145 
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. 
‘‘(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 
or the General Equivalency Diploma (GED) (includ-
146 
ing recognized alternative standards for individuals 
with disabilities); 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 the 
Marshall Islands, the Federated States of Micro-
nesia, and the Republic of Palau, the Secretary shall 
award grants to Guam, American Samoa, the Com-
monwealth of the Northern Mariana Islands, the Re-
public of the Marshall Islands, the Federated States 
of Micronesia, or the Republic of Palau to carry out 
activities 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 
the Marshall Islands, the Federated States of Micro-
nesia, and the Republic of Palau shall be eligible to 
receive a grant under this title until an agreement 
for the extension of United States education assist-
ance under the Compact of Free Association for 
each of the Freely Associated States becomes effec-
tive.
147 
‘‘(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 2004 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-
graph (1), the Secretary shall ratably reduce the 
payments to all eligible agencies, as necessary.
148 
‘‘(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 basic skills and family 
literacy education programs funded under this title, in 
order to optimize the return on investment of Federal 
funds in adult basic skills 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—
149 
‘‘(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 
basic skill levels in reading, writing, and 
speaking the English language and basic 
math, leading to proficiency in each skill. 
‘‘(ii) Receipt of a secondary school di-
ploma or the General Equivalency Diploma 
(GED) (including recognized alternative 
standards for individuals with disabilities). 
‘‘(iii) Placement in postsecondary edu-
cation or other training programs. 
‘‘(B) EMPLOYMENT
PERFORMANCE
INDI-
CATORS.—Consistent with applicable Federal 
and State privacy laws, an eligible agency shall
150 
identify in the State plan the following indi-
vidual participant employment performance in-
dicators— 
‘‘(i) entry into employment; 
‘‘(ii) retention in employment; and 
‘‘(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 basic 
skills 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 
significantly improving the agency’s
151 
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 basic skills and 
family literacy education programs author-
ized under this title, the Secretary and 
each eligible agency shall reach agreement 
on levels of student proficiency for each of 
the core indicators of performance, for the 
first 3 program years covered by the State 
plan, taking into account the levels identi-
fied in the State plan under clause (ii) and 
the factors described in clause (iv). The 
levels agreed to under this clause shall be 
considered to be the eligible agency ad-
152 
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 
program year covered by the State plan,
153 
the Secretary and each eligible agency 
shall reach agreement on levels of student 
proficiency 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 
shall be considered to be eligible agency ad-
154 
justed levels of performance for purposes of this 
title. 
‘‘(c) 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, eligible providers, and the gen-
eral public within the State, a report on the progress 
of the eligible agency in achieving eligible 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— 
‘‘(A) shall make the information contained 
in such reports available to the general public 
through publication and other appropriate 
methods; 
‘‘(B) shall disseminate State-by-State com-
parisons of the information; and
155 
‘‘(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)(2), 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 meeting or exceeding the core indicators of per-
formance established under section 212(b)(2)(A) and may 
be based on the performance of the State in serving popu-
lations, such as those described in section 224(b)(10), in-
cluding the levels of service provided and the performance 
outcomes, and such other factors relating to the perform-
ance of the State under this title as the Secretary deter-
mines appropriate. 
‘‘(b) USE OF FUNDS.—The funds awarded to a State 
under this paragraph may be used to carry out any activi-
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:
156 
‘‘(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 
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
157 
‘‘(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 basic 
skills 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 basic skills 
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 
funds expended for adult basic skills 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,
158 
fairly evaluated, and shall include only non-Federal 
funds that are used for adult basic skills 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 basic skills and family literacy edu-
cation 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 basic skills and family lit-
eracy education programs for development and dis-
semination of scientific research-based instructional 
practices in reading, writing, speaking, math, and 
English language acquisition programs. 
‘‘(3) The provision of assistance to eligible pro-
viders in developing, implementing, and reporting
159 
measurable progress in achieving the objectives of 
this title. 
‘‘(4) The provision of technology assistance, in-
cluding staff training, to eligible providers of adult 
basic skills 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 basic skills 
and family literacy education programs, for adults 
enrolled in such activities. 
‘‘(8) The development and implementation of a 
system to assist in the transition from adult basic 
education to postsecondary education.
160 
‘‘(9) Activities to promote workplace literacy 
programs. 
‘‘(10) Activities to promote and complement 
local outreach initiatives described in section 243(7). 
‘‘(11) Other activities of statewide significance, 
including assisting eligible agencies in achieving 
progress in improving the skill levels of adults who 
participate in programs under this title. 
‘‘(b) COORDINATION.—In carrying out this section, 
eligible agencies shall coordinate where possible, and avoid 
duplicating efforts, in order to maximize the impact of the 
activities described in subsection (a). 
‘‘(c) STATE-IMPOSED REQUIREMENTS.—Whenever a 
State or outlying area implements any rule or policy relat-
ing to the administration or operation of a program au-
thorized under this title that has the effect of imposing 
a requirement that is not imposed under Federal law (in-
cluding any rule or policy based on a State or outlying 
area interpretation of a Federal statute, regulation, or 
guideline), the State or outlying area shall identify, to eli-
gible providers, the rule or policy as being imposed by the 
State or outlying area. 
‘‘SEC. 224. STATE PLAN. 
‘‘(a) 6-YEAR PLANS.—
161 
‘‘(1) IN GENERAL.—Each eligible agency desir-
ing a grant under this title for any fiscal year shall 
submit to, or have on file with, the Secretary a 6- 
year State plan. 
‘‘(2) COMPREHENSIVE
PLAN
OR
APPLICA-
TION.—The eligible agency may submit the State 
plan as part of a comprehensive plan or application 
for Federal education assistance. 
‘‘(b) PLAN CONTENTS.—The eligible agency shall in-
clude in the State plan or any revisions to the State plan— 
‘‘(1) an objective assessment of the needs of in-
dividuals in the State or outlying area for adult 
basic skills and family literacy education programs, 
including individuals most in need or hardest to 
serve; 
‘‘(2) a description of the adult basic skills and 
family literacy education programs that will be car-
ried out with funds received under this title; 
‘‘(3) a description of how the eligible agency 
will evaluate and measure annually the effectiveness 
and improvement of the adult basic skills and family 
literacy education programs based on the perform-
ance measures described in section 212 including—
162 
‘‘(A) how the eligible agency will evaluate 
and measure annually such effectiveness on a 
grant-by-grant basis; and 
‘‘(B) how the eligible agency— 
‘‘(i) will hold eligible providers ac-
countable regarding the progress of such 
providers 
in 
improving 
the 
academic 
achievement of participants in adult edu-
cation programs under this title and re-
garding the core indicators of performance 
described in section 212(b)(2)(A); and 
‘‘(ii) will use technical assistance, 
sanctions, and rewards (including alloca-
tion of grant funds based on performance 
and termination of grant funds based on 
nonperformance); 
‘‘(4) a description of the performance measures 
described in section 212 and how such performance 
measures have significantly improved adult basic 
skills and family literacy education programs in the 
State or outlying area; 
‘‘(5) an assurance that the eligible agency will, 
in addition to meeting all of the other requirements 
of this title, award not less than one grant under 
this title to an eligible provider that—
163 
‘‘(A) offers flexible schedules and necessary 
support services (such as child care and trans-
portation) to enable individuals, including indi-
viduals with disabilities, or individuals with 
other special needs, to participate in adult basic 
skills and family literacy education programs; 
and 
‘‘(B) attempts to coordinate with support 
services that are not provided under this title 
prior to using funds for adult basic skills and 
family literacy education programs provided 
under this title for support services; 
‘‘(6) an assurance that the funds received under 
this title will not be expended for any purpose other 
than for activities under this title; 
‘‘(7) a description of how the eligible agency 
will fund local activities in accordance with the 
measurable goals described in section 231(d); 
‘‘(8) an assurance that the eligible agency will 
expend the funds under this title only in a manner 
consistent with fiscal requirements in section 241; 
‘‘(9) a description of the process that will be 
used for public participation and comment with re-
spect to the State plan, which process—
164 
‘‘(A) shall include consultation with the 
State workforce investment board, the State 
board responsible for administering community 
or technical colleges, the Governor, the State 
educational agency, the State board or agency 
responsible for administering block grants for 
temporary assistance to needy families under 
title IV of the Social Security Act, the State 
council on disabilities, the State vocational re-
habilitation agency, other State agencies that 
promote the improvement of adult basic skills 
and family literacy education programs, and di-
rect providers of such programs; and 
‘‘(B) may include consultation with the 
State agency on higher education, institutions 
responsible for professional development of 
adult basic skills and family literacy education 
programs instructors, representatives of busi-
ness and industry, refugee assistance programs, 
and faith-based organizations; 
‘‘(10) a description of the eligible agency’s 
strategies for serving populations that include, at a 
minimum— 
‘‘(A) low-income individuals; 
‘‘(B) individuals with disabilities;
165 
‘‘(C) the unemployed; 
‘‘(D) the underemployed; and 
‘‘(E) individuals with multiple barriers to 
educational enhancement, including individuals 
with limited English proficiency; 
‘‘(11) a description of how the adult basic skills 
and family literacy education programs that will be 
carried out with any funds received under this title 
will be integrated with other adult education, career 
development, and employment and training activities 
in the State or outlying area served by the eligible 
agency; 
‘‘(12) a description of the steps the eligible 
agency will take to ensure direct and equitable ac-
cess, as required in section 231(c)(1), including— 
‘‘(A) how the State will build the capacity 
of community-based and faith-based organiza-
tions to provide adult basic skills and family lit-
eracy education programs; and 
‘‘(B) how the State will increase the par-
ticipation of business and industry in adult 
basic skills and family literacy education pro-
grams; and 
‘‘(13) a description of how the eligible agency 
will consult with any State agency responsible for
166 
postsecondary education to develop adult education 
that prepares students to enter postsecondary edu-
cation without the need for remediation upon com-
pletion of secondary school equivalency programs. 
‘‘(c) PLAN REVISIONS.—When changes in conditions 
or other factors require substantial revisions to an ap-
proved State plan, the eligible agency shall submit the re-
visions of the State plan to the Secretary. 
‘‘(d) CONSULTATION.—The eligible agency shall— 
‘‘(1) submit the State plan, and any revisions to 
the State plan, to the Governor, the chief State 
school officer, or the State officer responsible for ad-
ministering community or technical colleges, or out-
lying area for review and comment; and 
‘‘(2) ensure that any comments regarding the 
State plan by the Governor, the chief State school 
officer, or the State officer responsible for admin-
istering community or technical colleges, and any re-
vision to the State plan, are submitted to the Sec-
retary. 
‘‘(e) PLAN APPROVAL.—A State plan submitted to 
the Secretary shall be approved by the Secretary only if 
the plan is consistent with the specific provisions of this 
title.
167 
‘‘SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND 
OTHER INSTITUTIONALIZED INDIVIDUALS. 
‘‘(a) PROGRAM AUTHORIZED.—From funds made 
available under section 222(a)(1) for a fiscal year, each 
eligible agency shall carry out corrections education and 
education for other institutionalized individuals. 
‘‘(b) USES OF FUNDS.—The funds described in sub-
section (a) shall be used for the cost of educational pro-
grams for criminal offenders in correctional institutions 
and for other institutionalized individuals, including aca-
demic programs for— 
‘‘(1) basic skills education; 
‘‘(2) special education programs as determined 
by the eligible agency; 
‘‘(3) reading, writing, speaking, and math pro-
grams; and 
‘‘(4) secondary school credit or diploma pro-
grams or their recognized equivalent. 
‘‘(c) PRIORITY.—Each eligible agency that is using 
assistance provided under this section to carry out a pro-
gram for criminal offenders within a correctional institu-
tion shall give priority to serving individuals who are likely 
to leave the correctional institution within 5 years of par-
ticipation in the program. 
‘‘(d) DEFINITIONS.—For purposes of this section:
168 
‘‘(1) CORRECTIONAL INSTITUTION.—The term 
‘correctional institution’ means any— 
‘‘(A) prison; 
‘‘(B) jail; 
‘‘(C) reformatory; 
‘‘(D) work farm; 
‘‘(E) detention center; or 
‘‘(F) halfway house, community-based re-
habilitation center, or any other similar institu-
tion designed for the confinement or rehabilita-
tion of criminal offenders. 
‘‘(2) CRIMINAL OFFENDER.—The term ‘crimi-
nal offender’ means any individual who is charged 
with, or convicted of, any criminal offense. 
‘‘CHAPTER 3—LOCAL PROVISIONS 
‘‘SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PRO-
VIDERS. 
‘‘(a) GRANTS AND CONTRACTS.—From grant funds 
made available under section 211(b), each eligible agency 
shall award multiyear grants or contracts, on a competi-
tive basis, to eligible providers within the State or outlying 
area that meet the conditions and requirements of this 
title to enable the eligible providers to develop, implement, 
and improve adult basic skills and family literacy edu-
cation programs within the State.
169 
‘‘(b) LOCAL ACTIVITIES.—The eligible agency shall 
require eligible providers receiving a grant or contract 
under subsection (a) to establish or operate one or more 
programs of instruction that provide services or instruc-
tion in one or more of the following categories: 
‘‘(1) Adult basic skills and family literacy edu-
cation programs (including proficiency in reading, 
writing, speaking, and math). 
‘‘(2) Workplace literacy programs. 
‘‘(3) English language acquisition programs. 
‘‘(4) Family literacy education programs. 
‘‘(c) DIRECT AND EQUITABLE ACCESS; SAME PROC-
ESS.—Each eligible agency receiving funds under this title 
shall ensure that— 
‘‘(1) all eligible providers have direct and equi-
table access to apply for grants or contracts under 
this section; and 
‘‘(2) the same grant or contract announcement 
process and application process is used for all eligi-
ble providers in the State or outlying area. 
‘‘(d) MEASURABLE GOALS.—The eligible agency shall 
require eligible providers receiving a grant or contract 
under subsection (a) to demonstrate— 
‘‘(1) the eligible provider’s measurable goals for 
participant outcomes to be achieved annually on the
170 
core indicators of performance and employment per-
formance indicators described in section 212(b)(2); 
‘‘(2) the past effectiveness of the eligible pro-
vider in improving the basic academic skills of adults 
and, for eligible providers receiving grants in the 
prior year, the success of the eligible provider receiv-
ing funding under this title in meeting or exceeding 
its performance goals in the prior year; 
‘‘(3) the commitment of the eligible provider to 
serve individuals in the community who are the most 
in need of basic academic skills instruction services, 
including individuals who are low-income or have 
minimal reading, writing, speaking, and math skills, 
or limited English proficiency; 
‘‘(4) the program— 
‘‘(A) is of sufficient intensity and duration 
for participants to achieve substantial learning 
gains; and 
‘‘(B) uses instructional practices that in-
clude the essential components of reading in-
struction; 
‘‘(5) educational practices are based on scientif-
ically based research;
171 
‘‘(6) the activities of the eligible provider effec-
tively employ advances in technology, as appropriate, 
including the use of computers; 
‘‘(7) the activities provide instruction in real-life 
contexts, when appropriate and scientifically based, 
to ensure that an individual has the skills needed to 
compete in the workplace and exercise the rights and 
responsibilities of citizenship; 
‘‘(8) the activities are staffed by well-trained in-
structors, counselors, and administrators; 
‘‘(9) the activities are coordinated with other 
available resources in the community, such as 
through strong links with elementary schools and 
secondary schools, postsecondary educational institu-
tions, one-stop centers, job training programs, com-
munity-based and faith-based organizations, and so-
cial service agencies; 
‘‘(10) the activities offer flexible schedules and 
support services (such as child care and transpor-
tation) that are necessary to enable individuals, in-
cluding individuals with disabilities or other special 
needs, to attend and complete programs; 
‘‘(11) the activities include a high-quality infor-
mation management system that has the capacity to 
report measurable participant outcomes and to mon-
172 
itor program performance against the performance 
measures established by the eligible agency; 
‘‘(12) the local communities have a dem-
onstrated need for additional English language ac-
quisition programs; 
‘‘(13) the capacity of the eligible provider to 
produce valid information on performance results, 
including enrollments and measurable participant 
outcomes; 
‘‘(14) adult basic skills and family literacy edu-
cation programs offer rigorous reading, writing, 
speaking, and math content that are based on sci-
entific research; and 
‘‘(15) applications of technology, and services to 
be provided by the eligible providers, are of sufficient 
intensity and duration to increase the amount and 
quality of learning and lead to measurable learning 
gains within specified time periods. 
‘‘(e) SPECIAL RULE.—Eligible providers may use 
grant funds under this title to serve children participating 
in family literacy programs assisted under this part, pro-
vided that other sources of funds available to provide simi-
lar services for such children are used first.
173 
‘‘SEC. 232. LOCAL APPLICATION. 
‘‘Each eligible provider desiring a grant or contract 
under this title shall submit an application to the eligible 
agency containing such information and assurances as the 
eligible agency may require, including— 
‘‘(1) a description of how funds awarded under 
this title will be spent consistent with the require-
ments of this title; 
‘‘(2) a description of any cooperative arrange-
ments the eligible provider has with other agencies, 
institutions, or organizations for the delivery of 
adult basic skills and family literacy education pro-
grams; and 
‘‘(3) each of the demonstrations required by 
section 231(d). 
‘‘SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS. 
‘‘(a) IN GENERAL.—Subject to subsection (b), of the 
amount that is made available under this title to an eligi-
ble provider— 
‘‘(1) at least 95 percent shall be expended for 
carrying out adult basic skills and family literacy 
education programs; and 
‘‘(2) the remaining amount shall be used for 
planning, administration, personnel and professional 
development, development of measurable goals in
174 
reading, writing, speaking, and math, and inter-
agency coordination. 
‘‘(b) SPECIAL RULE.—In cases where the cost limits 
described in subsection (a) are too restrictive to allow for 
adequate planning, administration, personnel develop-
ment, and interagency coordination, the eligible provider 
may negotiate with the eligible agency in order to deter-
mine an adequate level of funds to be used for noninstruc-
tional purposes. 
‘‘CHAPTER 4—GENERAL PROVISIONS 
‘‘SEC. 241. ADMINISTRATIVE PROVISIONS. 
‘‘(a) SUPPLEMENT
NOT SUPPLANT.—Funds made 
available for adult basic skills and family literacy edu-
cation programs under this title shall supplement and not 
supplant other State or local public funds expended for 
adult basic skills and family literacy education programs. 
‘‘(b) MAINTENANCE OF EFFORT.— 
‘‘(1) IN GENERAL.— 
‘‘(A) DETERMINATION.—An eligible agency 
may receive funds under this title for any fiscal 
year if the Secretary finds that the fiscal effort 
per student or the aggregate expenditures of 
such eligible agency for activities under this 
title, in the second preceding fiscal year, were 
not less than 90 percent of the fiscal effort per
175 
student or the aggregate expenditures of such 
eligible agency for adult basic skills and family 
literacy education programs, in the third pre-
ceding fiscal year. 
‘‘(B) PROPORTIONATE REDUCTION.—Sub-
ject to paragraphs (2), (3), and (4), for any fis-
cal year with respect to which the Secretary de-
termines under subparagraph (A) that the fiscal 
effort or the aggregate expenditures of an eligi-
ble agency for the preceding program year were 
less than such effort or expenditures for the 
second preceding program year, the Secretary— 
‘‘(i) shall determine the percentage 
decreases in such effort or in such expendi-
tures; and 
‘‘(ii) shall decrease the payment made 
under this title for such program year to 
the agency for adult basic skills and family 
literacy education programs by the lesser 
of such percentages. 
‘‘(2) COMPUTATION.—In computing the fiscal 
effort and aggregate expenditures under paragraph 
(1), the Secretary shall exclude capital expenditures 
and special one-time project costs.
176 
‘‘(3) DECREASE IN FEDERAL SUPPORT.—If the 
amount made available for adult basic skills and 
family literacy education programs under this title 
for a fiscal year is less than the amount made avail-
able for adult basic skills and family literacy edu-
cation programs under this title for the preceding 
fiscal year, then the fiscal effort per student and the 
aggregate expenditures of an eligible agency required 
in order to avoid a reduction under paragraph 
(1)(B) shall be decreased by the same percentage as 
the percentage decrease in the amount so made 
available. 
‘‘(4) WAIVER.—The Secretary may waive the 
requirements of this subsection for not more than 1 
fiscal year, if the Secretary determines that a waiver 
would be equitable due to exceptional or uncontrol-
lable circumstances, such as a natural disaster or an 
unforeseen and precipitous decline in the financial 
resources of the State or outlying area of the eligible 
agency. If the Secretary grants a waiver under the 
preceding sentence for a fiscal year, the level of ef-
fort required under paragraph (1) shall not be re-
duced in the subsequent fiscal year because of the 
waiver.
177 
‘‘SEC. 242. NATIONAL INSTITUTE FOR LITERACY. 
‘‘(a) IN GENERAL.— 
‘‘(1) PURPOSE.—The purpose of the National 
Institute for Literacy is to promote the improvement 
of literacy, including skills in reading, writing, and 
English language acquisition for children, youth, and 
adults, through practices derived from the findings 
of scientifically based research. 
‘‘(2) ESTABLISHMENT.—There is established a 
National Institute for Literacy (in this section re-
ferred to as the ‘Institute’). The Institute shall be 
administered under the terms of an interagency 
agreement entered into, reviewed annually, and 
modified as needed by the Secretary of Education 
with the Secretary of Health and Human Services 
and the Secretary of Labor (in this section referred 
to as the ‘Interagency Group’). 
‘‘(3) OFFICES.—The Institute shall have offices 
separate from the offices of the Department of Edu-
cation, the Department of Health and Human Serv-
ices, and the Department of Labor. 
‘‘(4) ADMINISTRATIVE SUPPORT.—The Depart-
ment of Education shall provide administrative sup-
port for the Institute.
178 
‘‘(5) DAILY OPERATIONS.—The Director of the 
Institute shall administer the daily operations of the 
Institute. 
‘‘(b) DUTIES.— 
‘‘(1) IN GENERAL.—To carry out its purpose, 
the Institute may— 
‘‘(A) identify rigorous scientific research 
on the effectiveness of instructional practices 
and organizational strategies relating to pro-
grams on the acquisition of skills in reading, 
writing, and English language acquisition for 
children, youth, and adults; 
‘‘(B) create and widely disseminate mate-
rials about the acquisition and application of 
skills in reading, writing, and English language 
acquisition for children, youth, and adults based 
on scientifically based research; 
‘‘(C) promote a broad understanding of 
scientifically based research on reading, writing, 
and English language acquisition for children, 
youth, and adults among Federal agencies with 
responsibilities for administering programs that 
provide related services; 
‘‘(D) facilitate coordination and informa-
tion sharing among national organizations and
179 
associations interested in programs that provide 
services to improve skills in reading, writing, 
and English language acquisition for children, 
youth, and adults; 
‘‘(E) work cooperatively with the appro-
priate offices in the Department of Education, 
the Department of Health and Human Services, 
the Department of Labor, and other Federal 
agencies to apply the findings of scientifically 
based research related to programs on reading, 
writing, and English language acquisition for 
children, youth, and adults; and 
‘‘(F) establish a national electronic data-
base and Internet site describing scientifically 
based programs on reading, writing, and 
English language acquisition for children, 
youth, and adults, including professional devel-
opment programs. 
‘‘(2) COORDINATION.—In identifying scientif-
ically based research on reading, writing, and 
English language acquisition for children, youth, and 
adults, the Institute shall use standards for research 
quality that are consistent with those established by 
the Institute of Education Sciences.
180 
‘‘(3) GRANTS, CONTRACTS, AND COOPERATIVE 
AGREEMENTS.— 
‘‘(A) IN
GENERAL.—The Institute may 
award grants to, or enter into contracts or co-
operative agreements with, individuals, public 
or private institutions, agencies, organizations, 
or consortia of such individuals, institutions, 
agencies, or organizations, to carry out the ac-
tivities of the Institute. 
‘‘(B) REGULATIONS.—The Director may 
adopt the general administrative regulations of 
the Department of Education, as applicable, for 
use by the Institute. 
‘‘(C) RELATION
TO
OTHER
LAWS.—The 
duties and powers of the Institute under this 
title are in addition to the duties and powers of 
the Institute under subparts 1, 2, and 3 of part 
B of the Elementary and Secondary Education 
Act of 1965 (commonly referred to as Reading 
First, Early Reading First, and the William F. 
Goodling Even Start Family Literacy Program, 
respectively). 
‘‘(c) VISITING SCHOLARS.—The Institute may estab-
lish a visiting scholars program, with such stipends and
181 
allowances as the Director considers necessary, for out-
standing researchers, scholars, and individuals who— 
‘‘(1) have careers in adult education, workforce 
development, or scientifically based reading, writing, 
or English language acquisition; and 
‘‘(2) can assist the Institute in translating re-
search into practice and providing analysis that ad-
vances instruction in the fields of reading, writing, 
and English language acquisition for children, youth, 
and adults. 
‘‘(d) INTERNS AND VOLUNTEERS.—The Institute, in 
consultation with the National Institute for Literacy Advi-
sory Board, may award paid and unpaid internships to 
individuals seeking to assist the Institute in carrying out 
its purpose. Notwithstanding section 1342 of title 31, 
United States Code, the Institute may accept and use vol-
untary and uncompensated services as the Institute deter-
mines necessary. 
‘‘(e) NATIONAL INSTITUTE FOR LITERACY ADVISORY 
BOARD.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN GENERAL.—There shall be a Na-
tional Institute for Literacy Advisory Board (in 
this section referred to as the ‘Board’), which 
shall consist of 7 individuals appointed by the
182 
President with the advice and consent of the 
Senate. 
‘‘(B) QUALIFICATIONS.—The Board shall 
be composed of individuals who— 
‘‘(i) are not otherwise officers or em-
ployees of the Federal Government; and 
‘‘(ii) are knowledgeable about current 
successful scientific research findings on 
instruction 
in 
reading, 
writing, 
and 
English language acquisition for children, 
youth, and adults. 
‘‘(C) COMPOSITION.—The Board may in-
clude— 
‘‘(i) representatives of business, indus-
try, labor, literacy organizations, adult 
education providers, community colleges, 
and students with disabilities; and 
‘‘(ii) individuals who, and representa-
tives of entities that, have been successful 
in improving skills in reading, writing, and 
English language acquisition for children, 
youth, and adults. 
‘‘(2) DUTIES.—The Board shall—
183 
‘‘(A) make recommendations to the Sec-
retary of Education concerning the appointment 
of the Director of the Institute; 
‘‘(B) provide independent advice on the op-
eration of the Institute; 
‘‘(C) receive reports from the Interagency 
Group and the Director; and 
‘‘(D) review the biennial report to the Con-
gress under subsection (k). 
‘‘(3) FEDERAL
ADVISORY
COMMITTEE
ACT.— 
Except as otherwise provided, the Board shall be 
subject to the provisions of the Federal Advisory 
Committee Act. 
‘‘(4) APPOINTMENTS.— 
‘‘(A) IN GENERAL.—Each member of the 
Board shall be appointed for a term of 3 years, 
except that the initial terms for members may 
be 1, 2, or 3 years in order to establish a rota-
tion in which one-third of the members are se-
lected each year. Any such member may be ap-
pointed for not more than 2 consecutive terms. 
‘‘(B) VACANCIES.—Any member appointed 
to fill a vacancy occurring before the expiration 
of the term for which the member’s predecessor 
was appointed shall be appointed only for the
184 
remainder of that term. A member may serve 
after the expiration of that member’s term until 
a successor has taken office. 
‘‘(5) QUORUM.—A majority of the members of 
the Board shall constitute a quorum, but a lesser 
number may hold hearings. A recommendation of 
the Board may be passed only by a majority of the 
Board’s members present at a meeting for which 
there is a quorum. 
‘‘(6) ELECTION
OF
OFFICERS.—The Chair-
person and Vice Chairperson of the Board shall be 
elected by the members of the Board. The term of 
office of the Chairperson and Vice Chairperson shall 
be 2 years. 
‘‘(7) MEETINGS.—The Board shall meet at the 
call of the Chairperson or a majority of the members 
of the Board. 
‘‘(f) GIFTS, BEQUESTS, AND DEVISES.— 
‘‘(1) IN GENERAL.—The Institute may accept, 
administer, and use gifts or donations of services, 
money, or property, whether real or personal, tan-
gible or intangible. 
‘‘(2) RULES.—The Board shall establish writ-
ten rules setting forth the criteria to be used by the 
Institute in determining whether the acceptance of
185 
contributions of services, money, or property whether 
real or personal, tangible or intangible, would reflect 
unfavorably upon the ability of the Institute or any 
employee to carry out the responsibilities of the In-
stitute or employee, or official duties, in a fair and 
objective manner, or would compromise the integrity, 
or the appearance of the integrity, of the Institute’s 
programs or any official involved in those programs. 
‘‘(g) MAILS.—The Board and the Institute may use 
the United States mails in the same manner and under 
the same conditions as other departments and agencies of 
the United States. 
‘‘(h) DIRECTOR.—The Secretary of Education, after 
considering recommendations made by the Board and con-
sulting with the Interagency Group, shall appoint and fix 
the pay of the Director of the Institute and, when nec-
essary, shall appoint an Interim Director of the Institute. 
‘‘(i) APPLICABILITY
OF CERTAIN CIVIL SERVICE 
LAWS.—The Director and staff of the Institute may be 
appointed without regard to the provisions of title 5, 
United States Code, governing appointments in the com-
petitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 
of that title relating to classification and General Schedule 
pay rates, except that an individual so appointed may not
186
receive pay in excess of the annual rate of basic pay pay-
able for level IV of the Executive Schedule. 
‘‘(j) EXPERTS AND CONSULTANTS.—The Institute 
may procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code. 
‘‘(k) BIENNIAL REPORT.—
‘‘(1) IN GENERAL.—The Institute shall submit 
a report biennially to the Committee on Education 
and the Workforce of the House of Representatives 
and the Committee on Health, Education, Labor, 
and Pensions of the Senate. Each report submitted 
under this subsection shall include—
‘‘(A) a comprehensive and detailed descrip-
tion of the Institute’s operations, activities, fi-
nancial condition, and accomplishments in iden-
tifying and describing programs on reading, 
writing, and English language acquisition for 
children, youth, and adults for the period cov-
ered by the report; and 
‘‘(B) a description of how plans for the op-
eration of the Institute for the succeeding 2 fis-
cal years will facilitate achievement of the pur-
pose of the Institute. 
‘‘(2) FIRST REPORT.—The Institute shall sub-
mit its first report under this subsection to the Con-
187
gress not later than 1 year after the date of the en-
actment of the Job Training Improvement Act of 
2005. 
‘‘(l) FUNDING.—
‘‘(1) ADDITIONAL FUNDING.—In addition to the 
funds authorized under section 205 and reserved for 
the Institute under section 211, the Secretary of 
Education, the Secretary of Health and Human 
Services, the Secretary of Labor, or the head of any 
other Federal agency or department that partici-
pates in the activities of the Institute may provide 
funds to the Institute for activities that the Institute 
is authorized to perform under this section. 
‘‘SEC. 243. NATIONAL LEADERSHIP ACTIVITIES. 
‘‘The Secretary shall establish and carry out a pro-
gram of national leadership activities that may include the 
following: 
‘‘(1) Technical assistance, on request, including 
assistance—
‘‘(A) on requests to volunteer community- 
and faith-based organizations, including but not 
limited to, improving their fiscal management, 
research-based instruction, and reporting re-
quirements, and the development of measurable
188
objectives to carry out the requirements of this 
title; 
‘‘(B) in developing valid, measurable, and 
reliable performance data, and using perform-
ance information for the improvement of adult 
basic skills and family literacy education pro-
grams; 
‘‘(C) on adult education professional devel-
opment; and 
‘‘(D) in using distance learning and im-
proving the application of technology in the 
classroom. 
‘‘(2) Providing for the conduct of research on 
national literacy basic skill acquisition levels among 
adults, including the number of adults functioning at 
different levels of reading proficiency. 
‘‘(3) Improving the coordination, efficiency, and 
effectiveness of adult education and workforce devel-
opment services at the national, State, and local lev-
els. 
‘‘(4) Determining how participation in adult 
basic skills and family literacy education programs 
prepares individuals for entry into and success in 
postsecondary education and employment, and in the
189
case of prison-based services, the effect on recidi-
vism. 
‘‘(5) Evaluating how different types of pro-
viders, including community and faith-based organi-
zations or private for-profit agencies measurably im-
prove the skills of participants in adult basic skills 
and family literacy education programs. 
‘‘(6) Identifying model integrated basic and 
workplace skills education programs, coordinated lit-
eracy and employment services, and effective strate-
gies for serving adults with disabilities. 
‘‘(7) Supporting the development of an entity 
that would produce and distribute technology-based 
programs and materials for adult basic skills and 
family literacy education programs using an inter-
communication system, as that term is defined in 
section 397 of the Communications Act of 1934, and 
expand the effective outreach and use of such pro-
grams and materials to adult education eligible pro-
viders. 
‘‘(8) Initiating other activities designed to im-
prove the measurable quality and effectiveness of 
adult basic skills and family literacy education pro-
grams nationwide.’’.
190
PART B—GENERAL PROVISIONS 
SEC. 211. TRANSITION. 
The Secretary shall take such actions as the Sec-
retary determines to be appropriate to provide for the or-
derly implementation of this title. 
TITLE III—AMENDMENTS TO 
THE WAGNER-PEYSER ACT 
SEC. 301. AMENDMENTS TO THE WAGNER-PEYSER ACT. 
The Wagner-Peyser Act (29 U.S.C. 49 et. seq.) is 
amended—
(1) by striking sections 1 through 13; 
(2) in section 14 by inserting ‘‘of Labor’’ after 
‘‘Secretary’’; and 
(3) by amending section 15 to read as follows: 
‘‘SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION 
SYSTEM. 
‘‘(a) SYSTEM CONTENT.—
‘‘(1) IN GENERAL.—The Secretary of Labor, in 
accordance with the provisions of this section, shall 
oversee the development, maintenance, and contin-
uous improvement of a nationwide workforce and 
labor market information system that includes—
‘‘(A) statistical data from cooperative sta-
tistical survey and projection programs and 
data from administrative reporting systems 
that, taken together, enumerate, estimate, and
191
project employment opportunities and condi-
tions at national, State, and local levels in a 
timely manner, including statistics on—
‘‘(i) employment and unemployment 
status of national, State, and local popu-
lations, including self-employed, part-time, 
and seasonal workers; 
‘‘(ii) industrial distribution of occupa-
tions, as well as current and projected em-
ployment opportunities, wages, benefits 
(where data is available), and skill trends 
by occupation and industry, with particular 
attention paid to State and local condi-
tions; 
‘‘(iii) the incidence of, industrial and 
geographical location of, and number of 
workers displaced by, permanent layoffs 
and plant closings; and 
‘‘(iv) employment and earnings infor-
mation maintained in a longitudinal man-
ner to be used for research and program 
evaluation; 
‘‘(B) information on State and local em-
ployment opportunities, and other appropriate
192
statistical data related to labor market dynam-
ics, which—
‘‘(i) shall be current and comprehen-
sive; 
‘‘(ii) shall meet the needs identified 
through the consultations described in sub-
paragraphs (A) and (B) of subsection 
(e)(2); and 
‘‘(iii) shall meet the needs for the in-
formation identified in section 134(d); 
‘‘(C) technical standards (which the Sec-
retary shall publish annually) for data and in-
formation described in subparagraphs (A) and 
(B) that, at a minimum, meet the criteria of 
chapter 35 of title 44, United States Code; 
‘‘(D) procedures to ensure compatibility 
and additivity of the data and information de-
scribed in subparagraphs (A) and (B) from na-
tional, State, and local levels; 
‘‘(E) procedures to support standardization 
and aggregation of data from administrative re-
porting systems described in subparagraph (A) 
of employment-related programs;
193
‘‘(F) analysis of data and information de-
scribed in subparagraphs (A) and (B) for uses 
such as—
‘‘(i) national, State, and local policy-
making; 
‘‘(ii) implementation of Federal poli-
cies (including allocation formulas); 
‘‘(iii) program planning and evalua-
tion; and 
‘‘(iv) researching labor market dynam-
ics; 
‘‘(G) wide dissemination of such data, in-
formation, and analysis in a user-friendly man-
ner and voluntary technical standards for dis-
semination mechanisms; and 
‘‘(H) programs of—
‘‘(i) training for effective data dis-
semination; 
‘‘(ii) research and demonstration; and 
‘‘(iii) programs and technical assist-
ance. 
‘‘(2) INFORMATION TO BE CONFIDENTIAL.—
‘‘(A) IN
GENERAL.—No officer or em-
ployee of the Federal Government or agent of 
the Federal Government may—
194
‘‘(i) use any submission that is fur-
nished for exclusively statistical purposes 
under the provisions of this section for any 
purpose other than the statistical purposes 
for which the submission is furnished; 
‘‘(ii) make any publication or media 
transmittal of the data contained in the 
submission described in clause (i) that per-
mits information concerning individual 
subjects to be reasonably inferred by either 
direct or indirect means; or 
‘‘(iii) permit anyone other than a 
sworn officer, employee, or agent of any 
Federal department or agency, or a con-
tractor (including an employee of a con-
tractor) of such department or agency, to 
examine an individual submission described 
in clause (i); 
without the consent of the individual, agency, or 
other person who is the subject of the submis-
sion or provides that submission. 
‘‘(B) IMMUNITY FROM LEGAL PROCESS.—
Any submission (including any data derived 
from the submission) that is collected and re-
tained by a Federal department or agency, or
195
an officer, employee, agent, or contractor of 
such a department or agency, for exclusively 
statistical purposes under this section shall be 
immune from the legal process and shall not, 
without the consent of the individual, agency, or 
other person who is the subject of the submis-
sion or provides that submission, be admitted 
as evidence or used for any purpose in any ac-
tion, suit, or other judicial or administrative 
proceeding. 
‘‘(C) RULE OF CONSTRUCTION.—Nothing 
in this section shall be construed to provide im-
munity from the legal process for such submis-
sion (including any data derived from the sub-
mission) if the submission is in the possession 
of any person, agency, or entity other than the 
Federal Government or an officer, employee, 
agent, or contractor of the Federal Government, 
or if the submission is independently collected, 
retained, or produced for purposes other than 
the purposes of this Act. 
‘‘(b) SYSTEM RESPONSIBILITIES.—
‘‘(1) IN GENERAL.—The workforce and labor 
market information system described in subsection 
(a) shall be planned, administered, overseen, and
196
evaluated through a cooperative governance struc-
ture involving the Federal Government and States. 
‘‘(2) DUTIES.—The Secretary, with respect to 
data collection, analysis, and dissemination of labor 
employment statistics for the system, shall carry out 
the following duties: 
‘‘(A) Assign responsibilities within the De-
partment of Labor for elements of the work-
force and labor market information system de-
scribed in subsection (a) to ensure that all sta-
tistical and administrative data collected is con-
sistent with appropriate Bureau of Labor Sta-
tistics standards and definitions. 
‘‘(B) Actively seek the cooperation of other 
Federal agencies to establish and maintain 
mechanisms for ensuring complementarity and 
nonduplication in the development and oper-
ation of statistical and administrative data col-
lection activities. 
‘‘(C) Eliminate gaps and duplication in 
statistical undertakings, with the systemization 
of wage surveys as an early priority. 
‘‘(D) In collaboration with the Bureau of 
Labor Statistics and States, develop and main-
tain the elements of the workforce and labor
197
market information system described in sub-
section (a), including the development of con-
sistent procedures and definitions for use by the 
States in collecting the data and information 
described in subparagraphs (A) and (B) of sub-
section (a)(1). 
‘‘(E) Establish procedures for the system 
to ensure that—
‘‘(i) such data and information are 
timely; 
‘‘(ii) paperwork and reporting for the 
system are reduced to a minimum; and 
‘‘(iii) States and localities are fully in-
volved in the development and continuous 
improvement of the system at all levels, in-
cluding ensuring the provision, to such 
States and localities, of budget information 
necessary for carrying out their respon-
sibilities under subsection (e). 
‘‘(c) NATIONAL ELECTRONIC TOOLS
TO PROVIDE 
SERVICES.—The Secretary is authorized to assist in the 
development of national electronic tools that may be used 
to facilitate the delivery of core services described in sec-
tion 134 and to provide workforce information to individ-
198
uals through the one-stop delivery systems descried in sec-
tion 121 and through other appropriate delivery systems. 
‘‘(d) COORDINATION WITH THE STATES.—
‘‘(1) IN
GENERAL.—The Secretary, working 
through the Bureau of Labor Statistics and the Em-
ployment and Training Administration, shall regu-
larly consult with representatives of State agencies 
carrying out workforce information activities regard-
ing strategies for improving the workforce and labor 
market information system. 
‘‘(2) FORMAL CONSULTATIONS.—At least twice 
each year, the Secretary, working through the Bu-
reau of Labor Statistics, shall conduct formal con-
sultations regarding programs carried out by the 
Bureau of Labor Statistics with representatives of 
each of the 10 Federal regions of the Department of 
Labor, elected from the State directors affiliated 
with State agencies that perform the duties de-
scribed in subsection (e)(2). 
‘‘(e) STATE RESPONSIBILITIES.—
‘‘(1) DESIGNATION
OF
STATE
AGENCY.—In 
order to receive Federal financial assistance under 
this section, the Governor of a State shall—
‘‘(A) designate a single State agency to be 
responsible for the management of the portions
199
of the workforce and labor market information 
system described in subsection (a) that com-
prise a statewide workforce and labor market 
information system and for the State’s partici-
pation in the development of the annual plan; 
and 
‘‘(B) establish a process for the oversight 
of such system. 
‘‘(2) DUTIES.—In order to receive Federal fi-
nancial assistance under this section, the State agen-
cy shall—
‘‘(A) consult with State and local employ-
ers, participants, and local workforce invest-
ment boards about the labor market relevance 
of the data to be collected and disseminated 
through the statewide workforce and labor mar-
ket information system; 
‘‘(B) consult with State educational agen-
cies and local educational agencies concerning 
the provision of employment statistics in order 
to meet the needs of secondary school and post-
secondary school students who seek such infor-
mation; 
‘‘(C) collect and disseminate for the sys-
tem, on behalf of the State and localities in the
200
State, the information and data described in 
subparagraphs (A) and (B) of subsection 
(a)(1); 
‘‘(D) maintain and continuously improve 
the statewide workforce and labor market infor-
mation system in accordance with this section; 
‘‘(E) perform contract and grant respon-
sibilities for data collection, analysis, and dis-
semination for such system; 
‘‘(F) conduct such other data collection, 
analysis, and dissemination activities as will en-
sure an effective statewide workforce and labor 
market information system; 
‘‘(G) actively seek the participation of 
other State and local agencies in data collec-
tion, analysis, and dissemination activities in 
order to ensure complementarity, compatibility, 
and usefulness of data; 
‘‘(H) participate in the development of the 
annual plan described in subsection (c); and 
‘‘(I) utilize the quarterly records described 
in section 136(f)(2) of the Workforce Invest-
ment Act of 1998 to assist the State and other 
States in measuring State progress on State 
performance measures.
201
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this section shall be construed as limiting the ability 
of a State agency to conduct additional data collec-
tion, analysis, and dissemination activities with 
State funds or with Federal funds from sources 
other than this section. 
‘‘(f) NONDUPLICATION REQUIREMENT.—None of the 
functions and activities carried out pursuant to this sec-
tion shall duplicate the functions and activities carried out 
under the Carl D. Perkins Vocational and Applied Tech-
nology Education Act (20 U.S.C. 2301 et seq.). 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary for each of the fiscal years 
2006 through 2011. 
‘‘(h) DEFINITION.—In this section, the term ‘local 
area’ means the smallest geographical area for which data 
can be produced with statistical reliability.’’. 
TITLE IV—AMENDMENTS TO THE 
REHABILITATION ACT OF 1973
SEC. 401. FINDINGS. 
Section 2(a) of the Rehabilitation Act of 1973 (29 
U.S.C. 701(a)) is amended—
(1) in paragraph (5), by striking ‘‘and’’ at the 
end;
202
(2) in paragraph (6), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(7) there is a substantial need to improve and 
expand services for students with disabilities under 
this Act.’’. 
SEC. 402. REHABILITATION SERVICES ADMINISTRATION. 
Section 3(a) of the Rehabilitation Act of 1973 (29 
U.S.C. 702(a)) is amended—
(1) by striking ‘‘Office of the Secretary’’ and 
inserting ‘‘Department of Education’’; 
(2) by striking ‘‘President by and with the ad-
vice and consent of the Senate’’ and inserting ‘‘Sec-
retary, except that the current Commissioner ap-
pointed under the authority existing on the day prior 
to the date of enactment of the Job Training Im-
provement Act of 2005 may continue to serve in the 
former capacity’’; and 
(3) by striking ‘‘, and the Commissioner shall 
be the principal officer,’’. 
SEC. 403. DIRECTOR. 
(a) IN GENERAL.—The Rehabilitation Act of 1973 
(29 U.S.C. 701 et seq.) is amended by striking ‘‘Commis-
sioner’’ each place it appears, except in section 21, and 
inserting ‘‘Director’’.
203
(b) EXCEPTION.—Section 21 of the Rehabilitation 
Act of 1973 (29 U.S.C. 718) is amended—
(1) in subsection (b)(1)—
(A) by striking ‘‘Commissioner’’ the first 
place it appears and inserting ‘‘Director of the 
Rehabilitation Services Administration’’; and 
(B) by striking ‘‘(referred to in this sub-
section as the ‘Director’ ’’; and 
(2) by striking ‘‘Commissioner and the Direc-
tor’’ each place it appears and inserting ‘‘both such 
Directors’’. 
SEC. 404. DEFINITIONS. 
Section 7 of the Rehabilitation Act of 1973 (29 
U.S.C. 705) is amended—
(1) by redesignating paragraphs (35) through 
(39) as paragraphs (36), (37), (38), (40), and (41), 
respectively; 
(2) in subparagraph (A)(ii) of paragraph (36) 
(as redesignated in paragraph (1)), by striking 
‘‘paragraph (36)(C)’’ and inserting ‘‘paragraph 
(37)(C)’’; 
(3) by inserting after paragraph (34) the fol-
lowing: 
‘‘(35)(A) The term ‘student with a disability’ 
means an individual with a disability who—
204
‘‘(i) is not younger than 16 and not older 
than 21; 
‘‘(ii) has been determined to be eligible 
under section 102(a) for assistance under this 
title; and 
‘‘(iii)(I) is eligible for, and is receiving, 
special education under part B of the Individ-
uals with Disabilities Education Act (20 U.S.C. 
1411 et seq.); or 
‘‘(II) is an individual with a disability, for 
purposes of section 504. 
‘‘(B) The term ‘students with disabilities’ 
means more than 1 student with a disability.’’; and 
(4) by inserting after paragraph (38) the fol-
lowing: 
‘‘(39) The term ‘transition services expansion 
year’ means—
‘‘(A) the first fiscal year for which the 
amount appropriated under section 100(b) ex-
ceeds the amount appropriated under section 
100(b) for fiscal year 2004 by not less than 
$100,000,000; and 
‘‘(B) each fiscal year subsequent to that 
first fiscal year.’’.
205
SEC. 405. STATE PLAN. 
(a) COORDINATION WITH EDUCATION OFFICIALS.—
Section 101(a) of the Rehabilitation Act of 1973 (29 
U.S.C. 721(a)) is amended—
(1) in paragraph (11)(D)(i) by inserting ‘‘, 
which may be provided using alternative means of 
meeting participation (such as video conferences and 
conference calls)’’ before the semicolon. 
(b) 
ASSESSMENT
AND
STRATEGIES.—Section 
101(a)(15) of the Rehabilitation Act of 1973 (29 U.S.C. 
721(a)(15)) is amended—
(1) in subparagraph (A) 
(A) in clause (i)—
(i) in subclause (II), by striking 
‘‘and’’ at the end; 
(ii) in subclause (III), by adding 
‘‘and’’ at the end; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(IV) in a transition services ex-
pansion year, students with disabil-
ities, including their need for transi-
tion services;’’; and 
(B) by redesignating clauses (ii) and (iii) 
as clauses (iii) and (iv), respectively, and insert-
ing after clause (i) the following:
206
‘‘(ii) include an assessment of the transition services 
provided under this Act, and coordinated with transition 
services under the Individuals with Disabilities Education 
Act, as to those services meeting the needs of individuals 
with disabilities.’’; and 
(2) in subparagraph (D)—
(A) by redesignating clauses (iii), (iv), and 
(v) as clauses (iv), (v), and (vi), respectively; 
and 
(B) by inserting after clause (ii) the fol-
lowing: 
‘‘(iii) in a transition services expan-
sion year, the methods to be used to im-
prove and expand vocational rehabilitation 
services for students with disabilities, in-
cluding the coordination of services de-
signed to facilitate the transition of such 
students from the receipt of educational 
services in school to the receipt of voca-
tional rehabilitation services under this 
title or to postsecondary education or em-
ployment;’’. 
(c) SERVICES FOR STUDENTS WITH DISABILITIES.—
Section 101(a) of the Rehabilitation Act of 1973 (29
207
U.S.C. 721(a)) is amended by adding at the end the fol-
lowing: 
‘‘(25) SERVICES FOR STUDENTS WITH DISABIL-
ITIES.—The State plan for a transition services ex-
pansion year shall provide an assurance satisfactory 
to the Secretary that the State—
‘‘(A) has developed and implemented strat-
egies to address the needs identified in the as-
sessment described in paragraph (15), and 
achieve the goals and priorities identified by the 
State, to improve and expand vocational reha-
bilitation services for students with disabilities 
on a statewide basis in accordance with para-
graph (15); and 
‘‘(B) from funds reserved under section 
110A, shall carry out programs or activities de-
signed to improve and expand vocational reha-
bilitation services for students with disabilities 
that—
‘‘(i) facilitate the transition of the stu-
dents with disabilities from the receipt of 
educational services in school, to the re-
ceipt of vocational rehabilitation services 
under this title, including, at a minimum,
208
those services specified in the interagency 
agreement required in paragraph (11)(D); 
‘‘(ii) improve the achievement of post-
school goals of students with disabilities, 
including 
improving 
the 
achievement 
through participation (as appropriate when 
vocational goals are discussed) in meetings 
regarding individualized education pro-
grams developed under section 614 of the 
Individuals with Disabilities Education Act 
(20 U.S.C. 1414); 
‘‘(iii) provide vocational guidance, ca-
reer exploration services, and job search 
skills and strategies and technical assist-
ance to students with disabilities; 
‘‘(iv) support the provision of training 
and technical assistance to State and local 
educational agency and designated State 
agency personnel responsible for the plan-
ning and provision of services to students 
with disabilities; and 
‘‘(v) support outreach activities to stu-
dents with disabilities who are eligible for, 
and need, services under this title.’’.
209
SEC. 406. SCOPE OF SERVICES. 
Section 103 of the Rehabilitation Act of 1973 (29 
U.S.C. 723) is amended—
(1) in subsection (a), by striking paragraph 
(15) and inserting the following: 
‘‘(15) transition services for students with dis-
abilities, that facilitate the achievement of the em-
ployment outcome identified in the individualized 
plan for employment, including, in a transition serv-
ices expansion year, services described in clauses (i) 
through (iii) of section 101(a)(25)(B);’’; and 
(2) in subsection (b), by striking paragraph (6) 
and inserting the following: 
‘‘(6)(A)(i) Consultation and technical assistance 
services to assist State and local educational agen-
cies in planning for the transition of students with 
disabilities from school to post-school activities, in-
cluding employment. 
‘‘(ii) In a transition services expansion year, 
training and technical assistance described in section 
101(a)(25)(B)(iv). 
Consultation and technical assistance services to assist 
State and local educational agencies in planning for the 
transition of students with disabilities from school to post-
school activities, including employment.