127
clining employment, or no longer 
provides any employment, in the 
local labor market during the 2-
year period ending on the date of 
the determination of eligibility of 
the individual under this sub-
paragraph. 
‘‘(iv) NO INDIVIDUAL ENTITLEMENT.—
Nothing in this subsection shall be construed 
to entitle any individual to receive a per-
sonal reemployment account. 
‘‘(D) LIMITATIONS.—
‘‘(i) 
INFORMATION
AND
ATTESTA-
TION.—Prior to the establishment of a per-
sonal reemployment account for an eligible 
individual, the eligible entity receiving a 
grant, through the one-stop delivery system 
in the participating local area or areas, 
shall ensure that the individual—
‘‘(I) is informed of the require-
ments applicable to the personal reem-
ployment account, including the allow-
able uses of funds from the account, the 
limitations on access to services de-
scribed in paragraph (7)(A)(iii) and a
128
description of such services, and the 
conditions for receiving a reemploy-
ment bonus; 
‘‘(II) has the option to develop a 
personal reemployment plan which will 
identify the employment goals and ap-
propriate combination of services se-
lected by the individual to achieve the 
employment goals; and 
‘‘(III) signs an attestation that 
the individual has been given the op-
tion to develop a personal reemploy-
ment plan in accordance with sub-
clause (II), will comply with the re-
quirements under this subsection relat-
ing to the personal reemployment ac-
counts, and will reimburse the account 
or, if the account has been terminated, 
the grant awarded under this sub-
section, for any amounts expended 
from the account that are not allow-
able. 
‘‘(ii) PERIODIC INTERVIEWS.—If a re-
cipient exhausts his or her rights to any un-
employment compensation, and the recipi-
129
ent has a remaining balance in his or her 
personal reemployment account, the one-
stop delivery system shall conduct periodic 
interviews with the recipient to assist the 
recipient in meeting his or her individual 
employment goals. 
‘‘(iii) USE OF PERSONAL REEMPLOY-
MENT
ACCOUNTS.—The eligible entity re-
ceiving a grant shall ensure that eligible in-
dividuals receiving a personal reemploy-
ment account use the account in accordance 
with paragraph (7). 
‘‘(6) APPLICATION FOR GRANTS.—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 in-
formation as the Secretary may require, including—
‘‘(A) if the eligible entity is a State—
‘‘(i) assurance that the application was 
developed in conjunction with the local 
board or boards and chief elected officials 
where the personal reemployment accounts 
shall be made available; and 
‘‘(ii) a description of the methods and 
procedures for providing funds to local
130
areas where the personal reemployment ac-
counts shall be made available; 
‘‘(B) a description of the criteria and meth-
ods to be used for determining eligibility for the 
personal 
reemployment 
account, 
including 
whether the eligible entity intends to include the 
optional categories described in paragraph 
(5)(C)(iii), and the additional criteria and pri-
ority for service that the eligible entity intends 
to apply, if any, pursuant to paragraph 
(5)(C)(ii)(II); 
‘‘(C) a description of the methods or proce-
dures to be used to provide eligible individuals 
information relating to services and providers; 
‘‘(D) a description of safeguards to ensure 
that funds from the personal reemployment ac-
counts are used for purposes authorized under 
this subsection and to ensure the quality and in-
tegrity of services and providers, consistent with 
the purpose of providing eligible individuals 
with enhanced flexibility, choice, and control in 
obtaining intensive reemployment, training, and 
supportive services; 
‘‘(E) a description of how the eligible entity 
will coordinate the activities carried out under
131
this subsection with the employment and train-
ing activities carried out under section 134 and 
other activities carried out by local boards 
through the one-stop delivery system in the State 
or local area; and 
‘‘(F) an assurance that the eligible entity 
will comply with any evaluation and reporting 
requirements the Secretary may require. 
‘‘(7) USE
OF
PERSONAL
REEMPLOYMENT
AC-
COUNTS.—
‘‘(A) ALLOWABLE ACTIVITIES.—
‘‘(i) IN GENERAL.—Subject to the re-
quirements contained in clauses (ii) and 
(iii), a recipient of a personal reemploy-
ment account may use amounts in a per-
sonal reemployment account to purchase 1 
or more of the following: 
‘‘(I) Intensive services, including 
those type of services specified in sec-
tion 134(d)(3)(C). 
‘‘(II) Training services, including 
those types of services specified in sec-
tion 134(d)(4)(D). 
‘‘(III) Supportive services, except 
for needs related payments.
132
‘‘(ii) DELIVERY
OF
SERVICES.—The 
following requirements relating to delivery 
of services shall apply to the grants under 
this subsection: 
‘‘(I) Recipients may use funds 
from the personal reemployment ac-
count to purchase the services described 
in clause (i) through the one-stop deliv-
ery system on a fee-for-service basis, or 
through other providers, consistent 
with the safeguards described in para-
graph (6)(D). 
‘‘(II) The eligible entity, through 
the one-stop delivery system in the par-
ticipating local area, may pay costs 
for such services directly on behalf of 
the recipient, through a voucher sys-
tem, or by reimbursement to the recipi-
ent upon receipt of appropriate cost 
documentation. 
‘‘(III) 
Each 
eligible 
entity, 
through the one-stop delivery system in 
the participating local area, shall 
make available to recipients informa-
tion on training providers specified in
133
section 134(d)(4)(F)(ii), information 
available to the one-stop delivery sys-
tem on providers of the intensive and 
supportive services described in clause 
(i), and information relating to occu-
pations in demand in the local area. 
‘‘(iii) 
LIMITATIONS.—The 
following 
limitations shall apply with respect to per-
sonal reemployment accounts under this 
subsection: 
‘‘(I) Amounts in a personal reem-
ployment account may be used for up 
to 1 year from the date of the establish-
ment of the account. 
‘‘(II) Each recipient shall submit 
cost documentation as required by the 
one-stop delivery system. 
‘‘(III) For the 1-year period fol-
lowing the establishment of the ac-
count, recipients may not receive in-
tensive, supportive, or training services 
funded under this title except on a fee-
for-services basis as specified in clause 
(ii)(I).
134
‘‘(IV) Amounts in a personal re-
employment account shall be non-
transferable. 
‘‘(B) REEMPLOYMENT BONUS.—
‘‘(i) IN
GENERAL.—Subject to clause 
(ii)—
‘‘(I) if a recipient determined eli-
gible under paragraph (5)(C)(ii) ob-
tains full-time employment before the 
13th week of unemployment for which 
unemployment compensation is paid, 
the balance of his or her personal reem-
ployment account shall be provided di-
rectly to the recipient in cash; and 
‘‘(II) if a recipient determined eli-
gible under paragraph (5)(C)(iii) ob-
tains full-time employment before the 
end of the 13th week after the date on 
which the account is established, the 
balance of his or her personal reem-
ployment account shall be provided di-
rectly to the recipient in cash. 
‘‘(ii) 
LIMITATIONS.—The 
following 
limitations shall apply with respect to a re-
cipient described in clause (i):
135
‘‘(I) 60 percent of the remaining 
personal reemployment account bal-
ance shall be paid to the recipient at 
the time of employment. 
‘‘(II) 40 percent of the remaining 
personal reemployment account shall 
be paid to the recipient after 26 weeks 
of employment retention. 
‘‘(iii) EXCEPTION REGARDING SUBSE-
QUENT
EMPLOYMENT.—If a recipient de-
scribed in clause (i) subsequently becomes 
unemployed due to a lack of work after re-
ceiving the portion of the reemployment 
bonus specified under clause (ii)(I), the in-
dividual may use the amount remaining in 
the personal reemployment account for the 
purposes described in subparagraph (A) but 
may not be eligible for additional cash pay-
ments under this subparagraph. 
‘‘(8) PROGRAM
INFORMATION
AND
EVALUA-
TION.—
‘‘(A) INFORMATION.—The Secretary may 
require from eligible entities the collection and 
reporting on such financial, performance, and 
other program-related information as the Sec-
136
retary determines is appropriate to carry out 
this subsection, including the evaluation de-
scribed in subparagraph (B). 
‘‘(B) EVALUATION.—
‘‘(i) IN GENERAL.—The Secretary, pur-
suant to the authority provided under sec-
tion 172, shall, directly or through grants, 
contracts, or cooperative agreement with ap-
propriate entities, conduct an evaluation of 
the activities carried out under any grants 
awarded under this subsection. 
‘‘(ii) REPORT.—The report to Congress 
under section 172(e) relating to the results 
of the evaluations required under section 
172 shall include the recommendation of the 
Secretary with respect to the use of personal 
reemployment account as a mechanism to 
assist individuals in obtaining and retain-
ing employment.’’. 
SEC. 124. TRAINING FOR REALTIME WRITERS. 
Section 171 of the Workforce Investment Act of 1998 
is further amended by adding at the end the following: 
‘‘(f) TRAINING FOR REALTIME WRITERS.—
‘‘(1) IN
GENERAL.—The Secretary may make 
competitive grants to eligible entities under para-
137
graph (2)(A) to promote training and placement of 
individuals as realtime writers in order to meet the 
requirements for closed captioning of video program-
ming set forth in section 723 of the Communications 
Act of 1934 (47 U.S.C. 613) and the rules prescribed 
thereunder. 
‘‘(2) LIMITATIONS.—
‘‘(A) ELIGIBLE ENTITIES.—For purposes of 
this subsection, an eligible entity is a court re-
porting or realtime writing training program 
that— 
‘‘(i) can document and demonstrate to 
the Secretary that it meets appropriate 
standards of educational and financial ac-
countability, with a curriculum capable of 
training realtime writers, qualified to pro-
vide captioning services and includes ar-
rangements to assist in the placement of 
such individuals in employment as realtime 
writers; and 
‘‘(ii) is and entity that— 
‘‘(I) is an eligible provider of 
training services under section 122; or 
‘‘(II) is accredited by an accred-
iting agency recognized by the Depart-
138
ment of Education; and participates in 
student aid programs under title IV of 
the Higher Education Act of 1965 (20 
U.S.C. 1070 et seq.). 
‘‘(B) PRIORITY IN GRANTS.—In determining 
whether to award grants under this section, the 
Secretary shall give priority to eligible entities 
that— 
‘‘(i) demonstrate the greatest ability to 
increase their capacity to train realtime 
writers; 
‘‘(ii) demonstrate the most promising 
collaboration with local workforce invest-
ment boards, local educational institutions, 
businesses, labor organizations, or other 
community-based organization having the 
potential to train or provide job placement 
assistance to realtime writers; and 
‘‘(iii) propose the most promising and 
innovative approaches for initiating or ex-
panding training or job placement assist-
ance efforts for realtime writers. 
‘‘(C) DURATION OF GRANT.—A grant under 
this subsection shall be for a period of 2 years.
139
‘‘(D) MAXIMUM AMOUNT OF GRANT.—The 
amount of a grant provided under paragraph (1) 
to an entity eligible may not exceed $1,500,000. 
‘‘(3) APPLICATION.—To receive a grant under 
paragraph (1), an eligible entity shall submit an ap-
plication to the Secretary at such time and in such 
manner as the Secretary may require. The applica-
tion shall include— 
‘‘(A) a description of the training and as-
sistance to be funded using the grant amount, 
including how such training and assistance will 
increase the number of realtime writers; 
‘‘(B) a description of performance measures 
to be utilized to evaluate the progress of individ-
uals receiving such training and assistance in 
matters relating to enrollment, completion of 
training, and job placement and retention; 
‘‘(C) a description of the manner in which 
the eligible entity intends to continue providing 
the training and assistance to be funded by the 
grant after the end of the grant period, including 
any partnerships or arrangements established for 
that purpose; 
‘‘(D) a description of how the eligible entity 
will work with local workforce investment boards
140
to ensure that training and assistance to be 
funded with the grant will further local work-
force goals, including the creation of educational 
opportunities for individuals who are from eco-
nomically disadvantaged backgrounds or are dis-
located workers; and 
‘‘(E) such other information as the Sec-
retary may require. 
‘‘(4) USE OF FUNDS.—
‘‘(A) IN GENERAL.—An eligible entity re-
ceiving a grant under paragraph (1) shall use 
the grant amount for purposes relating to the re-
cruitment, training, assistance, and job place-
ment of individuals (including individuals who 
have completed a court reporting training pro-
gram) as realtime writers, including—
‘‘(i) recruitment activities; 
‘‘(ii) the provision of training grants 
to individuals for training in realtime writ-
ing; 
‘‘(iii) distance learning; 
‘‘(iv) design and development of cur-
riculum to more effectively train realtime 
writing skills and education in the knowl-
141
edge bases necessary for the delivery of high 
quality closed captioning services; 
‘‘(v) assistance in job placement for 
upcoming and recent graduates with all 
types of captioning employers; and 
‘‘(vi) encouragement of individuals 
with disabilities to pursue a career in 
realtime writing. 
‘‘(B) ADMINISTRATIVE COSTS.—The recipi-
ent of a grant under paragraph (1) may not use 
more than 5 percent of the grant amount to pay 
administrative costs associated with activities 
funded by the grant. 
‘‘(5) REPORTS.—Each eligible entity receiving a 
grant under paragraph (1) shall submit to the Sec-
retary, at the end of each year of the grant period, 
a report which shall include—
‘‘(A) a description of the use of grant 
amounts by the entity during such year; 
‘‘(B) an assessment, utilizing the perform-
ance measures submitted by the entity in the ap-
plication for the grant under paragraph (2)(D), 
of the effectiveness of activities carried out using 
such funds in increasing the number of realtime 
writers; and
142
‘‘(C) a description of the best practices iden-
tified by the entity as a result of the grant for 
increasing the number of individuals who are 
trained, employed, and retained in employment 
as realtime writers.’’. 
SEC. 125. BUSINESS PARTNERSHIP GRANTS. 
Section 171 (29 U.S.C. 2916) is further amended by 
adding at the end the following: 
‘‘(g) BUSINESS PARTNERSHIP GRANTS.—
‘‘(1) DEMONSTRATION PROJECT.—In addition to 
the demonstration projects under subsection (b), (d), 
and (e), the Secretary may make up to 10 competitive 
grants per year to eligible entities to expand local sec-
tor-focused training and workforce development in 
high growth, high wage industry sectors in one or 
more regions of particular States. 
‘‘(2) ELIGIBLE ENTITIES.—For purposes of this 
subsection an eligible entity is a business or business 
partnership, including associations of single or re-
lated industry employers and employee representa-
tives, consortia of such employers, employee represent-
atives, and workforce development community-based 
organizations, and higher education institutions. 
‘‘(3) USE
OF
FUNDS.—Grants awarded under 
this subsection may be used to—
143
‘‘(A) provide workforce-directed business 
services to help employers in targeted industries 
better retain, support and advance their skilled 
workers; 
‘‘(B) provide capacity building through re-
gional skill alliances, workforce intermediaries, 
and other collaborative entities to link businesses 
to public workforce systems and service providers 
targeted for their industry; 
‘‘(C) conduct analyses of skills that are 
needed in the workforce in such industries cur-
rently and in the future to project new market 
opportunities in particular industries; 
‘‘(D) develop rigorous training and edu-
cation programs related to employment in high-
growth, high-wage industries; 
‘‘(E) develop skill standards and industry-
certified curricula used in preparing workers for 
employment in such industries; 
‘‘(F) train adults and dislocated workers in 
the skills and competencies needed to obtain or 
upgrade employment; 
‘‘(G) disseminate information on high-
growth, high-wage occupations;
144
‘‘(H) place trained individuals into employ-
ment in high-growth, high-wage industries; 
‘‘(I) increase integration between training 
providers, businesses, and the one-stop delivery 
system to meet the training needs of particular 
industries. 
‘‘(4) REPORTS.—The Secretary shall track and 
annually report to the chairmen and ranking minor-
ity members of 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, on the industries receiving grants 
under this subsection, the performance results of each 
such grant, and the percentage and amount of grants 
awarded to eligible entities for programs serving each 
of the following populations: incumbent workers, dis-
located workers, adults, and youth.’’. 
SEC. 126. NATIONAL DISLOCATED WORKER GRANTS. 
(a) IN GENERAL.—Section 173 (29 U.S.C. 2916) is 
amended—
(1) by amending the designation and heading to 
read as follows: 
‘‘SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.’’; and 
(2) in subsection (a)—
145
(A) 
by 
striking 
‘‘national 
emergency 
grants’’ in the matter preceding paragraph (1) 
and 
inserting 
‘‘national 
dislocated 
worker 
grants’’; and 
(B) in paragraph (1), by striking ‘‘sub-
section (c)’’ and inserting ‘‘subsection (b)’’. 
(b) ADMINISTRATION.—Section 173 (29 U.S.C. 2918) 
is further amended—
(1) by striking subsection (b) and redesignating 
subsections (c) and (d) as subsections (b) and (c), re-
spectively; and 
(2) by striking subsection (e) and redesignating 
subsections (f) and (g) as subsection (d) and (e), re-
spectively. 
(c) ELIGIBLE ENTITIES.—Section 173(b)(1)(B) (29 
U.S.C. 2918(b)(1)(B)) (as redesignated by subsection (b)(1) 
of this section) is amended by striking ‘‘, and other entities’’ 
and all that follows and inserting a period. 
(d) 
PARTICIPANT
ELIGIBILITY
FOR
MILITARY 
SPOUSES.—Section 173(b)(2)(A) (29 U.S.C. 2918(b)(2)(A)) 
(as redesignated by subsection (b)(1) of this section) is 
amended—
(1) in clause (iii), by striking ‘‘; or’’ and insert-
ing a semicolon;
146
(2) in clause (iv)(IV) by striking the period and 
inserting ‘‘; or’’; and 
(3) by inserting at the end the following: 
‘‘(v) is the spouse of a member of the 
Armed Forces who is on active duty or full-
time National Guard duty, or who was re-
cently separated from such duties, and such 
spouse is in need of employment and train-
ing assistance to obtain or retain employ-
ment.’’. 
(e) CONFORMING AMENDMENT.—The table of contents 
in section 1(b) is amended by amending the item related 
to section 173 to read as follows:
‘‘Sec. 173. National dislocated worker grants.’’.
SEC. 127. AUTHORIZATION OF APPROPRIATIONS FOR NA-
TIONAL ACTIVITIES. 
(a) IN
GENERAL.—Section 174(a)(1) (29 U.S.C. 
2919(a)(1)) is amended by striking ‘‘1999 through 2003’’ 
and inserting ‘‘2006 through 2011’’. 
(b) RESERVATIONS.—Section 174(b) is amended to 
read as follows: 
‘‘(b) TECHNICAL ASSISTANCE; DEMONSTRATION AND 
PILOT PROJECTS; EVALUATIONS; INCENTIVE GRANTS.—
‘‘(1) DEMONSTRATION AND PILOT PROJECTS.—
‘‘(A) IN GENERAL.—There are authorized to 
be appropriated to carry out section 171,
147
$211,000,000 for fiscal year 2006 and such sums 
as may be necessary for fiscal years 2007 
through 2011. 
‘‘(B) RESERVATION FOR COMMUNITY-BASED 
JOB
TRAINING.—Of the amount appropriated 
pursuant to subparagraph (A), the Secretary 
shall reserve up to $125,000,000 for carrying out 
section 171(d). 
‘‘(2) TECHNICAL
ASSISTANCE, EVALUATIONS.—
There are authorized to be appropriated to carry out 
section 170, section 172, and section 136 such sums 
as may be necessary for each of fiscal years 2006 
through 2011.’’. 
SEC. 128. REQUIREMENTS AND RESTRICTIONS. 
(a) IN GENERAL.—Section 181(c)(2)(A) (29 U.S.C. 
2931(c)(2)(A)) is amended in the matter preceding clause 
(i) by striking ‘‘shall’’ and inserting ‘‘may’’. 
(b) LIMITATIONS.—Section 181(e) (29 U.S.C. 2931(e)) 
is amended by striking ‘‘training for’’ and inserting ‘‘the 
entry into employment, retention in employment, or in-
creases in earnings of’’. 
(c) REPORTS TO CONGRESS.—Section 185(e)(2) (29 
U.S.C. 2935(e)(2)) is amended by inserting ‘‘and the Sec-
retary shall submit to the Committee on Education and the 
Workforce of the House of Representatives and the Com-
148
mittee on Health, Education, Labor, and Pensions of the 
Senate,’’ after ‘‘Secretary,’’. 
SEC. 129. NONDISCRIMINATION. 
Section 188(a)(2) (29 U.S.C. 2931(a)(2)) is amended 
to read as follows: 
‘‘(2) PROHIBITION OF DISCRIMINATION REGARD-
ING PARTICIPATION, BENEFITS, AND EMPLOYMENT.—
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), no individual shall be ex-
cluded from participation in, denied the benefits 
of, subjected to discrimination under, or denied 
employment in the administration of or in con-
nection with, any such program or activity be-
cause of race, color, religion, sex (except as other-
wise permitted under title IX of the Education 
Amendments of 1972), national origin, age, dis-
ability, or political affiliation or belief. 
‘‘(B) EXEMPTION FOR RELIGIOUS ORGANI-
ZATIONS.—Subparagraph (A) shall not apply to 
a recipient of financial assistance under this 
title that is a religious corporation, association, 
educational institution, or society, with respect 
to the employment of individuals of a particular 
religion to perform work connected with the car-
rying on by such corporation, association, edu-
149
cational institution, or society of its activities. 
Such recipients shall comply with the other re-
quirements contained in subparagraph (A).’’. 
SEC. 130. ADMINISTRATIVE PROVISIONS. 
(a) PROGRAM YEAR.—Section 189(g)(1) (29 U.S.C. 
2939(g)(1)) is amended 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 July 1 in the fiscal year for which the 
appropriation is made.’’. 
(b) AVAILABILITY.—Section 189(g)(2) (29 U.S.C. 
2939(g)(2)) is amended by striking ‘‘each State’’ and insert-
ing ‘‘each recipient’’. 
(c) GENERAL WAIVERS.—Section 189(i)(4) (29 U.S.C. 
2939(i)(4)) is amended—
(1) in subparagraph (A), in the matter preceding 
clause (i), by inserting ‘‘, or in accordance with sub-
paragraph (D)’’ after ‘‘subparagraph (B)’’; and 
(2) by adding the following subparagraph: 
‘‘(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-
150
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.’’. 
SEC. 131. GENERAL PROGRAM REQUIREMENTS. 
Section 195 (29 U.S.C. 2945) is amended by adding 
at the end the following new paragraphs: 
‘‘(14) Funds provided under this title shall not 
be used to establish or operate stand-alone fee-for-serv-
ice enterprises that compete with private sector em-
ployment agencies within the meaning of section 
701(c) of the Civil Rights Act of 1964 (42 U.S.C. 
2000e(c)). For purposes of this paragraph, such an 
enterprise does not include one-stop centers. 
‘‘(15) Any report required to be submitted to 
Congress, or to a Committee of Congress, under this 
title shall be submitted to both the chairmen and 
ranking minority members of the Committee on Edu-
cation and the Workforce of the House of Representa-
tives and the Committee on Health, Education, 
Labor, and Pensions of the Senate.’’.
151
TITLE 
II—ADULT 
EDUCATION, 
BASIC SKILLS, AND FAMILY 
LITERACY EDUCATION 
SEC. 201. TABLE OF CONTENTS. 
The table of contents in section 1(b) is amended by 
amending the items relating to title II to read as follows:
‘‘TITLE II—ADULT EDUCATION, BASIC SKILLS, AND FAMILY 
LITERACY EDUCATION 
‘‘Sec. 201. Short title. 
‘‘Sec. 202. Purpose. 
‘‘Sec. 203. Definitions. 
‘‘Sec. 204. Home schools. 
‘‘Sec. 205. Authorization of appropriations. 
‘‘CHAPTER 1—FEDERAL PROVISIONS 
‘‘Sec. 211. Reservation of funds; grants to eligible agencies; allotments. 
‘‘Sec. 212. Performance accountability system. 
‘‘Sec. 213. Incentive grants for States. 
‘‘CHAPTER 2—STATE PROVISIONS 
‘‘Sec. 221. State administration. 
‘‘Sec. 222. State distribution of funds; matching requirement. 
‘‘Sec. 223. State leadership activities. 
‘‘Sec. 224. State plan. 
‘‘Sec. 225. Programs for corrections education and other institutionalized in-
dividuals. 
‘‘CHAPTER 3—LOCAL PROVISIONS 
‘‘Sec. 231. Grants and contracts for eligible providers. 
‘‘Sec. 232. Local application. 
‘‘Sec. 233. Local administrative cost limits. 
‘‘CHAPTER 4—GENERAL PROVISIONS 
‘‘Sec. 241. Administrative provisions. 
‘‘Sec. 242. National Institute for Literacy. 
‘‘Sec. 243. National leadership activities.’’.
SEC. 202. AMENDMENT. 
Title II (29 U.S.C. 2901 et seq.) is amended to read 
as follows:
152
‘‘TITLE II—ADULT EDUCATION, 
BASIC SKILLS, AND FAMILY 
LITERACY EDUCATION 
‘‘SEC. 201. SHORT TITLE. 
‘‘This title may be cited as the ‘Adult Education, Basic 
Skills, and Family Literacy Education Act’. 
‘‘SEC. 202. PURPOSE. 
‘‘It is the purpose of this title to provide instructional 
opportunities for adults seeking to improve their literacy 
skills, including their basic reading, writing, speaking, and 
math skills, and support States and local communities in 
providing, on a voluntary basis, adult education, basic 
skills, and family literacy education programs, in order 
to—
‘‘(1) increase the literacy of adults, including the 
basic reading, writing, speaking, and math skills, to 
a level of proficiency necessary for adults to obtain 
employment and self-sufficiency and to successfully 
advance in the workforce; 
‘‘(2) assist adults in the completion of a sec-
ondary school education (or its equivalent) and the 
transition to a postsecondary educational institution; 
‘‘(3) assist adults who are parents to enable them 
to support the educational development of their chil-
dren and make informed choices regarding their chil-
153
dren’s education including, through instruction in 
basic reading, writing, speaking, and math skills; and 
‘‘(4) assist immigrants who are not proficient in 
English in improving their reading, writing, speak-
ing, and math skills and acquiring an understanding 
of the American free enterprise system, individual 
freedom, and the responsibilities of citizenship. 
‘‘SEC. 203. DEFINITIONS. 
‘‘In this title: 
‘‘(1) ADULT
EDUCATION, BASIC
SKILLS, AND 
FAMILY LITERACY EDUCATION PROGRAMS.—The term 
‘adult education, basic skills, and family literacy edu-
cation programs’ means a sequence of academic in-
struction and educational services below the postsec-
ondary level that increase an individual’s ability to 
read, write, and speak in English and perform math-
ematical computations leading to a level of pro-
ficiency equivalent to at least a secondary school com-
pletion that is provided for individuals—
‘‘(A) who are at least 16 years of age; 
‘‘(B) who are not enrolled or required to be 
enrolled in secondary school under State law; 
and 
‘‘(C) who—
154
‘‘(i) lack sufficient mastery of basic 
reading, writing, speaking, and math skills 
to enable the individuals to function effec-
tively in society; 
‘‘(ii) do not have a secondary school 
diploma, General Educational Development 
credential (GED), or other State-recognized 
equivalent and have not achieved an equiva-
lent level of education; or 
‘‘(iii) are unable to read, write, or 
speak the English language. 
‘‘(2) ELIGIBLE
AGENCY.—The term ‘eligible 
agency’—
‘‘(A) means the primary entity or agency in 
a State or an outlying area responsible for ad-
ministering or supervising policy for adult edu-
cation, basic skills, and family literacy edu-
cation programs in the State or outlying area, 
respectively, consistent with the law of the State 
or outlying area, respectively; and 
‘‘(B) may be the State educational agency, 
the State agency responsible for administering 
workforce investment activities, or the State 
agency responsible for administering community 
or technical colleges.
155
‘‘(3) ELIGIBLE
PROVIDER.—The term ‘eligible 
provider’ means—
‘‘(A) a local educational agency; 
‘‘(B) a community-based or faith-based or-
ganization of demonstrated effectiveness; 
‘‘(C) a volunteer literacy organization of 
demonstrated effectiveness; 
‘‘(D) an institution of higher education; 
‘‘(E) a public or private educational agen-
cy; 
‘‘(F) a library; 
‘‘(G) a public housing authority; 
‘‘(H) an institution that is not described in 
any of subparagraphs (A) through (G) and has 
the ability to provide adult education, basic 
skills, and family literacy education programs to 
adults and families; or 
‘‘(I) a consortium of the agencies, organiza-
tions, institutions, libraries, or authorities de-
scribed in any of subparagraphs (A) through 
(H). 
‘‘(4) ENGLISH
LANGUAGE
ACQUISITION
PRO-
GRAM.—The term ‘English language acquisition pro-
gram’ means a program of instruction designed to 
help individuals with limited English proficiency
156
achieve competence in reading, writing, and speaking 
the English language. 
‘‘(5) ESSENTIAL COMPONENTS OF READING IN-
STRUCTION.—The term ‘essential components of read-
ing instruction’ has the meaning given to that term 
in section 1208 of the Elementary and Secondary 
Education Act of 1965. 
‘‘(6) FAMILY LITERACY EDUCATION PROGRAM.—
The term ‘family literacy education program’ means 
an educational program that—
‘‘(A) assists parents and students, on a vol-
untary basis, in achieving the purposes of this 
title as described in section 202; and 
‘‘(B) is of sufficient intensity in terms of 
hours and of sufficient duration to make sustain-
able changes in a family, is based upon scientific 
research-based principles, and, for the purpose of 
substantially increasing the ability of parents 
and children to read, write, and speak English, 
integrates—
‘‘(i) interactive literacy activities be-
tween parents and their children; 
‘‘(ii) training for parents regarding 
how to be the primary teacher for their chil-
157
dren and full partners in the education of 
their children; 
‘‘(iii) parent literacy training that 
leads to economic self-sufficiency; and 
‘‘(iv) an age-appropriate education to 
prepare children for success in school and 
life experiences. 
‘‘(7) GOVERNOR.—The term ‘Governor’ means 
the chief executive officer of a State or outlying area. 
‘‘(8) INDIVIDUAL WITH A DISABILITY.—
‘‘(A) IN
GENERAL.—The term ‘individual 
with a disability’ means an individual with any 
disability (as defined in section 3 of the Ameri-
cans with Disabilities Act of 1990). 
‘‘(B) INDIVIDUALS
WITH
DISABILITIES.—
The term ‘individuals with disabilities’ means 
more than one individual with a disability. 
‘‘(9) INDIVIDUAL WITH LIMITED ENGLISH PRO-
FICIENCY.—The 
term 
‘individual 
with 
limited 
English proficiency’ means an adult or out-of-school 
youth who has limited ability in reading, writing, 
speaking, or understanding the English language, 
and—
‘‘(A) whose native language is a language 
other than English; or
158
‘‘(B) who lives in a family or community 
environment where a language other than 
English is the dominant language. 
‘‘(10) INSTITUTION
OF
HIGHER
EDUCATION.—
The term ‘institution of higher education’ has the 
meaning given to that term in section 101 of the 
Higher Education Act of 1965. 
‘‘(11) LITERACY.—The term ‘literacy’ means an 
individual’s ability to read, write, and speak in 
English, compute, and solve problems at a level of 
proficiency necessary to obtain employment and to 
successfully make the transition to postsecondary edu-
cation. 
‘‘(12) LOCAL EDUCATIONAL AGENCY.—The term 
‘local educational agency’ has the meaning given to 
that term in section 9101 of the Elementary and Sec-
ondary Education Act of 1965. 
‘‘(13) OUTLYING
AREA.—The term ‘outlying 
area’ has the meaning given to that term in section 
101 of this Act. 
‘‘(14) POSTSECONDARY
EDUCATIONAL
INSTITU-
TION.—The term ‘postsecondary educational institu-
tion’ means—
‘‘(A) an institution of higher education that 
provides not less than a 2-year program of in-
159
struction that is acceptable for credit toward a 
bachelor’s degree; 
‘‘(B) a tribally controlled community col-
lege; or 
‘‘(C) a nonprofit educational institution of-
fering certificate or apprenticeship programs at 
the postsecondary level. 
‘‘(15) READING.—The term ‘reading’ has the 
meaning given to that term in section 1208 of the El-
ementary and Secondary Education Act of 1965. 
‘‘(16) SCIENTIFICALLY BASED RESEARCH.—The 
term ‘scientifically based research’ has the meaning 
given to that term in section 9101 of the Elementary 
and Secondary Education Act of 1965. 
‘‘(17) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Education. 
‘‘(18) STATE.—The term ‘State’ means each of 
the several States of the United States, the District of 
Columbia, and the Commonwealth of Puerto Rico. 
‘‘(19) STATE EDUCATIONAL AGENCY.—The term 
‘State educational agency’ has the meaning given to 
that term in section 9101 of the Elementary and Sec-
ondary Education Act of 1965. 
‘‘(20) WORKPLACE
LITERACY
PROGRAM.—The 
term ‘workplace literacy program’ means an edu-
160
cational program that is offered in collaboration be-
tween eligible providers and employers or employee 
organizations for the purpose of improving the pro-
ductivity of the workforce through the improvement of 
reading, writing, speaking, and math skills. 
‘‘SEC. 204. HOME SCHOOLS. 
‘‘Nothing in this title shall be construed to affect home 
schools, whether or not a home school is treated as a home 
school or a private school under State law, or to compel 
a parent engaged in home schooling to participate in an 
English language acquisition program, a family literacy 
education program, or an adult education, basic skills, and 
family literacy education program. 
‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this title $590,127,000 for fiscal year 2006 and such sums 
as may be necessary for fiscal years 2007 through 2011. 
‘‘CHAPTER 1—FEDERAL PROVISIONS 
‘‘SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE 
AGENCIES; ALLOTMENTS. 
‘‘(a) RESERVATION OF FUNDS.—From the sums ap-
propriated under section 205 for a fiscal year, the Sec-
retary—
‘‘(1) shall reserve up to 1.72 percent for incentive 
grants under section 213;
161
‘‘(2) shall reserve 1.75 percent to carry out sec-
tion 242; and 
‘‘(3) shall reserve up to 1.55 percent to carry out 
section 243. 
‘‘(b) GRANTS TO ELIGIBLE AGENCIES.—
‘‘(1) IN GENERAL.—From the sums appropriated 
under section 205 and not reserved under subsection 
(a) for a fiscal year, the Secretary shall award a 
grant to each eligible agency having a State plan ap-
proved under section 224 in an amount equal to the 
sum of the initial allotment under subsection (c)(1) 
and the additional allotment under subsection (c)(2) 
for the eligible agency for the fiscal year, subject to 
subsections (f) and (g). 
‘‘(2) PURPOSE OF GRANTS.—The Secretary may 
award a grant under paragraph (1) only if the eligi-
ble agency involved agrees to expend the grant in ac-
cordance with the provisions of this title. 
‘‘(c) ALLOTMENTS.—
‘‘(1) INITIAL ALLOTMENTS.—From the sums ap-
propriated under section 205 and not reserved under 
subsection (a) for a fiscal year, the Secretary shall 
allot to each eligible agency having a State plan ap-
proved under section 224—
162
‘‘(A) $100,000, in the case of an eligible 
agency serving an outlying area; and 
‘‘(B) $250,000, in the case of any other eli-
gible agency. 
‘‘(2) ADDITIONAL ALLOTMENTS.—From the sums 
appropriated under section 205, not reserved under 
subsection (a), and not allotted under paragraph (1), 
for a fiscal year, the Secretary shall allot to each eli-
gible agency that receives an initial allotment under 
paragraph (1) an additional amount that bears the 
same relationship to such sums as the number of 
qualifying adults in the State or outlying area served 
by the eligible agency bears to the number of such 
adults in all States and outlying areas. 
‘‘(d) QUALIFYING ADULT.—For the purpose of sub-
section (c)(2), the term ‘qualifying adult’ means an adult 
who—
‘‘(1) is at least 16 years of age; 
‘‘(2) is beyond the age of compulsory school at-
tendance under the law of the State or outlying area; 
‘‘(3) does not have a secondary school diploma, 
General Educational Development credential (GED), 
or other State-recognized equivalent; and 
‘‘(4) is not enrolled in secondary school. 
‘‘(e) SPECIAL RULE.—
163
‘‘(1) IN GENERAL.—From amounts made avail-
able under subsection (c) for the Republic of Palau, 
the Secretary shall award grants to Guam, American 
Samoa, the Commonwealth of the Northern Mariana 
Islands, or the Republic of Palau to carry out activi-
ties described in this title in accordance with the pro-
visions of this title as determined by the Secretary. 
‘‘(2) TERMINATION
OF
ELIGIBILITY.—Notwith-
standing any other provision of law, the Republic of 
Palau shall be eligible to receive a grant under this 
title until an agreement for the extension of United 
States education assistance under the Compact of 
Free Association for the Republic of Palau becomes ef-
fective. 
‘‘(3) ADMINISTRATIVE
COSTS.—The Secretary 
may provide not more than 5 percent of the funds 
made available for grants under this subsection to 
pay the administrative costs of the Pacific Region 
Educational Laboratory regarding activities assisted 
under this subsection. 
‘‘(f) HOLD-HARMLESS PROVISIONS.—
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(c), and subject to paragraphs (2) and (3), for fiscal 
year 2006 and each succeeding fiscal year, no eligible 
agency shall receive an allotment under this title that
164
is less than 90 percent of the allotment the eligible 
agency received for the preceding fiscal year under 
this title. 
‘‘(2) EXCEPTION.—An eligible agency that re-
ceives for the preceding fiscal year only an initial al-
lotment under subsection (c)(1) (and no additional al-
lotment under subsection (c)(2)) shall receive an allot-
ment equal to 100 percent of the initial allotment. 
‘‘(3) RATABLE
REDUCTION.—If for any fiscal 
year the amount available for allotment under this 
title is insufficient to satisfy the provisions of para-
graph (1), the Secretary shall ratably reduce the pay-
ments to all eligible agencies, as necessary. 
‘‘(g) REALLOTMENT.—The portion of any eligible 
agency’s allotment under this title for a fiscal year that the 
Secretary determines will not be required for the period 
such allotment is available for carrying out activities under 
this title, shall be available for reallotment from time to 
time, on such dates during such period as the Secretary 
shall fix, to other eligible agencies in proportion to the origi-
nal allotments to such agencies under this title for such 
year. 
‘‘SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM. 
‘‘(a) PURPOSE.—The purpose of this section is to es-
tablish a comprehensive performance accountability system,
165
composed of the activities described in this section, to assess 
the effectiveness of eligible agencies in achieving continuous 
improvement of adult education, basic skills, and family 
literacy education programs funded under this title, in 
order to optimize the return on investment of Federal funds 
in adult education, basic skills, and family literacy edu-
cation programs. 
‘‘(b) ELIGIBLE AGENCY PERFORMANCE MEASURES.—
‘‘(1) IN GENERAL.—For each eligible agency, the 
eligible agency performance measures shall consist 
of—
‘‘(A)(i) the core indicators of performance 
described in paragraph (2)(A); and 
‘‘(ii) employment performance indicators 
identified by the eligible agency under para-
graph (2)(B); and 
‘‘(B) an eligible agency adjusted level of 
performance for each indicator described in sub-
paragraph (A). 
‘‘(2) INDICATORS OF PERFORMANCE.—
‘‘(A) CORE
INDICATORS
OF
PERFORM-
ANCE.—The core indicators of performance shall 
include the following: 
‘‘(i) Measurable improvements in lit-
eracy, including basic skill levels in read-
166
ing, writing, and speaking the English lan-
guage and basic math, leading to pro-
ficiency in each skill. 
‘‘(ii) Receipt of a secondary school di-
ploma, General Educational Development 
credential (GED), or other State-recognized 
equivalent. 
‘‘(iii) Placement in postsecondary edu-
cation or other training programs. 
‘‘(B) EMPLOYMENT PERFORMANCE INDICA-
TORS.—Consistent with applicable Federal and 
State privacy laws, an eligible agency shall iden-
tify in the State plan the following individual 
participant employment performance indicators: 
‘‘(i) Entry into employment. 
‘‘(ii) Retention in employment. 
‘‘(iii) Increase in earnings. 
‘‘(3) LEVELS OF PERFORMANCE.—
‘‘(A) ELIGIBLE AGENCY ADJUSTED LEVELS 
OF PERFORMANCE FOR CORE INDICATORS.—
‘‘(i) IN
GENERAL.—For each eligible 
agency submitting a State plan, there shall 
be established, in accordance with this sub-
paragraph, levels of performance for each of 
the core indicators of performance described
167
in paragraph (2)(A) for adult education, 
basic skills, and family literacy education 
programs authorized under this title. The 
levels of performance established under this 
subparagraph shall, at a minimum—
‘‘(I) be expressed in an objective, 
quantifiable, and measurable form; 
and 
‘‘(II) show the progress of the eli-
gible agency toward continuously and 
significantly improving the agency’s 
performance outcomes in an objective, 
quantifiable, and measurable form. 
‘‘(ii) 
IDENTIFICATION
IN
STATE 
PLAN.—Each eligible agency shall identify, 
in the State plan submitted under section 
224, expected levels of performance for each 
of the core indicators of performance for the 
first 3 program years covered by the State 
plan. 
‘‘(iii) AGREEMENT ON ELIGIBLE AGEN-
CY
ADJUSTED
LEVELS
OF
PERFORMANCE 
FOR FIRST 3 YEARS.—In order to ensure an 
optimal return on the investment of Federal 
funds in adult education, basic skills, and
168
family literacy education programs author-
ized under this title, the Secretary and each 
eligible agency shall reach agreement on lev-
els of student performance for each of the 
core indicators of performance, for the first 
3 program years covered by the State plan, 
taking into account the levels identified in 
the State plan under clause (ii) and the fac-
tors described in clause (iv). The levels 
agreed to under this clause shall be consid-
ered to be the eligible agency adjusted levels 
of performance for the eligible agency for 
such years and shall be incorporated into 
the State plan prior to the approval of such 
plan. 
‘‘(iv) FACTORS.—The agreement de-
scribed in clause (iii) or (v) shall take into 
account—
‘‘(I) how the levels involved com-
pare with the eligible agency’s adjusted 
levels of performance, taking into ac-
count factors including the characteris-
tics of participants when the partici-
pants entered the program; and
169
‘‘(II) the extent to which such lev-
els promote continuous and significant 
improvement in performance on the 
student proficiency measures used by 
such eligible agency and ensure opti-
mal return on the investment of Fed-
eral funds. 
‘‘(v) AGREEMENT ON ELIGIBLE AGENCY 
ADJUSTED LEVELS OF PERFORMANCE FOR 
SECOND 3 YEARS.—Prior to the fourth pro-
gram year covered by the State plan, the 
Secretary and each eligible agency shall 
reach agreement on levels of student per-
formance for each of the core indicators of 
performance for the fourth, fifth, and sixth 
program years covered by the State plan, 
taking into account the factors described in 
clause (iv). The levels agreed to under this 
clause shall be considered to be the eligible 
agency adjusted levels of performance for the 
eligible agency for such years and shall be 
incorporated into the State plan. 
‘‘(vi) 
REVISIONS.—If 
unanticipated 
circumstances arise in a State resulting in 
a significant change in the factors described
170
in clause (iv)(I), the eligible agency may re-
quest that the eligible agency adjusted levels 
of performance agreed to under clause (iii) 
or (v) be revised. 
‘‘(B) LEVELS OF EMPLOYMENT PERFORM-
ANCE.—The eligible agency shall identify, in the 
State plan, eligible agency levels of performance 
for each of the employment performance indica-
tors described in paragraph (2)(B). Such levels 
shall be considered to be eligible agency adjusted 
levels of performance for purposes of this title. 
‘‘(c) REPORT.—
‘‘(1) IN GENERAL.—Each eligible agency that re-
ceives a grant under section 211(b) shall annually 
prepare and submit to the Secretary, the Governor, 
the State legislature, and eligible providers a report 
on the progress of the eligible agency in achieving eli-
gible agency performance measures, including the fol-
lowing: 
‘‘(A) Information on the levels of perform-
ance achieved by the eligible agency with respect 
to the core indicators of performance and em-
ployment performance indicators. 
‘‘(B) The number and type of each eligible 
provider that receives funding under such grant.
171
‘‘(2) INFORMATION
DISSEMINATION.—The Sec-
retary—
‘‘(A) shall make the information contained 
in such reports available to the general public 
through publication (including on the Internet 
site of the Department of Education) and other 
appropriate methods; 
‘‘(B) shall disseminate State-by-State com-
parisons of the information; and 
‘‘(C) shall provide the appropriate commit-
tees of the Congress with copies of such reports. 
‘‘SEC. 213. INCENTIVE GRANTS FOR STATES. 
‘‘(a) IN GENERAL.—From funds appropriated under 
section 211(a)(1), the Secretary may award grants to States 
for exemplary performance in carrying out programs under 
this title. Such awards shall be based on States exceeding 
the core indicators of performance established under section 
212(b)(2)(A) and may be based on the performance of the 
State in serving populations, such as those described in sec-
tion 224(b)(10), 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 Sec-
retary determines appropriate. 
‘‘(b) USE OF FUNDS.—The funds awarded to a State 
under this paragraph may be used to carry out any activi-
172
ties authorized under this title, including demonstrations 
and innovative programs for hard-to-serve populations. 
‘‘CHAPTER 2—STATE PROVISIONS 
‘‘SEC. 221. STATE ADMINISTRATION. 
‘‘Each eligible agency shall be responsible for the fol-
lowing activities under this title: 
‘‘(1) The development, submission, implementa-
tion, and monitoring of the State plan. 
‘‘(2) Consultation with other appropriate agen-
cies, groups, and individuals that are involved in, or 
interested in, the development and implementation of 
activities assisted under this title. 
‘‘(3) Coordination and avoidance of duplication 
with other Federal and State education, training, cor-
rections, public housing, and social service programs. 
‘‘SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING RE-
QUIREMENT. 
‘‘(a) STATE DISTRIBUTION OF FUNDS.—Each eligible 
agency receiving a grant under this title for a fiscal year—
‘‘(1) shall use an amount not less than 82.5 per-
cent of the grant funds to award grants and contracts 
under section 231 and to carry out section 225, of 
which not more than 10 percent of such amount shall 
be available to carry out section 225;
173
‘‘(2) shall use not more than 12.5 percent of the 
grant funds to carry out State leadership activities 
under section 223; and 
‘‘(3) shall use not more than 5 percent of the 
grant funds, or $75,000, whichever is greater, for the 
administrative expenses of the eligible agency. 
‘‘(b) MATCHING REQUIREMENT.—
‘‘(1) IN GENERAL.—In order to receive a grant 
from the Secretary under section 211(b), each eligible 
agency shall provide, for the costs to be incurred by 
the eligible agency in carrying out the adult edu-
cation, basic skills, and family literacy education 
programs for which the grant is awarded, a non-Fed-
eral contribution in an amount at least equal to—
‘‘(A) in the case of an eligible agency serv-
ing an outlying area, 12 percent of the total 
amount of funds expended for adult education, 
basic skills, and family literacy education pro-
grams in the outlying area, except that the Sec-
retary may decrease the amount of funds re-
quired under this subparagraph for an eligible 
agency; and 
‘‘(B) in the case of an eligible agency serv-
ing a State, 25 percent of the total amount of 
funds expended for adult education, basic skills,
174
and family literacy education programs in the 
State. 
‘‘(2) NON-FEDERAL CONTRIBUTION.—An eligible 
agency’s non-Federal contribution required under 
paragraph (1) may be provided in cash or in kind, 
fairly evaluated, and shall include only non-Federal 
funds that are used for adult education, basic skills, 
and family literacy education programs in a manner 
that is consistent with the purpose of this title. 
‘‘SEC. 223. STATE LEADERSHIP ACTIVITIES. 
‘‘(a) IN GENERAL.—Each eligible agency may use 
funds made available under section 222(a)(2) for any of 
the following adult education, basic skills, and family lit-
eracy education programs: 
‘‘(1) The establishment or operation of profes-
sional development programs to improve the quality 
of instruction provided pursuant to local activities re-
quired under section 231(b), including instruction in-
corporating the essential components of reading in-
struction and instruction provided by volunteers or 
by personnel of a State or outlying area. 
‘‘(2) The provision of technical assistance to eli-
gible providers of adult education, basic skills, and 
family literacy education programs, including for the 
development and dissemination of scientifically based
175
research instructional practices in reading, writing, 
speaking, math, and English language acquisition 
programs. 
‘‘(3) The provision of assistance to eligible pro-
viders in developing, implementing, and reporting 
measurable progress in achieving the objectives of this 
title. 
‘‘(4) The provision of technology assistance, in-
cluding staff training, to eligible providers of adult 
education, basic skills, and family literacy education 
programs, including distance learning activities, to 
enable the eligible providers to improve the quality of 
such activities. 
‘‘(5) The development and implementation of 
technology applications or distance learning, includ-
ing professional development to support the use of in-
structional technology. 
‘‘(6) Coordination with other public programs, 
including welfare-to-work, workforce development, and 
job training programs. 
‘‘(7) Coordination with existing support services, 
such as transportation, child care, and other assist-
ance designed to increase rates of enrollment in, and 
successful completion of, adult education, basic skills,
176
and family literacy education programs, for adults 
enrolled in such activities. 
‘‘(8) The development and implementation of a 
system to assist in the transition from adult basic 
education to postsecondary education. 
‘‘(9) Activities to promote workplace literacy 
programs. 
‘‘(10) Activities to promote and complement local 
outreach initiatives described in section 243(7). 
‘‘(11) Other activities of statewide significance, 
including assisting eligible providers in achieving 
progress in improving the skill levels of adults who 
participate in programs under this title. 
‘‘(12) Integration of literacy, instructional, and 
occupational skill training and promotion of linkages 
with employees. 
‘‘(b) COORDINATION.—In carrying out this section, eli-
gible agencies shall coordinate where possible, and avoid du-
plicating efforts, in order to maximize the impact of the 
activities described in subsection (a). 
‘‘(c) STATE-IMPOSED REQUIREMENTS.—Whenever a 
State or outlying area implements any rule or policy relat-
ing to the administration or operation of a program au-
thorized under this title that has the effect of imposing a 
requirement that is not imposed under Federal law (includ-
177
ing any rule or policy based on a State or outlying area 
interpretation of a Federal statute, regulation, or guide-
line), the State or outlying area shall identify, to eligible 
providers, the rule or policy as being imposed by the State 
or outlying area. 
‘‘SEC. 224. STATE PLAN. 
‘‘(a) 6-YEAR PLANS.—
‘‘(1) IN GENERAL.—Each eligible agency desiring 
a grant under this title for any fiscal year shall sub-
mit to, or have on file with, the Secretary a 6-year 
State plan. 
‘‘(2) COMPREHENSIVE PLAN OR APPLICATION.—
The eligible agency may submit the State plan as 
part of a comprehensive plan or application for Fed-
eral education assistance. 
‘‘(b) PLAN CONTENTS.—The eligible agency shall in-
clude in the State plan or any revisions to the State plan—
‘‘(1) an objective assessment of the needs of indi-
viduals in the State or outlying area for adult edu-
cation, basic skills, and family literacy education 
programs, including individuals most in need or 
hardest to serve; 
‘‘(2) a description of the adult education, basic 
skills, and family literacy education programs that
178
will be carried out with funds received under this 
title; 
‘‘(3) a description of how the eligible agency will 
evaluate and measure annually the effectiveness and 
improvement of the adult education, basic skills, and 
family literacy education programs based on the per-
formance measures described in section 212 includ-
ing—
‘‘(A) how the eligible agency will evaluate 
and measure annually such effectiveness on a 
grant-by-grant basis; and 
‘‘(B) how the eligible agency—
‘‘(i) will hold eligible providers ac-
countable regarding the progress of such 
providers 
in 
improving 
the 
academic 
achievement of participants in adult edu-
cation programs under this title and re-
garding the core indicators of performance 
described in section 212(b)(2)(A); and 
‘‘(ii) will use technical assistance, 
sanctions, and rewards (including alloca-
tion of grant funds based on performance 
and termination of grant funds based on 
nonperformance);
179
‘‘(4) a description of the performance measures 
described in section 212 and how such performance 
measures have significantly improved adult edu-
cation, basic skills, and family literacy education 
programs in the State or outlying area; 
‘‘(5) an assurance that the eligible agency will, 
in addition to meeting all of the other requirements 
of this title, award not less than one grant under this 
title to an eligible provider that—
‘‘(A) offers flexible schedules and necessary 
support services (such as child care and trans-
portation) to enable individuals, including indi-
viduals with disabilities, or individuals with 
other special needs, to participate in adult edu-
cation, basic skills, and family literacy edu-
cation programs; and 
‘‘(B) attempts to coordinate with support 
services that are not provided under this title 
prior to using funds for adult education, basic 
skills, and family literacy education programs 
provided under this title for support services; 
‘‘(6) an assurance that the funds received under 
this title will not be expended for any purpose other 
than for activities under this title;
180
‘‘(7) a description of how the eligible agency will 
fund local activities in accordance with the measur-
able goals described in section 231(d); 
‘‘(8) an assurance that the eligible agency will 
expend the funds under this title only in a manner 
consistent with fiscal requirements in section 241; 
‘‘(9) a description of the process that will be used 
for public participation and comment with respect to 
the State plan, which process—
‘‘(A) shall include consultation with the 
State workforce investment board, the State 
board responsible for administering community 
or technical colleges, the Governor, the State edu-
cational agency, the State board or agency re-
sponsible for administering block grants for tem-
porary assistance to needy families under title 
IV of the Social Security Act, the State council 
on disabilities, the State vocational rehabilita-
tion agency, other State agencies that promote 
the improvement of adult education, basic skills, 
and family literacy education programs, and di-
rect providers of such programs; and 
‘‘(B) may include consultation with the 
State agency on higher education, institutions 
responsible for professional development of adult
181
education, basic skills, and family literacy edu-
cation programs instructors, representatives of 
business and industry, refugee assistance pro-
grams, and faith-based organizations; 
‘‘(10) a description of the eligible agency’s strate-
gies for serving populations that include, at a min-
imum—
‘‘(A) low-income individuals; 
‘‘(B) individuals with disabilities; 
‘‘(C) the unemployed; 
‘‘(D) the underemployed; and 
‘‘(E) individuals with multiple barriers to 
educational enhancement, including individuals 
with limited English proficiency; 
‘‘(11) a description of how the adult education, 
basic skills, and family literacy education programs 
that will be carried out with any funds received 
under this title will be integrated with other adult 
education, career development, and employment and 
training activities in the State or outlying area 
served by the eligible agency; 
‘‘(12) a description of the steps the eligible agen-
cy will take to ensure direct and equitable access, as 
required in section 231(c)(1), including—
182
‘‘(A) how the State will build the capacity 
of community-based and faith-based organiza-
tions to provide adult education, basic skills, and 
family literacy education programs; and 
‘‘(B) how the State will increase the partici-
pation of business and industry in adult edu-
cation, basic skills, and family literacy edu-
cation programs; 
‘‘(13) an assessment of the adequacy of the sys-
tem of the State or outlying area to ensure teacher 
quality and a description of how the State or out-
lying area will use funds received under this subtitle 
to improve teacher quality, including professional de-
velopment on the use of scientifically based research 
to improve instruction; and 
‘‘(14) a description of how the eligible agency 
will consult with any State agency responsible for 
postsecondary education to develop adult education 
that prepares students to enter postsecondary edu-
cation without the need for remediation upon comple-
tion of secondary school equivalency programs. 
‘‘(c) PLAN REVISIONS.—When changes in conditions 
or other factors require substantial revisions to an approved 
State plan, the eligible agency shall submit the revisions 
of the State plan to the Secretary.
183
‘‘(d) CONSULTATION.—The eligible agency shall—
‘‘(1) submit the State plan, and any revisions to 
the State plan, to the Governor, the chief State school 
officer, or the State officer responsible for admin-
istering community or technical colleges, or outlying 
area for review and comment; and 
‘‘(2) ensure that any comments regarding the 
State plan by the Governor, the chief State school offi-
cer, or the State officer responsible for administering 
community or technical colleges, and any revision to 
the State plan, are submitted to the Secretary. 
‘‘(e) PLAN APPROVAL.—A State plan submitted to the 
Secretary shall be approved by the Secretary only if the 
plan is consistent with the specific provisions of this title. 
‘‘SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND 
OTHER INSTITUTIONALIZED INDIVIDUALS. 
‘‘(a) PROGRAM
AUTHORIZED.—From funds made 
available under section 222(a)(1) for a fiscal year, each eli-
gible agency shall carry out corrections education and edu-
cation for other institutionalized individuals. 
‘‘(b) USES OF FUNDS.—The funds described in sub-
section (a) shall be used for the cost of educational programs 
for criminal offenders in correctional institutions and for 
other institutionalized individuals, including academic 
programs for—
184
‘‘(1) basic skills education; 
‘‘(2) special education programs as determined 
by the eligible agency; 
‘‘(3) reading, writing, speaking, and math pro-
grams; and 
‘‘(4) secondary school credit or diploma pro-
grams or their recognized equivalent. 
‘‘(c) PRIORITY.—Each eligible agency that is using as-
sistance provided under this section to carry out a program 
for criminal offenders within a correctional institution 
shall give priority to serving individuals who are likely to 
leave the correctional institution within 5 years of partici-
pation in the program. 
‘‘(d) DEFINITIONS.—For purposes of this section: 
‘‘(1) CORRECTIONAL
INSTITUTION.—The term 
‘correctional institution’ means any—
‘‘(A) prison; 
‘‘(B) jail; 
‘‘(C) reformatory; 
‘‘(D) work farm; 
‘‘(E) detention center; or 
‘‘(F) halfway house, community-based reha-
bilitation center, or any other similar institution 
designed for the confinement or rehabilitation of 
criminal offenders.
185
‘‘(2) CRIMINAL OFFENDER.—The term ‘criminal 
offender’ means any individual who is charged with, 
or convicted of, any criminal offense. 
‘‘CHAPTER 3—LOCAL PROVISIONS 
‘‘SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PRO-
VIDERS. 
‘‘(a) GRANTS AND CONTRACTS.—From grant funds 
made available under section 211(b), each eligible agency 
shall award multiyear grants or contracts, on a competitive 
basis, to eligible providers within the State or outlying area 
that meet the conditions and requirements of this title to 
enable the eligible providers to develop, implement, and im-
prove adult education, basic skills, and family literacy edu-
cation programs within the State. 
‘‘(b) LOCAL ACTIVITIES.—The eligible agency shall re-
quire eligible providers receiving a grant or contract under 
subsection (a) to establish or operate one or more programs 
of instruction that provide services or instruction in one 
or more of the following categories: 
‘‘(1) Adult education, basic skills, and family lit-
eracy education programs (including proficiency in 
reading, writing, speaking, and math). 
‘‘(2) Workplace literacy programs. 
‘‘(3) English language acquisition programs. 
‘‘(4) Family literacy education programs.
186
‘‘(c) DIRECT AND EQUITABLE ACCESS; SAME PROC-
ESS.—Each eligible agency receiving funds under this title 
shall ensure that—
‘‘(1) all eligible providers have direct and equi-
table access to apply for grants or contracts under 
this section; and 
‘‘(2) the same grant or contract announcement 
process and application process is used for all eligible 
providers in the State or outlying area. 
‘‘(d) MEASURABLE GOALS.—The eligible agency shall 
require eligible providers receiving a grant or contract 
under subsection (a) to demonstrate—
‘‘(1) the eligible provider’s measurable goals for 
participant outcomes to be achieved annually on the 
core indicators of performance and employment per-
formance indicators described in section 212(b)(2); 
‘‘(2) the past effectiveness of the eligible provider 
in improving the basic academic skills of adults and, 
for eligible providers receiving grants in the prior 
year, the success of the eligible provider receiving 
funding under this title in exceeding its performance 
goals in the prior year; 
‘‘(3) the commitment of the eligible provider to 
serve individuals in the community who are the most 
in need of basic academic skills instruction services,
187
including individuals who are low-income or have 
minimal reading, writing, speaking, and math skills, 
or limited English proficiency; 
‘‘(4) the program—
‘‘(A) is of sufficient intensity and duration 
for participants to achieve substantial learning 
gains; and 
‘‘(B) uses instructional practices that in-
clude the essential components of reading in-
struction; 
‘‘(5) educational practices are based on scientif-
ically based research; 
‘‘(6) the activities of the eligible provider effec-
tively employ advances in technology, as appropriate, 
including the use of computers; 
‘‘(7) the activities provide instruction in real-life 
contexts, when appropriate, to ensure that an indi-
vidual has the skills needed to compete in the work-
place and exercise the rights and responsibilities of 
citizenship; 
‘‘(8) the activities are staffed by well-trained in-
structors, counselors, and administrators; 
‘‘(9) the activities are coordinated with other 
available resources in the community, such as through 
strong links with elementary schools and secondary
188
schools, postsecondary educational institutions, one-
stop centers, job training programs, community-based 
and faith-based organizations, and social service 
agencies; 
‘‘(10) the activities offer flexible schedules and 
support services (such as child care and transpor-
tation) that are necessary to enable individuals, in-
cluding individuals with disabilities or other special 
needs, to attend and complete programs; 
‘‘(11) the activities include a high-quality infor-
mation management system that has the capacity to 
report measurable participant outcomes and to mon-
itor program performance against the performance 
measures established by the eligible agency; 
‘‘(12) the local communities have a demonstrated 
need for additional English language acquisition pro-
grams; 
‘‘(13) the capacity of the eligible provider to 
produce valid information on performance results, in-
cluding enrollments and measurable participant out-
comes; 
‘‘(14) adult education, basic skills, and family 
literacy education programs offer rigorous reading, 
writing, speaking, and math content that are based 
on scientifically based research; and
189
‘‘(15) applications of technology, and services to 
be provided by the eligible providers, are of sufficient 
intensity and duration to increase the amount and 
quality of learning and lead to measurable learning 
gains within specified time periods. 
‘‘(e) SPECIAL RULE.—Eligible providers may use 
grant funds under this title to serve children participating 
in family literacy programs assisted under this part, pro-
vided that other sources of funds available to provide simi-
lar services for such children are used first. 
‘‘SEC. 232. LOCAL APPLICATION. 
‘‘Each eligible provider desiring a grant or contract 
under this title shall submit an application to the eligible 
agency containing such information and assurances as the 
eligible agency may require, including—
‘‘(1) a description of how funds awarded under 
this title will be spent consistent with the require-
ments of this title; 
‘‘(2) a description of any cooperative arrange-
ments the eligible provider has with other agencies, 
institutions, or organizations for the delivery of adult 
education, basic skills, and family literacy education 
programs; and 
‘‘(3) each of the demonstrations required by sec-
tion 231(d).
190
‘‘SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS. 
‘‘(a) IN GENERAL.—Subject to subsection (b), of the 
amount that is made available under this title to an eligible 
provider—
‘‘(1) at least 95 percent shall be expended for 
carrying out adult education, basic skills, and family 
literacy education programs; and 
‘‘(2) the remaining amount shall be used for 
planning, administration, personnel and professional 
development, development of measurable goals in 
reading, writing, speaking, and math, and inter-
agency coordination. 
‘‘(b) SPECIAL RULE.—In cases where the cost limits 
described in subsection (a) are too restrictive to allow for 
adequate planning, administration, personnel development, 
and interagency coordination, the eligible provider may ne-
gotiate with the eligible agency in order to determine an 
adequate level of funds to be used for noninstructional pur-
poses. 
‘‘CHAPTER 4—GENERAL PROVISIONS 
‘‘SEC. 241. ADMINISTRATIVE PROVISIONS. 
‘‘(a) SUPPLEMENT
NOT
SUPPLANT.—Funds made 
available for adult education, basic skills, and family lit-
eracy education programs under this title shall supplement 
and not supplant other State or local public funds expended
191
for adult education, basic skills, and family literacy edu-
cation programs. 
‘‘(b) MAINTENANCE OF EFFORT.—
‘‘(1) IN GENERAL.—
‘‘(A) DETERMINATION.—An eligible agency 
may receive funds under this title for any fiscal 
year if the Secretary finds that the fiscal effort 
per student or the aggregate expenditures of such 
eligible agency for activities under this title, in 
the second preceding fiscal year, were not less 
than 90 percent of the fiscal effort per student or 
the aggregate expenditures of such eligible agency 
for adult education, basic skills, and family lit-
eracy education programs, in the third preceding 
fiscal year. 
‘‘(B) PROPORTIONATE REDUCTION.—Subject 
to paragraphs (2), (3), and (4), for any fiscal 
year with respect to which the Secretary deter-
mines under subparagraph (A) that the fiscal ef-
fort or the aggregate expenditures of an eligible 
agency for the preceding program year were less 
than such effort or expenditures for the second 
preceding program year, the Secretary—
192
‘‘(i) shall determine the percentage de-
creases in such effort or in such expendi-
tures; and 
‘‘(ii) shall decrease the payment made 
under this title for such program year to the 
agency for adult education, basic skills, and 
family literacy education programs by the 
lesser of such percentages. 
‘‘(2) COMPUTATION.—In computing the fiscal ef-
fort and aggregate expenditures under paragraph (1), 
the Secretary shall exclude capital expenditures and 
special one-time project costs. 
‘‘(3) DECREASE IN FEDERAL SUPPORT.—If the 
amount made available for adult education, basic 
skills, and family literacy education programs under 
this title for a fiscal year is less than the amount 
made available for adult education, basic skills, and 
family literacy education programs under this title 
for the preceding fiscal year, then the fiscal effort per 
student and the aggregate expenditures of an eligible 
agency required in order to avoid a reduction under 
paragraph (1)(B) shall be decreased by the same per-
centage as the percentage decrease in the amount so 
made available.
193
‘‘(4) WAIVER.—The Secretary may waive the re-
quirements of this subsection for not more than 1 fis-
cal year, if the Secretary determines that a waiver 
would be equitable due to exceptional or uncontrol-
lable circumstances, such as a natural disaster or an 
unforeseen and precipitous decline in the financial re-
sources of the State or outlying area of the eligible 
agency. If the Secretary grants a waiver under the 
preceding sentence for a fiscal year, the level of effort 
required under paragraph (1) shall not be reduced in 
the subsequent fiscal year because of the waiver. 
‘‘SEC. 242. NATIONAL INSTITUTE FOR LITERACY. 
‘‘(a) IN GENERAL.—
‘‘(1) PURPOSE.—The purpose of the National In-
stitute for Literacy is to promote the improvement of 
literacy, including skills in reading, writing, and 
English language acquisition for children, youth, and 
adults, through practices derived from the findings of 
scientifically based research. 
‘‘(2) ESTABLISHMENT.—There is established a 
National Institute for Literacy (in this section re-
ferred to as the ‘Institute’). The Institute shall be ad-
ministered under the terms of an interagency agree-
ment entered into, reviewed annually, and modified 
as needed by the Secretary of Education with the Sec-
194
retary of Health and Human Services and the Sec-
retary of Labor (in this section referred to as the 
‘Interagency Group’). 
‘‘(3) OFFICES.—The Institute shall have offices 
separate from the offices of the Department of Edu-
cation, the Department of Health and Human Serv-
ices, and the Department of Labor. 
‘‘(4) ADMINISTRATIVE
SUPPORT.—The Depart-
ment of Education shall provide administrative sup-
port for the Institute. 
‘‘(5) DAILY OPERATIONS.—The Director of the 
Institute shall administer the daily operations of the 
Institute. 
‘‘(b) DUTIES.—
‘‘(1) IN GENERAL.—To carry out its purpose, the 
Institute may—
‘‘(A) identify and disseminate rigorous sci-
entific research on the effectiveness of instruc-
tional practices and organizational strategies re-
lating to programs on the acquisition of skills in 
reading, writing, and English language acquisi-
tion for children, youth, and adults; 
‘‘(B) create and widely disseminate mate-
rials about the acquisition and application of 
skills in reading, writing, and English language
195
acquisition for children, youth, and adults based 
on scientifically based research; 
‘‘(C) ensure a broad understanding of sci-
entifically based research on reading, writing, 
and English language acquisition for children, 
youth, and adults among Federal agencies with 
responsibilities for administering programs that 
provide related services, including State and 
local educational agencies; 
‘‘(D) facilitate coordination and informa-
tion sharing among national organizations and 
associations interested in programs that provide 
services to improve skills in reading, writing, 
and English language acquisition for children, 
youth, and adults; 
‘‘(E) coordinate with the appropriate offices 
in the Department of Education, the Department 
of Health and Human Services, the Department 
of Labor, and other Federal agencies to apply the 
findings of scientifically based research related to 
programs on reading, writing, and English lan-
guage acquisition for children, youth, and 
adults; 
‘‘(F) establish a national electronic database 
and Internet site describing and fostering com-
196
munication on scientifically based programs in 
reading, writing, and English language acquisi-
tion for children, youth, and adults, including 
professional development programs; and 
‘‘(G) provide opportunities for technical as-
sistance, meetings, and conferences that will fos-
ter increased coordination among Federal, State, 
and local agencies and entities and improvement 
of reading, writing, and English language acqui-
sition skills for children, youth, and adults. 
‘‘(2) COORDINATION.—In identifying scientif-
ically based research on reading, writing, and 
English language acquisition for children, youth, and 
adults, the Institute shall use standards for research 
quality that are consistent with those established by 
the Institute of Education Sciences. 
‘‘(3) GRANTS, CONTRACTS, AND
COOPERATIVE 
AGREEMENTS.—
‘‘(A) IN
GENERAL.—The Institute may 
award grants to, or enter into contracts or coop-
erative agreements with, individuals, public or 
private institutions, agencies, organizations, or 
consortia of such individuals, institutions, agen-
cies, or organizations, to carry out the activities 
of the Institute.
197
‘‘(B) REGULATIONS.—The Director may 
adopt the general administrative regulations of 
the Department of Education, as applicable, for 
use by the Institute. 
‘‘(C) RELATION TO OTHER LAWS.—The du-
ties and powers of the Institute under this title 
are in addition to the duties and powers of the 
Institute under subparts 1, 2, and 3 of part B 
of the Elementary and Secondary Education Act 
of 1965 (commonly referred to as Reading First, 
Early Reading First, and the William F. Good-
ling Even Start Family Literacy Program, re-
spectively). 
‘‘(c) VISITING SCHOLARS.—The Institute may estab-
lish a visiting scholars program, with such stipends and 
allowances as the Director considers necessary, for out-
standing researchers, scholars, and individuals who—
‘‘(1) have careers in adult education, workforce 
development, or scientifically based reading, writing, 
or English language acquisition; and 
‘‘(2) can assist the Institute in translating re-
search into practice and providing analysis that ad-
vances instruction in the fields of reading, writing, 
and English language acquisition for children, youth, 
and adults.
198
‘‘(d) INTERNS AND VOLUNTEERS.—The Institute, in 
consultation with the National Institute for Literacy Advi-
sory Board, may award paid and unpaid internships to 
individuals seeking to assist the Institute in carrying out 
its purpose. Notwithstanding section 1342 of title 31, 
United States Code, the Institute may accept and use vol-
untary and uncompensated services as the Institute deter-
mines necessary. 
‘‘(e) NATIONAL INSTITUTE FOR LITERACY ADVISORY 
BOARD.—
‘‘(1) ESTABLISHMENT.—
‘‘(A) IN GENERAL.—There shall be a Na-
tional Institute for Literacy Advisory Board (in 
this section referred to as the ‘Board’), which 
shall consist of 10 individuals appointed by the 
President with the advice and consent of the Sen-
ate. 
‘‘(B) QUALIFICATIONS.—The Board shall be 
composed of individuals who—
‘‘(i) are not otherwise officers or em-
ployees of the Federal Government; and 
‘‘(ii) are knowledgeable about current 
effective scientifically based research find-
ings on instruction in reading, writing, and
199
English language acquisition for children, 
youth, and adults. 
‘‘(C) COMPOSITION.—The Board may in-
clude—
‘‘(i) representatives of business, indus-
try, labor, literacy organizations, adult edu-
cation providers, community colleges, stu-
dents with disabilities, and State agencies, 
including State directors of adult education; 
and 
‘‘(ii) individuals who, and representa-
tives of entities that, have been successful in 
improving skills in reading, writing, and 
English language acquisition for children, 
youth, and adults. 
‘‘(2) DUTIES.—The Board shall—
‘‘(A) make recommendations concerning the 
appointment of the Director of the Institute; 
‘‘(B) provide independent advice on the op-
eration of the Institute; 
‘‘(C) receive reports from the Interagency 
Group and the Director; and 
‘‘(D) review the biennial report to the Con-
gress under subsection (k).
200
‘‘(3) FEDERAL ADVISORY COMMITTEE ACT.—Ex-
cept as otherwise provided, the Board shall be subject 
to the provisions of the Federal Advisory Committee 
Act. 
‘‘(4) APPOINTMENTS.—
‘‘(A) IN
GENERAL.—Each member of the 
Board shall be appointed for a term of 3 years, 
except that the initial terms for members may be 
1, 2, or 3 years in order to establish a rotation 
in which one-third of the members are selected 
each year. Any such member may be appointed 
for not more than 2 consecutive terms. 
‘‘(B) VACANCIES.—Any member appointed 
to fill a vacancy occurring before the expiration 
of the term for which the member’s predecessor 
was appointed shall be appointed only for the re-
mainder of that term. A member may serve after 
the expiration of that member’s term until a suc-
cessor has taken office. 
‘‘(5) QUORUM.—A majority of the members of 
the Board shall constitute a quorum, but a lesser 
number may hold hearings. A recommendation of the 
Board may be passed only by a majority of the 
Board’s members present at a meeting for which there 
is a quorum.
201
‘‘(6) ELECTION OF OFFICERS.—The Chairperson 
and Vice Chairperson of the Board shall be elected by 
the members of the Board. The term of office of the 
Chairperson and Vice Chairperson shall be 2 years. 
‘‘(7) MEETINGS.—The Board shall meet at the 
call of the Chairperson or a majority of the members 
of the Board. 
‘‘(f) GIFTS, BEQUESTS, AND DEVISES.—
‘‘(1) IN GENERAL.—The Institute may accept, 
administer, and use gifts or donations of services, 
money, or property, whether real or personal, tangible 
or intangible. 
‘‘(2) RULES.—The Board shall establish written 
rules setting forth the criteria to be used by the Insti-
tute in determining whether the acceptance of con-
tributions of services, money, or property whether real 
or personal, tangible or intangible, would reflect unfa-
vorably upon the ability of the Institute or any em-
ployee to carry out the responsibilities of the Institute 
or employee, or official duties, in a fair and objective 
manner, or would compromise the integrity, or the 
appearance of the integrity, of the Institute’s pro-
grams or any official involved in those programs. 
‘‘(g) MAILS.—The Board and the Institute may use the 
United States mails in the same manner and under the
202
same conditions as other departments and agencies of the 
United States. 
‘‘(h) DIRECTOR.—The Secretary of Education, after 
considering recommendations made by the Board and con-
sulting with the Interagency Group, shall appoint and fix 
the pay of the Director of the Institute and, when necessary, 
shall appoint an Interim Director of the Institute. 
‘‘(i) APPLICABILITY
OF
CERTAIN
CIVIL
SERVICE 
LAWS.—The Director and staff of the Institute may be ap-
pointed without regard to the provisions of title 5, United 
States Code, governing appointments in the competitive 
service, and may be paid without regard to the provisions 
of chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates, 
except that an individual so appointed may not receive pay 
in excess of the annual rate of basic pay payable for level 
IV of the Executive Schedule. 
‘‘(j) EXPERTS AND CONSULTANTS.—The Institute may 
procure temporary and intermittent services under section 
3109(b) of title 5, United States Code. 
‘‘(k) BIENNIAL REPORT.—
‘‘(1) IN GENERAL.—The Institute shall submit a 
report biennially to the Committee on Education and 
the Workforce of the House of Representatives and the 
Committee on Health, Education, Labor, and Pen-
203
sions of the Senate. Each report submitted under this 
subsection shall include—
‘‘(A) a comprehensive and detailed descrip-
tion of the Institute’s operations, activities, fi-
nancial condition, and accomplishments in iden-
tifying and describing programs on reading, 
writing, and English language acquisition for 
children, youth, and adults for the period covered 
by the report; and 
‘‘(B) a description of how plans for the op-
eration of the Institute for the succeeding 2 fiscal 
years will facilitate achievement of the purpose 
of the Institute. 
‘‘(2) FIRST REPORT.—The Institute shall submit 
its first report under this subsection to the Congress 
not later than 1 year after the date of the enactment 
of the Job Training Improvement Act of 2005. 
‘‘(l) ADDITIONAL FUNDING.—In addition to the funds 
authorized under section 205 and reserved for the Institute 
under section 211, the Secretary of Education, the Secretary 
of Health and Human Services, the Secretary of Labor, or 
the head of any other Federal agency or department that 
participates in the activities of the Institute may provide 
funds to the Institute for activities that the Institute is au-
thorized to perform under this section.
204
‘‘SEC. 243. NATIONAL LEADERSHIP ACTIVITIES. 
‘‘The Secretary shall establish and carry out a pro-
gram of national leadership activities that may include the 
following: 
‘‘(1) Technical assistance, on request, including 
assistance—
‘‘(A) on request to volunteer community- 
and faith-based organizations, including but not 
limited to, improving their fiscal management, 
research-based instruction, and reporting re-
quirements, and the development of measurable 
objectives to carry out the requirements of this 
title; 
‘‘(B) in developing valid, measurable, and 
reliable performance data, and using perform-
ance information for the improvement of adult 
education basic skills, English language acquisi-
tion, and family literacy education programs; 
‘‘(C) on adult education professional devel-
opment; and 
‘‘(D) in using distance learning and im-
proving the application of technology in the 
classroom, including instruction in English lan-
guage acquisition for individuals who have lim-
ited English proficiency.
205
‘‘(2) Providing for the conduct of research on na-
tional literacy basic skill acquisition levels among 
adults, including the number of limited English pro-
ficient adults functioning at different levels of reading 
proficiency. 
‘‘(3) Improving the coordination, efficiency, and 
effectiveness of adult education and workforce develop-
ment services at the national, State, and local levels. 
‘‘(4) Determining how participation in adult 
education basic skills, English language acquisition, 
and family literacy education programs prepares in-
dividuals for entry into and success in postsecondary 
education and employment, and in the case of prison-
based services, the effect on recidivism. 
‘‘(5) Evaluating how different types of providers, 
including community and faith-based organizations 
or private for-profit agencies measurably improve the 
skills of participants in adult education basic skills, 
English language acquisition, and family literacy 
education programs. 
‘‘(6) Identifying model integrated basic and 
workplace skills education programs, including pro-
grams for individuals with limited English pro-
ficiency coordinated literacy and employment serv-
206
ices, and effective strategies for serving adults with 
disabilities. 
‘‘(7) Supporting the development of an entity 
that would produce and distribute technology-based 
programs and materials for adult education, basic 
skills, and family literacy education programs using 
an intercommunication system, as that term is de-
fined in section 397 of the Communications Act of 
1934, and expand the effective outreach and use of 
such programs and materials to adult education eligi-
ble providers. 
‘‘(8) Initiating other activities designed to im-
prove the measurable quality and effectiveness of 
adult education basic skills, English language acqui-
sition, and family literacy education programs na-
tionwide.’’. 
TITLE III—AMENDMENTS TO THE 
WAGNER-PEYSER ACT 
SEC. 301. AMENDMENTS TO THE WAGNER-PEYSER ACT. 
The Wagner-Peyser Act (29 U.S.C. 49 et. seq.) is 
amended—
(1) by striking sections 1 through 13; 
(2) in section 14 by inserting ‘‘of Labor’’ after 
‘‘Secretary’’; and 
(3) by amending section 15 to read as follows:
207
‘‘SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION 
SYSTEM. 
‘‘(a) SYSTEM CONTENT.—
‘‘(1) IN GENERAL.—The Secretary of Labor, in 
accordance with the provisions of this section, shall 
oversee the development, maintenance, and continuous 
improvement of a nationwide workforce and labor 
market information system that includes—
‘‘(A) statistical data from cooperative sta-
tistical survey and projection programs and data 
from administrative reporting systems that, 
taken together, enumerate, estimate, and project 
employment opportunities and conditions at na-
tional, State, and local levels in a timely man-
ner, including statistics on—
‘‘(i) employment and unemployment 
status of national, State, and local popu-
lations, including self-employed, part-time, 
and seasonal workers; 
‘‘(ii) industrial distribution of occupa-
tions, as well as current and projected em-
ployment 
opportunities, 
wages, 
benefits 
(where data is available), and skill trends 
by occupation and industry, with par-
ticular attention paid to State and local 
conditions;
208
‘‘(iii) the incidence of, industrial and 
geographical location of, and number of 
workers displaced by, permanent layoffs 
and plant closings; and 
‘‘(iv) employment and earnings infor-
mation maintained in a longitudinal man-
ner to be used for research and program 
evaluation; 
‘‘(B) information on State and local em-
ployment opportunities, and other appropriate 
statistical data related to labor market dynam-
ics, which—
‘‘(i) shall be current and comprehen-
sive; 
‘‘(ii) shall meet the needs identified 
through the consultations described in sub-
paragraphs (A) and (B) of subsection (e)(2); 
and 
‘‘(iii) shall meet the needs for the infor-
mation identified in section 134(d); 
‘‘(C) technical standards (which the Sec-
retary shall publish annually) for data and in-
formation described in subparagraphs (A) and 
(B) that, at a minimum, meet the criteria of 
chapter 35 of title 44, United States Code;
209
‘‘(D) procedures to ensure compatibility and 
additivity of the data and information described 
in subparagraphs (A) and (B) from national, 
State, and local levels; 
‘‘(E) procedures to support standardization 
and aggregation of data from administrative re-
porting systems described in subparagraph (A) 
of employment-related programs; 
‘‘(F) analysis of data and information de-
scribed in subparagraphs (A) and (B) for uses 
such as—
‘‘(i) national, State, and local policy-
making; 
‘‘(ii) implementation of Federal poli-
cies (including allocation formulas); 
‘‘(iii) program planning and evalua-
tion; and 
‘‘(iv) researching labor market dynam-
ics; 
‘‘(G) wide dissemination of such data, in-
formation, and analysis in a user-friendly man-
ner and voluntary technical standards for dis-
semination mechanisms; and 
‘‘(H) programs of—
210
‘‘(i) training for effective data dissemi-
nation; 
‘‘(ii) research and demonstration; and 
‘‘(iii) programs and technical assist-
ance. 
‘‘(2) INFORMATION TO BE CONFIDENTIAL.—
‘‘(A) IN GENERAL.—No officer or employee 
of the Federal Government or agent of the Fed-
eral Government may—
‘‘(i) use any submission that is fur-
nished for exclusively statistical purposes 
under the provisions of this section for any 
purpose other than the statistical purposes 
for which the submission is furnished; 
‘‘(ii) make any publication or media 
transmittal of the data contained in the 
submission described in clause (i) that per-
mits information concerning individual 
subjects to be reasonably inferred by either 
direct or indirect means; or 
‘‘(iii) permit anyone other than a 
sworn officer, employee, or agent of any 
Federal department or agency, or a con-
tractor (including an employee of a con-
tractor) of such department or agency, to
211
examine an individual submission described 
in clause (i), 
without the consent of the individual, agency, or 
other person who is the subject of the submission 
or provides that submission. 
‘‘(B) IMMUNITY
FROM
LEGAL
PROCESS.—
Any submission (including any data derived 
from the submission) that is collected and re-
tained by a Federal department or agency, or an 
officer, employee, agent, or contractor of such a 
department or agency, for exclusively statistical 
purposes under this section shall be immune 
from the legal process and shall not, without the 
consent of the individual, agency, or other person 
who is the subject of the submission or provides 
that submission, be admitted as evidence or used 
for any purpose in any action, suit, or other ju-
dicial or administrative proceeding. 
‘‘(C) RULE OF CONSTRUCTION.—Nothing in 
this section shall be construed to provide immu-
nity from the legal process for such submission 
(including any data derived from the submis-
sion) if the submission is in the possession of 
any person, agency, or entity other than the Fed-
eral Government or an officer, employee, agent,
212
or contractor of the Federal Government, or if 
the submission is independently collected, re-
tained, or produced for purposes other than the 
purposes of this Act. 
‘‘(b) SYSTEM RESPONSIBILITIES.—
‘‘(1) IN
GENERAL.—The workforce and labor 
market information system described in subsection (a) 
shall be planned, administered, overseen, and evalu-
ated through a cooperative governance structure in-
volving the Federal Government and States. 
‘‘(2) DUTIES.—The Secretary, with respect to 
data collection, analysis, and dissemination of labor 
employment statistics for the system, shall carry out 
the following duties: 
‘‘(A) Assign responsibilities within the De-
partment of Labor for elements of the workforce 
and labor market information system described 
in subsection (a) to ensure that all statistical 
and administrative data collected is consistent 
with appropriate Bureau of Labor Statistics 
standards and definitions. 
‘‘(B) Actively seek the cooperation of other 
Federal agencies to establish and maintain 
mechanisms for ensuring complementarity and 
nonduplication in the development and oper-
213
ation of statistical and administrative data col-
lection activities. 
‘‘(C) Eliminate gaps and duplication in 
statistical undertakings, with the systemization 
of wage surveys as an early priority. 
‘‘(D) In collaboration with the Bureau of 
Labor Statistics and States, develop and main-
tain the elements of the workforce and labor mar-
ket information system described in subsection 
(a), including the development of consistent pro-
cedures and definitions for use by the States in 
collecting the data and information described in 
subparagraphs (A) and (B) of subsection (a)(1). 
‘‘(E) Establish procedures for the system to 
ensure that—
‘‘(i) such data and information are 
timely; 
‘‘(ii) paperwork and reporting for the 
system are reduced to a minimum; and 
‘‘(iii) States and localities are fully in-
volved in the development and continuous 
improvement of the system at all levels, in-
cluding ensuring the provision, to such 
States and localities, of budget information
214
necessary for carrying out their responsibil-
ities under subsection (e). 
‘‘(c) NATIONAL ELECTRONIC TOOLS
TO PROVIDE 
SERVICES.—The Secretary is authorized to assist in the de-
velopment of national electronic tools that may be used to 
facilitate the delivery of core services described in section 
134 and to provide workforce information to individuals 
through the one-stop delivery systems described in section 
121 and through other appropriate delivery systems. 
‘‘(d) COORDINATION WITH THE STATES.—
‘‘(1) IN
GENERAL.—The Secretary, working 
through the Bureau of Labor Statistics and the Em-
ployment and Training Administration, shall regu-
larly consult with representatives of State agencies 
carrying out workforce information activities regard-
ing strategies for improving the workforce and labor 
market information system. 
‘‘(2) FORMAL CONSULTATIONS.—At least twice 
each year, the Secretary, working through the Bureau 
of Labor Statistics, shall conduct formal consultations 
regarding programs carried out by the Bureau of 
Labor Statistics with representatives of each of the 10 
Federal regions of the Department of Labor, elected 
from the State directors affiliated with State agencies 
that perform the duties described in subsection (e)(2).
215
‘‘(e) STATE RESPONSIBILITIES.—
‘‘(1) IN GENERAL.—In order to receive Federal 
financial assistance under this section, the Governor 
of a State shall—
‘‘(A) be responsible for the management of 
the portions of the workforce and labor market 
information system described in subsection (a) 
that comprise a statewide workforce and labor 
market information system and for the State’s 
participation in the development of the annual 
plan; 
‘‘(B) establish a process for the oversight of 
such system; 
‘‘(C) consult with State and local employ-
ers, participants, and local workforce investment 
boards about the labor market relevance of the 
data to be collected and disseminated through the 
statewide workforce and labor market informa-
tion system; 
‘‘(D) consult with State educational agen-
cies and local educational agencies concerning 
the provision of employment statistics in order to 
meet the needs of secondary school and postsec-
ondary school students who seek such informa-
tion;
216
‘‘(E) collect and disseminate for the system, 
on behalf of the State and localities in the State, 
the information and data described in subpara-
graphs (A) and (B) of subsection (a)(1); 
‘‘(F) maintain and continuously improve 
the statewide workforce and labor market infor-
mation system in accordance with this section; 
‘‘(G) perform contract and grant respon-
sibilities for data collection, analysis, and dis-
semination for such system; 
‘‘(H) conduct such other data collection, 
analysis, and dissemination activities as will en-
sure an effective statewide workforce and labor 
market information system; 
‘‘(I) actively seek the participation of other 
State and local agencies in data collection, anal-
ysis, and dissemination activities in order to en-
sure complementarity, compatibility, and useful-
ness of data; 
‘‘(J) participate in the development of the 
annual plan described in subsection (c); and 
‘‘(K) utilize the quarterly records described 
in section 136(f)(2) of the Workforce Investment 
Act of 1998 to assist the State and other States