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‘‘(A) to establish a one-stop delivery sys-
tem as described in section 121(e); 
‘‘(B) to provide the core services described 
in paragraph (2) through the one-stop delivery 
system in accordance with such paragraph; 
‘‘(C) to provide the intensive services de-
scribed in paragraph (3) to adults described in 
such paragraph; and 
‘‘(D) to provide training services described 
in paragraph (4) to adults described in such 
paragraph.’’. 
(B) CORE
SERVICES.—Section 134(c)(2) 
(29 U.S.C. 2864(c)(2)) (as redesignated by 
paragraph (3)) is amended— 
(i) by striking ‘‘who are adults or dis-
located workers’’; 
(ii) in subparagraph (A), by striking 
‘‘under this subtitle’’ and inserting ‘‘under 
the one-stop partner programs described in 
section 121(b)’’; 
(iii) by amending subparagraph (D) to 
read as follows: 
‘‘(D) labor exchange services, including—
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‘‘(i) job search and placement assist-
ance, and where appropriate career coun-
seling; 
‘‘(ii) appropriate recruitment services 
for employers; and 
‘‘(iii) reemployment services provided 
to unemployment claimants.’’; 
(iv) in subparagraph (I), by inserting 
‘‘and the administration of the work test 
for the unemployment compensation sys-
tem’’ after ‘‘compensation’’; and 
(v) by amending subparagraph (J) to 
read as follows: 
‘‘(J) assistance in establishing eligibility 
for programs of financial aid assistance for 
training and education programs that are not 
funded under this Act and are available in the 
local area; and’’. 
(C) 
INTENSIVE
SERVICES.—Section 
134(c)(3) (29 U.S.C. 2864(c)(3) (as redesig-
nated by paragraph (3) of this subsection) is 
amended— 
(i) by amending subparagraph (A) to 
read as follows: 
‘‘(A) IN GENERAL.—
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‘‘(i) ELIGIBILITY.—Funds allocated to 
a local area under section 133(b) shall be 
used to provide intensive services for 
adults who— 
‘‘(I) are unemployed and who 
have been determined by the one-stop 
operator to be— 
‘‘(aa) unlikely or unable to 
obtain 
suitable 
employment 
through core services; and 
‘‘(bb) in need of intensive 
services in order to obtain suit-
able employment; or 
‘‘(II) are employed, but who are 
determined by a one-stop operator to 
be in need of intensive services to ob-
tain or retain suitable employment. 
‘‘(ii) 
DEFINITION.—The 
Governor 
shall define the term ‘suitable employment’ 
for purposes of this subparagraph.’’; and 
(ii) in subparagraph (C)— 
(I) in clause (v), by striking ‘‘for 
participants seeking training services 
under paragraph (4)’’; and
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(II) by adding the following 
clauses after clause (vi): 
‘‘(vii) Internships and work experi-
ence. 
‘‘(viii) Literacy activities relating to 
basic work readiness, information and com-
munication technology literacy activities, 
and financial literacy activities. 
‘‘(ix) Out-of-area job search assistance 
and relocation assistance.’’. 
(D) 
TRAINING
SERVICES.—Section 
134(c)(4) (as redesignated by paragraph (3) of 
this subsection) is amended— 
(i) by amending subparagraph (A) to 
read as follows: 
‘‘(A) IN GENERAL.— 
‘‘(i) ELIGIBILITY.—Funds allocated to 
a local area under section 133(b) shall be 
used to provide training services to adults 
who— 
‘‘(I) after an interview, evalua-
tion, or assessment, and case manage-
ment, have been determined by a one- 
stop operator or one-stop partner, as 
appropriate, to—
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‘‘(aa) be unlikely or unable 
to obtain or retain suitable em-
ployment through intensive serv-
ices under paragraph (3)(A); 
‘‘(bb) be in need of training 
services to obtain or retain suit-
able employment; and 
‘‘(cc) have the skills and 
qualifications to successfully par-
ticipate in the selected program 
of training services; 
‘‘(II) select programs of training 
services that are directly linked to the 
employment opportunities in the local 
area involved or in another area in 
which the adults receiving such serv-
ices are willing to commute or relo-
cate; 
‘‘(III) who meet the requirements 
of subparagraph (B); and 
‘‘(IV) who are determined eligible 
in accordance with the priority system 
in effect under subparagraph (E).
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‘‘(ii) 
DEFINITION.—The 
Governor 
shall define the term ‘suitable employment’ 
for purposes of this subparagraph.’’; 
(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) in subparagraph (D)— 
(I) by amending clause (iv) to 
read as follows: 
‘‘(iv) entrepreneurial training, includ-
ing providing information about obtaining 
microcredit loans for the purpose of start-
ing a business, including contact informa-
tion of microcredit lenders operating within 
the local area;’’; 
(II) in clause (viii) by inserting 
‘‘(including English as a Second Lan-
guage)’’ after ‘‘activities’’; and 
(III) by redesignating clause (ix) 
as clause (x) and inserting after 
clause (viii) the following:
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‘‘(ix) training that integrates occupa-
tional skills training and English language 
acquisition;’’; 
(iv) by amending subparagraph (E) to 
read as follows: 
‘‘(E) PRIORITY.— 
‘‘(i) IN GENERAL.—A priority shall be 
given to unemployed individuals for the 
provision of intensive and training services 
under this subsection. 
‘‘(ii) ADDITIONAL
PRIORITY.—If the 
funds in the local area, including the funds 
allocated under section 133(b), for serving 
recipients of public assistance and other 
low-income individuals, including single 
parents, displaced homemakers, and preg-
nant single women, is limited, the priority 
for the provision of intensive and training 
services under this subsection shall include 
such recipients and individuals. 
‘‘(iii) DETERMINATIONS.—The Gov-
ernor and the appropriate local board shall 
direct the one-stop operators in the local 
area with regard to making determinations
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with respect to the priority of service under 
this subparagraph.’’; 
(v) in subparagraph (F), by adding 
the following clause after clause (iii): 
‘‘(iv) ENHANCED INDIVIDUAL TRAIN-
ING
ACCOUNTS.—Each local board may, 
through one-stop centers, assist individuals 
receiving 
individual 
training 
accounts 
through the establishment of such accounts 
that include, in addition to the funds pro-
vided under this paragraph, funds from 
other programs and sources that will assist 
the individual in obtaining training serv-
ices.’’; 
(vi) in subparagraph (G)(iv), by redes-
ignating subclause (IV) as subclause (V) 
and inserting after subclause (III) the fol-
lowing: 
‘‘(IV) Individuals with disabil-
ities.’’; and 
(vii) by adding at the end the fol-
lowing: 
‘‘(H) COMPUTER
TECHNOLOGY.—In pro-
viding training services under subparagraph 
(G), funds allocated to a local area under this
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title may be used to purchase computer tech-
nology for use by an individual who is eligible 
pursuant to subsection (A), only if— 
‘‘(i) such purchase is part of an ongo-
ing training program; and 
‘‘(ii) such purchase is necessary to en-
sure the individual can participate in such 
training program. 
Any purchase of computer technology under 
this subparagraph shall remain the property of 
the one-stop operator.’’. 
(5) PERMISSIBLE ACTIVITIES.—Section 134(d) 
(as redesignated by paragraph (3)) is amended— 
(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) may be used to 
provide, through the one-stop delivery system— 
‘‘(i) customized screening and referral 
of qualified participants in training serv-
ices to employers;
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‘‘(ii) customized employment-related 
services to employers on a fee-for-service 
basis; 
‘‘(iii) customer support 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; 
‘‘(v) activities to improve services to 
local employers, including small employers 
in the local area, and increase linkages be-
tween the local workforce investment sys-
tem and employers; and 
‘‘(vi) activities to facilitate remote ac-
cess to services provided through a one- 
stop delivery system, including facilitating 
access through the use of technology. 
‘‘(B) WORK
SUPPORT
ACTIVITIES
FOR 
LOW-WAGE WORKERS.—
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‘‘(i) IN GENERAL.—Funds allocated to 
a local area under 133(b) may be used to 
provide, through the one-stop delivery sys-
tem and in collaboration with the appro-
priate programs and resources of the one- 
stop partners, work support activities de-
signed to assist low-wage workers in re-
taining and enhancing employment. 
‘‘(ii) ACTIVITIES.—The activities de-
scribed in clause (i) may include assistance 
in accessing financial supports for which 
such workers may be eligible and the provi-
sion of activities available through the one- 
stop delivery system in a manner that en-
hances the opportunities of such workers 
to participate, such as the provision of em-
ployment and training activities during 
nontraditional hours and the provision of 
on-site child care while such activities are 
being provided.’’; and 
(B) by adding after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) INCUMBENT
WORKER
TRAINING
PRO-
GRAMS.—
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‘‘(A) IN GENERAL.—The local board may 
use up to 10 percent of the funds allocated to 
a local area under section 133(b) to carry out 
incumbent worker training programs in accord-
ance with this paragraph. 
‘‘(B) TRAINING ACTIVITIES.—The training 
programs for incumbent workers under this 
paragraph shall be carried out by the local area 
in conjunction with the employers of such 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-
cumbent workers. The Governor shall es-
tablish, or may authorize the local board to 
establish, the required portion of such 
costs, which shall not be less than— 
‘‘(I) 10 percent of the costs, for 
employers with 50 or fewer employees; 
‘‘(II) 25 percent of the costs, for 
employers with more than 50 employ-
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ees but fewer than 100 employees; 
and 
‘‘(III) 50 percent of the costs, for 
employers with 100 or more employ-
ees. 
‘‘(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 requirement pay-
ment of the employer.’’. 
SEC. 113. PERFORMANCE ACCOUNTABILITY SYSTEM. 
(a) STATE PERFORMANCE MEASURES.— 
(1) 
IN
GENERAL.—Section 
136(b)(1) 
(29 
U.S.C. 2871(b)(1)) is amended— 
(A) in subparagraph (A)(i), by striking 
‘‘and the customer satisfaction indicator of per-
formance described in paragraph (2)(B)’’; and 
(B) in subparagraph (A)(ii), by striking 
‘‘paragraph (2)(C)’’ and inserting ‘‘paragraph 
(2)(B)’’. 
(2) INDICATORS
OF
PERFORMANCE.—Section 
136(b)(2) (29 U.S.C. 2871(b)(2)) is amended— 
(A) in subparagraph (A)(i), by striking 
‘‘(except for self-service and information activi-
ties) and (for participants who are eligible
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youth age 19 through 21) for youth activities 
authorized under section 129’’; 
(B) in subparagraph (A)(i)(II), by insert-
ing ‘‘and’’ after the semicolon; 
(C) in subparagraph (A)(i)(III), by strik-
ing ‘‘; and’’ and inserting a period; 
(D) by striking subparagraph (A)(i)(IV); 
(E) by amending subparagraph (A)(ii) to 
read as follows: 
‘‘(ii) CORE INDICATORS FOR ELIGIBLE 
YOUTH.—The core indicators of perform-
ance for youth activities authorized under 
section 129 shall consist of— 
‘‘(I) entry into employment, edu-
cation or advanced training, or mili-
tary service; 
‘‘(II) attainment of secondary 
school diploma, General Educational 
Development credential (GED), or 
other State-recognized equivalent (in-
cluding recognized alternative stand-
ards for individuals with disabilities); 
and 
‘‘(III) 
literacy 
or 
numeracy 
gains.’’;
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(F) by striking subparagraph (B); and 
(G) by redesignating subparagraph (C) as 
subparagraph (B), and by adding at the end of 
such subparagraph (as so redesignated) the fol-
lowing new sentence: ‘‘Such indicators may in-
clude customer satisfaction of employers and 
participants with services received from the 
workforce 
investment 
activities 
authorized 
under this subtitle.’’. 
(3) 
LEVELS
OF
PERFORMANCE.—Section 
136(b)(3)(A) (29 U.S.C. 2871(b)(3)(A)) is amend-
ed— 
(A) in clause (i), by striking ‘‘and the cus-
tomer satisfaction indicator described in para-
graph (2)(B)’’; 
(B) in clause (ii), by striking ‘‘and the cus-
tomer satisfaction indicator of performance, for 
the first 3’’ and inserting ‘‘for the 2’’; 
(C) in clause (iii)— 
(i) in the heading, by striking ‘‘FOR 
FIRST 3 YEARS’’; and 
(ii) by striking ‘‘and the customer sat-
isfaction indicator of performance, for the 
first 3’’ and inserting ‘‘for the 2’’; 
(D) in clause (iv)—
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(i) by striking subclause (I); 
(ii) by redesignating subclauses (II) 
and (III) as subclauses (I) and (II), re-
spectively; and 
(iii) in subclause (I) (as so redesig-
nated)— 
(I) by striking ‘‘taking into ac-
count’’ and inserting ‘‘which shall be 
adjusted based on’’; 
(II) by inserting ‘‘, such as un-
employment rates and job losses or 
gains in particular industries’’ after 
‘‘economic conditions’’; and 
(III) by inserting ‘‘, such as indi-
cators of poor work history, lack of 
work experience, low levels of literacy 
or English proficiency, disability sta-
tus, including the number of veterans 
with disabilities, and welfare depend-
ency’’ after ‘‘program’’; 
(E) by striking clause (v); and 
(F) by redesignating clause (vi) as clause 
(v).
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(4) 
ADDITIONAL
INDICATORS.—Section 
136(b)(3)(B) is amended by striking ‘‘paragraph 
(2)(C)’’ and inserting ‘‘paragraph (2)(B)’’. 
(b) LOCAL
PERFORMANCE
MEASURES.—Section 
136(c) (29 U.S.C 2871(c)) is amended— 
(1) in paragraph (1)(A)(i), by striking ‘‘, and 
the customer satisfaction indicator of performance 
described in subsection (b)(2)(B),’’; 
(2) in paragraph (1)(A)(ii), by striking ‘‘sub-
section 
(b)(2)(C)’’ 
and 
inserting 
‘‘subsection 
(b)(2)(B)’’; and 
(3) by amending paragraph (3) to read as fol-
lows: 
‘‘(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, such as poor 
work history, lack of work experience, low levels of 
literacy or English proficiency, disability status, in-
cluding the number of veterans with disabilities, and 
welfare dependency.’’.
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(c) REPORT.—Section 136(d) (29 U.S.C. 2871(d)) is 
amended— 
(1) in paragraph (1), by striking ‘‘and the cus-
tomer satisfaction indicator’’ in both places that it 
appears; 
(2) in paragraph (2)— 
(A) in subparagraph (E), by striking ‘‘(ex-
cluding participants who received only self-serv-
ice and informational activities); and’’ and in-
serting a semicolon; 
(B) in subparagraph (F), by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(G) the number of participants served 
and the cost per participant.’’; and 
(3) by adding at the end the following: 
‘‘(4) DATA VALIDATION.—In preparing the re-
ports described in this subsection, the States shall 
establish procedures, consistent with guidelines 
issued by the Secretary, to ensure the information 
contained in the report is valid and reliable.’’. 
(d) SANCTIONS
FOR STATE.—Section 136(g) (29 
U.S.C. 2871(g)) is amended— 
(1) in paragraph (1)(A), by striking ‘‘or (B)’’; 
and
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(2) in paragraph (2), by striking ‘‘section 503’’ 
and inserting ‘‘section 136(i)’’. 
(e) SANCTIONS FOR LOCAL AREAS.—Section 136(h) 
(29 U.S.C. 2871(h)) is amended— 
(1) in paragraph (1), by striking ‘‘or (B)’’; and 
(2) by amending paragraph (2)(B) to read as 
follows: 
‘‘(B) APPEAL TO GOVERNOR.—A local area 
that is subject to 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. In such case, the Governor shall make a 
final decision not later than 30 days after the 
receipt of the appeal.’’. 
(f) INCENTIVE GRANTS.—Section 136(i) (29 U.S.C. 
2871(i)) is amended to read as follows: 
‘‘(i) INCENTIVE GRANTS FOR STATES AND LOCAL 
AREAS.— 
‘‘(1) INCENTIVE GRANTS FOR STATES.— 
‘‘(A) IN
GENERAL.—From funds appro-
priated under section 174, the Secretary may 
award grants to States for exemplary perform-
ance in carrying programs under chapters 4 
and 5 of this title. Such awards may be based
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on States meeting or exceeding the performance 
measures established under this section, on the 
performance of the State in serving special pop-
ulations, including the levels of service provided 
and the performance outcomes, and such other 
factors relating to the performance of the State 
under this title as the Secretary determines is 
appropriate. 
‘‘(B) USE OF FUNDS.—The funds awarded 
to a State under this paragraph may be used to 
carry out any activities authorized under chap-
ters 4 and 5 of this title, including demonstra-
tions and innovative programs for special popu-
lations. 
‘‘(2) INCENTIVE GRANTS FOR LOCAL AREAS.— 
‘‘(A) IN GENERAL.—From funds reserved 
under sections 128(a) and 133(a), the Governor 
may award incentive grants to local areas for 
exemplary performance with respect to the 
measures established under this section and 
with the performance of the local area in serv-
ing special populations, including the levels of 
service and the performance outcomes. 
‘‘(B) USE OF FUNDS.—The funds awarded 
to a local area may be used to carry out activi-
102 
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ties authorized for local areas under chapters 4 
and 5 of this title, and such demonstration or 
other innovative programs to serve special pop-
ulations as may be approved by the Governor.’’. 
(g) USE OF CORE INDICATORS FOR OTHER PRO-
GRAMS.—Section 136 (29 U.S.C. 2871) is further amend-
ed by adding at the end the following subsection: 
‘‘(j) USE OF CORE INDICATORS FOR OTHER PRO-
GRAMS.—In addition to the programs carried out under 
chapters 4 and 5, and consistent with the requirements 
of the applicable authorizing laws, the Secretary shall use 
the core indicators of performance described in subsection 
(b)(2)(A) to assess the effectiveness of the programs de-
scribed under section 121(b)(1)(B) that are carried out 
by the Secretary.’’. 
(h) REPEAL OF DEFINITIONS.—Sections 502 and 
503 (and the items related to such sections in the table 
of contents) are repealed. 
SEC. 114. AUTHORIZATION OF APPROPRIATIONS. 
(a) YOUTH ACTIVITIES.—Section 137(a) (29 U.S.C. 
2872(a)) is amended by striking ‘‘such sums as may be 
necessary for each of fiscal years 1999 through 2003’’ and 
inserting ‘‘$1,250,000,000 for fiscal year 2006 and such 
sums as may be necessary for each of fiscal years 2007 
through 2011’’.
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(b) ADULT EMPLOYMENT AND TRAINING ACTIVI-
TIES.—Section 137(b) (29 U.S.C. 2872(b)) is amended by 
striking ‘‘section 132(a)(1), such sums as may be nec-
essary for each of fiscal years 1999 through 2003’’ and 
inserting ‘‘section 132(a), $3,140,000,000 for fiscal year 
2006 and such sums as may be necessary for each of fiscal 
years 2007 through 2011’’. 
(c) 
DISLOCATED
WORKER
EMPLOYMENT
AND 
TRAINING ACTIVITIES.—Section 137 is further amended 
by striking subsection (c). 
SEC. 115. JOB CORPS. 
(a) INDUSTRY
COUNCILS.—Section 154(b) (29 
U.S.C. 2894(b)) is amended— 
(1) in paragraph (1)(A), by striking ‘‘local and 
distant’’; and 
(2) by adding after paragraph (2) the following: 
‘‘(3) EMPLOYERS OUTSIDE OF LOCAL AREAS.— 
The industry council may include, or otherwise pro-
vide for consultation with, employers from outside 
the local area who are likely to hire a significant 
number of enrollees from the Job Corps center.’’. 
(b) INDICATORS OF PERFORMANCE AND ADDITIONAL 
INFORMATION.—Section 159(c) (29 U.S.C. 2893(c)) is 
amended—
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(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) CORE INDICATORS.—The Secretary shall 
annually establish expected levels of performance for 
Job Corps centers and the Job Corps program relat-
ing to each of the core indicators for youth identified 
in section 136(b)(2)(A)(ii).’’; and 
(2) in paragraph (2), by striking ‘‘measures’’ 
each place it appears and inserting ‘‘indicators’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
161 (29 U.S.C. 2901) is amended by striking ‘‘1999 
through 2003’’ and inserting ‘‘2006 through 2011’’. 
SEC. 116. NATIVE AMERICAN PROGRAMS. 
(a) ADVISORY COUNCIL.—Section 166(h)(4)(C) (29 
U.S.C. 2911(h)(4)(C)) is amended to read as follows: 
‘‘(C) DUTIES.—The Council shall advise 
the Secretary on the operation and administra-
tion of the programs assisted under this sec-
tion.’’. 
(b) ASSISTANCE
TO AMERICAN SAMOANS
IN HA-
WAII.—Section 166 (29 U.S.C. 2911) is further amended 
by striking subsection (j).
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SEC. 117. MIGRANT AND SEASONAL FARMWORKER PRO-
GRAMS. 
Section 167(d) is amended by inserting ‘‘(including 
permanent housing)’’ after ‘‘housing’’. 
SEC. 118. VETERANS’ WORKFORCE INVESTMENT PRO-
GRAMS. 
Section 168(a)(3)(C) (29 U.S.C. 2913 (a)(3)(C)) is 
amended by striking ‘‘section 134(c)’’ and inserting ‘‘sec-
tion 121(e)’’. 
SEC. 119. YOUTH CHALLENGE GRANTS. 
(a) IN GENERAL.—Section 169 (29 U.S.C. 2914) is 
amended to read as follows: 
‘‘SEC. 169. YOUTH CHALLENGE GRANTS. 
‘‘(a) IN GENERAL.—Of the amounts reserved by the 
Secretary under section 127(a)(1)(A) for a fiscal year— 
‘‘(1) the Secretary shall use not less than 80 
percent to award competitive grants under sub-
section (b); and 
‘‘(2) the Secretary may use not more than 20 
percent to award discretionary grants under sub-
section (c). 
‘‘(b) COMPETITIVE GRANTS TO STATES AND LOCAL 
AREAS.— 
‘‘(1) ESTABLISHMENT.—From the funds de-
scribed in subsection (a)(1), the Secretary shall 
award competitive grants to eligible entities to carry
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out activities authorized under this section to assist 
eligible youth in acquiring the skills, credentials and 
employment experience necessary to succeed in the 
labor market. 
‘‘(2) ELIGIBLE ENTITIES.—Grants under this 
subsection may be awarded to States, local boards, 
recipients of grants under section 166 (relating to 
Native American programs), and public or private 
entities (including consortia of such entities) apply-
ing in conjunction with local boards. 
‘‘(3) GRANT
PERIOD.—The Secretary may 
make a grant under this section for a period of 1 
year and may renew the grants for each of the 4 
succeeding years. 
‘‘(4) AUTHORITY
TO
REQUIRE
MATCH.—The 
Secretary may require that grantees under this sub-
section provide a non-Federal share of the cost of 
activities carried out under a grant awarded under 
this subsection. 
‘‘(5) PARTICIPANT
ELIGIBILITY.—Youth ages 
14 through 19 as of the time the eligibility deter-
mination is made may be eligible to participate in 
activities provided under this subsection. 
‘‘(6) USE OF FUNDS.—Funds under this sub-
section may be used for activities that are designed
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to assist youth in acquiring the skills, credentials 
and employment experience that are necessary to 
succeed in the labor market, including the activities 
identified in section 129. The activities may include 
activities such as— 
‘‘(A) training and internships for out-of- 
school youth in sectors of the economy experi-
encing or projected to experience high growth; 
‘‘(B) after-school dropout prevention activi-
ties for in-school youth; 
‘‘(C) activities designed to assist special 
youth populations, such as court-involved youth 
and youth with disabilities; and 
‘‘(D) activities combining remediation of 
academic skills, work readiness training, and 
work experience, and including linkages to post-
secondary education, apprenticeships, and ca-
reer-ladder employment. 
‘‘(7) APPLICATIONS.—To be eligible to receive a 
grant under this subsection, an eligible entity shall 
submit an application to the Secretary at such time, 
in such manner, and containing such information as 
the Secretary may require, including—
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‘‘(A) a description of the activities the eli-
gible entity will provide to eligible youth under 
this subsection; 
‘‘(B) a description of the programs of dem-
onstrated effectiveness on which the provision 
of the activities under subparagraph (A) are 
based, and a description of how such activities 
will expand the base of knowledge relating to 
the provision of activities for youth; 
‘‘(C) a description of the private and pub-
lic, and local and State resources that will be le-
veraged to provide the activities described under 
subparagraph (A) in addition to the funds pro-
vided under this subsection; and 
‘‘(D) the levels of performance the eligible 
entity expects to achieve with respect to the in-
dicators of performance for youth specified in 
section 136(b)(2)(A)(ii). 
‘‘(8) FACTORS
FOR
AWARD.—In awarding 
grants under this subsection the Secretary may con-
sider the quality of the proposed project, the goals 
to be achieved, the likelihood of successful implemen-
tation, the extent to which the project is based on 
proven strategies or the extent to which the project 
will expand the knowledge base on activities for
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youth, and the additional State, local or private re-
sources that will be provided. 
‘‘(9) EVALUATION.—The Secretary may reserve 
up to 5 percent of the funds described in sub-
section(a)(1) to provide technical assistance to, and 
conduct evaluations of the projects funded under 
this subsection (using appropriate techniques as de-
scribed in section 172(c)). 
‘‘(c) DISCRETIONARY GRANTS FOR YOUTH ACTIVI-
TIES.— 
‘‘(1) IN GENERAL.—From the funds described 
in subsection(a)(2), the Secretary may award grants 
to eligible entities to provide activities that will as-
sist youth in preparing for, and entering and retain-
ing, employment. 
‘‘(2) ELIGIBLE ENTITIES.—Grants under this 
subsection may be awarded to public or private enti-
ties that the Secretary determines would effectively 
carry out activities relating to youth under this sub-
section. 
‘‘(3) PARTICIPANT
ELIGIBILITY.—Youth ages 
14 through 19 at the time the eligibility determina-
tion is made may be eligible to participate in activi-
ties under this subsection.
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‘‘(4) USE OF FUNDS.—Funds provided under 
this subsection may be used for activities that will 
assist youth in preparing for, and entering and re-
taining, employment, including the activities de-
scribed in section 129 for out-of-school youth, activi-
ties designed to assist in-school youth to stay in 
school and gain work experience, and such other ac-
tivities that the Secretary determines are appro-
priate. 
‘‘(5) APPLICATIONS.—To be eligible to receive a 
grant under this subsection, an eligible entity shall 
submit an application to the Secretary at such time, 
in such manner, and containing such information as 
the Secretary may require. 
‘‘(6) ADDITIONAL
REQUIREMENTS.—The Sec-
retary may require the provision of a non-Federal 
share for projects funded under this subsection and 
may require participation of grantees in evaluations 
of such projects, including evaluations using the 
techniques as described in section 172(c).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) is amended by amending the item related 
to section 169 to read as follows: 
‘‘Sec. 169. Youth challenge grants.’’. 
SEC. 120. TECHNICAL ASSISTANCE. 
Section 170 (29 U.S.C. 2915) is amended—
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(1) by striking subsection (b); 
(2) by striking 
‘‘(a) GENERAL TECHNICAL ASSISTANCE.—’’; 
(3) by redesignating paragraphs (1), (2), and 
(3) as subsections (a), (b), and (c) respectively, and 
moving such subsections 2 ems to the left; 
(4) in subsection (a) (as redesignated by para-
graph (3))— 
(A) by inserting ‘‘the training of staff pro-
viding rapid response services, the training of 
other staff of recipients of funds under this 
title, peer review activities under this title, as-
sistance regarding accounting and program op-
eration 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 Job Training Improvement Act of 
2005’’; and 
(5) by inserting, after subsection (c) (as redes-
ignated by paragraph (3)), the following:
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‘‘(d) BEST PRACTICES COORDINATION.—The Sec-
retary shall establish a system whereby States may share 
information regarding best practices with regard to the 
operation of workforce investment activities under this 
Act.’’. 
SEC. 121. DEMONSTRATION, PILOT, MULTISERVICE, RE-
SEARCH AND MULTI-STATE PROJECTS. 
(a) DEMONSTRATION AND PILOT PROJECTS.—Sec-
tion 171(b) (29 U.S.C. 2916(b)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘Under a’’ and inserting 
‘‘Consistent with the priorities specified in the’’; 
(B) 
by 
amending 
subparagraphs 
(A) 
through (D) to read as follows: 
‘‘(A) projects that assist national employ-
ers in connecting with the workforce investment 
system established under this title in order to 
facilitate the recruitment and employment of 
needed workers and to provide information to 
such system on skills and occupations in de-
mand; 
‘‘(B) projects that promote the develop-
ment of systems that will improve the effective-
ness and efficiency of programs carried out 
under this title;
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‘‘(C) projects that focus on opportunities 
for employment in industries and sectors of in-
dustries that are experiencing or are likely to 
experience high rates of growth, including those 
relating to information technology; 
‘‘(D) projects carried out by States and 
local areas to test innovative approaches to de-
livering employment-related services;’’; 
(C) by striking subparagraph (E); 
(D) by redesignating subparagraphs (F) 
and (G) as subparagraphs (E) and (F), respec-
tively; 
(E) in subparagraph (F) (as so redesig-
nated, by striking ‘‘; and’’ and inserting a semi-
colon; 
(F) by inserting after subparagraph (F) 
(as so redesignated) the following: 
‘‘(G) projects that provide retention grants 
to qualified job training programs upon place-
ment or retention of a low-income individual 
trained by that program in employment with a 
single employer for a period of 1 year, provided 
that such employment is providing to the low- 
income individual an income not less than twice 
the poverty line for that individual;’’;
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(G) by amending subparagraph (H) to 
read as follows: 
‘‘(H) projects that focus on opportunities 
for employment in industries and sectors of in-
dustries that are being transformed by tech-
nology and innovation requiring new knowledge 
or skill sets for workers, including advanced 
manufacturing; and’’; and 
(H) by adding at the end the following: 
‘‘(I) projects carried out by States and 
local areas to assist adults or out of school 
youth in starting a small business, including 
training and assistance in business or financial 
management or in developing other skills nec-
essary to operate a business.’’; and 
(2) in paragraph (2)— 
(A) by striking subparagraph (B); and 
(B) by redesignating subparagraph (C) as 
subparagraph (B). 
(b) 
MULTISERVICE
PROJECTS.—Section 
171(c)(2)(B) (29 U.S.C. 2916(c)(2)(B)) is amended to 
read as follows: 
‘‘(B) NET
IMPACT
STUDIES
AND
RE-
PORTS.—The Secretary shall conduct studies to 
determine the net impacts of programs, serv-
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ices, and activities carried out under this title. 
The Secretary shall prepare and disseminate to 
Congress and the public reports containing the 
results of such studies.’’. 
SEC. 122. COMMUNITY-BASED JOB TRAINING. 
Section 171(d) of the Workforce Investment Act of 
1998 is amended to read as follows: 
‘‘(d) COMMUNITY-BASED JOB TRAINING.— 
‘‘(1) DEMONSTRATION
PROJECT.—In addition 
to the demonstration projects under subsection (b), 
the Secretary may establish and implement a na-
tional demonstration project designed to develop 
local solutions to the workforce challenges facing 
high-growth, high-skill industries with labor short-
ages, and increase opportunities for workers to gain 
access to employment in high-growth, high-demand 
occupations by promoting the establishment of part-
nerships among education entities, the workforce in-
vestment system, and businesses in high-growth, 
high-skill industries. 
‘‘(2) GRANTS.—In carrying out the demonstra-
tion project under this subsection, the Secretary 
shall award competitive grants, in accordance with 
generally applicable Federal requirements, to eligible
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entities to carry out activities authorized under this 
subsection. 
‘‘(3) DEFINITIONS.— 
‘‘(A) ELIGIBLE
ENTITY.—In this sub-
section, the term ‘eligible entity’ means a com-
munity college or consortium of community col-
leges that shall work in conjunction with— 
‘‘(i) the local workforce investment 
system; and 
‘‘(ii) business or businesses in a quali-
fied industry or an industry association in 
a qualified industry. 
‘‘(B) QUALIFIED INDUSTRY.—In this sub-
section, the term ‘qualified industry’ means an 
industry or economic sector that is projected to 
experience significant growth, such as an indus-
try and economic sector that— 
‘‘(i) is projected to add substantial 
numbers of new jobs to the economy; 
‘‘(ii) has significant impact on the 
economy; 
‘‘(iii) impacts the growth of other in-
dustries and economic sectors;
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‘‘(iv) is being transformed by tech-
nology 
and 
innovation 
requiring 
new 
knowledge or skill sets for workers; 
‘‘(v) is a new or emerging industry or 
economic sector that is projected to grow; 
or 
‘‘(vi) has high-skilled occupations and 
significant labor shortages in the local 
area. 
‘‘(C) COMMUNITY COLLEGE.—As used in 
this subsection, the term ‘community college’ 
means an institution of higher education, as de-
fined in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001), that provides 
not less than a 2-year program that is accept-
able for full credit toward a bachelor’s degree, 
or is a tribally controlled college or university. 
‘‘(4) AUTHORITY
TO
REQUIRE
NON-FEDERAL 
SHARE.—The Secretary may require that recipients 
of grants under this subsection provide a non-Fed-
eral share, from either cash or noncash resources, of 
the costs of activities carried out under a grant 
awarded under this subsection. 
‘‘(5) USE OF FUNDS.—Grants awarded under 
this subsection may be used for—
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‘‘(A) the development, by a community col-
lege, in consultation with representatives of 
qualified industries, of rigorous training and 
education programs related to employment in a 
qualified industry identified in the eligible enti-
ty’s application; 
‘‘(B) training of adults and dislocated 
workers in the skills and competencies needed 
to obtain or upgrade employment in a qualified 
industry identified in the eligible entity’s appli-
cation; 
‘‘(C) disseminating to adults and dis-
located workers, through the one-stop delivery 
system, information on high-growth, high-de-
mand occupations in qualified industries; 
‘‘(D) placing, through the one-stop delivery 
system, trained individuals into employment in 
qualified industries; and 
‘‘(E) increasing the integration of commu-
nity colleges with activities of businesses and 
the one-stop delivery system to meet the train-
ing needs for qualified industries. 
‘‘(6) APPLICATIONS.—To be eligible to receive a 
grant under this subsection, an eligible entity shall 
submit an application to the Secretary at such time,
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in such manner, and containing such information as 
the Secretary may require, including— 
‘‘(A) a description of the community col-
lege that will offer training under the grant; 
‘‘(B) an economic analysis of the local 
labor market to identify high-growth, high-de-
mand industries and identify the workforce 
issues faced by those industries; 
‘‘(C) a description of the qualified industry 
for which training will occur and the availability 
of competencies on which training will be based; 
‘‘(D) an assurance that the application was 
developed in consultation with the local board 
or boards in the area or areas where the pro-
posed grant will be used; 
‘‘(E) performance outcomes for the grant, 
including expected number of individuals to be 
trained in a qualified industry, the employment 
and retention rates for such individuals in a 
qualified industry, and earnings increases for 
such individuals; 
‘‘(F) a description of how the activities 
funded by the proposed grant will be coordi-
nated with activities provided through the one-
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stop delivery system in the local area or areas; 
and 
‘‘(G) a description of any local or private 
resources that will support the activities carried 
out under this subsection and allow the entity 
to carry out and expand such activities after 
the expiration of the grant. 
‘‘(7) FACTORS FOR AWARD OF GRANT.— 
‘‘(A) IN
GENERAL.—In awarding grants 
under this subsection the Secretary shall con-
sider— 
‘‘(i) the extent of public and private 
collaboration, including existing partner-
ships among industries, community col-
leges, and the public workforce investment 
system; 
‘‘(ii) the extent to which the grant will 
provide job seekers with employment op-
portunities in high-growth, high-demand 
occupations; 
‘‘(iii) the extent to which the grant 
will expand the local one-stop delivery sys-
tem’s capacity to be demand-driven and re-
sponsive to local economic needs;
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‘‘(iv) the extent to which local busi-
nesses commit to hire or retain individuals 
who receive training through the grant; 
and 
‘‘(v) the extent to which the eligible 
entity commits to make any newly devel-
oped products, such as competencies or 
training curriculum, available for distribu-
tion nationally. 
‘‘(B) LEVERAGING
OF
RESOURCES.—In 
awarding grants under this subsection, the Sec-
retary shall also consider— 
‘‘(i) the extent to which local or pri-
vate resources, in addition to the funds 
provided under this subsection, will be 
made available to support the activities 
carried out under this subsection; and 
‘‘(ii) the ability of an eligible entity to 
continue to carry out and expand such ac-
tivities after the expiration of the grant. 
‘‘(C) 
DISTRIBUTION
OF
GRANTS.—In 
awarding grants under this subsection the Sec-
retary shall ensure an equitable distribution of 
such grants across geographically diverse areas.
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‘‘(8) PERFORMANCE
ACCOUNTABILITY
AND 
EVALUATION.— 
‘‘(A) PERFORMANCE
ACCOUNTABILITY.— 
The Secretary shall require an eligible entity 
that receives a grant under this subsection to 
report to the Secretary on the employment out-
comes obtained by individuals receiving training 
under this subsection using the indicators of 
performance identified in the eligible entity’s 
grant application. 
‘‘(B) EVALUATION.—The Secretary may 
require that an eligible entity that receives a 
grant under this subsection participate in an 
evaluation of activities carried out under this 
subsection, including an evaluation using the 
techniques described in section 172(c).’’. 
SEC. 123. PERSONAL REEMPLOYMENT ACCOUNTS. 
Section 171 of the Workforce Investment Act of 1998 
is further amended by adding at the end the following: 
‘‘(e) PERSONAL REEMPLOYMENT ACCOUNTS.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘State’ means each of the several States of the 
United States, the District of Columbia, the Com-
monwealth of Puerto Rico, and the United States 
Virgin Islands.
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‘‘(2) DEMONSTRATION
PROJECT.—In addition 
to the demonstration projects under subsection (b), 
the Secretary may establish and implement a na-
tional demonstration project designed to analyze and 
provide data on workforce training programs that 
accelerate the reemployment of unemployed individ-
uals, promote the retention in employment of such 
individuals, and provide such individuals with en-
hanced flexibility, choice, and control in obtaining 
intensive reemployment, training, and supportive 
services. 
‘‘(3) GRANTS.— 
‘‘(A) IN GENERAL.—In carrying out the 
demonstration project, the Secretary shall make 
grants, on a competitive basis, to eligible enti-
ties to provide personal reemployment accounts 
to eligible individuals. In awarding grants under 
this subsection the Secretary shall take into 
consideration awarding grants to eligible enti-
ties from diverse geographic areas, including 
rural areas. 
‘‘(B) DURATION.—The Secretary shall 
make the grants for periods of not less than 2 
years and may renew the grant for each of the 
succeeding 3 years.