’’ and inserting ‘‘subsection (b)’’; 

5 (C) in paragraph (3), by striking ‘‘and’’ 

6 after the semicolon; and 

7 (D) by striking paragraph (4) and insert8 ing the following: 

9 ‘‘(4) to a State or entity (as defined in sub10 section (b)(1)(B)) to carry out subsection (e), in11 cluding providing assistance to eligible individuals; 

12 ‘‘(5) to a State or entity (as defined in sub13 section (b)(1)(B)) to carry out subsection (f), includ14 ing providing assistance to eligible individuals; 

15 ‘‘(6) to provide additional assistance to a State 

16 board or local board where a higher than average de17 mand for employment and training services for dis18 located members of the Armed Forces, or spouses, 

19 as defined in section 101(9)(E), of members of the 

20 Armed Forces as described in subsection 

21 (b)(2)(A)(iv), exceeds State and local resources for 

22 providing such services, and where such programs 

23 are to be carried out in partnership with the Depart24 ment of Defense and Department of Veterans Af25 fairs transition assistance programs; and 
260 

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1 ‘‘(7) to provide assistance to a State for state2 wide or local use in order to— 

3 ‘‘(A) address cases in which there have 

4 been worker dislocations across multiple sectors 

5 or across multiple local areas and such workers 

6 remain dislocated; 

7 ‘‘(B) coordinate the State plan described in 

8 section 112 with emerging economic develop9 ment needs; and 

10 ‘‘(C) train eligible individuals who are dis11 located workers described in subparagraph (A). 

12 The Secretary shall issue a final decision on an application 

13 for a national dislocated worker grant under this sub14 section not later than 60 calendar days after receipt of 

15 the application. The Secretary shall issue a notice of obli16 gation for such a grant not later than 10 days after the 

17 award of the grant.’’. 

18 (b) ADMINISTRATION AND ADDITIONAL ASSIST19 ANCE.—Section 173 (29 U.S.C. 2918) is amended— 

20 (1) by striking subsection (b); 

21 (2) by redesignating subsections (c) through (g) 

22 as subsections (b) through (f), respectively; 

23 (3) in paragraph (2) of subsection (b) (as re24 designated by paragraph (2))— 
261 

•S 9 IS 

1 (A) in subparagraph (A), in the matter 

2 preceding clause (i), by striking ‘‘national emer3 gency grant’’ and inserting ‘‘national dislocated 

4 worker grant’’; and 

5 (B) in subparagraph (C), by striking ‘‘na6 tional emergency grants’’ and inserting ‘‘na7 tional dislocated worker grants’’; 

8 (4) by striking subsection (d) (as redesignated 

9 by paragraph (2)) and inserting the following: 

10 ‘‘(d) ADDITIONAL ASSISTANCE.— 

11 ‘‘(1) IN GENERAL.—From the amount appro12 priated and made available to carry out this section 

13 for any program year, the Secretary shall use not 

14 more than $20,000,000 to make grants to States to 

15 provide employment and training activities under 

16 section 134, in accordance with subtitle B. 

17 ‘‘(2) ELIGIBLE STATES.—The Secretary shall 

18 make a grant under paragraph (1) to a State for a 

19 program year if— 

20 ‘‘(A) the amount of the allotment that was 

21 made to the State for the program year 2003 

22 under the formula specified in section 

23 132(b)(1)(B) as such section was in effect on 

24 July 1, 2003, is greater than 
262 

•S 9 IS 

1 ‘‘(B) the amount of the allotment that 

2 would be made to the State for the program 

3 year under the formula specified in section 

4 132(b)(1)(B). 

5 ‘‘(3) AMOUNT OF GRANTS.—Subject to para6 graph (1), the amount of the grant made under 

7 paragraph (1) to a State for a program year shall 

8 be based on the difference between— 

9 ‘‘(A) the amount of the allotment that was 

10 made to the State for the program year 2003 

11 under the formula specified in section 

12 132(b)(1)(B) as such section was in effect on 

13 July 1, 2003; and 

14 ‘‘(B) the amount of the allotment that 

15 would be made to the State for the program 

16 year under the formula specified in section 

17 132(b)(1)(B).’’; 

18 (5) in subsection (e) (as redesignated by para19 graph (2))— 

20 (A) in paragraph (1), by striking ‘‘para21 graph (4)(A)’’ and inserting ‘‘paragraph (4)’’; 

22 (B) in paragraph (2), by striking ‘‘sub23 section (g)’’ and inserting ‘‘subsection (f)’’; 
263 

•S 9 IS 

1 (C) in paragraph (3)(B), by striking ‘‘sub2 section (a)(4)(A)’’ and inserting ‘‘subsection 

3 (a)(4)’’; 

4 (D) in paragraph (4), by striking ‘‘sub5 section (g)’’ and inserting ‘‘subsection (f)’’; 

6 (E) in paragraph (5), by striking ‘‘sub7 section (g)’’ and inserting ‘‘subsection (f)’’; and 

8 (F) in paragraph (6)— 

9 (i) by striking ‘‘subsection (g)’’ and 

10 inserting ‘‘subsection (f)’’; and 

11 (ii) by striking ‘‘subsection (c)(1)(B)’’ 

12 and inserting ‘‘subsection (b)(1)(B)’’; and 

13 (6) in subsection (f) (as redesignated by para14 graph (2))— 

15 (A) in paragraph (1)— 

16 (i) by striking ‘‘paragraph (4)(B)’’ 

17 and inserting ‘‘paragraph (5)’’; and 

18 (ii) by striking ‘‘subsection (f)(1)(A)’’ 

19 and inserting ‘‘subsection (e)(1)(A)’’; and 

20 (B) in paragraph (4)(B), by striking ‘‘sub21 section (a)(4)(B)’’ and inserting ‘‘subsection 

22 (a)(5)’’. 
264 

•S 9 IS 

1 SEC. 434G. AUTHORIZATION OF APPROPRIATIONS FOR NA2 TIONAL ACTIVITIES. 

3 (a) IN GENERAL.—Section 174(a)(1) (29 U.S.C. 

4 2919(a)(1)) is amended by striking ‘‘1999 through 2003’’ 

5 and inserting ‘‘2006 through 2011’’. 

6 (b) RESERVATIONS.—Section 174(b) (29 U.S.C. 

7 2919(b)) is amended to read as follows: 

8 ‘‘(b) TECHNICAL ASSISTANCE; DEMONSTRATION AND

9 PILOT PROJECTS, EVALUATIONS, INCENTIVE GRANTS.— 

10 There are authorized to be appropriated to carry out sec11 tions 170 through 172, section 136(i), and section 503 

12 such sums as may be necessary for each of fiscal years 

13 2006 through 2011.’’. 

14 (c) ASSISTANCE FOR ELIGIBLE WORKERS.—Section 

15 174(c) (29 U.S.C. 2919(c)) is amended— 

16 (1) in paragraphs (1)(A) and (2)(A), by strik17 ing ‘‘subsection (a)(4)(A)’’ and inserting ‘‘subsection 

18 (a)(4)’’; and 

19 (2) in paragraphs (1)(B) and (2)(B), by strik20 ing ‘‘subsection (a)(4)(B)’’ and inserting ‘‘subsection 

21 (a)(5)’’. 

22 Subchapter E—Administration 

23 SEC. 435. REQUIREMENTS AND RESTRICTIONS. 

24 Section 181(e) (29 U.S.C. 2931(e)) is amended by 

25 striking ‘‘economic development activities,’’. 
265 

•S 9 IS 

1 SEC. 435A. REPORTS. 

2 Section 185(c) (29 U.S.C. 2935(c)) is amended— 

3 (1) in paragraph (2), by striking ‘‘and’’ after 

4 the semicolon; 

5 (2) in paragraph (3), by striking the period and 

6 inserting ‘‘; and’’; and 

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

8 ‘‘(4) shall have the option to submit or dissemi9 nate electronically any reports, records, plans, or any 

10 other data that are required to be collected or dis11 seminated under this title.’’. 

12 SEC. 435B. ADMINISTRATIVE PROVISIONS. 

13 (a) ANNUAL REPORT.—Section 189(d) (29 U.S.C. 

14 2939(d)) is amended— 

15 (1) in paragraph (3), by striking ‘‘and’’ after 

16 the semicolon; 

17 (2) by redesignating paragraph (4) as para18 graph (5); and 

19 (3) by inserting after paragraph (3) the fol20 lowing: 

21 ‘‘(4) the negotiated levels of performance of the 

22 States, the States’ requests for adjustments of such 

23 levels, and the adjustments of such levels that are 

24 made; and’’. 

25 (b) AVAILABILITY.—Section 189(g)(2) (29 U.S.C. 

26 2939(g)(2)) is amended, in the first sentence— 
266 

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1 (1) by striking ‘‘Funds’’ and inserting ‘‘Except 

2 as otherwise provided in this paragraph, funds’’; and 

3 (2) by striking ‘‘each State receiving’’ and in4 serting ‘‘each recipient of’’. 

5 (c) GENERAL WAIVERS.—Section 189(i)(4) (29 

6 U.S.C. 2939(i)(4)) is amended— 

7 (1) in subparagraph (A)(i), by inserting ‘‘the 

8 funding of infrastructure costs for one-stop centers,’’ 

9 after ‘‘local boards,’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(D) EXPEDITED REQUESTS.—The Sec12 retary shall expedite requests for waivers of 

13 statutory or regulatory requirements that have 

14 been approved for a State pursuant to subpara15 graph (B), if the requirements of this para16 graph have been satisfied.’’. 

17 SEC. 435C. USE OF CERTAIN REAL PROPERTY. 

18 Section 193 (29 U.S.C. 2943) is amended to read as 

19 follows: 

20 ‘‘SEC. 193. TRANSFER OF FEDERAL EQUITY IN STATE EM21 PLOYMENT SECURITY AGENCY REAL PROP22 ERTY TO THE STATES. 

23 ‘‘(a) TRANSFER OF FEDERAL EQUITY.—Notwith24 standing any other provision of law, any Federal equity 

25 acquired in real property through grants to States award-
267 

•S 9 IS 

1 ed under title III of the Social Security Act (42 U.S.C. 

2 501 et seq.) or under the Wagner-Peyser Act (29 U.S.C. 

3 49 et seq.) is transferred to the States that used the 

4 grants for the acquisition of such equity. The portion of 

5 any real property that is attributable to the Federal equity 

6 transferred under this section shall be used to carry out 

7 activities authorized under title III of the Social Security 

8 Act or the Wagner-Peyser Act. Any disposition of such 

9 real property shall be carried out in accordance with the 

10 procedures prescribed by the Secretary and the portion of 

11 the proceeds from the disposition of such real property 

12 that is attributable to the Federal equity transferred 

13 under this section shall be used to carry out activities au14 thorized under title III of the Social Security Act or the 

15 Wagner-Peyser Act. 

16 ‘‘(b) LIMITATION ON USE.—A State shall not use 

17 funds awarded under title III of the Social Security Act 

18 or the Wagner-Peyser Act to amortize the costs of real 

19 property that is purchased by any State on or after the 

20 effective date of this provision.’’. 

21 SEC. 435D. TABLE OF CONTENTS. 

22 Section 1(b) (29 U.S.C. 9201 note) is amended— 

23 (1) by striking the item relating to section 106 

24 and inserting the following: 

‘‘Sec. 106. Purposes.’’; 
268 

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1 (2) by striking the item relating to section 123 

2 and inserting the following: 

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

3 (3) by striking the item relating to section 169 

4 and inserting the following: 

‘‘Sec. 169. Youth challenge grants.’’; 

5 (4) by striking the item relating to section 173 

6 and inserting the following: 

‘‘Sec. 173. National dislocated worker grants.’’; 

7 (5) by striking the item relating to section 193 

8 and inserting the following: 

‘‘Sec. 193. Transfer of Federal equity in State employment security agency real 

property to the States.’’; 

9 (6) by inserting after the item relating to sec10 tion 243 the following: 

‘‘Sec. 244. Integrated English literacy and civics education.’’; and 

11 (7) by striking the item relating to section 502. 

12 Subchapter F—Incentive Grants 

13 SEC. 436. INCENTIVE GRANTS. 

14 Section 503 (20 U.S.C. 9273) is amended— 

15 (1) by striking subsection (a) and inserting the 

16 following: 

17 ‘‘(a) IN GENERAL.— 

18 ‘‘(1) PRIOR TO JULY 1, 2005.—Prior to July 1, 

19 2005, the Secretary shall award a grant to each 

20 State in accordance with the provisions of this sec21 tion as this section was in effect on July 1, 2003. 
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1 ‘‘(2) BEGINNING ON JULY 1, 2005.—Beginning 

2 on July 1, 2005, the Secretary shall award a grant 

3 to each State on the basis— 

4 ‘‘(A) of the State’s exceeding the State ad5 justed levels of performance for title I, the ad6 justed levels of performance for title II, and the 

7 levels of performance for programs under the 

8 Carl D. Perkins Vocational and Technical Edu9 cation Act of 1998 (20 U.S.C. 2301 et seq.), 

10 for the purpose of carrying out an innovative 

11 program consistent with the requirements of 

12 any one or more of the programs within title I, 

13 title II, or such Act, respectively; 

14 ‘‘(B) of exemplary performance of the 

15 States in serving hard-to-serve populations (as 

16 defined in section 101) (including performance 

17 relating to the levels of service provided and the 

18 performance outcomes on such performance 

19 measures with respect to the populations); 

20 ‘‘(C) of States that are effectively— 

21 ‘‘(i) coordinating multiple systems 

22 into a more effective workforce investment 

23 system, including coordination of employ24 ment services under the Wagner-Peyser 

25 Act (29 U.S.C. 49 et seq.) and core activi-
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1 ties under title I as well as partner pro2 grams described in section 121; 

3 ‘‘(ii) expanding access to training, in4 cluding through increased leveraging of re5 sources other than those funded through 

6 programs under title I; or 

7 ‘‘(iii) implementing innovative busi8 ness and economic development initiatives; 

9 or 

10 ‘‘(D) of such other factors relating to the 

11 performance of the States under title I as the 

12 Secretary determines are appropriate.’’; and 

13 (2) in subsection (b)(2), by adding at the end 

14 the following: 

15 ‘‘(D) USE OF FUNDS.—The funds awarded 

16 to a State under this section may be used to 

17 carry out any activities authorized for States 

18 under chapters 4 and 5 of subtitle B of title I, 

19 title II, and the Carl D. Perkins Vocational and 

20 Technical Education Act of 1998 (20 U.S.C. 

21 2301 et seq.), including demonstration projects 

22 and innovative programs for hard-to-serve pop23 ulations (as defined in section 101).’’. 
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1 Subchapter G—Conforming Amendments 

2 SEC. 437. CONFORMING AMENDMENTS. 

3 (a) OLDER AMERICANS ACT OF 1965.—Section 

4 512(a) of the Older Americans Act of 1965 (42 U.S.C. 

5 3056j(a)) is amended by striking ‘‘(B)(vi)’’ and inserting 

6 ‘‘(B)(v)’’. 

7 (b) ADULT EDUCATION AND FAMILY LITERACY

8 ACT.—Section 212(b)(3)(A)(vi) of the Adult Education 

9 and Family Literacy Act (20 U.S.C. 9212(b)(3)(A)(vi)) 

10 is amended by striking ‘‘the representatives described in 

11 section 136(i)(1)’’ and inserting ‘‘representatives of appro12 priate Federal agencies, and representatives of States and 

13 political subdivisions, business and industry, employees, el14 igible providers of employment and training activities (as 

15 defined in section 101), educators, and participants (as 

16 defined in section 101), with expertise regarding workforce 

17 investment policies and workforce investment activities (as 

18 defined in section 101)’’. 

19 CHAPTER 2—AMENDMENTS TO THE 

20 ADULT EDUCATION AND FAMILY LIT21 ERACY ACT 

22 SEC. 441. SHORT TITLE; PURPOSE. 

23 (a) SHORT TITLE.—This chapter may be cited as the 

24 ‘‘Adult Education and Family Literacy Act Amendments 

25 of 2005’’. 
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1 (b) PURPOSE.—Section 202 of the Adult Education 

2 and Family Literacy Act (20 U.S.C. 9201) is amended— 

3 (1) in paragraph (2), by striking ‘‘and’’ after 

4 the semicolon; 

5 (2) in paragraph (3), by striking ‘‘education.’’ 

6 and inserting ‘‘education and in the transition to 

7 postsecondary education; and’’; and 

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

9 ‘‘(4) assist immigrants and other individuals 

10 with limited English proficiency in improving their 

11 reading, writing, speaking, and mathematics skills 

12 and acquiring an understanding of the American 

13 free enterprise system, individual freedom, and the 

14 responsibilities of citizenship.’’. 

15 SEC. 441A. DEFINITIONS. 

16 Section 203 of the Adult Education and Family Lit17 eracy Act (20 U.S.C. 9202) is amended— 

18 (1) in paragraph (1)— 

19 (A) in the matter preceding subparagraph 

20 (A), by striking ‘‘services or instruction below 

21 the postsecondary level’’ and inserting ‘‘aca22 demic instruction and education services below 

23 the postsecondary level that increase an individ24 ual’s ability to read, write, and speak in 

25 English and perform mathematics’’; and 
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1 (B) by striking subparagraph (C)(i) and 

2 inserting the following: 

3 ‘‘(i) are basic skills deficient as de4 fined in section 101;’’; 

5 (2) in paragraph (2), by striking ‘‘activities de6 scribed in section 231(b)’’ and inserting ‘‘programs 

7 and services which include reading, writing, speak8 ing, or mathematics skills, workplace literacy activi9 ties, family literacy activities, English language ac10 quisition activities, or other activities necessary for 

11 the attainment of a secondary school diploma or its 

12 State recognized equivalent’’; 

13 (3) in paragraph (5)— 

14 (A) by inserting ‘‘an organization that has 

15 demonstrated effectiveness in providing adult 

16 education, that may include’’ after ‘‘means’’; 

17 (B) in subparagraph (B), by striking ‘‘of 

18 demonstrated effectiveness’’; 

19 (C) in subparagraph (C), by striking ‘‘of 

20 demonstrated effectiveness’’; and 

21 (D) in subparagraph (I), by inserting ‘‘or 

22 coalition’’ after ‘‘consortium’’; 

23 (4) in paragraph (6)— 

24 (A) by striking ‘‘LITERACY PROGRAM’’ and 

25 inserting ‘‘LANGUAGE ACQUISITION PROGRAM’’; 
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1 (B) by striking ‘‘literacy program’’ and in2 serting ‘‘language acquisition program’’; and 

3 (C) by inserting ‘‘reading, writing, and 

4 speaking’’ after ‘‘competence in’’; 

5 (5) by redesignating paragraphs (7) through 

6 (18) as paragraphs (8) through (19), respectively; 

7 (6) by inserting after paragraph (6) the fol8 lowing: 

9 ‘‘(7) ESSENTIAL COMPONENTS OF READING IN10 STRUCTION.—The term ‘essential components of 

11 reading instruction’ has the meaning given the term 

12 in section 1208 of the Elementary and Secondary 

13 Education Act of 1965 (20 U.S.C. 6368).’’; and 

14 (7) by striking paragraph (19), as redesignated 

15 by paragraph (4), and inserting the following: 

16 ‘‘(19) WORKPLACE LITERACY PROGRAM.—The 

17 term ‘workplace literacy program’ means an edu18 cational program designed to improve the produc19 tivity of the workforce through the improvement of 

20 literacy skills that is offered by an eligible provider 

21 in collaboration with an employer or an employee or22 ganization at a workplace, at an off-site location, or 

23 in a simulated workplace environment.’’. 
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1 SEC. 441B. AUTHORIZATION OF APPROPRIATIONS. 

2 Section 205 of the Adult Education and Family Lit3 eracy Act (20 U.S.C. 9204) is amended— 

4 (1) by striking ‘‘1999’’ and inserting ‘‘2006’’; 

5 and 

6 (2) by striking ‘‘2003’’ and inserting ‘‘2011’’. 

7 SEC. 441C. HOME SCHOOLS. 

8 Section 204 of the Adult Education and Family Lit9 eracy Act (20 U.S.C. 9203) is amended to read as follows: 

10 ‘‘SEC. 204. HOME SCHOOLS. 

11 ‘‘Nothing in this title shall be construed to affect 

12 home schools, whether a home school is treated as a home 

13 school or a private school under State law, or to compel 

14 a parent engaged in home schooling to participate in an 

15 English literacy program, family literacy services, or adult 

16 education.’’. 

17 SEC. 441D. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE 

18 AGENCIES; ALLOTMENTS. 

19 Section 211 of the Adult Education and Family Lit20 eracy Act (20 U.S.C. 9211) is amended— 

21 (1) by striking subsection (a) and inserting the 

22 following: 

23 ‘‘(a) RESERVATION OF FUNDS.—From the sum ap24 propriated under section 205 for a fiscal year, the Sec25 retary— 
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1 ‘‘(1) shall reserve 1.5 percent to carry out sec2 tion 242, except that the amount so reserved shall 

3 not exceed $10,000,000; 

4 ‘‘(2) shall reserve 1.5 percent to carry out sec5 tion 243 and subsection (f)(4), except that the 

6 amount so reserved shall not exceed $8,000,000; 

7 ‘‘(3) shall make available, to the Secretary of 

8 Labor, 1.72 percent for incentive grants under sec9 tion 136(i); and 

10 ‘‘(4) shall reserve 12 percent of the amount 

11 that remains after reserving funds under paragraphs 

12 (1), (2) and (3) to carry out section 244.’’; 

13 (2) in subsection (c)(1)(B), by striking 

14 ‘‘$250,000’’ and inserting ‘‘$350,000’’; 

15 (3) by striking subsection (d) and inserting the 

16 following: 

17 ‘‘(d) QUALIFYING ADULT.—For the purpose of sub18 section (c)(2), the term ‘qualifying adult’ means an adult 

19 who— 

20 ‘‘(1) is not less than 16 years of age; 

21 ‘‘(2) is beyond the age of compulsory school at22 tendance under the law of the State or outlying 

23 area; 

24 ‘‘(3) does not have a secondary school diploma 

25 or its recognized equivalent; and 
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1 ‘‘(4) is not enrolled in secondary school.’’; 

2 (4) in subsection (e)— 

3 (A) by striking paragraph (2) and insert4 ing the following: 

5 ‘‘(2) AWARD BASIS.—The Secretary shall award 

6 grants pursuant to paragraph (1) on a competitive 

7 basis and pursuant to recommendations from the 

8 Pacific Region Educational Laboratory in Honolulu, 

9 Hawaii.’’; and 

10 (B) in paragraph (3), by striking ‘‘shall’’ 

11 and all that follows through the period and in12 serting ‘‘shall be eligible to receive a grant 

13 under this title until the date when an agree14 ment for the extension of the United States 

15 education assistance under the Compact of Free 

16 Association for each of the Freely Associated 

17 States becomes effective.’’; and 

18 (5) by striking subsection (f) and inserting the 

19 following: 

20 ‘‘(f) HOLD-HARMLESS PROVISIONS.— 

21 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

22 (c) and subject to paragraph (2), for fiscal year 

23 2005 and each succeeding fiscal year, no eligible 

24 agency shall receive an allotment under this section 

25 that is less than 90 percent of the allotment the eli-
278 

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1 gible agency received for the preceding fiscal year 

2 under this section. 

3 ‘‘(2) 100 PERCENT ALLOTMENT.—Notwith4 standing paragraphs (1) and (2) of subsection (e), 

5 an eligible agency that receives only an initial allot6 ment under subsection (c)(1) (and no additional al7 lotment under subsection (c)(2)) shall receive an al8 lotment under this section that is equal to 100 per9 cent of the initial allotment under subsection (c)(1). 

10 ‘‘(3) RATABLE REDUCTION.—If for any fiscal 

11 year the amount available for allotment under this 

12 subtitle is insufficient to satisfy the provisions of 

13 paragraphs (1) and (2), the Secretary shall ratably 

14 reduce the payments to all eligible agencies, as nec15 essary. 

16 ‘‘(4) ADDITIONAL ASSISTANCE.— 

17 ‘‘(A) IN GENERAL.—From amounts re18 served under subsection (a)(2), the Secretary 

19 shall make grants to eligible agencies described 

20 in subparagraph (B) to enable such agencies to 

21 provide activities authorized under chapter 2. 

22 ‘‘(B) ELIGIBILITY.—An eligible agency is 

23 eligible to receive a grant under this paragraph 

24 for a fiscal year if the amount of the allotment 

25 such agency receives under this section for the 
279 

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1 fiscal year is less than the amount such agency 

2 would have received for the fiscal year if the al3 lotment formula under this section as in effect 

4 on September 30, 2003, were in effect for such 

5 year. 

6 ‘‘(C) AMOUNT OF GRANT.—The amount of 

7 a grant made to an eligible agency under this 

8 paragraph for a fiscal year shall be the dif9 ference between— 

10 ‘‘(i) the amount of the allotment such 

11 agency would have received for the fiscal 

12 year if the allotment formula under this 

13 section as in effect on September 30, 2003, 

14 were in effect for such year; and 

15 ‘‘(ii) the amount of the allotment such 

16 agency receives under this section for the 

17 fiscal year.’’. 

18 SEC. 441E. PERFORMANCE ACCOUNTABILITY SYSTEM. 

19 Section 212 of the Adult Education and Family Lit20 eracy Act (20 U.S.C. 9212) is amended— 

21 (1) in subsection (b)— 

22 (A) in paragraph (1)(A)(ii), by striking 

23 ‘‘additional indicators of performance (if any)’’ 

24 and inserting ‘‘employment performance indica25 tors’’; 
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1 (B) in paragraph (2)— 

2 (i) in subparagraph (A)— 

3 (I) in clause (i), by striking 

4 ‘‘Demonstrated’’ and inserting ‘‘Meas5 urable’’; 

6 (II) by striking clause (ii) and in7 serting the following: 

8 ‘‘(ii) Placement in, retention in, or 

9 completion of, postsecondary education or 

10 other training programs.’’; and 

11 (III) in clause (iii), by inserting 

12 ‘‘(including recognized alternative 

13 standards for individuals with disabil14 ities)’’ after ‘‘equivalent’’; 

15 (ii) by redesignating subparagraph 

16 (B) as subparagraph (C); 

17 (iii) by inserting after subparagraph 

18 (A), the following: 

19 ‘‘(B) EMPLOYMENT PERFORMANCE INDI20 CATORS.—An eligible agency shall identify in 

21 the State plan individual participant employ22 ment performance indicators, including entry 

23 into unsubsidized employment, retention in un24 subsidized employment, and career advance25 ment. The State workforce investment board 
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1 shall assist the eligible agency in obtaining and 

2 using quarterly wage records to collect data for 

3 such indicators, consistent with applicable Fed4 eral and State privacy laws.’’; 

5 (iv) in subparagraph (C), as redesig6 nated by clause (ii), by inserting ‘‘rel7 evant’’ after ‘‘additional’’; and 

8 (v) by adding at the end the following: 

9 ‘‘(D) INDICATORS FOR WORKPLACE LIT10 ERACY PROGRAMS.—Special accountability 

11 measures may be negotiated for workplace lit12 eracy programs.’’; and 

13 (C) in paragraph (3)— 

14 (i) in subparagraph (A)— 

15 (I) in clause (i)(II), by striking 

16 ‘‘in performance’’ and inserting ‘‘the 

17 agency’s performance outcomes in an 

18 objective, quantifiable, and measur19 able form’’; 

20 (II) in clause (ii), by striking ‘‘3 

21 programs years’’ and inserting ‘‘2 

22 program years’’; 

23 (III) in clause (iii), by striking 

24 ‘‘FIRST 3 YEARS’’ and inserting 

25 ‘‘FIRST 2 YEARS’’; 
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1 (IV) in clause (iii), by striking 

2 ‘‘first 3 program years’’ and inserting 

3 ‘‘first 2 program years’’; 

4 (V) in clause (v), by striking 

5 ‘‘4TH AND 5TH’’ and inserting ‘‘3RD

6 AND 4TH’’; 

7 (VI) in clause (v), by striking ‘‘to 

8 the fourth’’ and inserting ‘‘to the 

9 third’’; 

10 (VII) in clause (v), by striking 

11 ‘‘fourth and fifth’’ and inserting 

12 ‘‘third and fourth’’; and 

13 (VIII) in clause (vi), by striking 

14 ‘‘(II)’’ and inserting ‘‘(I)’’; 

15 (ii) in subparagraph (B)— 

16 (I) by striking the heading and 

17 inserting ‘‘LEVELS OF EMPLOYMENT

18 PERFORMANCE’’; 

19 (II) by striking ‘‘may’’ and in20 serting ‘‘shall’’; and 

21 (III) by striking ‘‘additional’’ and 

22 inserting ‘‘employment’’; and 

23 (iii) by adding at the end the fol24 lowing: 
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1 ‘‘(C) ALTERNATIVE ASSESSMENT SYS2 TEMS.—Eligible agencies may approve the use 

3 of assessment systems that are not commer4 cially available standardized systems if such 

5 systems meet the Standards for Educational 

6 and Psychological Testing issued by the Joint 

7 Committee on Standards for Educational and 

8 Psychological Testing of the American Edu9 cational Research Association, the American 

10 Psychological Association, and the National 

11 Council on Measurement in Education.’’; 

12 (2) in subsection (c)— 

13 (A) in paragraph (1)— 

14 (i) by inserting ‘‘the Governor, the 

15 State legislature, and the State workforce 

16 investment board’’ after ‘‘Secretary’’; and 

17 (ii) by striking ‘‘including’’ and all 

18 that follows through the period and insert19 ing ‘‘including the following: 

20 ‘‘(A) Information on the levels of perform21 ance achieved by the eligible agency with re22 spect to the core indicators of performance, and 

23 employment performance indicators. 
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1 ‘‘(B) The number and type of each eligible 

2 provider that receives funding under such 

3 grant. 

4 ‘‘(C) The number of enrollees 16 to 18 

5 years of age who enrolled in adult education not 

6 later than 1 year after participating in sec7 ondary school education.’’; 

8 (B) in paragraph (2)(A), by inserting ‘‘eli9 gible providers and’’ after ‘‘available to’’; and 

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

11 ‘‘(3) DATA ACCESS.—The report made available 

12 under paragraph (2) shall indicate which eligible 

13 agencies did not have access to State unemployment 

14 insurance wage data in measuring employment per15 formance indicators.’’; and 

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

17 ‘‘(d) PROGRAM IMPROVEMENT.— 

18 ‘‘(1) IN GENERAL.—If the Secretary determines 

19 that an eligible agency did not meet its adjusted lev20 els of performance for the core indicators of per21 formance described in subsection (b)(2)(A) for any 

22 program year, the eligible agency shall— 

23 ‘‘(A) work with the Secretary to develop 

24 and implement a program improvement plan for 

25 the 2 program years succeeding the program 
285 

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1 year in which the eligible agency did not meet 

2 its adjusted levels of performance; and 

3 ‘‘(B) revise its State plan under section 

4 224, if necessary, to reflect the changes agreed 

5 to in the program improvement plan. 

6 ‘‘(2) FURTHER ASSISTANCE.—If, after the pe7 riod described in paragraph (1)(A), the Secretary 

8 has provided technical assistance to the eligible 

9 agency but determines that the eligible agency did 

10 not meet its adjusted levels of performance for the 

11 core indicators of performance described in sub12 section (b)(2)(A), the Secretary may require the eli13 gible agency to make further revisions to the pro14 gram improvement plan described in paragraph (1). 

15 Such further revisions shall be accompanied by fur16 ther technical assistance from the Secretary.’’. 

17 SEC. 441F. STATE ADMINISTRATION. 

18 Section 221(1) of the Adult Education and Family 

19 Literacy Act (20 U.S.C. 9221(1)) is amended by striking 

20 ‘‘and implementation’’ and inserting ‘‘implementation, 

21 and monitoring’’. 

22 SEC. 441G. STATE DISTRIBUTION OF FUNDS; MATCHING RE23 QUIREMENT. 

24 Section 222 of the Adult Education and Family Lit25 eracy Act (20 U.S.C. 9222) is amended— 
286 

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1 (1) in subsection (a)— 

2 (A) in paragraph (1)— 

3 (i) by striking ‘‘82.5’’ the first place 

4 such term appears and inserting ‘‘80’’; and 

5 (ii) by striking ‘‘the 82.5 percent’’ 

6 and inserting ‘‘such amount’’; 

7 (B) in paragraph (2), by striking ‘‘not 

8 more than 12.5 percent’’ and inserting ‘‘not 

9 more than 15 percent’’; and 

10 (C) in paragraph (3), by striking 

11 ‘‘$65,000’’ and inserting ‘‘$75,000’’; and 

12 (2) in subsection (b)(1), by striking ‘‘equal to’’ 

13 and inserting ‘‘that is not less than’’. 

14 SEC. 441H. STATE LEADERSHIP ACTIVITIES. 

15 Section 223 of the Adult Education and Family Lit16 eracy Act (20 U.S.C. 9223) is amended— 

17 (1) in subsection (a)— 

18 (A) in the matter preceding paragraph (1), 

19 by inserting ‘‘to develop or enhance the adult 

20 education system of the State’’ after ‘‘activi21 ties’’; 

22 (B) in paragraph (1), by striking ‘‘instruc23 tion incorporating’’ and all that follows through 

24 the period and inserting ‘‘instruction incor25 porating the essential components of reading in-
287 

•S 9 IS 

1 struction and instruction provided by volunteers 

2 or by personnel of a State or outlying area.’’; 

3 (C) in paragraph (2), by inserting ‘‘, in4 cluding development and dissemination of in5 structional and programmatic practices based 

6 on the most rigorous research available in read7 ing, writing, speaking, mathematics, English 

8 language acquisition programs, distance learn9 ing and staff training’’ after ‘‘activities’’; 

10 (D) in paragraph (5), by striking ‘‘moni11 toring and’’; 

12 (E) by striking paragraph (6) and insert13 ing the following: 

14 ‘‘(6) The development and implementation of 

15 technology applications, translation technology, or 

16 distance learning, including professional development 

17 to support the use of instructional technology.’’; and 

18 (F) by striking paragraph (7) through 

19 paragraph (11) and inserting the following: 

20 ‘‘(7) Coordination with— 

21 ‘‘(A) other partners carrying out activities 

22 authorized under this Act; 

23 ‘‘(B) existing support services, such as 

24 transportation, child care, mental health serv25 ices, and other assistance designed to increase 
288 

•S 9 IS 

1 rates of enrollment in, and successful comple2 tion of adult education and literacy activities, 

3 for adults enrolled in such activities. 

4 ‘‘(8) Developing and disseminating curricula, 

5 including curricula incorporating the essential com6 ponents of reading instruction as they relate to 

7 adults. 

8 ‘‘(9) The provision of assistance to eligible pro9 viders in developing, implementing, and reporting 

10 measurable progress in achieving the objectives of 

11 this subtitle. 

12 ‘‘(10) The development and implementation of 

13 a system to assist in the transition from adult basic 

14 education to postsecondary education, including link15 ages with postsecondary educational institutions. 

16 ‘‘(11) Integration of literacy and English lan17 guage instruction with occupational skill training, 

18 and promoting linkages with employers. 

19 ‘‘(12) Activities to promote workplace literacy 

20 programs. 

21 ‘‘(13) Activities to promote and complement 

22 local outreach initiatives described in section 

23 243(b)(3)(F). 
289 

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1 ‘‘(14) In cooperation with efforts funded under 

2 sections 242 and 243, the development of curriculum 

3 frameworks and rigorous content standards that— 

4 ‘‘(A) specify what adult learners should 

5 know and be able to do in the areas of reading 

6 and language arts, mathematics, and English 

7 language acquisition; and 

8 ‘‘(B) take into consideration the following: 

9 ‘‘(i) State academic standards estab10 lished under section 1111(b) of the Ele11 mentary and Secondary Education Act of 

12 1965. 

13 ‘‘(ii) The current adult skills and lit14 eracy assessments used in the State. 

15 ‘‘(iii) The core indicators of perform16 ance established under section 

17 212(b)(2)(A). 

18 ‘‘(iv) Standards and academic require19 ments for enrollment in non-remedial, for20 credit, courses in State supported postsec21 ondary education institutions. 

22 ‘‘(v) Where appropriate, the basic and 

23 literacy skill content of occupational and 

24 industry skill standards widely used by 

25 business and industry in the State. 
290 

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1 ‘‘(15) In cooperation with efforts funded under 

2 sections 242 and 243, development and piloting of— 

3 ‘‘(A) new assessment tools and strategies 

4 that identify the needs and capture the gains of 

5 students at all levels, with particular emphasis 

6 on— 

7 ‘‘(i) students at the lowest achieve8 ment level; 

9 ‘‘(ii) students who have limited 

10 English proficiency; and 

11 ‘‘(iii) adults with learning disabilities; 

12 ‘‘(B) options for improving teacher quality 

13 and retention; and 

14 ‘‘(C) assistance in converting research into 

15 practice. 

16 ‘‘(16) The development and implementation of 

17 programs and services to meet the needs of adult 

18 learners with learning disabilities or limited English 

19 proficiency. 

20 ‘‘(17) Other activities of statewide significance 

21 that promote the purpose of this title.’’; and 

22 (2) in subsection (c), by striking ‘‘being State23 or outlying area-imposed’’ and inserting ‘‘being im24 posed by the State or outlying area’’. 
291 

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1 SEC. 441I. STATE PLAN. 

2 Section 224 of the Adult Education and Family Lit3 eracy Act (20 U.S.C. 9224) is amended— 

4 (1) in subsection (a)— 

5 (A) by striking the heading and inserting 

6 ‘‘4-YEAR PLANS’’; and 

7 (B) in paragraph (1), by striking ‘‘5’’ and 

8 inserting ‘‘4’’; 

9 (2) in subsection (b)— 

10 (A) in paragraph (1), by inserting ‘‘and 

11 the role of provider and cooperating agencies in 

12 preparing the assessment’’ after ‘‘serve’’; 

13 (B) by striking paragraph (2) and insert14 ing the following: 

15 ‘‘(2) a description of how the eligible agency 

16 will address the adult education and literacy needs 

17 identified under paragraph (1) in each workforce de18 velopment area of the State, using funds received 

19 under this subtitle, as well as other Federal, State, 

20 or local funds received in partnership with other 

21 agencies for the purpose of adult literacy as applica22 ble;’’; 

23 (C) in paragraph (3)— 

24 (i) by inserting ‘‘and measure’’ after 

25 ‘‘evaluate’’; 
292 

•S 9 IS 

1 (ii) by inserting ‘‘and improvement’’ 

2 after ‘‘effectiveness’’; and 

3 (iii) by striking ‘‘212’’ and inserting 

4 ‘‘212, including— 

5 ‘‘(A) how the eligible agency will evaluate 

6 and measure annually such effectiveness on a 

7 grant-by-grant basis; and 

8 ‘‘(B) how the eligible agency— 

9 ‘‘(i) will hold eligible providers ac10 countable regarding the progress of such 

11 providers in improving the academic 

12 achievement of participants in adult edu13 cation programs under this subtitle and re14 garding the core indicators of performance 

15 described in section 212(b)(2)(A); and 

16 ‘‘(ii) will use technical assistance, 

17 sanctions, and rewards (including alloca18 tion of grant funds based on performance 

19 and termination of grant funds based on 

20 performance)’’; 

21 (D) in paragraph (4), by striking ‘‘will en22 sure the improvement of’’ and inserting ‘‘im23 proved’’; 
293 

•S 9 IS 

1 (E) by redesignating paragraphs (5) 

2 through (12) as paragraphs (6) through (13), 

3 respectively; 

4 (F) by inserting after paragraph (4) the 

5 following: 

6 ‘‘(5) a description of how the eligible agency 

7 will improve teacher quality, the professional devel8 opment of eligible providers, and instruction;’’; 

9 (G) in paragraph (6) (as redesignated by 

10 subparagraph (E)), by striking ‘‘who’’ and all 

11 that follows through the semicolon and insert12 ing ‘‘that— 

13 ‘‘(A) offers flexible schedules and coordi14 nates with necessary Federal, State, and local 

15 support services (such as child care, transpor16 tation, mental health services, and case man17 agement) to enable individuals, including indi18 viduals with disabilities or individuals with 

19 other special needs, to participate in adult edu20 cation and literacy activities; and 

21 ‘‘(B) attempts to coordinate with support 

22 services that are not provided under this sub23 title prior to using funds for adult education 

24 and literacy activities provided under this sub25 title for support services;’’; 
294 

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1 (H) in paragraph (10) (as redesignated by 

2 subparagraph (E)), by striking ‘‘plan’’ and in3 serting ‘‘plan, which process— 

4 ‘‘(A) shall include the State Workforce In5 vestment Board, the Governor, State officials 

6 representing public schools, community colleges, 

7 welfare agencies, agencies that provide services 

8 to individuals with disabilities, other State 

9 agencies that promote or operate adult edu10 cation and literacy activities, and direct pro11 viders of such adult literacy services; 

12 ‘‘(B) may include consultation with the 

13 State agency for higher education, institutions 

14 responsible for professional development of 

15 adult education and literacy education program 

16 instructors, institutions of higher education, 

17 representatives of business and industry, ref18 ugee assistance programs, and community19 based organizations, as defined in section 

20 101;’’; 

21 (I) in paragraph (11) (as redesignated by 

22 subparagraph (E))— 

23 (i) by inserting ‘‘assess potential pop24 ulation needs and’’ after ‘‘will’’; 
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1 (ii) in subparagraph (A), by striking 

2 ‘‘students’’ and inserting ‘‘individuals’’; 

3 (iii) in subparagraph (C), by striking 

4 ‘‘and’’ after the semicolon; and 

5 (iv) by adding at the end the fol6 lowing: 

7 ‘‘(E) the unemployed; and 

8 ‘‘(F) those who are employed, but at levels 

9 below self-sufficiency, as defined in section 

10 101.’’; 

11 (J) in paragraph (12) (as redesignated by 

12 subparagraph (E))— 

13 (i) by inserting ‘‘and how the plan 

14 submitted under this subtitle is coordi15 nated with the plan submitted by the State 

16 under title I’’ after ‘‘eligible agency’’; and 

17 (ii) by striking ‘‘and’’ after the semi18 colon; 

19 (K) in paragraph (13) (as redesignated by 

20 subparagraph (E)), by striking ‘‘231(c)(1).’’ 

21 and inserting ‘‘231(c)(1), including— 

22 ‘‘(A) how the State will build the capacity 

23 of organizations that provide adult education 

24 and literacy activities; and 
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1 ‘‘(B) how the State will increase the par2 ticipation of business and industry in adult edu3 cation and literacy activities;’’; and 

4 (L) by adding at the end the following: 

5 ‘‘(14) a description of how the eligible agency 

6 will consult with any State agency responsible for 

7 postsecondary education to develop adult education 

8 programs and services (including academic skill de9 velopment and support services) that prepare stu10 dents to enter postsecondary education upon comple11 tion of secondary school programs or their recog12 nized equivalent; 

13 ‘‘(15) a description of how the eligible agency 

14 will consult with the State agency responsible for 

15 workforce development to develop adult education 

16 programs and services that are designed to prepare 

17 students to enter the workforce; and 

18 ‘‘(16) a description of how the eligible agency 

19 will improve the professional development of eligible 

20 providers of adult education and literacy activities.’’; 

21 (3) in subsection (c), by adding at the end the 

22 following: ‘‘At the end of the first 2-year period of 

23 the 4-year State plan, the eligible agency shall re24 view and, as needed, revise the 4-year State plan.’’; 

25 and 
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1 (4) in subsection (d)— 

2 (A) in paragraph (1), by inserting ‘‘, the 

3 chief State school officer, the State officer re4 sponsible for administering community and 

5 technical colleges, and the State Workforce In6 vestment Board’’ after ‘‘Governor’’; and 

7 (B) in paragraph (2), by striking ‘‘com8 ments’’ and all that follows through the period 

9 and inserting ‘‘comments regarding the State 

10 plan by the Governor, the chief State school of11 ficer, the State officer responsible for admin12 istering community and technical colleges, and 

13 the State Workforce Investment Board, and 

14 any revision to the State plan, are submitted to 

15 the Secretary.’’. 

16 SEC. 441J. PROGRAMS FOR CORRECTIONS EDUCATION AND 

17 OTHER INSTITUTIONALIZED INDIVIDUALS. 

18 Section 225 of the Adult Education and Family Lit19 eracy Act (20 U.S.C. 9225) is amended— 

20 (1) in subsection (b)— 

21 (A) in paragraph (1), by striking ‘‘basic 

22 education’’ and inserting ‘‘adult education and 

23 literacy activities’’; 

24 (B) in paragraph (2), by inserting ‘‘and’’ 

25 after the semicolon; 
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1 (C) by striking paragraph (3); and 

2 (D) by redesignating paragraph (4) as 

3 paragraph (3); and 

4 (2) in subsection (d), by striking ‘‘DEFINITION

5 OF CRIMINAL OFFENDER.—’’ and inserting ‘‘DEFI6 NITIONS.—In this section:’’. 

7 SEC. 441K. GRANTS AND CONTRACTS FOR ELIGIBLE PRO8 VIDERS. 

9 Section 231 of the Adult Education and Family Lit10 eracy Act (20 U.S.C. 9241) is amended— 

11 (1) in subsection (b)— 

12 (A) in paragraph (1), by striking ‘‘work13 place literacy services’’ and inserting ‘‘work14 place literacy programs’’; and 

15 (B) in paragraph (3), by striking ‘‘lit16 eracy’’ and inserting ‘‘language acquisition’’; 

17 (2) in subsection (e)— 

18 (A) in paragraph (1), by inserting ‘‘to be 

19 achieved annually on the core indicators of per20 formance and employment performance indica21 tors described in section 212(b)(2)’’ after ‘‘out22 comes’’; 

23 (B) by striking paragraph (3) and insert24 ing the following: 
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1 ‘‘(3) the commitment of the eligible provider to 

2 be responsive to local needs and to serve individuals 

3 in the community who were identified by the assess4 ment as most in need of adult literacy services, in5 cluding individuals who are low-income, have mini6 mal literacy skills, have learning disabilities, or have 

7 limited English proficiency;’’; 

8 (C) in paragraph (4)(B), by striking ‘‘, 

9 such as’’ and all that follows through the semi10 colon and inserting ‘‘that include the essential 

11 components of reading instruction;’’; 

12 (D) in paragraph (5), by striking ‘‘re13 search’’ and inserting ‘‘the most rigorous re14 search available’’; 

15 (E) in paragraph (7), by inserting ‘‘, when 

16 appropriate and based on the most rigorous re17 search available,’’ after ‘‘real life contexts’’; 

18 (F) in paragraph (9), by inserting ‘‘edu19 cation, job-training, and social service’’ after 

20 ‘‘other available’’; 

21 (G) in paragraph (10)— 

22 (i) by inserting ‘‘coordination with 

23 Federal, State, and local’’ after ‘‘schedules 

24 and’’; and 
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1 (ii) by striking ‘‘and transportation’’ 

2 and inserting ‘‘, transportation, mental 

3 health services, and case management’’; 

4 (H) in paragraph (11)— 

5 (i) by inserting ‘‘measurable’’ after 

6 ‘‘report’’; 

7 (ii) by striking ‘‘eligible agency’’; 

8 (iii) by inserting ‘‘established by the 

9 eligible agency’’ after ‘‘performance meas10 ures’’; and 

11 (iv) by striking ‘‘and’’ after the semi12 colon; 

13 (I) in paragraph (12), by striking ‘‘literacy 

14 programs.’’ and inserting ‘‘language acquisition 

15 programs and civics education programs;’’; and 

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

17 ‘‘(13) the capacity of the eligible provider to 

18 produce information on performance results, includ19 ing enrollments and measurable participant out20 comes; 

21 ‘‘(14) whether reading, writing, speaking, math22 ematics, and English language acquisition instruc23 tion provided by the eligible provider are based on 

24 the best practices derived from the most rigorous re25 search available; 
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1 ‘‘(15) whether the eligible provider’s applica2 tions of technology and services to be provided are 

3 sufficient to increase the amount and quality of 

4 learning and lead to measurable learning gains with5 in specified time periods; and 

6 ‘‘(16) the capacity of the eligible provider to 

7 serve adult learners with learning disabilities.’’. 

8 SEC. 441L. LOCAL APPLICATION. 

9 Section 232 of the Adult Education and Family Lit10 eracy Act (20 U.S.C. 9242) is amended— 

11 (1) in paragraph (1)— 

12 (A) by inserting ‘‘consistent with the re13 quirements of this subtitle’’ after ‘‘spent’’; and 

14 (B) by striking ‘‘and’’ after the semicolon; 

15 (2) in paragraph (2), by striking the period at 

16 the end and inserting ‘‘; and’’; and 

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

18 ‘‘(3) information that addresses each of the 

19 considerations required under section 231(e).’’. 

20 SEC. 441M. LOCAL ADMINISTRATIVE COST LIMITS. 

21 Section 233 of the Adult Education and Family Lit22 eracy Act (20 U.S.C. 9243) is amended— 

23 (1) in subsection (a)(2)— 

24 (A) by inserting ‘‘and professional’’ after 

25 ‘‘personnel’’; and 
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1 (B) by inserting ‘‘development of measur2 able goals in reading, writing, and speaking the 

3 English language, and in mathematical com4 putation,’’ after ‘‘development,’’; and 

5 (2) in subsection (b)— 

6 (A) by inserting ‘‘and professional’’ after 

7 ‘‘personnel’’; and 

8 (B) by inserting ‘‘development of measur9 able goals in reading, writing, and speaking the 

10 English language, and in mathematical com11 putation,’’ after ‘‘development,’’. 

12 SEC. 441N. ADMINISTRATIVE PROVISIONS. 

13 Section 241(b) of the Adult Education and Family 

14 Literacy Act (20 U.S.C. 9251(b)) is amended— 

15 (1) in paragraph (1)(A)— 

16 (A) by striking ‘‘adult education and lit17 eracy activities’’ both places such terms appear 

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

19 and 

20 (B) by striking ‘‘was’’ and inserting 

21 ‘‘were’’; and 

22 (2) in paragraph (4)— 

23 (A) by inserting ‘‘not more than’’ after 

24 ‘‘this subsection for’’; and 

25 (B) by striking ‘‘only’’. 
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1 SEC. 441O. NATIONAL INSTITUTE FOR LITERACY. 

2 Section 242 of the Adult Education and Family Lit3 eracy Act (20 U.S.C. 9252) is amended— 

4 (1) in subsection (a)— 

5 (A) in paragraph (1), by striking ‘‘lit6 eracy’’ and inserting ‘‘effective literacy pro7 grams for children, youth, adults, and families’’; 

8 (B) in paragraph (2), by inserting ‘‘and 

9 disseminates information on’’ after ‘‘coordi10 nates’’; and 

11 (C) by striking paragraph (3)(A) and in12 serting the following: 

13 ‘‘(A) coordinating and participating in the 

14 Federal effort to identify and disseminate infor15 mation on literacy that is derived from scientif16 ically based research, or the most rigorous re17 search available and effective programs that 

18 serve children, youth, adults, and families; 

19 and’’; 

20 (2) by striking subsection (b)(3) and inserting 

21 the following: 

22 ‘‘(3) RECOMMENDATIONS.—The Interagency 

23 Group, in consultation with the National Institute 

24 for Literacy Advisory Board (in this section referred 

25 to as the ‘Board’) established under subsection (e), 

26 shall plan the goals of the Institute and the imple-
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1 mentation of any programs to achieve the goals. The 

2 Board may also request a meeting of the Inter3 agency Group to discuss any recommendations the 

4 Board may make.’’; 

5 (3) in subsection (c)— 

6 (A) in paragraph (1)— 

7 (i) in subparagraph (A)— 

8 (I) by striking ‘‘to establish’’ and 

9 inserting ‘‘to maintain’’; 

10 (II) in clause (i), by striking 

11 ‘‘phonemic awareness, systematic 

12 phonics, fluency, and reading com13 prehension’’ and inserting ‘‘the essen14 tial components of reading instruc15 tion’’; 

16 (III) in clause (iii), by striking 

17 ‘‘and’’ after the semicolon; 

18 (IV) in clause (iv), by inserting 

19 ‘‘and’’ after the semicolon; and 

20 (V) by adding at the end the fol21 lowing: 

22 ‘‘(v) a list of local adult education and 

23 literacy programs;’’; 

24 (ii) in subparagraph (C)— 
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1 (I) by striking ‘‘reliable and 

2 replicable research’’ and inserting ‘‘re3 liable and replicable research as de4 fined by the Institute of Education 

5 Sciences’’; and 

6 (II) by striking ‘‘especially with 

7 the Office of Educational Research 

8 and Improvement in the Department 

9 of Education,’’; 

10 (iii) in subparagraph (D), by striking 

11 ‘‘phonemic awareness, systematic phonics, 

12 fluency, and reading comprehension based 

13 on’’ and inserting ‘‘the essential compo14 nents of reading instruction and’’; 

15 (iv) in subparagraph (H), by striking 

16 ‘‘and’’ after the semicolon; 

17 (v) in subparagraph (I), by striking 

18 the period at the end and inserting a semi19 colon; and 

20 (vi) by adding at the end the fol21 lowing: 

22 ‘‘(J) to work cooperatively with the De23 partment of Education to assist States that are 

24 pursuing the implementation of standards-based 

25 educational improvements for adults through 
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1 the dissemination of training, technical assist2 ance, and related support and through the de3 velopment and dissemination of related stand4 ards-based assessment instruments; and 

5 ‘‘(K) to identify rigorous research on the 

6 effectiveness of instructional practices and orga7 nizational strategies relating to literacy pro8 grams on the acquisition of skills in reading, 

9 writing, English acquisition, and mathe10 matics.’’; and 

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

12 ‘‘(3) COORDINATION.—In identifying the reli13 able and replicable research the Institute will sup14 port, the Institute shall use standards for research 

15 quality that are consistent with those of the Insti16 tute of Education Sciences.’’; 

17 (4) in subsection (e)— 

18 (A) in paragraph (1)(B)— 

19 (i) in clause (i), by striking ‘‘literacy 

20 programs’’ and inserting ‘‘language acqui21 sition programs’’; 

22 (ii) in clause (ii), by striking ‘‘literacy 

23 programs’’ and inserting ‘‘or have partici24 pated in or partnered with workplace lit25 eracy programs’’; 
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1 (iii) in clause (iv), by inserting ‘‘, in2 cluding adult literacy research’’ after ‘‘re3 search’’; 

4 (iv) in clause (vi), by striking ‘‘and’’ 

5 after the semicolon; 

6 (v) in clause (vii), by striking the pe7 riod at the end and inserting ‘‘; and’’; and 

8 (vi) by adding at the end the fol9 lowing: 

10 ‘‘(viii) institutions of higher edu11 cation.’’; 

12 (B) in paragraph (2)— 

13 (i) in subparagraph (B), by striking 

14 ‘‘and’’ after the semicolon; 

15 (ii) in subparagraph (C), by striking 

16 the period at the end and inserting ‘‘; 

17 and’’; and 

18 (iii) by adding at the end the fol19 lowing: 

20 ‘‘(D) review the biennial report submitted 

21 to Congress pursuant to subsection (k).’’; and 

22 (C) in paragraph (5), by striking the sec23 ond sentence and inserting the following: ‘‘A 

24 recommendation of the Board may be passed 

25 only by a majority of the Board’s members 
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1 present at a meeting for which there is a 

2 quorum.’’; and 

3 (5) in subsection (k)— 

4 (A) by striking ‘‘Labor and Human Re5 sources’’ and inserting ‘‘Health, Education, 

6 Labor, and Pensions’’; and 

7 (B) by striking ‘‘The Institute shall submit 

8 a report biennially to’’ and inserting ‘‘Not later 

9 than 1 year after the date of enactment of the 

10 Adult Education and Family Literacy Act 

11 Amendments of 2005, and biennially thereafter, 

12 the Institute shall submit a report to’’. 

13 SEC. 441P. NATIONAL LEADERSHIP ACTIVITIES. 

14 Section 243 of the Adult Education and Family Lit15 eracy Act (20 U.S.C. 9253) is amended to read as follows: 

16 ‘‘SEC. 243. NATIONAL LEADERSHIP ACTIVITIES. 

17 ‘‘(a) IN GENERAL.—The Secretary shall establish 

18 and carry out a program of national leadership activities 

19 to enhance the quality of adult education and literacy pro20 grams nationwide. 

21 ‘‘(b) PERMISSIVE ACTIVITIES.—The national leader22 ship activities described in subsection (a) may include the 

23 following: 

24 ‘‘(1) Technical assistance, including— 
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1 ‘‘(A) assistance provided to eligible pro2 viders in developing and using performance 

3 measures for the improvement of adult edu4 cation and literacy activities, including family 

5 literacy services; 

6 ‘‘(B) assistance related to professional de7 velopment activities, and assistance for the pur8 poses of developing, improving, identifying, and 

9 disseminating the most successful methods and 

10 techniques for providing adult education and 

11 literacy activities, including family literacy serv12 ices, based on scientific evidence where avail13 able; 

14 ‘‘(C) assistance in distance learning and 

15 promoting and improving the use of technology 

16 in the classroom; 

17 ‘‘(D) assistance in developing valid, meas18 urable, and reliable performance data, including 

19 data around employment and employment out20 come, and using performance information for 

21 the improvement of adult education and literacy 

22 programs; and 

23 ‘‘(E) assistance to help States, particularly 

24 low-performing States, meet the requirements 

25 of section 212. 
310 

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1 ‘‘(2) A program of grants, contracts, or cooper2 ative agreements awarded on a competitive basis to 

3 national, regional, or local networks of private non4 profit organizations, public libraries, or institutions 

5 of higher education to build the capacity of such net6 works’ members to meet the performance require7 ments of eligible providers under this title and in8 volve adult learners in program improvement. 

9 ‘‘(3) Funding national leadership activities that 

10 are not described in paragraph (1), either directly or 

11 through grants, contracts, or cooperative agreements 

12 awarded on a competitive basis to or with postsec13 ondary educational institutions, public or private or14 ganizations or agencies, or consortia of such institu15 tions, organizations, or agencies, such as— 

16 ‘‘(A) developing, improving, and identifying 

17 the most successful methods and techniques for 

18 addressing the education needs of adults, in19 cluding instructional practices using the essen20 tial components of reading instruction based on 

21 the work of the National Institute of Child 

22 Health and Human Development; 

23 ‘‘(B) increasing the effectiveness of, and 

24 improving the quality of, adult education and 
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1 literacy activities, including family literacy serv2 ices; 

3 ‘‘(C) carrying out research on national lit4 eracy basic skill acquisition for adult learning, 

5 including estimating the number of adults func6 tioning at the lowest levels of literacy pro7 ficiency; 

8 ‘‘(D)(i) carrying out demonstration pro9 grams; 

10 ‘‘(ii) disseminating best practices informa11 tion, including information regarding promising 

12 practices resulting from federally funded dem13 onstration programs; and 

14 ‘‘(iii) developing and replicating best prac15 tices and innovative programs, including— 

16 ‘‘(I) the development of models for 

17 basic skill certificates; 

18 ‘‘(II) the identification of effective 

19 strategies for working with adults with 

20 learning disabilities and with adults with 

21 limited English proficiency; 

22 ‘‘(III) integrated basic and workplace 

23 skills education programs; 

24 ‘‘(IV) coordinated literacy and em25 ployment services; and 
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1 ‘‘(V) postsecondary education transi2 tion programs; 

3 ‘‘(E) providing for the conduct of an inde4 pendent evaluation and assessment of adult 

5 education and literacy activities through studies 

6 and analyses conducted independently through 

7 grants and contracts awarded on a competitive 

8 basis, which evaluation and assessment shall in9 clude descriptions of— 

10 ‘‘(i) the effect of performance meas11 ures and other measures of accountability 

12 on the delivery of adult education and lit13 eracy activities, including family literacy 

14 services; 

15 ‘‘(ii) the extent to which the adult 

16 education and literacy activities, including 

17 family literacy services, increase the lit18 eracy skills of adults (and of children, in 

19 the case of family literacy services), lead 

20 the participants in such activities to in21 volvement in further education and train22 ing, enhance the employment and earnings 

23 of such participants, and, if applicable, 

24 lead to other positive outcomes, such as re25 ductions in recidivism in the case of pris-
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1 on-based adult education and literacy ac2 tivities; 

3 ‘‘(iii) the extent to which the provision 

4 of support services to adults enrolled in 

5 adult education and family literacy pro6 grams increase the rate of enrollment in, 

7 and successful completion of, such pro8 grams; and 

9 ‘‘(iv) the extent to which different 

10 types of providers measurably improve the 

11 skills of participants in adult education 

12 and literacy programs; 

13 ‘‘(F) supporting efforts aimed at capacity 

14 building of programs at the State and local lev15 els such as technical assistance in program 

16 planning, assessment, evaluation, and moni17 toring of activities carried out under this sub18 title; 

19 ‘‘(G) collecting data, such as data regard20 ing the improvement of both local and State 

21 data systems, through technical assistance and 

22 development of model performance data collec23 tion systems; 

24 ‘‘(H) supporting the development of an en25 tity that would produce and distribute tech-
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1 nology-based programs and materials for adult 

2 education and literacy programs using an inter3 connection system (as defined in section 397 of 

4 the Communications Act of 1934 (47 U.S.C. 

5 397)) and expand the effective outreach and 

6 use of such programs and materials to adult 

7 education eligible providers; 

8 ‘‘(I) determining how participation in adult 

9 education and literacy activities prepares indi10 viduals for entry into postsecondary education 

11 and employment and, in the case of prison12 based services, has an effect on recidivism; and 

13 ‘‘(J) other activities designed to enhance 

14 the quality of adult education and literacy ac15 tivities nationwide.’’. 

16 SEC. 441Q. INTEGRATED ENGLISH LITERACY AND CIVICS 

17 EDUCATION. 

18 Chapter 4 of subtitle A of title II (29 U.S.C. 9251 

19 et seq.) is amended by adding at the end the following: 

20 ‘‘SEC. 244. INTEGRATED ENGLISH LITERACY AND CIVICS 

21 EDUCATION. 

22 ‘‘(a) IN GENERAL.—From funds made available 

23 under section 211(a)(4) for each fiscal year the Secretary 

24 shall award grants to States, from allotments under sub-
315 

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1 section (b), for integrated English literacy and civics edu2 cation. 

3 ‘‘(b) ALLOTMENT.— 

4 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

5 from amounts made available under section 

6 211(a)(4) for a fiscal year the Secretary shall allo7 cate— 

8 ‘‘(A) 65 percent to the States on the basis 

9 of a State’s need for integrated English literacy 

10 and civics education as determined by calcu11 lating each State’s share of a 10-year average 

12 of the Immigration and Naturalization Service 

13 data for immigrants admitted for legal perma14 nent residence for the 10 most recent years; 

15 and 

16 ‘‘(B) 35 percent to the States on the basis 

17 of whether the State experienced growth as 

18 measured by the average of the 3 most recent 

19 years for which Immigration and Naturalization 

20 Service data for immigrants admitted for legal 

21 permanent residence are available. 

22 ‘‘(2) MINIMUM.—No State shall receive an al23 lotment under paragraph (1) in an amount that is 

24 less than $60,000.’’. 
316 

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1 SEC. 441R. TRANSITION. 

2 The Secretary shall take such steps as the Secretary 

3 determines to be appropriate to provide for the orderly 

4 transition to the authority of the Adult Education and 

5 Family Literacy Act (as amended by this chapter) from 

6 any authority under provisions of the Adult Education and 

7 Family Literacy Act (as such Act was in effect on the day 

8 before the date of enactment of the Adult Education and 

9 Family Literacy Act Amendments of 2005). 

10 CHAPTER 3—AMENDMENTS TO OTHER 

11 PROVISIONS OF LAW 

12 SEC. 451. WAGNER-PEYSER ACT. 

13 (a) CONFORMING AMENDMENT.—Section 2(3) of the 

14 Wagner-Peyser Act (29 U.S.C. 49a(3)) is amended by 

15 striking ‘‘section 134(c)’’ and inserting ‘‘section 121(e)’’. 

16 (b) COLOCATION.—Section 3 of the Wagner-Peyser 

17 Act (29 U.S.C. 49b) is amended by adding at the end the 

18 following: 

19 ‘‘(d) In order to avoid duplication of services and en20 hance integration of services, employment services offices 

21 in each State shall be colocated with comprehensive one22 stop centers established under title I of the Workforce In23 vestment Act of 1998 (29 U.S.C. 2801 et seq.).’’. 

24 (c) COOPERATIVE STATISTICAL PROGRAM.—Section 

25 14 of the Wagner-Peyser Act (29 U.S.C. 49l–1) is amend-
317 

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1 ed by striking the section heading and all that follows 

2 through ‘‘There’’ and inserting the following: 

3 ‘‘SEC. 14. COOPERATIVE STATISTICAL PROGRAM. 

4 ‘‘There’’. 

5 (d) WORKFORCE AND LABOR MARKET INFORMATION

6 SYSTEM.—Section 15 of the Wagner-Peyser Act (29 

7 U.S.C. 49l–2) is amended— 

8 (1) by striking the section heading and insert9 ing the following: 

10 ‘‘SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION 

11 SYSTEM.’’; 

12 (2) by striking ‘‘employment statistics system’’ 

13 each place it appears and inserting ‘‘workforce and 

14 labor market information system’’; 

15 (3) in subsection (a)(1), by striking ‘‘of employ16 ment statistics’’; 

17 (4) in subsection (b)(2)(E)— 

18 (A) in clause (i), by adding ‘‘and’’ at the 

19 end; 

20 (B) in clause (ii), by striking ‘‘; and’’ and 

21 inserting a period; and 

22 (C) by striking clause (iii); 

23 (5) by striking subsections (c) and (d) and in24 serting the following: 
318 

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1 ‘‘(c) NATIONAL ELECTRONIC TOOLS TO PROVIDE

2 SERVICES.—The Secretary, in consultation with States, is 

3 authorized to assist in the development of national elec4 tronic tools that may be used to improve access to work5 force information for individuals through— 

6 ‘‘(1) the one-stop delivery systems established 

7 under section 121(e) of the Workforce Investment 

8 Act of 1998 (29 U.S.C. 2841(e)); and 

9 ‘‘(2) such other delivery systems as the Sec10 retary determines to be appropriate. 

11 ‘‘(d) TWO-YEAR PLAN.—The Secretary, working 

12 through the Bureau of Labor Statistics, and in coopera13 tion with the States and with the assistance of the Em14 ployment and Training Administration and other appro15 priate Federal agencies, shall prepare a 2-year plan which 

16 shall be the mechanism for achieving cooperative manage17 ment of the nationwide workforce and labor market infor18 mation system described in subsection (a) and the state19 wide workforce and labor market information systems that 

20 comprise the nationwide system. The plan shall— 

21 ‘‘(1) describe the steps the to be taken in the 

22 following 2 years to carry out the duties described 

23 in subsection (b)(2); 

24 ‘‘(2) evaluate the performance of the system 

25 and recommend needed improvements, with par-
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1 ticular attention to the improvements needed at the 

2 State and local levels; and 

3 ‘‘(3) describe the involvement of States in the 

4 development of the plan, pursuant to a process es5 tablished by the Secretary in cooperation with the 

6 States in accordance with subsection (i).’’; 

7 (6) in subsection (e)(2)— 

8 (A) in subparagraph (G), by adding ‘‘and’’ 

9 at the end; 

10 (B) by striking subparagraph (H); and 

11 (C) by redesignating subparagraph (I) as 

12 subparagraph (H); 

13 (7) in subsection (g), by striking ‘‘1999 through 

14 2004’’ and inserting ‘‘2006 through 2011 to enable 

15 the Secretary to carry out the provisions of this sec16 tion in a timely manner through grants or coopera17 tive agreements with the States’’; 

18 (8) in subsection (g)— 

19 (A) by striking ‘‘There are’’ and inserting 

20 the following: 

21 ‘‘(1) IN GENERAL.—There are’’; and 

22 (B) by adding at the end the following: 

23 ‘‘(2) DISTRIBUTION OF FUNDS.—With regard 

24 to distributing funds appropriated under paragraph 

25 (1) (relating to workforce and labor market informa-
320 

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1 tion funding) for fiscal years 2006 through 2011, 

2 the Secretary shall continue to distribute the funds 

3 to the States in the manner in which the Secretary 

4 distributed funds to the States under this section for 

5 fiscal years 1999 through 2003.’’; and 

6 (9) by adding at the end the following: 

7 ‘‘(i) COORDINATION WITH THE STATES.—The Sec8 retary, working though the Bureau of Labor Statistics and 

9 in coordination with the Employment and Training Ad10 ministration, shall consult at least annually with rep11 resentatives of each of the 10 Federal regions of the De12 partment of Labor, elected (pursuant to a process estab13 lished by the Secretary) by and from the State workforce 

14 and labor market information directors affiliated with the 

15 State agencies that perform the duties described in sub16 section (e)(2).’’. 

17 CHAPTER 4—REHABILITATION ACT 

18 AMENDMENTS 

19 SEC. 461. SHORT TITLE. 

20 This chapter may be cited as the ‘‘Rehabilitation Act 

21 Amendments of 2005’’. 

22 SEC. 461A. TECHNICAL AMENDMENTS TO TABLE OF CON23 TENTS. 

24 (a) INCENTIVE GRANTS.—Section 1(b) of the Reha25 bilitation Act of 1973 (29 U.S.C. 701 note) is amended 
321 

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1 by inserting after the item relating to section 112 the fol2 lowing: 

‘‘Sec. 113. Incentive grants.’’. 

3 (b) INDEPENDENT LIVING SERVICES FOR OLDER IN4 DIVIDUALS WHO ARE BLIND.—Section 1(b) of the Reha5 bilitation Act of 1973 (29 U.S.C. 701 note) is amended 

6 by striking the items relating to sections 752 and 753 and 

7 inserting the following: 

‘‘Sec. 752. Training and technical assistance. 

‘‘Sec. 753. Program of grants. 

‘‘Sec. 754. Authorization of appropriations.’’. 

8 SEC. 461B. PURPOSE. 

9 Section 2(b) of the Rehabilitation Act of 1973 (29 

10 U.S.C. 701(b)) is amended— 

11 (1) in paragraph (1)(F), by striking ‘‘and’’ 

12 after the semicolon; 

13 (2) in paragraph (2), by striking the period at 

14 the end and inserting ‘‘; and’’; and 

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

16 ‘‘(3) to provide opportunities for employers and 

17 rehabilitation service providers to provide meaningful 

18 input at all levels of government to ensure successful 

19 employment of individuals with disabilities.’’. 

20 SEC. 461C. DEFINITIONS. 

21 Section 7 of the Rehabilitation Act of 1973 (29 

22 U.S.C. 705) is amended— 

23 (1) in paragraph (2)(B)— 
322 

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1 (A) in the matter preceding clause (i), by 

2 inserting ‘‘and literacy services’’ after ‘‘sup3 ported employment’’; and 

4 (B) in clause (iii), by inserting ‘‘and lit5 eracy skills’’ after ‘‘educational achievements’’; 

6 (2) by striking paragraph (7) and inserting the 

7 following: 

8 ‘‘(7) CONSUMER ORGANIZATION.—The term 

9 ‘consumer organization’ means a membership orga10 nization in which a majority of the organization’s 

11 members and a majority of the organization’s offi12 cers are individuals with disabilities.’’; 

13 (3) in paragraph (17)— 

14 (A) in subparagraph (C), by striking 

15 ‘‘and’’ after the semicolon; 

16 (B) in subparagraph (D), by striking the 

17 period at the end and inserting ‘‘; and’’; and 

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

19 ‘‘(E) maintaining individuals with signifi20 cant disabilities in, or transitioning individuals 

21 with significant disabilities to, community-based 

22 living.’’; 

23 (4) by redesignating paragraphs (24) through 

24 (28), (29) through (34), and (35) through (39), as 
323 

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1 paragraphs (25) through (29), (31) through (36), 

2 and (38) through (42), respectively; 

3 (5) by inserting after paragraph (23) the fol4 lowing: 

5 ‘‘(24) LITERACY.—The term ‘literacy’ has the 

6 meaning given the term in section 203 of the Adult 

7 Education and Family Literacy Act (20 U.S.C. 

8 9202).’’; 

9 (6) by inserting after paragraph (29), as redes10 ignated by paragraph (4), the following: 

11 ‘‘(30) POST-EMPLOYMENT SERVICE.—The term 

12 ‘post-employment’ service means a service identified 

13 in section 103(a) that is— 

14 ‘‘(A) provided subsequent to the achieve15 ment of an employment outcome; and 

16 ‘‘(B) necessary for an individual to main17 tain, regain, or advance in employment, con18 sistent with the individual’s strengths, re19 sources, priorities, concerns, abilities, capabili20 ties, interests, and informed choice.’’; 

21 (7) by inserting after paragraph (36), as redes22 ignated by paragraph (4), the following: 

23 ‘‘(37) STUDENT WITH A DISABILITY.— 

24 ‘‘(A) IN GENERAL.—The term ‘student 

25 with a disability’ means an individual with a 
324 

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1 disability who attends an elementary school or 

2 secondary school and who— 

3 ‘‘(i) is not younger than 14 years of 

4 age; 

5 ‘‘(ii) is not older than 21 years of age; 

6 ‘‘(iii) has been determined to be eligi7 ble under section 102(a) for assistance 

8 under title I; and 

9 ‘‘(iv)(I) is eligible for, and receiving, 

10 special education and related services 

11 under part B of the Individuals with Dis12 abilities Education Act; or 

13 ‘‘(II) is an individual with a disability, 

14 for purposes of section 504. 

15 ‘‘(B) STUDENTS WITH DISABILITIES.—The 

16 term ‘students with disabilities’ means more 

17 than 1 student with a disability.’’; and 

18 (8) in paragraph (38)(A)(ii), as redesignated by 

19 paragraph (4), by striking ‘‘paragraph (36)(C)’’ and 

20 inserting ‘‘paragraph (39)(C)’’. 

21 SEC. 461D. ADMINISTRATION OF THE ACT. 

22 Section 12(a)(1) of the Rehabilitation Act of 1973 

23 (29 U.S.C. 709(a)(1)) is amended— 

24 (1) by inserting ‘‘(A)’’ after ‘‘(1)’’; 
325 

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1 (2) by striking the semicolon and inserting ‘‘; 

2 and’’; and 

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

4 ‘‘(B) provide technical assistance to the des5 ignated State units on developing successful partner6 ships with employers;’’. 

7 SEC. 461E. CARRYOVER. 

8 Section 19 of the Rehabilitation Act of 1973 (29 

9 U.S.C. 716) is amended— 

10 (1) in subsection (a)(1)— 

11 (A) by striking ‘‘, section 509 (except as 

12 provided in section 509(b))’’; 

13 (B) by striking ‘‘or (C)’’; and 

14 (C) by striking ‘‘752(b)’’ and inserting 

15 ‘‘753(b)’’; and 

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

17 ‘‘(c) PROTECTION AND ADVOCACY OF INDIVIDUAL

18 RIGHTS.— 

19 ‘‘(1) APPROPRIATED AMOUNTS.—Notwith20 standing any other provision of law, any funds ap21 propriated for a fiscal year to carry out a grant pro22 gram under section 509 (except as provided in sec23 tion 509(b)), including any funds reallotted under 

24 such grant program, that are not obligated and ex25 pended by recipients prior to the beginning of the 
326 

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1 succeeding fiscal year shall remain available for obli2 gation and expenditure by such recipients during 

3 such succeeding fiscal year. 

4 ‘‘(2) PROGRAM INCOME.—Notwithstanding any 

5 other provision of law, any amounts of program in6 come received by recipients under a grant program 

7 under section 509 in a fiscal year that are not obli8 gated and expended by recipients prior to the begin9 ning of the succeeding fiscal year, shall remain avail10 able until expended.’’. 

11 Subchapter A—Vocational Rehabilitation 

12 Services 

13 SEC. 462. DECLARATION OF POLICY; AUTHORIZATION OF 

14 APPROPRIATIONS. 

15 Section 100(b)(1) of the Rehabilitation Act of 1973 

16 (29 U.S.C. 720(b)(1)) is amended by striking ‘‘fiscal years 

17 1999 through 2003’’ and inserting ‘‘fiscal years 2006 

18 through 2011’’. 

19 SEC. 462A. STATE PLANS. 

20 Section 101(a) of the Rehabilitation Act of 1973 (29 

21 U.S.C. 721(a)) is amended— 

22 (1) in paragraph (6)(B), by striking ‘‘to employ 

23 and advance in employment’’ and inserting ‘‘to re24 cruit, employ, and advance in employment’’; 
327 

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1 (2) in paragraph (7)(A)(v), by striking sub2 clause (I) and inserting the following: 

3 ‘‘(I) a system for the continuing 

4 education of rehabilitation profes5 sionals and paraprofessionals within 

6 the designated State unit, particularly 

7 with respect to rehabilitation tech8 nology, including training imple9 mented in coordination with State 

10 programs carried out under section 4 

11 of the Assistive Technology Act of 

12 1998 (29 U.S.C. 3003); and’’; 

13 (3) in paragraph (8)(A), by adding at the end 

14 the following: 

15 ‘‘(iii) SERVICES IDENTIFIED IN INDI16 VIDUALIZED WORK PLAN.—For purposes 

17 of clause (i), for an individual who receives 

18 assistance under the Ticket to Work and 

19 Self-Sufficiency Program established under 

20 section 1148 of the Social Security Act (42 

21 U.S.C. 1320b–19), comparable benefits 

22 and services available under such program 

23 only include those benefits and services 

24 identified in the individual’s individualized 
328 

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1 work plan developed by an employment 

2 network pursuant to such section.’’; 

3 (4) in paragraph (10)— 

4 (A) in subparagraph (B), by striking ‘‘an5 nual reporting on the eligible individuals receiv6 ing the services, on those specific data elements 

7 described in section 136(d)(2) of the Workforce 

8 Investment Act of 1998’’ and inserting ‘‘annual 

9 reporting of information on eligible individuals 

10 receiving services that is needed to assess per11 formance on the core indicators of performance 

12 described in section 136(b)(2)(A)(i) of the 

13 Workforce Investment Act of 1998 (29 U.S.C. 

14 2871(b)(2)(A)(i))’’; 

15 (B) in subparagraph (C), by striking 

16 clauses (iii) and (iv) and inserting the following: 

17 ‘‘(iii) the number of applicants and el18 igible recipients, including the number of 

19 individuals with significant disabilities, who 

20 exited the program carried out under this 

21 title and the number of such individuals 

22 who achieved employment outcomes after 

23 receiving vocational rehabilitation services; 

24 and 
329 

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1 ‘‘(iv) the number of individuals who 

2 received vocational rehabilitation services 

3 who entered and retained employment and 

4 the increases in earnings of such individ5 uals, consistent with State reporting re6 sponsibilities pursuant to section 

7 136(b)(2)(A)(i) of the Workforce Invest8 ment Act of 1998 (29 U.S.C. 

9 2871(b)(2)(A)(i)).’’; and 

10 (C) in subparagraph (E)(ii), by striking 

11 ‘‘in meeting’’ and all that follows through the 

12 period and inserting ‘‘in meeting the standards 

13 and indicators established pursuant to section 

14 106.’’; 

15 (5) in paragraph (11)— 

16 (A) by striking subparagraph (C) and in17 serting the following: 

18 ‘‘(C) INTERAGENCY COOPERATION WITH

19 OTHER AGENCIES.—The State plan shall in20 clude descriptions of interagency cooperation 

21 with, and utilization of the services and facili22 ties of, Federal, State, and local agencies and 

23 programs, including the State programs carried 

24 out under section 4 of the Assistive Technology 

25 Act of 1998 (29 U.S.C. 3003), programs car-
330 

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1 ried out by the Under Secretary for Rural De2 velopment of the Department of Agriculture, 

3 and State use contracting programs, to the ex4 tent that such agencies and programs are not 

5 carrying out activities through the statewide 

6 workforce investment system.’’; 

7 (B) by striking subparagraph (D)(ii) and 

8 inserting the following: 

9 ‘‘(ii) transition planning by personnel 

10 of the designated State agency and the 

11 State educational agency that will facilitate 

12 the development and completion of the in13 dividualized education programs under sec14 tion 614(d) of the Individuals with Disabil15 ities Education Act and, as appropriate, 

16 the development and completion of the in17 dividualized plan for employment, in order 

18 to achieve post-school employment out19 comes of students with disabilities;’’; and 

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

21 ‘‘(G) COORDINATION WITH TICKET TO

22 WORK AND SELF-SUFFICIENCY PROGRAM.—The 

23 State plan shall provide that the designated 

24 State unit will coordinate activities with any 

25 other State agency that administers a Ticket to 
331 

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1 Work and Self-Sufficiency Program established 

2 under section 1148 of the Social Security Act 

3 (42 U.S.C. 1320b–19).’’; and 

4 (6) in paragraph (20)— 

5 (A) by redesignating subparagraph (B) as 

6 subparagraph (D); 

7 (B) by inserting after subparagraph (A) 

8 the following: 

9 ‘‘(B) INFORMATION ON ASSISTANCE FOR

10 BENEFICIARIES OF ASSISTANCE UNDER TITLE

11 II OR XVI OF THE SOCIAL SECURITY ACT.—The 

12 State plan shall include an assurance that the 

13 designated State agency will make available to 

14 individuals entitled to benefits under title II or 

15 XVI of the Social Security Act (42 U.S.C. 401 

16 et seq., 1381 et seq.) on the basis of a disability 

17 or blindness, information on the availability 

18 of— 

19 ‘‘(i) medical assistance under the 

20 State medicaid program under title XIX of 

21 the Social Security Act (42 U.S.C. 1396 et 

22 seq.); 

23 ‘‘(ii) benefits under the medicare pro24 gram under title XVIII of the Social Secu25 rity Act (42 U.S.C. 1395 et seq.); 
332 

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1 ‘‘(iii) assistance through benefits plan2 ning and assistance programs under sec3 tion 1149 of the Social Security Act (42 

4 U.S.C. 1320b–20) and protection and ad5 vocacy programs under section 1150 of the 

6 Social Security Act (42 U.S.C. 1320b–21); 

7 and 

8 ‘‘(iv) medical assistance under other 

9 federally funded programs. 

10 ‘‘(C) INFORMATION FOR INDIVIDUALS

11 UNDER THE TICKET TO WORK PROGRAM.—The 

12 State plan shall include an assurance that the 

13 designated State agency will make available to 

14 individuals entitled to benefits under title II or 

15 XVI of the Social Security Act (42 U.S.C. 401 

16 et seq., 1381 et seq.) on the basis of a disability 

17 or blindness and eligible for assistance under 

18 the Ticket to Work and Self-Sufficiency Pro19 gram established under section 1148 of the So20 cial Security Act (42 U.S.C. 1320b–19), gen21 eral information regarding the Ticket to Work 

22 and Self-Sufficiency Program and specific infor23 mation on how to contact the program manager 

24 of the Ticket to Work and Self-Sufficiency Pro-
333 

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1 gram to obtain information on approved em2 ployment networks.’’; and 

3 (C) in subparagraph (D)(ii), as redesig4 nated by subparagraph (A)— 

5 (i) in subclause (II), by inserting ‘‘, to 

6 the maximum extent possible,’’ after 

7 ‘‘point of contact’’; and 

8 (ii) in subclause (III), by striking ‘‘or 

9 regain’’ and inserting ‘‘regain, or advance 

10 in’’. 

11 SEC. 462B. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR 

12 EMPLOYMENT. 

13 Section 102 of the Rehabilitation Act of 1973 (29 

14 U.S.C. 722) is amended— 

15 (1) in subsection (b)— 

16 (A) in paragraph (1)— 

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

18 the semicolon at the end and inserting ‘‘, 

19 including a listing of all the community re20 sources (including resources from con21 sumer organizations), to the maximum ex22 tent possible, to assist in the development 

23 of such individual’s individualized plan for 

24 employment to enable the individual to 

25 make informed and effective choices in de-
334 

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1 veloping the individualized plan for employ2 ment;’’; and 

3 (ii) in subparagraph (D)— 

4 (I) in clause (i), by striking 

5 ‘‘and’’ after the semicolon; 

6 (II) in clause (ii), by striking the 

7 period at the end and inserting a 

8 semicolon; and 

9 (III) by adding at the end the 

10 following: 

11 ‘‘(iii) for individuals entitled to benefits 

12 under title II or XVI of the Social Security Act 

13 (42 U.S.C. 401 et seq., 1381 et seq.) on the 

14 basis of a disability or blindness, information on 

15 the availability of— 

16 ‘‘(I) medical assistance under the 

17 State medicaid program under title XIX of 

18 the Social Security Act (42 U.S.C. 1396 et 

19 seq.); 

20 ‘‘(II) benefits under the medicare pro21 gram under title XVIII of the Social Secu22 rity Act (42 U.S.C. 1395 et seq.); 

23 ‘‘(III) assistance through benefits 

24 planning and assistance programs under 

25 section 1149 of the Social Security Act (42 
335 

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1 U.S.C. 1320b–20) and protection and ad2 vocacy programs under section 1150 of the 

3 Social Security Act (42 U.S.C. 1320b–21); 

4 and 

5 ‘‘(IV) medical assistance under other 

6 federally funded programs; and 

7 ‘‘(iv) for individuals entitled to benefits 

8 under title II or XVI of the Social Security Act 

9 (42 U.S.C. 401 et seq., 1381 et seq.) on the 

10 basis of a disability or blindness and eligible for 

11 assistance under the Ticket to Work and Self12 Sufficiency Program established under section 

13 1148 of the Social Security Act (42 U.S.C. 

14 1320b–19), information— 

15 ‘‘(I) on the options under the Ticket 

16 to Work and Self-Sufficiency Program; and 

17 ‘‘(II) on how to contact the program 

18 manager of the Ticket to Work and Self19 Sufficiency Program who has contact in20 formation on approved employment net21 works, the benefits planning and assistance 

22 programs in the area, and the protection 

23 and advocacy programs in the area.’’; 

24 (B) in paragraph (2)(E)— 
336 

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1 (i) in clause (i)(II), by striking ‘‘and’’ 

2 after the semicolon; 

3 (ii) in clause (ii), by striking the pe4 riod at the end and inserting ‘‘; and’’; and 

5 (iii) by adding at the end the fol6 lowing: 

7 ‘‘(iii) amended, as necessary, to in8 clude the post-employment services and 

9 service providers that are necessary for the 

10 individual to maintain, regain, or advance 

11 in employment, consistent with the individ12 ual’s strengths, resources, priorities, con13 cerns, abilities, capabilities, interests, and 

14 informed choice.’’; and 

15 (C) in paragraph (3)— 

16 (i) in subparagraph (B)(i)(I), by strik17 ing ‘‘and personal assistance services’’ and 

18 inserting ‘‘mentoring services, and personal 

19 assistance services’’; 

20 (ii) in subparagraph (F)(ii), by strik21 ing ‘‘and’’ after the semicolon; 

22 (iii) in subparagraph (G), by striking 

23 the period at the end and inserting a semi24 colon; and 
337 

•S 9 IS 

1 (iv) by adding at the end the fol2 lowing: 

3 ‘‘(H) for a student with a disability, the 

4 description— 

5 ‘‘(i) in paragraph (3)(A), may be a 

6 description of the student’s projected post7 school employment outcome; and 

8 ‘‘(ii) in paragraph (3)(B), shall in9 clude the specific transition services (in10 cluding, as appropriate, work experience 

11 and mentoring activities) needed to achieve 

12 the student’s employment outcome or pro13 jected employment outcome; and 

14 ‘‘(I) for an individual who is receiving as15 sistance under the Ticket to Work and Self-Suf16 ficiency Program established under section 

17 1148 of the Social Security Act (42 U.S.C. 

18 1320b–19), a list of services such individual re19 ceives from an employment network other than 

20 the designated State unit.’’; and 

21 (2) in subsection (c)(7), by inserting ‘‘that take 

22 into consideration the informed choice of the indi23 vidual,’’ after ‘‘plan development,’’. 
338 

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1 SEC. 462C. VOCATIONAL REHABILITATION SERVICES. 

2 Section 103(a) of the Rehabilitation Act of 1973 (29 

3 U.S.C. 723(a)) is amended— 

4 (1) in paragraph (5), by inserting ‘‘literacy 

5 services,’’ after ‘‘vocational adjustment services,’’; 

6 (2) in paragraph (17), by striking ‘‘and’’ after 

7 the semicolon; 

8 (3) in paragraph (18), by striking the period at 

9 the end and inserting ‘‘; and’’; and 

10 (4) by adding at the end the following: 

11 ‘‘(19) mentoring services.’’. 

12 SEC. 462D. STATE REHABILITATION COUNCIL. 

13 Section 105(b) of the Rehabilitation Act of 1973 (29 

14 U.S.C. 725(b)) is amended— 

15 (1) in paragraph (1)(A), by striking clause (ix) 

16 and inserting the following: 

17 ‘‘(ix) in a State in which 1 or more 

18 projects provide services under section 121, 

19 not less than 1 representative of the direc20 tors of the projects;’’; and 

21 (2) by striking paragraph (5) and inserting the 

22 following: 

23 ‘‘(5) CHAIRPERSON.—The Council shall select a 

24 chairperson from among the voting membership of 

25 the Council.’’. 
339 

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1 SEC. 462E. EVALUATION STANDARDS AND PERFORMANCE 

2 INDICATORS. 

3 Section 106(b)(2)(B)(i) of the Rehabilitation Act of 

4 1973 (29 U.S.C. 726(b)(2)(B)(i)) is amended by striking 

5 ‘‘, if necessary’’ and all that follows through the semicolon 

6 and inserting ‘‘if the State has not improved its perform7 ance to acceptable levels, as determined by the Commis8 sioner, direct the State to make further revisions to the 

9 plan to improve performance, which may include allocating 

10 a higher proportion of the State’s resources for services 

11 to individuals with disabilities if the State’s spending on 

12 such services is low in comparison to spending on such 

13 services in comparable agencies in other States;’’. 

14 SEC. 462F. STATE ALLOTMENTS. 

15 Section 110 of the Rehabilitation Act of 1973 (29 

16 U.S.C. 730) is amended— 

17 (1) by striking subsection (b) and inserting the 

18 following: 

19 ‘‘(b) REALLOTMENT.— 

20 ‘‘(1) DETERMINATION.—Not later than 45 days 

21 prior to the end of the fiscal year, the Commissioner 

22 shall determine, after reasonable opportunity for the 

23 submission to the Commissioner of comments by the 

24 State agency administering or supervising the pro25 gram established under this title, that any payment 

26 of an allotment to a State under section 111(a) for 
340 

•S 9 IS 

1 any fiscal year will not be utilized by such State in 

2 carrying out the purposes of this title. 

3 ‘‘(2) FORMULA.— 

4 ‘‘(A) IN GENERAL.—As soon as practicable 

5 but not later than the end of the fiscal year, the 

6 Commissioner shall reallot the amount available 

7 under paragraph (1) to other States, consistent 

8 with subparagraphs (B) and (C), for carrying 

9 out the purposes of this title to the extent the 

10 Commissioner determines such other State will 

11 be able to use such additional amount during 

12 that fiscal year or the subsequent fiscal year for 

13 carrying out such purposes. 

14 ‘‘(B) FORMULA.— 

15 ‘‘(i) ELIGIBLE STATES.—The Com16 missioner shall reallot the amount available 

17 under paragraph (1) for a fiscal year to 

18 each State whose allotment under sub19 section (a) for such fiscal year is less than 

20 such State’s allotment under subsection (a) 

21 for the immediately preceding fiscal year 

22 increased by the percentage change in the 

23 funds available for subsection (a) from the 

24 immediately preceding fiscal year. 

25 ‘‘(ii) AMOUNT.— 
341 

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1 ‘‘(I) IN GENERAL.—A State that 

2 is eligible to receive a reallotment 

3 under clause (i) shall receive an 

4 amount for a fiscal year from the 

5 amount available for reallotment 

6 under paragraph (1) that is equal to 

7 the difference between— 

8 ‘‘(aa) the amount such State 

9 received for such fiscal year; and 

10 ‘‘(bb) the amount such State 

11 was allotted under subsection (a) 

12 for the immediately preceding fis13 cal year adjusted by the percent14 age change in the funds available 

15 for subsection (a) from the im16 mediately preceding fiscal year. 

17 ‘‘(II) INSUFFICIENT FUNDS.—If 

18 the amount available for reallotment 

19 under paragraph (1) is insufficient to 

20 provide each State eligible to receive a 

21 reallotment with the amount described 

22 in subclause (I), the amount reallotted 

23 to each eligible State shall be deter24 mined by the Commissioner. 
342 

•S 9 IS 

1 ‘‘(C) REMAINING FUNDS.—If there are 

2 funds remaining after each State eligible to re3 ceive a reallotment under subparagraph (B)(i) 

4 receives the amount described in subparagraph 

5 (B)(ii), the Commissioner shall reallot the re6 maining funds among the States requesting a 

7 reallotment. 

8 ‘‘(3) NON-FEDERAL SHARE.—The Commis9 sioner shall reallot an amount to a State under this 

10 subsection only if the State will be able to make suf11 ficient payments from non-Federal sources to pay 

12 for the non-Federal share of the cost of vocational 

13 rehabilitation services under the State plan for the 

14 fiscal year for which the amount was appropriated. 

15 ‘‘(4) INCREASE IN ALLOTMENT.—For the pur16 poses of this part, any amount made available to a 

17 State for any fiscal year pursuant to this subsection 

18 shall be regarded as an increase of such State’s al19 lotment (as determined under the preceding provi20 sions of this section) for such year.’’; and 

21 (2) by striking subsection (c)(2) and inserting 

22 the following: 

23 ‘‘(2)(A) In this paragraph: 
343 

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1 ‘‘(i) The term ‘appropriated amount’ means the 

2 amount appropriated under section 100(b)(1) for al3 lotment under this section. 

4 ‘‘(ii) The term ‘covered year’ means a fiscal 

5 year— 

6 ‘‘(I) that begins after September 30, 2004; 

7 and 

8 ‘‘(II) for which the appropriated amount 

9 exceeds the total of— 

10 ‘‘(aa) the appropriated amount for the 

11 preceding fiscal year; and 

12 ‘‘(bb) 0.075 percent of the appro13 priated amount for the preceding fiscal 

14 year. 

15 ‘‘(B) For each covered year, the sum referred to in 

16 paragraph (1) shall be, as determined by the Secretary— 

17 ‘‘(i) not less than the total of the sum reserved 

18 under this subsection for the preceding fiscal year 

19 and 0.1 percent of the appropriated amount for the 

20 covered year; and 

21 ‘‘(ii) not more than 1.5 percent of the appro22 priated amount for the covered year.’’. 

23 SEC. 462G. CLIENT ASSISTANCE PROGRAM. 

24 Section 112 of the Rehabilitation Act of 1973 (29 

25 U.S.C. 732) is amended— 
344 

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1 (1) in subsection (a), by striking ‘‘States’’ and 

2 inserting ‘‘agencies designated under subsection 

3 (c)’’; 

4 (2) in subsection (e)— 

5 (A) in paragraph (1)— 

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

7 ‘‘The Secretary’’ and all that follows 

8 through the period and inserting the fol9 lowing: ‘‘After reserving funds under sub10 paragraphs (E) and (F), the Secretary 

11 shall allot the remainder of the sums ap12 propriated for each fiscal year under this 

13 section among the agencies designated 

14 under subsection (c) within the States on 

15 the basis of relative population of each 

16 State, except that no such agency shall re17 ceive less than $50,000.’’; 

18 (ii) in subparagraph (B), by inserting 

19 ‘‘the designated agencies located in’’ after 

20 ‘‘each to’’; 

21 (iii) in subparagraph (D)(i)— 

22 (I) by inserting ‘‘the designated 

23 agencies located in’’ after ‘‘$100,000 

24 for’’; and 
345 

•S 9 IS 

1 (II) by inserting ‘‘the designated 

2 agencies located in’’ after ‘‘$45,000 

3 for’’; and 

4 (iv) by adding at the end the fol5 lowing: 

6 ‘‘(E)(i) Beginning on October 1, 2004, for any fiscal 

7 year for which the amount appropriated to carry out this 

8 section equals or exceeds $13,000,000, the Secretary shall 

9 reserve funds appropriated under this section to make 

10 grants to the protection and advocacy system serving the 

11 American Indian Consortium to provide client assistance 

12 services in accordance with this section. The amount of 

13 such grants shall be the same amount as provided to terri14 tories under subparagraph (B), as increased under clauses 

15 (i) and (ii) of subparagraph (D). 

16 ‘‘(ii) In this subparagraph: 

17 ‘‘(I) The term ‘American Indian Consortium’ 

18 has the meaning given the term in section 102 of the 

19 Developmental Disabilities Assistance and Bill of 

20 Rights Act of 2000 (42 U.S.C. 15002). 

21 ‘‘(II) The term ‘protection and advocacy sys22 tem’ means a protection and advocacy system estab23 lished under subtitle C of title I of the Develop24 mental Disabilities Assistance and Bill of Rights Act 

25 of 2000 (42 U.S.C. 15041 et seq.). 
346 

•S 9 IS 

1 ‘‘(F) For any fiscal year for which the amount appro2 priated to carry out this section equals or exceeds 

3 $14,000,000, the Secretary shall reserve not less than 1.8 

4 percent and not more than 2.2 percent of such amount 

5 to provide training and technical assistance to the pro6 grams established under this section. Such training and 

7 technical assistance shall be coordinated with activities 

8 provided under section 509(c)(1)(A).’’; 

9 (B) in paragraph (2)— 

10 (i) by striking ‘‘State’’ each place 

11 such term appears and inserting ‘‘des12 ignated agency’’; and 

13 (ii) by striking ‘‘States’’ each place 

14 such term appears and inserting ‘‘des15 ignated agencies’’; and 

16 (C) in paragraph (3), by striking ‘‘Except 

17 as specifically prohibited by or as otherwise pro18 vided in State law, the Secretary shall pay’’ and 

19 inserting ‘‘The Secretary shall pay directly’’; 

20 (3) in subsection (f), by striking ‘‘State’’ and 

21 inserting ‘‘agency designated under subsection (c)’’; 

22 and 

23 (4) in subsection (h), by striking ‘‘fiscal years 

24 1999 through 2003’’ and inserting ‘‘fiscal years 

25 2006 through 2011’’. 
347 

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1 SEC. 462H. INCENTIVE GRANTS. 

2 Part B of title I of the Rehabilitation Act of 1973 

3 (29 U.S.C. 730 et seq.) is amended by adding at the end 

4 the following: 

5 ‘‘SEC. 113. INCENTIVE GRANTS. 

6 ‘‘(a) AUTHORITY.—The Commissioner is authorized 

7 to make incentive grants to States that, based on the cri8 teria established under subsection (b)(1), demonstrate— 

9 ‘‘(1) a high level of performance; or 

10 ‘‘(2) a significantly improved level of perform11 ance as compared to the previous reporting period or 

12 periods. 

13 ‘‘(b) CRITERIA.— 

14 ‘‘(1) ESTABLISHMENT.—Not later than 180 

15 days after the date of enactment of this section, the 

16 Commissioner shall establish, and publish in the 

17 Federal Register, criteria for making grant awards 

18 under subsection (a). 

19 ‘‘(2) DEVELOPMENT AND EVALUATION STAND20 ARDS.—The criteria under paragraph (1) shall— 

21 ‘‘(A) be developed with input from State 

22 vocational rehabilitation agencies and other vo23 cational rehabilitation stakeholders, including 

24 vocational rehabilitation consumers and con25 sumer organizations; and 
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1 ‘‘(B) be based upon the evaluation stand2 ards and performance indicators established 

3 under section 106 and other performance re4 lated measures that the Commissioner deter5 mines to be appropriate. 

6 ‘‘(c) USE OF FUNDS.—A State that receives a grant 

7 under subsection (a) shall use the grant funds for any ap8 proved activities in the State’s State plan submitted under 

9 section 101. 

10 ‘‘(d) NO NON-FEDERAL SHARE REQUIREMENT.— 

11 The provisions of sections 101(a)(3) and 111(a)(2) shall 

12 not apply to this section. 

13 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

14 are authorized to be appropriated to carry out this section 

15 such sums as may be necessary for each of fiscal years 

16 2006 through 2011.’’. 

17 SEC. 462I. VOCATIONAL REHABILITATION SERVICES 

18 GRANTS. 

19 Section 121 of the Rehabilitation Act of 1973 (29 

20 U.S.C. 741) is amended— 

21 (1) in subsection (a), in the first sentence, by 

22 inserting ‘‘, consistent with such individuals’ 

23 strengths, resources, priorities, concerns, abilities, 

24 capabilities, interests, and informed choice, so that 

25 such individuals may prepare for, and engage in, 
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1 gainful employment’’ before the period at the end; 

2 and 

3 (2) in subsection (b)— 

4 (A) in paragraph (1)— 

5 (i) in subparagraph (B), by striking 

6 ‘‘and’’ after the semicolon; 

7 (ii) in subparagraph (C), by striking 

8 the period at the end and inserting ‘‘; 

9 and’’; and 

10 (iii) by adding at the end the fol11 lowing: 

12 ‘‘(D) contains assurances that— 

13 ‘‘(i) all decisions affecting eligibility for vo14 cational rehabilitation services, the nature and 

15 scope of available services, and the provision of 

16 such services, will be made by a representative 

17 of the tribal vocational rehabilitation program; 

18 and 

19 ‘‘(ii) such decisions will not be delegated to 

20 another agency or individual.’’; 

21 (B) in paragraph (3), by striking the first 

22 sentence and inserting the following: ‘‘An appli23 cation approved under this part that complies 

24 with the program requirements set forth in the 

25 regulations promulgated to carry out this part 
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1 shall be effective for 5 years and shall be re2 newed for additional 5-year periods if the Com3 missioner determines that the grantee dem4 onstrated acceptable past performance and the 

5 grantee submits a plan, including a proposed 

6 budget, to the Commissioner that the Commis7 sioner approves that identifies future perform8 ance criteria, goals, and objectives.’’; and 

9 (C) by striking paragraph (4) and insert10 ing the following: 

11 ‘‘(4) In allocating funds under this part, the Sec12 retary shall give priority to paying the continuation costs 

13 of existing projects and may provide for increases in fund14 ing for such projects as determined necessary.’’. 

15 SEC. 462J. GAO STUDIES. 

16 (a) STUDY ON TITLE I AND TICKET TO WORK.— 

17 (1) IN GENERAL.—The Comptroller General of 

18 the United States shall conduct a study on the inter19 action of title I of the Rehabilitation Act of 1973 

20 (29 U.S.C. 720 et seq.) with the Ticket to Work and 

21 Self-Sufficiency Program established under section 

22 1148 of the Social Security Act (42 U.S.C. 1320b– 

23 19), including the impact of the interaction on bene24 ficiaries, community rehabilitation programs, and 

25 State vocational rehabilitation agencies. 
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1 (2) CONDUCT OF STUDY.—In conducting the 

2 study under paragraph (1), the Comptroller General 

3 of the United States shall consult with all partici4 pants in the Ticket to Work and Self-Sufficiency 

5 Program, including the Social Security Administra6 tion, the Rehabilitation Services Administration, 

7 ticketholders, State agencies, community rehabilita8 tion programs (including employment networks and 

9 nonemployment networks), protection and advocacy 

10 agencies, MAXIMUS, and organizations rep11 resenting the interests of ticketholders. 

12 (3) REPORT TO CONGRESS.—Not later than 18 

13 months after the date of enactment of this Act, the 

14 Comptroller General of the United States shall sub15 mit the study conducted pursuant to this subsection 

16 to the appropriate committees of Congress. 

17 (b) STUDY ON THE ALLOTMENT FORMULA.— 

18 (1) IN GENERAL.—The Comptroller General of 

19 the United States shall conduct a study on the rela20 tionship between the State allotment formula under 

21 section 110 of the Rehabilitation Act of 1973 (29 

22 U.S.C. 730) and the ability of States to provide vo23 cational rehabilitation services in accordance with 

24 the State’s State plan under section 101 of such 

25 Act. 
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1 (2) CONDUCT OF STUDY.—In conducting the 

2 study under paragraph (1), the Comptroller General 

3 of the United States shall consult with appropriate 

4 entities. 

5 (3) REPORT TO CONGRESS.—Not later than 12 

6 months after the date of enactment of this Act, the 

7 Comptroller General of the United States shall sub8 mit the study conducted pursuant to this subsection 

9 to the appropriate committees of Congress. 

10 Subchapter B—Research and Training 

11 SEC. 463. AUTHORIZATION OF APPROPRIATIONS. 

12 Section 201(a) of the Rehabilitation Act of 1973 (29 

13 U.S.C. 761(a)) is amended— 

14 (1) in paragraph (1), by striking ‘‘fiscal years 

15 1999 through 2003’’ and inserting ‘‘fiscal years 

16 2006 through 2011’’; and 

17 (2) in paragraph (2), by striking ‘‘fiscal years 

18 1999 through 2003’’ and inserting ‘‘fiscal years 

19 2006 through 2011’’. 

20 SEC. 463A. NATIONAL INSTITUTE ON DISABILITY AND RE21 HABILITATION RESEARCH. 

22 Section 202(f)(1) of the Rehabilitation Act of 1973 

23 (29 U.S.C. 762(f)(1)) is amended by striking ‘‘Federal 

24 employees’’ and inserting ‘‘Department of Education em25 ployees’’. 
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1 SEC. 464B. RESEARCH AND OTHER COVERED ACTIVITIES. 

2 Section 204(c)(2) of the Rehabilitation Act of 1973 

3 (29 U.S.C. 764(c)(2)) is amended by striking ‘‘$500,000’’ 

4 and inserting ‘‘$750,000’’. 

5 SEC. 464C. REHABILITATION RESEARCH ADVISORY COUN6 CIL. 

7 Section 205(c) of the Rehabilitation Act of 1973 (29 

8 U.S.C. 765(c)) is amended by adding at the end the fol9 lowing: ‘‘The Council also shall include a representative 

10 from the business community who has experience with the 

11 vocational rehabilitation system and hiring individuals 

12 with disabilities.’’. 

13 Subchapter C—Professional Development 

14 and Special Projects and Demonstrations 

15 SEC. 464. TRAINING. 

16 Section 302 of the Rehabilitation Act of 1973 (29 

17 U.S.C. 772) is amended— 

18 (1) in subsection (b)(1)(B)(i), by striking ‘‘or 

19 prosthetics and orthotics’’ and inserting ‘‘prosthetics 

20 and orthotics, rehabilitation for the blind, or orienta21 tion and mobility instruction’’; and 

22 (2) in subsection (i), by striking ‘‘fiscal years 

23 1999 through 2003’’ and inserting ‘‘fiscal years 

24 2006 through 2011’’. 
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1 SEC. 464A. DEMONSTRATION AND TRAINING PROGRAMS. 

2 Section 303 of the Rehabilitation Act of 1973 (29 

3 U.S.C. 773) is amended— 

4 (1) in subsection (b)(5)(A)(i), by striking ‘‘spe5 cial projects’’ and inserting ‘‘not less than 2 special 

6 projects’’; 

7 (2) by redesignating subsections (c), (d), and 

8 (e) as subsections (e), (f), and (h), respectively; 

9 (3) by inserting after subsection (b) the fol10 lowing: 

11 ‘‘(c) DEMONSTRATION PROJECTS FOR EMPLOYMENT

12 OF STUDENTS WITH INTELLECTUAL DISABILITIES OR

13 MENTAL ILLNESS.— 

14 ‘‘(1) PURPOSE.—The purpose of this subsection 

15 is to support model demonstration projects to pro16 vide supported and competitive employment experi17 ences for students with intellectual disabilities or 

18 students with mental illness, and training for per19 sonnel that work with students described in this 

20 paragraph, to enable the students to gain employ21 ment skills and experience that will promote effective 

22 transitions from school to employment and adult liv23 ing. 

24 ‘‘(2) GRANTS AUTHORIZED.— 

25 ‘‘(A) COMPETITIVE GRANTS AUTHOR26 IZED.—The Secretary may award grants, con-
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1 tracts, and cooperative agreements, on a com2 petitive basis, to eligible organizations described 

3 in paragraph (3), to enable the organizations to 

4 carry out demonstration projects described in 

5 paragraph (1). 

6 ‘‘(B) DURATION.—The Secretary shall 

7 award grants under this subsection for periods 

8 of 3 to 5 years. 

9 ‘‘(3) ELIGIBLE ORGANIZATIONS.—To be eligible 

10 to receive a grant, contract, or cooperative agree11 ment under this subsection, an organization shall— 

12 ‘‘(A) have expertise in providing employ13 ment and support services for individuals with 

14 intellectual disabilities or individuals with men15 tal illness; 

16 ‘‘(B) have a proven track record in suc17 cessfully running supported employment pro18 grams; 

19 ‘‘(C) provide employment services that are 

20 exclusively integrated community-based sup21 ported employment services; 

22 ‘‘(D) have expertise in creating natural 

23 supports for employment; 
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1 ‘‘(E) have expertise in providing computer 

2 training for the targeted population for the 

3 project involved; and 

4 ‘‘(F) have experience operating mentoring 

5 programs for the target population in middle 

6 and high schools for at least a decade in diverse 

7 communities throughout the Nation. 

8 ‘‘(4) APPLICATIONS.—Each organization desir9 ing to receive a grant, contract, or cooperative agree10 ment under this subsection shall submit an applica11 tion to the Secretary at such time, in such manner, 

12 and including such information as the Secretary may 

13 require. Each application shall include— 

14 ‘‘(A) a description of how the organization 

15 plans to carry out the activities authorized in 

16 this subsection through a demonstration 

17 project; 

18 ‘‘(B) a description of how the organization 

19 will evaluate the project; 

20 ‘‘(C) a description of how the organization 

21 will disseminate information about the activities 

22 and the impact of the activities on the lives of 

23 students served by the project; and 

24 ‘‘(D) a description of how the organization 

25 will coordinate activities with any other relevant 
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1 service providers in the locality where the orga2 nization is based, including federally supported 

3 independent living centers. 

4 ‘‘(5) AUTHORIZED ACTIVITIES.—An organiza5 tion that receives a grant under this subsection shall 

6 use the funds made available through the grant to 

7 carry out 1 or more of the following activities for in8 dividuals, ages 14 through 21, who are students with 

9 intellectual disabilities or students with mental ill10 ness: 

11 ‘‘(A) PROVIDING SUPPORTED AND COM12 PETITIVE EMPLOYMENT EXPERIENCES.—The 

13 development of innovative and effective sup14 ported and competitive employment experiences 

15 after school, on weekends, and in the summer, 

16 utilizing natural supports that lead to competi17 tive high-paying jobs. 

18 ‘‘(B) PROVIDING TRAINING TO SCHOOL

19 AND TRANSITION PERSONNEL.—The develop20 ment and deployment of experts to work with 

21 transition programs (including personnel work22 ing with students on transition) so that per23 sonnel from the programs develop skills needed 

24 to train students with intellectual disabilities or 

25 students with mental illness to be successful in 
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1 competitive employment in a range of settings, 

2 including office settings. The training shall in3 clude training for the personnel in providing in4 struction to students in computer skills, office 

5 skills, interview etiquette, and appropriate so6 cial behavior required for successful long-term 

7 employment in professional environments. 

8 ‘‘(6) AUTHORIZATION OF APPROPRIATIONS.— 

9 There are authorized to be appropriated to carry out 

10 this subsection $5,000,000 for fiscal year 2006 and 

11 such sums as may be necessary for fiscal years 2007 

12 through 2010. 

13 ‘‘(d) DEMONSTRATION PROJECT FOR EMPLOYMENT

14 OF INDIVIDUALS WHO ARE DEAF AND LOW FUNC15 TIONING.— 

16 ‘‘(1) PURPOSE.—It is the purpose of this sub17 section to support a model demonstration project to 

18 provide training and support services for individuals 

19 who are deaf and low functioning to enable them to 

20 gain employment skills that will allow them to be21 come employed and economically self-sufficient. 

22 ‘‘(2) DEFINITION.— 

23 ‘‘(A) IN GENERAL.—In this subsection, the 

24 term ‘individual who is deaf and low func25 tioning’ means an individual who has been deaf 
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1 from birth or very early childhood, reads at or 

2 below the second grade level, has little or no in3 telligible speech, and lacks a high school di4 ploma or GED. 

5 ‘‘(B) SECONDARY DISABILITIES.—Such 

6 term may include an individual with a sec7 ondary disability. 

8 ‘‘(3) GRANTS AUTHORIZED.— 

9 ‘‘(A) COMPETITIVE GRANTS AUTHOR10 IZED.—The Secretary may award grants to 

11 State agencies, other public agencies or organi12 zations, or not-for-profit organizations with ex13 pertise in providing employment training and 

14 support services for individuals who are deaf 

15 and low functioning to support model dem16 onstration projects. 

17 ‘‘(B) DURATION.—Grants under this sub18 section shall be awarded for a period not to ex19 ceed 5 years. 

20 ‘‘(4) AUTHORIZED ACTIVITIES.— 

21 ‘‘(A) DEVELOPING A COMPREHENSIVE

22 TRAINING PROGRAM.—Each grant recipient 

23 shall develop an innovative, comprehensive pro24 gram of instruction for individuals who are deaf 

25 and low functioning that can be implemented at 
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1 multiple training locations through such means 

2 as distance learning and use of advanced tech3 nology, as appropriate. Such training program 

4 shall be developed to maximize the potential for 

5 replication of the program by other training 

6 providers. 

7 ‘‘(B) IMPLEMENTATION.—Each grant re8 cipient shall implement the comprehensive 

9 training program developed in subparagraph 

10 (A) as soon as feasible. Such training shall pro11 vide instruction on the job and the social skills 

12 necessary for successful long-term employment 

13 of individuals who are deaf and low functioning. 

14 ‘‘(C) ESTABLISHING A POST-TRAINING

15 PROGRAM OF EMPLOYMENT AND SUPPORT

16 SERVICES.—Each grant recipient shall imple17 ment employment and support services to assist 

18 individuals who complete the training program 

19 under subparagraph (A) in securing employ20 ment and transitioning to the workplace for a 

21 period of not less than 90 days subsequent to 

22 placement. 

23 ‘‘(5) APPLICATIONS.—Each entity desiring to 

24 receive a grant under this subsection shall submit an 

25 application to the Secretary at such time, in such 
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1 manner, and accompanied by such information as 

2 the Secretary may require including— 

3 ‘‘(A) a description of how the applicant 

4 plans to address the activities authorized under 

5 this subsection; 

6 ‘‘(B) a description of the evaluation plan 

7 to be used in the project; 

8 ‘‘(C) a description of how the applicant will 

9 disseminate information about the training pro10 gram developed and the results of the model 

11 demonstration project; and 

12 ‘‘(D) a description of how the project will 

13 coordinate with any other relevant service pro14 viders or entities providing employment training 

15 and supports for individuals who are deaf and 

16 low functioning. 

17 ‘‘(6) MANDATED EVALUATION AND DISSEMINA18 TION ACTIVITIES.— 

19 ‘‘(A) ANNUAL REPORT.—Not later than 2 

20 years after the date on which a grant under 

21 this subsection is awarded and annually there22 after, each grant recipient shall submit to the 

23 Commissioner a report containing— 
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1 ‘‘(i) the number of individuals who are 

2 participating in the demonstration project 

3 funded under this subsection; 

4 ‘‘(ii) the employment and other skills 

5 being taught in the project; 

6 ‘‘(iii) the number of individuals par7 ticipating in the project that are placed in 

8 employment; 

9 ‘‘(iv) the job sites in which those indi10 viduals are placed and the type of jobs 

11 they are placed in; and 

12 ‘‘(v) the number of individuals who 

13 have dropped out of the project and the 

14 reasons for their terminating participation 

15 in the project. 

16 ‘‘(B) EVALUATION OF THE PROJECT.— 

17 Each grant recipient shall implement the eval18 uation plan approved in its application for de19 termining the results of the project within the 

20 timeframe specified in, and following the provi21 sions of, its approved application. 

22 ‘‘(C) PARTICIPANT EVALUATION PROCESS; 

23 FINAL EVALUATION.—In the final year of the 

24 project, the grant recipient will produce a final 
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1 evaluation report of the results of the model 

2 demonstration project containing— 

3 ‘‘(i) the number of individuals who 

4 participated in the training program; 

5 ‘‘(ii) a description of the job sites in 

6 which those individuals were placed; 

7 ‘‘(iii) the number of individuals placed 

8 in employment and the type of employment 

9 in which they were placed; 

10 ‘‘(iv) the number of individuals who 

11 did not complete their training and the 

12 reasons those individuals dropped out of 

13 the project; 

14 ‘‘(v) the number of individuals who 

15 participated in the training project and 

16 who remain employed as of 2 months prior 

17 to the date on which the final report is 

18 submitted to the Secretary; 

19 ‘‘(vi) a written analysis of the model 

20 project, including both the strengths and 

21 weaknesses of the project, to assist other 

22 entities in replicating the training program 

23 developed through this model demonstra24 tion project; and 
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1 ‘‘(vii) such other information as the 

2 Secretary determines appropriate. 

3 ‘‘(D) DISSEMINATION.—Not later than 5 

4 years after the date on which an award is 

5 granted under this subsection, the evaluations 

6 and results of activities funded by such grant 

7 shall be disseminated to State vocational reha8 bilitation agencies, school systems providing in9 struction to students who are deaf, supported 

10 employment providers, postsecondary vocational 

11 training programs, employers, the Social Secu12 rity Administration, and other interested par13 ties. 

14 ‘‘(7) AUTHORIZATION OF APPROPRIATIONS.— 

15 There are authorized to be appropriated to carry out 

16 this subsection, $5,000,000 for fiscal year 2006 and 

17 such sums as may be necessary for each of fiscal 

18 years 2007 through 2010.’’; 

19 (4) by inserting after subsection (f), as redesig20 nated by paragraph (2), the following: 

21 ‘‘(g) ACCESS TO TELEWORK.— 

22 ‘‘(1) DEFINITION OF TELEWORK.—In this sub23 section, the term ‘telework’ means to work from 

24 home and other telework sites with the assistance of 

25 a computer and with reasonable accommodations, in-
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1 cluding the necessary equipment to facilitate suc2 cessful work from home and other telework sites. 

3 ‘‘(2) AUTHORIZATION OF PROGRAM.—The Com4 missioner is authorized to make grants to States and 

5 governing bodies of American Indian tribes located 

6 on Federal and State reservations (and consortia of 

7 such governing bodies) to pay for the Federal share 

8 of the cost of establishing or expanding a telework 

9 program. 

10 ‘‘(3) APPLICATION.—A State that desires to re11 ceive a grant under this subsection shall submit an 

12 application to the Commissioner at such time, in 

13 such manner, and containing such information as 

14 the Commissioner may require. 

15 ‘‘(4) USE OF FUNDS.—A State that receives a 

16 grant under this subsection shall establish or expand 

17 a telework program that shall provide loans or other 

18 alternative financing mechanisms to individuals with 

19 disabilities to enable such individuals to purchase 

20 computers or other equipment, including adaptive 

21 equipment, that facilitates work from home and 

22 other telework sites so that such individuals are able 

23 to telework. 

24 ‘‘(5) ANNUAL REPORT.— 
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1 ‘‘(A) IN GENERAL.—A State that receives 

2 a grant under this subsection shall submit an 

3 annual report to the Commissioner. 

4 ‘‘(B) CONTENTS.—The report under sub5 paragraph (A) shall include the following: 

6 ‘‘(i) The characteristics of each indi7 vidual with a disability that receives a loan 

8 or other alternative financing mechanism 

9 under the program, including information 

10 about the individual such as the following: 

11 ‘‘(I) Age. 

12 ‘‘(II) Ethnicity. 

13 ‘‘(III) Type of disability. 

14 ‘‘(IV) Employment status at the 

15 time of application for a loan or other 

16 alternative financing mechanism 

17 under this subsection. 

18 ‘‘(V) Whether the individual at19 tempted to secure financial support 

20 from other sources to enable the indi21 vidual to telework and, if so, a de22 scription of such sources. 

23 ‘‘(VI) Whether the individual is 

24 working and, if so, whether the indi25 vidual teleworks, the occupation in 
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1 which the individual is working, the 

2 hourly salary the individual receives, 

3 and the hourly salary of the individual 

4 prior to receiving a loan or other al5 ternative financing mechanism under 

6 the program. 

7 ‘‘(VII) Whether the individual 

8 has repaid the loan or other alter9 native financing mechanism received 

10 under the program, is in repayment 

11 status, is delinquent on repayments, 

12 or has defaulted on the loan or other 

13 alternative financing mechanism. 

14 ‘‘(ii) Any other information that the 

15 Commissioner may require. 

16 ‘‘(6) FEDERAL SHARE.—The Federal share of 

17 the cost of establishing a telework program shall be 

18 10 percent of the cost.’’; and 

19 (5) in subsection (h), as redesignated by para20 graph (2)— 

21 (A) by striking ‘‘this section’’ and inserting 

22 ‘‘this section (other than subsections (c) and 

23 (d))’’; and 
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1 (B) by striking ‘‘fiscal years 1999 through 

2 2003’’ and inserting ‘‘fiscal years 2006 through 

3 2011’’. 

4 SEC. 464B. MIGRANT AND SEASONAL FARMWORKERS. 

5 Section 304(b) of the Rehabilitation Act of 1973 (29 

6 U.S.C. 774(b)) is amended by striking ‘‘fiscal years 1999 

7 through 2003’’ and inserting ‘‘fiscal years 2006 through 

8 2011’’. 

9 SEC. 464C. RECREATIONAL PROGRAMS. 

10 Section 305 of the Rehabilitation Act of 1973 (29 

11 U.S.C. 775) is amended— 

12 (1) in subsection (a)(1)(B), by striking ‘‘con13 struction of facilities for aquatic rehabilitation ther14 apy,’’; and 

15 (2) in subsection (b), by striking ‘‘fiscal years 

16 1999 through 2003’’ and inserting ‘‘fiscal years 

17 2006 through 2011’’. 

18 Subchapter D—National Council on 

19 Disability 

20 SEC. 465. AUTHORIZATION OF APPROPRIATIONS. 

21 Section 405 of the Rehabilitation Act of 1973 (29 

22 U.S.C. 785) is amended by striking ‘‘fiscal years 1999 

23 through 2003’’ and inserting ‘‘fiscal years 2006 through 

24 2011’’. 
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1 Subchapter E—Rights and Advocacy 

2 SEC. 466. ARCHITECTURAL AND TRANSPORTATION BAR3 RIERS COMPLIANCE BOARD. 

4 Section 502(j) of the Rehabilitation Act of 1973 (29 

5 U.S.C. 792(j)) is amended by striking ‘‘fiscal years 1999 

6 through 2003’’ and inserting ‘‘fiscal years 2006 through 

7 2011’’. 

8 SEC. 466A. PROTECTION AND ADVOCACY OF INDIVIDUAL 

9 RIGHTS. 

10 Section 509 of the Rehabilitation Act of 1973 (29 

11 U.S.C. 794e) is amended— 

12 (1) in subsection (g)(2), by striking ‘‘was paid’’ 

13 and inserting ‘‘was paid, except that program in14 come generated from the amount paid to an eligible 

15 system shall remain available to such system until 

16 expended’’; and 

17 (2) in subsection (l), by striking ‘‘fiscal years 

18 1999 through 2003’’ and inserting ‘‘fiscal years 

19 2006 through 2011’’. 

20 Subchapter F—Employment Opportunities 

21 for Individuals With Disabilities 

22 SEC. 467. PROJECTS WITH INDUSTRY AUTHORIZATION OF 

23 APPROPRIATIONS. 

24 Section 612 of the Rehabilitation Act of 1973 (29 

25 U.S.C. 795a) is amended by striking ‘‘fiscal years 1999 
370 

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1 through 2003’’ and inserting ‘‘fiscal years 2006 through 

2 2011’’. 

3 SEC. 467A. SERVICES FOR INDIVIDUALS WITH SIGNIFICANT 

4 DISABILITIES AUTHORIZATION OF APPRO5 PRIATIONS. 

6 Section 628 of the Rehabilitation Act of 1973 (29 

7 U.S.C. 795n) is amended by striking ‘‘fiscal years 1999 

8 through 2003’’ and inserting ‘‘fiscal years 2006 through 

9 2011’’. 

10 Subchapter G—Independent Living Services 

11 and Centers for Independent Living 

12 SEC. 468. STATE PLAN. 

13 Section 704 of the Rehabilitation Act of 1973 (42 

14 U.S.C. 795c) is amended by adding at the end the fol15 lowing: 

16 ‘‘(o) PROMOTING FULL ACCESS TO COMMUNITY

17 LIFE.—The plan shall describe how the State will provide 

18 independent living services that promote full access to 

19 community life for individuals with significant disabilities. 

20 The services shall include, as appropriate, facilitating 

21 transitions from nursing homes and other institutions, in22 cluding institutions serving individuals with cognitive dis23 abilities, to community-based residences, assisting individ24 uals with significant disabilities at risk of entering institu25 tions to remain in the community, and promoting home 
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1 ownership among individuals with significant disabil2 ities.’’. 

3 SEC. 468A. STATEWIDE INDEPENDENT LIVING COUNCIL. 

4 (a) Section 705(b) of the Rehabilitation Act of 1973 

5 (29 U.S.C. 796d(b)) is amended— 

6 (1) in paragraph (2), by striking subparagraph 

7 (C) and inserting the following: 

8 ‘‘(C) in a State in which 1 or more 

9 projects provide services under section 121, not 

10 less than 1 representative of the directors of the 

11 projects.’’; and 

12 (2) by striking paragraph (5) and inserting the 

13 following: 

14 ‘‘(5) CHAIRPERSON.—The Council shall select a 

15 chairperson from among the voting membership of 

16 the Council.’’. 

17 SEC. 468B. INDEPENDENT LIVING SERVICES AUTHORIZA18 TION OF APPROPRIATIONS. 

19 Section 714 of the Rehabilitation Act of 1973 (29 

20 U.S.C. 796e–3) is amended by striking ‘‘fiscal years 1999 

21 through 2003’’ and inserting ‘‘fiscal years 2006 through 

22 2011’’. 

23 SEC. 468C. PROGRAM AUTHORIZATION. 

24 Section 721 of the Rehabilitation Act of 1973 (42 

25 U.S.C. 796f) is amended— 
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1 (1) by striking subsection (c) and inserting the 

2 following: 

3 ‘‘(c) ALLOTMENTS TO STATES.— 

4 ‘‘(1) DEFINITIONS.—In this subsection: 

5 ‘‘(A) ADDITIONAL APPROPRIATION.—The 

6 term ‘additional appropriation’ means the 

7 amount (if any) by which the appropriation for 

8 a fiscal year exceeds the total of— 

9 ‘‘(i) the amount reserved under sub10 section (b) for that fiscal year; and 

11 ‘‘(ii) the appropriation for fiscal year 

12 2003. 

13 ‘‘(B) APPROPRIATION.—The term ‘appro14 priation’ means the amount appropriated to 

15 carry out this part. 

16 ‘‘(C) BASE APPROPRIATION.—The term 

17 ‘base appropriation’ means the portion of the 

18 appropriation for a fiscal year that is equal to 

19 the lesser of— 

20 ‘‘(i) an amount equal to 100 percent 

21 of the appropriation, minus the amount re22 served under subsection (b) for that fiscal 

23 year; or 

24 ‘‘(ii) the appropriation for fiscal year 

25 2003. 
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1 ‘‘(2) ALLOTMENTS TO STATES FROM BASE AP2 PROPRIATION.—After the reservation required by 

3 subsection (b) has been made, the Commissioner 

4 shall allot to each State whose State plan has been 

5 approved under section 706 an amount that bears 

6 the same ratio to the base appropriation as the 

7 amount the State received under this subsection for 

8 fiscal year 2003 bears to the total amount that all 

9 States received under this subsection for fiscal year 

10 2003. 

11 ‘‘(3) ALLOTMENTS TO STATES OF ADDITIONAL

12 APPROPRIATION.—From any additional appropria13 tion for each fiscal year, the Commissioner shall 

14 allot to each State whose State plan has been ap15 proved under section 706 an amount equal to the 

16 sum of— 

17 ‘‘(A) an amount that bears the same ratio 

18 to 50 percent of the additional appropriation as 

19 the population of the State bears to the popu20 lation of all States; and 

‘‘(B) 1 21 ⁄56 of 50 percent of the additional 

22 appropriation.’’; and 

23 (2) by adding at the end the following: 

24 ‘‘(e) CARRYOVER AUTHORITY.—Notwithstanding any 

25 other provision of law— 
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1 ‘‘(1) any funds appropriated for a fiscal year to 

2 carry out a grant program under section 722 or 

3 723, that are not obligated and expended by recipi4 ents prior to the beginning of the succeeding fiscal 

5 year shall remain available for obligation and ex6 penditure by such recipients during that succeeding 

7 fiscal year and the subsequent fiscal year; and 

8 ‘‘(2) any amounts of program income received 

9 by recipients under a grant program under section 

10 722 or 723 in a fiscal year that are not obligated 

11 and expended by recipients prior to the beginning of 

12 the succeeding fiscal year, shall remain available for 

13 obligation and expenditure by such recipients during 

14 that succeeding fiscal year and the subsequent fiscal 

15 year.’’. 

16 SEC. 468D. GRANTS TO CENTERS FOR INDEPENDENT LIV17 ING IN STATES IN WHICH FEDERAL FUNDING 

18 EXCEEDS STATE FUNDING. 

19 Section 722(c) of the Rehabilitation Act of 1973 (29 

20 U.S.C. 796f–1(c)) is amended by striking ‘‘by September 

21 30, 1997’’ and inserting ‘‘during the preceding year’’. 
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1 SEC. 468E. GRANTS TO CENTERS FOR INDEPENDENT LIV2 ING IN STATES IN WHICH STATE FUNDING 

3 EQUALS OR EXCEEDS FEDERAL FUNDING. 

4 Section 723(c) of the Rehabilitation Act of 1973 (29 

5 U.S.C. 796f–2(c)) is amended by striking ‘‘by September 

6 30, 1997’’ and inserting ‘‘during the preceding year’’. 

7 SEC. 468F. STANDARDS AND ASSURANCES FOR CENTERS 

8 FOR INDEPENDENT LIVING. 

9 Section 725(b) of the Rehabilitation Act of 1973 (29 

10 U.S.C. 796f–4(b)) is amended by adding at the end the 

11 following: 

12 ‘‘(8) PROMOTING FULL ACCESS TO COMMUNITY

13 LIFE.—The center shall provide independent living 

14 services that promote full access to community life 

15 for individuals with significant disabilities. The serv16 ices shall include, as appropriate, facilitating transi17 tions from nursing homes and other institutions, in18 cluding institutions serving individuals with cognitive 

19 disabilities, to community-based residences, assisting 

20 individuals with significant disabilities at risk of en21 tering institutions to remain in the community, and 

22 promoting home ownership among individuals with 

23 significant disabilities.’’. 
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1 SEC. 468G. CENTERS FOR INDEPENDENT LIVING AUTHOR2 IZATION OF APPROPRIATIONS. 

3 Section 727 of the Rehabilitation Act of 1973 (29 

4 U.S.C. 796f–6) is amended by striking ‘‘fiscal years 1999 

5 through 2003’’ and inserting ‘‘fiscal years 2006 through 

6 2011’’. 

7 SEC. 468H. INDEPENDENT LIVING SERVICES FOR OLDER 

8 INDIVIDUALS WHO ARE BLIND. 

9 Chapter 2 of title VII of the Rehabilitation Act of 

10 1973 (29 U.S.C. 796j et seq.) is amended— 

11 (1) by redesignating sections 752 and 753 as 

12 sections 753 and 754, respectively; and 

13 (2) by inserting after section 751 the following: 

14 ‘‘SEC. 752. TRAINING AND TECHNICAL ASSISTANCE. 

15 ‘‘(a) GRANTS; CONTRACTS; OTHER ARRANGE16 MENTS.—For any fiscal year for which the funds appro17 priated to carry out this chapter exceed the funds appro18 priated to carry out this chapter for fiscal year 2003, the 

19 Commissioner shall first reserve from such excess, to pro20 vide training and technical assistance to designated State 

21 agencies for such fiscal year, not less than 1.8 percent, 

22 and not more than 2 percent, of the funds appropriated 

23 to carry out this chapter for the fiscal year involved. 

24 ‘‘(b) ALLOCATION.—From the funds reserved under 

25 subsection (a), the Commissioner shall make grants to, 

26 and enter into contracts and other arrangements with, en-
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1 tities that demonstrate expertise in the provision of serv2 ices to older individuals who are blind to provide training 

3 and technical assistance with respect to planning, devel4 oping, conducting, administering, and evaluating inde5 pendent living programs for older individuals who are 

6 blind. 

7 ‘‘(c) FUNDING PRIORITIES.—The Commissioner shall 

8 conduct a survey of designated State agencies that receive 

9 grants under section 753 regarding training and technical 

10 assistance needs in order to determine funding priorities 

11 for grants, contracts, and other arrangements under this 

12 section. 

13 ‘‘(d) REVIEW.—To be eligible to receive a grant or 

14 enter into a contract or other arrangement under this sec15 tion, an eligible entity shall submit an application to the 

16 Commissioner at such time, in such manner, containing 

17 a proposal to provide such training and technical assist18 ance, and containing such additional information as the 

19 Commissioner may require. 

20 ‘‘(e) PROHIBITION ON COMBINED FUNDS.—No funds 

21 reserved by the Commissioner under this section may be 

22 combined with funds appropriated under any other Act or 

23 part of this Act if the purpose of combining funds is to 

24 make a single discretionary grant or a single discretionary 

25 payment, unless such funds appropriated under this chap-
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1 ter are separately identified in such grant or payment and 

2 are used for the purposes of this chapter.’’. 

3 SEC. 468I. PROGRAM OF GRANTS. 

4 Section 753 of the Rehabilitation Act of 1973, as re5 designated by section 468H, is amended— 

6 (1) in subsection (g), by inserting ‘‘, or con7 tracts with,’’ after ‘‘grants to’’; 

8 (2) by striking subsection (h); 

9 (3) by redesignating subsections (i) and (j) as 

10 subsections (h) and (i), respectively; 

11 (4) in subsection (b), by striking ‘‘section 753’’ 

12 and inserting ‘‘section 754’’; 

13 (5) in subsection (c)— 

14 (A) in paragraph (1), by striking ‘‘section 

15 753’’ and inserting ‘‘section 754’’; and 

16 (B) in paragraph (2)— 

17 (i) by striking ‘‘subsection (i)’’ and in18 serting ‘‘subsection (h)’’; and 

19 (ii) by striking ‘‘subsection (j)’’ and 

20 inserting ‘‘subsection (i)’’; 

21 (6) in subsection (h), as redesignated by para22 graph (3)— 

23 (A) in paragraph (1), by striking ‘‘sub24 section (j)(4)’’ and inserting ‘‘subsection 

25 (i)(4)’’; and 
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1 (B) in paragraph (2)— 

2 (i) in subparagraph (A)(vi), by adding 

3 ‘‘and’’ after the semicolon; 

4 (ii) in subparagraph (B)(ii)(III), by 

5 striking ‘‘; and’’ and inserting a period; 

6 and 

7 (iii) by striking subparagraph (C); 

8 and 

9 (7) in subsection (i), as redesignated by para10 graph (3)— 

11 (A) by striking paragraph (2) and insert12 ing the following: 

13 ‘‘(2) MINIMUM ALLOTMENT.— 

14 ‘‘(A) STATES.—In the case of the several 

15 States, the District of Columbia, and the Com16 monwealth of Puerto Rico, the amount referred 

17 to in paragraph (1)(A) for a fiscal year is the 

18 greater of— 

19 ‘‘(i) $350,000; 

20 ‘‘(ii) an amount equal to the amount 

21 the State, the District of Columbia, or the 

22 Commonwealth of Puerto Rico received to 

23 carry out this chapter for fiscal year 2003; 

24 or 
380 

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‘‘(iii) an amount equal to 1 1 ⁄3 of 1 per2 cent of the amount appropriated under sec3 tion 754, and not reserved under section 

4 752, for the fiscal year and available for 

5 allotments under subsection (a). 

6 ‘‘(B) CERTAIN TERRITORIES.—In the case 

7 of Guam, American Samoa, the United States 

8 Virgin Islands, and the Commonwealth of the 

9 Northern Mariana Islands, the amount referred 

10 to in paragraph (1)(A) for a fiscal year is 

11 $60,000.’’; 

12 (B) in paragraph (3)(A), by striking ‘‘sec13 tion 753’’ and inserting ‘‘section 754, and not 

14 reserved under section 752,’’; and 

15 (C) in paragraph (4)(B)(i), by striking 

16 ‘‘subsection (i)’’ and inserting ‘‘subsection (h)’’. 

17 SEC. 468J. INDEPENDENT LIVING SERVICES FOR OLDER IN18 DIVIDUALS WHO ARE BLIND AUTHORIZATION 

19 OF APPROPRIATIONS. 

20 Section 754 of the Rehabilitation Act of 1973, as re21 designated by section 468H, is amended by striking ‘‘fiscal 

22 years 1999 through 2003’’ and inserting ‘‘fiscal years 

23 2006 through 2011’’. 
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1 Subchapter H—Miscellaneous 

2 SEC. 469. HELEN KELLER NATIONAL CENTER ACT. 

3 (a) GENERAL AUTHORIZATION OF APPROPRIA4 TIONS.—The first sentence of section 205(a) of the Helen 

5 Keller National Center Act (29 U.S.C. 1904(a)) is amend6 ed by striking ‘‘1999 through 2003’’ and inserting ‘‘2006 

7 through 2011’’. 

8 (b) HELEN KELLER NATIONAL CENTER FEDERAL

9 ENDOWMENT FUND.—The first sentence of section 

10 208(h) of the Helen Keller National Center Act (29 

11 U.S.C. 1907(h)) is amended by striking ‘‘1999 through 

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

13 CHAPTER 5—TRANSITION AND EFFECTIVE 

14 DATE 

15 SEC. 471. TRANSITION PROVISIONS. 

16 The Secretary of Labor shall, at the discretion of the 

17 Secretary, take such actions as the Secretary determines 

18 to be appropriate to provide for the orderly implementa19 tion of chapters 1 and 3 of this subtitle. The Secretary 

20 of Education shall, at the discretion of the Secretary, take 

21 such actions as the Secretary determines to be appropriate 

22 to provide for the orderly implementation of chapters 2 

23 and 4 of this subtitle. 
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1 SEC. 471A. EFFECTIVE DATE. 

2 Except as otherwise provided in this subtitle, this 

3 subtitle and the amendments made by this subtitle shall 

4 take effect on the date of enactment of this Act. 

5 TITLE V—MAKING EDUCATION 

6 MORE AFFORDABLE 

7 SEC. 501. SENSE OF THE SENATE REGARDING MAKING EDU8 CATION MORE AFFORDABLE. 

9 It is the sense of the Senate that— 

10 (1) parents should be able to trust that the tax 

11 code will not change so that they may adequately 

12 plan how to pay for their child’s education; and 

13 (2) therefore the following provisions in title IV 

14 of the Economic Growth and Tax Relief Reconcili15 ation Act of 2001 should be made permanent: 

16 (A) The increase in the Coverdell Edu17 cation Savings Account contribution to $2,000 

18 and the modification that permits such money 

19 to be used for kindergarten through grade 12 

20 expenses. 

21 (B) The modification making qualified tui22 tion savings programs tax-exempt and allowing 

23 private institutions to offer prepaid tuition 

24 plans. 
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1 (C) The increases to the income limits for 

2 the student loan interest deduction and the 

3 elimination of the 60-month rule. 

4 (D) The above-the-line deduction for quali5 fied tuition expenses of $3,000 in 2002 and 

6 2003, and $4,000 in 2004 and 2005. 

7 (E) The liberalization of tax-exempt fi8 nancing rules for public school construction. 

9 SEC. 502. AFFORDABLE EDUCATION PROVISIONS MADE 

10 PERMANENT. 

11 Title IX of the Economic Growth and Tax Relief Rec12 onciliation Act of 2001 (relating to sunset of provisions 

13 of such Act) shall not apply to title IV of such Act (relat14 ing to affordable education provisions). 

15 SEC. 503. CREDIT FOR EDUCATION, TUITION, AND TRANS16 PORTATION EXPENSES OF STUDENTS AS17 SIGNED TO SCHOOLS IDENTIFIED FOR 

18 SCHOOL IMPROVEMENT. 

19 (a) SHORT TITLE.—This section may be cited as the 

20 ‘‘Give Back to Parents Act of 2005’’. 

21 (b) SENSE OF THE SENATE.—It is the sense of the 

22 Senate that a refundable tax credit for up to 50 percent 

23 of the first $5,000 a parent spends to enable a child to 

24 attend another public or private school would help defray 

25 the cost of tuition at and transportation to a better school, 
384 

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1 and would therefore enable parents of children assigned 

2 to schools identified for school improvement access to bet3 ter education options. 

4 (c) AMENDMENT.—Subpart C of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to refundable credits) is amended by redes7 ignating section 36 as section 37 and by inserting after 

8 section 35 the following new section: 

9 ‘‘SEC. 36. EDUCATION EXPENSES OF STUDENTS ASSIGNED 

10 TO SCHOOLS IDENTIFIED FOR SCHOOL IM11 PROVEMENT. 

12 ‘‘(a) GENERAL RULE.—In the case of an individual, 

13 there shall be allowed as a credit against the tax imposed 

14 by this subtitle for the taxable year 50 percent of the 

15 amount of the qualified education expenses paid by the 

16 taxpayer during the taxable year for the education of any 

17 individual— 

18 ‘‘(1) with respect to whom the taxpayer is al19 lowed a deduction under section 151(c), and 

20 ‘‘(2) who would have otherwise been assigned to 

21 a public school identified for school improvement 

22 under section 1116 of the Elementary and Sec23 ondary Education Act of 1965 but who incurred 

24 qualified education expenses to enroll in a public or 

25 nonpublic school not identified for school improve-
385 

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1 ment under such section for the period to which 

2 such expenses relate. 

3 ‘‘(b) LIMITATION.—The amount of qualified edu4 cation expenses which may be taken into account under 

5 subsection (a) for any taxable year with respect to any 

6 1 individual shall not exceed $5,000. 

7 ‘‘(c) DEFINITIONS.—For purposes of this section— 

8 ‘‘(1) QUALIFIED EDUCATION EXPENSES.— 

9 ‘‘(A) IN GENERAL.—The term ‘qualified 

10 education expenses’ means amounts paid for— 

11 ‘‘(i) tuition and fees required for the 

12 enrollment or attendance of a student at 

13 an eligible educational institution, 

14 ‘‘(ii) transportation to and from an in15 dividual’s home and an eligible educational 

16 institution, and 

17 ‘‘(iii) books, supplies, computer equip18 ment (including related software and serv19 ices), and other equipment required for 

20 courses of instruction at an eligible edu21 cational institution. 

22 ‘‘(B) MEALS AND LODGING EXPENSES NOT

23 INCLUDED.—Such term does not include any 

24 amount paid, directly or indirectly, for meals, 

25 lodging, or similar personal, living, or family ex-
386 

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1 penses. In the event an amount paid for tuition 

2 or fees includes an amount for meals, lodging, 

3 or similar expenses which is not separately stat4 ed, the portion of such amount which is attrib5 utable to meals, lodging, or similar expenses 

6 shall be determined under regulations pre7 scribed by the Secretary. 

8 ‘‘(C) SPECIAL RULE FOR HOME SCHOOL9 ING.—In the case of education furnished in the 

10 home (as a substitute for public education) 

11 which meets the requirements of State law re12 lating to compulsory school attendance, the 

13 term ‘qualified education expenses’ means 

14 amounts paid for tutoring, books, supplies, 

15 computer equipment (including related software 

16 and services), and other equipment directly 

17 used in furnishing such education. 

18 ‘‘(2) ELIGIBLE EDUCATIONAL INSTITUTION.— 

19 The term ‘eligible educational institution’ means— 

20 ‘‘(A) a secondary school, 

21 ‘‘(B) an elementary school, or 

22 ‘‘(C) any private, parochial, religious, or 

23 home school organized for the purpose of pro24 viding elementary or secondary education, or 

25 both. 
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1 ‘‘(3) ELEMENTARY AND SECONDARY

2 SCHOOLS.—The terms ‘elementary school’ and ‘sec3 ondary school’ have the respective meanings given 

4 such terms by section 9101 of the Elementary and 

5 Secondary Education Act of 1965. 

6 ‘‘(d) ADJUSTMENT FOR CERTAIN SCHOLARSHIPS.— 

7 The amounts otherwise taken into account under sub8 section (a) as qualified education expenses of any indi9 vidual during any period shall be reduced (before the ap10 plication of subsection (b)) by the sum of the amounts 

11 received with respect to such individual for the taxable 

12 year as a qualified scholarship which under section 117 

13 is not includable in gross income. 

14 ‘‘(e) REGULATIONS.—The Secretary shall prescribe 

15 such regulations as may be necessary to carry out the pro16 visions of this section.’’. 

17 (d) TECHNICAL AMENDMENTS.— 

18 (1) Paragraph (2) of section 1324(b) of title 

19 31, United States Code, is amended by inserting be20 fore the period ‘‘, or from section 36 of such Code’’. 

21 (2) The table of sections for subpart C of part 

22 IV of subchapter A of chapter 1 of such Code is 

23 amended by striking the last item and inserting the 

24 following new items: 
388 

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‘‘Sec. 36. Education expenses of students assigned to schools 

identified for school improvement. 

‘‘Sec. 37. Overpayments of tax.’’. 

Æ