‘‘(B) CRITERIA.—The criteria for certifi-
cation under this subsection shall include— 
‘‘(i) meeting all of the expected levels 
of performance for each of the core indica-
tors of performance as outlined in the 
State plan, according to section 112; 
‘‘(ii) meeting minimum standards re-
lating to the scope and degree of service 
integration achieved by the centers involv-
ing the programs provided by the one-stop 
partners; and 
‘‘(iii) meeting minimum standards re-
lating to how the centers ensure that pro-
viders meet the employment needs of local 
employers and participants. 
‘‘(C) EFFECT
OF
CERTIFICATION.—One- 
stop centers certified under this subsection shall 
be eligible to receive the infrastructure grants 
authorized under subsection (h). 
‘‘(2) LOCAL BOARDS.—Consistent with the cri-
teria developed by the State, the local board may de-
velop additional criteria of higher standards to re-
spond to local labor market and demographic condi-
tions and trends. 
‘‘(h) ONE-STOP INFRASTRUCTURE FUNDING.— 
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‘‘(1) PARTNER CONTRIBUTIONS.— 
‘‘(A) PROVISION
OF
FUNDS.—Notwith-
standing any other provision of law, as deter-
mined under subparagraph (B), a portion of the 
Federal funds provided to the State and areas 
within the State under the Federal laws author-
izing the one-stop partner programs described 
in subsection (b)(1)(B) and participating addi-
tional partner programs described in (b)(2)(B) 
for a fiscal year shall be provided to the Gov-
ernor by such programs to carry out this sub-
section. 
‘‘(B) DETERMINATION OF GOVERNOR.— 
‘‘(i) IN
GENERAL.—Subject to sub-
paragraph (C), the Governor, in consulta-
tion with the State board, shall determine 
the portion of funds to be provided under 
subparagraph (A) by each one-stop partner 
and in making such determination shall 
consider the proportionate use of the one- 
stop centers by each partner, the costs of 
administration for purposes not related to 
one-stop centers for each partner, and 
other relevant factors described in para-
graph (3). 
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‘‘(ii) SPECIAL RULE.—In those States 
where the State constitution places policy- 
making authority that is independent of 
the authority of the Governor in an entity 
or official with respect to the funds pro-
vided for adult education and literacy ac-
tivities authorized under title II of this Act 
and for post-secondary career education 
activities authorized under the Carl D. 
Perkins Career and Technical Education 
Act, the determination described in clause 
(i) with respect to such programs shall be 
made by the Governor with the appropriate 
entity or official with such independent 
policy-making authority. 
‘‘(iii) APPEAL
BY
ONE-STOP
PART-
NERS.—The Governor shall establish a 
procedure for the one-stop partner admin-
istering a program described in subsection 
(b) to appeal a determination regarding 
the portion of funds to be contributed 
under this paragraph on the basis that 
such determination is inconsistent with the 
criteria described in the State plan or with 
the requirements of this paragraph. Such 
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procedure shall ensure prompt resolution 
of the appeal. 
‘‘(C) LIMITATIONS.— 
‘‘(i) PROVISION
FROM
ADMINISTRA-
TIVE FUNDS.—The funds provided under 
this paragraph by each one-stop partner 
shall be provided only from funds available 
for the costs of administration under the 
program administered by such partner, 
and shall be subject to the limitations with 
respect to the portion of funds under such 
programs that may be used for administra-
tion. 
‘‘(ii) FEDERAL
DIRECT
SPENDING 
PROGRAMS.—Programs that are Federal 
direct spending under section 250(c)(8) of 
the Balanced Budget and Emergency Def-
icit Control Act of 1985 (2 U.S.C. 
900(c)(8)) shall not, for purposes of this 
paragraph, be required to provide an 
amount in excess of the amount deter-
mined to be equivalent to the proportionate 
use of the one-stop centers by such pro-
grams in the State. 
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‘‘(iii) 
NATIVE
AMERICAN
PRO-
GRAMS.—Native American programs estab-
lished under section 166 shall not be sub-
ject to the provisions of this subsection. 
The method for determining the appro-
priate portion of funds to be provided by 
such Native American programs to pay for 
the costs of infrastructure of a one-stop 
center certified under subsection (g) shall 
be determined as part of the development 
of the memorandum of understanding 
under subsection (c) for the one-stop cen-
ter and shall be stated in the memo-
randum. 
‘‘(2) ALLOCATION
BY
GOVERNOR.—From the 
funds provided under paragraph (1), the Governor 
shall allocate funds to local areas in accordance with 
the formula established under paragraph (3) for the 
purposes of assisting in paying the costs of the in-
frastructure of one-stop centers certified under sub-
section (g). 
‘‘(3) ALLOCATION FORMULA.—The State board 
shall develop a formula to be used by the Governor 
to allocate the funds described in paragraph (1). 
The formula shall include such factors as the State 
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board determines are appropriate, which may in-
clude 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. 
‘‘(4) COSTS
OF
INFRASTRUCTURE.—For pur-
poses of this subsection, the term ‘costs of infra-
structure’ means the nonpersonnel costs that are 
necessary for the general operation of a one-stop 
center, including the rental costs of the facilities, the 
costs of utilities and maintenance, and equipment 
(including adaptive technology for individuals with 
disabilities). 
‘‘(i) OTHER FUNDS.— 
‘‘(1) IN GENERAL.—In addition to the funds 
provided to carry out subsection (h), a portion of 
funds made available under Federal law authorizing 
the one-stop partner programs described in sub-
section (b)(1)(B) and participating partner pro-
grams described in subsection (b)(2)(B), or the 
noncash resources available under such programs 
shall be used to pay the costs relating to the oper-
ation of the one-stop delivery system that are not 
paid for from the funds provided under subsection 
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(h), to the extent not inconsistent with the Federal 
law involved including— 
‘‘(A) infrastructure costs that are in excess 
of the funds provided under subsection (h); 
‘‘(B) common costs that are in addition to 
the costs of infrastructure; and 
‘‘(C) the costs of the provision of work 
ready services applicable to each program. 
‘‘(2) DETERMINATION
AND
GUIDANCE.—The 
method for determining the appropriate portion of 
funds and noncash resources to be provided by each 
program under paragraph (1) shall be determined as 
part of the memorandum of understanding under 
subsection (c). The State board shall provide guid-
ance to facilitate the determination of appropriate 
allocation of the funds and noncash resources in 
local areas.’’. 
SEC. 109. ELIGIBLE PROVIDERS OF TRAINING SERVICES. 
Section 122 (29 U.S.C. 2842) is amended to read as 
follows: 
‘‘SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF 
TRAINING SERVICES. 
‘‘(a) ELIGIBILITY.— 
‘‘(1) IN GENERAL.—The Governor, after con-
sultation with the State board, shall establish cri-
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teria and procedures regarding the eligibility of pro-
viders of training services described in section 
134(c)(4) to receive funds provided under section 
133(b) for the provision of such training services. 
‘‘(2) PROVIDERS.—Subject to the provisions of 
this section, to be eligible to receive the funds pro-
vided under section 133(b) for the provision of train-
ing services, the provider shall be— 
‘‘(A) a post-secondary educational institu-
tion that— 
‘‘(i) is eligible to receive Federal funds 
under title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1070 et seq.); and 
‘‘(ii) provides a program that leads to 
an associate degree, baccalaureate degree, 
or industry-recognized certification; 
‘‘(B) an entity that carries out programs 
under the Act of August 16, 1937 (commonly 
known as the ‘National Apprenticeship Act’; 50 
Stat. 664, chapter 663; 29 U.S.C. 50 et seq.); 
or 
‘‘(C) another public or private provider of 
a program of training services. 
‘‘(3) INCLUSION
IN
LIST
OF
ELIGIBLE
PRO-
VIDERS.—A provider described in subparagraph (A) 
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or (C) of paragraph (2) shall comply with the cri-
teria and procedures established under this section 
to be included on the list of eligible providers of 
training services described in subsection (d)(1). A 
provider described in paragraph (2)(B) shall be in-
cluded on the list of eligible providers of training 
services described in subsection (d)(1) for so long as 
the provider remains certified by the Department of 
Labor to carry out the programs described in para-
graph (2)(B). 
‘‘(b) CRITERIA.— 
‘‘(1) IN
GENERAL.—The criteria established 
pursuant to subsection (a) shall take into account— 
‘‘(A) the performance of providers of train-
ing services with respect to the performance 
measures described in section 136 and other 
matters for which information is required under 
paragraph (2) and other appropriate measures 
of performance outcomes for those participants 
receiving training services under this subtitle 
(taking into consideration the characteristics of 
the population served and relevant economic 
conditions); 
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‘‘(B) whether the training programs of 
such providers relate to occupations that are in 
demand; 
‘‘(C) the need to ensure access to training 
services throughout the State, including any 
rural areas; 
‘‘(D) the ability of providers to offer pro-
grams that lead to a degree or an industry-rec-
ognized certification, certificate, or mastery; 
‘‘(E) the information such providers are 
required to report to State agencies with re-
spect to other Federal and State programs 
(other than the program carried out under this 
subtitle), including one-stop partner programs; 
and 
‘‘(F) such other factors as the Governor 
determines are appropriate to ensure the qual-
ity of services provided, the accountability of 
providers, that the one-stop centers will ensure 
that such providers meet the needs of local em-
ployers and participants, and the informed 
choice of participants under chapter 5. 
‘‘(2) INFORMATION.—The criteria established 
by the Governor shall require that a provider of 
training services submit appropriate, accurate, and 
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timely information to the State for purposes of car-
rying out subsection (d), with respect to participants 
receiving training services under this subtitle in the 
applicable program, including— 
‘‘(A) information on degrees and industry- 
recognized certifications received by such par-
ticipants; 
‘‘(B) information on costs of attendance 
for such participants; 
‘‘(C) information on the program comple-
tion rate for such participants; and 
‘‘(D) information on the performance of 
the provider with respect to the performance 
measures described in section 136 for such par-
ticipants (taking into consideration the charac-
teristics of the population served and relevant 
economic conditions), which may include infor-
mation specifying the percentage of such par-
ticipants who entered unsubsidized employment 
in an occupation related to the program. 
‘‘(3) RENEWAL.—The criteria established by 
the Governor shall also provide for biennial review 
and renewal of eligibility under this section for pro-
viders of training services. 
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‘‘(4) LOCAL CRITERIA.—A local board in the 
State may establish criteria in addition to the cri-
teria established by the Governor, or may require 
higher levels of performance than required under the 
criteria established by the Governor, for purposes of 
determining the eligibility of providers of training 
services to receive funds described in subsection (a) 
to provide the services in the local area involved. 
‘‘(5) LIMITATION.—In carrying out the require-
ments of this subsection, no personally identifiable 
information regarding a student, including Social 
Security number, student identification number, or 
other identifier, may be disclosed without the prior 
written consent of the parent or eligible student in 
compliance with section 444 of the General Edu-
cation Provisions Act (20 U.S.C. 1232g). 
‘‘(c) PROCEDURES.—The procedures established 
under subsection (a) shall identify the application process 
for a provider of training services to become eligible to 
receive funds under section 133(b) for the provision of 
training services, and identify the respective roles of the 
State and local areas in receiving and reviewing applica-
tions and in making determinations of eligibility based on 
the criteria established under this section. The procedures 
shall also establish a process for a provider of training 
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services to appeal a denial or termination of eligibility 
under this section that includes an opportunity for a hear-
ing and prescribes appropriate time limits to ensure 
prompt resolution of the appeal. 
‘‘(d) INFORMATION TO ASSIST PARTICIPANTS
IN 
CHOOSING PROVIDERS.—In order to facilitate and assist 
participants under chapter 5 in choosing providers of 
training services, the Governor shall ensure that an appro-
priate list or lists of providers determined eligible under 
this section in the State, including information regarding 
the occupations in demand that relate to the training pro-
grams of such providers, is provided to the local boards 
in the State to be made available to such participants and 
to members of the public through the one-stop delivery 
system in the State. The accompanying information shall 
consist of information provided by providers described in 
subparagraphs (A) and (C) of subsection (a)(2) in accord-
ance with subsection (b) (including information on receipt 
of degrees and industry-recognized certifications, and 
costs of attendance, for participants receiving training 
services under this subtitle in applicable programs) and 
such other information as the Secretary determines is ap-
propriate. The list and the accompanying information 
shall be made available to such participants and to mem-
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bers of the public through the one-stop delivery system 
in the State. 
‘‘(e) ENFORCEMENT.— 
‘‘(1) IN
GENERAL.—The criteria and proce-
dures established under this section shall provide the 
following: 
‘‘(A) INTENTIONALLY
SUPPLYING
INAC-
CURATE INFORMATION.—Upon a determination, 
by an individual or entity specified in the cri-
teria or procedures, that a provider of training 
services, or individual providing information on 
behalf of the provider, intentionally supplied in-
accurate information under this section, the eli-
gibility of such provider to receive funds under 
chapter 5 shall be terminated for a period of 
time that is not less than 2 years. 
‘‘(B) SUBSTANTIAL VIOLATIONS.—Upon a 
determination, by an individual or entity speci-
fied in the criteria or procedures, that a pro-
vider of training services substantially violated 
any requirement under this title, the eligibility 
of such provider to receive funds under the pro-
gram involved may be terminated, or other ap-
propriate action may be taken. 
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‘‘(C) REPAYMENT.—A provider of training 
services whose eligibility is terminated under 
subparagraph (A) or (B) shall be liable for the 
repayment of funds received under chapter 5 
during a period of noncompliance described in 
such subparagraph. 
‘‘(2) CONSTRUCTION.—Paragraph (1) shall be 
construed to provide remedies and penalties that 
supplement, but do not supplant, other civil and 
criminal remedies and penalties. 
‘‘(f) AGREEMENTS WITH OTHER STATES.—States 
may enter into agreements, on a reciprocal basis, to per-
mit eligible providers of training services to accept career 
enhancement accounts provided in another State. 
‘‘(g) RECOMMENDATIONS.—In developing the cri-
teria, procedures, and information required under this sec-
tion, the Governor shall solicit and take into consideration 
the recommendations of local boards and providers of 
training services within the State. 
‘‘(h) OPPORTUNITY TO SUBMIT COMMENTS.—Dur-
ing the development of the criteria, procedures, require-
ments for information, and the list of eligible providers 
required under this section, the Governor shall provide an 
opportunity for interested members of the public, includ-
ing representatives of business and labor organizations, to 
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submit comments regarding such criteria, procedures, and 
information. 
‘‘(i) ON-THE-JOB TRAINING OR CUSTOMIZED TRAIN-
ING EXCEPTION.— 
‘‘(1) IN
GENERAL.—Providers of on-the-job 
training or customized training shall not be subject 
to the requirements of subsections (a) through (d). 
‘‘(2) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—A one-stop operator in a local area 
shall collect such performance information from on- 
the-job training and customized training providers 
as the Governor may require, determine whether the 
providers meet such performance criteria as the Gov-
ernor may require, and disseminate information 
identifying providers that meet the criteria as eligi-
ble providers, and the performance information, 
through the one-stop delivery system. Providers de-
termined to meet the criteria shall be considered to 
be identified as eligible providers of training serv-
ices.’’. 
SEC. 110. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 
(a) ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.— 
Section 123 (29 U.S.C. 2843) is amended to read as fol-
lows: 
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‘‘SEC. 123. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 
‘‘(a) IN GENERAL.—From the funds allocated under 
section 128(b) to a local area, the local board for such 
area shall award grants or contracts on a competitive basis 
to providers of youth activities identified based on the cri-
teria in the State plan and shall conduct oversight with 
respect to such providers. 
‘‘(b) EXCEPTIONS.—A local board may award grants 
or contracts on a sole-source basis if such board deter-
mines there are an insufficient number of eligible pro-
viders of training services in the local area involved (such 
as rural areas) for grants to be awarded on a competitive 
basis under subsection (a).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) is amended by amending the item related 
to section 123 to read as follows: 
‘‘Sec. 123. Eligible providers of youth activities.’’. 
SEC. 111. YOUTH ACTIVITIES. 
(a) STATE ALLOTMENTS.—Section 127 (29 U.S.C. 
2852(a)) is amended— 
(1) in subsection (a)(1), by striking ‘‘oppor-
tunity’’ and inserting ‘‘challenge’’; and 
(2) by striking subsection (b) and inserting the 
following: 
‘‘(b) ALLOTMENT AMONG STATES.— 
‘‘(1) YOUTH ACTIVITIES.— 
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‘‘(A) YOUTH CHALLENGE GRANTS.— 
‘‘(i) RESERVATION
OF
FUNDS.—Of 
the amount appropriated under section 
137(a) for each fiscal year, the Secretary 
shall reserve 25 percent to provide youth 
challenge grants under section 169. 
‘‘(ii) 
LIMITATION.—Notwithstanding 
clause (i), if the amount appropriated 
under section 137(a) for a fiscal year ex-
ceeds $1,000,000,000, the Secretary shall 
reserve $250,000,000 to provide youth 
challenge grants under section 169. 
‘‘(B) OUTLYING AREAS AND NATIVE AMER-
ICANS.— 
‘‘(i) IN GENERAL.—After determining 
the amount to be reserved under subpara-
graph (A), of the remainder of the amount 
appropriated under section 137(a) for each 
fiscal year the Secretary shall— 
‘‘(I) reserve not more than 1⁄4 of 
one percent of such amount to provide 
assistance to the outlying areas to 
carry out youth activities and state-
wide workforce investment activities; 
and 
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‘‘(II) reserve not more than 1 
and 1⁄2 percent of such amount to 
provide youth activities under section 
166 (relating to Native Americans). 
‘‘(ii) RESTRICTION.—The Republic of 
Palau shall cease to be eligible to receive 
funding under this subparagraph upon en-
tering into an agreement for extension of 
United States educational 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 2011. 
‘‘(C) STATES.— 
‘‘(i) IN GENERAL.—Of the remainder 
of the amount appropriated under section 
137(a) for a fiscal year that is available 
after determining the amounts to be re-
served under subparagraphs (A) and (B), 
the Secretary shall allot— 
‘‘(I) the amount of the remainder 
that is less than or equal to the total 
amount that was allotted to States for 
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fiscal 
year 
2012 
under 
section 
127(b)(1)(C) of this Act (as in effect 
on the day before the date of enact-
ment of the Workforce Investment 
Improvement Act of 2011) in accord-
ance with the requirements of such 
section 127(b)(1)(C); and 
‘‘(II) the amount of the remain-
der, if any, in excess of the amount 
referred to in subclause (I) in accord-
ance with clause (ii). 
‘‘(ii) 
FORMULAS
FOR
EXCESS 
FUNDS.—Subject to clauses (iii) and (iv), 
of 
the 
amounts 
described 
in 
clause 
(i)(II)— 
‘‘(I) 331⁄3 percent shall be allot-
ted on the basis of the relative num-
ber of individuals in the civilian labor 
force who are ages 16 through 19 in 
each State, compared to the total 
number of individuals in the civilian 
labor force who are ages 16 through 
19 in all States; 
‘‘(II) 331⁄3 percent shall be allot-
ted on the basis of the relative num-
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ber of unemployed individuals in each 
State, compared to the total number 
of unemployed individuals in all 
States; and 
‘‘(III) 331⁄3 percent shall be allot-
ted on the basis of the relative num-
ber of disadvantaged youth who are 
ages 16 through 21 in each State, 
compared to the total number of dis-
advantaged youth who are ages 16 
through 21 in all States. 
‘‘(iii) MINIMUM AND MAXIMUM PER-
CENTAGES.—The Secretary shall ensure 
that no State shall receive an allotment for 
a fiscal year that is less than 90 percent 
or greater than 130 percent of the allot-
ment percentage of that State for the pre-
ceding fiscal year. 
‘‘(iv) SMALL STATE MINIMUM ALLOT-
MENT.—Subject to clause (iii), the Sec-
retary shall ensure that no State shall re-
ceive an allotment under this paragraph 
that is less than 3⁄10 of 1 percent of the 
amount available under subparagraph (A). 
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‘‘(2) DEFINITIONS.—For the purposes of para-
graph (1), the following definitions apply: 
‘‘(A) 
ALLOTMENT
PERCENTAGE.—The 
term ‘allotment percentage’, used with respect 
to fiscal year 2013 or a subsequent fiscal year, 
means a percentage of the remainder described 
in paragraph (1)(C)(i) that is received through 
an allotment made under this subsection for the 
fiscal year. The term, with respect to fiscal year 
2012, means the percentage of the amounts al-
lotted to States under this chapter (as in effect 
on the day before the date of enactment of the 
Workforce Investment Improvement Act of 
2011) that is received by the State involved for 
fiscal year 2012. 
‘‘(B) DISADVANTAGED YOUTH.—The term 
‘disadvantaged youth’ means an individual who 
is age 16 through 21 who received an income, 
or is a member of a family that received a total 
family income, that, in relation to family size, 
does not exceed the poverty line. 
‘‘(3) SPECIAL RULE.—For purposes of the for-
mulas specified in paragraph (1)(C), the Secretary 
shall, as appropriate and to the extent practicable, 
exclude college students and members of the Armed 
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Forces from the determination of the number of dis-
advantaged youth.’’; 
(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-
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)— 
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(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 which 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 
(D) in paragraph (5), by striking ‘‘obliga-
tion’’ and inserting ‘‘accrued expenditure’’. 
(b) WITHIN STATE ALLOCATIONS.— 
(1) RESERVATION
FOR
STATEWIDE
ACTIVI-
TIES.—Section 128(a) is amended to read as follows: 
‘‘(a) RESERVATION FOR STATEWIDE ACTIVITIES.— 
‘‘(1) IN GENERAL.—The Governor of a State 
shall reserve not more than 10 percent of the 
amount 
allotted 
to 
the 
State 
under 
section 
127(a)(1)(C) for a fiscal year for statewide activi-
ties. 
‘‘(2) USE OF FUNDS.—Regardless of whether 
the amounts are allotted under section 127(a)(1)(C) 
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and reserved under paragraph (1) or allotted under 
section 132 and reserved under section 133(a), the 
Governor may use the reserved amounts to carry out 
statewide youth activities under section 129(b) or 
statewide employment and training activities under 
section 133.’’. 
(2) WITHIN
STATE
ALLOCATIONS.—Section 
128(b) is amended to read as follows: 
‘‘(b) WITHIN STATE ALLOCATION.— 
‘‘(1) IN GENERAL.—Of the amounts allotted to 
the State under section 127(a)(1)(C) and not re-
served under subsection (a)(1)— 
‘‘(A) not less than 80 percent of such 
amounts shall be allocated by the Governor to 
local areas in accordance with paragraph (2); 
and 
‘‘(B) not more than 20 percent of such 
amounts shall be allocated by the Governor to 
local areas in accordance with paragraph (3). 
‘‘(2) ESTABLISHED FORMULA.— 
‘‘(A) IN GENERAL.—Of the amounts de-
scribed in paragraph (1)(A), the Governor shall 
allocate— 
‘‘(i) 331⁄3 percent shall be allotted on 
the basis of the relative number of individ-
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‘‘(i) ALLOCATION PERCENTAGE.—For 
purposes of this paragraph, the term ‘allo-
cation percentage’, used with respect to fis-
cal year 2013 or a subsequent fiscal year, 
means a percentage of the amount de-
scribed in paragraph (1)(A) that is re-
ceived through an allocation made under 
this paragraph for the fiscal year. The 
term, with respect to fiscal year 2012, 
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 2011) that is received by 
the local area involved for fiscal year 2012. 
‘‘(ii) DISADVANTAGED
YOUTH.—The 
term ‘disadvantaged youth’ means an indi-
vidual who is age 16 through 21 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. 
‘‘(3) YOUTH
DISCRETIONARY
ALLOCATION.— 
The Governor shall allocate to local areas the 
amounts described in paragraph (1)(B) in accord-
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ance with such demographic 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 for 
a fiscal year, not more than 10 percent of the 
amount may be used by the local boards for the 
administrative costs of carrying out local work-
force investment activities under this chapter or 
chapter 5. 
‘‘(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 
activities described in this chapter or chapter 5, 
regardless of whether the funds were allocated 
under this subsection or section 133(b).’’. 
(3) 
REALLOCATION.—Section 
128(c) 
(29 
U.S.C. 2853(c)) is amended— 
(A) in paragraph (1), by striking ‘‘para-
graph (2)(A) or (3) of’’; 
(B) by amending paragraph (2) to read as 
follows: 
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‘‘(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 
‘‘(B) the accrued expenditures during such 
prior program year.’’; 
(C) in paragraph (3)— 
(i) by striking ‘‘subsection (b)(3)’’ the 
first two places it appears and inserting 
‘‘subsection (b)’’; 
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srobinson on DSK4SPTVN1PROD with BILLS
(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.’’. 
(c) YOUTH
PARTICIPANT
ELIGIBILITY.—Section 
129(a) (29 U.S.C. 2854(a)) is amended to read as follows: 
‘‘(a) YOUTH PARTICIPANT ELIGIBILITY.— 
‘‘(1) IN
GENERAL.—The individuals partici-
pating in activities carried out under this chapter by 
a local area during any program year shall be indi-
viduals who, at the time the eligibility determination 
is made, are— 
‘‘(A) not younger than age 16 or older 
than age 24; and 
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‘‘(B) one or more of the following: 
‘‘(i) school dropouts; 
‘‘(ii) recipients of a secondary school 
diploma, General Educational Development 
credential (GED), or other State-recog-
nized equivalent (including recognized al-
ternative standards for individuals with 
disabilities) who are deficient in basic skills 
and not attending any school; 
‘‘(iii) court-involved youth attending 
an alternative school; 
‘‘(iv) youth in foster care or who have 
been in foster care; or 
‘‘(v) in school youth who are low-in-
come individuals and one or more of the 
following: 
‘‘(I) Deficient in literacy skills. 
‘‘(II) Homeless, runaway, or fos-
ter children. 
‘‘(III) Pregnant or parents. 
‘‘(IV) Offenders. 
‘‘(V) Individuals who require ad-
ditional assistance to complete an edu-
cational program, or to secure and 
hold employment. 
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‘‘(2) PRIORITY
FOR
SCHOOL
DROPOUTS.—A 
priority in the provision of services under this chap-
ter shall be given to individuals who are school drop-
outs. 
‘‘(3) CONSISTENCY WITH COMPULSORY SCHOOL 
ATTENDANCE LAWS.—In providing assistance under 
this section to an individual who is required to at-
tend school under applicable State compulsory school 
attendance laws, the priority in providing such as-
sistance shall be for the individual to attend school 
regularly.’’. 
(d) STATEWIDE YOUTH ACTIVITIES.—Section 129(b) 
(29 U.S.C. 2854(b)) is amended to read as follows: 
‘‘(b) STATEWIDE ACTIVITIES.— 
‘‘(1) IN GENERAL.—Funds reserved by a Gov-
ernor for a State as described in sections 128(a) and 
133(a)(1) may be used for statewide activities in-
cluding— 
‘‘(A) additional assistance to local areas 
that have high concentrations of eligible youth, 
including out-of-school youth; 
‘‘(B) supporting the provision of work 
ready services described in section 134(c)(2) in 
the one-stop delivery system; 
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