duct, to prepare individuals for unsubsidized 
employment or training; 
‘‘(R) internships and work experience; 
‘‘(S) literacy activities relating to basic 
work readiness, information and communication 
technology literacy activities, and financial lit-
eracy activities, if such activities are not avail-
able to participants in the local area under pro-
grams administered under the Adult Education 
and Family Literacy Act (20 U.S.C. 2901 et 
seq.); and 
‘‘(T) out-of-area job search assistance and 
relocation assistance.’’; and 
(C) by amending paragraph (3) to read as 
follows: 
‘‘(3) DELIVERY OF SERVICES.—The work ready 
services described in section 132(c)(2) shall be pro-
vided through the one-stop delivery system and may 
be provided through contracts with public, private 
for-profit, and private nonprofit service providers, 
approved by the local board.’’; 
(D) in paragraph (4)— 
(i) by amending subparagraph (A) to 
read as follows: 
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‘‘(A) IN GENERAL.—Funds allocated to a 
local area under section 133(b) shall be used to 
provide training services to individuals who— 
‘‘(i) after an interview, evaluation, or 
assessment, and case management, have 
been determined by a one-stop operator or 
one-stop partner, as appropriate, to— 
‘‘(I) be in need of training serv-
ices to obtain or retain employment; 
and 
‘‘(II) have the skills and quali-
fications to successfully participate in 
the selected program of training serv-
ices; 
‘‘(ii) select programs of training serv-
ices that are directly linked to the employ-
ment opportunities in the local area in-
volved or in another area in which the indi-
vidual receiving such services are willing to 
commute or relocate; and 
‘‘(iii) who meet the requirements of 
subparagraph (B);’’; and 
(ii) in subparagraph (B)(i), by strik-
ing ‘‘Except’’ and inserting ‘‘Notwith-
standing section 479B of the Higher Edu-
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100 
cation Act of 1965 (20 U.S.C. 1087uu) 
and except’’; 
(iii) by amending subparagraph (D) to 
read as follows: 
‘‘(D) TRAINING SERVICES.—Training serv-
ices authorized under this paragraph may in-
clude— 
‘‘(i) occupational skills training; 
‘‘(ii) on-the-job training; 
‘‘(iii) skill upgrading and retraining; 
‘‘(iv) entrepreneurial training; 
‘‘(v) education activities leading to a 
regular secondary school diploma or its 
recognized equivalent in combination with, 
concurrently or subsequently, occupational 
skills training; 
‘‘(vi) adult education and literacy ac-
tivities provided in conjunction with other 
training authorized under this subpara-
graph; 
‘‘(vii) workplace training combined 
with related instruction; and 
‘‘(viii) occupational skills training that 
incorporates English language acquisi-
tion.’’; 
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(iv) by striking subparagraph (E) and 
redesignating subparagraphs (F) and (G) 
as subparagraphs (E) and (F), respec-
tively; and 
(v) in subparagraph (E) (as so redes-
ignated)— 
(I) in clause (ii)— 
(aa) in the matter preceding 
clause (I), by striking ‘‘sub-
section (c)’’ and inserting ‘‘sec-
tion 121’’; and 
(bb) in clause (II), by strik-
ing ‘‘subsections (e) and (h)’’ and 
inserting ‘‘subsection (i)’’; and 
(II) by striking clause (iii) and 
inserting the following: 
‘‘(iii) CAREER
ENHANCEMENT
AC-
COUNTS.—An individual who seeks train-
ing services and who is eligible pursuant to 
subparagraph (A), may, in consultation 
with a case manager, select an eligible pro-
vider of training services from the list or 
identifying information for providers de-
scribed in clause (ii)(I). Upon such selec-
tion, the one-stop operator involved shall, 
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102 
to the extent practicable, refer such indi-
vidual to the eligible provider of training 
services, and arrange for payment for such 
services through a career enhancement ac-
count. 
‘‘(iv) 
COORDINATION.—Each 
local 
board may, through one-stop centers, co-
ordinate career enhancement accounts with 
other Federal, State, local, or private job 
training programs or sources to assist the 
individual in obtaining training services. 
‘‘(v) ENHANCED
CAREER
ENHANCE-
MENT ACCOUNTS.—Each local board may, 
through one-stop centers, assist individuals 
receiving career enhancement accounts 
through the establishment of such accounts 
that include, in addition to the funds pro-
vided under this paragraph, funds from 
other programs and sources that will assist 
the individual in obtaining training serv-
ices.’’; and 
(vi) in subparagraph (G)— 
(I) in the subparagraph heading, 
by striking ‘‘INDIVIDUAL
TRAINING 
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103 
ACCOUNTS’’ and inserting ‘‘CAREER 
ENHANCEMENT ACCOUNTS’’; 
(II) in clause (i) by striking ‘‘in-
dividual training accounts’’ and in-
serting 
‘‘career 
enhancement 
ac-
counts’’; 
(III) in clause (ii)— 
(aa) by striking ‘‘an indi-
vidual training account’’ and in-
serting ‘‘a career enhancement 
account’’; 
(bb) in subclause (II), by 
striking ‘‘individual training ac-
counts’’ and inserting ‘‘career en-
hancement accounts’’; 
(cc) in subclause (II) by 
striking ‘‘or’’ after the semicolon; 
(dd) in subclause (III) by 
striking the period and inserting 
‘‘; or’’; and 
(ee) by adding at the end of 
the following: 
‘‘(IV) the local board determines 
that it would be most appropriate to 
award a contract to an institution of 
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higher education in order to facilitate 
the training of multiple individuals in 
in-demand sectors or occupations, if 
such contract does not limit customer 
choice.’’; 
(IV) in clause (iii), by striking 
‘‘adult or dislocated worker’’ and in-
serting ‘‘individual’’; and 
(V) in clause (iv)— 
(aa) by redesignating sub-
clause (IV) as subclause (V) and 
inserting after subclause (III) the 
following: 
‘‘(IV) Individuals with disabil-
ities.’’; 
(6) in subsection (d) (as so redesignated)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) DISCRETIONARY ONE-STOP DELIVERY AC-
TIVITIES.— 
‘‘(A) IN GENERAL.—Funds allocated to a 
local area under section 133(b) may be used to 
provide, through the one-stop delivery system— 
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‘‘(i) customized screening and referral 
of qualified participants in training serv-
ices to employers; 
‘‘(ii) customized employment-related 
services to employers on a fee-for-service 
basis; 
‘‘(iii) customer support to navigate 
among multiple services and activities for 
special participant populations that face 
multiple barriers to employment, including 
individuals with disabilities; 
‘‘(iv) employment and training assist-
ance provided in coordination with child 
support enforcement activities of the State 
agency carrying out subtitle D of title IV 
of the Social Security Act (42 U.S.C. 651 
et seq.); 
‘‘(v) activities to facilitate remote ac-
cess to services provided through a one- 
stop delivery system, including facilitating 
access through the use of technology; and 
‘‘(vi) activities to carry out business 
services and strategies that meet the work-
force investment needs of local area busi-
nesses, as determined by the local board, 
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consistent with the local plan under section 
118, which services— 
‘‘(I) may be provided through ef-
fective business intermediaries work-
ing in conjunction with the local 
board, and may also be provided on a 
fee-for-service basis or through the 
leveraging of economic development 
and other resources as determined ap-
propriate by the local board; and 
‘‘(II) may include— 
‘‘(aa) identifying and dis-
seminating 
to 
business, 
edu-
cators, and job seekers, informa-
tion related to the workforce, eco-
nomic and community develop-
ment needs, and opportunities of 
the local economy; 
‘‘(bb) development and deliv-
ery of innovative workforce in-
vestment services and strategies 
for area businesses, which may 
include sectoral, industry cluster, 
regional skills alliances, career 
ladder, skills upgrading, skill 
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107 
standard development and certifi-
cation, apprenticeship, and other 
effective initiatives for meeting 
the workforce investment needs 
of area employers and workers; 
‘‘(cc) participation in semi-
nars and classes offered in part-
nership with relevant organiza-
tions focusing on the workforce- 
related needs of area employers 
and job seekers; 
‘‘(dd) training consulting, 
needs analysis, and brokering 
services for area businesses, in-
cluding the organization and ag-
gregation of training (which may 
be paid for with funds other than 
those provided under this title), 
for individual employers and coa-
litions of employers with similar 
interests, products, or workforce 
needs; 
‘‘(ee) assistance to area em-
ployers in the aversion of layoffs 
and in managing reductions in 
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108 
workforce in coordination with 
rapid response activities; 
‘‘(ff) the marketing of busi-
ness services offered under this 
title, to appropriate area employ-
ers, including small and mid- 
sized employers; 
‘‘(gg) information referral 
on concerns affecting local em-
ployers; and 
‘‘(hh) other business services 
and strategies designed to better 
engage employers in workforce 
investment activities and to make 
the workforce investment system 
more relevant to the workforce 
investment needs of area busi-
nesses, as determined by the local 
board to be consistent with the 
objectives of this title.’’. 
(B) by striking paragraphs (2) and (3); 
and 
(C) by adding at the end the following: 
‘‘(2) INCUMBENT
WORKER
TRAINING
PRO-
GRAMS.— 
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‘‘(A) IN GENERAL.—The local board may 
use funds allocated to a local area under section 
133(b)(2) to carry out incumbent worker train-
ing programs in accordance with this para-
graph. 
‘‘(B) TRAINING ACTIVITIES.—The training 
programs for incumbent workers under this 
paragraph shall be carried out by the local area 
in conjunction with the employers of such work-
ers for the purpose of assisting such workers in 
obtaining the skills necessary to retain employ-
ment and avert layoffs. 
‘‘(C) EMPLOYER MATCH REQUIRED.— 
‘‘(i) IN GENERAL.—Employers partici-
pating in programs under this paragraph 
shall be required to pay a proportion of the 
costs of providing the training to the in-
cumbent workers of the employers. The 
State board, in consultation with the local 
board as appropriate, shall establish the 
required portion of such costs, which may 
include in-kind contributions. The required 
portion shall not be less than 50 percent of 
the costs. 
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110 
‘‘(ii) CALCULATION OF MATCH.—The 
wages paid by an employer to a worker 
while they are attending training may be 
included as part of the required payment 
of the employer.’’; and 
(7) by adding at the end the following: 
‘‘(e) PRIORITY FOR PLACEMENT IN PRIVATE SECTOR 
JOBS.—In providing employment and training activities 
authorized under this section, the State and local board 
shall give priority to placing participants in jobs in the 
private sector.’’. 
SEC. 114. PERFORMANCE ACCOUNTABILITY SYSTEM. 
Section 136 (29 U.S.C. 2871) is amended— 
(1) in subsection (b)— 
(A) by amending paragraphs (1) and (2) 
to read as follows: 
‘‘(1) IN GENERAL.—For each State, the State 
performance measures shall consist of— 
‘‘(A)(i) the core indicators of performance 
described in paragraph (2)(A); and 
‘‘(ii) additional indicators of performance 
(if any) identified by the State under paragraph 
(2)(B); and 
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‘‘(B) a State adjusted level of performance 
for each indicator described in subparagraph 
(A). 
‘‘(2) INDICATORS OF PERFORMANCE.— 
‘‘(A) CORE
INDICATORS
OF
PERFORM-
ANCE.— 
‘‘(i) IN GENERAL.—The core indica-
tors of performance for the program of em-
ployment and training activities authorized 
under section 134, the program of adult 
education and literacy activities authorized 
under title II, and the program authorized 
under title I of the Rehabilitation Act of 
1973 (29 U.S.C. 720 et seq.), other than 
section 112 or part C of that title (29 
U.S.C. 732, 741), shall consist of— 
‘‘(I) the percentage and number 
of program participants who are in 
unsubsidized employment during the 
second full calendar quarter after exit 
from the program; 
‘‘(II) the percentage and number 
of program participants who are in 
unsubsidized employment during the 
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112 
fourth full calendar quarter after exit 
from the program; 
‘‘(III) the median earnings of 
program participants who are in un-
subsidized employment during the sec-
ond full calendar quarter after exit 
from the program compared to the 
median earnings of such participants 
prior to the training received under 
such program; 
‘‘(IV) the percentage and number 
of program participants who obtain a 
recognized postsecondary credential, 
including a registered apprenticeship, 
or a regular secondary school diploma 
or its recognized equivalent (subject to 
clause (iii)), during participation in or 
within 1 year after exit from program; 
‘‘(V) the percentage and number 
of program participants who, during a 
program year— 
‘‘(aa) are in an education or 
training program that leads to a 
recognized postsecondary creden-
tial, including a registered ap-
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113 
prenticeship or on-the-job train-
ing program, a regular secondary 
school diploma or its recognized 
equivalent, or unsubsidized em-
ployment; and 
‘‘(bb) are achieving measur-
able basic skill gains toward such 
a credential or employment; and 
‘‘(VI) the percentage and number 
of program participants who obtain 
unsubsidized employment in the field 
relating to the training services de-
scribed in section 134(c)(4) that such 
participants received. 
‘‘(ii) CORE INDICATORS FOR ELIGIBLE 
YOUTH.—The core indicators of perform-
ance for the program of youth activities 
authorized under section 134(a)(5), shall 
include— 
‘‘(I) the percentage and number 
of program participants who are in 
education or training activities in un-
subsidized employment, or in the mili-
tary service, during the first full cal-
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114 
endar quarter after exit from the pro-
gram; 
‘‘(II) the percentage and number 
of program participants who are in 
education or training activities, in un-
subsidized employment, or in the mili-
tary service, during the fourth full cal-
endar quarter after exit from the pro-
gram; 
‘‘(III) the median earnings of 
program participants who are in un-
subsidized employment during the sec-
ond full calendar quarter after exit 
from the program compared to the 
median earnings of such participants 
prior to the training; 
‘‘(IV) the percentage and number 
of program participants who obtain a 
recognized postsecondary credential 
described in clause (i)(IV), or a reg-
ular secondary school diploma or its 
recognized 
equivalent 
(subject 
to 
clause (iii)), during participation in or 
within 1 year after exit from the pro-
gram; 
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115 
‘‘(V) the percentage and number 
of program participants who, during a 
program year, are in an education or 
training program that leads to a rec-
ognized postsecondary credential or a 
regular secondary school diploma or 
its recognized equivalent, or unsub-
sidized employment and who are 
achieving measurable basic skill gains 
toward such a credential or employ-
ment; and 
‘‘(VI) the percentage and number 
of program participants who obtain 
unsubsidized employment in the field 
relating to the training services de-
scribed in section 134(c)(4) that such 
participants received. 
‘‘(iii) INDICATOR RELATING TO CRE-
DENTIAL.—For purposes of clause (i)(IV) 
and (ii)(IV), program participants who ob-
tain a regular secondary school diploma or 
its recognized equivalent shall be included 
in the percentage counted as meeting the 
criterion under such clause only if such 
participants, in addition to obtaining such 
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diploma or its recognized equivalent, have, 
within 1 year after exit from the program, 
obtained or retained employment, have 
been removed from public assistance, or 
are in an education or training program 
leading to a recognized postsecondary cre-
dential described in clause (i)(IV). 
‘‘(B) ADDITIONAL INDICATORS.—A State 
may identify in the State plan additional indica-
tors for workforce investment activities author-
ized under this subtitle.’’; and 
(B) in paragraph (3)— 
(i) in subparagraph (A)— 
(I) in the heading, by striking 
‘‘AND CUSTOMER SATISFACTION INDI-
CATOR’’; 
(II) in clause (i), by striking 
‘‘and the customer satisfaction indi-
cator described in paragraph (2)(B)’’; 
(III) in clause (ii), by striking 
‘‘and the customer satisfaction indi-
cator of performance, for the first 3’’ 
and inserting ‘‘, for the first 2’’; 
(IV) in clause (iii)— 
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(aa) in the heading, by 
striking ‘‘3 YEARS’’ and inserting 
‘‘2 YEARS’’; and 
(bb) by striking ‘‘and the 
customer satisfaction indicator of 
performance, for the first 3 pro-
gram years’’ and inserting ‘‘for 
the first 2 program years’’; 
(V) in clause (iv)— 
(aa) by striking subclause 
(I) and redesignating subclauses 
(II) and (III) as subclauses (I) 
and (II), respectively; and 
(bb) in subclause (I) (as so 
redesignated)— 
(AA) by striking ‘‘tak-
ing into account’’ and in-
serting ‘‘which shall be ad-
justed based on’’; 
(BB) by inserting ‘‘, 
such as unemployment rates 
and job losses or gains in 
particular industries’’ after 
‘‘economic conditions’’; and 
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118 
(CC) by inserting ‘‘, 
such as indicators of poor 
work experience, dislocation 
from high-wage employment, 
low levels of literacy or 
English 
proficiency, 
dis-
ability status, including the 
number of veterans with dis-
abilities, and welfare de-
pendency’’ after ‘‘program’’; 
(VI) by striking clause (v) and 
redesignating clause (vi) as clause (v); 
and 
(VII) in clause (v) (as so redesig-
nated), 
(aa) by striking ‘‘described 
in clause (iv)(II)’’ and inserting 
‘‘described in clause (iv)(I)’’; and 
(bb) striking ‘‘or (v)’’; and 
(ii) in subparagraph (B), by striking 
‘‘paragraph (2)(C)’’ and inserting ‘‘para-
graph (2)(B)’’; 
(2) in subsection (c)(1)(A)— 
(A) by amending clause (i) to read as fol-
lows: 
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‘‘(i) the core indicators of perform-
ance described in subsection (b)(2)(A) for 
activities described in such subsections, 
other than statewide workforce investment 
activities; and’’; 
(B) in clause (ii), by striking ‘‘(b)(2)(C)’’ 
and inserting ‘‘(b)(2)(B)’’; and 
(C) by amending paragraph (3) to read as 
follows: 
‘‘(3) DETERMINATIONS.—In determining such 
local levels of performance, the local board, the chief 
elected official, and the Governor shall ensure such 
levels are adjusted based on the specific economic 
characteristics (such as unemployment rates and job 
losses or gains in particular industries), demographic 
characteristics, or other characteristics of the popu-
lation to be served in the local area, such as poor 
work history, lack of work experience, dislocation 
from high-wage employment, low levels of literacy or 
English proficiency, disability status, including the 
number of veterans with disabilities, and welfare de-
pendency.’’; 
(3) in subsection (d)— 
(A) in paragraph (1)— 
(i) by striking ‘‘127 or’’; and 
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(ii) by striking ‘‘and the customer sat-
isfaction indicator’’ each place it appears; 
(B) in paragraph (2)— 
(i) in subparagraph (A), by striking 
‘‘section 134(d)(4)’’ and inserting ‘‘section 
134)(c)(4)’’; 
(ii) in subparagraph (E), by striking 
‘‘(excluding participants who received only 
self-service and information activities); 
and’’ and inserting a semicolon; 
(iii) by striking ‘‘and’’ at the end of 
subparagraph (E); 
(iv) by striking the period at the end 
of subparagraph (F) and inserting ‘‘; and’’; 
and 
(v) by adding at the end, the fol-
lowing: 
‘‘(G) with respect to each local area in the 
State— 
‘‘(i) the number of individuals who re-
ceived work ready services described under 
section 134(c)(2) and the number of indi-
viduals who received training services de-
scribed under section 134(c)(4) during the 
most recent program year and fiscal year, 
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and the preceding 5 program years, and 
where the individuals received the training, 
disaggregated by the type of entity that 
provided the training; 
‘‘(ii) the number of individuals who 
successfully exited out of work ready serv-
ices described under section 134(c)(2) and 
the number of individuals who exited out 
of training services described under section 
134(c)(4) during the most recent program 
year and fiscal year, and the preceding 5 
program years, and where the individuals 
received the training, disaggregated by the 
type of entity that provided the training; 
and 
‘‘(iii) the average cost per participant 
of those individuals who received work 
ready services described under section 
134(c)(2) and the average cost per partici-
pant of those individuals who received 
training services described under section 
134(c)(4) during the most recent program 
year and fiscal year, and the preceding 5 
program years, and where the individuals 
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received the training, disaggregated by the 
type of entity that provided the training.’’; 
(C) in paragraph (3), by striking ‘‘through 
publication’’ and inserting ‘‘through electronic 
means’’; and 
(D) by adding at the end the following: 
‘‘(4) DATA VALIDATION.—In preparing the re-
ports described in this subsection, each State shall 
establish procedures, consistent with guidelines 
issued by the Secretary, to ensure the information 
contained in the report is valid and reliable.’’; 
(4) in subsection (g)— 
(A) in subsection (g)(1)(A), by striking ‘‘or 
(B)’’; 
(B) in paragraph (1)(B), by striking ‘‘may 
reduce by not more than 5 percent,’’ and insert-
ing ‘‘shall reduce’’; and 
(C) by striking paragraph (2) and insert-
ing the following: 
‘‘(2) FUNDS RESULTING FROM REDUCED AL-
LOTMENTS.—The Secretary shall return to the 
Treasury the amount retained, as a result of a re-
duction in an allotment to a State made under para-
graph (1)(B).’’; 
(5) in subsection (h)(1), by striking ‘‘or (B)’’; 
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123 
(6) in subsection (h)(2)— 
(A) in subparagraph (A), by amending the 
matter preceding clause (i) to read as follows: 
‘‘(A) IN GENERAL.—If such failure con-
tinues for a second consecutive year, the Gov-
ernor shall take corrective actions, including the 
development of a reorganization plan. Such 
plan shall—’’; 
(B) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (D), respec-
tively; 
(C) by inserting after subparagraph (A), 
the following: 
‘‘(B) REDUCTION
IN
THE
AMOUNT
OF 
GRANT.—If such failure continues for a third 
consecutive year, the Governor of a State shall 
reduce the amount of the grant that would (in 
the absence of this subparagraph) be payable to 
the local area under such program for the pro-
gram year after such third consecutive year. 
Such penalty shall be based on the degree of 
failure to meet local levels of performance.’’; 
(D) in subparagraph (C)(i) (as so redesig-
nated), by striking ‘‘a reorganization plan 
under subparagraph (A) may, not later than 30 
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days after receiving notice of the reorganization 
plan, appeal to the Governor to rescind or re-
vise such a plan’’ and inserting ‘‘corrective ac-
tions under subparagraphs (A) and (B) may, 
not later than 30 days after receiving notice of 
the actions, appeal to the Governor to rescind 
or revise such actions’’; and 
(E) in subparagraph (D) (as so redesig-
nated), by striking ‘‘subparagraph (B)’’ each 
place it appears and inserting ‘‘subparagraph 
(C)’’; 
(7) 
in 
subsection 
(i)(1)(C), 
by 
striking 
‘‘(b)(3)(A)(vi)’’ and inserting ‘‘(b)(3)(A)(v)’’; 
(8) in subsection (i)(1)(B), by striking ‘‘sub-
section 
(b)(2)(C)’’ 
and 
inserting 
‘‘subsection 
(b)(2)(B)’’; and 
(9) by adding at the end the following sub-
section: 
‘‘(j) USE OF CORE INDICATORS FOR OTHER PRO-
GRAMS.—In addition to the programs carried out under 
chapter 5, and consistent with the requirements of the ap-
plicable authorizing laws, the Secretary shall use the core 
indicators of performance described in subsection 
(b)(2)(A) to assess the effectiveness of the programs de-
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scribed under section 121(b)(1)(B) that are carried out 
by the Secretary.’’. 
SEC. 115. AUTHORIZATION OF APPROPRIATIONS. 
Section 137 is amended to read as follows: 
‘‘SEC. 137. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
the activities described in section 132, $6,080,237,000 for 
fiscal year 2013 and each of the 5 succeeding fiscal 
years.’’. 
SEC. 116. TECHNICAL ASSISTANCE. 
Section 170 (29 U.S.C. 2915) is amended— 
(1) by striking subsection (b); 
(2) by striking: 
‘‘(a) GENERAL TECHNICAL ASSISTANCE.—’’; 
(3) by redesignating paragraphs (1), (2), and 
(3) as subsections (a), (b), and (c) respectively, and 
moving such subsections 2 ems to the left; 
(4) in subsection (a) (as so redesignated)— 
(A) by inserting ‘‘the training of staff pro-
viding rapid response services, the training of 
other staff of recipients of funds under this 
title, assistance regarding accounting and pro-
gram operation practices (when such assistance 
would not be duplicative to assistance provided 
by the State), technical assistance to States 
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126 
that do not meet State performance measures 
described in section 136,’’ after ‘‘localities,’’; 
and 
(B) by striking ‘‘from carrying out activi-
ties’’ and all that follows up to the period and 
inserting ‘‘to implement the amendments made 
by the Workforce Investment Improvement Act 
of 2011’’; and 
(5) in subsection (b) (as so redesignated) by 
striking ‘‘, or recipient of financial assistance under 
any of section 166 through 169,’’; and 
(6) by inserting, after subsection (c) (as redes-
ignated by paragraph (3)), the following: 
‘‘(d) BEST PRACTICES COORDINATION.—The Sec-
retary shall— 
‘‘(1) establish a system through which States 
may share information regarding best practices with 
regard to the operation of workforce investment ac-
tivities under this Act; and 
‘‘(2) evaluate and disseminate information re-
garding best practices and identify knowledge 
gaps.’’. 
SEC. 117. EVALUATIONS. 
Section 172 is amended— 
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(1) in subsection (a), by striking ‘‘the Secretary 
shall provide for the continuing evaluation of the 
programs and activities, including those programs 
and activities carried out under section 171’’ and in-
serting ‘‘the Secretary, through grants, contracts, or 
cooperative agreements, shall conduct, at least once 
every 5 years, an independent evaluation of the pro-
grams and activities funded under this Act’’; 
(2) in subsection (a)(4) is amended to read as 
follows: 
‘‘(4) the impact of receiving services and not re-
ceiving services under such programs and activities 
on the community, businesses, and individuals;’’; 
(3) in subsection (c) is amended to read as fol-
lows: 
‘‘(c) TECHNIQUES.—Evaluations conducted under 
this section shall utilize appropriate and rigorous method-
ology and research designs, including the use of control 
groups chosen by scientific random assignment methodolo-
gies, quasi-experimental methods, impact analysis and the 
use of administrative data. The Secretary shall conduct 
an impact analysis, as described in subsection (a)(4), of 
the formula grant program under subtitle B not later than 
2014, and thereafter shall conduct such an analysis not 
less than once every four years.’’; 
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128 
(4) in subsection (e) is amended by striking 
‘‘the Committee on Labor and Human Resources of 
the Senate’’ and inserting ‘‘the Committee on 
Health, Education, Labor, and Pensions of the Sen-
ate’’; and 
(5) by adding at the end, the following: 
‘‘(g) PUBLIC AVAILABILITY.—The results of the eval-
uations conducted under this section shall be made pub-
licly available, including by posting such results on the De-
partment’s website.’’. 
SEC. 118. AMENDMENTS TO SECTION 173. 
Section 173 (29 U.S.C. 2918) is amended— 
(1) by amending the heading for section 173 to 
read as follows: ‘‘NATIONAL DISLOCATED WORK-
ER GRANTS’’; 
(2) in subsection (a)— 
(A) 
by 
striking 
‘‘national 
emergency 
grants’’ in the matter preceding paragraph (1) 
and inserting ‘‘national dislocated worker 
grants’’; 
(B) in paragraph (1), by striking ‘‘sub-
section (c)’’ and inserting ‘‘subsection (b)’’; and 
(C) in paragraph (4)— 
(i) in subparagraph (A)— 
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131 
(12) strike subsection (e)(4)(B) (as so redesig-
nated). 
SEC. 119. REQUIREMENTS AND RESTRICTIONS. 
Section 181 (29 U.S.C. 2931) is amended— 
(1) in subsection (b)(6), by striking ‘‘, including 
representatives of businesses and labor organiza-
tions’’; 
(2) in subsection (c)(2)(A), in the matter pre-
ceding clause (i), by striking ‘‘shall’’ and inserting 
‘‘may’’; 
(3) in subsection (e)— 
(A) by striking ‘‘training for’’ and insert-
ing ‘‘the entry into employment, retention in 
employment, or increases in earnings of’’; and 
(B) by striking ‘‘under subtitle B’’ and in-
serting ‘‘this Act’’; and 
(4) by adding at the end the following: 
‘‘(g) SALARY AND BONUS LIMITATION.—No funds 
provided under this title shall be used by a recipient or 
subrecipient of such funds to pay the salary and bonuses 
of an individual, either as direct costs or indirect costs, 
at a rate in excess of Level II of the Federal Executive 
Pay Schedule (5 U.S.C. 5313). This limitation shall not 
apply to vendors providing goods and services as defined 
in OMB Circular A–133. Where States are recipients of 
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132 
such funds, States may establish a lower limit for salaries 
and bonuses of those receiving salaries and bonuses from 
subrecipients of such funds, taking into account factors 
including the relative cost-of-living in the State, the com-
pensation levels for comparable State or local government 
employees, and the size of the organizations that admin-
ister the programs. 
‘‘(h) GENERAL AUTHORITY.— 
‘‘(1) IN
GENERAL.—The Employment and 
Training Administration of the U.S. Department of 
Labor (hereinafter in this Act referred to as the ‘Ad-
ministration’) shall administer all programs author-
ized under title I and III of this Act. The Adminis-
tration shall be headed by an Assistant Secretary 
appointed by the President by and with the advice 
and consent of the Senate. Except for titles II and 
IV, the Administration shall be the principal agency, 
and the Assistant Secretary shall be the principal of-
ficer, of such Department for carrying out this Act. 
‘‘(2) QUALIFICATIONS.—The Assistant Sec-
retary shall be an individual with substantial experi-
ence in workforce development and in workforce de-
velopment management. The Assistant Secretary 
shall also, to the maximum extent possible, possess 
knowledge and have worked in or with the State or 
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133 
local workforce investment system or have been a 
member of the business community. In the perform-
ance of the functions of the office, the Assistant Sec-
retary shall be directly responsible to the Secretary 
or the Under Secretary as designed by the Sec-
retary. The functions of the Assistant Secretary 
shall not be delegated to any officer not directly re-
sponsible, both with respect to program operation 
and administration, to the Assistant Secretary. Any 
reference in this Act to duties to be carried out by 
the Assistant Secretary shall be considered to be a 
reference to duties to be carried out by the Secretary 
acting through the Assistant Secretary.’’. 
SEC. 120. PROMPT ALLOCATION OF FUNDS. 
Section 182 (29 U.S.C. 2932) is amended— 
(1) in subsection (c), by striking ‘‘127 or’’; and 
(2) in subsection (e)— 
(A) by striking ‘‘sections 128 and 133’’ 
and inserting ‘‘section 133’’; and 
(B) by striking ‘‘127 or’’. 
SEC. 121. FISCAL CONTROLS; SANCTIONS. 
Section 184(a)(2) (29 U.S.C. 2934(a)(2)) is amended 
by striking subparagraph (B). 
SEC. 122. REPORTS TO CONGRESS. 
Section 185 (29 U.S.C. 2935) is amended— 
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134 
(1) in subsection (c)— 
(A) in paragraph (2), by striking ‘‘and’’ 
after the semicolon; 
(B) in paragraph (3), by striking the pe-
riod and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(4) shall have the option to submit or dissemi-
nate electronically any reports, records, plans, or any 
other data that are required to be collected or dis-
seminated under this title.’’; and 
(2) in subsection (e)(2), by inserting ‘‘and the 
Secretary shall submit to the Committee on Edu-
cation and the Workforce of the House of Rep-
resentatives and the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate,’’ after 
‘‘Secretary,’’. 
SEC. 123. ADMINISTRATIVE PROVISIONS. 
Section 189 (29 U.S.C. 2939) is amended— 
(1) in subsection (g)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) IN GENERAL.—Appropriations for any fis-
cal year for programs and activities carried out 
under this title shall be available for obligation only 
on the basis of a program year. The program year 
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135 
shall begin on July 1 in the fiscal year for which the 
appropriation is made.’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘each State’’ and in-
serting ‘‘each recipient’’; and 
(ii) by striking ‘‘171 or’’; 
(2) in subsection (i)(4)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘requirements of sub-
paragraph (B)’’ and all that follows 
through ‘‘any of the statutory or regu-
latory requirements of subtitle B’’ and in-
serting ‘‘requirements of subparagraph (B) 
or (D), any of the statutory or regulatory 
requirements of subtitle B’’; and 
(ii) by striking clause (ii); and 
(B) by adding at the end the following: 
‘‘(D) EXPEDITED PROCESS FOR EXTEND-
ING
APPROVED
WAIVERS
TO
ADDITIONAL 
STATES.—In lieu of the requirements of sub-
paragraphs (B) and (C), the Secretary may es-
tablish an expedited procedure for the purpose 
of extending to additional States the waiver of 
statutory or regulatory requirements that have 
been approved for a State pursuant to a request 
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136 
under subparagraph (B). Such procedure shall 
ensure that the extension of such waivers to ad-
ditional States are accompanied by appropriate 
conditions relating the implementation of such 
waivers.’’. 
SEC. 124. STATE LEGISLATIVE AUTHORITY. 
Section 191(a) (29 U.S.C. 2941(a)) is amended— 
(1) by striking ‘‘consistent with the provisions 
of this title’’ and inserting ‘‘consistent with State 
law and the provisions of this title’’; and 
(2) by striking ‘‘consistent with the terms and 
conditions required under this title’’ and inserting 
‘‘consistent with State law and the terms and condi-
tions required under this title’’. 
SEC. 125. CONTINUATION OF STATE ACTIVITIES AND POLI-
CIES. 
Section 194 (20 U.S.C. 2944) is amended— 
(1) in subsection (a)(1)(A), by striking ‘‘127 
or’’; 
(2) in subsection (a)(1)(B), by striking ‘‘127 
or’’; and 
(3) in subsection (a)(2), by striking ‘‘127 or’’. 
SEC. 126. GENERAL PROGRAM REQUIREMENTS. 
Section 195 (29 U.S.C. 2945) is amended— 
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137 
(1) in paragraph (7), by inserting at the end 
the following: 
‘‘(D) Funds received by a public or private 
nonprofit entity that are not described in para-
graph (B), such as funds privately raised from 
philanthropic foundations, businesses, or other 
private entities, shall not be considered to be in-
come under this title and shall not be subject 
to the requirements of this section.’’; and 
(2) by adding at the end the following new 
paragraphs: 
‘‘(14) Funds provided under this title shall not 
be used to establish or operate stand-alone fee-for- 
service enterprises that compete with private sector 
employment agencies within the meaning of section 
701(c) of the Civil Rights Act of 1964 (42 U.S.C. 
2000e(c)), except that for purposes of this para-
graph, such an enterprise does not include one-stop 
centers. 
‘‘(15) Any report required to be submitted to 
Congress, or to a Committee of Congress, under this 
title shall be submitted to both the chairmen and 
ranking minority members of the Committee on 
Education and the Workforce of the House of Rep-
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138 
resentatives and the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate.’’. 
SEC. 127. STATE UNIFIED PLAN. 
Section 501 (20 U.S.C. 9271) is amended— 
(1) by amending subsection (b) to read as fol-
lows: 
‘‘(b) STATE UNIFIED PLAN.— 
‘‘(1) IN GENERAL.—A State may develop and 
submit to the appropriate Secretaries a State unified 
plan for 2 or more of the activities or programs set 
forth in paragraph (2). The State unified plan shall 
cover one or more of the activities set forth in sub-
paragraphs (A) and (B) of paragraph (2) and may 
cover one or more of the activities set forth in sub-
paragraphs (C) through (N) of paragraph (2). For 
purposes of this paragraph, the activities and pro-
grams described in subparagraphs (A) and (B) of 
paragraph (2) shall not be considered to be 2 or 
more activities or programs for purposes of the uni-
fied plan. Such activities or programs shall be con-
sidered to be 1 activity or program. 
‘‘(2) ACTIVITIES AND PROGRAMS.—The activi-
ties and programs referred to in paragraph (1) are 
as follows: 
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139 
‘‘(A) Programs and activities authorized 
under title I. 
‘‘(B) Programs and activities authorized 
under title II. 
‘‘(C) Programs authorized under the Reha-
bilitation Act of 1973. 
‘‘(D) Secondary career education programs 
authorized under the Carl D. Perkins Career 
and Applied Technology Education Act. 
‘‘(E) Postsecondary career education pro-
grams authorized under the Carl D. Perkins 
Career and Applied Technology Education Act. 
‘‘(F) Programs and activities authorized 
under title II of the Trade Act of 1974. 
‘‘(G) National Apprenticeship Act of 1937. 
‘‘(H) Programs authorized under the Com-
munity Services Block Grant Act. 
‘‘(I) Programs authorized under the part A 
of title IV of the Social Security Act. 
‘‘(J) Programs authorized under State un-
employment compensation laws (in accordance 
with applicable Federal law). 
‘‘(K) Work programs authorized under sec-
tion 6(o) of the Food Stamp Act of 1977. 
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140 
‘‘(L) Programs and activities authorized 
title I of the Housing and Community Develop-
ment Act of 1974. 
‘‘(M) Programs and activities authorized 
under the Public Workers and Economic Devel-
opment Act of 1965. 
‘‘(N) Activities as defined under chapter 
41 of title 38, United States Code.’’; and 
(2) by adding at the end, the following: 
‘‘(e) AUTHORITY TO CONSOLIDATE FUNDS INTO 
WORKFORCE INVESTMENT FUND.— 
‘‘(1) IN GENERAL.—A State may consolidate 
funds allotted to a State under an approved applica-
tion under subsection (d) into the Workforce Invest-
ment Fund under section 132(b) in order to reduce 
inefficiencies in the administration of federally-fund-
ed State and local employment and training pro-
grams. 
‘‘(2) TREATMENT OF FUNDS.— 
‘‘(A) IN GENERAL.—Notwithstanding sub-
section (c), a State with an approved applica-
tion under subsection (d) may treat any and all 
funds consolidated into the Workforce Invest-
ment Fund as if they were original funds allot-
ted to a State under section 132(b). 
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141 
‘‘(B) APPLICABILITY.—Such a State shall 
continue to make reservations, except the res-
ervation under section 133(a)(1), and allot-
ments in accordance with section 133(b)(2). 
‘‘(3) SPECIAL RULE.—A State may not consoli-
date funds allocated to the State under the Carl D. 
Perkins Career and Technical Education Act of 
2006.’’. 
TITLE 
II—ADULT 
EDUCATION 
AND FAMILY LITERACY EDU-
CATION 
SEC. 201. AMENDMENT. 
Title II (29 U.S.C. 2901 et seq.) is amended to read 
as follows: 
‘‘TITLE 
II—ADULT 
EDUCATION 
AND FAMILY LITERACY EDU-
CATION 
‘‘SEC. 201. SHORT TITLE. 
‘‘This title may be cited as the ‘Adult Education and 
Family Literacy Education Act’. 
‘‘SEC. 202. PURPOSE. 
‘‘It is the purpose of this title to provide instructional 
opportunities for adults seeking to improve their literacy 
skills, including their basic reading, writing, speaking, and 
math skills, and support States and local communities in 
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142 
providing, on a voluntary basis, adult education and family 
literacy education programs, in order to— 
‘‘(1) increase the literacy of adults, including 
the basic reading, writing, speaking, and math skills, 
to a level of proficiency necessary for adults to ob-
tain employment and self-sufficiency and to success-
fully advance in the workforce; 
‘‘(2) assist adults in the completion of a sec-
ondary school education (or its equivalent) and the 
transition to a postsecondary educational institution; 
‘‘(3) assist adults who are parents to enable 
them to support the educational development of their 
children and make informed choices regarding their 
children’s education including, through instruction in 
basic reading, writing, speaking, and math skills; 
and 
‘‘(4) assist adults who are not proficient in 
English in improving their reading, writing, speak-
ing, listening, comprehension, and math skills. 
‘‘SEC. 203. DEFINITIONS. 
‘‘In this title: 
‘‘(1) ADULT EDUCATION AND FAMILY LITERACY 
EDUCATION PROGRAMS.—The term ‘adult education 
and family literacy education programs’ means a se-
quence of academic instruction and educational serv-
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143 
ices below the postsecondary level that increase an 
individual’s ability to read, write, and speak English 
and perform mathematical computations leading to a 
level of proficiency equivalent to at least a secondary 
school completion that is provided for individuals— 
‘‘(A) who are at least 16 years of age; 
‘‘(B) who are not enrolled or required to be 
enrolled in secondary school under State law; 
and 
‘‘(C) who— 
‘‘(i) lack sufficient mastery of basic 
reading, writing, speaking, and math skills 
to enable the individuals to function effec-
tively in society; 
‘‘(ii) do not have a secondary school 
diploma or its equivalent and have not 
achieved an equivalent level of education; 
or 
‘‘(iii) are English learners. 
‘‘(2) ELIGIBLE
AGENCY.—The term ‘eligible 
agency’— 
‘‘(A) means the primary entity or agency 
in a State or an outlying area responsible for 
administering or supervising policy for adult 
education and family literacy education pro-
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144 
grams in the State or outlying area, respec-
tively, consistent with the law of the State or 
outlying area, respectively; and 
‘‘(B) may be the State educational agency, 
the State agency responsible for administering 
workforce investment activities, or the State 
agency responsible for administering community 
or technical colleges. 
‘‘(3) ELIGIBLE PROVIDER.—The term ‘eligible 
provider’ means— 
‘‘(A) a local educational agency; 
‘‘(B) a community-based or faith-based or-
ganization of demonstrated effectiveness; 
‘‘(C) a volunteer literacy organization of 
demonstrated effectiveness; 
‘‘(D) an institution of higher education; 
‘‘(E) a public or private educational agen-
cy; 
‘‘(F) a library; 
‘‘(G) a public housing authority; 
‘‘(H) an institution that is not described in 
any of subparagraphs (A) through (G) and has 
the ability to provide adult education, basic 
skills, and family literacy education programs to 
adults and families; or 
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‘‘(I) a consortium of the agencies, organi-
zations, institutions, libraries, or authorities de-
scribed in any of subparagraphs (A) through 
(H). 
‘‘(4) ENGLISH
LANGUAGE
ACQUISITION
PRO-
GRAM.—The term ‘English language acquisition pro-
gram’ means a program of instruction— 
‘‘(A) designed to help English learners 
achieve competence in reading, writing, speak-
ing, and comprehension of the English lan-
guage; and 
‘‘(B) that may lead to— 
‘‘(i) attainment of a secondary school 
diploma or its recognized equivalent; 
‘‘(ii) transition to success in postsec-
ondary education and training; and 
‘‘(iii) employment or career advance-
ment. 
‘‘(5) 
FAMILY
LITERACY
EDUCATION
PRO-
GRAM.—The term ‘family literacy education pro-
gram’ means an educational program that— 
‘‘(A) assists parents and students, on a 
voluntary basis, in achieving the purposes of 
this title as described in section 202; and 
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‘‘(B) is of sufficient intensity in terms of 
hours and of sufficient duration to make sus-
tainable changes in a family, is evidence-based, 
and, for the purpose of substantially increasing 
the ability of parents and children to read, 
write, and speak English, integrates— 
‘‘(i) interactive literacy activities be-
tween parents and their children; 
‘‘(ii) training for parents regarding 
how to be the primary teacher for their 
children and full partners in the education 
of their children; 
‘‘(iii) parent literacy training that 
leads to economic self-sufficiency; and 
‘‘(iv) an age-appropriate education to 
prepare children for success in school and 
life experiences. 
‘‘(6) GOVERNOR.—The term ‘Governor’ means 
the chief executive officer of a State or outlying 
area. 
‘‘(7) INDIVIDUAL WITH A DISABILITY.— 
‘‘(A) IN GENERAL.—The term ‘individual 
with a disability’ means an individual with any 
disability (as defined in section 3 of the Ameri-
cans with Disabilities Act of 1990). 
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‘‘(B) INDIVIDUALS WITH DISABILITIES.— 
The term ‘individuals with disabilities’ means 
more than one individual with a disability. 
‘‘(8) ENGLISH LEARNER.—The term ‘English 
learner’ means an adult or out-of-school youth who 
has limited ability in reading, writing, speaking, or 
understanding the English language, and— 
‘‘(A) whose native language is a language 
other than English; or 
‘‘(B) who lives in a family or community 
environment where a language other than 
English is the dominant language. 
‘‘(9) INTEGRATED
EDUCATION
AND
TRAIN-
ING.—The term ‘integrated education and training’ 
means services that provide adult education and lit-
eracy activities contextually and concurrently with 
workforce preparation activities and workforce train-
ing for a specific occupation or occupational cluster. 
Such services may include offering adult education 
services concurrent with credit-bearing postsec-
ondary education and training, including through co- 
instruction. 
‘‘(10) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
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meaning given the term in section 101 of the Higher 
Education Act of 1965. 
‘‘(11) LITERACY.—The term ‘literacy’ means an 
individual’s ability to read, write, and speak in 
English, compute, and solve problems at a level of 
proficiency necessary to obtain employment and to 
successfully make the transition to postsecondary 
education. 
‘‘(12) LOCAL
EDUCATIONAL
AGENCY.—The 
term ‘local educational agency’ has the meaning 
given the term in section 9101 of the Elementary 
and Secondary Education Act of 1965. 
‘‘(13) OUTLYING
AREA.—The term ‘outlying 
area’ has the meaning given the term in section 101 
of this Act. 
‘‘(14) POSTSECONDARY EDUCATIONAL INSTITU-
TION.—The term ‘postsecondary educational institu-
tion’ means— 
‘‘(A) an institution of higher education 
that provides not less than a 2-year program of 
instruction that is acceptable for credit toward 
a bachelor’s degree; 
‘‘(B) a tribally controlled community col-
lege; or 
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‘‘(C) a nonprofit educational institution of-
fering certificate or apprenticeship programs at 
the postsecondary level. 
‘‘(15) 
SECRETARY.—The 
term 
‘Secretary’ 
means the Secretary of Education. 
‘‘(16) STATE.—The term ‘State’ means each of 
the several States of the United States, the District 
of Columbia, and the Commonwealth of Puerto Rico. 
‘‘(17) STATE
EDUCATIONAL
AGENCY.—The 
term ‘State educational agency’ has the meaning 
given the term in section 9101 of the Elementary 
and Secondary Education Act of 1965. 
‘‘(18) WORKPLACE LITERACY PROGRAM.—The 
term ‘workplace literacy program’ means an edu-
cational program that is offered in collaboration be-
tween eligible providers and employers or employee 
organizations for the purpose of improving the pro-
ductivity of the workforce through the improvement 
of reading, writing, speaking, and math skills. 
‘‘SEC. 204. HOME SCHOOLS. 
‘‘Nothing in this title shall be construed to affect 
home schools, whether or not a home school is treated as 
a home school or a private school under State law, or to 
compel a parent engaged in home schooling to participate 
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in adult education and family literacy education activities 
under this title. 
‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this title, $606,294,933 for fiscal years 2013 and for each 
of the 5 succeeding fiscal years. 
‘‘Subtitle A—FEDERAL 
PROVISIONS 
‘‘SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE 
AGENCIES; ALLOTMENTS. 
‘‘(a) RESERVATION OF FUNDS.—From the sums ap-
propriated under section 205 for a fiscal year, the Sec-
retary shall reserve 2.0 percent to carry out section 242. 
‘‘(b) GRANTS TO ELIGIBLE AGENCIES.— 
‘‘(1) IN
GENERAL.—From the sums appro-
priated under section 205 and not reserved under 
subsection (a) for a fiscal year, the Secretary shall 
award a grant to each eligible agency having a State 
plan approved under section 224 in an amount equal 
to the sum of the initial allotment under subsection 
(c)(1) and the additional allotment under subsection 
(c)(2) for the eligible agency for the fiscal year, sub-
ject to subsections (f) and (g). 
‘‘(2) PURPOSE
OF
GRANTS.—The Secretary 
may award a grant under paragraph (1) only if the 
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eligible agency involved agrees to expend the grant 
in accordance with the provisions of this title. 
‘‘(c) ALLOTMENTS.— 
‘‘(1) INITIAL
ALLOTMENTS.—From the sums 
appropriated under section 205 and not reserved 
under subsection (a) for a fiscal year, the Secretary 
shall allot to each eligible agency having a State 
plan approved under section 224— 
‘‘(A) $100,000, in the case of an eligible 
agency serving an outlying area; and 
‘‘(B) $250,000, in the case of any other el-
igible agency. 
‘‘(2) ADDITIONAL
ALLOTMENTS.—From the 
sums appropriated under section 205, not reserved 
under subsection (a), and not allotted under para-
graph (1), for a fiscal year, the Secretary shall allot 
to each eligible agency that receives an initial allot-
ment under paragraph (1) an additional amount 
that bears the same relationship to such sums as the 
number of qualifying adults in the State or outlying 
area served by the eligible agency bears to the num-
ber of such adults in all States and outlying areas. 
‘‘(d) QUALIFYING ADULT.—For the purpose of sub-
section (c)(2), the term ‘qualifying adult’ means an adult 
who— 
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‘‘(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 its recognized equivalent; and 
‘‘(4) is not enrolled in secondary school. 
‘‘(e) SPECIAL RULE.— 
‘‘(1) IN GENERAL.—From amounts made avail-
able under subsection (c) for the Republic of Palau, 
the Secretary shall award grants to Guam, American 
Samoa, the Commonwealth of the Northern Mariana 
Islands, or the Republic of Palau to carry out activi-
ties described in this title in accordance with the 
provisions of this title as determined by the Sec-
retary. 
‘‘(2) TERMINATION OF ELIGIBILITY.—Notwith-
standing any other provision of law, the Republic of 
Palau shall be eligible to receive a grant under this 
title until an agreement for the extension of United 
States education assistance under the Compact of 
Free Association for the Republic of Palau becomes 
effective. 
‘‘(f) HOLD-HARMLESS PROVISIONS.— 
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‘‘(1) IN GENERAL.—Notwithstanding subsection 
(c), and subject to paragraphs (2) and (3), for fiscal 
year 2013 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. 
‘‘(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 
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the original allotments to such agencies under this title 
for such year. 
‘‘SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM. 
‘‘Programs and activities authorized under this title 
are subject to the performance accountability provisions 
described in paragraph (2)(A) and (3) of section 136(b) 
and may, at a State’s discretion, include additional indica-
tors identified in the State plan approved under section 
224. 
‘‘Subtitle B—STATE PROVISIONS 
‘‘SEC. 221. STATE ADMINISTRATION. 
‘‘Each eligible agency shall be responsible for the fol-
lowing activities under this title: 
‘‘(1) The development, submission, implementa-
tion, and monitoring of the State plan. 
‘‘(2) Consultation with other appropriate agen-
cies, groups, and individuals that are involved in, or 
interested in, the development and implementation 
of activities assisted under this title. 
‘‘(3) Coordination and avoidance of duplication 
with other Federal and State education, training, 
corrections, public housing, and social service pro-
grams. 
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‘‘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 
‘‘(3) shall use not more than 5 percent of the 
grant funds, or $65,000, whichever is greater, for 
the administrative expenses of the eligible agency. 
‘‘(b) MATCHING REQUIREMENT.— 
‘‘(1) IN GENERAL.—In order to receive a grant 
from the Secretary under section 211(b), each eligi-
ble agency shall provide, for the costs to be incurred 
by the eligible agency in carrying out the adult edu-
cation and family literacy education programs for 
which the grant is awarded, a non-Federal contribu-
tion in an amount that is not less than— 
‘‘(A) in the case of an eligible agency serv-
ing an outlying area, 12 percent of the total 
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amount of funds expended for adult education 
and family literacy education programs in the 
outlying area, except that the Secretary may 
decrease the amount of funds required under 
this subparagraph for an eligible agency; and 
‘‘(B) in the case of an eligible agency serv-
ing a State, 25 percent of the total amount of 
funds expended for adult education and family 
literacy education programs in the State. 
‘‘(2) NON-FEDERAL CONTRIBUTION.—An eligi-
ble agency’s non-Federal contribution required under 
paragraph (1) may be provided in cash or in kind, 
fairly evaluated, and shall include only non-Federal 
funds that are used for adult education and family 
literacy education programs in a manner that is con-
sistent with the purpose of this title. 
‘‘SEC. 223. STATE LEADERSHIP ACTIVITIES. 
‘‘(a) IN GENERAL.—Each eligible agency may use 
funds made available under section 222(a)(2) for any of 
the following adult education and family literacy education 
programs: 
‘‘(1) The establishment or operation of profes-
sional development programs to improve the quality 
of instruction provided pursuant to local activities 
required under section 231(b). 
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‘‘(2) The provision of technical assistance to eli-
gible providers of adult education and family literacy 
education programs, including for the development 
and dissemination of evidence based research in-
structional practices in reading, writing, speaking, 
math, and English language acquisition programs. 
‘‘(3) The provision of assistance to eligible pro-
viders in developing, implementing, and reporting 
measurable progress in achieving the objectives of 
this title. 
‘‘(4) The provision of technology assistance, in-
cluding staff training, to eligible providers of adult 
education and family literacy education programs, 
including distance education activities, to enable the 
eligible providers to improve the quality of such ac-
tivities. 
‘‘(5) The development and implementation of 
technology applications or distance education, in-
cluding 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 
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assistance designed to increase rates of enrollment 
in, and successful completion of, adult education and 
family literacy education programs, for adults en-
rolled in such activities. 
‘‘(8) The development and implementation of a 
system to assist in the transition from adult basic 
education to postsecondary education. 
‘‘(9) Activities to promote workplace literacy 
programs. 
‘‘(10) Other activities of statewide significance, 
including assisting eligible providers in achieving 
progress in improving the skill levels of adults who 
participate in programs under this title. 
‘‘(11) Integration of literacy, instructional, and 
occupational skill training and promotion of linkages 
with employees. 
‘‘(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-
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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) 3-YEAR PLANS.— 
‘‘(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 3- 
year State plan. 
‘‘(2) STATE UNIFIED PLAN.—The eligible agen-
cy may submit the State plan as part of a State uni-
fied plan described in section 501. 
‘‘(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 edu-
cation and family literacy education programs, in-
cluding individuals most in need or hardest to serve; 
‘‘(2) a description of the adult education and 
family literacy education programs that will be car-
ried out with funds received under this title; 
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‘‘(3) an assurance that the funds received under 
this title will not be expended for any purpose other 
than for activities under this title; 
‘‘(4) a description of how the eligible agency 
will fund local activities in accordance with the 
measurable goals described in section 231(d); 
‘‘(5) an assurance that the eligible agency will 
expend the funds under this title only in a manner 
consistent with fiscal requirements in section 241; 
‘‘(6) a description of the process that will be 
used for public participation and comment with re-
spect to the State plan, which process— 
‘‘(A) shall include consultation with the 
State workforce investment board, the State 
board responsible for administering community 
or technical colleges, the Governor, the State 
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, and other State agencies 
that promote the improvement of adult edu-
cation and family literacy education programs, 
and direct providers of such programs; and 
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‘‘(B) may include consultation with the 
State agency on higher education, institutions 
responsible for professional development of 
adult education and family literacy education 
programs instructors, representatives of busi-
ness and industry, refugee assistance programs, 
and faith-based organizations; 
‘‘(7) a description of the eligible agency’s strat-
egies for serving populations that include, at a min-
imum— 
‘‘(A) low-income individuals; 
‘‘(B) individuals with disabilities; 
‘‘(C) the unemployed; 
‘‘(D) the underemployed; and 
‘‘(E) individuals with multiple barriers to 
educational enhancement, including English 
learners; 
‘‘(8) a description of how the adult education 
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; 
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‘‘(9) a description of the steps the eligible agen-
cy will take to ensure direct and equitable access, as 
required in section 231(c)(1), including— 
‘‘(A) how the State will build the capacity 
of community-based and faith-based organiza-
tions to provide adult education and family lit-
eracy education programs; and 
‘‘(B) how the State will increase the par-
ticipation of business and industry in adult edu-
cation and family literacy education programs; 
‘‘(10) an assessment of the adequacy of the sys-
tem of the State or outlying area to ensure teacher 
quality and a description of how the State or out-
lying area will use funds received under this subtitle 
to improve teacher quality, including evidence-based 
professional development to improve instruction; and 
‘‘(11) a description of how the eligible agency 
will consult with any State agency responsible for 
postsecondary education to develop adult education 
that prepares students to enter postsecondary edu-
cation without the need for remediation upon com-
pletion of secondary school equivalency programs. 
‘‘(c) PLAN REVISIONS.—When changes in conditions 
or other factors require substantial revisions to an ap-
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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.—The Secretary shall— 
‘‘(1) approve a State plan within 120 days after 
receiving the plan unless the Secretary makes a writ-
ten determination within 30 days after receiving the 
plan that the plan does not meet the requirements 
of this section or is inconsistent with specific provi-
sions of this subtitle; and 
‘‘(2) not finally disapprove of a State plan be-
fore offering the eligible agency the opportunity, 
prior to the expiration of the 30-day period begin-
ning on the date on which the eligible agency re-
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ceived the written determination described in para-
graph (3), to review the plan and providing technical 
assistance in order to assist the eligible agency in 
meeting the requirements of this subtitle. 
‘‘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; 
‘‘(4) secondary school credit or diploma pro-
grams or their recognized equivalent; 
‘‘(5) integrated education and training; 
‘‘(6) 
postsecondary 
correctional 
education 
linked to employment; and 
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‘‘(7) transition to re-entry initiatives and other 
post-release services with the goal of reducing recidi-
vism. 
‘‘(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: 
‘‘(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. 
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166 
‘‘Subtitle C—LOCAL PROVISIONS 
‘‘SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PRO-
VIDERS. 
‘‘(a) GRANTS AND CONTRACTS.—From grant funds 
made available under section 222(a)(1), each eligible agen-
cy shall award multi-year grants or contracts, on a com-
petitive basis, to eligible providers within the State or out-
lying area that meet the conditions and requirements of 
this title to enable the eligible providers to develop, imple-
ment, and improve adult education and family literacy 
education programs within the State. 
‘‘(b) LOCAL ACTIVITIES.—The eligible agency shall 
require eligible providers receiving a grant or contract 
under subsection (a) to establish or operate— 
‘‘(1) programs that provide adult education and 
literacy activities; 
‘‘(2) programs that provide such activities con-
currently with postsecondary education or training 
or employment activities; and 
‘‘(3) credit-bearing postsecondary coursework. 
‘‘(c) DIRECT AND EQUITABLE ACCESS; SAME PROC-
ESS.—Each eligible agency receiving funds under this title 
shall ensure that— 
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‘‘(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 
core indicators of performance described in section 
136(b)(2)(A); 
‘‘(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 exceeding its perform-
ance 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 are English learners; 
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‘‘(4) the program is of sufficient intensity and 
duration for participants to achieve substantial 
learning gains; 
‘‘(5) educational practices are evidence-based; 
‘‘(6) the activities of the eligible provider effec-
tively employ advances in technology, and delivery 
systems including distance education; 
‘‘(7) the activities provide instruction in real-life 
contexts, including integrated education and training 
when appropriate, 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 who meet 
minimum qualifications established by the State; 
‘‘(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, local workforce investment boards, one-stop 
centers, job training programs, community-based 
and faith-based organizations, and social service 
agencies; 
‘‘(10) the activities offer flexible schedules and 
support services (such as child care and transpor-
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169 
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 (consistent 
with section 136) and to monitor program perform-
ance; 
‘‘(12) the local communities have a dem-
onstrated need for additional English language ac-
quisition programs, and integrated education and 
training programs; 
‘‘(13) the capacity of the eligible provider to 
produce valid information on performance results, 
including enrollments and measurable participant 
outcomes; 
‘‘(14) adult education and family literacy edu-
cation programs offer rigorous reading, writing, 
speaking, and math content that are evidence based; 
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. 
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170 
‘‘(e) SPECIAL RULE.—Eligible providers may use 
grant funds under this title to serve children participating 
in family literacy programs assisted under this part, pro-
vided that other sources of funds available to provide simi-
lar services for such children are used first. 
‘‘SEC. 232. LOCAL APPLICATION. 
‘‘Each eligible provider desiring a grant or contract 
under this title shall submit an application to the eligible 
agency containing such information and assurances as the 
eligible agency may require, including— 
‘‘(1) a description of how funds awarded under 
this title will be spent consistent with the require-
ments of this title; 
‘‘(2) a description of any cooperative arrange-
ments the eligible provider has with other agencies, 
institutions, or organizations for the delivery of 
adult education 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— 
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‘‘(1) at least 95 percent shall be expended for 
carrying out adult education and family literacy edu-
cation programs; and 
‘‘(2) the remaining amount shall be used for 
planning, administration, personnel and professional 
development, development of measurable goals in 
reading, writing, speaking, and math, and inter-
agency coordination. 
‘‘(b) SPECIAL RULE.—In cases where the cost limits 
described in subsection (a) are too restrictive to allow for 
adequate planning, administration, personnel 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. 
‘‘Subtitle D—GENERAL 
PROVISIONS 
‘‘SEC. 241. ADMINISTRATIVE PROVISIONS. 
‘‘Funds made available for adult education and fam-
ily literacy education programs under this title shall sup-
plement and not supplant other State or local public funds 
expended for adult education and family literacy education 
programs. 
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172 
‘‘SEC. 242. NATIONAL ACTIVITIES. 
‘‘The Secretary shall establish and carry out a pro-
gram of national activities that may include the following: 
‘‘(1) Providing technical assistance to eligible 
entities, on request, to— 
‘‘(A) improve their fiscal management, re-
search-based instruction, and reporting require-
ments to carry out the requirements of this 
title; 
‘‘(B) improve its performance on the core 
indicators of performance described in section 
136; 
‘‘(C) provide adult education professional 
development; and 
‘‘(D) use distance education and improve 
the application of technology in the classroom, 
including instruction in English language acqui-
sition for English learners. 
‘‘(2) Providing for the conduct of research on 
national literacy basic skill acquisition levels among 
adults, including the number of adult English learn-
ers functioning at different levels of reading pro-
ficiency. 
‘‘(3) Improving the coordination, efficiency, and 
effectiveness of adult education and workforce devel-
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‘‘$23,359,000 for fiscal year 2013 and each of the 
5 succeeding fiscal years’’; 
(11) in section 727 (29 U.S.C. 796f–6), by 
striking ‘‘such sums as may be necessary for each of 
the fiscal years 1999 through 2003’’ and inserting 
‘‘$79,953,000 for fiscal year 2013 and each of the 
5 succeeding fiscal years’’; and 
(12) in section 753 (29 U.S.C. 7961), by strik-
ing ‘‘such sums as may be necessary for each of the 
fiscal years 1999 through 2003’’ and inserting 
‘‘$34,018,000 for fiscal year 2013 and each of the 
5 succeeding fiscal years’’. 
SEC. 514. CONFORMING AMENDMENTS. 
Section 1(b) of the Rehabilitation Act of 1973 is 
amended— 
(1) by inserting after the item relating to sec-
tion 109 the following: 
‘‘Sec. 109A. Collaboration with industry.’’; 
(2) by inserting after the item relating to sec-
tion 110 the following: 
‘‘Sec. 110A. Reservation for expanded transition services.’’; 
(3) by striking the item related to section 304 
and inserting the following: 
‘‘Sec. 304. Measuring of project outcomes and performance.’’; 
(4) by striking the items related to sections 305 
and 306; and 
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(5) by striking the items related to title VI. 
Æ 
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