‘‘(A) IN
GENERAL.—From the amount 
made available under subsection (a)(2) for a 
fiscal year, the Secretary shall reserve not more 
than 1⁄4 of 1 percent to provide assistance to 
outlying areas to carry out employment and 
training activities for adults, dislocated workers, 
and statewide workforce investment activities. 
‘‘(B) 
RESTRICTION.—The 
Republic 
of 
Palau shall cease to be eligible to receive fund-
ing under this paragraph upon entering into an 
agreement for extension of United States edu-
cational assistance under the Compact of Free 
Association (approved by the Compact of Free 
Association Amendments Act of 2003 (Public 
Law 108–188)) after the date of enactment of 
the Workforce Investment Improvement Act of 
2009. 
‘‘(2) STATES.—Subject to paragraph (5), of the 
remainder of the amount referred to under sub-
section (a)(2) for a fiscal year that is available after 
determining the amount to be reserved under para-
graph (1), the Secretary shall allot to the States for 
employment and training activities for adults, dis-
located workers, and statewide workforce investment 
activities— 
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‘‘(A) 26 percent in accordance with para-
graph (3); and 
‘‘(B) 74 percent in accordance with para-
graph (4). 
‘‘(3) BASE FORMULA.— 
‘‘(A) FISCAL YEAR 2011.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the amount referred to in paragraph 
(2)(A) shall be allotted for fiscal year 2011 
on the basis of allotment percentage of 
each State under section 6 of the Wagner- 
Peyser Act for fiscal year 2010. 
‘‘(ii) 
EXCESS
AMOUNTS.—If 
the 
amount referred to in paragraph (2)(A) for 
fiscal year 2011 exceeds the amount that 
was available for allotment to the States 
under the Wagner-Peyser Act for fiscal 
year 2010, such excess amount shall be al-
lotted on the basis of the relative number 
of individuals in the civilian labor force in 
each State, compared to the total number 
of individuals in the civilian labor force in 
all States, adjusted to ensure that no State 
receives less than 3⁄10 of one percent of 
such excess amount. 
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‘‘(iii) DEFINITION.—For purposes of 
this subparagraph, the term ‘allotment 
percentage’ means the percentage of the 
amounts allotted to States under section 6 
of the Wagner-Peyser Act that is received 
by the State involved for fiscal year 2010. 
‘‘(B) FISCAL
YEARS
2012
AND
THERE-
AFTER.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the amount referred to in paragraph 
(2)(A) shall be allotted for fiscal year 2012 
and each fiscal year thereafter on the basis 
of the allotment percentage of each State 
under this paragraph for the preceding fis-
cal year. 
‘‘(ii) 
EXCESS
AMOUNTS.—If 
the 
amount referred to in paragraph (2)(A) for 
fiscal year 2012 or any fiscal year there-
after exceeds the amount that was avail-
able for allotment under this paragraph for 
the prior fiscal year, such excess amount 
shall be allotted on the basis of the relative 
number of individuals in the civilian labor 
force in each State, compared to the total 
number of individuals in the civilian labor 
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force in all States, adjusted to ensure that 
no State receives less than 3⁄10 of one per-
cent of such excess amount. 
‘‘(iii) DEFINITION.—For purposes of 
this subparagraph, the term ‘allotment 
percentage’ means the percentage of the 
amounts allotted to States under this para-
graph in a fiscal year that is received by 
the State involved for such fiscal year. 
‘‘(4) FORMULA.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), of the amount referred to 
in paragraph (2)(B)— 
‘‘(i) 60 percent shall be allotted on the 
basis of the relative number of unemployed 
individuals in each State, compared to the 
total number of unemployed individuals in 
all States; 
‘‘(ii) 25 percent shall be allotted on 
the basis of the relative excess number of 
unemployed individuals in each State, com-
pared to the total excess number of unem-
ployed individuals in all States; and 
‘‘(iii) 15 percent shall be allotted on 
the basis of the relative number of dis-
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advantaged adults in each State, compared 
to the total number of disadvantaged 
adults in all States. 
‘‘(B) MINIMUM AND MAXIMUM PERCENT-
AGES.— 
‘‘(i) 
MINIMUM
PERCENTAGE.—The 
Secretary shall ensure that no State shall 
receive an allotment under this paragraph 
for a fiscal year that is less than 90 per-
cent of the allotment percentage of the 
State under this paragraph for the pre-
ceding fiscal year. 
‘‘(ii) MAXIMUM
PERCENTAGE.—Sub-
ject to clause (i), the Secretary shall en-
sure that no State shall receive an allot-
ment for a fiscal year under this para-
graph that is more than 130 percent of the 
allotment of the State under this para-
graph for the preceding fiscal year. 
‘‘(C) SMALL
STATE
MINIMUM
ALLOT-
MENT.—Subject to subparagraph (B), the Sec-
retary shall ensure that no State shall receive 
an allotment under this paragraph that is less 
than 2⁄10 of 1 percent of the amount available 
under subparagraph (A). 
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‘‘(D) DEFINITIONS.—For the purposes of 
this paragraph: 
‘‘(i) ALLOTMENT PERCENTAGE.—The 
term ‘allotment percentage’, used with re-
spect to fiscal year 2011 or a subsequent 
fiscal year, means a percentage of the 
amounts described in paragraph (2)(B) 
that is received through an allotment made 
under this paragraph for the fiscal year. 
The term, with respect to fiscal year 2010, 
means the percentage of the amounts allot-
ted to States under this chapter (as in ef-
fect on the day before the date of enact-
ment of the Workforce Investment Im-
provement Act of 2009) and under reem-
ployment service grants received by the 
State involved for fiscal year 2010. 
‘‘(ii) DISADVANTAGED
ADULT.—The 
term ‘disadvantaged adult’ means an indi-
vidual who is age 22 through 72 who re-
ceived an income, or is a member of a fam-
ily that received a total family income, 
that, in relation to family size, does not ex-
ceed the poverty line. 
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‘‘(iii) EXCESS
NUMBER.—The term 
‘excess number’ means, used with respect 
to the excess number of unemployed indi-
viduals within a State, the number that 
represents the number of unemployed indi-
viduals in excess of 41⁄2 percent of the ci-
vilian labor force in the State. 
‘‘(5) ADJUSTMENTS IN ALLOTMENTS BASED ON 
DIFFERENCES
WITH
UNCONSOLIDATED
FOR-
MULAS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
ensure that for any fiscal year no State has an 
allotment difference, as defined in subpara-
graph (C), that is less than zero. The Secretary 
shall adjust the amounts allotted to the States 
under this subsection in accordance with sub-
paragraph (B) if necessary to carry out this 
subparagraph. 
‘‘(B) ADJUSTMENTS IN ALLOTMENTS.— 
‘‘(i) REDISTRIBUTION
OF
EXCESS 
AMOUNTS.— 
‘‘(I) IN GENERAL.—If necessary 
to carry out subparagraph (A), the 
Secretary shall reduce the amounts 
that would be allotted under para-
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graphs (3) and (4) to States that have 
an excess allotment difference, as de-
fined in subclause (II), by the amount 
of such excess, and use such amounts 
to increase the allotments to States 
that have an allotment difference less 
than zero. 
‘‘(II) EXCESS
AMOUNTS.—For 
purposes of subclause (I), the term 
‘excess’ allotment difference means an 
allotment difference for a State that 
is— 
‘‘(aa) in excess of 3 percent 
of the amount described in sub-
paragraph (C)(i)(II); or 
‘‘(bb) in excess of a percent-
age established by the Secretary 
that is greater than 3 percent of 
the amount described in subpara-
graph (C)(i)(II) if the Secretary 
determines that such greater per-
centage is sufficient to carry out 
subparagraph (A). 
‘‘(ii) USE
OF
AMOUNTS
AVAILABLE 
UNDER NATIONAL RESERVE ACCOUNT.—If 
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the funds available under clause (i) are in-
sufficient to carry out subparagraph (A), 
the Secretary shall use funds reserved 
under section 132(a) in such amounts as 
are necessary to increase the allotments to 
States to meet the requirements of sub-
paragraph (A). Such funds shall be used in 
the same manner as the States use the 
other funds allotted under this subsection. 
‘‘(C) DEFINITION
OF
ALLOTMENT
DIF-
FERENCE.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘allotment dif-
ference’ means the difference between— 
‘‘(I) the total amount a State 
would receive of the amounts available 
for allotment under subsection (b)(2) 
for a fiscal year pursuant to para-
graphs (3) and (4); and 
‘‘(II) the total amount the State 
would receive of the amounts available 
for allotment under subsection (b)(2) 
for the fiscal year if such amounts 
were allotted pursuant to the uncon-
solidated formulas (applied as de-
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scribed in clause (iii)) that were used 
in allotting funds for fiscal year 2010. 
‘‘(ii) UNCONSOLIDATED FORMULAS.— 
For purposes of clause (i), the unconsoli-
dated formulas are: 
‘‘(I) The requirements for the al-
lotment of funds to the States con-
tained in section 132(b)(1)(B) of this 
Act (as in effect on the day before the 
date of enactment of the Workforce 
Investment Improvement Act of 2009) 
that were applicable to the allotment 
of funds under such section for fiscal 
year 2010. 
‘‘(II) The requirements for the 
allotment of funds to the States con-
tained in section 132(b)(2)(B) of this 
Act (as in effect on the day before the 
date of enactment of the Workforce 
Investment Improvement Act of 2009) 
that were applicable to the allotment 
of funds under such section for fiscal 
year 2010. 
‘‘(III) The requirements for the 
allotment of funds to the States that 
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were contained in section 6 of the 
Wagner-Peyser Act (as in effect on 
the day before the date of enactment 
of the Workforce Investment Improve-
ment Act of 2009) that were applica-
ble to the allotment of funds under 
such Act for fiscal year 2010. 
‘‘(IV) The requirements for the 
allotment of funds to the States that 
were established by the Secretary for 
Reemployment Services Grants that 
were applicable to the allotment of 
funds for such grants for fiscal year 
2010. 
‘‘(iii) PROPORTIONATE
APPLICATION 
OF
UNCONSOLIDATED
FORMULAS
BASED 
ON FISCAL YEAR 2010.—In calculating the 
amount under clause (i)(II), each of the 
unconsolidated 
formulas 
identified 
in 
clause (ii) shall be applied, respectively, 
only to the proportionate share of the total 
amount of funds available for allotment 
under subsection (b)(2) for a fiscal year 
that is equal to the proportionate share to 
which each of the unconsolidated formulas 
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applied with respect to the total amount of 
funds allotted to the States under all of 
the unconsolidated formulas in fiscal year 
2010. 
‘‘(iv) RULE OF CONSTRUCTION.—The 
amounts used to adjust the allotments to a 
State under subparagraph (B) for a fiscal 
year shall not be included in the calcula-
tion of the amounts under clause (i) for a 
subsequent fiscal year, including the cal-
culation of allocation percentages for a 
preceding fiscal year applicable to para-
graphs (3) and (4) and to the unconsoli-
dated formulas described in clause (ii).’’; 
and 
(3) in subsection (c)— 
(A) by amending paragraph (2) to read as 
follows: 
‘‘(2) AMOUNT.—The amount available for real-
lotment for a program year is equal to the amount 
by which the unexpended balance at the end of the 
program year prior to the program year for which 
the determination is made exceeds 30 percent of the 
total amount of funds available to the State under 
this section during such prior program year (includ-
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ing amounts allotted to the State in all prior pro-
gram years that remained available). For purposes 
of this paragraph, the expended balance is the 
amount that is the difference between— 
‘‘(A) the total amount of funds available to 
the State under this section during the program 
year prior to the program year for which the 
determination is made (including amounts allot-
ted to the State in all prior program years that 
remained available); and 
‘‘(B) the accrued expenditures during such 
prior program year.’’; 
(B) in paragraph (3)— 
(i) by striking ‘‘for the prior program 
year’’ and inserting ‘‘for the program year 
in which the determination is made’’; and 
(ii) by striking ‘‘such prior program 
year’’ and inserting ‘‘such program year’’; 
(C) by amending paragraph (4) to read as 
follows: 
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible State means a State that does 
not have an amount available for reallotment under 
paragraph (2) for the program year for which the 
determination under paragraph (2) is made.’’; and 
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(D) in paragraph (5), by striking ‘‘obliga-
tion’’ and inserting ‘‘accrued expenditure’’. 
(d) WITHIN STATE ALLOCATIONS.—Section 133 (29 
U.S.C. 2863) is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) RESERVATION FOR STATEWIDE ACTIVITIES.— 
The Governor of a State may reserve up to 40 percent 
of the total amount allotted to the State under section 132 
for a fiscal year to carry out the statewide activities de-
scribed in section 134(a).’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) ALLOCATIONS TO LOCAL AREAS.— 
‘‘(1) IN GENERAL.—Of the amounts allotted to 
the State under section 132(b)(2) and not reserved 
under subsection (a)— 
‘‘(A) 85 percent of such amounts shall be 
allocated by the Governor to local areas in ac-
cordance with paragraph (2); and 
‘‘(B) 15 percent of such amounts shall be 
allocated by the Governor to local areas in ac-
cordance with paragraph (3). 
‘‘(2) ESTABLISHED FORMULA.— 
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‘‘(A) IN GENERAL.—Of the amounts de-
scribed in paragraph (1)(A), the Governor shall 
allocate— 
‘‘(i) 60 percent on the basis of the rel-
ative number of unemployed individuals in 
each local area, compared to the total 
number of unemployed individuals in all 
local areas in the State; 
‘‘(ii) 25 percent on the basis of the 
relative excess number of unemployed indi-
viduals in each local area, compared to the 
total excess number of unemployed individ-
uals in all local areas in the State; and 
‘‘(iii) 15 percent shall be allotted on 
the basis of the relative number of dis-
advantaged adults in each local area, com-
pared to the total number of disadvantaged 
adults in all local areas in the State. 
‘‘(B) MINIMUM AND MAXIMUM PERCENT-
AGES.—The Governor shall ensure that no local 
area shall receive an allocation for a fiscal year 
under this paragraph that is less than 90 per-
cent or greater than 130 percent of the alloca-
tion percentage of the local area for the pre-
ceding fiscal year. 
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100 
‘‘(C) DEFINITIONS.— 
‘‘(i) ALLOCATION PERCENTAGE.—The 
term ‘allocation percentage’, used with re-
spect to fiscal year 2011 or a subsequent 
fiscal year, means a percentage of the 
amount described in paragraph (1)(A) that 
is received through an allocation made 
under this paragraph for the fiscal year. 
The term, with respect to fiscal year 2010, 
means the percentage of the amounts allo-
cated to local areas under this chapter (as 
in effect on the day before the date of en-
actment of the Workforce Investment Im-
provement Act of 2009) that is received by 
the local area involved for fiscal year 2010. 
‘‘(ii) DISADVANTAGED
ADULT.—The 
term ‘disadvantaged adult’ means an indi-
vidual who is age 22 through 72 who re-
ceived an income, or is a member of a fam-
ily that received a total family income, 
that, in relation to family size, does not ex-
ceed the poverty line. 
‘‘(iii) EXCESS
NUMBER.—The term 
‘excess number’ means, used with respect 
to the excess number of unemployed indi-
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101 
viduals within a local area, the number 
that represents the number of unemployed 
individuals in excess of 4.5 percent of the 
civilian labor force in the local area. 
‘‘(3) DISCRETIONARY ALLOCATION.—The Gov-
ernor shall allocate to local areas the amounts de-
scribed in paragraph (1)(B) based on a formula de-
veloped in consultation with the State board and 
local boards. Such formula shall be objective and 
geographically equitable and may include such demo-
graphic and economic factors as the Governor, after 
consultation with the State board and local boards, 
determines are appropriate. 
‘‘(4) LOCAL ADMINISTRATIVE COST LIMIT.— 
‘‘(A) IN GENERAL.—Of the amounts allo-
cated to a local area under this subsection and 
section 128(b) for a fiscal year, not more than 
10 percent of the amount may be used by the 
local boards for the administrative costs of car-
rying out local workforce investment activities 
under this chapter or chapter 4. 
‘‘(B) USE OF FUNDS.—Funds made avail-
able for administrative costs under subpara-
graph (A) may be used for the administrative 
costs of any of the local workforce investment 
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102 
activities described in this chapter or chapter 4, 
regardless of whether the funds were allocated 
under this subsection or section 128(b).’’; 
(3) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘para-
graph (2)(A) or (3) of’’; 
(B) by amending paragraph (2) to read as 
follows: 
‘‘(2) AMOUNT.—The amount available for re-
allocation for a program year is equal to the amount 
by which the unexpended balance at the end of the 
program year prior to the program year for which 
the determination is made exceeds 30 percent of the 
total amount of funds available to the local area 
under this section during such prior program year 
(including amounts allotted to the local area in prior 
program years that remain available). For purposes 
of this paragraph, the unexpended balance is the 
amount that is the difference between— 
‘‘(A) the total amount of funds available to 
the local area under this section during the pro-
gram year prior to the program year for which 
the determination is made (including amounts 
allocated to the local area in all prior program 
years that remained available); and 
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103 
‘‘(B) the accrued expenditures during such 
prior program year.’’; 
(C) by amending paragraph (3)— 
(i) by striking ‘‘subsection (b)(3)’’ the 
first two places it appears and inserting 
‘‘subsection (b)’’; 
(ii) by striking ‘‘the prior program 
year’’ and inserting ‘‘the program year in 
which the determination is made’’; 
(iii) by striking ‘‘such prior program 
year’’ and inserting ‘‘such program year’’; 
and 
(iv) by striking the last sentence; and 
(D) by amending paragraph (4) to read as 
follows: 
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible local area means a local area 
which does not have an amount available for re-
allocation under paragraph (2) for the program year 
for which the determination under paragraph (2) is 
made.’’. 
(e) USE OF FUNDS FOR EMPLOYMENT AND TRAIN-
ING ACTIVITIES.— 
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104 
(1) STATEWIDE EMPLOYMENT AND TRAINING 
ACTIVITIES.—Section 134(a) (29 U.S.C. 2864(a)) is 
amended to read as follows: 
‘‘(1) IN GENERAL.— 
‘‘(A) REQUIRED USE OF FUNDS.—Not less 
than 60 percent of the funds reserved by a Gov-
ernor under section 133(a) shall be used to sup-
port one-stop delivery systems and the provision 
of work ready services, and, in addition, may be 
used to support the provision of discretionary 
one-step delivery services, in local areas, con-
sistent with the local plan, through one-stop de-
livery systems by distributing funds to local 
areas in accordance with subparagraph (B). 
Such funds may be used by States to employ 
State personnel to provide such services in des-
ignated local areas in consultation with local 
boards. 
‘‘(B) 
METHOD
OF
DISTRIBUTING 
FUNDS.—The method of distributing funds 
under this paragraph shall be developed in con-
sultation with the State board and local boards. 
Such method of distribution, which may include 
the 
formula 
established 
under 
section 
121(h)(3), shall be objective and geographically 
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105 
equitable, and may include factors such as the 
number of centers in the local area that have 
been certified, the population served by such 
centers, and the performance of such centers. 
‘‘(C) OTHER USE OF FUNDS.—Funds re-
served by a Governor for a State— 
‘‘(i) under section 133(a) and not 
used under subparagraph (A), may be used 
for statewide activities described in para-
graph (2); and 
‘‘(ii) under section 133(a) and not 
used under subparagraph (A), and under 
section 128(a) may be used to carry out 
any of the statewide employment and 
training activities described in paragraph 
(3). 
‘‘(2) STATEWIDE
RAPID
RESPONSE
ACTIVI-
TIES.—A State shall carry out statewide rapid re-
sponse activities using funds reserved as described in 
section 133(a). Such activities shall include— 
‘‘(A) provision of rapid response activities, 
carried out in local areas by the State or by an 
entity designated by the State, working in con-
junction with the local boards and the chief 
elected officials in the local areas; and 
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106 
‘‘(B) provision of additional assistance to 
local areas that experience disasters, mass lay-
offs or plant closings, or other events that pre-
cipitate substantial increases in the number of 
unemployed individuals, carried out in local 
areas by the State, working in conjunction with 
the local boards and the chief elected officials in 
the local areas. 
‘‘(3) STATEWIDE ACTIVITIES.—Funds reserved 
by a Governor for a State as described in sections 
133(a) and 128(a) may be used for statewide activi-
ties including— 
‘‘(A) supporting the provision of work 
ready services described in section 134(c)(2) in 
the one-stop delivery system; 
‘‘(B) implementing innovative programs 
and strategies designed to meet the needs of all 
businesses in the State, including small busi-
nesses, which may include incumbent worker 
training programs, sectoral and industry cluster 
strategies and partnerships, including regional 
skills alliances, sectoral skills partnerships (in 
which representatives of multiple employers for 
a specific industry sector or group of related oc-
cupations, economic development agencies, pro-
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viders of training services described in sub-
section (c)(4), labor federations, and other enti-
ties that can provide needed supportive services 
tailored to the needs of workers in that sector 
or group, for a local area or region, identify 
gaps between the current and expected demand 
and supply of labor and skills in that sector or 
group for that area or region and develop a 
strategic skills gap action plan), career ladder 
programs, micro-enterprise and entrepreneurial 
training and support programs, utilization of ef-
fective business intermediaries, activities to im-
prove linkages between the one-stop delivery 
system in the State and all employers (includ-
ing small employers) in the State, and other 
business services and strategies that better en-
gage employers in workforce investment activi-
ties and make the workforce investment system 
more relevant to the needs of State and local 
businesses, consistent with the objectives of this 
title; 
‘‘(C) conducting evaluations under section 
136(e) of activities authorized under this chap-
ter and chapter 4 in coordination with evalua-
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108 
tions carried out by the Secretary under section 
172, research, and demonstration projects; 
‘‘(D) providing incentive grants to local 
areas for regional cooperation among local 
boards (including local boards in a designated 
region as described in section 116(c)), for local 
coordination of activities carried out under this 
Act, and for exemplary performance by local 
areas on the local performance measures; 
‘‘(E) providing technical assistance and ca-
pacity building to local areas, one-stop opera-
tors, one-stop partners, and eligible providers, 
including the development and training of staff, 
the development of exemplary program activi-
ties, and the provision of technical assistance to 
local areas that fail to meet local performance 
measures; 
‘‘(F) operating a fiscal and management 
accountability system under section 136(f); 
‘‘(G) carrying out monitoring and over-
sight of activities carried out under this chapter 
and chapter 4; 
‘‘(H) implementing innovative programs, 
such as incumbent worker training programs, 
programs and strategies designed to meet the 
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109 
needs of businesses in the State, including small 
businesses, and engage employers in workforce 
activities, and programs serving individuals 
with disabilities consistent with section 188; 
‘‘(I) developing strategies for effectively 
serving hard-to-serve populations and for inte-
grating programs and services among one-stop 
partners; and 
‘‘(J) carrying out activities to facilitate re-
mote access to services provided through a one- 
stop delivery system, including facilitating ac-
cess through the use of technology. 
‘‘(4) LIMITATION.—Not more than 5 percent of 
the funds allotted under section 132(b) shall be used 
by the State for administrative activities carried out 
under this subsection and section 128(a).’’. 
(2) LOCAL
EMPLOYMENT
AND
TRAINING
AC-
TIVITIES.—Section 134(b) (29 U.S.C. 2864(b)) is 
amended— 
(A) by striking ‘‘under paragraph (2)(A)’’ 
and 
all 
that 
follows 
through 
‘‘section 
133(b)(2)(B)’’ and inserting ‘‘under section 
133(b)’’; and 
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110 
(B) in paragraphs (1) and (2), by striking 
‘‘or dislocated workers, respectively’’ and insert-
ing ‘‘and dislocated workers’’. 
(3) CONFORMING
AMENDMENT.—Section 134 
(29 U.S.C. 2864) is further amended— 
(A) by striking subsection (c); and 
(B) by redesignating subsections (d) and 
(e) as subsections (c) and (d), respectively. 
(4) 
REQUIRED
LOCAL
EMPLOYMENT
AND 
TRAINING ACTIVITIES.— 
(A) 
ALLOCATED
FUNDS.—Section 
134(c)(1) (29 U.S.C. 2864(c)(1)) (as so redes-
ignated) is amended to read as follows: 
‘‘(1) IN GENERAL.—Funds allocated to a local 
area for adults under section 133(b) shall be used— 
‘‘(A) to establish a one-stop delivery sys-
tem as described in section 121(e); 
‘‘(B) to provide the work ready services de-
scribed in paragraph (2) through the one-stop 
delivery system in accordance with such para-
graph; 
‘‘(C) to provide training services described 
in paragraph (4) to adults described in such 
paragraph; and 
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111 
‘‘(D) to designate a dedicated business liai-
son in the local area who may be funded with 
funds provided under this title or from other 
sources to establish and develop relationships 
and networks with large and small employers 
and their intermediaries.’’. 
(B) WORK
READY
SERVICES.—Section 
134(c)(2) (29 U.S.C. 2864(c)(2)) (as so redes-
ignated) is amended— 
(i) in the heading, by striking ‘‘CORE 
SERVICES’’ and inserting ‘‘WORK
READY 
SERVICES’’; 
(ii) by striking ‘‘core services’’ and in-
serting ‘‘work ready services’’; 
(iii) by striking ‘‘who are adults or 
dislocated workers’’; 
(iv) in subparagraph (A), by inserting 
‘‘and assistance in obtaining eligibility de-
terminations under the other one-stop 
partner programs through such activities 
as assisting in the submission of applica-
tions, the provision of information on the 
results of such applications, the provision 
of intake services and information, and, 
where appropriate and consistent with the 
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112 
authorizing statute of the one-stop partner 
program, determinations of eligibility’’ 
after ‘‘subtitle’’; 
(v) by amending subparagraph (D) to 
read as follows: 
‘‘(D) labor exchange services, including— 
‘‘(i) job search and placement assist-
ance, and where appropriate career coun-
seling; 
‘‘(ii) appropriate recruitment services 
for employers, including small employers, 
in the local area, which may include serv-
ices described in this subsection, including 
information and referral to specialized 
business services not traditionally offered 
through the one-stop delivery system; and 
‘‘(iii) reemployment services provided 
to 
unemployment 
claimants, 
including 
claimants identified as in need of such 
services under the worker profiling system 
established under section 303(j) of the So-
cial Security Act (42 U.S.C. 503(j);’’; 
(vi) in subparagraph (E), by striking 
‘‘employment 
statistics’’ 
and 
inserting 
‘‘workforce and labor market information’’; 
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113 
(vii) in subparagraph (I), by inserting 
‘‘and the administration of the work test 
for the unemployment compensation sys-
tem’’ after ‘‘compensation’’; 
(viii) by amending subparagraph (J) 
to read as follows: 
‘‘(J) assistance in establishing eligibility 
for programs of financial aid assistance for 
training and education programs that are not 
funded under this Act and are available in the 
local area; and’’; and 
(ix) by redesignating subparagraph 
(K) as subparagraph (V); and 
(x) by inserting the following new sub-
paragraphs after subparagraph (J): 
‘‘(K) the provision of information from of-
ficial publications of the Internal Revenue Serv-
ice, regarding Federal tax credits available to 
individuals relating to education, job training 
and employment, including the Hope Scholar-
ship Credit and the Lifetime Learning Credit 
(26 U.S.C. 25A), and the Earned Income Tax 
Credit (26 U.S.C. 32); 
‘‘(L) services relating to the Work Oppor-
tunity Tax Credit (26 U.S.C. 51); 
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114 
‘‘(M) comprehensive and specialized assess-
ments of the skill levels and service needs of 
adults and dislocated workers, which may in-
clude— 
‘‘(i) diagnostic testing and use of 
other assessment tools; and 
‘‘(ii) in-depth interviewing and evalua-
tion to identify employment barriers and 
appropriate employment goals; 
‘‘(N) development of an individual employ-
ment plan, to identify the employment goals, 
appropriate achievement objectives, and appro-
priate combination of services for the participa-
tion to achieve the employment goals; 
‘‘(O) group counseling; 
‘‘(P) individual counseling and career plan-
ning; 
‘‘(Q) case management; 
‘‘(R) short-term pre-vocational services, in-
cluding development of learning skills, commu-
nications skills, interviewing skills, punctuality, 
personal maintenance skills, and professional 
conduct, to prepare individuals for unsubsidized 
employment or training; 
‘‘(S) internships and work experience; 
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‘‘(T) literacy activities relating to basic 
work readiness, information and communication 
technology literacy activities, and financial lit-
eracy activities, if such activities are not avail-
able to participants in the local area under pro-
grams administered under the Adult Education 
and Family Literacy Act (20 U.S.C. 2901 et 
seq.); 
‘‘(U) out-of-area job search assistance and 
relocation assistance; and’’. 
(C) DELIVERY
OF
SERVICES.—Section 
134(c)(3) (29 U.S.C. 2864(c)(3)) (as so redes-
ignated) is amended to read as follows: 
‘‘(3) DELIVERY OF SERVICES.—The work ready 
services described in section 132(c)(2) shall be pro-
vided through the one-stop delivery system and may 
be provided through contracts with public, private 
for-profit, and private nonprofit service providers, 
approved by the local board.’’. 
(D) 
TRAINING
SERVICES.—Section 
134(c)(4) (29 U.S.C. 2864(c)(4)) (as so redes-
ignated) is amended— 
(i) by amending subparagraph (A) to 
read as follows: 
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116 
‘‘(A) IN GENERAL.—Funds allocated to a 
local area under section 133(b) shall be used to 
provide training services to adults who— 
‘‘(i) after an interview, evaluation, or 
assessment, and case management, have 
been determined by a one-stop operator or 
one-stop partner, as appropriate, to— 
‘‘(I) be in need of training serv-
ices to obtain or retain suitable em-
ployment; and 
‘‘(II) have the skills and quali-
fications to successfully participate in 
the selected program of training serv-
ices; 
‘‘(ii) select programs of training serv-
ices that are directly linked to the employ-
ment opportunities in the local area in-
volved or in another area in which the 
adults receiving such services are willing to 
commute or relocate; 
‘‘(iii) who meet the requirements of 
subparagraph (B); and 
‘‘(iv) who are determined eligible in 
accordance with the priority system in ef-
fect under subparagraph (E).’’; 
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117 
(ii) in subparagraph (B)(i), by strik-
ing ‘‘Except’’ and inserting ‘‘Notwith-
standing section 479B of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087uu) 
and except’’; 
(iii) by amending subparagraph (D) to 
read as follows: 
‘‘(D) TRAINING SERVICES.—Training serv-
ices authorized under this paragraph may in-
clude— 
‘‘(i) occupational skills training; 
‘‘(ii) on-the-job training; 
‘‘(iii) skill upgrading and retraining; 
‘‘(iv) entrepreneurial training; 
‘‘(v) education activities leading to a 
high school diploma or its equivalent, in-
cluding a General Educational Develop-
ment credential, in combination with, con-
currently or subsequently, occupational 
skills training; 
‘‘(vi) adult education and literacy ac-
tivities provided in conjunction with other 
training authorized under this subpara-
graph; 
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118 
‘‘(vii) workplace training combined 
with related instruction; and 
‘‘(viii) occupational skills training that 
incorporates English language acquisi-
tion.’’; 
(iv) by amending subparagraph (E) to 
read as follows: 
‘‘(E) PRIORITY.— 
‘‘(i) IN GENERAL.—A priority shall be 
given to unemployed individuals and em-
ployed workers who need training services 
to retain employment or to advance in a 
career for the provision of intensive and 
training services under this subsection. 
‘‘(ii) DETERMINATIONS.—The Gov-
ernor and the appropriate local board shall 
direct the one-stop operators in the local 
area with regard to making determinations 
with respect to the priority of service under 
this subparagraph.’’; 
(v) in subparagraph (F)— 
(I) in clause (ii)— 
(aa) in the matter preceding 
clause (I), by striking ‘‘sub-
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section (c)’’ and inserting ‘‘sec-
tion 121’’; and 
(bb) in clause (II), by strik-
ing ‘‘subsections (e) and (h)’’ and 
inserting ‘‘subsection (i)’’; and 
(II) by striking clause (iii) and 
inserting the following: 
‘‘(iii) CAREER
ENHANCEMENT
AC-
COUNTS.—An individual who seeks train-
ing services and who is eligible pursuant to 
subparagraph (A), may, in consultation 
with a case manager, select an eligible pro-
vider of training services from the list or 
identifying information for providers de-
scribed in clause (ii)(I). Upon such selec-
tion, the one-stop operator involved shall, 
to the extent practicable, refer such indi-
vidual to the eligible provider of training 
services, and arrange for payment for such 
services through a career enhancement ac-
count. 
‘‘(iv) 
COORDINATION.—Each 
local 
board may, through one-stop centers, co-
ordinate career enhancement accounts with 
other Federal, State, local, or private job 
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training programs or sources to assist the 
individual in obtaining training services. 
‘‘(v) ENHANCED
CAREER
ENHANCE-
MENT ACCOUNTS.—Each local board may, 
through one-stop centers, assist individuals 
receiving career enhancement accounts 
through the establishment of such accounts 
that include, in addition to the funds pro-
vided under this paragraph, funds from 
other programs and sources that will assist 
the individual in obtaining training serv-
ices.’’; and 
(vi) in subparagraph (G)— 
(I) in the subparagraph heading, 
by striking ‘‘INDIVIDUAL
TRAINING 
ACCOUNTS’’ and inserting ‘‘CAREER 
ENHANCEMENT ACCOUNTS’’; 
(II) in clause (i) by striking ‘‘in-
dividual training accounts’’ and in-
serting 
‘‘career 
enhancement 
ac-
counts’’; 
(III) in clause (ii)— 
(aa) by striking ‘‘an indi-
vidual training account’’ and in-
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121 
serting ‘‘a career enhancement 
account’’; 
(bb) in subclause (II), by 
striking ‘‘individual training ac-
counts’’ and inserting ‘‘career en-
hancement accounts’’; 
(cc) in subclause (II) by 
striking ‘‘or’’ after the semicolon; 
(dd) in subclause (III) by 
striking the period and inserting 
‘‘; or’’; and 
(ee) by adding at the end of 
the following: 
‘‘(IV) the local board determines 
that it would be most appropriate to 
award a contract to an institution of 
higher education in order to facilitate 
the training of multiple individuals in 
high-demand occupations, if such con-
tract does not limit customer choice.’’. 
(IV) in clause (iv)— 
(aa) by redesignating sub-
clause (IV) as subclause (V) and 
inserting after subclause (III) the 
following: 
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122 
‘‘(IV) Individuals with disabil-
ities.’’. 
(5) PERMISSIBLE ACTIVITIES.—Section 134(d) 
(as so redesignated) (29 U.S.C. 2864(d)) is amend-
ed— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) DISCRETIONARY ONE-STOP DELIVERY AC-
TIVITIES.— 
‘‘(A) IN GENERAL.—Funds allocated to a 
local area under section 133(b) may be used to 
provide, through the one-stop delivery system— 
‘‘(i) customized screening and referral 
of qualified participants in training serv-
ices to employers; 
‘‘(ii) customized employment-related 
services to employers on a fee-for-service 
basis; 
‘‘(iii) customer support to navigate 
among multiple services and activities for 
special participant populations that face 
multiple barriers to employment, including 
individuals with disabilities; 
‘‘(iv) employment and training assist-
ance provided in coordination with child 
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123 
support enforcement activities of the State 
agency carrying out subtitle D of title IV 
of the Social Security Act (42 U.S.C. 651 
et seq.); 
‘‘(v) activities to improve services to 
local employers, including small employers 
in the local area, and increase linkages be-
tween the local workforce investment sys-
tem and employers; 
‘‘(vi) activities to facilitate remote ac-
cess to services provided through a one- 
stop delivery system, including facilitating 
access through the use of technology; and 
‘‘(vii) activities to carry out business 
services and strategies that meet the work-
force investment needs of local area em-
ployers, as determined by the local board, 
consistent with the local plan under section 
118, which services— 
‘‘(I) may be provided through ef-
fective business intermediaries work-
ing in conjunction with the local 
board, and may also be provided on a 
fee-for-service basis or through the 
leveraging of economic development 
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124 
and other resources as determined ap-
propriate by the local board; and 
‘‘(II) may include— 
‘‘(aa) identifying and dis-
seminating 
to 
business, 
edu-
cators, and job seekers, informa-
tion related to the workforce, eco-
nomic and community develop-
ment needs, and opportunities of 
the local economy; 
‘‘(bb) development and deliv-
ery of innovative workforce in-
vestment services and strategies 
for area businesses, which may 
include sectoral, industry cluster, 
regional skills alliances, career 
ladder, skills upgrading, skill 
standard development and certifi-
cation, apprenticeship, and other 
effective initiatives for meeting 
the workforce investment needs 
of area employers and workers; 
‘‘(cc) participation in semi-
nars and classes offered in part-
nership with relevant organiza-
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125 
tions focusing on the workforce- 
related needs of area employers 
and job seekers; 
‘‘(dd) training consulting, 
needs analysis, and brokering 
services for area businesses, in-
cluding the organization and ag-
gregation of training (which may 
be paid for with funds other than 
those provided under this title), 
for individual employers and coa-
litions of employers with similar 
interests, products, or workforce 
needs; 
‘‘(ee) assistance to area em-
ployers in the aversion of layoffs 
and in managing reductions in 
force in coordination with rapid 
response activities; 
‘‘(ff) the marketing of busi-
ness services offered under this 
title, to appropriate area employ-
ers, including small and mid- 
sized employers; 
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‘‘(gg) information referral 
on concerns affecting local em-
ployers; and 
‘‘(hh) other business services 
and strategies designed to better 
engage employers in workforce 
investment activities and to make 
the workforce investment system 
more relevant to the workforce 
investment needs of area busi-
nesses, as determined by the local 
board to be consistent with the 
objectives of this title. 
‘‘(B) WORK
SUPPORT
ACTIVITIES
FOR 
LOW-WAGE WORKERS.— 
‘‘(i) IN GENERAL.—Funds allocated to 
a local area under 133(b) may be used to 
provide, through the one-stop delivery sys-
tem and in collaboration with the appro-
priate programs and resources of the one- 
stop partners, work support activities de-
signed to assist low-wage workers in re-
taining and enhancing employment. The 
one stop partners shall coordinate the ap-
propriate programs and resources of the 
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127 
partners with the activities and resources 
provided under this subparagraph. 
‘‘(ii) ACTIVITIES.—The activities de-
scribed in clause (i) may include assistance 
in accessing financial supports for which 
such workers may be eligible and the provi-
sion of activities available through the one- 
stop delivery system in a manner that en-
hances the opportunities of such workers 
to participate, such as the provision of em-
ployment and training activities during 
nontraditional hours and the provision of 
on-site child care while such activities are 
being provided.’’; 
(B) in subparagraph 3(A), by striking 
‘‘Funds allocated’’ and all that follows through 
‘‘section 133(b)(2)(B)’’ and insert ‘‘Funds allo-
cated to a local area under section 133(b)’’; and 
(C) by adding at the end the following: 
‘‘(4) INCUMBENT
WORKER
TRAINING
PRO-
GRAMS.— 
‘‘(A) IN GENERAL.—The local board may 
use up to 10 percent of the funds allocated to 
a local area under section 133(b) to carry out 
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128 
incumbent worker training programs in accord-
ance with this paragraph. 
‘‘(B) TRAINING ACTIVITIES.—The training 
programs for incumbent workers under this 
paragraph shall be carried out by the local area 
in conjunction with the employers of such work-
ers for the purpose of assisting such workers in 
obtaining the skills necessary to retain employ-
ment and avert layoffs. 
‘‘(C) EMPLOYER MATCH REQUIRED.— 
‘‘(i) IN GENERAL.—Employers partici-
pating in programs under this paragraph 
shall be required to pay a proportion of the 
costs of providing the training to the in-
cumbent workers of the employers. The 
State board, in consultation with the local 
board as appropriate, shall establish the 
required portion of such costs, which may 
include in-kind contributions. The required 
portion shall not be less than— 
‘‘(I) 10 percent of the costs, for 
employers with 50 or fewer employees; 
‘‘(II) 25 percent of the costs, for 
employers with more than 50 employ-
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129 
ees but fewer than 100 employees; 
and 
‘‘(III) 50 percent of the costs, for 
employers with 100 or more employ-
ees. 
‘‘(ii) CALCULATION OF MATCH.—The 
wages paid by an employer to a worker 
while they are attending training may be 
included as part of the requirement pay-
ment of the employer.’’. 
(6) PRIORITY
FOR
PLACEMENT
IN
PRIVATE 
SECTOR
JOBS.—Section 134 (29 U.S.C. 2864) is 
further amended by adding at the end the following: 
‘‘(e) PRIORITY FOR PLACEMENT IN PRIVATE SECTOR 
JOBS.—In providing employment and training activities 
authorized under this section, the State and local board 
shall give priority to placing participants in jobs in the 
private sector.’’. 
SEC. 113. PERFORMANCE ACCOUNTABILITY SYSTEM. 
(a) STATE PERFORMANCE MEASURES.— 
(1) 
IN
GENERAL.—Section 
136(b)(1) 
(29 
U.S.C. 2871(b)(1)) is amended— 
(A) in subparagraph (A)(i), by striking 
‘‘and the customer satisfaction indicator of per-
formance described in paragraph (2)(B)’’; and 
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130 
(B) in subparagraph (A)(ii), by striking 
‘‘paragraph (2)(C)’’ and inserting ‘‘paragraph 
(2)(B)’’. 
(2) INDICATORS
OF
PERFORMANCE.—Section 
136(b)(2) (29 U.S.C. 2871(b)(2)) is amended— 
(A) in subparagraph (A)(i)— 
(i) by striking ‘‘(except for self-service 
and information activities) and (for partici-
pants who are eligible youth age 19 
through 21) for youth activities authorized 
under section 129’’; 
(ii) in subclause (II), by striking ‘‘6 
months after entry into the employment’’ 
and inserting ‘‘and’’ after the semicolon; 
and 
(iii) by striking subclause (III), and 
inserting the following: 
‘‘(III) average earnings from un-
subsidized employment.’’; 
(B) by striking subclause (IV) of subpara-
graph (A)(i); 
(C) by amending subparagraph (A)(ii) to 
read as follows: 
‘‘(ii) CORE INDICATORS FOR ELIGIBLE 
YOUTH.—The core indicators of perform-
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131 
ance for youth activities authorized under 
section 129 shall consist of— 
‘‘(I) entry into employment, edu-
cation or advanced training, or mili-
tary service; 
‘‘(II) attainment of secondary 
school diploma, General Educational 
Development credential (GED), or 
other State-recognized equivalent or 
certificate (including recognized alter-
native standards for individuals with 
disabilities); and 
‘‘(III) 
literacy 
or 
numeracy 
gains.’’; 
(D) by striking subparagraph (B); and 
(E) by redesignating subparagraph (C) as 
subparagraph (B), and by adding at the end of 
such subparagraph the following new sentence: 
‘‘Such indicators may include customer satisfac-
tion of employers and participants with services 
received from the workforce investment activi-
ties authorized under this subtitle.’’. 
(3) 
LEVELS
OF
PERFORMANCE.—Section 
136(b)(3)(A) (29 U.S.C. 2871(b)(3)(A)) is amend-
ed— 
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132 
(A) in clause (i), by striking ‘‘and the cus-
tomer satisfaction indicator described in para-
graph (2)(B)’’; 
(B) in clause (ii), by striking ‘‘and the cus-
tomer satisfaction indicator of performance, for 
the first 3’’ and inserting ‘‘for the 2’’; 
(C) in clause (iii)— 
(i) in the heading, by striking ‘‘FOR 
FIRST 3 YEARS’’; and 
(ii) by striking ‘‘and the customer sat-
isfaction indicator of performance, for the 
first 3’’ and inserting ‘‘for the 2’’; 
(D) in clause (iv)— 
(i) by striking subclause (I); 
(ii) by redesignating subclauses (II) 
and (III) as subclauses (I) and (II), re-
spectively; and 
(iii) in subclause (I) (as so redesig-
nated)— 
(I) by striking ‘‘taking into ac-
count’’ and inserting ‘‘which shall be 
adjusted based on’’; 
(II) by inserting ‘‘, such as un-
employment rates and job losses or 
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133 
gains in particular industries’’ after 
‘‘economic conditions’’; and 
(III) by inserting ‘‘, such as indi-
cators of poor work history, lack of 
work 
experience, 
dislocation 
from 
high-wage employment, low levels of 
literacy or English proficiency, dis-
ability status, including the number of 
veterans with disabilities, and welfare 
dependency’’ after ‘‘program’’; 
(E) by striking clause (v) and redesig-
nating clause (vi) as clause (v); and 
(F) in clause (vi) (as so redesignated)— 
(i) by striking ‘‘clause (iv)(II)’’ and 
inserting ‘‘subclause (iv)(I)’’; and 
(ii) striking ‘‘or (v)’’. 
(4) 
ADDITIONAL
INDICATORS.—Section 
136(b)(3)(B) is amended by striking ‘‘paragraph 
(2)(C)’’ and inserting ‘‘paragraph (2)(B)’’. 
(b) LOCAL
PERFORMANCE
MEASURES.—Section 
136(c) (29 U.S.C. 2871(c)) is amended— 
(1) in paragraph (1)(A)(i), by striking ‘‘, and 
the customer satisfaction indicator of performance 
described in subsection (b)(2)(B),’’; 
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134 
(2) in paragraph (1)(A)(ii), by striking ‘‘sub-
section 
(b)(2)(C)’’ 
and 
inserting 
‘‘subsection 
(b)(2)(B)’’; and 
(3) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) DETERMINATIONS.—In determining such 
local levels of performance, the local board, the chief 
elected official, and the Governor shall ensure such 
levels are adjusted based on the specific economic 
characteristics (such as unemployment rates and job 
losses or gains in particular industries), demographic 
characteristics, or other characteristics of the popu-
lation to be served in the local area, such as poor 
work history, lack of work experience, dislocation 
from high-wage employment, low levels of literacy or 
English proficiency, disability status, including the 
number of veterans with disabilities, and welfare de-
pendency.’’. 
(c) REPORT.—Section 136(d) (29 U.S.C. 2871(d)) is 
amended— 
(1) in paragraph (1), by striking ‘‘and the cus-
tomer satisfaction indicator’’ in both places that it 
appears; 
(2) in paragraph (2)— 
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135 
(A) in subparagraph (A), by striking ‘‘sec-
tion 
134(d)(4)’’ 
and 
inserting 
‘‘section 
134(c)(4)’’; 
(B) in subparagraph (E), by striking ‘‘(ex-
cluding participants who received only self-serv-
ice and informational activities); and’’ and in-
serting a semicolon; 
(C) in subparagraph (F), by striking the 
period and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(G) the number of participants who have 
received services other than followup services, 
authorized under this title, in the form of work 
ready services described in section 134(c)(2), 
and training services described in section 
134(c)(4), respectively; 
‘‘(H) the number of participants who have 
received followup services authorized under this 
title; and 
‘‘(I) the cost per participant for services 
authorized under this title.’’; and 
(3) by adding at the end the following: 
‘‘(4) DATA VALIDATION.—In preparing the re-
ports described in this subsection, the States shall 
establish procedures, consistent with guidelines 
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136 
issued by the Secretary, to ensure the information 
contained in the report is valid and reliable.’’. 
(d) SANCTIONS
FOR STATE.—Section 136(g) (29 
U.S.C. 2871(g)) is amended— 
(1) in paragraph (1)(A), by striking ‘‘or (B)’’; 
and 
(2) in paragraph (2), by striking ‘‘section 503’’ 
and inserting ‘‘section 136(i)’’. 
(e) SANCTIONS FOR LOCAL AREAS.—Section 136(h) 
(29 U.S.C. 2871(h)) is amended— 
(1) in paragraph (1), by striking ‘‘or (B)’’; and 
(2) by amending paragraph (2)(B) to read as 
follows: 
‘‘(B) APPEAL TO GOVERNOR.—A local area 
that is subject to a reorganization plan under 
subparagraph (A) may, not later than 30 days 
after receiving notice of the reorganization plan, 
appeal to the Governor to rescind or revise such 
plan. In such case, the Governor shall make a 
final decision not later than 30 days after the 
receipt of the appeal.’’. 
(f) INCENTIVE GRANTS.—Section 136(i) (29 U.S.C. 
2871(i)) is amended to read as follows: 
‘‘(i) INCENTIVE GRANTS FOR STATES AND LOCAL 
AREAS.— 
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137 
‘‘(1) INCENTIVE GRANTS FOR STATES.— 
‘‘(A) IN
GENERAL.—From funds appro-
priated under section 174, the Secretary may 
award incentive grants to States for exemplary 
performance in carrying programs under chap-
ters 4 and 5 of this title. Such awards may be 
based on States meeting or exceeding the per-
formance measures established under this sec-
tion, on the performance of the State in serving 
special populations, including the levels of serv-
ice provided and the performance outcomes, and 
such other factors relating to the performance 
of the State under this title as the Secretary 
determines is appropriate. 
‘‘(B) USE OF FUNDS.—The funds awarded 
to a State under this paragraph may be used to 
carry out any activities authorized under chap-
ters 4 and 5 of this title, including— 
‘‘(i) activities that provide technical 
assistance to local areas to replicate best 
practices for workforce and education pro-
grams; 
‘‘(ii) activities that support the needs 
of businesses, especially for incumbent 
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138 
workers and enhancing opportunities for 
retention and advancement; 
‘‘(iii) activities that support linkages 
between the workforce and education pro-
grams, and secondary, post-secondary, or 
career and technical education programs, 
including activities under the Carl D. Per-
kins Career and Technical Education Act 
(20 U.S.C. 2301 et seq.), the Adult Edu-
cation and Family Literacy Act (20 U.S.C. 
9201 et seq.), and the Rehabilitation Act 
of 1973 (29 U.S.C. 701 et seq.); 
‘‘(iv) activities that support regional 
economic development plans that support 
high-wage, high-skill, or high-demand occu-
pations leading to self-sufficiency; 
‘‘(v) activities that coordinate the 
workforce and education programs with 
other Federal and State programs related 
to the workforce and education programs; 
‘‘(vi) activities that support the devel-
opment of an integrated performance in-
formation system that includes common 
measures for one-stop partner programs 
described in section 121; 
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‘‘(vii) activities that support activities 
to improve performance in workforce and 
education programs and program coordina-
tion of workforce and education programs; 
or 
‘‘(viii) activities that leverage addi-
tional training resources, other than those 
provided through workforce and education 
programs, for adults and youth. 
‘‘(2) INCENTIVE GRANTS FOR LOCAL AREAS.— 
‘‘(A) IN GENERAL.—From funds reserved 
under sections 128(a) and 133(a), the Governor 
may award incentive grants to local areas for 
exemplary performance with respect to the 
measures established under this section and 
with the performance of the local area in serv-
ing special populations, including the levels of 
service and the performance outcomes. 
‘‘(B) USE OF FUNDS.—The funds awarded 
to a local area may be used to carry out activi-
ties authorized for local areas under chapters 4 
and 5 of this title, the Adult Education and 
Family Literacy Act, and the Rehabilitation Act 
of 1973 (referred to in this subsection as ‘work-
force and education programs’), and such inno-
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vative projects or programs that increase co-
ordination and enhance service to participants 
in such programs, particularly hard-to-serve 
populations, as may be approved by the Gov-
ernor, including— 
‘‘(i) activities that support the needs 
of businesses, especially for incumbent 
workers and enhancing opportunities for 
retention and advancement; 
‘‘(ii) activities that support linkages 
between the workforce and education pro-
grams, and secondary, post-secondary, or 
career and technical education programs, 
including activities under the Carl D. Per-
kins Career and Technical Education Act 
(20 U.S.C. 2301 et seq.), the Adult Edu-
cation and Family Literacy Act (20 U.S.C. 
9201 et seq.), and the Rehabilitation Act 
of 1973 (29 U.S.C. 701 et seq.); 
‘‘(iii) activities that support regional 
economic development plans that support 
high-wage, high-skill, or high-demand occu-
pations leading to self-sufficiency; 
‘‘(iv) activities that coordinate the 
workforce and education programs with 
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141 
other Federal and State programs related 
to the workforce and education programs; 
‘‘(v) activities that support the devel-
opment of an integrated performance in-
formation system that includes common 
measures for one-stop partner programs 
described in section 121; 
‘‘(vi) activities that support activities 
to improve performance in workforce and 
education programs and program coordina-
tion of workforce and education programs; 
or 
‘‘(vii) activities that leverage addi-
tional training resources, other than those 
provided through workforce and education 
programs, for adults and youth.’’. 
(g) USE OF CORE INDICATORS FOR OTHER PRO-
GRAMS.—Section 136 (29 U.S.C. 2871) is further amend-
ed by adding at the end the following subsection: 
‘‘(j) USE OF CORE INDICATORS FOR OTHER PRO-
GRAMS.—In addition to the programs carried out under 
chapters 4 and 5, and consistent with the requirements 
of the applicable authorizing laws, the Secretary shall use 
the core indicators of performance described in subsection 
(b)(2)(A) to assess the effectiveness of the programs de-
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scribed under section 121(b)(1)(B) that are carried out 
by the Secretary.’’. 
(h) REPEAL OF DEFINITIONS.—Sections 502 and 
503 (and the items related to such sections in the table 
of contents) are repealed. 
SEC. 114. AUTHORIZATION OF APPROPRIATIONS. 
(a) YOUTH ACTIVITIES.—Section 137(a) (29 U.S.C. 
2872(a)) is amended by striking ‘‘such sums as may be 
necessary for each of fiscal years 1999 through 2003’’ and 
inserting ‘‘such sums as may be necessary for each of fis-
cal year 2011 through 2015’’. 
(b) ADULT EMPLOYMENT AND TRAINING ACTIVI-
TIES.—Section 137(b) (29 U.S.C. 2872(b)) is amended by 
striking ‘‘section 132(a)(1), such sums as may be nec-
essary for each of fiscal years 1999 through 2003’’ and 
inserting ‘‘section 132(a), such sums as may be necessary 
for each of fiscal years 2011 through 2015’’. 
(c) 
DISLOCATED
WORKER
EMPLOYMENT
AND 
TRAINING ACTIVITIES.—Section 137 is further amended 
by striking subsection (c). 
SEC. 115. JOB CORPS. 
(a) JOB CORPS CENTERS.—Section 147(a)(1)(A) (29 
U.S.C. 2887 (a)(1)(A)) is amended— 
(1) by striking ‘‘vocational education’’ and in-
serting ‘‘career and technical education’’; and 
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(2) by striking ‘‘vocational school’’ and insert-
ing ‘‘career and technical school’’. 
(b) PROGRAM ACTIVITIES.—Section 148 (29 U.S.C. 
2888) is amended— 
(1) in subsection (a)— 
(A) by striking paragraph (1) and insert-
ing the following: 
‘‘(1) IN
GENERAL.—Each Job Corps center 
shall provide enrollees with an intensive, well orga-
nized, and fully supervised program of education, ca-
reer training, work experience, recreational activities, 
physical rehabilitation and development, and coun-
seling. Each Job Corps center shall provide enrollees 
assigned to the center with access to work ready 
services described in section 134(c)(2).’’; and 
(B) in subparagraph (2)(A), by striking 
‘‘vocational’’ and inserting ‘‘career’’; and 
(2) in subsection (b)— 
(A) in the header, by striking ‘‘VOCA-
TIONAL’’ and inserting ‘‘CAREER AND TECH-
NICAL’’; 
(B) by striking ‘‘vocational training’’ and 
inserting ‘‘career and technical training’’; and 
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(C) by striking ‘‘, vocational educational 
institutions, or technical institutes’’ and insert-
ing ‘‘or career and technical institutions’’. 
(c) INDUSTRY
COUNCILS.—Section 154(b) (29 
U.S.C. 2894(b)) is amended— 
(1) in paragraph (1)(A), by striking ‘‘local and 
distant’’; and 
(2) by adding after paragraph (2) the following: 
‘‘(3) EMPLOYERS OUTSIDE OF LOCAL AREAS.— 
The industry council may include, or otherwise pro-
vide for consultation with, employers from outside 
the local area who are likely to hire a significant 
number of enrollees from the Job Corps center. 
‘‘(4) SPECIAL RULE FOR SINGLE LOCAL AREA 
STATES.—In the case of a single local area State 
designated under section 116(b), the industry coun-
cil shall include a representative of the State 
Board.’’. 
(d) INDICATORS OF PERFORMANCE AND ADDITIONAL 
INFORMATION.—Section 159(c) (29 U.S.C. 2893(c)) is 
amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) CORE INDICATORS.—The Secretary shall 
annually establish expected levels of performance for 
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Job Corps centers and the Job Corps program relat-
ing to each of the following core indicators of per-
formance for youth— 
‘‘(A) entry into education, employment, 
military service or advanced training; 
‘‘(B) attainment of a secondary school di-
ploma, General Educational Development cre-
dential (GED), or other State-recognized equiv-
alent; and 
‘‘(C) literacy or numeracy gains.’’; and 
(2) in paragraph (2), by striking ‘‘measures’’ 
each place it appears and inserting ‘‘indicators’’. 
(e) AUTHORIZATION OF APPROPRIATIONS.—Section 
161 (29 U.S.C. 2901) is amended by striking ‘‘1999 
through 2003’’ and inserting ‘‘2011 through 2015’’. 
(f) REPEAL OF REQUIREMENT RELATING TO FED-
ERAL ADMINISTRATION.—Section 102 of the Departments 
of Labor, Health and Human Services, and Education, 
and Related Agencies Appropriations Act, 2006 (Public 
Law 109–149) is repealed. 
SEC. 116. NATIVE AMERICAN PROGRAMS. 
(a) ADVISORY COUNCIL.—Section 166(h)(4)(C) (29 
U.S.C. 2911(h)(4)(C)) is amended to read as follows: 
‘‘(C) DUTIES.—The Council shall advise 
the Secretary on the operation and administra-
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146 
tion of the programs assisted under this sec-
tion.’’. 
(b) ASSISTANCE
TO AMERICAN SAMOANS
IN HA-
WAII.—Section 166 (29 U.S.C. 2911) is further amended 
by striking subsection (j). 
SEC. 117. MIGRANT AND SEASONAL FARM WORKER PRO-
GRAMS. 
Section 167(d) is amended by inserting ‘‘(including 
permanent housing)’’ after ‘‘housing’’. 
SEC. 118. VETERANS’ WORKFORCE INVESTMENT PRO-
GRAMS. 
Section 168(a)(3)(C) (29 U.S.C. 2913(a)(3)(C)) is 
amended by striking ‘‘section 134(c)’’ and inserting ‘‘sec-
tion 121(e)’’. 
SEC. 119. YOUTH CHALLENGE GRANTS. 
(a) IN GENERAL.—Section 169 (29 U.S.C. 2914) is 
amended to read as follows: 
‘‘SEC. 169. YOUTH CHALLENGE GRANTS. 
‘‘(a) IN GENERAL.—Of the amounts reserved by the 
Secretary under section 127(a)(1)(A) for a fiscal year— 
‘‘(1) the Secretary shall use not less than 80 
percent to award competitive grants under sub-
section (b); and 
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‘‘(2) the Secretary may use not more than 20 
percent to award discretionary grants under sub-
section (c). 
‘‘(b) COMPETITIVE GRANTS TO STATES AND LOCAL 
AREAS.— 
‘‘(1) ESTABLISHMENT.—From the funds de-
scribed in subsection (a)(1), the Secretary shall 
award competitive grants to eligible entities to carry 
out activities authorized under this section to assist 
eligible youth in acquiring the skills, credentials and 
employment experience necessary to succeed in the 
labor market. 
‘‘(2) ELIGIBLE ENTITIES.—Grants under this 
subsection may be awarded to States, local boards, 
recipients of grants under section 166 (relating to 
Native American programs), and public or private 
entities (including consortia of such entities) apply-
ing in conjunction with local boards. 
‘‘(3) GRANT
PERIOD.—The Secretary may 
make a grant under this section for a period of 1 
year and may renew the grants for each of the 4 
succeeding years. 
‘‘(4) AUTHORITY
TO
REQUIRE
MATCH.—The 
Secretary may require that grantees under this sub-
section provide a non-Federal share of the cost of 
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148 
activities carried out under a grant awarded under 
this subsection. 
‘‘(5) PARTICIPANT
ELIGIBILITY.—Youth ages 
14 through 19 as of the time the eligibility deter-
mination is made may be eligible to participate in 
activities provided under this subsection. 
‘‘(6) USE OF FUNDS.—Funds under this sub-
section may be used for activities that are designed 
to assist youth in acquiring the skills, credentials 
and employment experience that are necessary to 
succeed in the labor market, including the activities 
identified in section 129. The activities may include 
activities such as— 
‘‘(A) training and internships for out-of- 
school youth in sectors of the economy experi-
encing or projected to experience high growth; 
‘‘(B) after-school dropout prevention activi-
ties for in-school youth; 
‘‘(C) activities designed to assist special 
youth populations, such as court-involved youth 
and youth with disabilities; and 
‘‘(D) activities combining remediation of 
academic skills, work readiness training, and 
work experience, and including linkages to post- 
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secondary education, apprenticeships, and ca-
reer-ladder employment. 
‘‘(7) APPLICATIONS.—To be eligible to receive a 
grant under this subsection, an eligible entity shall 
submit an application to the Secretary at such time, 
in such manner, and containing such information as 
the Secretary may require, including— 
‘‘(A) a description of the activities the eli-
gible entity will provide to eligible youth under 
this subsection and how the eligible entity will 
collaborate with State and local workforce in-
vestment systems established under this title in 
the provisions of such activities; 
‘‘(B) a description of the programs of dem-
onstrated effectiveness on which the provision 
of the activities under subparagraph (A) are 
based, and a description of how such activities 
will expand the base of knowledge relating to 
the provision of activities for youth; 
‘‘(C) a description of the private and pub-
lic, and local and State resources that will be le-
veraged to provide the activities described under 
subparagraph (A) in addition to the funds pro-
vided under this subsection and a description of 
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the extent of the involvement of employers in 
the activities; and 
‘‘(D) the levels of performance the eligible 
entity expects to achieve with respect to the in-
dicators of performance for youth specified in 
section 136(b)(2)(A)(ii). 
‘‘(8) FACTORS FOR AWARD.— 
‘‘(A) IN
GENERAL.—In awarding grants 
under this subsection the Secretary shall con-
sider— 
‘‘(i) the quality of the proposed activi-
ties; 
‘‘(ii) the goals to be achieved; 
‘‘(iii) the likelihood of successful im-
plementation; 
‘‘(iv) the extent to which the proposed 
activities are based on proven strategies or 
the extent to which the proposed activities 
will expand the base of knowledge relating 
to the provision of activities for eligible 
youth; 
‘‘(v) the extent of collaboration with 
the State and local workforce investment 
systems in carrying out the proposed ac-
tivities; 
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151 
‘‘(vi) the extent of employer involve-
ment in the proposed activities; 
‘‘(vii) whether there are other Federal 
and non-Federal funds available for similar 
activities to the proposed activities, and the 
additional State, local, and private re-
sources that will be provided to carry out 
the proposed activities; 
‘‘(viii) the quality of the proposed ac-
tivities in meeting the needs of the eligible 
youth to be served; and 
‘‘(ix) the extent to which the proposed 
activities will expand on services provided 
under section 127. 
‘‘(B) EQUITABLE GEOGRAPHIC DISTRIBU-
TION.—In awarding grants under this sub-
section the Secretary shall ensure an equitable 
distribution of such grants across geographi-
cally diverse areas. 
‘‘(9) EVALUATION.—The Secretary may reserve 
up to 5 percent of the funds described in subsection 
(a)(1) to provide technical assistance to, and conduct 
evaluations of the projects funded under this sub-
section (using appropriate techniques as described in 
section 172(c)). 
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152 
‘‘(c) DISCRETIONARY GRANTS FOR YOUTH ACTIVI-
TIES.— 
‘‘(1) IN GENERAL.—From the funds described 
in subsection(a)(2), the Secretary may award grants 
to eligible entities to provide activities that will as-
sist youth in preparing for, and entering and retain-
ing, employment. 
‘‘(2) ELIGIBLE ENTITIES.—Grants under this 
subsection may be awarded to public or private enti-
ties that the Secretary determines would effectively 
carry out activities relating to youth under this sub-
section. 
‘‘(3) PARTICIPANT
ELIGIBILITY.—Youth ages 
14 through 19 at the time the eligibility determina-
tion is made may be eligible to participate in activi-
ties under this subsection. 
‘‘(4) USE OF FUNDS.—Funds provided under 
this subsection may be used for activities that will 
assist youth in preparing for, and entering and re-
taining, employment, including activities to assist 
out-of-school youth, activities designed to assist in- 
school youth to stay in school and gain work experi-
ence, and such other activities that the Secretary de-
termines are appropriate. 
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153 
‘‘(5) APPLICATIONS.—To be eligible to receive a 
grant under this subsection, an eligible entity shall 
submit an application to the Secretary at such time, 
in such manner, and containing such information as 
the Secretary may require. 
‘‘(6) ADDITIONAL
REQUIREMENTS.—The Sec-
retary may require the provision of a non-Federal 
share for projects funded under this subsection and 
may require participation of grantees in evaluations 
of such projects, including evaluations using the 
techniques as described in section 172(c).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) is amended by amending the item related 
to section 169 to read as follows: 
‘‘Sec. 169. Youth challenge grants.’’. 
SEC. 120. TECHNICAL ASSISTANCE. 
Section 170 (29 U.S.C. 2915) is amended— 
(1) by striking subsection (b); 
(2) by striking 
‘‘(a) GENERAL TECHNICAL ASSISTANCE.—’’; 
(3) by redesignating paragraphs (1), (2), and 
(3) as subsections (a), (b), and (c) respectively, and 
moving such subsections 2 ems to the left; 
(4) in subsection (a) (as so redesignated)— 
(A) by inserting ‘‘the training of staff pro-
viding rapid response services, the training of 
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154 
other staff of recipients of funds under this 
title, peer review activities under this title, as-
sistance regarding accounting and program op-
eration practices (when such assistance would 
not be duplicative to assistance provided by the 
State), technical assistance to States that do 
not meet State performance measures described 
in section 136,’’ after ‘‘localities,’’; and 
(B) by striking ‘‘from carrying out activi-
ties’’ and all that follows up to the period and 
inserting ‘‘to implement the amendments made 
by the Workforce Investment Improvement Act 
of 2009’’; and 
(5) by inserting, after subsection (c) (as redes-
ignated by paragraph (3)), the following: 
‘‘(d) BEST PRACTICES COORDINATION.—The Sec-
retary shall— 
‘‘(1) establish a system through which States 
may share information regarding best practices with 
regard to the operation of workforce investment ac-
tivities under this Act; 
‘‘(2) evaluate and disseminate information re-
garding best practices and identify knowledge gaps; 
and 
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155 
‘‘(3) commission research under section 171(c) 
to address knowledge gaps identified under para-
graph (2).’’. 
SEC. 121. DEMONSTRATION, PILOT, MULTISERVICE, RE-
SEARCH AND MULTI-STATE PROJECTS. 
(a) DEMONSTRATION AND PILOT PROJECTS.—Sec-
tion 171(b) (29 U.S.C. 2916(b)) is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘Under a’’ and inserting 
‘‘Consistent with the priorities specified in the’’; 
(B) 
by 
amending 
subparagraphs 
(A) 
through (D) to read as follows: 
‘‘(A) projects that assist national employ-
ers in connecting with the workforce investment 
system established under this title in order to 
facilitate the recruitment and employment of 
needed workers and to provide information to 
such system on skills and occupations in de-
mand; 
‘‘(B) projects that promote the develop-
ment of systems that will improve the effective-
ness and efficiency of programs carried out 
under this title; 
‘‘(C) projects that focus on opportunities 
for employment in industries and sectors of in-
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156 
dustries that are experiencing or are likely to 
experience high rates of growth, including those 
relating to information technology and energy 
efficiency and renewable energy; 
‘‘(D) projects carried out by States and 
local areas to test innovative approaches to de-
livering employment-related services;’’; 
(C) by striking subparagraph (E); 
(D) by redesignating subparagraphs (F) 
and (G) as subparagraphs (E) and (F), respec-
tively; 
(E) in subparagraph (F) (as so redesig-
nated, by striking ‘‘; and’’ and inserting a semi-
colon; 
(F) by inserting after subparagraph (F) 
(as so redesignated) the following: 
‘‘(G) projects carried out by States and 
local areas to assist adults or out of school 
youth in starting a small business, including 
training and assistance in business or financial 
management or in developing other skills nec-
essary to operate a business;’’; and 
(G) by amending subparagraph (H) to 
read as follows: 
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157 
‘‘(H) projects that focus on opportunities 
for employment in industries and sectors of in-
dustries that are being transformed by tech-
nology and innovation requiring new knowledge 
or skill sets for workers, including advanced 
manufacturing; and’’; and 
(2) in paragraph (2)— 
(A) by striking subparagraph (B); and 
(B) by redesignating subparagraph (C) as 
subparagraph (B). 
(b) 
MULTISERVICE
PROJECTS.—Section 
171(c)(2)(B) (29 U.S.C. 2916(c)(2)(B)) is amended to 
read as follows: 
‘‘(B) NET
IMPACT
STUDIES
AND
RE-
PORTS.—The Secretary shall conduct studies to 
determine the net impacts of programs, serv-
ices, and activities carried out under this title. 
The Secretary shall prepare and disseminate to 
Congress and the public reports containing the 
results of such studies.’’. 
SEC. 122. RESTORING STATE AND LOCAL FLEXIBILITY TO 
CREATE ENERGY EFFICIENCY AND RENEW-
ABLE ENERGY JOBS. 
Section 171(e) is repealed. 
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158 
SEC. 123. EVALUATIONS. 
(a) IMPACT
ANALYSIS.—Section 172(a)(4) (29 
U.S.C. 2917(a)(4)) is amended to read as follows: 
‘‘(4) the impact of receiving services and not re-
ceiving services under such programs and activities 
on the community, businesses, and individuals;’’. 
(b) 
TECHNIQUES.—Section 
172(c) 
(29 
U.S.C. 
2917(c)) is amended to read as follows: 
‘‘(c) TECHNIQUES.—Evaluations conducted under 
this section shall utilize appropriate and rigorous method-
ology and research designs, including the use of control 
groups chosen by scientific random assignment methodolo-
gies, quasi-experimental methods, impact analysis and the 
use of administrative data. The Secretary shall conduct 
an impact analysis, as described in subsection (a)(4), of 
the formula grant programs under subtitle B not later 
than 2012, and thereafter shall conduct such an analysis 
not less than once every four years.’’. 
(c) REPORTS
TO CONGRESS.—Section 172(e) (29 
U.S.C. 2917(e)) is amended by striking ‘‘the Committee 
on Education and the Workforce of the House of Rep-
resentatives and the Committee on Labor and Human Re-
sources of the Senate’’ and inserting ‘‘the Committee on 
Education and Labor of the House of Representatives and 
the Committee on Health, Education, Labor, and Pen-
sions of the Senate’’. 
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159 
SEC. 124. 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.’’; 
(2) in subsection (a)— 
(A) 
by 
striking 
‘‘national 
emergency 
grants’’ in the matter preceding paragraph (1) 
and inserting ‘‘national dislocated worker 
grants’’; 
(B) in paragraph (1), by striking ‘‘sub-
section (c)’’ and inserting ‘‘subsection (b)’’; and 
(C) in paragraph (4)— 
(i) in subparagraph (A)— 
(I) 
by 
striking 
‘‘section 
173(c)(1)(B)’’ and inserting ‘‘section 
173(h)(1)(B)’’; and 
(II) by striking ‘‘subsection (f)’’ 
and inserting ‘‘subsection (d)’’; and 
(ii) in subparagraph (B), by striking 
‘‘subsection (g)’’ and inserting ‘‘subsection 
(e)’’; 
(3) by striking subsections (b) and (e) and re-
designating subsections (c), (d), (f), and (g) as sub-
sections (b) through (e), respectively; 
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160 
(4) in subsection (b)(1)(B) as so redesignated), 
by striking ‘‘, and other entities’’ and all that follows 
and inserting a period; 
(5) in subsection (b)(2)(A) (as so redesig-
nated)— 
(A) in the matter preceding clause (i), by 
striking ‘‘national emergency grant’’ and insert-
ing ‘‘national dislocated worker grant’’; 
(B) in clause (iii), by striking ‘‘; or’’ and 
inserting a semicolon; 
(C) in clause (iv)(IV) by striking the pe-
riod and inserting ‘‘; or’’; and 
(D) 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 
recently separated from such duties, and 
such spouse is in need of employment and 
training assistance to obtain or retain em-
ployment.’’; 
(6) in subsection (b)(2)(C) (as so redesignated), 
by striking ‘‘national emergency grant’’ and insert-
ing ‘‘national dislocated worker grants’’; 
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(7) in subsection (d)(2) (as so redesignated), by 
striking ‘‘subsection (g)’’ and inserting ‘‘subsection 
(e)’’; 
(8) in subsection (d)(5) (as so redesignated), by 
striking ‘‘subsection (g)’’ and inserting ‘‘subsection 
(e)’’; 
(9) in subsection (d)(6) (as so redesignated), by 
striking ‘‘subsection (g)’’ and inserting ‘‘subsection 
(e)’’; and 
(10) in subsection (e)(1)(A) (as so redesig-
nated), by striking ‘‘subsection (f)(1)(A)’’ and in-
serting ‘‘subsection (d)(1)(A)’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents 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. 125. 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 ‘‘2011 through 2015’’. 
(b) RESERVATIONS.—Section 174(b) is amended to 
read as follows: 
‘‘(b) TECHNICAL ASSISTANCE; DEMONSTRATION AND 
PILOT PROJECTS; EVALUATIONS; INCENTIVE GRANTS.— 
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162 
‘‘(1) DEMONSTRATION AND PILOT PROJECTS.— 
There are authorized to be appropriated to carry out 
section 171, such sums as may be necessary for fis-
cal years 2011 through 2015. 
‘‘(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 2011 
through 2015.’’. 
SEC. 126. 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 insert-
ing ‘‘the entry into employment, retention in employment, 
or increases in earnings of’’. 
(c) SALARY CAP.—Section 181 (29 U.S.C. 2931) is 
further amended by adding at the end the following new 
subsection: 
‘‘(g) SALARY AND BONUS LIMITATION.—No funds 
provided under this title shall be used by a recipient or 
subrecipient of such funds to pay the salary and bonuses 
of an individual, either as direct costs or indirect costs, 
at a rate in excess of Level II of the Federal Executive 
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163 
Pay Schedule (5 U.S.C. 5313). This limitation shall not 
apply to vendors providing goods and services as defined 
in OMB Circular A–133. Where States are recipients of 
such funds, States may establish a lower limit for salaries 
and bonuses of those receiving salaries and bonuses from 
subrecipients of such funds, taking into account factors 
including the relative cost-of-living in the State, the com-
pensation levels for comparable State or local government 
employees, and the size of the organizations that admin-
ister the programs.’’. 
(d) GENERAL AUTHORITY.—Section 181 is further 
amended by adding at the end the following new sub-
section: 
‘‘(h) GENERAL AUTHORITY.— 
‘‘(1) IN
GENERAL.—The Employment and 
Training Administration of the U.S. Department of 
Labor (hereinafter in this Act referred to as the ‘Ad-
ministration’) shall administer all programs author-
ized under title I and III of this Act. The Adminis-
tration shall be headed by an Assistant Secretary 
appointed by the President by and with the advice 
and consent of the Senate. Except for titles II and 
IV, the Administration shall be the principal agency, 
and the Assistant Secretary shall be the principal of-
ficer, of such Department for carrying out this Act. 
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164 
‘‘(2) QUALIFICATIONS.—The Assistant Sec-
retary shall be an individual with substantial experi-
ence in workforce development and in workforce de-
velopment management. The Assistant Secretary 
shall also, to the maximum extent possible, possess 
knowledge and have worked in or with the State or 
local workforce investment system or have been a 
member of the business community. In the perform-
ance of the functions of the office, the Assistant Sec-
retary shall be directly responsible to the Secretary 
or the Under Secretary as designed by the Sec-
retary. The functions of the Assistant Secretary 
shall not be delegated to any officer not directly re-
sponsible, both with respect to program operation 
and administration, to the Assistant Secretary. Any 
reference in this Act to duties to be carried out by 
the Assistant Secretary shall be considered to be a 
reference to duties to be carried out by the Secretary 
acting through the Assistant Secretary.’’. 
(e) 
FISCAL
CONTROLS; 
SANCTIONS.—Section 
184(a)(2)(B) (29 U.S.C. 2934(a)(2)(B)) is amended by 
striking ‘‘in accordance with section 134(a)(3)(B)’’. 
(f) REPORTS TO CONGRESS.—Section 185 (29 U.S.C. 
2935) is amended— 
(1) in subsection (c)— 
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165 
(A) in paragraph (2), by striking ‘‘and’’ 
after the semicolon; 
(B) in paragraph (3), by striking the pe-
riod and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(4) shall have the option to submit or dissemi-
nate electronically any reports, records, plans, or any 
other data that are required to be collected or dis-
seminated under this title.’’; and 
(2) in paragraph (e)(2), by inserting ‘‘and the 
Secretary shall submit to the Committee on Edu-
cation and Labor of the House of Representatives 
and the Committee on Health, Education, Labor, 
and Pensions of the Senate,’’ after ‘‘Secretary,’’. 
SEC. 127. NONDISCRIMINATION. 
Section 188(a)(2) (29 U.S.C. 2938(a)(2)) is amended 
to read as follows: 
‘‘(2) PROHIBITION
OF
DISCRIMINATION
RE-
GARDING PARTICIPATION, BENEFITS, AND EMPLOY-
MENT.— 
‘‘(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-
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166 
nection with, any such program or activity be-
cause of race, color, religion, sex (except as oth-
erwise permitted under title IX of the Edu-
cation Amendments of 1972), national origin, 
age, disability, 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 
carrying on by such corporation, association, 
educational institution, or society of its activi-
ties. Such recipients shall comply with the other 
requirements contained in subparagraph (A).’’. 
SEC. 128. 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.’’. 
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167 
(b) AVAILABILITY.—Section 189(g)(2) (29 U.S.C. 
2939(g)(2)) is amended by striking ‘‘each State’’ and in-
serting ‘‘each recipient’’. 
(c) GENERAL
WAIVERS.—Section 189(i)(4) (29 
U.S.C. 2939(i)(4)) is amended— 
(1) in subparagraph (A)— 
(A) in the matter preceding clause (i), by 
inserting ‘‘, or in accordance with subparagraph 
(D)’’ after ‘‘subparagraph (B)’’; and 
(B) by striking clause (ii), the clause (i) 
designation and the dash preceding such des-
ignation, and moving the remaining text flush 
with the preceding matter; and 
(2) by adding the following subparagraph: 
‘‘(D) EXPEDITED PROCESS FOR EXTEND-
ING
APPROVED
WAIVERS
TO
ADDITIONAL 
STATES.—In lieu of the requirements of sub-
paragraphs (B) and (C), the Secretary may es-
tablish an expedited procedure for the purpose 
of extending to additional States the waiver of 
statutory or regulatory requirements that have 
been approved for a State pursuant to a request 
under subparagraph (B). Such procedure shall 
ensure that the extension of such waivers to ad-
ditional States are accompanied by appropriate 
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168 
conditions relating the implementation of such 
waivers.’’. 
SEC. 129. STATE LEGISLATIVE AUTHORITY. 
Section 191 is amended— 
(1) in subsection (a), by striking ‘‘consistent 
with the provisions of this title’’ and inserting ‘‘con-
sistent with State law and the provisions of this 
title’’; and 
(2) in subsection (a), by striking ‘‘consistent 
with the terms and conditions required under this 
title’’ and inserting ‘‘consistent with State law and 
the terms and conditions required under this title’’. 
SEC. 130. WORKFORCE INNOVATION IN REGIONAL ECO-
NOMIC DEVELOPMENT. 
(a) WORKFORCE INNOVATION IN REGIONAL ECO-
NOMIC DEVELOPMENT.—Section 192 (29 U.S.C. 2942) is 
amended to read as follows: 
‘‘SEC. 192. WORKFORCE INNOVATION IN REGIONAL ECO-
NOMIC DEVELOPMENT. 
‘‘(a) WORKFORCE INNOVATION IN REGIONAL ECO-
NOMIC DEVELOPMENT PLANS.— 
‘‘(1) IN GENERAL.—The Secretary, in coopera-
tion with other Federal agency heads responsible for 
the administration of programs included in plans 
submitted under this subsection, may approve Work-
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169 
force Innovation in Regional Economic Development 
(in this subsection referred to as WIRED) plans 
submitted by a State or local workforce investment 
board or boards pursuant to paragraph (2) to sup-
port the development of regional economies in order 
to foster economic development, expand employment, 
and advancement opportunities for workers and to 
promote the creation of high-skill and high-wage op-
portunities. 
‘‘(2) CONTENTS OF PLAN.—To have a WIRED 
plan approved under this subsection, a State or local 
workforce investment board or boards and the region 
or regions identified in subparagraph (A) shall joint-
ly submit a plan to the Secretary at such time, in 
such manner, and containing such information as 
the Secretary may require, including— 
‘‘(A) the identification of the multi-county 
region or regions that is to be the focus of the 
activities provided under the plan, including 
identification of the communities in the region 
that share common characteristics, and a de-
scription of why the selected area comprises a 
regional economy; 
‘‘(B) a description of the broad-based re-
gional partnership that has been created for the 
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region identified in subparagraph (A) rep-
resenting the major assets of the region, con-
sistent with the requirements of paragraph (3), 
and that will assist in developing the economic 
vision described in subparagraph (D), the strat-
egies described in subparagraph (E), and pro-
vide a forum for regional economic decision-
making, including a description of the partner-
ship’s involvement, particularly that of rep-
resentatives of affected local boards and chief 
elected officials, in the development of the plan; 
‘‘(C) a description of the assets of the re-
gion identified in subparagraph (A), based on a 
regional assessment, and identification of the 
strengths, weaknesses, opportunities, and risks 
based on those assets; 
‘‘(D) a description of an economic vision 
for the region identified in subparagraph (A), 
based on the identified strengths and assets de-
scribed in subparagraph (C), and evidence of 
support for that vision from the broad-based re-
gional partnership described in subparagraph 
(B); 
‘‘(E) a description of the talent develop-
ment and related strategies that provide a blue-
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print for how to achieve the economic vision for 
the region as described in subparagraph (D), 
including the activities to be carried out under 
this subsection, consistent with paragraphs (5) 
and (6), and the identification of specific goals 
associated with those strategies; 
‘‘(F) information on the workforce develop-
ment programs to be integrated in the region, 
in accordance with the requirements of para-
graph (4), into an integrated workforce develop-
ment program, including— 
‘‘(i) identification of the programs to 
be integrated; 
‘‘(ii) the amount and proportion of the 
resources available to the region under 
each of the integrated programs to carry 
out the strategies described in subpara-
graph (E); 
‘‘(iii) a description of how these re-
sources will be used to accomplish the vi-
sion identified in subparagraph (D), in-
cluding the services to be provided and 
how such services will be provided, con-
sistent with clause (iv) and paragraph (5); 
and 
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‘‘(iv) assurances that in carrying out 
the wired plan— 
‘‘(I) the region, through the inte-
grated workforce development pro-
gram, will maintain a local workforce 
investment board, or a regional work-
force investment board, that is sub-
stantially similar to the local work-
force 
investment 
boards 
required 
under section 117 of this Act, that 
such board will carry out functions 
that are substantially similar to those 
described under section 117(d), and, 
that such region shall submit to the 
State for approval a local plan for the 
region that is substantially similar to 
the local plans required under section 
118 of this Act; 
‘‘(II) the region, through the in-
tegrated workforce development pro-
gram, will maintain a one-stop deliv-
ery system that is consistent with the 
requirements of section 121 of this 
Act; 
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‘‘(III) the region, through the in-
tegrated workforce development pro-
gram, will serve populations consistent 
with the populations served by the 
programs being integrated, and will 
provide universal access to work ready 
services 
as 
described 
in 
section 
134(c)(2) of this Act; 
‘‘(IV) the region, in carrying out 
the integrated workforce development 
program, will comply with the vet-
erans’ priority of service requirement 
under section 4215 of title 38, United 
States Code; 
‘‘(V) of the funds expended 
under the integrated workforce devel-
opment program each year, not more 
than 10 percent of such funds will be 
expended on the costs of administra-
tion (as defined by the Secretary); 
‘‘(VI) the services provided under 
the integrated workforce development 
program will be coordinated with em-
ployment-related programs not in-
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cluded under the integrated workforce 
program; and 
‘‘(VII) the region, in carrying out 
the integrated workforce development 
program, will comply with require-
ments under this title relating to wage 
and labor standards (including non-
displacement 
provisions), 
grievance 
procedures and judicial review, and 
nondiscrimination; 
‘‘(G) an assurance that each local work-
force board and chief elected official included in 
the region that will carry out the integrated 
workforce development plan has approved the 
plan; 
‘‘(H) information on the community and 
economic development programs, if any, that 
will provide a portion of funds that will be inte-
grated to carry out the strategies described in 
subparagraph (E), in accordance with the re-
quirements of paragraph (6), including— 
‘‘(i) identification of the included com-
munity and economic development pro-
grams; 
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‘‘(ii) the amount and proportion of the 
resources available to the State or local 
workforce investment board or boards 
under each such program that will be used 
in the region to carry out the strategies de-
scribed in subparagraph (E); and 
‘‘(iii) a description of how these re-
sources will be used to assist in accom-
plishing the vision identified in subpara-
graph (D), including the activities to be 
carried out; and 
‘‘(I) in addition to the resources described 
under subparagraphs (F) and (H), identifica-
tion of other resources that will be used to sup-
port the strategies of the region described in 
subparagraph (E), from a wide range of 
sources, including foundations, private invest-
ment such as venture capital, and Federal, 
State, and local governments. 
‘‘(3) BROAD-BASED REGIONAL PARTNERSHIP.— 
For purposes of this subsection, a broad-based re-
gional partnership— 
‘‘(A) shall include— 
‘‘(i) representatives from each of the 
local workforce investment systems in the 
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region identified under paragraph (2)(A), 
such as the chairpersons or executive direc-
tors of affected local workforce investment 
boards in such region; 
‘‘(ii) representatives of the education 
system in the region identified under para-
graph (2)(A), including representatives 
from each of the following: 
‘‘(I) The K–12 public school sys-
tems; 
‘‘(II) Community colleges; and 
‘‘(III) Four-year educational in-
stitutions; 
‘‘(iii) representatives of businesses 
and industry associations in the region 
identified under paragraph (2)(A); 
‘‘(iv) the chief elected officials from 
each of the affected local areas identified 
under paragraph (2)(A); and 
‘‘(v) representatives of local and re-
gional economic development agencies in 
the region identified under paragraph 
(2)(A); and 
‘‘(B) may include— 
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‘‘(i) representatives of the philan-
thropic community; 
‘‘(ii) representatives of post-secondary 
education and training providers in addi-
tion to those described in subparagraph 
(A)(ii); 
‘‘(iii) representatives of private invest-
ment entities such as seed and venture 
capital organizations; investor networks; 
and entrepreneurs; 
‘‘(iv) representatives of faith and com-
munity-based organizations; and 
‘‘(v) representatives of such other 
Federal, State or local entities and organi-
zations that may enhance the carrying out 
of the activities of the partnership. 
‘‘(4) INTEGRATION OF WORKFORCE DEVELOP-
MENT SERVICES AUTHORIZED.— 
‘‘(A) 
AUTHORIZATION
FOR
INTEGRA-
TION.—In carrying out this subsection, the Sec-
retary, in cooperation with the Federal agency 
heads responsible for the administration of the 
workforce development programs described in 
subparagraph (D) that are included in the 
WIRED plan submitted by the State or local 
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workforce investment board or boards, shall, 
upon the approval of the plan submitted under 
paragraph (2), authorize the State or local 
workforce investment board or boards to inte-
grate programs as described in subparagraph 
(B). 
‘‘(B) INTEGRATION.—The authorization 
shall give the State or local workforce invest-
ment board or boards the authority to inte-
grate, in accordance with such approved plan, 
the federally funded programs described in sub-
paragraph (D) that are included in the ap-
proved plan, in a manner that integrates those 
programs into a single, coordinated, comprehen-
sive workforce development program to achieve 
the economic vision identified in such plan for 
the region. 
‘‘(C) EFFECT
ON
PROGRAM
REQUIRE-
MENTS.—The provisions of the approved grant 
application and the requirements of this sub-
section shall supersede the requirements of the 
statutes authorizing the programs included for 
integration in such approved plan, except as 
otherwise specified in this subsection. 
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‘‘(D) INCLUDED
WORKFORCE
DEVELOP-
MENT PROGRAMS.— 
‘‘(i) 
MANDATORY
PROGRAMS.—A 
WIRED plan authorized under this sub-
section shall include the workforce invest-
ment activities for adults authorized under 
chapter 5 of subtitle B. 
‘‘(ii) ADDITIONAL PROGRAMS.—In ad-
dition to the integration of the programs 
described in clause (i) into a single pro-
gram, a WIRED plan may include integra-
tion of one or more of the following pro-
grams as part of such single program— 
‘‘(I) the program of workforce in-
vestment activities for youth author-
ized under chapter 4 of subtitle B; or 
‘‘(II) any of the other required 
one-stop partner programs and activi-
ties described in section 121(b)(1)(B) 
of this Act. 
‘‘(5) WORKFORCE
DEVELOPMENT
ACTIVITIES 
TO
BE
CARRIED
OUT
UNDER
WIRED
PLAN.—The 
workforce development activities carried out under a 
WIRED plan may include— 
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‘‘(A) job training and related activities for 
workers to assist them in gaining the skills and 
competencies needed to obtain or upgrade em-
ployment in industries or economic sectors pro-
jected to experience significant growth in the 
region identified in paragraph (2)(A), includ-
ing— 
‘‘(i) activities supporting talent devel-
opment related to entrepreneurship and 
small business development; and 
‘‘(ii) the purchase of equipment to 
train job seekers and workers for high- 
growth occupations; 
‘‘(B) activities to enhance the training and 
related activities described in subparagraph (A) 
and to promote workforce development in the 
region identified in paragraph (2)(A), includ-
ing— 
‘‘(i) the development and implementa-
tion of model activities, such as developing 
appropriate curricula to build core com-
petencies and train workers in the region; 
‘‘(ii) identifying and disseminating ca-
reer and skill information relating to the 
region; 
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181 
‘‘(iii) developing or purchasing re-
gional data tools or systems to deepen un-
derstanding of the regional economy and 
labor market; and 
‘‘(iv) integrated regional planning, 
such as increasing the integration of com-
munity and technical college activities with 
activities of businesses and the public 
workforce investment system to meet the 
training needs of high growth industries in 
the region; and 
‘‘(C) appropriate employment-related ac-
tivities and services authorized under the work-
force development programs that are integrated 
under the plan in accordance with paragraphs 
(2)(F) and (4) that will assist achieving the 
economic vision described in paragraph (2)(D) 
and in implementing the strategies described in 
paragraph (2)(E). 
‘‘(6) INTEGRATION OF COMMUNITY AND ECO-
NOMIC DEVELOPMENT FUNDS AUTHORIZED.— 
‘‘(A) AUTHORIZATION
FOR
INTEGRATION 
OF
FUNDS.—In carrying out this subsection, 
the Secretary, in cooperation with the Federal 
agency heads responsible for the administration 
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182 
of the community and economic development 
programs described in subparagraph (D) that 
are included in the WIRED plan submitted by 
the State or local workforce investment board 
or boards, shall, upon the approval of the plan 
submitted under paragraph (2), authorize the 
State or local workforce investment board or 
boards to integrate the portion of the funds 
from such programs to assist in implementing 
such plans. 
‘‘(B) INTEGRATION.—The authorization 
shall give the State or local workforce invest-
ment board or boards the authority to inte-
grate, in accordance with such approved plan, 
funds provided under programs identified from 
subparagraph (D) to carry out the community 
and economic development activities described 
in paragraph (2)(H). 
‘‘(C) EFFECT
ON
PROGRAM
REQUIRE-
MENTS.—The integrated funds may be used, 
consistent with the description contained in 
paragraph (2)(H), to carry out any of the ac-
tivities authorized under any the programs de-
scribed in subparagraph (D) that are included 
in the plan. 
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183 
‘‘(D) INCLUDED
COMMUNITY
AND
ECO-
NOMIC DEVELOPMENT PROGRAMS.—The funds 
that may be integrated under this paragraph 
are funds provided under— 
‘‘(i) Community Development Block 
Grants authorized under title I of the 
Housing and Community Development Act 
of 1974 (42 U.S.C. 5301–5321); 
‘‘(ii) grants authorized under the 
Community Services Block Grant Act (42 
U.S.C. 9901 et seq.); 
‘‘(iii) Public Works and Economic De-
velopment Grants authorized under section 
201 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 
3141); 
‘‘(iv) 
Rural 
Business 
Enterprise 
Grants authorized under the Consolidated 
Farm and Rural Development Act (7 
U.S.C. 1932); 
‘‘(v) 
Rural 
Business 
Opportunity 
Grants 
authorized 
under 
section 
741(a)(11) of the Federal Agriculture Im-
provement and Reform Act of 1996 (42 
U.S.C. 1926(a)(11); 
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184 
‘‘(vi) grants authorized under the 
Brownfields Economic Development Initia-
tive; and 
‘‘(vii) Rural Housing and Economic 
Development grants. 
‘‘(7) PERFORMANCE MEASURES AND REPORT-
ING.— 
‘‘(A) 
PERFORMANCE
MEASURES.—The 
Secretary shall establish performance measures 
that will be used to evaluate the effectiveness of 
activities carried out under this subsection and 
shall require such entities to report to the Sec-
retary on the employment outcomes obtained by 
individuals receiving training under this sub-
section using those core indicators of perform-
ance described in section 136(b)(2). 
‘‘(B) REPORTING.—Each State or local 
workforce investment board or boards with an 
approved plan under this subsection shall en-
sure that records are maintained and reports 
are submitted, in such form and containing 
such information, as the Secretary may require 
regarding the performance of programs and ac-
tivities carried out under this subsection. 
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185 
‘‘(8) TECHNICAL
ASSISTANCE
AND
EVALUA-
TION.— 
‘‘(A) TECHNICAL ASSISTANCE.—The Sec-
retary shall provide such staff training, tech-
nical assistance, and other activities as the Sec-
retary deems appropriate to support the imple-
mentation of this subsection. 
‘‘(B) EVALUATION.—The Secretary may 
require that States with an approved plan 
under this subsection to participate in an eval-
uation of activities carried out under this sub-
section, including an evaluation using the tech-
niques described in section 172(c). 
‘‘(9) PLAN
REVIEW.—Upon receipt of a 
WIRED plan from the State or local workforce in-
vestment board or boards, the Secretary shall con-
sult with the Federal agency head responsible for 
the administration of any of the programs included 
in the plan pursuant to paragraph (4) or (6). 
‘‘(10) FEDERAL RESPONSIBILITIES.— 
‘‘(A) INTERAGENCY MEMORANDUM OF UN-
DERSTANDING.—Within 90 days following the 
date of enactment of this subsection, the Sec-
retary and the Federal agency heads respon-
sible for programs that could be included in a 
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plan approved under this subsection pursuant 
to paragraph (4) or (6) shall enter into an 
interdepartmental memorandum of agreement 
providing for the implementation of WIRED 
plans with respect to the integration of pro-
grams and funds administered by each Sec-
retary. 
‘‘(B) INTERAGENCY
FUNDS
TRANSFERS 
AUTHORIZED.—The Secretary and the Federal 
agency heads responsible for the programs that 
are included in a plan approved under para-
graph (4) or (6) are authorized to take such ac-
tion as may be necessary to provide for intra- 
agency or interagency transfers of funds other-
wise available to a State or local workforce in-
vestment board or boards in order to further 
the purposes of this subsection. 
‘‘(11) ADMINISTRATION OF FUNDS.— 
‘‘(A) 
SEPARATE
RECORDS
NOT
RE-
QUIRED.—Nothing in this subsection shall be 
construed as requiring the region to maintain 
separate records tracing any services or activi-
ties conducted under an approved WIRED plan 
to the programs under which funds were origi-
nally authorized, nor shall the State or local 
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187 
workforce investment board or boards be re-
quired to allocate expenditures among such pro-
grams. 
‘‘(B) SINGLE AUDIT ACT.—Nothing in this 
section shall be construed to interfere with the 
ability of the Secretary to fulfill the responsibil-
ities for the safeguarding of Federal funds pur-
suant to the Single Audit Act of 1984. 
‘‘(b) AUTHORITY
TO
CARRY
OUT
ADDITIONAL 
WIRED ACTIVITIES UNDER WIA.— 
‘‘(1) AUTHORIZATION
FOR
USE
OF
CERTAIN 
FUNDS UNDER WIA.—Funds available under sections 
128, 133, and 171 of this Act may be used by re-
cipients and subrecipients of those funds for 
WIRED activities, as defined in paragraph (2), in 
addition to the other activities for which such funds 
are authorized to be used. 
‘‘(2) DEFINITION.—For purposes of this sub-
section, WIRED activities include— 
‘‘(A) WIRED planning activities, includ-
ing— 
‘‘(i) defining the regional economy; 
‘‘(ii) creating a broad-based regional 
partnership that assists in developing the 
economic vision described in clause (iv), 
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the strategies described in clause (v), and 
that provides a forum for regional eco-
nomic decisionmaking; 
‘‘(iii) conducting an assessment of the 
regional economy to map the assets of a 
region and identify the strengths, weak-
nesses, opportunities and risks based on 
those assets; 
‘‘(iv) developing an economic vision 
based on those strengths and assets; 
‘‘(v) developing strategies and cor-
responding 
implementation 
plans 
that 
identify specific goals and tasks and pro-
vides a blueprint for how to achieve the 
economic vision for the region; and 
‘‘(vi) identifying resources to support 
the plan of the region; 
‘‘(B) job training and related activities for 
workers to assist them in gaining the skills and 
competencies needed to obtain or upgrade em-
ployment in industries or economic sectors pro-
jected to experience significant growth in the 
region, including— 
‘‘(i) activities supporting talent devel-
opment related to entrepreneurship and 
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189 
small business development in the region; 
and 
‘‘(ii) the purchase of equipment to 
train job seekers and workers for high- 
growth occupations in the region; and 
‘‘(C) activities to enhance training and re-
lated activities and to promote workforce devel-
opment in the region, including— 
‘‘(i) the development and implementa-
tion of model activities, such as developing 
appropriate curricula to build core com-
petencies and train workers in the region; 
‘‘(ii) identifying and disseminating ca-
reer and skill information relating to the 
region; 
‘‘(iii) developing or purchasing re-
gional data tools or systems to deepen un-
derstanding of the regional economy and 
labor market; and 
‘‘(iv) integrated regional planning, 
such as increasing the integration of com-
munity and technical college activities with 
activities of businesses and the public 
workforce investment system to meet the 
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190 
training needs of businesses in the re-
gion.’’. 
SEC. 131. GENERAL PROGRAM REQUIREMENTS. 
Section 195 (29 U.S.C. 2945) is amended— 
(1) in paragraph (7) by inserting at the end the 
following: 
‘‘(D) Funds received by a public or private 
nonprofit entity that are not described in para-
graph (B), such as funds privately raised from 
philanthropic foundations, businesses, or other 
private entities, shall not be considered to be in-
come under this title and shall not be subject 
to the requirements of this section.’’; and 
(2) 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- 
service enterprises that compete with private sector 
employment 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 
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ranking minority members of the Committee on 
Education and Labor of the House of Representa-
tives and the Committee on Health, Education, 
Labor, and Pensions of the Senate.’’. 
TITLE 
II—ADULT 
EDUCATION 
AND FAMILY LITERACY EDU-
CATION 
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 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 indi-
viduals. 
‘‘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.’’. 
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SEC. 202. AMENDMENT. 
Title II (29 U.S.C. 2901 et seq.) is amended to read 
as follows: 
‘‘TITLE 
II—ADULT 
EDUCATION 
AND FAMILY LITERACY EDU-
CATION 
‘‘SEC. 201. SHORT TITLE. 
‘‘This title may be cited as the ‘Adult Education 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 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 ob-
tain employment and self-sufficiency and to success-
fully advance in the workforce; 
‘‘(2) assist adults in the completion of a sec-
ondary school education (or its equivalent) and the 
transition to a post-secondary educational institu-
tion; 
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‘‘(3) assist adults who are parents to enable 
them to support the educational development of their 
children and make informed choices regarding their 
children’s education including, through instruction in 
basic reading, writing, speaking, and math skills; 
and 
‘‘(4) assist adults who are not proficient in 
English in improving their reading, writing, speak-
ing, listening, comprehension, and math skills and 
acquiring an understanding of the American free en-
terprise system, individual freedom, and the respon-
sibilities of citizenship. 
‘‘SEC. 203. DEFINITIONS. 
‘‘In this title: 
‘‘(1) ADULT EDUCATION AND FAMILY LITERACY 
EDUCATION PROGRAMS.—The term ‘adult education 
and family literacy education programs’ means a se-
quence of academic instruction and educational serv-
ices below the post-secondary level that increase an 
individual’s ability to read, write, and speak in 
English and perform mathematical computations 
leading to a level of proficiency equivalent to at least 
a secondary school completion that is provided for 
individuals— 
‘‘(A) who are at least 16 years of age; 
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‘‘(B) who are not enrolled or required to be 
enrolled in secondary school under State law; 
and 
‘‘(C) who— 
‘‘(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-recog-
nized equivalent and have not achieved an 
equivalent 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 
administering or supervising policy for adult 
education and family literacy education pro-
grams in the State or outlying area, respec-
tively, consistent with the law of the State or 
outlying area, respectively; and 
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‘‘(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. 
‘‘(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, organi-
zations, institutions, libraries, or authorities de-
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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 
achieve competence in reading, writing, and speaking 
the English language. 
‘‘(5) ESSENTIAL COMPONENTS OF READING IN-
STRUCTION.—The term ‘essential components of 
reading instruction’ has the meaning given to that 
term in section 1208 of the Elementary and Sec-
ondary Education Act of 1965. 
‘‘(6) 
FAMILY
LITERACY
EDUCATION
PRO-
GRAM.—The term ‘family literacy education pro-
gram’ means an educational program that— 
‘‘(A) assists parents and students, on a 
voluntary 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 sus-
tainable changes in a family, is based upon sci-
entifically based research, and, for the purpose 
of substantially increasing the ability of parents 
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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 
children 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. 
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‘‘(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 
‘‘(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 post-secondary 
education. 
‘‘(12) LOCAL
EDUCATIONAL
AGENCY.—The 
term ‘local educational agency’ has the meaning 
given to that term in section 9101 of the Elemen-
tary and Secondary Education Act of 1965. 
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‘‘(13) OUTLYING
AREA.—The term ‘outlying 
area’ has the meaning given to that term in section 
101 of this Act. 
‘‘(14) POST-SECONDARY
EDUCATIONAL
INSTI-
TUTION.—The term ‘post-secondary educational in-
stitution’ means— 
‘‘(A) an institution of higher education 
that provides not less than a 2-year program of 
instruction 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 post-secondary level. 
‘‘(15) READING.—The term ‘reading’ has the 
meaning given to that term in section 1208 of the 
Elementary 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. 
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‘‘(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 Elemen-
tary and Secondary Education Act of 1965. 
‘‘(20) WORKPLACE LITERACY PROGRAM.—The 
term ‘workplace literacy program’ means an edu-
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 lit-
eracy education program, or an adult education and family 
literacy education program. 
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‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this title such sums as may be necessary for fiscal years 
2011 through 2015. 
‘‘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 incen-
tive grants under section 213; 
‘‘(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 appro-
priated 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 approved 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, sub-
ject to subsections (f) and (g). 
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‘‘(2) PURPOSE
OF
GRANTS.—The Secretary 
may award a grant under paragraph (1) only if the 
eligible agency involved agrees to expend the grant 
in accordance with the provisions of this title. 
‘‘(c) ALLOTMENTS.— 
‘‘(1) INITIAL
ALLOTMENTS.—From the sums 
appropriated 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 approved under section 224— 
‘‘(A) $100,000, in the case of an eligible 
agency serving an outlying area; and 
‘‘(B) $250,000, in the case of any other el-
igible agency. 
‘‘(2) ADDITIONAL
ALLOTMENTS.—From the 
sums appropriated under section 205, not reserved 
under subsection (a), and not allotted under para-
graph (1), for a fiscal year, the Secretary shall allot 
to each eligible agency that receives an initial allot-
ment 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 num-
ber of such adults in all States and outlying areas. 
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‘‘(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.— 
‘‘(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 
provisions of this title as determined by the Sec-
retary. 
‘‘(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 
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Free Association for the Republic of Palau becomes 
effective. 
‘‘(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 2011 and each succeeding fiscal year, no eligi-
ble agency shall receive an allotment under this title 
that is less than 90 percent of the allotment the eli-
gible 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 
allotment under subsection (c)(2)) shall receive an 
allotment equal to 100 percent of the initial allot-
ment. 
‘‘(3) RATABLE REDUCTION.—If for any fiscal 
year the amount available for allotment under this 
title is insufficient to satisfy the provisions of para-
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graph (1), the Secretary shall ratably reduce the 
payments 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 pe-
riod 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 Sec-
retary shall fix, to other eligible agencies in proportion to 
the original 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 sys-
tem, composed of the activities described in this section, 
to assess the effectiveness of eligible agencies in achieving 
continuous improvement of adult education and family lit-
eracy education programs funded under this title, in order 
to optimize the return on investment of Federal funds in 
adult education and family literacy education programs. 
‘‘(b) ELIGIBLE
AGENCY
PERFORMANCE
MEAS-
URES.— 
‘‘(1) IN GENERAL.—For each eligible agency, 
the eligible agency performance measures shall con-
sist of— 
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‘‘(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 
subparagraph (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-
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-recog-
nized equivalent. 
‘‘(iii) Placement in post-secondary 
education or other training programs. 
‘‘(B) EMPLOYMENT
PERFORMANCE
INDI-
CATORS.—Consistent with applicable Federal 
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and State privacy laws, an eligible agency shall 
identify in the State plan the following indi-
vidual participant employment performance in-
dicators: 
‘‘(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 de-
scribed in paragraph (2)(A) for adult edu-
cation and family literacy education pro-
grams authorized under this title. The lev-
els 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 el-
igible agency toward continuously and 
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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 
AGENCY ADJUSTED LEVELS OF PERFORM-
ANCE FOR FIRST 3 YEARS.—In order to en-
sure an optimal return on the investment 
of Federal funds in adult education and 
family literacy education programs author-
ized under this title, the Secretary and 
each eligible agency shall reach agreement 
on levels 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 factors described in clause (iv). 
The levels agreed to under this clause shall 
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be considered to be the eligible agency ad-
justed levels of performance for the eligible 
agency for such years and shall be incor-
porated into the State plan prior to the ap-
proval 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 ad-
justed levels of performance, taking 
into account factors including the 
characteristics of participants when 
the participants entered the program; 
and 
‘‘(II) the extent to which such 
levels promote continuous and signifi-
cant improvement in performance on 
the student proficiency measures used 
by such eligible agency and ensure op-
timal return on the investment of 
Federal funds. 
‘‘(v) AGREEMENT ON ELIGIBLE AGEN-
CY ADJUSTED LEVELS OF PERFORMANCE 
FOR SECOND 3 YEARS.—Prior to the fourth 
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program year covered by the State plan, 
the Secretary and each eligible agency 
shall reach agreement on levels of student 
performance 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 de-
scribed in clause (iv). The levels agreed to 
under this clause shall be considered to be 
the eligible agency adjusted levels of per-
formance 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 de-
scribed in clause (iv)(I), the eligible agency 
may request that the eligible agency ad-
justed 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 
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shall be considered to be eligible agency ad-
justed levels of performance for purposes of this 
title. 
‘‘(c) DEFINITIONS FOR INDICATORS OF PERFORM-
ANCE.—In order to ensure comparability of performance 
data across States, the Secretary shall issue definitions for 
the indicators of performance under paragraph (2). 
‘‘(d) REPORT.— 
‘‘(1) IN GENERAL.—Each eligible agency that 
receives 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 el-
igible agency performance measures, including the 
following: 
‘‘(A) Information on the levels of perform-
ance achieved by the eligible agency with re-
spect to the core indicators of performance and 
employment performance indicators. 
‘‘(B) The number and type of each eligible 
provider that receives funding under such 
grant. 
‘‘(2) INFORMATION DISSEMINATION.—The Sec-
retary— 
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212 
‘‘(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 re-
ports. 
‘‘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 pro-
grams under this title. Such awards shall be based on 
States exceeding the core indicators of performance estab-
lished under section 212(b)(2)(A) and may be based on 
the performance of the State in serving populations, such 
as those described in section 224(b)(10), including the lev-
els of service provided and the performance outcomes, and 
such other factors relating to the performance of the State 
under this title as the Secretary determines appropriate. 
‘‘(b) USE OF FUNDS.—The funds awarded to a State 
under this paragraph may be used to carry out any activi-
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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, 
corrections, public housing, and social service pro-
grams. 
‘‘SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING RE-
QUIREMENT. 
‘‘(a) STATE DISTRIBUTION OF FUNDS.—Each eligi-
ble agency receiving a grant under this title for a fiscal 
year— 
‘‘(1) shall use an amount not less than 82.5 
percent of the grant funds to award grants and con-
tracts under section 231 and to carry out section 
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225, of which not more than 10 percent of such 
amount shall be available to carry out section 225; 
‘‘(2) shall use not more than 12.5 percent of 
the grant funds to carry out State leadership activi-
ties 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 eligi-
ble agency shall provide, for the costs to be incurred 
by the eligible agency in carrying out the adult edu-
cation and family literacy education programs for 
which the grant is awarded, a non-Federal contribu-
tion 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 
and family literacy education programs in the 
outlying area, except that the Secretary may 
decrease the amount of funds required 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 
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funds expended for adult education and family 
literacy education programs in the State. 
‘‘(2) NON-FEDERAL CONTRIBUTION.—An eligi-
ble 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 and family 
literacy education programs in a manner that is con-
sistent 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 and family literacy education 
programs: 
‘‘(1) The establishment or operation of profes-
sional development programs to improve the quality 
of instruction provided pursuant to local activities 
required under section 231(b), including instruction 
incorporating the essential components of reading 
instruction 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 and family literacy 
education programs, including for the development 
and dissemination of scientifically based research in-
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structional 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 and family literacy education programs, 
including distance learning activities, to enable the 
eligible providers to improve the quality of such ac-
tivities. 
‘‘(5) The development and implementation of 
technology applications or distance learning, includ-
ing professional development to support the use of 
instructional technology. 
‘‘(6) Coordination with other public programs, 
including welfare-to-work, workforce development, 
and job training programs. 
‘‘(7) Coordination with existing support serv-
ices, such as transportation, child care, and other 
assistance designed to increase rates of enrollment 
in, and successful completion of, adult education and 
family literacy education programs, for adults en-
rolled in such activities. 
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