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second program year that be-
gins after the date of enact-
ment of the Workforce Invest-
ment Act Amendments of
2005;
‘‘(BB) 1.0 percent of the
amount provided for such
program in the State for the
third program year that be-
gins after such date;
‘‘(CC) 1.25 percent of
the amount provided for such
program in the State for the
fourth program year that be-
gins after such date; and
‘‘(DD) 1.5 percent of the
amount provided for such
program in the State for the
fifth and each succeeding
program year that begins
after such date.
‘‘(III) FEDERAL
DIRECT
SPEND-
ING
PROGRAMS.—An entity admin-
istering a program funded with direct
spending 
as 
defined 
in 
section
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250(c)(8) of the Balanced Budget and
Emergency Deficit Control Act of 1985
(2 U.S.C. 900(c)(8)) shall not be re-
quired to provide, for purposes of this
paragraph, an amount in excess of the
amount determined to be equivalent to
the cost of the proportionate use of the
one-stop centers for such program in
the State.
‘‘(IV) NATIVE
AMERICAN
PRO-
GRAMS.—Native American programs
established under section 166 shall not
be subject to the provisions of this sub-
section or subsection (i). The method
for determining the appropriate por-
tion of funds to be provided by such
Native American programs to pay for
the costs of infrastructure of a one-stop
center shall be determined as part of
the development of the memorandum of
understanding under subsection (c) for
the one-stop center and shall be stated
in the memorandum.
‘‘(B) ALLOCATION
BY
GOVERNOR.—From
the funds provided under subparagraph (A), the
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Governor shall allocate the funds to local areas
in accordance with the formula established under
subparagraph (C) for the purposes of assisting in
paying the costs of infrastructure of one-stop cen-
ters.
‘‘(C) ALLOCATION
FORMULA.—The State
board shall develop a formula to be used by the
Governor to allocate the funds provided under
subparagraph (A) to local areas not funding in-
frastructure costs under the option described in
paragraph (1)(A)(i)(I). The formula shall be
based on factors including the number of one-
stop centers in a local area, the population
served by such centers, the services provided by
such centers, and other factors relating to the
performance of such centers that the State board
determines are appropriate.
‘‘(D) COSTS OF INFRASTRUCTURE.—In this
subsection, the term ‘costs of infrastructure’, used
with respect to a one-stop center, means the non-
personnel costs that are necessary for the general
operation of the one-stop center, including the
rental costs of the facilities, the costs of utilities
and maintenance, equipment (including assess-
ment-related products and adaptive technology
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for individuals with disabilities), and technology
to facilitate remote access to the one-stop center’s
strategic planning activities, and common out-
reach activities.
‘‘(i) OTHER FUNDS.—
‘‘(1) IN GENERAL.—Subject to the memorandum
of understanding described in subsection (c) for the
one-stop delivery system involved, in addition to the
funds provided to carry out subsection (h), a portion
of funds made available under Federal law author-
izing the programs described in subsection (b) and
administered by one-stop partners, or the noncash re-
sources available under such programs, shall be used
to pay the additional costs relating to the operation
of the one-stop delivery system that are not paid from
the funds provided under subsection (h), as deter-
mined in accordance with paragraph (2), to the ex-
tent not inconsistent with the Federal law involved.
Such costs shall include the costs of the provision of
core services described in section 134(d)(2) applicable
to each program and may include common costs that
are not paid from the funds provided under sub-
section (h).
‘‘(2) 
DETERMINATION
AND
GUIDANCE.—The
method for determining the appropriate portion of
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funds and noncash resources to be provided by each
program under paragraph (1) for a one-stop center
shall be determined as part of the development of the
memorandum of understanding under subsection (c)
for the one-stop center and shall be stated in the
memorandum. The State board shall provide guidance
to facilitate the determination of an appropriate allo-
cation of the funds and noncash resources in local
areas.’’.
SEC. 118. ELIGIBLE PROVIDERS OF TRAINING SERVICES.
Section 122 (29 U.S.C. 2842) is amended to read as
follows:
‘‘SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF
TRAINING SERVICES.
‘‘(a) ELIGIBILITY.—
‘‘(1) IN
GENERAL.—The Governor, after con-
sultation with the State board, shall establish criteria
and procedures regarding the eligibility of providers
of training services described in section 134(d)(4) (re-
ferred to in this section as ‘training services’) to re-
ceive funds provided under section 133(b) for the pro-
vision of training services.
‘‘(2) PROVIDERS.—Subject to the provisions of
this section, to be eligible to receive the funds provided
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under section 133(b) for the provision of training
services, the provider shall be—
‘‘(A) a postsecondary educational institu-
tion that—
‘‘(i) is eligible to receive Federal funds
under title IV of the Higher Education Act
of 1965 (20 U.S.C. 1070 et seq.); and
‘‘(ii) provides a program that leads to
an associate degree, baccalaureate degree, or
industry-recognized certification;
‘‘(B) an entity that carries out programs
under the Act of August 16, 1937 (commonly
known as the ‘National Apprenticeship Act’; 50
Stat. 664, chapter 663; 29 U.S.C. 50 et seq.); or
‘‘(C) another public or private provider of
a program of training services.
‘‘(3) INCLUSION
IN
LIST
OF
ELIGIBLE
PRO-
VIDERS.—A provider described in subparagraph (A)
or (C) of paragraph (2) shall comply with the criteria
and procedures established under this section to be in-
cluded on the list of eligible providers of training
services described in subsection (d). A provider de-
scribed in paragraph (2)(B) shall be included on the
list of eligible providers of training services described
in subsection (d) for so long as the provider remains
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certified by the Department of Labor to carry out the
programs described in paragraph (2)(B).
‘‘(b) CRITERIA.—
‘‘(1) IN GENERAL.—The criteria established by
the Governor pursuant to subsection (a) shall take
into account—
‘‘(A) the performance of providers of train-
ing services with respect to the performance
measures and other matters for which informa-
tion is required under paragraph (2) and other
appropriate measures of performance outcomes
for those participants receiving training services
under this subtitle (taking into consideration the
characteristics of the population served and rel-
evant economic conditions);
‘‘(B) the need to ensure access to training
services throughout the State, including any
rural areas;
‘‘(C) the information such providers are re-
quired to report to State agencies with respect to
Federal and State programs (other than the pro-
gram carried out under this subtitle), including
one-stop partner programs;
‘‘(D) the requirements for State licensing of
providers of training services, and the licensing
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status of each provider of training services if ap-
plicable;
‘‘(E) to the extent practicable, encouraging
the use of industry-recognized standards and cer-
tification;
‘‘(F) the ability of the providers to offer pro-
grams that lead to a degree or an industry-recog-
nized certification;
‘‘(G) the ability to provide training services
to hard-to-serve populations, including individ-
uals with disabilities; and
‘‘(H) such other factors as the Governor de-
termines are appropriate to ensure—
‘‘(i) the quality of services provided;
‘‘(ii) the accountability of the pro-
viders;
‘‘(iii) that the one-stop centers in the
State will ensure that such providers meet
the needs of local employers and partici-
pants;
‘‘(iv) the informed choice of partici-
pants under chapter 5; and
‘‘(v) that the collection of information
required is not unduly burdensome or costly
to providers.
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‘‘(2) INFORMATION.—The criteria established by
the Governor shall require that a provider of training
services submit appropriate, accurate, and timely in-
formation to the State for purposes of carrying out
subsection (d), with respect to participants receiving
training services under this subtitle in the applicable
program, including—
‘‘(A) information on degrees and industry-
recognized certifications received by such partici-
pants;
‘‘(B) information on costs of attendance for
such participants;
‘‘(C) information on the program comple-
tion rate for such participants; and
‘‘(D) information on the performance of the
provider with respect to the performance meas-
ures described in section 136 for such partici-
pants (taking into consideration the characteris-
tics of the population served and relevant eco-
nomic conditions), which may include informa-
tion specifying the percentage of such partici-
pants who entered unsubsidized employment in
an occupation related to the program.
‘‘(3) RENEWAL.—The criteria established by the
Governor shall also provide for biennial review and
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renewal of eligibility under this section for providers
of training services.
‘‘(4) LOCAL
CRITERIA.—A local board in the
State may establish criteria in addition to the cri-
teria established by the Governor, or may require
higher levels of performance than required under the
criteria established by the Governor, for purposes of
determining the eligibility of providers of training
services to receive funds described in subsection (a) to
provide the services in the local area involved.
‘‘(5) INFORMATION TO ESTABLISH INITIAL ELIGI-
BILITY.—
‘‘(A) IN GENERAL.—In an effort to provide
the highest-quality training services and respon-
siveness to new and emerging industries, pro-
viders may seek initial eligibility under this sec-
tion as providers of training services. The cri-
teria established by the Governor shall require
that a provider who has not previously been an
eligible provider of training services under this
section provide the information described in sub-
paragraph (B).
‘‘(B) INFORMATION.—The provider shall
provide verifiable program-specific performance
information supporting the provider’s ability to
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serve participants under this subtitle. The infor-
mation provided under this subparagraph may
include information on outcome measures such
as job placement and wage increases for individ-
uals participating in the program, information
on business partnerships and other factors that
indicate high-quality training services, and in-
formation on alignment with industries targeted
for potential employment opportunities.
‘‘(C) PROVISION.—The provider shall pro-
vide the information described in subparagraph
(B) to the Governor and the local boards in a
manner that will permit the Governor and the
local boards to make a decision on inclusion of
the provider on the list of eligible providers de-
scribed in subsection (d).
‘‘(c) PROCEDURES.—The procedures established under
subsection (a) shall identify the application process for a
provider of training services to become eligible to receive
funds provided under section 133(b) for the provision of
training services, and identify the respective roles of the
State and local areas in receiving and reviewing the appli-
cations and in making determinations of such eligibility
based on the criteria established under this section. The pro-
cedures shall also establish a process for a provider of train-
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ing services to appeal a denial or termination of eligibility
under this section, that includes an opportunity for a hear-
ing and prescribes appropriate time limits to ensure
prompt resolution of the appeal.
‘‘(d) INFORMATION
TO
ASSIST
PARTICIPANTS
IN
CHOOSING PROVIDERS.—In order to facilitate and assist
participants in choosing employment and training activi-
ties under chapter 5 and in choosing providers of training
services, the Governor shall ensure that an appropriate list
of providers determined to be eligible under this section in
the State, accompanied by appropriate information, is pro-
vided to the one-stop delivery system in the State. The ac-
companying information shall consist of information pro-
vided by providers described in subparagraphs (A) and (C)
of subsection (a)(2) in accordance with subsection (b) (in-
cluding information on receipt of degrees and industry-rec-
ognized certifications, and costs of attendance, for partici-
pants receiving training services under this subtitle in ap-
plicable programs) and such other information as the Sec-
retary determines is appropriate. The list and the accom-
panying information shall be made available to such par-
ticipants and to members of the public through the one-stop
delivery system in the State.
‘‘(e) ENFORCEMENT.—
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‘‘(1) IN GENERAL.—The criteria and procedures
established under this section shall provide the fol-
lowing:
‘‘(A) 
INTENTIONALLY
SUPPLYING
INAC-
CURATE INFORMATION.—Upon a determination,
by an individual or entity specified in the cri-
teria or procedures, that a provider of training
services, or individual providing information on
behalf of the provider, intentionally supplied in-
accurate information under this section, the eli-
gibility of such provider to receive funds under
chapter 5 shall be terminated for a period of
time that is not less than 2 years.
‘‘(B) SUBSTANTIAL
VIOLATIONS.—Upon a
determination, by an individual or entity speci-
fied in the criteria or procedures, that a provider
of training services substantially violated any re-
quirement under this title, the eligibility of such
provider to receive funds under the program in-
volved may be terminated, or other appropriate
action may be taken.
‘‘(C) REPAYMENT.—A provider of training
services whose eligibility is terminated under
subparagraph (A) or (B) shall be liable for the
repayment of funds received under chapter 5
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during a period of noncompliance described in
such subparagraph.
‘‘(2) CONSTRUCTION.—Paragraph (1) shall be
construed to provide remedies and penalties that sup-
plement, but do not supplant, other civil and crimi-
nal remedies and penalties.
‘‘(f) AGREEMENTS WITH OTHER STATES.—States
may enter into agreements, on a reciprocal basis, to permit
eligible providers of training services to accept career schol-
arship accounts provided in another State.
‘‘(g) OPPORTUNITY TO SUBMIT COMMENTS.—In estab-
lishing criteria, procedures, requirements for information,
and the list of eligible providers described in subsection (d),
the Governor shall provide an opportunity for interested
members of the public to make recommendations and sub-
mit comments regarding such criteria, procedures, require-
ments for information, and list.
‘‘(h) TRANSITION PERIOD FOR IMPLEMENTATION.—
The requirements of this section shall be implemented not
later than December 31, 2006. In order to facilitate early
implementation of this section, the Governor may establish
transition procedures under which providers eligible to pro-
vide training services under chapter 5 as such chapter was
in effect on the day before the date of enactment of the Work-
force Investment Act Amendments of 2005 may continue to
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be eligible to provide such services until December 31, 2006,
or until such earlier date as the Governor determines to be
appropriate.
‘‘(i) ON-THE-JOB TRAINING, CUSTOMIZED TRAINING,
OR INCUMBENT WORKER TRAINING EXCEPTION.—
‘‘(1) IN GENERAL.—Providers of on-the-job train-
ing, customized training, or incumbent worker train-
ing shall not be subject to the requirements of sub-
sections (a) through (h).
‘‘(2) COLLECTION AND DISSEMINATION OF INFOR-
MATION.—A one-stop operator in a local area shall
collect such performance information from providers
of on-the-job training, customized training, and in-
cumbent worker training as the Governor may re-
quire, determine whether the providers meet such per-
formance criteria as the Governor may require, and
disseminate information identifying providers that
meet the criteria as eligible providers, and the per-
formance information, through the one-stop delivery
system. Providers determined to meet the criteria
shall be considered to be identified as eligible pro-
viders of training services.’’.
SEC. 119. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
Section 123 (29 U.S.C. 2843) is amended to read as
follows:
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‘‘SEC. 123. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
‘‘(a) IN GENERAL.—From the funds allocated under
section 128(b) to a local area, the local board for such area
shall award grants or contracts on a competitive basis to
providers of youth activities identified based on the criteria
in the State plan described in section 112 and shall conduct
oversight with respect to such providers.
‘‘(b) EXCEPTIONS.—A local board may award grants
or contracts on a sole-source basis if such board determines
there is an insufficient number of eligible providers of youth
activities in the local area involved (such as a rural area)
for grants and contracts to be awarded on a competitive
basis under subsection (a).’’.
SEC. 120. YOUTH ACTIVITIES.
(a) STATE ALLOTMENTS.—Section 127 (29 U.S.C.
2852) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘oppor-
tunity’’ and inserting ‘‘challenge’’; and
(B) in paragraph (2), by striking ‘‘make al-
lotments’’ and all that follows and inserting
‘‘make allotments and grants, and enter into
contracts and cooperative agreements, in accord-
ance with subparagraphs (A)(iv), (B), and (C) of
subsection (b)(1).’’; and
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(2) by striking subsection (b) and inserting the
following:
‘‘(b) ALLOTMENT AMONG STATES.—
‘‘(1) YOUTH ACTIVITIES.—
‘‘(A) YOUTH
CHALLENGE
GRANTS
AND
YOUTH ACTIVITIES FOR FARMWORKERS AND NA-
TIVE AMERICANS.—
‘‘(i) IN
GENERAL.—For each fiscal
year in which the amount appropriated
under 
section 
137(a) 
exceeds
$1,000,000,000, the Secretary shall reserve a
portion of the amount to provide youth ac-
tivities under section 167 (relating to mi-
grant and seasonal farmworker programs)
and provide youth challenge grants and
other activities under section 169 (relating
to youth challenge grants).
‘‘(ii) PORTION.—The portion referred
to in clause (i) shall equal, for a fiscal
year—
‘‘(I) except as provided in sub-
clause (II), the difference obtained by
subtracting $1,000,000,000 from the
amount appropriated under section
137(a) for the fiscal year; or
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‘‘(II) for any fiscal year in which
the amount is $1,250,000,000 or great-
er, $250,000,000.
‘‘(iii) YOUTH
ACTIVITIES
FOR
FARM-
WORKERS.—For a fiscal year described in
clause (i), the Secretary shall reserve the
greater of $10,000,000 or 4 percent of the
portion described in clause (i) for a fiscal
year to provide youth activities under sec-
tion 167. For a fiscal year not described in
clause (i), the Secretary shall reserve
$10,000,000 of the amount appropriated
under section 137(a) to provide youth ac-
tivities under section 167.
‘‘(iv) YOUTH ACTIVITIES FOR NATIVE
AMERICANS.—From the amount appro-
priated under section 137(a) for each fiscal
year that is not reserved under clause (i) or
(iii), the Secretary shall reserve not more
than 11⁄2
percent of such appropriated
amount to provide youth activities under
section 166 (relating to Native Americans).
‘‘(B) OUTLYING AREAS.—
‘‘(i) IN GENERAL.—From the amount
appropriated under section 137(a) for each
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fiscal year that is not reserved under sub-
paragraph (A), the Secretary shall reserve
not more than 1⁄4 of 1 percent of the appro-
priated amount to provide assistance to the
outlying areas to carry out youth activities
and statewide workforce investment activi-
ties.
‘‘(ii) LIMITATION FOR FREELY ASSOCI-
ATED STATES.—
‘‘(I) COMPETITIVE GRANTS.—The
Secretary shall use funds described in
clause (i) to award grants to Guam,
American Samoa, the Commonwealth
of the Northern Mariana Islands, and
the Freely Associated States to carry
out youth activities and statewide
workforce investment activities.
‘‘(II) AWARD
BASIS.—The Sec-
retary shall award grants pursuant to
subclause (I) on a competitive basis
and pursuant to the recommendations
of experts in the field of employment
and training, working through the Pa-
cific Region Educational Laboratory
in Honolulu, Hawaii.
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‘‘(III) 
ASSISTANCE
REQUIRE-
MENTS.—Any Freely Associated State
that desires to receive assistance under
this subparagraph shall submit an ap-
plication to the Secretary and shall in-
clude 
in 
the 
application 
for
assistance—
‘‘(aa) 
information 
dem-
onstrating that the Freely Associ-
ated State will meet all conditions
that apply to States under this
title;
‘‘(bb) an assurance that, not-
withstanding any other provision
of this title, the Freely Associated
State will use such assistance only
for the direct provision of services;
and
‘‘(cc) such other information
and assurances as the Secretary
may require.
‘‘(IV) ADMINISTRATIVE
COSTS.—
The Secretary may provide not more
than 5 percent of the funds made
available for grants under subclause (I)
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to pay the administrative costs of the
Pacific Region Educational Labora-
tory in Honolulu, Hawaii, regarding
activities assisted under this clause.
‘‘(iii) ADDITIONAL
REQUIREMENT.—
The provisions of Public Law 95–134, per-
mitting the consolidation of grants by the
outlying areas, shall not apply to assistance
provided to those areas, including the Free-
ly Associated States, under this subpara-
graph.
‘‘(C) STATES.—
‘‘(i) IN GENERAL.—From the remain-
der of the amount appropriated under sec-
tion 137(a) for a fiscal year that exists after
the Secretary determines the amounts to be
reserved under subparagraphs (A) and (B),
the Secretary shall allot to the States—
‘‘(I) an amount of the remainder
that is less than or equal to the total
amount that was allotted to States for
fiscal 
year 
2005 
under 
section
127(b)(1)(C) of this Act (as in effect on
the day before the date of enactment of
the Workforce Investment Act Amend-
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ments of 2005), in accordance with the
requirements of clause (ii) of such sec-
tion 127(b)(1)(C); and
‘‘(II) the amount of the remain-
der, if any, in excess of the amount re-
ferred to in subclause (I), in accord-
ance with clause (ii).
‘‘(ii) FORMULA.—Of the amount de-
scribed in clause (i)(II)—
‘‘(I) 331⁄3 percent shall be allotted
on the basis of the relative number of
individuals in the civilian labor force
who are ages 16 through 21 in each
State, compared to the total number of
individuals in the civilian labor force
who are ages 16 through 21 in all
States;
‘‘(II) 331⁄3 percent shall be allot-
ted on the basis of the relative number
of unemployed individuals in each
State, compared to the total number of
unemployed individuals in all States;
and
‘‘(III) 331⁄3 percent shall be allot-
ted on the basis of the relative number
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of disadvantaged youth who are ages
16 through 21 in each State, compared
to the total number of disadvantaged
youth who are ages 16 through 21 in
all States.
‘‘(iii) MINIMUM
AND
MAXIMUM
PER-
CENTAGES.—
‘‘(I) MINIMUM PERCENTAGE.—The
Secretary shall ensure that no State
shall receive an allotment percentage
under this subparagraph for a fiscal
year that is less than 90 percent of the
allotment percentage of the State for
the preceding fiscal year.
‘‘(II) MAXIMUM
PERCENTAGE.—
Subject to subclause (I), the Secretary
shall ensure that no State shall receive
an allotment percentage under this
subparagraph for a fiscal year that is
more than 130 percent of the allotment
percentage of the State for the pre-
ceding fiscal year.
‘‘(iv) SMALL STATE MINIMUM ALLOT-
MENT.—Subject to clause (iii), the Sec-
retary shall ensure that no State shall re-
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ceive an allotment under this subparagraph
that is less than the total of—
‘‘(I) 
3⁄10
of 
percent 
of
$1,000,000,000 of the remainder de-
scribed in clause (i) for the fiscal year;
and
‘‘(II) if the remainder described
in clause (i) for the fiscal year exceeds
$1,000,000,000, 2⁄5 of 1 percent of the
excess.
‘‘(2) DEFINITIONS.—For the purposes of para-
graph (1):
‘‘(A) ALLOTMENT PERCENTAGE.—The term
‘allotment percentage’, used with respect to fiscal
year 2006 or a subsequent fiscal year, means a
percentage of the remainder described in para-
graph (1)(C)(i) that is received by the State in-
volved through an allotment made under this
subsection for the fiscal year. The term, used
with respect to fiscal year 2005, means the per-
centage of the amounts allotted to States under
this chapter (as in effect on the day before the
date of enactment of the Workforce Investment
Act Amendments of 2005) that is received by the
State involved for fiscal year 2005.
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‘‘(B) DISADVANTAGED YOUTH.—Subject to
paragraph (3), the term ‘disadvantaged youth’
means an individual who is age 16 through 21
who received an income, or is a member of a
family that received a total family income, that,
in relation to family size, does not exceed the
higher of—
‘‘(i) the poverty line; or
‘‘(ii) 70 percent of the lower living
standard income level.
‘‘(C) FREELY
ASSOCIATED
STATE.—The
term ‘Freely Associated State’ means the Repub-
lic of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau.
‘‘(3) SPECIAL RULE.—For purposes of the for-
mula specified in paragraph (1)(C), the Secretary
shall, as appropriate and to the extent practicable, ex-
clude college students and members of the Armed
Forces from the determination of the number of dis-
advantaged youth.’’.
(b) REALLOTMENT.—
(1) AMENDMENT.—Section 127(c) (29 U.S.C.
2852(c)) is amended—
(A) by striking paragraph (2) and inserting
the following:
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‘‘(2) AMOUNT.—The amount available for real-
lotment for a program year is equal to the amount
by which the unexpended balance at the end of the
program year prior to the program year for which the
determination is made exceeds 30 percent of the total
amount of funds available to the State under this sec-
tion during such prior program year (including
amounts allotted to the State in all prior program
years that remained available). For purposes of this
paragraph, the unexpended balance is the amount
that is the difference between—
‘‘(A) the total amount of funds available to
the State under this section during the program
year prior to the program year for which the de-
termination is made (including amounts allotted
to the State in all prior program years that re-
mained available); and
‘‘(B) the accrued expenditures during such
prior program year.’’;
(B) in paragraph (3)—
(i) by striking ‘‘for the prior program
year’’ and inserting ‘‘for the program year
for which the determination is made’’; and
(ii) by striking ‘‘such prior program
year’’ and inserting ‘‘such program year’’;
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(C) by striking paragraph (4) and inserting
the following:
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible State means a State that does not
have an amount available for reallotment under para-
graph (2) for the program year for which the deter-
mination under paragraph (2) is made.’’; and
(D) in paragraph (5), by striking ‘‘obliga-
tion’’ and inserting ‘‘accrued expenditure’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect for the program year
that begins after the date of enactment of this Act.
(c) WITHIN STATE ALLOCATIONS.—
(1) RESERVATION FOR STATEWIDE ACTIVITIES.—
Section 128(a) (29 U.S.C. 2853(a)) is amended to
read as follows:
‘‘(a) RESERVATIONS FOR STATEWIDE ACTIVITIES.—
‘‘(1) IN
GENERAL.—The Governor of a State
shall reserve not more than 15 percent of each of the
amounts 
allotted 
to 
the 
State 
under 
section
127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of
section 132(b) for a fiscal year for statewide workforce
investment activities.
‘‘(2) USE OF FUNDS.—Regardless of whether the
reserved 
amounts 
were 
allotted 
under 
section
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HR 27 EAS
127(b)(1)(C), or under paragraph (1)(B) or (2)(B) of
section 132(b), the Governor may use the reserved
amounts to carry out statewide activities under sec-
tion 129(b) or statewide employment and training ac-
tivities, for adults or dislocated workers, under section
134(a).’’.
(2) WITHIN STATE ALLOCATION.—Section 128(b)
(29 U.S.C. 2853(b)) is amended to read as follows:
‘‘(b) WITHIN STATE ALLOCATIONS.—
‘‘(1) IN GENERAL.—Of the amount allotted to the
State under section 127(b)(1)(C) and not reserved
under subsection (a)(1)—
‘‘(A) a portion equal to not less than 80
percent of such amount shall be allocated by the
Governor to local areas in accordance with para-
graph (2); and
‘‘(B) a portion equal to not more than 20
percent of such amount may be allocated by the
Governor to local areas in accordance with para-
graph (3).
‘‘(2) ESTABLISHED FORMULA.—
‘‘(A) IN
GENERAL.—Of the portion de-
scribed in paragraph (1)(A), the Governor shall
allocate—
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‘‘(i) 331⁄3 percent on the basis of the
relative number of individuals in the civil-
ian labor force who are ages 16 through 21
in each local area, compared to the total
number of individuals in the civilian labor
force who are ages 16 through 21 in all
local areas in the State;
‘‘(ii) 331⁄3 percent on the basis of the
relative number of unemployed individuals
in each local area, compared to the total
number of unemployed individuals in all
local areas in the State; and
‘‘(iii) 331⁄3 percent on the basis of the
relative number of disadvantaged youth who
are ages 16 through 21 in each local area,
compared to the total number of disadvan-
taged youth who are ages 16 through 21 in
all local areas in the State.
‘‘(B) MINIMUM
AND
MAXIMUM
PERCENT-
AGES.—
‘‘(i) 
MINIMUM
PERCENTAGE.—The
Governor shall ensure that no local area
shall receive an allocation percentage under
this paragraph for a fiscal year that is less
than 90 percent of the allocation percentage