subtitle, the local board shall identify eligible 
providers of training services described in section 
134(c)(4) in the local area, annually review the 
outcome of individual training providers using 
the criteria under section 122(b)(2), and des-
ignate providers in the local area who have dem-
onstrated the highest level of success with respect 
to such indicators as priority providers for the 
following program year. 
‘‘(C) IDENTIFICATION
OF
ELIGIBLE
PRO-
VIDERS OF WORK READY SERVICES.—If the one- 
stop operator does not provide the services de-
scribed in section 134(c)(2) in the local area, the 
local board shall identify eligible providers of 
such services in the local area by awarding con-
tracts. 
‘‘(6) PROGRAM OVERSIGHT.—The local board, in 
partnership with the chief elected official, shall be re-
sponsible for— 
‘‘(A) ensuring the appropriate use and 
management of the funds provided for local em-
ployment and training activities authorized 
under section 134(b); and 
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‘‘(B) conducting oversight of the one-stop 
delivery system in the local area authorized 
under section 121. 
‘‘(7) NEGOTIATION
OF
LOCAL
PERFORMANCE 
MEASURES.—The local board, the chief elected official, 
and the Governor shall negotiate and reach agreement 
on local performance measures as described in section 
136(c). 
‘‘(8) TECHNOLOGY
IMPROVEMENTS.—The local 
board shall develop strategies for technology improve-
ments to facilitate access to services authorized under 
this subtitle and carried out in the local area, includ-
ing in remote areas.’’; 
(4) in subsection (e)— 
(A) by inserting ‘‘electronic means and’’ 
after ‘‘regular basis through’’; and 
(B) by striking ‘‘and the award of grants or 
contracts to eligible providers of youth activi-
ties,’’; 
(5) in subsection (f)— 
(A) in paragraph (1)(A), by striking ‘‘sec-
tion 
134(d)(4)’’ 
and 
inserting 
‘‘section 
134(c)(4)’’; and 
(B) by striking paragraph (2) and inserting 
the following: 
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‘‘(2) WORK READY SERVICES, DESIGNATION, OR 
CERTIFICATION
AS
ONE-STOP
OPERATORS.—A local 
board may provide work ready services described in 
section 134(c)(2) through a one-stop delivery system 
described in section 121 or be designated or certified 
as a one-stop operator only with the agreement of the 
chief elected official and the Governor.’’; 
(6) in subsection (g)(1), by inserting ‘‘or partici-
pate in any action taken’’ after ‘‘vote’’; and 
(7) by striking subsections (h) and (i). 
SEC. 107. LOCAL PLAN. 
Section 118 (29 U.S.C. 2833) is amended— 
(1) in subsection (a), by striking ‘‘5-year’’ and 
inserting ‘‘3-year’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) CONTENTS.—The local plan shall include— 
‘‘(1) a description of the analysis of the local 
area’s economic and workforce conditions conducted 
under section 117(d)(2)(A)(i), and an assurance that 
the local board will use such analysis to carry out the 
activities under this subtitle; 
‘‘(2) a description of the one-stop delivery system 
in the local area, including— 
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‘‘(A) a description of how the local board 
will ensure— 
‘‘(i) the continuous improvement of eli-
gible providers of services through the sys-
tem; and 
‘‘(ii) that such providers meet the em-
ployment needs of local businesses and par-
ticipants; and 
‘‘(B) a description of how the local board 
will facilitate access to services provided through 
the one-stop delivery system consistent with sec-
tion 117(d)(8); 
‘‘(3) a description of the strategies and services 
that will be used in the local area— 
‘‘(A) to more fully engage employers, in-
cluding small businesses and employers in in-de-
mand industries and occupations important to 
the local economy; 
‘‘(B) to meet the needs of employers in the 
local area; 
‘‘(C) to better coordinate workforce develop-
ment programs with economic development ac-
tivities; and 
‘‘(D) to better coordinate workforce develop-
ment programs with employment, training, and 
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literacy services carried out by nonprofit organi-
zations, including public libraries, as appro-
priate; 
‘‘(4) a description of how the local board will 
convene (or help to convene) industry or sector part-
nerships that lead to collaborative planning, resource 
alignment, and training efforts across multiple firms 
for a range of workers employed or potentially em-
ployed by a targeted industry cluster— 
‘‘(A) to encourage industry growth and 
competitiveness and to improve worker training, 
retention, and advancement in targeted industry 
clusters; 
‘‘(B) to address the immediate and long- 
term skilled workforce needs of in-demand indus-
tries, small businesses, and other occupations im-
portant to the local economy; and 
‘‘(C) to address critical skill gaps within 
and across industries; 
‘‘(5) a description of how the funds reserved 
under section 117(d)(4)(A)(ii) will be used to carry 
out activities described in section 134(c)(4); 
‘‘(6) a description of how the local board will co-
ordinate workforce investment activities carried out 
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in the local area with statewide activities, as appro-
priate; 
‘‘(7) a description of how the local area will— 
‘‘(A) coordinate activities with the local 
area’s disability community and with services 
provided under section 614(d)(1)(A)(i)(VIII) of 
the Individuals with Disabilities Education Act 
(20 U.S.C. 1414(d)(1)(A)(i)(VIII)) by local edu-
cational agencies serving such local area to make 
available comprehensive, high-quality services to 
individuals with disabilities; 
‘‘(B) consistent with section 188 and Execu-
tive Order 13217 (42 U.S.C. 12131 note), serve 
the employment and training needs of individ-
uals with disabilities; and 
‘‘(C) consistent with sections 504 and 508 of 
the Rehabilitation Act of 1973, include the provi-
sion of outreach, intake, assessments, and service 
delivery, the development of performance meas-
ures, the training of staff, and other aspects of 
accessibility to programs and services under this 
subtitle; 
‘‘(8) a description of the local levels of perform-
ance negotiated with the Governor and chief elected 
official pursuant to section 136(c), to be— 
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‘‘(A) used to measure the performance of the 
local area; and 
‘‘(B) used by the local board for measuring 
performance of the local fiscal agent (where ap-
propriate), eligible providers, and the one-stop 
delivery system, in the local area; 
‘‘(9) a description of the process used by the local 
board, consistent with subsection (c), to provide an 
opportunity for public comment prior to submission 
of the plan; 
‘‘(10) a description of how the local area will 
serve the employment and training needs of dislocated 
workers (including displaced homemakers), low-in-
come individuals (including recipients of public as-
sistance such as the Supplemental Nutrition Assist-
ance Program), long-term unemployed individuals 
(including individuals who have exhausted entitle-
ment to State and Federal unemployment compensa-
tion), English learners, homeless individuals, individ-
uals training for nontraditional employment, youth 
(including out-of-school youth and at-risk youth), 
older workers, ex-offenders, migrant and seasonal 
farmworkers, refugee and entrants, veterans (includ-
ing disabled veterans and homeless veterans), and Na-
tive Americans; 
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‘‘(11) an identification of the entity responsible 
for the disbursal of grant funds described in subclause 
(III) of section 117(d)(4)(B)(i), as determined by the 
chief elected official or the Governor under such sec-
tion; 
‘‘(12) a description of the strategies and services 
that will be used in the local area to assist at-risk 
youth and out-of-school youth in acquiring the edu-
cation and skills, credentials (including recognized 
postsecondary credentials and industry-recognized 
credentials), and employment experience to succeed in 
the labor market, including— 
‘‘(A) training and internships in in-de-
mand industries or occupations important to the 
local economy; 
‘‘(B) dropout recovery activities that are de-
signed to lead to the attainment of a regular sec-
ondary school diploma or its recognized equiva-
lent, or other State recognized equivalent (in-
cluding recognized alternative standards for in-
dividuals with disabilities); and 
‘‘(C) activities combining remediation of 
academic skills, work readiness training, and 
work experience, and including linkages to post-
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secondary education and training and career- 
ladder employment; 
‘‘(13) a description of— 
‘‘(A) how the local area will furnish em-
ployment, training, supportive, and placement 
services to veterans, including disabled and 
homeless veterans; 
‘‘(B) the strategies and services that will be 
used in the local area to assist and expedite re-
integration of homeless veterans into the labor 
force; and 
‘‘(C) the veteran population to be served in 
the local area; 
‘‘(14) a description of— 
‘‘(A) the duties assigned to the veteran em-
ployment specialist consistent with the require-
ments of section 134(f); 
‘‘(B) the manner in which the veteran em-
ployment specialist is integrated into the One- 
Stop Career System described in section 121; 
‘‘(C) the date on which the veteran employ-
ment specialist was assigned; and 
‘‘(D) whether the veteran employment spe-
cialist has satisfactorily competed such training 
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by the National Veterans’ Employment and 
Training Services Institute; and 
‘‘(15) such other information as the Governor 
may require.’’; 
(3) in subsection (c)(1), by striking ‘‘such 
means’’ and inserting ‘‘electronic means such’’; and 
(4) in subsection (c)(2), by striking ‘‘, including 
representatives of business and representatives of 
labor organizations,’’. 
SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYS-
TEM. 
Section 121 (29 U.S.C. 2841) is amended— 
(1) in subsection (b)— 
(A) by striking subparagraph (A) of para-
graph (1) and inserting the following: 
‘‘(A) ROLES
AND
RESPONSIBILITIES
OF 
ONE-STOP PARTNERS.—Each entity that carries 
out a program or activities described in subpara-
graph (B) shall— 
‘‘(i) provide access through the one-stop 
delivery system to the program and activi-
ties carried out by the entity, including 
making the work ready services described in 
section 134(c)(2) that are applicable to the 
program of the entity available at one-stop 
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centers (in addition to any other appro-
priate locations); 
‘‘(ii) use a portion of the funds avail-
able to the program of the entity to main-
tain the one-stop delivery system, including 
payment of the infrastructure costs of one- 
stop centers in accordance with subsection 
(h); 
‘‘(iii) enter into a local memorandum 
of understanding with the local board relat-
ing to the operation of the one-stop delivery 
system that meets the requirements of sub-
section (c); and 
‘‘(iv) participate in the operation of 
the one-stop delivery system consistent with 
the terms of the memorandum of under-
standing, the requirements of this title, and 
the requirements of the Federal laws author-
izing the programs carried out by the enti-
ty.’’; 
(B) in paragraph (1)(B)— 
(i) by striking clauses (ii), (v), and 
(vi); 
(ii) by redesignating clauses (iii) and 
(iv) as clauses (ii) and (iii), respectively; 
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(iii) by redesignating clauses (vii) 
through (xii) as clauses (iv) through (ix), 
respectively; 
(iv) in clause (viii), as so redesignated, 
by striking ‘‘and’’ at the end; 
(v) in clause (ix), as so redesignated, 
by striking the period and inserting ‘‘; 
and’’; and 
(vi) by adding at the end the following: 
‘‘(x) subject to subparagraph (C), pro-
grams authorized under part A of title IV 
of the Social Security Act (42 U.S.C. 601 et 
seq.).’’; 
(C) by inserting after paragraph (1)(B) the 
following: 
‘‘(C) DETERMINATION BY THE GOVERNOR.— 
Each entity carrying out a program described in 
subparagraph (B)(x) shall carry out the required 
partner activities described in subparagraph (A) 
unless the Governor of the State in which the 
local area is located provides the Secretary and 
Secretary of Health and Human Services writ-
ten notice of a determination by the Governor 
that such entities shall not carry out such re-
quired partner activities.’’; and 
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(D) in paragraph (2)— 
(i) in subparagraph (A)(i), by striking 
‘‘section 134(d)(2)’’ and inserting ‘‘section 
134(c)(2)’’; and 
(ii) in subparagraph (B)— 
(I) by striking clauses (i), (ii), 
and (v); 
(II) in clause (iv), by striking 
‘‘and’’ at the end; 
(III) by redesignating clauses (iii) 
and (iv) as clauses (i) and (ii), respec-
tively; and 
(IV) by adding at the end the fol-
lowing: 
‘‘(iii) employment and training pro-
grams administered by the Commissioner of 
the Social Security Administration; 
‘‘(iv) employment and training pro-
grams carried out by the Administrator of 
the Small Business Administration; 
‘‘(v) employment, training, and lit-
eracy services carried out by public librar-
ies; and 
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‘‘(vi) other appropriate Federal, State, 
or local programs, including programs in 
the private sector.’’; 
(2) in subsection (c)(2), by amending subpara-
graph (A) to read as follows: 
‘‘(A) provisions describing— 
‘‘(i) the services to be provided through 
the one-stop delivery system consistent with 
the requirements of this section, including 
the manner in which the services will be co-
ordinated through such system; 
‘‘(ii) how the costs of such services and 
the operating costs of such system will be 
funded, through cash and in-kind contribu-
tions, to provide a stable and equitable 
funding stream for ongoing one-stop system 
operations, including the funding of the in-
frastructure costs of one-stop centers in ac-
cordance with subsection (h); 
‘‘(iii) methods of referral of individuals 
between the one-stop operator and the one- 
stop partners for appropriate services and 
activities, including referrals for nontradi-
tional employment; and 
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‘‘(iv) the duration of the memorandum 
of understanding and the procedures for 
amending the memorandum during the 
term of the memorandum, and assurances 
that such memorandum shall be reviewed 
not less than once every 3-year period to en-
sure appropriate funding and delivery of 
services; and’’; 
(3) in subsection (d)— 
(A) in the heading for paragraph (1), by 
striking ‘‘DESIGNATION
AND
CERTIFICATION’’ 
and inserting ‘‘LOCAL DESIGNATION AND CER-
TIFICATION’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘section 134(c)’’ and in-
serting ‘‘subsection (e)’’; 
(ii) by amending subparagraph (A) to 
read as follows: 
‘‘(A) shall be designated or certified as a 
one-stop operator through a competitive process; 
and’’; and 
(iii) in subparagraph (B), by striking 
clause (ii) and redesignating clauses (iii) 
through (vi) as clauses (ii) through (v), re-
spectively; and 
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(C) in paragraph (3), by striking ‘‘voca-
tional’’ and inserting ‘‘career and technical’’; 
(4) by amending subsection (e) to read as fol-
lows: 
‘‘(e) ESTABLISHMENT OF ONE-STOP DELIVERY SYS-
TEM.— 
‘‘(1) IN GENERAL.—There shall be established in 
a State that receives an allotment under section 
132(b) a one-stop delivery system, which shall— 
‘‘(A) provide the work ready services de-
scribed in section 134(c)(2); 
‘‘(B) provide access to training services as 
described in section 134(c)(4), including serving 
as the point of access to career enhancement ac-
counts for training services to participants in 
accordance with paragraph (4)(F) of such sec-
tion; 
‘‘(C) provide access to the activities carried 
out under section 134(d), if any; 
‘‘(D) provide access to programs and activi-
ties carried out by one-stop partners that are de-
scribed in subsection (b) of this section; and 
‘‘(E) provide access to the information de-
scribed in section 15(e) of the Wagner-Peyser Act 
(29 U.S.C. 49l–2(e)). 
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‘‘(2) ONE-STOP DELIVERY.—At a minimum, the 
one-stop delivery system— 
‘‘(A) shall make each of the programs, serv-
ices, and activities described in paragraph (1) 
accessible at not less than one physical center in 
each local area of the State; and 
‘‘(B) may also make programs, services, and 
activities described in paragraph (1) available— 
‘‘(i) through a network of affiliated 
sites that can provide one or more of the 
programs, services, and activities to indi-
viduals; and 
‘‘(ii) through a network of eligible one- 
stop partners— 
‘‘(I) in which each partner pro-
vides one or more of the programs, 
services, and activities to such individ-
uals and is accessible at an affiliated 
site that consists of a physical location 
or an electronically- or technologically- 
linked access point; and 
‘‘(II) that assures individuals that 
information on the availability of the 
work ready services will be available 
regardless of where the individuals ini-
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tially enter the statewide workforce in-
vestment system, including informa-
tion made available through an access 
point described in subclause (I). 
‘‘(3) SPECIALIZED CENTERS.—The centers and 
sites described in paragraph (2) may have a speciali-
zation in addressing special needs.’’; and 
(5) by adding at the end the following: 
‘‘(g) CERTIFICATION OF ONE-STOP CENTERS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) IN GENERAL.—The State board shall 
establish objective procedures and criteria for 
certifying, at least once every 3 years, one-stop 
centers for the purpose of awarding the one-stop 
infrastructure funding described in subsection 
(h). 
‘‘(B) CRITERIA.—The criteria for certifi-
cation under this subsection shall include— 
‘‘(i) meeting all of the expected levels of 
performance for each of the core indicators 
of performance as outlined in the State plan 
under section 112; 
‘‘(ii) meeting minimum standards re-
lating to the scope and degree of service in-
tegration achieved by the centers involving 
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the programs provided by the one-stop part-
ners; and 
‘‘(iii) meeting minimum standards re-
lating to how the centers ensure that eligible 
providers meet the employment needs of 
local employers and participants. 
‘‘(C) EFFECT OF CERTIFICATION.—One-stop 
centers certified under this subsection shall be el-
igible to receive the infrastructure grants author-
ized under subsection (h). 
‘‘(2) LOCAL BOARDS.—Consistent with the cri-
teria developed by the State, the local board may de-
velop additional criteria of higher standards to re-
spond to local labor market and demographic condi-
tions and trends. 
‘‘(h) ONE-STOP INFRASTRUCTURE FUNDING.— 
‘‘(1) PARTNER CONTRIBUTIONS.— 
‘‘(A) 
PROVISION
OF
FUNDS.—Notwith-
standing any other provision of law, as deter-
mined under subparagraph (B), a portion of the 
Federal funds provided to the State and areas 
within the State under the Federal laws author-
izing the one-stop partner programs described in 
subsection (b)(1)(B) and participating addi-
tional partner programs described in (b)(2)(B) 
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for a fiscal year shall be provided to the Gov-
ernor by such programs to carry out this sub-
section. 
‘‘(B) DETERMINATION OF GOVERNOR.— 
‘‘(i) IN GENERAL.—Subject to subpara-
graph (C), the Governor, in consultation 
with the State board, shall determine the 
portion of funds to be provided under sub-
paragraph (A) by each one-stop partner 
and in making such determination shall 
consider the proportionate use of the one- 
stop centers by each partner, the costs of ad-
ministration for purposes not related to 
one-stop centers for each partner, and other 
relevant factors described in paragraph (3). 
‘‘(ii) SPECIAL RULE.—In those States 
where the State constitution places policy- 
making authority that is independent of the 
authority of the Governor in an entity or 
official with respect to the funds provided 
for adult education and literacy activities 
authorized under title II of this Act and for 
postsecondary career education activities 
authorized under the Carl D. Perkins Ca-
reer and Technical Education Act, the de-
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termination described in clause (i) with re-
spect to such programs shall be made by the 
Governor with the appropriate entity or of-
ficial with such independent policy-making 
authority. 
‘‘(iii) APPEAL
BY
ONE-STOP
PART-
NERS.—The Governor shall establish a pro-
cedure for the one-stop partner admin-
istering a program described in subsection 
(b) to appeal a determination regarding the 
portion of funds to be contributed under 
this paragraph on the basis that such deter-
mination is inconsistent with the criteria 
described in the State plan or with the re-
quirements of this paragraph. Such proce-
dure shall ensure prompt resolution of the 
appeal. 
‘‘(C) LIMITATIONS.— 
‘‘(i) PROVISION FROM ADMINISTRATIVE 
FUNDS.—The funds provided under this 
paragraph by each one-stop partner shall be 
provided only from funds available for the 
costs of administration under the program 
administered by such partner, and shall be 
subject to the limitations with respect to the 
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portion of funds under such programs that 
may be used for administration. 
‘‘(ii) FEDERAL DIRECT SPENDING PRO-
GRAMS.—Programs that are Federal direct 
spending under section 250(c)(8) of the Bal-
anced Budget and Emergency Deficit Con-
trol Act of 1985 (2 U.S.C. 900(c)(8)) shall 
not, for purposes of this paragraph, be re-
quired to provide an amount in excess of 
the amount determined to be equivalent to 
the proportionate use of the one-stop centers 
by such programs in the State. 
‘‘(2) ALLOCATION
BY
GOVERNOR.—From the 
funds provided under paragraph (1), the Governor 
shall allocate funds to local areas in accordance with 
the formula established under paragraph (3) for the 
purposes of assisting in paying the costs of the infra-
structure of one-stop centers certified under subsection 
(g). 
‘‘(3) ALLOCATION FORMULA.—The State board 
shall develop a formula to be used by the Governor to 
allocate the funds described in paragraph (1). The 
formula shall include such factors as the State board 
determines are appropriate, which may include fac-
tors such as the number of centers in the local area 
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that have been certified, the population served by such 
centers, and the performance of such centers. 
‘‘(4) COSTS OF INFRASTRUCTURE.—For purposes 
of this subsection, the term ‘costs of infrastructure’ 
means the nonpersonnel costs that are necessary for 
the general operation of a one-stop center, including 
the rental costs of the facilities, the costs of utilities 
and maintenance, and equipment (including assistive 
technology for individuals with disabilities). 
‘‘(i) OTHER FUNDS.— 
‘‘(1) IN GENERAL.—In addition to the funds pro-
vided to carry out subsection (h), a portion of funds 
made available under Federal law authorizing the 
one-stop partner programs described in subsection 
(b)(1)(B) and participating additional partner pro-
grams described in subsection (b)(2)(B), or the 
noncash resources available under such programs 
shall be used to pay the costs relating to the operation 
of the one-stop delivery system that are not paid for 
from the funds provided under subsection (h), to the 
extent not inconsistent with the Federal law involved 
including— 
‘‘(A) infrastructure costs that are in excess 
of the funds provided under subsection (h); 
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‘‘(B) common costs that are in addition to 
the costs of infrastructure; and 
‘‘(C) the costs of the provision of work ready 
services applicable to each program. 
‘‘(2) 
DETERMINATION
AND
GUIDANCE.—The 
method for determining the appropriate portion of 
funds and noncash resources to be provided by each 
program under paragraph (1) shall be determined as 
part of the memorandum of understanding under sub-
section (c). The State board shall provide guidance to 
facilitate the determination of appropriate allocation 
of the funds and noncash resources in local areas.’’. 
SEC. 109. IDENTIFICATION OF ELIGIBLE PROVIDERS OF 
TRAINING SERVICES. 
Section 122 (29 U.S.C. 2842) is amended to read as 
follows: 
‘‘SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF 
TRAINING SERVICES. 
‘‘(a) ELIGIBILITY.— 
‘‘(1) IN
GENERAL.—The Governor, after con-
sultation with the State board, shall establish criteria 
and procedures regarding the eligibility of providers 
of training services described in section 134(c)(4) to 
receive funds provided under section 133(b) for the 
provision of such training services. 
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‘‘(2) PROVIDERS.—Subject to the provisions of 
this section, to be eligible to receive the funds provided 
under section 133(b) for the provision of training 
services, the provider shall be— 
‘‘(A) a postsecondary educational 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 
a recognized postsecondary credential; 
‘‘(B) an entity that carries out programs 
under the Act of August 16, 1937 (commonly 
known as the ‘National Apprenticeship Act’; 50 
Stat. 664, chapter 663; 29 U.S.C. 50 et seq.); or 
‘‘(C) another public or private provider of 
a program of training services. 
‘‘(3) INCLUSION
IN
LIST
OF
ELIGIBLE
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 
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in subsection (d) for so long as the provider remains 
certified by the Secretary of Labor to carry out the 
programs described in paragraph (2)(B). 
‘‘(b) CRITERIA.— 
‘‘(1) IN GENERAL.—The criteria established pur-
suant to subsection (a) shall take into account— 
‘‘(A) the performance of providers of train-
ing services with respect to the performance 
measures described in section 136 and other mat-
ters for which information is required under 
paragraph (2) and other appropriate measures 
of performance outcomes for those participants 
receiving training services under this subtitle; 
‘‘(B) whether the training programs of such 
providers relate to occupations that are in de-
mand; 
‘‘(C) the need to ensure access to training 
services throughout the State, including in rural 
areas; 
‘‘(D) the ability of providers to offer pro-
grams that lead to a recognized postsecondary 
credential; 
‘‘(E) the information such providers are re-
quired to report to State agencies with respect to 
other Federal and State programs (other than 
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the program carried out under this subtitle), in-
cluding one-stop partner programs; and 
‘‘(F) such other factors as the Governor de-
termines are appropriate. 
‘‘(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 recognized postsec-
ondary credentials received by such participants; 
‘‘(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. 
‘‘(3) RENEWAL.—The criteria established by the 
Governor shall also provide for a review every 3 years 
and renewal of eligibility under this section for pro-
viders of training services. 
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‘‘(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) LIMITATION.—In carrying out the require-
ments of this subsection, no personally identifiable in-
formation regarding a student, including Social Secu-
rity number, student identification number, or other 
identifier, may be disclosed without the prior written 
consent of the parent or eligible student in compliance 
with section 444 of the General Education Provisions 
Act (20 U.S.C. 1232g). 
‘‘(c) PROCEDURES.—The procedures established under 
subsection (a) shall— 
‘‘(1) identify— 
‘‘(A) the application process for a provider 
of training services to become eligible to receive 
funds under section 133(b) for the provision of 
training services; and 
‘‘(B) the respective roles of the State and 
local areas in receiving and reviewing applica-
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tions and in making determinations of eligibility 
based on the criteria established under this sec-
tion; and 
‘‘(2) establish a process for a provider of train-
ing services to appeal a denial or termination of eli-
gibility under this section that includes an oppor-
tunity for a hearing and prescribes appropriate time 
limits to ensure prompt resolution of the appeal. 
‘‘(d) INFORMATION
TO
ASSIST
PARTICIPANTS
IN 
CHOOSING PROVIDERS.—In order to facilitate and assist 
participants under chapter 5 in choosing providers of train-
ing services, the Governor shall ensure that an appropriate 
list or lists of providers determined eligible under this sec-
tion in the State, including information provided under 
subsection (b)(2) with respect to such providers, is provided 
to the local boards in the State and is made available to 
such participants and to members of the public through the 
one-stop delivery system in the State. 
‘‘(e) ENFORCEMENT.— 
‘‘(1) IN GENERAL.—The 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-
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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 shall be terminated for a period of time 
that is not less than 10 years. 
‘‘(C) REPAYMENT.—A provider of training 
services whose eligibility is terminated under 
subparagraph (A) or (B) shall be liable for the 
repayment of funds received under chapter 5 
during a period of noncompliance described in 
such subparagraph. 
‘‘(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. 
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‘‘(f) AGREEMENTS WITH OTHER STATES.—States 
may enter into agreements, on a reciprocal basis, to permit 
eligible providers of training services to accept career en-
hancement accounts provided in another State. 
‘‘(g) RECOMMENDATIONS.—In developing the criteria, 
procedures, and information required under this section, the 
Governor shall solicit and take into consideration the rec-
ommendations of local boards and providers of training 
services within the State. 
‘‘(h) OPPORTUNITY TO SUBMIT COMMENTS.—During 
the development of the criteria, procedures, requirements for 
information, and the list of eligible providers required 
under this section, the Governor shall provide an oppor-
tunity for interested members of the public to submit com-
ments regarding such criteria, procedures, and information. 
‘‘(i) ON-THE-JOB TRAINING OR CUSTOMIZED TRAIN-
ING EXCEPTION.— 
‘‘(1) IN GENERAL.—Providers of on-the-job train-
ing or customized training shall not be subject to the 
requirements of subsections (a) through (d). 
‘‘(2) COLLECTION AND DISSEMINATION OF INFOR-
MATION.—A one-stop operator in a local area shall 
collect such performance information from on-the-job 
training and customized training providers as the 
Governor may require, determine whether the pro-
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viders meet such performance criteria as the Governor 
may require, and disseminate information identifying 
providers that meet the criteria as eligible providers, 
and the performance information, through the one- 
stop delivery system. Providers determined to meet the 
criteria shall be considered to be identified as eligible 
providers of training services.’’. 
SEC. 110. GENERAL AUTHORIZATION. 
Chapter 5 of subtitle B of title I is amended— 
(1) by striking the heading for chapter 5 and in-
serting the following: ‘‘EMPLOYMENT AND 
TRAINING ACTIVITIES’’; and 
(2) in section 131 (29 U.S.C. 2861)— 
(A) by striking ‘‘paragraphs (1)(B) and 
(2)(B) of’’; and 
(B) by striking ‘‘adults, and dislocated 
workers,’’ and inserting ‘‘individuals’’. 
SEC. 111. STATE ALLOTMENTS. 
Section 132 (29 U.S.C. 2862) is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) IN GENERAL.—The Secretary shall— 
‘‘(1) reserve 1⁄2 of 1 percent of the total amount 
appropriated under section 137 for a fiscal year, of 
which— 
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‘‘(A) 50 percent shall be used to provide 
technical assistance under section 170; and 
‘‘(B) 50 percent shall be used for evalua-
tions under section 172; 
‘‘(2) reserve not more than 1 percent of the total 
amount appropriated under section 137 for a fiscal 
year to make grants to, and enter into contracts or 
cooperative agreements with Indian tribes, tribal or-
ganizations, Alaska-Native entities, Indian-controlled 
organizations serving Indians, or Native Hawaiian 
organizations to carry out employment and training 
activities; 
‘‘(3) reserve not more than 25 percent of the total 
amount appropriated under section 137 for a fiscal 
year to carry out the Jobs Corps program under sub-
title C; 
‘‘(4) reserve not more than 3.5 percent of the 
total amount appropriated under section 137 for a 
fiscal year to— 
‘‘(A) make grants to State or local boards to 
provide employment and training assistance to 
workers affected by major economic dislocations, 
such as plant closures, mass layoffs, or closures 
and realignments of military installations; and 
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‘‘(B) provide assistance to Governors of 
States with an area that has suffered an emer-
gency or a major disaster (as such terms are de-
fined in paragraphs (1) and (2), respectively, of 
section 102 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 
5122)) to provide disaster relief employment in 
the area. 
‘‘(5) from the remaining amount appropriated 
under section 137 for a fiscal year (after reserving 
funds under paragraphs (1) through (4)), make allot-
ments in accordance with subsection (b) of this sec-
tion.’’; and 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) WORKFORCE INVESTMENT FUND.— 
‘‘(1) RESERVATION FOR OUTLYING AREAS.— 
‘‘(A) IN GENERAL.—From the amount made 
available under subsection (a)(5) for a fiscal 
year, the Secretary shall reserve not more than 
1⁄4 of 1 percent to provide assistance to the out-
lying areas. 
‘‘(B) RESTRICTION.—The Republic of Palau 
shall cease to be eligible to receive funding under 
this subparagraph upon entering into an agree-
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ment for extension of United States educational 
assistance under the Compact of Free Association 
(approved by the Compact of Free Association 
Amendments Act of 2003 (Public Law 99–658)) 
after the date of enactment of the SKILLS Act. 
‘‘(2) STATES.— 
‘‘(A) IN GENERAL.—After determining the 
amount to be reserved under paragraph (1), the 
Secretary shall allot the remainder of the 
amount referred to in subsection (a)(5) for a fis-
cal year to the States pursuant to subparagraph 
(B) for employment and training activities and 
statewide workforce investment activities. 
‘‘(B) FORMULA.—Subject to subparagraphs 
(C) and (D), of the remainder— 
‘‘(i) 25 percent shall be allotted on the 
basis of the relative number of unemployed 
individuals in areas of substantial unem-
ployment in each State, compared to the 
total number of unemployed individuals in 
areas of substantial unemployment in all 
States; 
‘‘(ii) 25 percent shall be allotted on the 
basis of the relative number of individuals 
in the civilian labor force in each State, 
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compared to the total number of such indi-
viduals in all States; 
‘‘(iii) 25 percent shall be allotted on 
the basis of the relative number of individ-
uals in each State who have been unem-
ployed for 15 weeks or more, compared to 
the total number of individuals in all States 
who have been unemployed for 15 weeks or 
more; and 
‘‘(iv) 25 percent shall be allotted on the 
basis of the relative number of disadvan-
taged youth in each State, compared to the 
total number of disadvantaged youth in all 
States. 
‘‘(C) MINIMUM
AND
MAXIMUM
PERCENT-
AGES.— 
‘‘(i) MINIMUM PERCENTAGE.—The Sec-
retary shall ensure that no State shall re-
ceive an allotment under this paragraph 
for— 
‘‘(I) each of fiscal years 2014 
through 2016, that is less than 100 
percent of the allotment percentage of 
the State for fiscal year 2012; and 
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‘‘(II) fiscal year 2017 and each 
succeeding fiscal year, that is less than 
90 percent of the allotment percentage 
of the State for the preceding fiscal 
year. 
‘‘(ii) MAXIMUM PERCENTAGE.—Subject 
to clause (i), the Secretary shall ensure that 
no State shall receive an allotment under 
this paragraph for— 
‘‘(I) each of fiscal years 2014 
through 2016, that is more than 130 
percent of the allotment percentage of 
the State for fiscal year 2012; and 
‘‘(II) fiscal year 2017 and each 
succeeding fiscal year, that is more 
than 130 percent of the allotment per-
centage of the State for the preceding 
fiscal year. 
‘‘(D) 
SMALL
STATE
MINIMUM
ALLOT-
MENT.—Subject to subparagraph (C), the Sec-
retary shall ensure that no State shall receive an 
allotment under this paragraph for a fiscal year 
that is less than 1⁄5 of 1 percent of the remainder 
described in subparagraph (A) for the fiscal 
year. 
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‘‘(E) DEFINITIONS.—For the purpose of the 
formula specified in this paragraph: 
‘‘(i) ALLOTMENT
PERCENTAGE.—The 
term ‘allotment percentage’— 
‘‘(I) used with respect to fiscal 
year 2012, means the percentage of the 
amounts allotted to States under title I 
of this Act, title V of the Older Ameri-
cans Act of 1965 (42 U.S.C. 3056 et 
seq.), the Women in Apprenticeship 
and Nontraditional Occupations Act 
(29 U.S.C. 2501 et seq.), sections 
4103A and 4104 of title 38, United 
States Code, and sections 1 through 14 
of the Wagner-Peyser Act (29 U.S.C. 
49 et seq.), as such provisions were in 
effect for fiscal year 2012, that is re-
ceived under such provisions by the 
State involved for fiscal year 2012; 
and 
‘‘(II) used with respect to fiscal 
year 2016 or a succeeding fiscal year, 
means the percentage of the amounts 
allotted to States under this paragraph 
for the fiscal year that is received 
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under this paragraph by the State in-
volved for the fiscal year. 
‘‘(ii) DISADVANTAGED
YOUTH.—The 
term ‘disadvantaged youth’ means an indi-
vidual who is not less than age 16 and not 
more than age 24 who receives an income, 
or is a member of a family that received a 
total family income, that in relation to 
family size, does not exceed the higher of— 
‘‘(I) the poverty line; or 
‘‘(II) 70 percent of the lower liv-
ing standard income level. 
‘‘(iii) INDIVIDUAL.—The term ‘indi-
vidual’ means an individual who is age 16 
or older.’’. 
SEC. 112. WITHIN STATE ALLOCATIONS. 
Section 133 is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) RESERVATIONS FOR STATEWIDE WORKFORCE IN-
VESTMENT ACTIVITIES.— 
‘‘(1) STATEWIDE
EMPLOYMENT
AND
TRAINING 
ACTIVITIES.—The Governor of a State shall reserve up 
to 15 percent of the total amount allotted to the State 
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under section 132(b)(2) for a fiscal year to carry out 
the statewide activities described in section 134(a). 
‘‘(2) STATEWIDE RAPID RESPONSE ACTIVITIES.— 
Of the amount reserved under paragraph (1) for a fis-
cal year, the Governor of the State shall reserve not 
more than 25 percent for statewide rapid response ac-
tivities described in section 134(a)(4). 
‘‘(3) STATEWIDE GRANTS FOR INDIVIDUALS WITH 
BARRIERS TO EMPLOYMENT.—Of the amount reserved 
under paragraph (1) for a fiscal year, the Governor 
of a State shall reserve 15 percent to carry out state-
wide activities described in section 134(a)(5). 
‘‘(4) STATE ADMINISTRATIVE COST LIMIT.—Not 
more than 5 percent of the funds reserved under para-
graph (1) may be used by the Governor of a State for 
administrative costs of carrying out the statewide ac-
tivities described in section 134(a).’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) WITHIN STATE ALLOCATION.— 
‘‘(1) METHODS.—The Governor, acting in ac-
cordance with the State plan, and after consulting 
with chief elected officials in the local areas, shall— 
‘‘(A) allocate the funds that are allotted to 
the State for employment and training activities 
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and not reserved under subsection (a), in accord-
ance with paragraph (2)(A); and 
‘‘(B) award the funds that are reserved by 
the State under subsection (a)(3) through com-
petitive grants to eligible entities, in accordance 
with section 134(a)(1)(C). 
‘‘(2) FORMULA
ALLOCATIONS
FOR
THE
WORK-
FORCE INVESTMENT FUND.— 
‘‘(A) ALLOCATION.—In allocating the funds 
described in paragraph (1)(A) to local areas, a 
State shall allocate— 
‘‘(i) 25 percent on the basis described 
in section 132(b)(2)(B)(i); 
‘‘(ii) 25 percent on the basis described 
in section 132(b)(2)(B)(ii); 
‘‘(iii) 25 percent on the basis described 
in section 132(b)(2)(B)(iii); and 
‘‘(iv) 25 percent on the basis described 
in section 132(b)(2)(B)(iv). 
‘‘(B) MINIMUM
AND
MAXIMUM
PERCENT-
AGES.— 
‘‘(i) 
MINIMUM
PERCENTAGE.—The 
State shall ensure that no local area shall 
receive an allocation under this paragraph 
for— 
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‘‘(I) each of fiscal years 2014 
through 2016, that is less than 100 
percent of the allocation percentage of 
the local area for fiscal year 2012; and 
‘‘(II) fiscal year 2017 and each 
succeeding fiscal year, that is less than 
90 percent of the allocation percentage 
of the local area for the preceding fiscal 
year. 
‘‘(ii) MAXIMUM PERCENTAGE.—Subject 
to clause (i), the State shall ensure that no 
local area shall receive an allocation for a 
fiscal year under this paragraph for— 
‘‘(I) each of fiscal years 2014 
through 2016, that is more than 130 
percent of the allocation percentage of 
the local area for fiscal year 2012; and 
‘‘(II) fiscal year 2017 and each 
succeeding fiscal year, that is more 
than 130 percentage of the allocation 
percentage of the local area for the pre-
ceding fiscal year. 
‘‘(C) DEFINITIONS.—For the purpose of the 
formula specified in this paragraph, the term 
‘allocation percentage’— 
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‘‘(i) used with respect to fiscal year 
2012, means the percentage of the amounts 
allocated to local areas under title I of this 
Act, title V of the Older Americans Act of 
1965 (42 U.S.C. 3056 et seq.), the Women 
in Apprenticeship and Nontraditional Oc-
cupations Act (29 U.S.C. 2501 et seq.), sec-
tions 4103A and 4104 of title 38, United 
States Code, and sections 1 through 14 of 
the Wagner-Peyser Act (29 U.S.C. 49 et 
seq.), as such provisions were in effect for 
fiscal year 2012, that is received under such 
provisions by the local area involved for fis-
cal year 2012; and 
‘‘(ii) used with respect to fiscal year 
2016 or a succeeding fiscal year, means the 
percentage of the amounts allocated to local 
areas for the fiscal year under this para-
graph that is received under this paragraph 
by the local area involved for the fiscal 
year.’’; 
(3) in subsection (c)— 
(A) by amending paragraph (1) to read as 
follows: 
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srobinson on DSK4SPTVN1PROD with BILLS
(4) by adding at the end the following new sub-
section: 
‘‘(d) LOCAL ADMINISTRATIVE COST LIMIT.—Of the 
amounts allocated to a local area under this section for a 
fiscal year, not more than 10 percent of the amount may 
be used by the local board involved for the administrative 
costs of carrying out local workforce investment activities 
in the local area under this chapter.’’. 
SEC. 113. USE OF FUNDS FOR EMPLOYMENT AND TRAINING 
ACTIVITIES. 
Section 134 is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) STATEWIDE EMPLOYMENT AND TRAINING ACTIVI-
TIES.— 
‘‘(1) IN GENERAL.— 
‘‘(A) DISTRIBUTION OF STATEWIDE ACTIVI-
TIES.—Funds reserved by a Governor for a State 
as described in section 133(a)(1)— 
‘‘(i) shall be used to carry out the 
statewide employment and training activi-
ties described in paragraph (2); and 
‘‘(ii) may be used to carry out any of 
the statewide employment and training ac-
tivities described in paragraph (3). 
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‘‘(B) STATEWIDE RAPID RESPONSE ACTIVI-
TIES.—Funds reserved by a Governor for a State 
as described in section 133(a)(2) shall be used to 
carry out the statewide rapid response activities 
described in paragraph (4). 
‘‘(C) STATEWIDE GRANTS FOR INDIVIDUALS 
WITH
BARRIERS
TO
EMPLOYMENT.—Funds re-
served by a Governor for a State as described in 
section 133(a)(3) shall be used to carry out the 
Statewide Grants for Individuals with Barriers 
to Employment competition described in para-
graph (5). 
‘‘(2) REQUIRED STATEWIDE EMPLOYMENT AND 
TRAINING ACTIVITIES.—A State shall use funds re-
served as described in section 133(a)(1) to carry out 
statewide employment and training activities, which 
shall include— 
‘‘(A) disseminating the State list of eligible 
providers of training described in section 122(d), 
information identifying eligible providers of on- 
the-job training and customized training de-
scribed in section 122(i), and performance infor-
mation and program cost information described 
in section 122(b)(2); 
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‘‘(B) supporting the provision of work ready 
services described in subsection (c)(2) in the one- 
stop delivery system; 
‘‘(C) implementing strategies and services 
that will be used in the State to assist at-risk 
youth and out-of-school youth in acquiring the 
education and skills, recognized postsecondary 
credentials, and employment experience to suc-
ceed in the labor market; 
‘‘(D) conducting evaluations under section 
136(e) of activities authorized under this chapter 
in coordination with evaluations carried out by 
the Secretary under section 172; 
‘‘(E) providing technical assistance to local 
areas that fail to meet local performance meas-
ures; 
‘‘(F) operating a fiscal and management 
accountability system under section 136(f); and 
‘‘(G) carrying out monitoring and oversight 
of activities carried out under this chapter. 
‘‘(3) ALLOWABLE STATEWIDE EMPLOYMENT AND 
TRAINING ACTIVITIES.—A State may use funds re-
served as described in section 133(a)(1) to carry out 
statewide employment and training activities which 
may include— 
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‘‘(A) implementing innovative programs 
and strategies designed to meet the needs of all 
employers in the State, including small employ-
ers, which may include incumbent worker train-
ing programs, sectoral and industry cluster 
strategies and partnerships, career ladder pro-
grams, micro-enterprise and entrepreneurial 
training and support programs, utilization of ef-
fective business intermediaries, activities to im-
prove linkages between the one-stop delivery sys-
tem in the State and all employers (including 
small employers) in the State, and other business 
services and strategies that better engage employ-
ers in workforce investment activities and make 
the workforce investment system more relevant to 
the needs of State and local businesses, consistent 
with the objectives of this title; 
‘‘(B) providing incentive grants to local 
areas for regional cooperation among local 
boards (including local boards in a designated 
region as described in section 116(c)), for local 
coordination of activities carried out under this 
Act, and for exemplary performance by local 
areas on the local performance measures; 
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‘‘(C) developing strategies for effectively in-
tegrating programs and services among one-stop 
partners; 
‘‘(D) carrying out activities to facilitate re-
mote access to services provided through a one- 
stop delivery system, including facilitating access 
through the use of technology; 
‘‘(E) 
incorporating 
pay-for-performance 
contracting strategies, as defined in section 
101(56), as an element in funding activities 
under this section and providing technical sup-
port to local areas and providers in order to 
carry out such strategy, which may provide as-
sistance with data collection and data entry re-
quirements; 
‘‘(F) carrying out the State option under 
subsection (f)(8); and 
‘‘(G) carrying out other activities author-
ized under this section that the State determines 
to be necessary to assist local areas in carrying 
out activities described in subsection (c) or (d) 
through the statewide workforce investment sys-
tem. 
‘‘(4) STATEWIDE RAPID RESPONSE ACTIVITIES.— 
A State shall use funds reserved as described in sec-
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srobinson on DSK4SPTVN1PROD with BILLS
tion 133(a)(2) to carry out statewide rapid response 
activities, which shall include— 
‘‘(A) provision of rapid response activities, 
carried out in local areas by the State or by an 
entity designated by the State, working in con-
junction with the local boards and the chief elect-
ed officials in the local areas; and 
‘‘(B) provision of additional assistance to 
local areas that experience disasters, mass layoffs 
or plant closings, or other events that precipitate 
substantial increases in the number of unem-
ployed individuals, carried out in local areas by 
the State or by an entity designated by the 
State, working in conjunction with the local 
boards and the chief elected officials in the local 
areas. 
‘‘(5) STATEWIDE GRANTS FOR INDIVIDUALS WITH 
BARRIERS TO EMPLOYMENT.— 
‘‘(A) IN GENERAL.—Of the funds reserved as 
described in section 133(a)(3), the Governor of a 
State— 
‘‘(i) may reserve up to 5 percent to 
provide technical assistance to, and conduct 
evaluations as described in section 136(e), of 
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the programs and activities carried out 
under this paragraph; and 
‘‘(ii) using the remainder, shall award 
grants on a competitive basis to eligible en-
tities described in subparagraph (B) to 
carry out employment and training pro-
grams authorized under this paragraph for 
individuals with barriers to employment 
that meet specific performance outcomes 
and criteria established by the Governor. 
‘‘(B) ELIGIBLE ENTITY DEFINED.—For pur-
poses of this paragraph, the term ‘eligible entity’ 
means an entity that— 
‘‘(i) is a— 
‘‘(I) local board or a consortium 
of local boards; 
‘‘(II) nonprofit entity, for-profit 
entity, or a consortium of nonprofit or 
for-profit entities; or 
‘‘(III) consortium of the entities 
described in subclauses (I) and (II); 
‘‘(ii) has a demonstrated record of 
placing individuals into unsubsidized em-
ployment and serving hard to serve individ-
uals; and 
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‘‘(iii) agrees to be reimbursed pri-
marily on the basis of achievement of speci-
fied performance outcomes and criteria es-
tablished by the Governor. 
‘‘(C) GRANT PERIOD.— 
‘‘(i) IN GENERAL.—A grant under this 
paragraph shall be awarded for a period of 
1 year. 
‘‘(ii) GRANT RENEWAL.—A Governor of 
a State may renew, for up to 4 additional 
1-year periods, a grant awarded under this 
paragraph. 
‘‘(D) ELIGIBLE PARTICIPANTS.—To be eligi-
ble to participate in activities under this para-
graph, an individual shall be a low-income indi-
vidual age 16 or older or a member of a low-in-
come family. 
‘‘(E) USE OF FUNDS.—An eligible entity re-
ceiving a grant under this paragraph shall use 
such funds for activities that are designed to as-
sist eligible participants in obtaining employ-
ment and acquiring the education and skills nec-
essary to succeed in the labor market. 
‘‘(F) APPLICATIONS.—To be eligible to re-
ceive a grant under this paragraph, an eligible 
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srobinson on DSK4SPTVN1PROD with BILLS
entity shall submit an application to a State at 
such time, in such manner, and containing such 
information as the State may require, includ-
ing— 
‘‘(i) a description of how the strategies 
and activities will be aligned with the State 
plan submitted under section 112 and the 
local plan submitted under section 118 with 
respect to the areas of the State that will be 
the focus of grant activities under this para-
graph; 
‘‘(ii) a description of the educational 
and skills training programs and activities 
the eligible entity will provide to eligible 
participants under this paragraph; 
‘‘(iii) how the eligible entity will col-
laborate with State and local workforce in-
vestment systems established under this title 
in the provision of such programs and ac-
tivities; 
‘‘(iv) a description of the programs of 
demonstrated effectiveness on which the pro-
vision of such educational and skills train-
ing programs and activities are based, and 
a description of how such programs and ac-
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srobinson on DSK4SPTVN1PROD with BILLS
tivities will improve the education and 
skills training for eligible participants; 
‘‘(v) a description of the populations to 
be served and the skill needs of those popu-
lations, and the manner in which eligible 
participants will be recruited and selected 
as participants; 
‘‘(vi) a description of the private, pub-
lic, local, and State resources that will be 
leveraged, in addition to the grant funds 
provided for the programs and activities 
under this paragraph, and how the entity 
will ensure the sustainability of such pro-
grams and activities after grant funds are 
no longer available; 
‘‘(vii) a description of the extent of the 
involvement of employers in such programs 
and activities; 
‘‘(viii) a description of the levels of 
performance the eligible entity expects to 
achieve with respect to the indicators of per-
formance for all individuals specified in 
section in 136(b)(2); 
‘‘(ix) a detailed budget and a descrip-
tion of the system of fiscal controls, and au-
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srobinson on DSK4SPTVN1PROD with BILLS
diting and accountability procedures that 
will be used to ensure fiscal soundness for 
the programs and activities provided under 
this paragraph; and 
‘‘(x) any other criteria the Governor 
may require.’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) LOCAL EMPLOYMENT
AND TRAINING ACTIVI-
TIES.—Funds allocated to a local area under section 
133(b)— 
‘‘(1) shall be used to carry out employment and 
training activities described in subsection (c); and 
‘‘(2) may be used to carry out employment and 
training activities described in subsection (d).’’; 
(3) by striking subsection (c); 
(4) by redesignating subsections (d) and (e), as 
subsections (c) and (d), respectively; 
(5) in subsection (c) (as so redesignated)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) IN GENERAL.—Funds allocated to a local 
area under section 133(b) shall be used— 
‘‘(A) to establish a one-stop delivery system 
as described in section 121(e); 
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srobinson on DSK4SPTVN1PROD with BILLS
‘‘(B) to provide the work ready services de-
scribed in paragraph (2) through the one-stop 
delivery system in accordance with such para-
graph; and 
‘‘(C) to provide training services described 
in paragraph (4) in accordance with such para-
graph.’’; 
(B) in paragraph (2)— 
(i) in the heading, by striking ‘‘CORE 
SERVICES’’ and inserting ‘‘WORK
READY 
SERVICES’’; 
(ii) in the matter preceding subpara-
graph (A)— 
(I) by striking ‘‘(1)(A)’’ and in-
serting ‘‘(1)(B)’’; 
(II) by striking ‘‘core services’’ 
and inserting ‘‘work ready services’’; 
and 
(III) by striking ‘‘who are adults 
or dislocated workers’’; 
(iii) by redesignating subparagraph 
(K) as subparagraph (V); 
(iv) by redesignating subparagraphs 
(B) through (J) as subparagraphs (C) 
through (K), respectively; 
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srobinson on DSK4SPTVN1PROD with BILLS
(v) by inserting after subparagraph 
(A) the following: 
‘‘(B) assistance in obtaining eligibility de-
terminations under the other one-stop partner 
programs through activities, where appropriate 
and consistent with the authorizing statute of the 
one-stop partner program, such as assisting in 
the submission of applications, the provision of 
information on the results of such applications, 
and the provision of intake services and informa-
tion;’’; 
(vi) by amending subparagraph (E), 
as so redesignated, to read as follows: 
‘‘(E) labor exchange services, including— 
‘‘(i) job search and placement assist-
ance, and where appropriate, career coun-
seling; 
‘‘(ii) appropriate recruitment services 
for employers, including small employers, 
in the local area, which may include serv-
ices described in this subsection, including 
information and referral to specialized busi-
ness 
services 
not 
traditionally 
offered 
through the one-stop delivery system; and 
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‘‘(iii) reemployment services provided 
to 
unemployment 
claimants, 
including 
claimants identified as in need of such serv-
ices under the worker profiling system es-
tablished under section 303(j) of the Social 
Security Act (42 U.S.C. 503(j));’’; 
(vii) in subparagraph (F), as so redes-
ignated, by striking ‘‘employment statistics’’ 
and inserting ‘‘workforce and labor mar-
ket’’; 
(viii) in subparagraph (G), as so re-
designated, by striking ‘‘and eligible pro-
viders of youth activities described in sec-
tion 123,’’; 
(ix) in subparagraph (H), as so redes-
ignated, by inserting ‘‘under section 136’’ 
after ‘‘local performance measures’’; 
(x) in subparagraph (J), as so redesig-
nated, by inserting ‘‘and the administration 
of the work test for the unemployment com-
pensation system’’ after ‘‘compensation’’; 
(xi) by amending subparagraph (K), 
as so redesignated, to read as follows: 
‘‘(K) assistance in establishing eligibility 
for programs of financial aid assistance for 
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srobinson on DSK4SPTVN1PROD with BILLS
training and education programs that are not 
funded under this Act and are available in the 
local area;’’; and 
(xii) by inserting the following new 
subparagraphs after subparagraph (K), as 
so redesignated: 
‘‘(L) the provision of information from offi-
cial publications of the Internal Revenue Service 
regarding Federal tax credits available to indi-
viduals relating to education, job training and 
employment; 
‘‘(M) comprehensive and specialized assess-
ments of the skill levels and service needs of 
workers, which may include— 
‘‘(i) diagnostic testing and use of other 
assessment tools; and 
‘‘(ii) in-depth interviewing and evalua-
tion to identify employment barriers and 
appropriate employment goals; 
‘‘(N) development of an individual employ-
ment plan, to identify the employment goals, ap-
propriate achievement objectives, and appro-
priate combination of services for the partici-
pant; 
‘‘(O) group counseling; 
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‘‘(P) individual counseling and career plan-
ning; 
‘‘(Q) case management; 
‘‘(R) short-term pre-career services, includ-
ing development of learning skills, communica-
tions skills, interviewing skills, punctuality, per-
sonal maintenance skills, and professional con-
duct, to prepare individuals for unsubsidized em-
ployment or training; 
‘‘(S) internships and work experience; 
‘‘(T) literacy activities relating to basic 
work readiness, information and communication 
technology literacy activities, and financial lit-
eracy activities, if such activities are not avail-
able to participants in the local area under pro-
grams administered under the Adult Education 
and Family Literacy Act (20 U.S.C. 2901 et 
seq.); 
‘‘(U) out-of-area job search assistance and 
relocation assistance; and’’; and 
(C) by amending paragraph (3) to read as 
follows: 
‘‘(3) DELIVERY OF SERVICES.—The work ready 
services described in paragraph (2) shall be provided 
through the one-stop delivery system and may be pro-
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srobinson on DSK4SPTVN1PROD with BILLS
vided through contracts with public, private for-prof-
it, and private nonprofit service providers, approved 
by the local board.’’; 
(D) in paragraph (4)— 
(i) by amending subparagraph (A) to 
read as follows: 
‘‘(A) IN
GENERAL.—Funds described in 
paragraph (1)(C) shall be used to provide train-
ing services to individuals who— 
‘‘(i) after an interview, evaluation, or 
assessment, and case management, have 
been determined by a one-stop operator or 
one-stop partner, as appropriate, to— 
‘‘(I) be in need of training serv-
ices to obtain or retain employment; 
and 
‘‘(II) have the skills and qualifica-
tions to successfully participate in the 
selected program of training services; 
‘‘(ii) select programs of training serv-
ices that are directly linked to the employ-
ment opportunities in the local area in-
volved or in another area in which the indi-
vidual receiving such services are willing to 
commute or relocate; and 
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‘‘(iii) who meet the requirements of 
subparagraph (B);’’; and 
(ii) in subparagraph (B)(i), by strik-
ing ‘‘Except’’ and inserting ‘‘Notwith-
standing section 479B of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087uu) and 
except’’; 
(iii) by amending subparagraph (D) to 
read as follows: 
‘‘(D) TRAINING SERVICES.—Training serv-
ices authorized under this paragraph may in-
clude— 
‘‘(i) occupational skills training; 
‘‘(ii) on-the-job training; 
‘‘(iii) skill upgrading and retraining; 
‘‘(iv) entrepreneurial training; 
‘‘(v) education activities leading to a 
regular secondary school diploma or its rec-
ognized equivalent in combination with, 
concurrently or subsequently, occupational 
skills training; 
‘‘(vi) adult education and literacy ac-
tivities provided in conjunction with other 
training authorized under this subpara-
graph; 
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srobinson on DSK4SPTVN1PROD with BILLS
100 
‘‘(vii) workplace training combined 
with related instruction; 
‘‘(viii) occupational skills training 
that incorporates English language acquisi-
tion; 
‘‘(ix) customized training conducted 
with a commitment by an employer or 
group of employers to employ an individual 
upon successful completion of the training; 
and 
‘‘(x) training programs operated by the 
private sector.’’; 
(iv) by striking subparagraph (E) and 
redesignating subparagraphs (F) and (G) 
as subparagraphs (E) and (F), respectively; 
and 
(v) in subparagraph (E) (as so redesig-
nated)— 
(I) in clause (ii)— 
(aa) in the matter preceding 
subclause (I), by striking ‘‘sub-
section (c)’’ and inserting ‘‘section 
121’’; 
(bb) in subclause (I), by 
striking ‘‘section 122(e)’’ and in-
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101 
serting ‘‘section 122(d)’’ and by 
striking ‘‘section 122(h)’’ and in-
serting ‘‘section 122(i)’’; and 
(cc) in subclause (II), by 
striking ‘‘subsections (e) and (h)’’ 
and inserting ‘‘subsection (i)’’; 
and 
(II) by striking clause (iii) and 
inserting the following: 
‘‘(iii) 
CAREER
ENHANCEMENT
AC-
COUNTS.—An individual who seeks training 
services and who is eligible pursuant to sub-
paragraph (A), may, in consultation with a 
case manager, select an eligible provider of 
training services from the list or identifying 
information for providers described in 
clause (ii)(I). Upon such selection, the one- 
stop operator involved shall, to the extent 
practicable, refer such individual to the eli-
gible provider of training services, and ar-
range for payment for such services through 
a career enhancement account. 
‘‘(iv) 
COORDINATION.—Each 
local 
board may, through one-stop centers, coordi-
nate career enhancement accounts with 
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102 
other Federal, State, local, or private job 
training programs or sources to assist the 
individual in obtaining training services. 
‘‘(v) ASSISTANCE.—Each local board 
may, through one-stop centers, assist indi-
viduals receiving career enhancement ac-
counts in obtaining funds (in addition to 
the funds provided under this section) from 
other programs and sources that will assist 
the individual in obtaining training serv-
ices.’’; and 
(vi) in subparagraph (F) (as so redes-
ignated)— 
(I) in the subparagraph heading, 
by striking ‘‘INDIVIDUAL TRAINING AC-
COUNTS’’ and inserting ‘‘CAREER EN-
HANCEMENT ACCOUNTS’’; 
(II) in clause (i) by striking ‘‘in-
dividual training accounts’’ and in-
serting ‘‘career enhancement accounts’’; 
(III) in clause (ii)— 
(aa) by striking ‘‘an indi-
vidual training account’’ and in-
serting ‘‘a career enhancement ac-
count’’; 
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srobinson on DSK4SPTVN1PROD with BILLS
103 
(bb) by striking ‘‘subpara-
graph (F)’’ and inserting ‘‘sub-
paragraph (E)’’; 
(cc) in subclause (II), by 
striking ‘‘individual training ac-
counts’’ and inserting ‘‘career en-
hancement accounts’’; 
(dd) in subclause (II) by 
striking ‘‘or’’ after the semicolon; 
(ee) in subclause (III) by 
striking the period and inserting 
‘‘; or’’; and 
(ff) by adding at the end the 
following: 
‘‘(IV) the local board determines 
that it would be most appropriate to 
award a contract to an institution of 
higher education that has been identi-
fied as a priority provider under sec-
tion 117(d)(5)(B) in order to facilitate 
the training of multiple individuals in 
in-demand sectors or occupations, and 
which may be used to enable the ex-
pansion of programs provided by a 
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srobinson on DSK4SPTVN1PROD with BILLS
104 
priority provider, if such contract does 
not limit customer choice.’’; 
(IV) in clause (iii), by striking 
‘‘adult or dislocated worker’’ and in-
serting ‘‘individual’’; and 
(V) in clause (iv)— 
(aa) by redesignating sub-
clause (IV) as subclause (V) and 
inserting after subclause (III) the 
following: 
‘‘(IV) Individuals with disabil-
ities.’’; 
(6) in subsection (d) (as so redesignated)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) DISCRETIONARY
ONE-STOP
DELIVERY
AC-
TIVITIES.— 
‘‘(A) IN GENERAL.—Funds allocated to a 
local area under section 133(b)(2) may be used 
to provide, through the one-stop delivery sys-
tem— 
‘‘(i) customized screening and referral 
of qualified participants in training serv-
ices to employers; 
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srobinson on DSK4SPTVN1PROD with BILLS
105 
‘‘(ii) customized employment-related 
services to employers on a fee-for-service 
basis; 
‘‘(iii) customer supports, including 
transportation and childcare, to navigate 
among multiple services and activities for 
special participant populations that face 
multiple barriers to employment, including 
individuals with disabilities; 
‘‘(iv) employment and training assist-
ance provided in coordination with child 
support enforcement activities of the State 
agency carrying out subtitle D of title IV of 
the Social Security Act (42 U.S.C. 651 et 
seq.); 
‘‘(v) incorporating pay-for-performance 
contract strategies, as defined in section 
101(56), as an element in funding activities 
under this section; 
‘‘(vi) activities to facilitate remote ac-
cess to services provided through a one-stop 
delivery system, including facilitating ac-
cess through the use of technology; and 
‘‘(vii) activities to carry out business 
services and strategies that meet the work-
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force investment needs of local area employ-
ers, as determined by the local board, con-
sistent with the local plan under section 
118.’’. 
(B) by striking paragraphs (2) and (3); and 
(C) by adding at the end the following: 
‘‘(2) 
INCUMBENT
WORKER
TRAINING
PRO-
GRAMS.— 
‘‘(A) IN GENERAL.—The local board may 
use funds allocated to a local area under section 
133(b)(2) to carry out incumbent worker train-
ing programs in accordance with this para-
graph. 
‘‘(B) TRAINING ACTIVITIES.—The training 
programs for incumbent workers under this 
paragraph shall be carried out by the local area 
in conjunction with the employers of such work-
ers for the purpose of assisting such workers in 
obtaining the skills necessary to retain employ-
ment and avert layoffs. 
‘‘(C) EMPLOYER MATCH REQUIRED.— 
‘‘(i) IN GENERAL.—Employers partici-
pating in programs under this paragraph 
shall be required to pay a proportion of the 
costs of providing the training to the in-
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cumbent workers of the employers. The local 
board shall establish the required portion of 
such costs, which may include in-kind con-
tributions. 
‘‘(ii) CALCULATION
OF
MATCH.—The 
wages paid by an employer to a worker 
while they are attending training may be 
included as part of the required payment of 
the employer.’’; and 
(7) by adding at the end the following: 
‘‘(e) PRIORITY FOR PLACEMENT IN PRIVATE SECTOR 
JOBS.—In providing employment and training activities 
authorized under this section, the State and local board 
shall give priority to placing participants in jobs in the 
private sector. 
‘‘(f) VETERAN EMPLOYMENT SPECIALIST.— 
‘‘(1) IN GENERAL.—Subject to paragraph (8), a 
local board shall hire and employ one or more veteran 
employment specialist to carry out employment, 
training, and placement services under this subsection 
in the local area served by the local board. 
‘‘(2) PRINCIPAL DUTIES.—A veteran employment 
specialist in a local area shall— 
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‘‘(A) conduct outreach to employers in the 
local area to assist veterans, including disabled 
veterans, in gaining employment, including— 
‘‘(i) conducting seminars for employ-
ers; and 
‘‘(ii) in conjunction with employers, 
conducting job search workshops, and estab-
lishing job search groups; and 
‘‘(B) facilitate employment, training, sup-
portive, and placement services furnished to vet-
erans, including disabled and homeless veterans, 
in the local area. 
‘‘(3) HIRING PREFERENCE FOR VETERANS AND 
INDIVIDUALS
WITH
EXPERTISE
IN
SERVING
VET-
ERANS.—Subject to paragraph (8), a local board 
shall, to the maximum extent practicable, employ vet-
erans or individuals with expertise in serving vet-
erans to carry out the services described in paragraph 
(2) in the local area served by the local board. In hir-
ing an individual to serve as a veteran employment 
specialist, a local board shall give preference to vet-
erans and other individuals in the following order: 
‘‘(A) To service-connected disabled veterans. 
‘‘(B) If no veteran described in subpara-
graph (A) is available, to veterans. 
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109 
‘‘(C) If no veteran described in subpara-
graph (A) or (B) is available, to any member of 
the Armed Forces transitioning out of military 
service. 
‘‘(D) If no veteran described in subpara-
graph (A), (B), or (C) is available, to any spouse 
of a veteran or a spouse of a member of the 
Armed Forces transitioning out of military serv-
ice. 
‘‘(E) If no veteran described in subpara-
graph (A), (B), or (C) is available and no spouse 
described in paragraph (D) is available, to any 
other individuals with expertise in serving vet-
erans. 
‘‘(4) ADMINISTRATION AND REPORTING.— 
‘‘(A) IN GENERAL.—Each veteran employ-
ment specialist shall be administratively respon-
sible to the manager of the one-stop delivery cen-
ter in the local area and shall provide, at a min-
imum, quarterly reports to the manager of such 
center and to the Director for Veterans’ Employ-
ment and Training for the State on the perform-
ance and compliance by the specialist with Fed-
eral law and regulations with respect to the— 
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‘‘(i) principal duties and special serv-
ices for veterans described in paragraph (2); 
and 
‘‘(ii) hiring preferences described in 
paragraph (3) for veterans and individuals 
with expertise in serving veterans. 
‘‘(B) REPORT TO SECRETARY.—Each State 
shall submit to the Secretary an annual report 
on the qualifications used by the local board in 
making hiring determinations for a veteran em-
ployment specialist and the salary structure 
under which such specialist is compensated. 
‘‘(C) REPORT
TO
CONGRESS.—The Sec-
retary shall submit to the Committee on Edu-
cation and the Workforce and the Committee on 
Veterans’ Affairs of the House of Representatives 
and the Committee on Health, Education, Labor, 
and Pensions and the Committee on Veterans’ 
Affairs of the Senate an annual report summa-
rizing the reports submitted under subparagraph 
(B), including summaries of outcomes achieved 
by participating veterans disaggregated by local 
areas. 
‘‘(5) PART-TIME EMPLOYEES.—A part-time vet-
eran employment specialist shall perform the func-
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tions of a veteran employment specialist under this 
subsection on a halftime basis. 
‘‘(6) TRAINING
REQUIREMENTS.—Each veteran 
employment specialist described in paragraph (2) 
shall satisfactorily complete training provided by the 
National Veterans’ Employment and Training Insti-
tute during the three-year period that begins on the 
date on which the employee is so assigned. 
‘‘(7) SPECIALIST’S DUTIES.—A full-time veteran 
employment specialist shall perform only duties re-
lated to the employment, training, supportive, and 
placement services under this subsection, and shall 
not perform other non-veteran-related duties if such 
duties detract from the specialist’s ability to perform 
the specialist’s duties related to employment, training, 
and placement services under this subsection. 
‘‘(8) STATE OPTION.—At the request of a local 
board, a State may assume the duties assigned to the 
local board under paragraphs (1) and (3), including 
the hiring and employment of one or more veteran 
employment specialist for placement in the local area 
served by the local board.’’. 
SEC. 114. PERFORMANCE ACCOUNTABILITY SYSTEM. 
Section 136 (29 U.S.C. 2871) is amended— 
(1) in subsection (b)— 
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(A) by amending paragraphs (1) and (2) to 
read as follows: 
‘‘(1) IN GENERAL.—For each State, the State 
performance measures shall consist of— 
‘‘(A)(i) the core indicators of performance 
described in paragraph (2)(A); and 
‘‘(ii) additional indicators of performance 
(if any) identified by the State under paragraph 
(2)(B); and 
‘‘(B) a State adjusted level of performance 
for each indicator described in subparagraph 
(A). 
‘‘(2) INDICATORS OF PERFORMANCE.— 
‘‘(A) CORE
INDICATORS
OF
PERFORM-
ANCE.— 
‘‘(i) IN GENERAL.—The core indicators 
of performance for the program of employ-
ment and training activities authorized 
under sections 132(a)(2) and 134, the pro-
gram of adult education and literacy activi-
ties authorized under title II, and the pro-
gram authorized under title I of the Reha-
bilitation Act of 1973 (29 U.S.C. 720 et 
seq.), other than section 112 or part C of 
that title (29 U.S.C. 732, 741), shall consist 
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recognized credential, or a regular sec-
ondary school diploma or its recog-
nized equivalent (subject to clause (ii)), 
during participation in or within 1 
year after exit from program. 
‘‘(V) The percentage and number 
of program participants who, during a 
program year— 
‘‘(aa) are in an education or 
training program that leads to a 
recognized postsecondary creden-
tial, a registered apprenticeship 
or on-the-job training program, 
an industry-recognized credential, 
a regular secondary school di-
ploma or its recognized equiva-
lent, or unsubsidized employment; 
and 
‘‘(bb) are achieving measur-
able basic skill gains toward such 
a credential or employment. 
‘‘(VI) The percentage and number 
of program participants who obtain 
unsubsidized employment in the field 
relating to the training services de-
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srobinson on DSK4SPTVN1PROD with BILLS
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scribed in section 134(c)(4) that such 
participants received. 
‘‘(ii) INDICATOR
RELATING
TO
CRE-
DENTIAL.—For purposes of clause (i)(IV), 
program participants who obtain a regular 
secondary school diploma or its recognized 
equivalent shall be included in the percent-
age counted as meeting the criterion under 
such clause only if such participants, in ad-
dition to obtaining such diploma or its rec-
ognized equivalent, have, within 1 year 
after exit from the program, obtained or re-
tained employment, have been removed from 
public assistance, or are in an education or 
training program leading to a recognized 
postsecondary credential. 
‘‘(B) ADDITIONAL
INDICATORS.—A State 
may identify in the State plan additional indi-
cators for workforce investment activities author-
ized under this subtitle.’’; and 
(B) in paragraph (3)— 
(i) in subparagraph (A)— 
(I) in the heading, by striking 
‘‘AND
CUSTOMER
SATISFACTION
INDI-
CATOR’’; 
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(II) in clause (i), by striking 
‘‘and the customer satisfaction indi-
cator described in paragraph (2)(B)’’; 
(III) in clause (ii), by striking 
‘‘and the customer satisfaction indi-
cator of performance, for the first 3’’ 
and inserting ‘‘, for all 3’’; 
(IV) in clause (iii)— 
(aa) in the heading, by strik-
ing ‘‘FOR FIRST 3 YEARS’’; and 
(bb) by striking ‘‘and the 
customer satisfaction indicator of 
performance, for the first 3 pro-
gram years’’ and inserting ‘‘for 
all 3 program years’’; 
(V) in clause (iv)— 
(aa) by striking ‘‘or (v)’’; 
(bb) by striking subclause (I) 
and redesignating subclauses (II) 
and (III) as subclauses (I) and 
(II), respectively; and 
(cc) in subclause (I) (as so 
redesignated)— 
(AA) by striking ‘‘tak-
ing into account’’ and insert-
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srobinson on DSK4SPTVN1PROD with BILLS
117 
ing ‘‘which shall be adjusted 
based on’’; 
(BB) by inserting ‘‘, 
such as unemployment rates 
and job losses or gains in 
particular industries’’ after 
‘‘economic conditions’’; and 
(CC) by inserting ‘‘, 
such as indicators of poor 
work experience, dislocation 
from high-wage employment, 
low levels of literacy or 
English 
proficiency, 
dis-
ability status, including the 
number of veterans with dis-
abilities, and welfare depend-
ency’’ after ‘‘program’’; 
(VI) by striking clause (v) and re-
designating clause (vi) as clause (v); 
and 
(VII) in clause (v) (as so redesig-
nated), 
(aa) by striking ‘‘described 
in clause (iv)(II)’’ and inserting 
‘‘described in clause (iv)(I)’’; and 
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srobinson on DSK4SPTVN1PROD with BILLS
118 
(bb) by striking ‘‘or (v)’’; and 
(ii) in subparagraph (B), by striking 
‘‘paragraph (2)(C)’’ and inserting ‘‘para-
graph (2)(B)’’; 
(2) in subsection (c)(1)(A)— 
(A) by amending clause (i) to read as fol-
lows: ‘‘(i) the core indicators of performance de-
scribed in subsection (b)(2)(A) for activities de-
scribed in such subsections, other than statewide 
workforce investment activities; and’’; 
(B) in clause (ii), by striking ‘‘(b)(2)(C)’’ 
and inserting ‘‘(b)(2)(B)’’; and 
(C) by amending paragraph (3) to read as 
follows: 
‘‘(3) DETERMINATIONS.—In determining such 
local levels of performance, the local board, the chief 
elected official, and the Governor shall ensure such 
levels are adjusted based on the specific economic 
characteristics (such as unemployment rates and job 
losses or gains in particular industries), demographic 
characteristics, or other characteristics of the popu-
lation to be served in the local area.’’; 
(3) in subsection (d)— 
(A) in paragraph (1)— 
(i) by striking ‘‘127 or’’; 
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(ii) by striking ‘‘and the customer sat-
isfaction indicator’’ each place it appears; 
and 
(iii) in the last sentence, by inserting 
before the period the following: ‘‘, and on 
the amount and percentage of the State’s 
annual allotment under section 132 the 
State spends on administrative costs and on 
the amount and percentage of its annual al-
location under section 133 each local area 
in the State spends on administrative 
costs’’; 
(B) in paragraph (2)— 
(i) by striking subparagraphs (A), (B), 
and (D); 
(ii) by redesignating subparagraph (C) 
as subparagraph (A); 
(iii) by redesignating subparagraph 
(E) as subparagraph (B); 
(iv) in subparagraph (B), as so redes-
ignated— 
(I) by striking ‘‘(excluding par-
ticipants who received only self-service 
and informational activities)’’; and 
(II) by striking ‘‘and’’ at the end; 
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type of entity that provided the training; 
and 
‘‘(iii) the average cost per participant 
of those individuals who received work 
ready services described under section 
134(c)(2) and the average cost per partici-
pant of those individuals who received 
training services described under section 
134(c)(4) during the most recent program 
year and fiscal year, and the preceding 5 
program years, and where the individuals 
received the training, disaggregated by the 
type of entity that provided the training; 
and 
‘‘(E) the amount of funds spent on training 
services and discretionary one-stop delivery ac-
tivities, disaggregated by the populations identi-
fied in the State and local plans.’’; 
(C) in paragraph (3)(A), by striking 
‘‘through publication’’ and inserting ‘‘through 
electronic means’’; and 
(D) by adding at the end the following: 
‘‘(4) DATA VALIDATION.—In preparing the re-
ports described in this subsection, each State shall es-
tablish procedures, consistent with guidelines issued 
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by the Secretary, to ensure the information contained 
in the report is valid and reliable. 
‘‘(5) STATE AND LOCAL POLICIES.— 
‘‘(A) STATE POLICIES.—Each State that re-
ceives an allotment under section 132 shall 
maintain a central repository of policies related 
to access, eligibility, availability of services, and 
other matters and plans approved by the State 
board and make such repository available to the 
public, including by electronic means. 
‘‘(B) LOCAL
POLICIES.—Each local area 
that receives an allotment under section 133 
shall maintain a central repository of policies 
related to access, eligibility, availability of serv-
ices, and other matters and plans approved by 
the local board and make such repository avail-
able to the public, including by electronic 
means.’’; 
(4) in subsection (g)— 
(A) in paragraph (1)(A), by striking ‘‘or 
(B)’’; 
(B) in paragraph (1)(B), by striking ‘‘may 
reduce by not more than 5 percent,’’ and insert-
ing ‘‘shall reduce’’; and 
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(C) by striking paragraph (2) and inserting 
the following: 
‘‘(2) FUNDS RESULTING FROM REDUCED ALLOT-
MENTS.—The Secretary shall return to the Treasury 
the amount retained, as a result of a reduction in an 
allotment to a State made under paragraph (1)(B).’’; 
(5) in subsection (h)(1), by striking ‘‘or (B)’’; 
(6) in subsection (h)(2)— 
(A) in subparagraph (A), by amending the 
matter preceding clause (i) to read as follows: 
‘‘(A) IN
GENERAL.—If such failure con-
tinues for a second consecutive year, the Gov-
ernor shall take corrective actions, including the 
development of a reorganization plan. Such plan 
shall—’’; 
(B) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (D), respec-
tively; 
(C) by inserting after subparagraph (A), the 
following: 
‘‘(B) REDUCTION
IN
THE
AMOUNT
OF 
GRANT.—If such failure continues for a third 
consecutive year, the Governor of a State shall 
reduce the amount of the grant that would (in 
the absence of this subparagraph) be payable to 
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124 
the local area under such program for the pro-
gram year after such third consecutive year. 
Such penalty shall be based on the degree of fail-
ure to meet local levels of performance.’’; 
(D) in subparagraph (C)(i) (as so redesig-
nated), by striking ‘‘a reorganization plan under 
subparagraph (A) may, not later than 30 days 
after receiving notice of the reorganization plan, 
appeal to the Governor to rescind or revise such 
plan’’ and inserting ‘‘corrective actions under 
subparagraphs (A) and (B) may, not later than 
30 days after receiving notice of the actions, ap-
peal to the Governor to rescind or revise such ac-
tions’’; and 
(E) in subparagraph (D) (as so redesig-
nated), by striking ‘‘subparagraph (B)’’ each 
place it appears and inserting ‘‘subparagraph 
(C)’’; 
(7) in subsection (i)(1)(B), by striking ‘‘sub-
section 
(b)(2)(C)’’ 
and 
inserting 
‘‘subsection 
(b)(2)(B)’’; 
(8) 
in 
subsection 
(i)(1)(C), 
by 
striking 
‘‘(b)(3)(A)(vi)’’ and inserting ‘‘(b)(3)(A)(v)’’; 
(9) in subsection (i)(2), by striking ‘‘the activi-
ties described in section 502 concerning’’; 
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(10) in subsection (i)(3), by striking ‘‘described 
in paragraph (1) and in the activities described in 
section 502’’ and inserting ‘‘and activities described 
in this subsection’’; and 
(11) by adding at the end the following new sub-
sections: 
‘‘(j) USE OF CORE INDICATORS FOR OTHER PRO-
GRAMS.—In addition to the programs carried out under 
chapter 5, and consistent with the requirements of the ap-
plicable authorizing laws, the Secretary shall use the core 
indicators of performance described in subsection (b)(2)(A) 
to assess the effectiveness of the programs described under 
section 121(b)(1)(B) that are carried out by the Secretary. 
‘‘(k) ESTABLISHING PAY-FOR-PERFORMANCE INCEN-
TIVES.— 
‘‘(1) IN GENERAL.—At the discretion of the Gov-
ernor of a State, a State may establish an incentive 
system for local boards to implement pay-for-perform-
ance contract strategies for the delivery of employ-
ment and training services in the local areas served 
by the local boards. 
‘‘(2) IMPLEMENTATION.—A State that establishes 
a pay-for-performance incentive system shall reserve 
not more than 10 percent of the total amount allotted 
to the State under section 132(b)(2) for a fiscal year 
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to provide funds to local areas in the State whose 
local boards have implemented a pay-for-performance 
contract strategy. 
‘‘(3) EVALUATIONS.—A State described in para-
graph (2) shall use funds reserved by the State under 
section 133(a)(1) to evaluate the return on investment 
of pay-for-performance contract strategies imple-
mented by local boards in the State.’’. 
SEC. 115. AUTHORIZATION OF APPROPRIATIONS. 
Section 137 (29 U.S.C. 2872) is amended to read as 
follows: 
‘‘SEC. 137. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
the activities described in section 132, $6,245,318,000 for 
fiscal year 2014 and each of the 6 succeeding fiscal years.’’. 
Subtitle C—Job Corps 
SEC. 116. JOB CORPS PURPOSES. 
Paragraph (1) of section 141 (29 U.S.C. 2881(1)) is 
amended to read as follows: 
‘‘(1) to maintain a national Job Corps program 
for at-risk youth, carried out in partnership with 
States and communities, to assist eligible youth to 
connect to the workforce by providing them with in-
tensive academic, career and technical education, and 
service-learning opportunities, in residential and 
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nonresidential centers, in order for such youth to ob-
tain regular secondary school diplomas and recog-
nized postsecondary credentials leading to successful 
careers in in-demand industries that will result in 
opportunities for advancement;’’. 
SEC. 117. JOB CORPS DEFINITIONS. 
Section 142 (29 U.S.C. 2882) is amended— 
(1) in paragraph (2)— 
(A) in the paragraph heading, by striking 
‘‘APPLICABLE ONE-STOP’’ and inserting ‘‘ONE- 
STOP’’; 
(B) by striking ‘‘applicable’’; 
(C) by striking ‘‘customer service’’; and 
(D) by striking ‘‘intake’’ and inserting ‘‘as-
sessment’’; 
(2) in paragraph (4), by striking ‘‘before com-
pleting the requirements’’ and all that follows and in-
serting ‘‘prior to becoming a graduate.’’; and 
(3) in paragraph (5), by striking ‘‘has completed 
the requirements’’ and all that follows and inserting 
the following: ‘‘who, as a result of participation in the 
Job Corps program, has received a regular secondary 
school diploma, completed the requirements of a ca-
reer and technical education and training program, 
or received, or is making satisfactory progress (as de-
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fined under section 484(c) of the Higher Education 
Act of 1965 (20 U.S.C. 1091(c)) toward receiving, a 
recognized postsecondary credential, including an in-
dustry-recognized credential that prepares individuals 
for employment leading to economic self-sufficiency.’’. 
SEC. 118. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS. 
Section 144 (29 U.S.C. 2884) is amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) not less than age 16 and not more than age 
24 on the date of enrollment;’’; 
(2) in paragraph (3)(B), by inserting ‘‘sec-
ondary’’ before ‘‘school’’; and 
(3) in paragraph (3)(E), by striking ‘‘voca-
tional’’ and inserting ‘‘career and technical education 
and’’. 
SEC. 119. RECRUITMENT, SCREENING, SELECTION, AND AS-
SIGNMENT OF ENROLLEES. 
Section 145 (29 U.S.C. 2885) is amended— 
(1) in subsection (a)— 
(A) in paragraph (2)(C)(i) by striking ‘‘vo-
cational’’ and inserting ‘‘career and technical 
education and training’’; and 
(B) in paragraph (3)— 
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(i) by striking ‘‘To the extent prac-
ticable, the’’ and inserting ‘‘The’’; 
(ii) in subparagraph (A)— 
(I) by striking ‘‘applicable’’; and 
(II) by inserting ‘‘and’’ after the 
semicolon; 
(iii) by striking subparagraphs (B) 
and (C); and 
(iv) by adding at the end the following: 
‘‘(B) organizations that have a dem-
onstrated record of effectiveness in placing at- 
risk youth into employment.’’; 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) in subparagraph (B), by inserting 
‘‘and agrees to such rules’’ after ‘‘failure to 
observe the rules’’; and 
(ii) by amending subparagraph (C) to 
read as follows: 
‘‘(C) the individual has passed a back-
ground check conducted in accordance with pro-
cedures established by the Secretary, which shall 
include— 
‘‘(i) a search of the State criminal reg-
istry or repository in the State where the 
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individual resides and each State where the 
individual previously resided; 
‘‘(ii) a search of State-based child 
abuse and neglect registries and databases 
in the State where the individual resides 
and each State where the individual pre-
viously resided; 
‘‘(iii) a search of the National Crime 
Information Center; 
‘‘(iv) a Federal Bureau of Investiga-
tion fingerprint check using the Integrated 
Automated Fingerprint Identification Sys-
tem; and 
‘‘(v) a search of the National Sex Of-
fender Registry established under the Adam 
Walsh Child Protection and Safety Act of 
2006 (42 U.S.C. 16901 et seq.).’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(3) INDIVIDUALS CONVICTED OF A CRIME.—An 
individual shall be ineligible for enrollment if the in-
dividual— 
‘‘(A) makes a false statement in connection 
with the criminal background check described in 
paragraph (1)(C); 
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‘‘(B) is registered or is required to be reg-
istered on a State sex offender registry or the Na-
tional Sex Offender Registry established under 
the Adam Walsh Child Protection and Safety Act 
of 2006 (42 U.S.C. 16901 et seq.); or 
‘‘(C) has been convicted of a felony con-
sisting of— 
‘‘(i) homicide; 
‘‘(ii) child abuse or neglect; 
‘‘(iii) a crime against children, includ-
ing child pornography; 
‘‘(iv) a crime involving rape or sexual 
assault; or 
‘‘(v) physical assault, battery, or a 
drug-related offense, committed within the 
past 5 years.’’; 
(3) in subsection (c)— 
(A) in paragraph (1)— 
(i) by striking ‘‘2 years’’ and inserting 
‘‘year’’; and 
(ii) by striking ‘‘an assignment’’ and 
inserting ‘‘a’’; and 
(B) in paragraph (2)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘, every 2 years,’’; 
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(ii) in subparagraph (B), by striking 
‘‘and’’ at the end; and 
(iii) in subparagraph (C)— 
(I) by inserting ‘‘the education 
and training’’ after ‘‘including’’; and 
(II) by striking the period at the 
end and inserting ‘‘; and’’; and 
(iv) by adding at the end the following: 
‘‘(D) the performance of the Job Corps cen-
ter relating to the indicators described in para-
graphs (1) and (2) in section 159(c), and wheth-
er any actions have been taken with respect to 
such center pursuant to section 159(f).’’; and 
(4) in subsection (d)— 
(A) in paragraph (1)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘is closest to the 
home of the enrollee, except that the’’ and 
inserting ‘‘offers the type of career and tech-
nical education and training selected by the 
individual and, among the centers that offer 
such education and training, is closest to 
the home of the individual. The’’; 
(ii) by striking subparagraph (A); and 
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(iii) by redesignating subparagraphs 
(B) and (C) as subparagraphs (A) and (B), 
respectively; and 
(B) in paragraph (2), by inserting ‘‘that of-
fers the career and technical education and 
training desired by’’ after ‘‘home of the enrollee’’. 
SEC. 120. JOB CORPS CENTERS. 
Section 147 (29 U.S.C. 2887) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)(A), by striking ‘‘voca-
tional’’ both places it appears and inserting ‘‘ca-
reer and technical’’; and 
(B) in paragraph (2)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘subsections (c) 
and (d) of section 303 of the Federal 
Property and Administrative Services 
Act of 1949 (41 U.S.C. 253)’’ and in-
serting ‘‘subsections (a) and (b) of sec-
tion 3304 of title 41, United States 
Code’’; and 
(II) by striking ‘‘industry coun-
cil’’ and inserting ‘‘workforce council’’; 
(ii) in subparagraph (B)(i)— 
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(I) by amending subclause (II) to 
read as follows: 
‘‘(II) the ability of the entity to 
offer career and technical education 
and training that the workforce council 
proposes under section 154(c);’’; 
(II) in subclause (III), by striking 
‘‘is familiar with the surrounding com-
munities, applicable’’ and inserting 
‘‘demonstrates relationships with the 
surrounding communities, employers, 
workforce boards,’’ and by striking 
‘‘and’’ at the end; 
(III) by amending subclause (IV) 
to read as follows: 
‘‘(IV) the performance of the enti-
ty, if any, relating to operating or pro-
viding activities described in this sub-
title to a Job Corps center, including 
the entity’s demonstrated effectiveness 
in assisting individuals in achieving 
the primary and secondary indicators 
of performance described in para-
graphs (1) and (2) of section 159(c); 
and’’; and 
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135 
(IV) by adding at the end the fol-
lowing new subclause: 
‘‘(V) the ability of the entity to 
demonstrate a record of successfully as-
sisting at-risk youth to connect to the 
workforce, including by providing them 
with intensive academic, and career 
and technical education and train-
ing.’’; and 
(iii) in subparagraph (B)(ii), by strik-
ing ‘‘, as appropriate’’; 
(2) in subsection (b), by striking ‘‘In any year, 
no more than 20 percent of the individuals enrolled 
in the Job Corps may be nonresidential participants 
in the Job Corps.’’; 
(3) by amending subsection (c) to read as fol-
lows: 
‘‘(c) CIVILIAN CONSERVATION CENTERS.— 
‘‘(1) IN GENERAL.—The Job Corps centers may 
include Civilian Conservation Centers, operated 
under an agreement between the Secretary of Labor 
and the Secretary of Agriculture, that are located pri-
marily in rural areas. Such centers shall adhere to all 
the provisions of this subtitle, and shall provide, in 
addition to education, career and technical education 
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136 
and training, and workforce preparation skills train-
ing described in section 148, programs of work experi-
ence to conserve, develop, or manage public natural 
resources or public recreational areas or to develop 
community projects in the public interest. 
‘‘(2) SELECTION PROCESS.—The Secretary shall 
select an entity that submits an application under 
subsection (d) to operate a Civilian Conservation 
Center on a competitive basis, as provided in sub-
section (a).’’; and 
(4) by striking subsection (d) and inserting the 
following: 
‘‘(d) APPLICATION.—To be eligible to operate a Job 
Corps center under this subtitle, an entity shall submit an 
application to the Secretary at such time, in such manner, 
and containing such information as the Secretary may re-
quire, including— 
‘‘(1) a description of the program activities that 
will be offered at the center, including how the career 
and technical education and training reflect State 
and local employment opportunities, including in in- 
demand industries; 
‘‘(2) a description of the counseling, placement, 
and support activities that will be offered at the cen-
ter, including a description of the strategies and pro-
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cedures the entity will use to place graduates into un-
subsidized employment upon completion of the pro-
gram; 
‘‘(3) a description of the demonstrated record of 
effectiveness that the entity has in placing at-risk 
youth into employment, including past performance 
of operating a Job Corps center under this subtitle; 
‘‘(4) a description of the relationships that the 
entity has developed with State and local workforce 
boards, employers, State and local educational agen-
cies, and the surrounding communities in an effort to 
promote a comprehensive statewide workforce invest-
ment system; 
‘‘(5) a description of the strong fiscal controls the 
entity has in place to ensure proper accounting of 
Federal funds, and a description of how the entity 
will meet the requirements of section 159(a); 
‘‘(6) a description of the strategies and policies 
the entity will utilize to reduce participant costs; 
‘‘(7) a description of the steps taken to control 
costs in accordance with section 159(a)(3); 
‘‘(8) a detailed budget of the activities that will 
be supported using funds under this subtitle; 
‘‘(9) a detailed budget of the activities that will 
be supported using funds from non-Federal resources; 
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138 
‘‘(10) an assurance the entity will comply with 
the administrative cost limitation included in section 
151(c); 
‘‘(11) an assurance the entity is licensed to oper-
ate in the State in which the center is located; and 
‘‘(12) an assurance the entity will comply with 
and meet basic health and safety codes, including 
those measures described in section 152(b). 
‘‘(e) LENGTH OF AGREEMENT.—The agreement de-
scribed in subsection (a)(1)(A) shall be for not longer than 
a 2-year period. The Secretary may renew the agreement 
for 3 one-year periods if the entity meets the requirements 
of subsection (f). 
‘‘(f) RENEWAL.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), the 
Secretary may renew the terms of an agreement de-
scribed in subsection (a)(1)(A) for an entity to oper-
ate a Job Corps center if the center meets or exceeds 
each of the indicators of performance described in sec-
tion 159(c)(1). 
‘‘(2) RECOMPETITION.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), the Secretary shall not renew the 
terms of the agreement for an entity to operate 
a Job Corps center if such center is ranked in 
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the bottom quintile of centers described in section 
159(f)(2) for any program year. Such entity 
may submit a new application under subsection 
(d) only if such center has shown significant im-
provement on the indicators of performance de-
scribed in section 159(c)(1) over the last program 
year. 
‘‘(B) VIOLATIONS.—The Secretary shall not 
select an entity to operate a Job Corps center if 
such entity or such center has been found to have 
a systemic or substantial material failure that 
involves— 
‘‘(i) a threat to the health, safety, or 
civil rights of program participants or staff; 
‘‘(ii) the misuse of funds received 
under this subtitle; 
‘‘(iii) loss of legal status or financial 
viability, loss of permits, debarment from 
receiving Federal grants or contracts, or the 
improper use of Federal funds; 
‘‘(iv) failure to meet any other Federal 
or State requirement that the entity has 
shown an unwillingness or inability to cor-
rect, after notice from the Secretary, within 
the period specified; or 
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‘‘(v) an unresolved area of noncompli-
ance. 
‘‘(g) CURRENT GRANTEES.—Not later than 60 days 
after the date of enactment of the SKILLS Act and notwith-
standing any previous grant award or renewals of such 
award under this subtitle, the Secretary shall require all 
entities operating a Job Corps center under this subtitle to 
submit an application under subsection (d) to carry out 
the requirements of this section.’’. 
SEC. 121. PROGRAM ACTIVITIES. 
Section 148 (29 U.S.C. 2888) is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) ACTIVITIES PROVIDED THROUGH JOB CORPS 
CENTERS.— 
‘‘(1) IN GENERAL.—Each Job Corps center shall 
provide enrollees with an intensive, well-organized, 
and supervised program of education, career, and 
technical education and training, work experience, 
recreational activities, physical rehabilitation and de-
velopment, and counseling. Each Job Corps center 
shall provide enrollees assigned to the center with ac-
cess to work-ready services described in section 
134(c)(2). 
‘‘(2) RELATIONSHIP TO OPPORTUNITIES.— 
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‘‘(A) IN GENERAL.—The activities provided 
under this subsection shall be targeted to helping 
enrollees, on completion of their enrollment— 
‘‘(i) secure and maintain meaningful 
unsubsidized employment; 
‘‘(ii) complete secondary education and 
obtain a regular secondary school diploma; 
‘‘(iii) enroll in and complete postsec-
ondary education or training programs, in-
cluding obtaining recognized postsecondary 
credentials, industry-recognized credentials, 
and registered apprenticeships; or 
‘‘(iv) satisfy Armed Forces require-
ments. 
‘‘(B) LINK
TO
EMPLOYMENT
OPPORTUNI-
TIES.—The career and technical education and 
training provided shall be linked to the employ-
ment opportunities in in-demand industries in 
the State in which the Job Corps center is lo-
cated.’’; and 
(2) in subsection (b)— 
(A) in the subsection heading, by striking 
‘‘EDUCATION
AND VOCATIONAL’’ and inserting 
‘‘ACADEMIC AND CAREER AND TECHNICAL EDU-
CATION AND’’; 
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(B) by striking ‘‘may’’ after ‘‘The Sec-
retary’’ and inserting ‘‘shall’’; and 
(C) by striking ‘‘vocational’’ each place it 
appears and inserting ‘‘career and technical’’; 
and 
(3) by amending paragraph (3) of subsection (c) 
to read as follows: 
‘‘(3) DEMONSTRATION.—Each year, any operator 
seeking to enroll additional enrollees in an advanced 
career training program shall demonstrate, before the 
operator may carry out such additional enrollment, 
that— 
‘‘(A) participants in such program have 
achieved a satisfactory rate of completion and 
placement in training-related jobs; and 
‘‘(B) such operator has met or exceeded the 
indicators of performance described in para-
graphs (1) and (2) of section 159(c) for the pre-
vious year.’’. 
SEC. 122. COUNSELING AND JOB PLACEMENT. 
Section 149 (29 U.S.C. 2889) is amended— 
(1) in subsection (a), by striking ‘‘vocational’’ 
and inserting ‘‘career and technical education and’’; 
(2) in subsection (b), by striking ‘‘make every ef-
fort to arrange to’’; and 
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(3) by striking subsection (d). 
SEC. 123. SUPPORT. 
Subsection (b) of section 150 (29 U.S.C. 2890) is 
amended to read as follows: 
‘‘(b) TRANSITION ALLOWANCES
AND SUPPORT
FOR 
GRADUATES.—The Secretary shall arrange for a transition 
allowance to be paid to graduates. The transition allowance 
shall be incentive-based to reflect a graduate’s completion 
of academic, career and technical education or training, 
and attainment of a recognized postsecondary credential, 
including an industry-recognized credential.’’. 
SEC. 124. OPERATIONS. 
Section 151 (29 U.S.C. 2891) is amended— 
(1) in the header, by striking ‘‘OPERATING 
PLAN.’’ and inserting ‘‘OPERATIONS.’’; 
(2) in subsection (a), by striking ‘‘IN GEN-
ERAL.—’’ and inserting ‘‘OPERATING PLAN.—’’; 
(3) by striking subsection (b) and redesignating 
subsection (c) as subsection (b); 
(4) by amending subsection (b) (as so redesig-
nated)— 
(A) in the heading by inserting ‘‘OF OPER-
ATING PLAN’’ after ‘‘AVAILABILITY’’; and 
(B) by striking ‘‘subsections (a) and (b)’’ 
and inserting ‘‘subsection (a)’’; and 
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144 
(5) by adding at the end the following new sub-
section: 
‘‘(c) ADMINISTRATIVE COSTS.—Not more than 10 per-
cent of the funds allotted under section 147 to an entity 
selected to operate a Job Corps center may be used by the 
entity for administrative costs under this subtitle.’’. 
SEC. 125. COMMUNITY PARTICIPATION. 
Section 153 (29 U.S.C. 2893) is amended to read as 
follows: 
‘‘SEC. 153. COMMUNITY PARTICIPATION. 
‘‘The director of each Job Corps center shall encourage 
and cooperate in activities to establish a mutually bene-
ficial relationship between Job Corps centers in the State 
and nearby communities. Such activities may include the 
use of any local workforce development boards established 
under section 117 to provide a mechanism for joint discus-
sion of common problems and for planning programs of 
mutual interest.’’. 
SEC. 126. WORKFORCE COUNCILS. 
Section 154 (29 U.S.C. 2894) is amended to read as 
follows: 
‘‘SEC. 154. WORKFORCE COUNCILS. 
‘‘(a) IN GENERAL.—Each Job Corps center shall have 
a workforce council appointed by the Governor of the State 
in which the Job Corps center is located. 
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145 
‘‘(b) WORKFORCE COUNCIL COMPOSITION.— 
‘‘(1) IN GENERAL.—A workforce council shall be 
comprised of— 
‘‘(A) business members of the State board 
described in section 111(b)(1)(B)(i); 
‘‘(B) business members of the local boards 
described in section 117(b)(2)(A) located in the 
State; 
‘‘(C) a representative of the State board de-
scribed in section 111(f); and 
‘‘(D) such other representatives and State 
agency officials as the Governor may designate. 
‘‘(2) MAJORITY.—A 2⁄3 majority of the members 
of the workforce council shall be representatives de-
scribed in paragraph (1)(A). 
‘‘(c) RESPONSIBILITIES.—The responsibilities of the 
workforce council shall be— 
‘‘(1) to review all the relevant labor market in-
formation, including related information in the State 
plan described in section 112, to— 
‘‘(A) determine the in-demand industries in 
the State in which enrollees intend to seek em-
ployment after graduation; 
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146 
‘‘(B) determine the skills and education that 
are necessary to obtain the employment opportu-
nities described in subparagraph (A); and 
‘‘(C) determine the type or types of career 
and technical education and training that will 
be implemented at the center to enable the enroll-
ees to obtain the employment opportunities; and 
‘‘(2) to meet at least once a year to reevaluate 
the labor market information, and other relevant in-
formation, to determine any necessary changes in the 
career and technical education and training provided 
at the center.’’. 
SEC. 127. TECHNICAL ASSISTANCE. 
Section 156 (29 U.S.C. 2896) is amended to read as 
follows: 
‘‘SEC. 156. TECHNICAL ASSISTANCE TO CENTERS. 
‘‘(a) IN GENERAL.—From the funds reserved under 
section 132(a)(3), the Secretary shall provide, directly or 
through grants, contracts, or other agreements or arrange-
ments as the Secretary considers appropriate, technical as-
sistance and training for the Job Corps program for the 
purposes of improving program quality. 
‘‘(b) ACTIVITIES.—In providing training and tech-
nical assistance and for allocating resources for such assist-
ance, the Secretary shall— 
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147 
‘‘(1) assist entities, including those entities not 
currently operating a Job Corps center, in developing 
the application described in section 147(d); 
‘‘(2) assist Job Corps centers and programs in 
correcting deficiencies and violations under this sub-
title; 
‘‘(3) assist Job Corps centers and programs in 
meeting or exceeding the indicators of performance 
described in paragraph (1) and (2) of section 159(c); 
and 
‘‘(4) assist Job Corps centers and programs in 
the development of sound management practices, in-
cluding financial management procedures.’’. 
SEC. 128. SPECIAL PROVISIONS. 
Section 158(c)(1) (29 U.S.C. 2989(c)(1)) is amended 
by striking ‘‘title II of the Federal Property and Adminis-
trative Services Act of 1949 (40 U.S.C. 481 et seq.)’’ and 
inserting ‘‘chapter of 5 title 40, United States Code,’’. 
SEC. 129. PERFORMANCE ACCOUNTABILITY MANAGEMENT. 
Section 159 (29 U.S.C. 2899) is amended— 
(1) in the section heading, by striking ‘‘MAN-
AGEMENT
INFORMATION’’ and inserting ‘‘PER-
FORMANCE
ACCOUNTABILITY
AND
MANAGE-
MENT’’; 
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(2) in subsection (a)(3), by inserting before the 
period at the end the following: ‘‘, or operating costs 
for such centers result in a budgetary shortfall’’; 
(3) by striking subsections (c) through (g); and 
(4) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) INDICATORS OF PERFORMANCE.— 
‘‘(1) PRIMARY
INDICATORS.—The annual pri-
mary indicators of performance for Job Corps centers 
shall include— 
‘‘(A) the percentage and number of enrollees 
who graduate from the Job Corps center; 
‘‘(B) the percentage and number of grad-
uates who entered unsubsidized employment re-
lated to the career and technical education and 
training received through the Job Corps center, 
except that such calculation shall not include en-
rollment in education, the military or volunteer 
service; 
‘‘(C) the percentage and number of grad-
uates who obtained a recognized postsecondary 
credential, including an industry-recognized cre-
dential or a registered apprenticeship; and 
‘‘(D) the cost per successful performance 
outcome, which is calculated by comparing the 
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149 
number of graduates who were placed in unsub-
sidized employment or obtained a recognized cre-
dential, including an industry-recognized creden-
tial, to total program costs, including all oper-
ations, construction, and administration costs at 
each Job Corp center. 
‘‘(2) SECONDARY INDICATORS.—The annual sec-
ondary indicators of performance for Job Corps cen-
ters shall include— 
‘‘(A) the percentage and number of grad-
uates who entered unsubsidized employment not 
related to the career and technical education and 
training received through the Job Corps center; 
‘‘(B) the percentage and number of grad-
uates who entered into postsecondary education; 
‘‘(C) the percentage and number of grad-
uates who entered into the military; 
‘‘(D) the average wage of graduates who are 
in unsubsidized employment— 
‘‘(i) on the first day of employment; 
and 
‘‘(ii) 6 months after the first day; 
‘‘(E) the number and percentage of grad-
uates who entered unsubsidized employment and 
were retained in the unsubsidized employment— 
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‘‘(i) 6 months after the first day of em-
ployment; and 
‘‘(ii) 12 months after the first day of 
employment; 
‘‘(F) the percentage and number of enrollees 
compared to the percentage and number of en-
rollees the Secretary has established targets in 
section 145(c)(1); 
‘‘(G) the cost per training slot, which is cal-
culated by comparing the program’s maximum 
number of students that can be enrolled in a Job 
Corps center at any given time during the pro-
gram year to the number of enrollees in the same 
program year; and 
‘‘(H) the number and percentage of former 
enrollees, including the number dismissed under 
the zero tolerance policy described in section 
152(b). 
‘‘(3) INDICATORS
OF
PERFORMANCE
FOR
RE-
CRUITERS.—The annual indicators of performance for 
recruiters shall include the measurements described in 
subparagraph (A) of paragraph (1) and subpara-
graphs (F), (G), and (H) of paragraph (2). 
‘‘(4) INDICATORS OF PERFORMANCE OF CAREER 
TRANSITION SERVICE PROVIDERS.—The annual indi-
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cators of performance of career transition service pro-
viders shall include the measurements described in 
subparagraphs (B) and (C) of paragraph (1) and 
subparagraphs, (B), (C), (D), and (E) of paragraph 
(2). 
‘‘(d) ADDITIONAL INFORMATION.—The Secretary shall 
collect, and submit in the report described in subsection (f), 
information on the performance of each Job Corps center, 
and the Job Corps program, regarding— 
‘‘(1) the number and percentage of former enroll-
ees who obtained a regular secondary school diploma; 
‘‘(2) the number and percentage of former enroll-
ees who entered unsubsidized employment; 
‘‘(3) the number and percentage of former enroll-
ees who obtained a recognized postsecondary creden-
tial, including an industry-recognized credential; 
‘‘(4) the number and percentage of former enroll-
ees who entered into military service; and 
‘‘(5) any additional information required by the 
Secretary. 
‘‘(e) METHODS.—The Secretary shall collect the infor-
mation described in subsections (c) and (d), using methods 
described in section 136(i)(2) and consistent with State law, 
by entering into agreements with the States to access such 
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data for Job Corps enrollees, former enrollees, and grad-
uates. 
‘‘(f) TRANSPARENCY AND ACCOUNTABILITY.— 
‘‘(1) REPORT.—The Secretary shall collect and 
annually submit to the Committee on Education and 
the Workforce of the House of Representatives and the 
Committee on Health, Education. Labor and Pen-
sions of the Senate, as well as make available to the 
public by electronic means, a report containing— 
‘‘(A) information on the performance of 
each Job Corps center, and the Job Corps pro-
gram, on the performance indicators described in 
paragraphs (1) and (2) of subsection (c); 
‘‘(B) a comparison of each Job Corps cen-
ter, by rank, on the performance indicators de-
scribed in paragraphs (1) and (2) of subsection 
(c); 
‘‘(C) a comparison of each Job Corps center, 
by rank, on the average performance of all pri-
mary indicators described in paragraph (1) of 
subsection (c); 
‘‘(D) information on the performance of the 
service providers described in paragraphs (3) 
and (4) of subsection (c) on the performance in-
dicators established under such paragraphs; and 
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‘‘(E) a comparison of each service provider, 
by rank, on the performance of all service pro-
viders described in paragraphs (3) and (4) of 
subsection (c) on the performance indicators es-
tablished under such paragraphs. 
‘‘(2) ASSESSMENT.—The Secretary shall conduct 
an annual assessment of the performance of each Job 
Corps center which shall include information on the 
Job Corps centers that— 
‘‘(A) are ranked in the bottom 10 percent on 
the performance indicator described in para-
graph (1)(C); or 
‘‘(B) have failed a safety and health code re-
view described in subsection (g). 
‘‘(3) PERFORMANCE
IMPROVEMENT.—With re-
spect to a Job Corps center that is identified under 
paragraph (2) or reports less than 50 percent on the 
performance indicators described in subparagraphs 
(A), (B), or (C) of subsection (c)(1), the Secretary 
shall develop and implement a 1 year performance 
improvement plan. Such a plan shall require action 
including— 
‘‘(A) providing technical assistance to the 
center; 
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‘‘(B) changing the management staff of the 
center; 
‘‘(C) replacing the operator of the center; 
‘‘(D) reducing the capacity of the center; or 
‘‘(E) closing the center. 
‘‘(4) CLOSURE
OF
JOB
CORPS
CENTERS.—Job 
Corps centers that have been identified under para-
graph (2) for more than 4 consecutive years shall be 
closed. The Secretary shall ensure— 
‘‘(A) that the proposed decision to close the 
center is announced in advance to the general 
public through publication in the Federal Reg-
ister and other appropriate means; and 
‘‘(B) the establishment of a reasonable com-
ment period, not to exceed 30 days, for interested 
individuals to submit written comments to the 
Secretary. 
‘‘(g) PARTICIPANT HEALTH AND SAFETY.—The Sec-
retary shall enter into an agreement with the General Serv-
ices Administration or the appropriate State agency re-
sponsible for inspecting public buildings and safeguarding 
the health of disadvantaged students, to conduct an in-per-
son review of the physical condition and health-related ac-
tivities of each Job Corps center annually. Such review 
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shall include a passing rate of occupancy under Federal 
and State ordinances.’’. 
Subtitle D—National Programs 
SEC. 130. TECHNICAL ASSISTANCE. 
Section 170 (29 U.S.C. 2915) is amended— 
(1) by striking subsection (b); 
(2) by striking: 
‘‘(a) GENERAL TECHNICAL ASSISTANCE.—’’; 
(3) by redesignating paragraphs (1), (2), and (3) 
as subsections (a), (b), and (c) respectively, and mov-
ing such subsections 2 ems to the left; 
(4) in subsection (a) (as so redesignated)— 
(A) by inserting ‘‘the training of staff pro-
viding rapid response services, the training of 
other staff of recipients of funds under this title, 
assistance regarding accounting and program 
operation practices (when such assistance would 
not be duplicative to assistance provided by the 
State), technical assistance to States that do not 
meet State performance measures described in 
section 136,’’ after ‘‘localities,’’; and 
(B) by striking ‘‘from carrying out activi-
ties’’ and all that follows up to the period and 
inserting ‘‘to implement the amendments made 
by the SKILLS Act’’; 
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(5) in subsection (b) (as so redesignated)— 
(A) by striking ‘‘paragraph (1)’’ and insert-
ing ‘‘subsection (a)’’; 
(B) by striking ‘‘, or recipient of financial 
assistance under any of sections 166 through 
169,’’; and 
(C) by striking ‘‘or grant recipient’’; 
(6) in subsection (c) (as so redesignated), by 
striking ‘‘paragraph (1)’’ and inserting ‘‘subsection 
(a)’’; and 
(7) by inserting, after subsection (c) (as so redes-
ignated), the following: 
‘‘(d) BEST PRACTICES COORDINATION.—The Secretary 
shall— 
‘‘(1) establish a system through which States 
may share information regarding best practices with 
regard to the operation of workforce investment ac-
tivities under this Act; and 
‘‘(2) evaluate and disseminate information re-
garding best practices and identify knowledge gaps.’’. 
SEC. 131. EVALUATIONS. 
Section 172 (29 U.S.C. 2917) is amended— 
(1) in subsection (a), by striking ‘‘the Secretary 
shall provide for the continuing evaluation of the pro-
grams and activities, including those programs and 
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activities carried out under section 171’’ and insert-
ing ‘‘the Secretary, through grants, contracts, or coop-
erative agreements, shall conduct, at least once every 
5 years, an independent evaluation of the programs 
and activities funded under this Act’’; 
(2) in subsection (a)(4) is amended to read as 
follows: 
‘‘(4) the impact of receiving services and not re-
ceiving services under such programs and activities 
on the community, businesses, and individuals;’’; 
(3) in subsection (c) is amended to read as fol-
lows: 
‘‘(c) TECHNIQUES.—Evaluations conducted under this 
section shall utilize appropriate and rigorous methodology 
and research designs, including the use of control groups 
chosen by scientific random assignment methodologies, 
quasi-experimental methods, impact analysis and the use 
of administrative data. The Secretary shall conduct an im-
pact analysis, as described in subsection (a)(4), of the for-
mula grant program under subtitle B not later than 2015, 
and thereafter shall conduct such an analysis not less than 
once every four years.’’; 
(4) in subsection (e) is amended by striking ‘‘the 
Committee on Labor and Human Resources of the 
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Senate’’ and inserting ‘‘the Committee on Health, 
Education, Labor, and Pensions of the Senate’’; and 
(5) by adding at the end, the following: 
‘‘(g) PUBLIC AVAILABILITY.—The results of the evalua-
tions conducted under this section shall be made publicly 
available, including by posting such results on the Depart-
ment’s website.’’. 
Subtitle E—Administration 
SEC. 132. REQUIREMENTS AND RESTRICTIONS. 
Section 181 (29 U.S.C. 2931) is amended— 
(1) in subsection (b)(6), by striking ‘‘, including 
representatives of businesses and of labor organiza-
tions’’; 
(2) in subsection (c)(2)(A), in the matter pre-
ceding clause (i), by striking ‘‘shall’’ and inserting 
‘‘may’’; 
(3) in subsection (e)— 
(A) by striking ‘‘training for’’ and inserting 
‘‘the entry into employment, retention in em-
ployment, or increases in earnings of’’; and 
(B) by striking ‘‘subtitle B’’ and inserting 
‘‘this Act’’; 
(4) 
in 
subsection 
(f)(4), 
by 
striking 
‘‘134(a)(3)(B)’’ and inserting ‘‘134(a)(6)’’; and 
(5) by adding at the end the following: 
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‘‘(g) SALARY AND BONUS LIMITATION.—No funds pro-
vided under this title shall be used by a recipient or sub-
recipient of such funds to pay the salary and bonuses of 
an individual, either as direct costs or indirect costs, at 
a rate in excess of Level II of the Federal Executive Pay 
Schedule (5 U.S.C. 5313). This limitation shall not apply 
to vendors providing goods and services as defined in OMB 
Circular A–133. Where States are recipients of such funds, 
States may establish a lower limit for salaries and bonuses 
of those receiving salaries and bonuses from subrecipients 
of such funds, taking into account factors including the rel-
ative cost-of-living in the State, the compensation levels for 
comparable State or local government employees, and the 
size of the organizations that administer the programs. 
‘‘(h) GENERAL AUTHORITY.— 
‘‘(1) 
IN
GENERAL.—The 
Employment 
and 
Training Administration of the U.S. Department of 
Labor (hereinafter in this Act referred to as the ‘Ad-
ministration’) shall administer all programs author-
ized under title I and III of this Act. The Adminis-
tration shall be headed by an Assistant Secretary ap-
pointed by the President by and with the advice and 
consent of the Senate. Except for titles II and IV, the 
Administration shall be the principal agency, and the 
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Assistant Secretary shall be the principal officer, of 
such Department for carrying out this Act. 
‘‘(2) QUALIFICATIONS.—The Assistant Secretary 
shall be an individual with substantial experience in 
workforce development and in workforce development 
management. The Assistant Secretary shall also, to 
the maximum extent possible, possess knowledge and 
have worked in or with the State or local workforce 
investment system or have been a member of the busi-
ness community. In the performance of the functions 
of the office, the Assistant Secretary shall be directly 
responsible to the Secretary or the Under Secretary as 
designed by the Secretary. The functions of the Assist-
ant Secretary shall not be delegated to any officer not 
directly responsible, both with respect to program op-
eration and administration, to the Assistant Sec-
retary. Any reference in this Act to duties to be car-
ried out by the Assistant Secretary shall be considered 
to be a reference to duties to be carried out by the 
Secretary acting through the Assistant Secretary.’’. 
SEC. 133. PROMPT ALLOCATION OF FUNDS. 
Section 182 (29 U.S.C. 2932) is amended— 
(1) in subsection (c), by striking ‘‘127 or’’; and 
(2) in subsection (e)— 
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(A) by striking ‘‘sections 128 and 133’’ and 
inserting ‘‘section 133’’; and 
(B) by striking ‘‘127 or’’. 
SEC. 134. FISCAL CONTROLS; SANCTIONS. 
Section 184(a)(2) (29 U.S.C. 2934(a)(2)) is amend-
ed— 
(1) by striking ‘‘(A)’’ and all that follows 
through ‘‘Each’’ and inserting ‘‘Each’’; and 
(2) by striking subparagraph (B). 
SEC. 135. REPORTS TO CONGRESS. 
Section 185 (29 U.S.C. 2935) is amended— 
(1) in subsection (c)— 
(A) in paragraph (2), by striking ‘‘and’’ 
after the semicolon; 
(B) in paragraph (3), by striking the period 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(4) shall have the option to submit or dissemi-
nate electronically any reports, records, plans, or any 
other data that are required to be collected or dissemi-
nated under this title.’’; and 
(2) in subsection (e)(2), by inserting ‘‘and the 
Secretary shall submit to the Committee on Edu-
cation and the Workforce of the House of Representa-
tives and the Committee on Health, Education, 
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Labor, and Pensions of the Senate,’’ after ‘‘Sec-
retary,’’. 
SEC. 136. ADMINISTRATIVE PROVISIONS. 
Section 189 (29 U.S.C. 2939) is amended— 
(1) in subsection (g)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) IN GENERAL.—Appropriations for any fis-
cal year for programs and activities carried out 
under this title shall be available for obligation only 
on the basis of a program year. The program year 
shall begin on October 1 in the fiscal year for which 
the appropriation is made.’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘each State’’ and insert-
ing ‘‘each recipient’’; and 
(ii) by striking ‘‘171 or’’; 
(2) in subsection (i)— 
(A) by striking paragraphs (2) and (3); 
(B) by redesignating paragraph (4) as 
paragraph (2); 
(C) by amending paragraph (2)(A), as so 
redesignated— 
(i) by striking ‘‘requirements of sub-
paragraph (B)’’ and all that follows through 
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‘‘any of the statutory or regulatory require-
ments of subtitle B’’ and inserting ‘‘require-
ments of subparagraph (B) or (D), any of 
the statutory or regulatory requirements of 
subtitle B’’; 
(ii) by striking clause (ii); and 
(iii) in clause (i), by striking ‘‘; and’’ 
and inserting a period at the end; and 
(D) by adding at the end the following: 
‘‘(D) EXPEDITED PROCESS FOR EXTENDING 
APPROVED WAIVERS TO ADDITIONAL STATES.— 
In lieu of the requirements of subparagraphs (B) 
and (C), the Secretary may establish an expe-
dited procedure for the purpose of extending to 
additional States the waiver of statutory or regu-
latory requirements that have been approved for 
a State pursuant to a request under subpara-
graph (B). Such procedure shall ensure that the 
extension of such waivers to additional States 
are accompanied by appropriate conditions re-
lating the implementation of such waivers. 
‘‘(E) EXTERNAL
CONDITIONS.—The Sec-
retary shall not require or impose new or addi-
tional requirements, which are not specified 
under this Act, on a State in exchange for pro-
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