I 
111TH CONGRESS 
1ST SESSION H. R. 4271 
To reform and strengthen the workforce investment system of the Nation 
to put Americans back to work and make the United States more 
competitive in the 21st Century. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 10, 2009 
Mr. GUTHRIE (for himself, Mr. MCKEON, Mr. SOUDER, Mr. WILSON of South 
Carolina, Mr. HUNTER, and Mr. ROE of Tennessee) introduced the fol-
lowing bill; which was referred to the Committee on Education and Labor 
A BILL 
To reform and strengthen the workforce investment system 
of the Nation to put Americans back to work and make 
the United States more competitive in the 21st Century. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Workforce Investment 
Improvement Act of 2009’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. References. 
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TITLE I—AMENDMENTS TO TITLE I OF THE WORKFORCE 
INVESTMENT ACT OF 1998 
Sec. 101. Definitions. 
Sec. 102. Purpose. 
Sec. 103. State workforce investment boards. 
Sec. 104. State plan. 
Sec. 105. Local workforce investment areas. 
Sec. 106. Local workforce investment boards. 
Sec. 107. Local plan. 
Sec. 108. Establishment of one-stop delivery systems. 
Sec. 109. Eligible providers of training services. 
Sec. 110. Eligible providers of Youth Activities. 
Sec. 111. Youth Activities. 
Sec. 112. Programs for adults and Dislocated Workers. 
Sec. 113. Performance accountability system. 
Sec. 114. Authorization of appropriations. 
Sec. 115. Job Corps. 
Sec. 116. Native American programs. 
Sec. 117. Migrant and seasonal farm worker programs. 
Sec. 118. Veterans’ workforce investment programs. 
Sec. 119. Youth challenge grants. 
Sec. 120. Technical assistance. 
Sec. 121. Demonstration, pilot, multiservice, research and multi-state projects. 
Sec. 122. Restoring State and local flexibility to create energy efficiency and re-
newable energy jobs. 
Sec. 123. Evaluations. 
Sec. 124. National dislocated worker grants. 
Sec. 125. Authorization of appropriations for national activities. 
Sec. 126. Requirements and restrictions. 
Sec. 127. Nondiscrimination. 
Sec. 128. Administrative provisions. 
Sec. 129. State legislative authority. 
Sec. 130. Workforce innovation in regional economic development. 
Sec. 131. General program requirements. 
TITLE II—ADULT EDUCATION AND FAMILY LITERACY 
EDUCATION 
Sec. 201. Table of contents. 
Sec. 202. Amendment. 
TITLE III—AMENDMENTS TO THE WAGNER–PEYSER ACT 
Sec. 301. Amendments to the Wagner-Peyser Act. 
TITLE IV—AMENDMENTS TO THE REHABILITATION ACT OF 1973 
Sec. 401. Findings. 
Sec. 402. Rehabilitation Services Administration. 
Sec. 403. Director. 
Sec. 404. Definitions. 
Sec. 405. State plan. 
Sec. 406. Scope of services. 
Sec. 407. Standards and indicators. 
Sec. 408. Reservation for expanded transition services. 
Sec. 409. Client assistance program. 
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Sec. 410. Protection and advocacy of individual rights. 
Sec. 411. Chairperson. 
Sec. 412. Authorizations of appropriations. 
Sec. 413. Conforming amendment. 
Sec. 414. Helen Keller National Center Act. 
TITLE V—TRANSITION AND EFFECTIVE DATE 
Sec. 501. Transition provisions. 
Sec. 502. Effective date. 
SEC. 3. REFERENCES. 
Except as otherwise expressly provided, wherever in 
this Act an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the amendment or repeal shall be considered to be 
made to a section or other provision of the Workforce In-
vestment Act of 1998 (20 U.S.C. 9201 et seq.). 
TITLE 
I—AMENDMENTS 
TO 
TITLE I OF THE WORKFORCE 
INVESTMENT ACT OF 1998 
SEC. 101. DEFINITIONS. 
Section 101 (29 U.S.C. 2801) is amended— 
(1) by striking paragraphs (13) and (24) and 
redesignating paragraphs (1) through (12) as para-
graphs (3) through (14), and paragraphs (14) 
through (23) as paragraphs (15) through (24), re-
spectively; 
(2) by inserting after ‘‘In this title:’’ the fol-
lowing new paragraphs: 
‘‘(1) ACCRUED EXPENDITURES.—The term ‘ac-
crued expenditures’ means charges incurred by re-
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cipients of funds under this title for a given period 
requiring the provision of funds for goods or other 
tangible property received; services performed by 
employees, contractors, subgrantees, subcontractors, 
and other payees; and other amounts becoming owed 
under programs assisted under this title for which 
no current services or performance is required, such 
as annuities, insurance claims, and other benefit 
payments. 
‘‘(2) ADMINISTRATIVE COSTS.—The term ‘ad-
ministrative costs’ means expenditures incurred by 
State and local workforce investment boards, direct 
recipients (including State grant recipients under 
subtitle B and recipients of awards under subtitle 
D), local grant recipients, local fiscal agents or local 
grant subrecipients, and one-stop operators in the 
performance of administrative functions and in car-
rying out activities under this title which are not re-
lated to the direct provision of workforce investment 
services (including services to participants and em-
ployers). Such costs include both personnel and non- 
personnel and both direct and indirect.’’; 
(3) by amending paragraph (5) (as so redesig-
nated) to read as follows: 
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‘‘(5) AREA
CAREER
AND
TECHNICAL
EDU-
CATION SCHOOL.—The term ‘area career and tech-
nical education school’ has the meaning given the 
term in section 3(3) of the Carl D. Perkins Career 
and Technical Education Act of 2006 (20 U.S.C. 
2302(3)).’’. 
(4) in paragraph (6) (as so redesignated), by 
inserting ‘‘(or such other level as the Governor may 
establish)’’ after ‘‘8th grade level’’; 
(5) in paragraph (10)(C) (as so redesignated), 
by striking ‘‘not less than 50 percent of the cost of 
the training’’ and inserting ‘‘a significant portion of 
the cost of training, as determined by the local 
board (or, in the case of an employer in multiple 
local areas in the State, as determined by the Gov-
ernor), taking into account the size of the employer 
and such other factors as the local board determines 
to be appropriate’’; 
(6) in paragraph (11) (as so redesignated)— 
(A) in subparagraph (A)(ii)(II), by striking 
‘‘section 
134(c)’’ 
and 
inserting 
‘‘section 
121(e)’’; 
(B) in subparagraph (B)(iii), by striking 
‘‘intensive 
services 
described 
in 
section 
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134(d)(3)’’ and inserting ‘‘work ready services 
described in section 134(c)(2)’’; 
(C) in subparagraph (C), by striking ‘‘or’’ 
after the semicolon; 
(D) in subparagraph (D), by striking the 
period and inserting ‘‘; or’’; and 
(E) by adding at the end the following: 
‘‘(E)(i) is the spouse of a member of the 
Armed Forces on active duty for a period of 
more than 30 days (as defined in section 
101(d)(2) of title 10, United States Code) who 
has experienced a loss of employment as a di-
rect result of relocation to accommodate a per-
manent change in duty station of such member; 
or 
‘‘(ii) is the spouse of a member of the 
Armed Forces on active duty who meets the cri-
teria described in paragraph (12)(B).’’; 
(7) in paragraph (12)(A) (as redesignated)— 
(A) by striking ‘‘and’’ after the semicolon 
and inserting ‘‘or’’; 
(B) by striking ‘‘(A)’’ and inserting 
‘‘(A)(i)’’; and 
(C) by adding at the end the following: 
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‘‘(ii) is the dependent spouse of a member 
of the Armed Forces on active duty for a period 
of more than 30 days (as defined in section 
101(d)(2) of title 10, United States Code) 
whose family income is significantly reduced be-
cause of a deployment (as defined in section 
991(b) of title 10, United States Code, or pur-
suant to paragraph (4) of such section), a call 
or order to active duty pursuant to a provision 
of law referred to in section 101(a)(13)(B) of 
title 10, United States Code, a permanent 
change of station, or the service-connected (as 
defined in section 101(16) of title 38, United 
States Code) death or disability of the member; 
and’’; 
(8) in paragraph (13) (as so redesignated), by 
inserting ‘‘or regional’’ after ‘‘local’’ each place it 
appears; 
(9) in paragraph (14) (as so redesignated)— 
(A) in subparagraph (A), by striking ‘‘sec-
tion 122(e)(3)’’ and inserting ‘‘section 122’’; 
and 
(B) by striking subparagraph (B), and in-
serting the following: 
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‘‘(B) work ready services, means a provider 
who is identified or awarded a contract as de-
scribed in section 134(c)(2);’’; 
(10) in paragraph (25)— 
(A) in subparagraph (B), by striking 
‘‘higher of—’’ and all that follows through 
clause (ii) and inserting ‘‘poverty line for an 
equivalent period;’’; and 
(B) by redesignating subparagraphs (D) 
through (F) as subparagraphs (E) through (G), 
respectively, and inserting after subparagraph 
(C) the following: 
‘‘(D) receives or is eligible to receive free 
or reduced price lunch under the Richard B. 
Russell National School Lunch Act (42 U.S.C. 
1751 et seq.);’’; 
(11) in paragraph (32) by striking ‘‘the Repub-
lic of the Marshall Islands, the Federated States of 
Micronesia,’’; 
(12) by striking paragraph (33) and redesig-
nating paragraphs (34) through (53) as paragraphs 
(33) through (52), respectively; 
(13) by amending paragraph (48) (as so redes-
ignated) to read as follows: 
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‘‘(48) VETERAN.—The term ‘veteran’ has the 
same meaning given the term in section 2108(1) of 
title 5, United States Code.’’; and 
(14) by amending paragraph (49) (as so redes-
ignated) to read as follows: 
‘‘(49) CAREER AND TECHNICAL EDUCATION.— 
The term ‘career and technical education’ has the 
meaning given the term in section 3 of the Carl D. 
Perkins Career and Technical Education Act of 
2006 (20 U.S.C. 2302).’’. 
SEC. 102. PURPOSE. 
Section 106 (29 U.S.C. 2811) is amended by insert-
ing at the end the following: ‘‘It is also the purpose of 
this subtitle to provide workforce investment activities in 
a manner that promotes the informed choice of partici-
pants and actively involves participants in obtaining train-
ing services that will increase their skills and improve their 
employment outcomes.’’. 
SEC. 103. STATE WORKFORCE INVESTMENT BOARDS. 
(a) MEMBERSHIP.— 
(1) IN GENERAL.—Section 111(b) (29 U.S.C. 
2821(b)) is amended— 
(A) by amending paragraph (1)(C) to read 
as follows: 
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‘‘(C) representatives appointed by the Gov-
ernor, who are— 
‘‘(i)(I) the lead State agency officials 
with responsibility for the programs and 
activities that are described in section 
121(b) and carried out by one-stop part-
ners; 
‘‘(II) in any case in which no lead 
State agency official has responsibility for 
such a program or activity, a representa-
tive in the State with expertise relating to 
such program or activity; and 
‘‘(III) if not included under subclause 
(I), the director of the State unit, defined 
in section 7(8)(B) of the Rehabilitation 
Act of 1973 (29 U.S.C. 705(8)(B)) except 
that in a State that has established 2 or 
more designated State units to administer 
the vocational rehabilitation program, the 
board representative shall be the director 
of the designated State unit that serves the 
most individuals with disabilities in the 
State; 
‘‘(ii) the State agency officials respon-
sible for economic development; 
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‘‘(iii) representatives of business in 
the State who— 
‘‘(I) are owners of businesses, 
chief executive or operating officers of 
businesses, and other business execu-
tives or employers with optimum pol-
icy making or hiring authority, includ-
ing members of local boards described 
in section 117(b)(2)(A)(i); 
‘‘(II) represent businesses with 
employment opportunities that reflect 
employment 
opportunities 
in 
the 
State; and 
‘‘(III) are appointed from among 
individuals nominated by State busi-
ness organizations and business trade 
associations; 
‘‘(iv) chief elected officials (rep-
resenting both cities and counties, where 
appropriate); 
‘‘(v) one or more representatives of 
labor organizations, who have been nomi-
nated by State labor federations or labor 
organizations within the State; and 
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‘‘(vi) such other representatives and 
State agency officials as the Governor may 
designate.’’; 
(B) in paragraph (3), by striking ‘‘para-
graph (1)(C)(i)’’ and inserting ‘‘paragraph 
(1)(C)(iii)’’; and 
(C) by adding at the end the following: 
‘‘(4) QUORUM.—A majority of the members of 
the State Board who are representatives described in 
paragraph (1)(C)(iii) shall be present to constitute a 
quorum. The Board may hold hearings without a 
quorum, but any recommendation of the Board may 
be passed only at a meeting for which there is a 
quorum present.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
111(c) (29 U.S.C. 2811(c)) is amended by striking 
‘‘subsection (b)(1)(C)(i)’’ and inserting ‘‘subsection 
(b)(1)(C)(iii)’’. 
(b) 
FUNCTIONS.—Section 
111(d) 
(29 
U.S.C. 
2811(d)) is amended— 
(1) in paragraph (2), by striking ‘‘section 
134(c)’’ and inserting ‘‘section 121(e)’’; 
(2) by amending paragraph (3) to read as fol-
lows: 
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‘‘(3) development and review of statewide poli-
cies affecting the integrated provision of services 
through the one-stop delivery system described in 
section 121 within the State, including— 
‘‘(A) the development of objective criteria 
and procedures for, and the issuance of, certifi-
cations of one-stop centers; 
‘‘(B) the criteria for the allocation of one- 
stop center infrastructure funding under section 
121(h) and oversight of the use of such funds; 
‘‘(C) policies relating to the appropriate 
roles and contributions of one-stop partner pro-
grams within the one-stop delivery system, in-
cluding approaches to facilitating equitable and 
efficient cost allocation in the one-stop delivery 
system, consistent with section 121; 
‘‘(D) strategies for providing effective out-
reach to individuals and employers who could 
benefit from services provided through the one- 
stop delivery system; 
‘‘(E) strategies for technology improve-
ments to facilitate access to services provided 
through the one-stop delivery system in remote 
areas and for individuals with disabilities, which 
may be utilized throughout the State; 
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‘‘(F) identification and dissemination of in-
formation on best practices for effective oper-
ation of one-stop centers, including use of inno-
vative business outreach, partnerships, and 
service delivery strategies, including for hard-to- 
serve populations; and 
‘‘(G) carrying out of such other matters as 
may promote statewide objectives for, and en-
hance the performance of, the one-stop delivery 
system;’’; 
(3) in paragraph (5), by striking ‘‘128(b)(3)(B) 
and 133(b)(3)(B)’’ and inserting ‘‘sections 128(b)(3) 
and 133(b)(3)’’; 
(4) in paragraph (8)— 
(A) by striking ‘‘employment statistics sys-
tem’’ and inserting ‘‘workforce and labor mar-
ket information system’’; and 
(B) by striking ‘‘and’’ after the semicolon; 
(5) in paragraph (9)— 
(A) by striking ‘‘section 503’’ and insert-
ing ‘‘section 136(i)’’; and 
(B) by striking the period and inserting ‘‘; 
and’’; and 
(6) by inserting the following new paragraph 
after paragraph (9): 
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‘‘(10) reviewing and providing comment on the 
State plans of all one-stop partner programs, where 
applicable, in order to provide effective strategic 
leadership in the development of a high-quality, com-
prehensive statewide workforce investment system.’’. 
(c) ALTERNATIVE
ENTITY.—Section 111(e) (29 
U.S.C. 2821(e)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘For’’ and inserting ‘‘Subject 
to paragraph (3), for’’; and 
(B) in subparagraph (C), by inserting ‘‘one 
or more’’ after ‘‘State and’’; and 
(2) by adding at the end the following: 
‘‘(3) FAILURE TO MEET PERFORMANCE MEAS-
URES.—If a State fails to have performed success-
fully, as defined in section 116(a)(2), the Secretary 
may require the State to establish a State board in 
accordance with subsections (a), (b), and (c) in lieu 
of the alternative entity established under paragraph 
(1).’’. 
(d) CONFLICT OF INTEREST.—Section 111(f)(1) (29 
U.S.C. 2821(f)(1)) is amended by inserting ‘‘or participate 
in action taken’’ after ‘‘vote’’. 
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(e) SUNSHINE
PROVISION.—Section 111(g) (29 
U.S.C. 2821(g)) is amended— 
(1) by inserting ‘‘, and modifications to the 
State plan,’’ after ‘‘State plan’’; and 
(2) by inserting ‘‘, and modifications to the 
State plan’’ after ‘‘the plan’’. 
(f) AUTHORITY TO HIRE STAFF.—Section 111 (29 
U.S.C. 2821) is further amended by inserting at the end 
the following: 
‘‘(h) AUTHORITY TO HIRE STAFF.—The State Board 
may hire staff to assist in carrying out the functions de-
scribed in subsection (d).’’. 
SEC. 104. STATE PLAN. 
(a) PLANNING CYCLE.—Section 112(a) (29 U.S.C. 
2822(a)) is amended by striking ‘‘5-year strategy’’ and in-
serting ‘‘2-year strategy’’. 
(b) CONTENTS.—Section 112(b) (29 U.S.C. 2822(b)) 
is amended— 
(1) by amending paragraph (7) to read as fol-
lows: 
‘‘(7) a description of the State criteria for de-
termining the eligibility of training providers in ac-
cordance with section 122, including how the State 
will take into account the performance of providers 
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and whether the training programs relate to occupa-
tions that are in demand;’’; 
(2) in paragraph (8)— 
(A) in subparagraph (A)— 
(i) in clause (ix), by striking ‘‘and’’ 
after the semicolon; and 
(ii) by adding the following new clause 
after clause (x): 
‘‘(xi) programs authorized under title 
II of the Social Security Act (42 U.S.C. 
401 et seq.) (related to Federal old-age, 
survivors, and disability insurance bene-
fits), title XVI of such Act (42 U.S.C. 
1381 et seq.) (relating to supplemental se-
curity income), title XIX of such Act (42 
U.S.C. 1396 et seq.) (relating to Med-
icaid), and title XX of such Act (42 U.S.C. 
1397 et seq.) (relating to block grants to 
States for social services), programs au-
thorized under title VII of the Rehabilita-
tion Act of 1973 (29 U.S.C. 796 et seq.), 
and programs carried out by State agen-
cies relating to mental retardation and de-
velopmental disabilities; and’’; and 
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(B) by amending subparagraph (B) to read 
as follows: 
‘‘(B) a description of common data collec-
tion and reporting processes used for the pro-
grams and activities described in subparagraph 
(A) that are one-stop partners, including assur-
ances that such processes utilize quarterly wage 
records for performance measures relating to 
entry into employment, retention in employ-
ment, and average earnings that are applicable 
to such programs or activities, or, if such 
records are not being used, an identification of 
the barriers to such use and a description of 
how the State will address such barriers within 
one year of the approval of the plan;’’; 
(3) in paragraph (11), by inserting ‘‘, including 
controls and procedures to ensure that the limita-
tions on the costs of administration are not exceed-
ed’’; 
(4) in paragraph (12)(A)— 
(A) by striking ‘‘sections 128(b)(3)(B) and 
133(b)(3)(B)’’ 
and 
inserting 
‘‘sections 
128(b)(3) and 133(b)(3)’’; and 
(B) by inserting ‘‘and’’ at the end of clause 
(ii); 
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(5) in paragraph (12)(B), by striking ‘‘and’’ at 
the end; 
(6) by striking paragraph (12)(C); 
(7) in paragraph (14), by striking ‘‘section 
134(c)’’ and inserting ‘‘section 121(e)’’; 
(8) in paragraph (17)(A)— 
(A) in clause (iii) by striking ‘‘and’’; 
(B) by amending clause (iv) to read as fol-
lows: 
‘‘(iv) how the State will serve the em-
ployment and training needs of dislocated 
workers (including displaced homemakers), 
low income individuals (including recipients 
of public assistance), individuals with lim-
ited English proficiency, homeless individ-
uals, individuals training for nontraditional 
employment, and other individuals with 
multiple barriers to employment (including 
older individuals); and’’; and 
(C) by inserting after clause (iv) the fol-
lowing: 
‘‘(v) how the State will serve the em-
ployment and training needs of individuals 
with disabilities, consistent with section 
188 and Executive Order 13217 (42 
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U.S.C. 12131 note; relating to community- 
based alternatives for individuals with dis-
abilities) including the provision of out-
reach, intake, assessments, and service de-
livery, the development of performance 
measures established under section 136, 
the training of staff, and other aspects of 
accessibility to program services, consistent 
with sections 504 and 508 of the Rehabili-
tation Act of 1973; and’’; 
(9) in paragraph (17)(B), by striking ‘‘to the 
extent practicable’’ and inserting ‘‘in accordance 
with the requirements of the Jobs for Veterans Act 
(Public Law 107–288)’’; 
(10) in paragraph (18)(D), by striking ‘‘youth 
opportunity grants’’ and inserting ‘‘youth challenge 
grants’’; and 
(11) by adding at the end the following new 
paragraphs: 
‘‘(19) a description of the process and method-
ology for determining one-stop partner program con-
tributions for the cost of the infrastructure of one- 
stop centers under section 121(h)(1) and of the for-
mula for allocating such infrastructure funds to local 
areas under section 121(h)(3); 
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‘‘(20) a description of the strategies and pro-
grams providing outreach to businesses, identifying 
workforce needs of businesses in the State, and en-
suring that such needs will be met (including the 
needs of small businesses), which may include— 
‘‘(A) implementing innovative programs 
and strategies designed to meet the needs of all 
businesses in the State, including small busi-
nesses, which may include incumbent worker 
training programs, sectoral and industry cluster 
strategies, regional skills alliances, career ladder 
programs, utilization of effective business inter-
mediaries, and other business services and 
strategies that better engage employers in 
workforce investment activities and make the 
statewide workforce investment system more 
relevant to the needs of State and local busi-
nesses, consistent with the objectives of this 
title; and 
‘‘(B) providing incentives and technical as-
sistance to assist local areas in more fully en-
gaging all employers, including small employers, 
in local workforce investment activities, to make 
the workforce investment system more relevant 
to the needs of area businesses, and to better 
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coordinate workforce investment, economic de-
velopment, and post-secondary education and 
training efforts to contribute to the economic 
well-being of the local area and region, as deter-
mined appropriate by the local board; 
‘‘(21) a description of how the State will utilize 
technology to facilitate access to services in remote 
areas, which may be utilized throughout the State; 
‘‘(22) a description of the State strategy and 
assistance to be provided for encouraging regional 
cooperation within the State and across State bor-
ders as appropriate; and 
‘‘(23) a description of the actions that will be 
taken by the State to foster communication and 
partnerships with non-profit organizations (including 
community, faith-based, and philanthropic organiza-
tions) that provide employment-related, training, 
and complementary services, in order to enhance the 
quality and comprehensiveness of services available 
to participants under this title.’’. 
(c) PLAN SUBMISSION
AND APPROVAL.—Section 
112(c) (29 U.S.C. 2822(c)) is amended by striking ‘‘pe-
riod, that’’ and all that follows through paragraph (2) and 
inserting ‘‘period, that the plan is inconsistent with the 
provisions of this title’’. 
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(d) MODIFICATION TO PLAN.—Section 112(d) (29 
U.S.C. 2822(d)) is amended by striking ‘‘5-year period’’ 
and inserting ‘‘2-year period’’. 
SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS. 
(a) DESIGNATION OF AREAS.— 
(1) CONSIDERATIONS.—Section 116(a)(1) (29 
U.S.C. 2831(a)(1)) is amended— 
(A) in subparagraph (A), by striking 
‘‘paragraphs (2), (3), and (4)’’ and inserting 
‘‘paragraphs (2) and (3)’’; and 
(B) in subparagraph (B), by adding at the 
end the following: 
‘‘(vi) The extent to which such local 
areas will promote maximum effectiveness 
in the administration and provision of serv-
ices.’’. 
(2) 
AUTOMATIC
DESIGNATION.—Section 
116(a)(2) (29 U.S.C. 2831(a)(2)) is amended to 
read as follows: 
‘‘(2) AUTOMATIC DESIGNATION.— 
‘‘(A) IN
GENERAL.—The Governor shall 
approve a request for designation as a local 
area that is submitted prior to the submission 
of the State plan, or of a modification to the 
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State plan relating to area designation, from 
any area that— 
‘‘(i) is a unit of general local govern-
ment with a population of 500,000 or 
more, except that after the initial 2-year 
period following such designation pursuant 
to this clause that occurs after the date of 
enactment of the Workforce Investment 
Improvement Act of 2009, the Governor 
shall only be required to approve a request 
for designation from such area if such 
area— 
‘‘(I) performed successfully; and 
‘‘(II) sustained fiscal integrity; 
‘‘(ii) was a local area under this title 
for the preceding 2-year period, if such 
local area— 
‘‘(I) performed successfully; and 
‘‘(II) sustained fiscal integrity; 
‘‘(iii) is served by a rural concentrated 
employment program grant recipient, ex-
cept that after the initial 2-year period fol-
lowing any such designation under the ini-
tial State plan submitted after the date of 
enactment of the Workforce Investment 
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more of the adjusted level of performance 
for core indicators of performance de-
scribed in section 136(b)(2)(A) for 2 con-
secutive years. 
‘‘(ii) 
SUSTAINED
FISCAL
INTEG-
RITY.—The term ‘sustained fiscal integ-
rity’, used with respect to an area, means 
that the Secretary has not made a formal 
determination during the preceding 2-year 
period that either the grant recipient or 
the administrative entity of the area mis- 
expended funds provided under this title 
due to willful disregard of the requirements 
of the Act involved, gross negligence, or 
failure to comply with accepted standards 
of administration.’’. 
(3) 
CONFORMING
AMENDMENTS.—Section 
116(a) (29 U.S.C. 2831(a)) is amended— 
(A) by striking paragraph (3); and 
(B) by redesignating paragraphs (4) and 
(5) as paragraph (3) and (4), respectively. 
(b) SINGLE LOCAL AREA STATES.—Section 116(b) 
(29 U.S.C. 2831(b)) is amended to read as follows: 
‘‘(b) SINGLE LOCAL AREA STATES.— 
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‘‘(1) CONTINUATION
OF
PREVIOUS
DESIGNA-
TION.—Notwithstanding subsection (a), the Gov-
ernor of any State that was a single local area for 
purposes of this title as of December 1, 2009, may 
continue to designate the State as a single local area 
for purposes of this title if the Governor identifies 
the State as a local area in the State plan under sec-
tion 112(b)(5). 
‘‘(2) NEW DESIGNATION.—The Governor of a 
State not described in paragraph (1) may designate 
the State as a single local area if, prior to the sub-
mission of the State plan or modification to such 
plan so designating the State, no local area meeting 
the requirements for automatic designation under 
subsection (a) requests such designation as a sepa-
rate local area. 
‘‘(3) EFFECT ON LOCAL PLAN.—In any case in 
which the local area is the State pursuant to this 
subsection, the local plan under section 118 shall be 
submitted to the Secretary for approval as part of 
the State plan under section 112.’’. 
(c) REGIONAL
PLANNING.—Section 116(c) (29 
U.S.C. 2831(c)) is amended— 
(1) in paragraph (1), by adding at the end the 
following: ‘‘The State may require the local boards 
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for the designated region to prepare a single regional 
plan that incorporates the elements of the local plan 
under section 118 and that is submitted and ap-
proved in lieu of separate local plans under such sec-
tion.’’; and 
(2) in paragraph (2), by striking ‘‘employment 
statistics’’ and inserting ‘‘workforce and labor mar-
ket information’’. 
SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS. 
(a) COMPOSITION.—Section 117(b)(2) (29 U.S.C. 
2832(b)(2)) is amended— 
(1) in subparagraph (A)— 
(A) in clause (i)(II), by inserting ‘‘, busi-
nesses that are in the leading industries in the 
local area, and large and small businesses in 
the local area’’ after ‘‘local area’’; 
(B) by amending clause (ii) to read as fol-
lows: 
‘‘(ii) a superintendent of the local sec-
ondary school system, the president or 
chief executive officer of a post-secondary 
educational institution (including commu-
nity colleges, where such entities exist), 
and an administrator of local entities pro-
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viding adult education and literacy activi-
ties;’’; 
(C) in clause (iii)— 
(i) by striking ‘‘representatives’’ and 
inserting ‘‘one or more representatives’’; 
and 
(ii) by inserting ‘‘or by labor organiza-
tions in the local area’’ after ‘‘federations’’; 
(D) in clause (iv)— 
(i) by striking ‘‘representatives’’ and 
inserting ‘‘one or more representatives’’; 
and 
(ii) by striking the semicolon and in-
serting ‘‘and faith-based organizations; 
and’’; 
(E) in clause (v) by inserting ‘‘one or 
more’’ before ‘‘representatives’’; and 
(F) by striking clause (vi); 
(2) in subparagraph (B), by striking the period 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following subpara-
graph: 
‘‘(C) except for the individuals described in 
subparagraph (A)(ii), shall not include any indi-
vidual who is employed by an entity receiving 
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funds for the provision of services under chap-
ters 4 or 5.’’. 
(b) AUTHORITY
OF
BOARD
MEMBERS.—Section 
117(b)(3) (29 U.S.C. 2832(b) is amended— 
(1) in the heading, by inserting ‘‘AND REP-
RESENTATION’’ after ‘‘MEMBERS’’; and 
(2) by adding at the end the following: 
‘‘(6) QUORUM.—A majority of the members of 
the local board who are representatives described in 
paragraph (1)(A)(i) shall be present to constitute a 
quorum. The Board may hold hearings without a 
quorum, but any recommendation of the Board may 
be passed only at a meeting for which there is a 
quorum present.’’. 
(c) 
FUNCTIONS.—Section 
117(d) 
(29 
U.S.C. 
2832(d)) is amended— 
(1) in paragraph (2)(B), by striking ‘‘by award-
ing grants’’ and all that follows through ‘‘youth 
council’’; 
(2) by striking paragraph (2)(D) and inserting 
the following: 
‘‘(D) IDENTIFICATION OF ELIGIBLE PRO-
VIDERS
OF
WORK
READY
SERVICES.—If the 
one-stop operator does not provide the work 
ready services described in section 134(c)(2) in 
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the local area, the local board shall identify eli-
gible providers of such services in the local area 
by awarding contracts.’’; 
(3) in paragraph (3)(B) by striking clause (ii) 
and inserting the following: 
‘‘(ii) STAFF.—The local board may 
employ staff to assist in carrying out the 
functions described in this subsection.’’; 
(4) in paragraph (4) by inserting ‘‘, and ensure 
the appropriate use and management of the funds 
provided under this title for such programs, activi-
ties, and system’’ after ‘‘area’’; 
(5) in paragraph (6)— 
(A) by striking ‘‘EMPLOYMENT STATISTICS 
SYSTEM’’ and inserting ‘‘WORKFORCE
AND 
LABOR MARKET INFORMATION SYSTEM’’; and 
(B) by striking ‘‘employment statistics sys-
tem’’ and inserting ‘‘workforce and labor mar-
ket information system’’; 
(6) by amending paragraph (8) to read as fol-
lows: 
‘‘(8) 
CONVENING, 
BROKERING, 
AND 
LEVERAGING.—The local board shall support a com-
prehensive workforce investment system for the local 
area and promote the participation by private sector 
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employers, service providers, and other stakeholders 
in such system. The Board shall ensure the effective 
provision, 
through 
the 
system, 
of 
convening, 
brokering, and leveraging activities, through inter-
mediaries such as the one-stop operator in the local 
area or through other organizations, to assist such 
employers in meeting hiring needs. Such activities 
may include— 
‘‘(A) convening private sector employers, 
including small employers, labor, economic de-
velopment, and education leaders in the area to 
align system missions and services, and to iden-
tify and meet the employment, education, and 
skills training needs of the local area in support 
of regional and local economic growth strate-
gies; 
‘‘(B) providing leadership in the design 
and implementation of a comprehensive work-
force development system that extends beyond 
those programs authorized under title I of this 
Act (including programs identified in section 
121(b)) for the local area; 
‘‘(C) brokering relationships and service 
arrangements across system stakeholders and 
partners; and 
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‘‘(D) leveraging resources other than those 
provided under title I of this Act, including 
public and private resources, to significantly ex-
pand resources available for employment and 
training activities identified as necessary in the 
local area.’’; and 
(7) by adding at the end the following: 
‘‘(9) TECHNOLOGY IMPROVEMENTS.—The local 
board shall develop strategies for technology im-
provements to facilitate access to services, in remote 
areas, for services authorized under this subtitle and 
carried out in the local area.’’. 
(d) 
LIMITATIONS.—Section 
117(f) 
(29 
U.S.C. 
2832(f)) is amended by striking paragraph (2) and insert-
ing the following: 
‘‘(2) WORK READY SERVICES, DESIGNATION, OR 
CERTIFICATION AS ONE-STOP OPERATORS.—A local 
board may provide work ready services described in 
section 134(c)(2) through a one-stop delivery system 
described in section 121 or be designated or certified 
as a one-stop operator only with the agreement of 
the chief elected official and the Governor.’’. 
(e) CONFLICT OF INTEREST.—Section 117(g)(1) (29 
U.S.C. 2832(g)(1)) is amended by inserting ‘‘or partici-
pate in action taken’’ after ‘‘vote’’. 
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(f) AUTHORITY
TO
ESTABLISH
COUNCILS
AND 
ELIMINATION
OF REQUIREMENT
FOR YOUTH COUN-
CILS.—Section 117(h) (29 U.S.C. 2832(h)) is amended to 
read as follows: 
‘‘(h) ESTABLISHMENT
OF COUNCILS.—The local 
board may establish councils to provide information and 
advice to assist the local board in carrying out activities 
under this title. Such councils may include a council com-
posed of one-stop partners to advise the local board on 
the operation of the one-stop delivery system, a youth 
council composed of experts and stakeholders in youth 
programs to advise the local board on activities for youth, 
and such other councils as the local board determines are 
appropriate.’’. 
(g) ALTERNATIVE ENTITY PROVISION.—Section 117 
(29 U.S.C. 2832) is amended— 
(1) in subsection (c)(1)(C), by striking ‘‘section 
116(a)(2)(B)’’ 
and 
inserting 
‘‘section 
116(a)(2)(A)(iii)’’; 
(2) in subsection (f)(1)(A), by striking ‘‘section 
134(d)(4)’’ and inserting ‘‘section 134(c)(4)’’; 
(3) in subsection (i)(1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘, and paragraphs (1) and (2) 
of subsection (h),’’; 
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(B) by striking subparagraph (B) and in-
serting the following: 
‘‘(B) was in existence on August 7, 1998, 
pursuant to State law; and’’; 
(C) by striking subparagraph (C); 
(D) by redesignating subparagraph (D) as 
subparagraph (C); and 
(E) in subparagraph (C) (as redesignated), 
by inserting ‘‘one or more’’ before ‘‘representa-
tives’’. 
SEC. 107. LOCAL PLAN. 
(a) PLANNING CYCLE.—Section 118(a) (29 U.S.C. 
2833(a)) is amended by striking ‘‘5-year’’ and inserting 
‘‘2-year’’. 
(b) CONTENTS.—Section 118(b) (29 U.S.C. 2833(b)) 
is amended— 
(1) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) a description of the one-stop delivery sys-
tem to be established or designated in the local area, 
including a description of how the local board will 
ensure the continuous improvement of eligible pro-
viders of services through the system and ensure 
that such providers meet the employment needs of 
local employers and participants;’’; 
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(2) in paragraph (4), by inserting before the 
semicolon ‘‘, including a description of how the local 
area will implement the requirements of section 
134(c)(4)(G) relating to ensuring that training serv-
ices are linked to occupations that are in demand’’; 
(3) in paragraph (5), by striking ‘‘statewide 
rapid response activities’’ and inserting ‘‘statewide 
activities’’; 
(4) in paragraph (9), by striking ‘‘; and’’ and 
inserting a semicolon; and 
(5) by redesignating paragraph (10) as para-
graph (13) and inserting after paragraph (9) the fol-
lowing: 
‘‘(10) a description of the strategies and serv-
ices that will be initiated in the local area to more 
fully engage all employers, including small employ-
ers, in workforce investment activities, to make the 
workforce investment system more relevant to the 
needs of area businesses, and to better coordinate 
workforce investment and economic development ef-
forts, which may include the implementation of inno-
vative initiatives such as incumbent worker training 
programs, sectoral and industry cluster strategies, 
regional skills alliance initiatives, career ladder pro-
grams, utilization of effective business inter-
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mediaries, and other business services and strategies 
designed to meet the needs of area employers and 
contribute to the economic well-being of the local 
area, as determined appropriate by the local board, 
consistent with the objectives of this title; 
‘‘(11) a description of how the local board will 
facilitate access to services provided through the 
one-stop delivery system involved in remote areas, 
including facilitating access through the use of tech-
nology, as appropriate; 
‘‘(12) how the local area will serve the employ-
ment and training needs of individuals with disabil-
ities, consistent with section 188 and Executive 
Order 13217 (42 U.S.C. 12131 note) including the 
provision of outreach, intake, assessments, and serv-
ice delivery, the development of performance meas-
ures, the training of staff, and other aspects of ac-
cessibility to program services, consistent with sec-
tions 504 and 508 of the Rehabilitation Act of 1973; 
and’’. 
SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYS-
TEMS. 
(a) ONE-STOP PARTNERS.— 
(1) REQUIRED PARTNERS.—Section 121(b)(1) 
(29 U.S.C. 2841(b)(1)) is amended— 
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(A) by striking subparagraph (A) and in-
serting the following: 
‘‘(A) ROLES
AND
RESPONSIBILITIES
OF 
ONE-STOP PARTNERS.—Each entity that carries 
out a program or activities described in sub-
paragraph (B) shall— 
‘‘(i) provide access through the one- 
stop delivery system to the programs and 
activities carried out by the entity, includ-
ing making the work ready services de-
scribed in section 134(c)(2) that are appli-
cable to the program of the entity available 
at the one-stop centers (in addition to any 
other appropriate locations); 
‘‘(ii) use a portion of the funds avail-
able to the program of the entity to main-
tain the one-stop delivery system, including 
payment of the infrastructure costs of one- 
stop centers in accordance with subsection 
(h); 
‘‘(iii) enter into a local memorandum 
of understanding with the local board re-
lating to the operation of the one-stop sys-
tem that meets the requirements of sub-
section (c); 
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‘‘(iv) participate in the operation of 
the one-stop system consistent with the 
terms of the memorandum of under-
standing, the requirements of this title, 
and the requirements of the Federal laws 
authorizing the programs carried out by 
the entity; and 
‘‘(v) provide representation on the 
State board to the extent provided under 
section 111.’’; 
(B) in subparagraph (B)— 
(i) by striking clauses (ii) and (v); 
(ii) by redesignating clauses (iii) and 
(iv) as clauses (ii) and (iii), respectively, 
and by redesignating clauses (vi) through 
(xii) as clauses (iv) through (x), respec-
tively; 
(iii) in clause (ix) (as so redesig-
nated), by striking ‘‘and’’ at the end; 
(iv) in clause (x) (as so redesignated), 
by striking the period and inserting ‘‘; 
and’’; and 
(v) by inserting after clause (x)(as so 
redesignated) the following: 
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‘‘(xi) programs authorized under part 
A of title IV of the Social Security Act (42 
U.S.C. 601 et seq.), subject to subpara-
graph (C); and 
‘‘(xii) programs authorized under sec-
tion 6(d)(4) of the Food Stamp Act of 
1977 (7 U.S.C. 2015(d)(4)), subject to 
subparagraph (C).’’; and 
(C) by adding after subparagraph (B) the 
following: 
‘‘(C) 
DETERMINATION
BY
THE
GOV-
ERNOR.—The program referred to in clauses 
(xi) and (xii) of subparagraph (B) shall be in-
cluded as a required partner for purposes of 
this title in a State unless the Governor of the 
State notifies the Secretary and the Secretary 
of Health and Human Services (in the case of 
the program referred to in clause (xi) of sub-
paragraph (B)), or the Secretary and the Sec-
retary of Agriculture (in the case of the pro-
gram referred to in clause (xii) of subparagraph 
(B)) in writing of a determination by the Gov-
ernor not to include such programs as required 
partners for purposes of this title in the 
State.’’. 
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(2) ADDITIONAL PARTNERS.—Section 121(b)(2) 
(29 U.S.C. 2841(b)(2)) is amended— 
(A) in subparagraph (A)(i), by striking 
‘‘section 134(d)(2)’’ and inserting ‘‘section 
134(c)(2)’’; and 
(B) by amending subparagraph (B) to read 
as follows: 
‘‘(B) PROGRAMS.—The programs referred 
to in subparagraph (A) may include— 
‘‘(i) employment and training pro-
grams administered by the Social Security 
Administration, including the Ticket to 
Work program (established by Public Law 
106–170); 
‘‘(ii) employment and training pro-
grams carried out by the Small Business 
Administration; 
‘‘(iii) programs under part D of title 
IV of the Social Security Act (42 U.S.C. 
451 et seq.) (relating to child support en-
forcement); 
‘‘(iv) employment, training, and lit-
eracy services carried out by public librar-
ies; 
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‘‘(v) programs carried out in the local 
area for individuals with disabilities, in-
cluding programs carried out by State 
agencies relating to mental health, mental 
retardation, and developmental disabilities, 
State Medicaid agencies, State Inde-
pendent Living Councils, and Independent 
Living Centers; 
‘‘(vi) programs authorized under the 
National and Community Service Act of 
1990 (42 U.S.C. 1250 et seq.); 
‘‘(vii) cooperative extension programs 
carried out by the Department of Agri-
culture; and 
‘‘(viii) 
other 
appropriate 
Federal, 
State, or local programs, including pro-
grams in the private sector.’’. 
(b) LOCAL MEMORANDUM OF UNDERSTANDING.— 
Section 121(c)(2)(A) (29 U.S.C. 2841(c)(2)(A)) is amend-
ed to read as follows: 
‘‘(A) provisions describing— 
‘‘(i) the services to be provided 
through the one-stop delivery system con-
sistent with the requirements of this sec-
tion, including the manner in which the 
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services will be coordinated through such 
system; 
‘‘(ii) how the costs of such services 
and the operating costs of such system will 
be funded, through cash and in-kind con-
tributions, to provide a stable and equi-
table funding stream for ongoing one-stop 
system operations, including the funding of 
the infrastructure costs of one-stop centers 
in accordance with subsection (h); 
‘‘(iii) methods of referral of individ-
uals between the one-stop operator and the 
one-stop partners for appropriate services 
and activities; and 
‘‘(iv) the duration of the memo-
randum of understanding and the proce-
dures for amending the memorandum dur-
ing the term of the memorandum, and as-
surances that such memorandum shall be 
reviewed not less than once every 2-year 
period to ensure appropriate funding and 
delivery of services; and’’. 
(c) PROVISION
OF
SERVICES.—Section 121 (29 
U.S.C. 2841) is further amended— 
(1) in subsection (d)— 
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(A) in paragraph (2), by striking ‘‘section 
134(c)’’ and inserting ‘‘subsection (e)’’; and 
(B) in paragraph (3), by striking ‘‘voca-
tional’’ and inserting ‘‘career and technical’’; 
and 
(2) by amending subsection (e) to read as fol-
lows: 
‘‘(c) ESTABLISHMENT OF ONE-STOP DELIVERY SYS-
TEM.— 
‘‘(1) IN GENERAL.—There shall be established 
in a State that receives an allotment under section 
132(b) a one-stop delivery system, which— 
‘‘(A) shall provide the work ready services 
described in section 134(c)(2); 
‘‘(B) shall provide access to training serv-
ices as described in section 134(c), including 
serving as the point of access to career en-
hancement accounts for training services to 
participants in accordance with paragraph 
(4)(G) of such section; 
‘‘(C) shall provide access to the activities 
carried out under section 134(d), if any; 
‘‘(D) shall provide access to programs and 
activities carried out by one-stop partners and 
described in subsection (b); and 
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‘‘(II) that assures individuals 
that information on the availability of 
the work ready services will be avail-
able regardless of where the individ-
uals initially enter the statewide work-
force investment system, including in-
formation made available through an 
access point described in subclause 
(I). 
‘‘(3) SPECIALIZED CENTERS.—The centers and 
sites described in paragraph (2) may have a speciali-
zation in addressing special needs, such as the needs 
of dislocated workers.’’. 
(d) CERTIFICATION
AND FUNDING
OF ONE-STOP 
CENTERS.—Section 121 (as amended by subsections (b) 
and (c)) is further amended by adding at the end the fol-
lowing new subsections: 
‘‘(g) CERTIFICATION OF ONE-STOP CENTERS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) IN GENERAL.—The State board shall 
establish objective procedures and criteria for 
periodically certifying one-stop centers for the 
purpose of awarding the one-stop infrastructure 
funding described in subsection (h). 
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‘‘(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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‘‘(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 2009. 
‘‘(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 
2010 
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 2009) 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 2011 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 
2010, 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 
2009) that is received by the State involved for 
fiscal year 2010. 
‘‘(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 2011 or a subsequent fiscal year, 
means a percentage of the amount de-
scribed in paragraph(1)(A) that is received 
through an allocation made under this 
paragraph for the fiscal year. The term, 
with respect to fiscal year 2010, means the 
percentage of the amounts allocated to 
local areas under this chapter (as in effect 
on the day before the date of enactment of 
the Workforce Investment Improvement 
Act of 2009) that is received by the local 
area involved for fiscal year 2010. 
‘‘(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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(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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