126 
(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 
(C) by striking paragraph (2) and insert-
ing the following: 
‘‘(2) FUNDS RESULTING FROM REDUCED AL-
LOTMENTS.—The Secretary shall return to the 
Treasury the amount retained, as a result of a re-
duction in an allotment to a State made under para-
graph (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;
127 
(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 
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 
failure 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 re-
vise such plan’’ and inserting ‘‘corrective ac-
tions under subparagraphs (A) and (B) may, 
not later than 30 days after receiving notice of 
the actions, appeal to the Governor to rescind 
or revise such actions’’; and 
(E) in subparagraph (D) (as so redesig-
nated), by striking ‘‘subparagraph (B)’’ each 
place it appears and inserting ‘‘subparagraph 
(C)’’;
128 
(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’’; 
(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 
subsections: 
‘‘(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 de-
scribed 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 
Governor of a State, a State may establish an incen-
129 
tive system for local boards to implement pay-for- 
performance contract strategies for the delivery of 
employment and training services in the local areas 
served by the local boards. 
‘‘(2) IMPLEMENTATION.—A State that estab-
lishes a pay-for-performance incentive system shall 
reserve not more than 10 percent of the total 
amount allotted to the State under section 132(b)(2) 
for a fiscal year to provide funds to local areas in 
the State whose local boards have implemented a 
pay-for-performance contract strategy. 
‘‘(3) EVALUATIONS.—A State described in 
paragraph (2) shall use funds reserved by the State 
under section 133(a)(1) to evaluate the return on in-
vestment of pay-for-performance contract strategies 
implemented 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.’’.
130 
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 
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’’;