SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Workforce Investment 
Improvement Act of 2007’’. 
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. 
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. Comprehensive programs for adults. 
Sec. 113. Performance accountability system. 
Sec. 114. Authorization of appropriations. 
Sec. 115. Job Corps. 
Sec. 116. Native American programs. 
Sec. 117. Migrant and seasonal farmworker 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. Community-Based job training. 
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, BASIC SKILLS, AND FAMILY 
LITERACY EDUCATION 
Sec. 201. Table of contents. 
Sec. 202. Amendment. 
TITLE III—AMENDMENTS TO THE WAGNER–PEYSER ACT 
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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. 
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) 
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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-
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 
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services (including services to participants and em-
ployers). Such costs include both personnel and non- 
personnel and both direct and indirect.’’; 
(3) in paragraph (6) (as so redesignated), by 
inserting ‘‘(or such other level as the Governor may 
establish)’’ after ‘‘8th grade level’’; 
(4) 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’’; and 
(5) 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 
134(d)(3)’’ and inserting ‘‘work ready services 
described in section 134(c)(3)(M) through (U)’’; 
(C) in subparagraph (C), by striking ‘‘or’’ 
after the semicolon; 
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(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).’’; 
(6) 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: 
‘‘(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-
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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’’; 
(7) in paragraph (13) (as so redesignated), by 
inserting ‘‘or regional’’ after ‘‘local’’ each place it 
appears; 
(8) 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: 
‘‘(B) work ready services, means a provider 
who is identified or awarded a contract as de-
scribed in section 134(c)(3);’’. 
(9) in paragraph (25)— 
(A) in subparagraph (B), by striking 
‘‘higher of—’’ and all that follows through 
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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.);’’; 
(10) in paragraph (32) by striking ‘‘the Repub-
lic of the Marshall Islands, the Federated States of 
Micronesia,’’; and 
(11) by striking paragraph (33) and redesig-
nating paragraphs (34) through (53) as paragraphs 
(33) through (52), respectively. 
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.’’. 
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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: 
‘‘(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 
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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; 
‘‘(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); 
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‘‘(v) one or more representatives of 
labor organizations, who have been nomi-
nated by State labor federations or labor 
organizations within the State; and 
‘‘(vi) such other representatives and 
State agency officials as the Governor may 
designate.’’; and 
(B) in paragraph (3), by striking ‘‘para-
graph (1)(C)(i)’’ and inserting ‘‘paragraph 
(1)(C)(iii)’’. 
(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: 
‘‘(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— 
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‘‘(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; and 
‘‘(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; 
‘‘(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 
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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 (4), by inserting ‘‘and the de-
velopment of State criteria relating to the appoint-
ment and certification of local boards under section 
117’’ after ‘‘section 116’’; 
(4) in paragraph (5), by striking ‘‘128(b)(3)(B) 
and 133(b)(3)(B)’’ and inserting ‘‘sections 128(b)(3) 
and 133(b)(3)’’; and 
(5) 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; 
(6) in paragraph (9)— 
(A) by striking ‘‘section 503’’ and insert-
ing ‘‘section 136(i)’’; and 
(B) by striking the period and inserting ‘‘; 
and’’; and 
(7) 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) ELIMINATION
OF ALTERNATIVE ENTITY
AND 
PROVISION
OF AUTHORITY TO HIRE STAFF.—Section 
111(e) (29 U.S.C. 2821(e)) is amended to read as follows: 
‘‘(e) AUTHORITY TO HIRE STAFF.—The State board 
may hire staff to assist in carrying out the functions de-
scribed in subsection (d).’’. 
(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’’. 
(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’’. 
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’’. 
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(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 
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; 
(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. 
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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’’; 
(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;’’; and 
(3) in paragraph (11), by inserting ‘‘, including 
controls and procedures to ensure that the limita-
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tions on the costs of administration are not exceed-
ed’’. 
(4) in paragraph (12)(A), by striking ‘‘sections 
128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec-
tions 128(b)(3) and 133(b)(3)’’; 
(5) in paragraph (14), by striking ‘‘section 
134(c)’’ and inserting ‘‘section 121(e)’’; 
(6) 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 
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with disabilities, consistent with section 
188 and Executive Order 13217 (42 
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’’; 
(7) in paragraph (17)(B), by striking ‘‘to the 
extent practicable’’ and inserting ‘‘in accordance 
with the requirements of the Jobs for Veterans Act 
(PL 107–288)’’; 
(8) in paragraph (18)(D), by striking ‘‘youth 
opportunity grants’’ and inserting ‘‘youth challenge 
grants’’; and 
(9) 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-
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mula for allocating such infrastructure funds to local 
areas under section 121(h)(3); 
‘‘(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 
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the workforce investment system more relevant 
to the needs of area businesses, and to better 
coordinate workforce investment, economic de-
velopment, and postsecondary 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) MODIFICATION TO PLAN.—Section 112(d) (29 
U.S.C. 2822(d)) is amended by striking ‘‘5-year period’’ 
and inserting ‘‘2-year period’’. 
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SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS. 
(a) DESIGNATION OF AREAS.— 
(1) CONSIDERATIONS.—Section 116(a)(1)(B) 
(29 U.S.C. 2831(a)(1)(B)) is amended by adding at 
the end the following clause: 
‘‘(vi) The extent to which such local 
areas will promote efficiency in the admin-
istration and provision of services.’’. 
(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.—Except as provided in 
subparagraph (B) of this paragraph and sub-
section (b), the Governor shall approve a re-
quest for designation as a local area from— 
‘‘(i) any unit of general local govern-
ment with a population of 500,000 or 
more; and 
‘‘(ii) an area served by a rural con-
centrated employment program grant re-
cipient that served as a service delivery 
area or substate area under the Job Train-
ing Partnership Act (29 U.S.C. 1501 et 
seq.), 
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for the 2-year period covered by a State plan 
under section 112 if such request is made not 
later than the date of the submission of the 
State plan. 
‘‘(B) CONTINUED DESIGNATION BASED ON 
PERFORMANCE.—The Governor may deny a re-
quest for designation submitted pursuant to 
subparagraph (A) if such unit of government 
was designated as a local area for the preceding 
2-year period covered by a State plan and the 
Governor determines that such local area did 
not perform successfully during such period.’’. 
(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.— 
‘‘(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 July 1, 2007, may con-
tinue 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 section 
112(b)(5). 
‘‘(2) NEW DESIGNATION.—The Governor of a 
State not described in paragraph (1) may designate 
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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)(1) (29 
U.S.C. 2831(c)(1)) is amended by adding at the end the 
following: ‘‘The State may require the local boards 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 approved in lieu of separate 
local plans under such section.’’. 
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 
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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 and the president or 
chief executive officer of a postsecondary 
educational institution serving the local 
area (including community colleges, where 
such entities exist);’’; 
(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 
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(F) by striking clause (vi); and 
(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 
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: ‘‘The 
members of the board shall represent diverse geo-
graphic sections within the local area.’’. 
(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: 
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‘‘(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)(3)(M) 
through (U) in the local area, the local board 
shall identify eligible 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: 
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‘‘(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 
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 
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Act (including programs identified in section 
121(b)) for the local area; 
‘‘(C) brokering relationships and service 
arrangements across system stakeholders and 
partners; and 
‘‘(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.’’; 
(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 (c)(d)(2) through a one-stop delivery system 
described in section 121 or be designated or certified 
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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’’. 
(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) REPEAL OF ALTERNATIVE ENTITY PROVISION.— 
Section 117 (29 U.S.C. 2832) is further amended by strik-
ing subsection (i). 
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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;’’; 
(2) in paragraph (4)— 
(A) by striking ‘‘and dislocated worker’’; 
and 
(B) by inserting before the semicolon ‘‘, in-
cluding a description of how the local area will 
implement 
the 
requirements 
of 
section 
134(c)(4)(G) relating to ensuring that training 
services are linked to occupations that are in 
demand’’; 
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(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-
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; 
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‘‘(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; 
‘‘(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— 
(A) by striking subparagraph (A) and in-
serting the following: 
‘‘(A) ROLES
AND
RESPONSIBILITIES
OF 
ONE-STOP PARTNERS.—Each entity that carries 
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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(d)(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); 
‘‘(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, 
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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: 
‘‘(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 
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‘‘(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.’’. 
(2) 
ADDITIONAL
PARTNERS.—Section 
121(b)(2)(B) (29 U.S.C. 2841(b)(2)(B)) is amended 
to read as follows: 
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‘‘(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; 
‘‘(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; 
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‘‘(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 
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 
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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.—Subtitle B of title I 
is amended— 
(1) in section 121(d)(2), by striking ‘‘section 
134(c)’’ and inserting ‘‘subsection (e)’’; 
(2) by striking subsection (e) of section 121; 
(3) by moving subsection (c) of section 134 
from section 134, redesignating such subsection as 
subsection (e), and inserting such subsection (as so 
redesignated) after subsection (d) of section 121; 
and 
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(4) by amending subsection (e) of section 121 
(as moved and redesignated by paragraph (3))— 
(A) in paragraph (1)(A), by striking ‘‘core 
services described in subsection (d)(2)’’ and in-
serting ‘‘work ready services described in sec-
tion 134(c)(2)’’; 
(B) in paragraph (1)(B)— 
(i) by striking ‘‘intensive services’’; 
(ii) by striking ‘‘paragraphs (3) and 
(4) of subsection (d)’’ and inserting ‘‘sec-
tion 134(c)(4)’’; 
(iii) by striking ‘‘individual training 
accounts’’ and inserting ‘‘career enhance-
ment accounts’’; and 
(iv) by striking ‘‘subsection (d)(4)(G)’’ 
and inserting ‘‘section 134(c)(4)(G)’’; 
(C) in paragraph (1)(C), by striking ‘‘sub-
section (e)’’ and inserting ‘‘section 134(d)’’; 
(D) in paragraph (1)(D), by striking ‘‘sec-
tion 121(b)’’ and inserting ‘‘subsection (b)’’; 
(E) by amending paragraph (1)(E) to read 
as follows: 
‘‘(E) shall provide access to the informa-
tion described in section 15(e) of the Wagner- 
Peyser Act (29 U.S.C. 49l–2(e)).’’; and 
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(F) in paragraph (2)(B)(ii)(II), by striking 
‘‘core services’’ and inserting ‘‘work ready serv-
ices’’. 
(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). 
‘‘(B) CRITERIA.—The criteria for certifi-
cation under this subsection shall include min-
imum standards relating to the scope and de-
gree of service integration achieved by the cen-
ters involving the programs provided by the 
one-stop partners, and how the centers ensure 
that such providers meet the employment needs 
of local employers and participants. 
‘‘(C) EFFECT
OF
CERTIFICATION.—One- 
stop centers certified under this subsection shall 
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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.— 
‘‘(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 
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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). 
‘‘(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 postsecondary career education ac-
tivities authorized under the Carl D. Per-
kins 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 
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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 
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-
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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. 
‘‘(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 
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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 
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-
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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 
(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.’’. 
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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-
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 postsecondary 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 
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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) 
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 
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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); 
‘‘(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-
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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 
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. 
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‘‘(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. 
‘‘(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 
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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 
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 
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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-
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-
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gram involved may be terminated, or other ap-
propriate action may be taken. 
‘‘(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 
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opportunity for interested members of the public, includ-
ing representatives of business and labor organizations, to 
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 (g). 
‘‘(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.’’. 
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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: 
‘‘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 
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(2) by striking subsection (b) and inserting the 
following: 
‘‘(b) ALLOTMENT AMONG STATES.— 
‘‘(1) YOUTH ACTIVITIES.— 
‘‘(A) YOUTH CHALLENGE GRANTS.— 
‘‘(i) RESERVATION
OF
FUNDS.—Of 
the amount appropriated under section 
137(a) for each fiscal year, the Secretary 
shall reserve 25 percent to provide youth 
challenge grants under section 169. 
‘‘(ii) 
LIMITATION.—Notwithstanding 
clause (i), if the amount appropriated 
under section 137(a) for a fiscal year ex-
ceeds $1,000,000,000, the Secretary shall 
reserve $250,000,000 to provide youth 
challenge grants under section 169. 
‘‘(B) OUTLYING AREAS AND NATIVE AMER-
ICANS.— 
‘‘(i) IN GENERAL.—After determining 
the amount to be reserved under subpara-
graph (A), of the remainder of the amount 
appropriated under section 137(a) for each 
fiscal year the Secretary shall— 
‘‘(I) reserve not more than 1⁄4 of 
one percent of such amount to provide 
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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). 
‘‘(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 2008 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 
2007, 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 
2007) that is received by the State involved for 
fiscal year 2007. 
‘‘(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. 
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‘‘(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 
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-
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ted to the State in all prior program years that 
remained available); and 
‘‘(B) the accrued expenditures during such 
prior program year.’’; 
(B) in paragraph (3)— 
(i) by striking ‘‘for the prior program 
year’’ and inserting ‘‘for the program year 
in which the determination is made’’; and 
(ii) by striking ‘‘such prior program 
year’’ and inserting ‘‘such program year’’; 
(C) by amending paragraph (4) to read as 
follows: 
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible State means a State 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 
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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) 
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.— 
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‘‘(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-
uals in the civilian labor force who are ages 
16 through 19 in each local area, com-
pared to the total number of individuals in 
the civilian labor force who are ages 16 
through 19 in all local areas in the State; 
‘‘(ii) 331⁄3 percent shall be allotted on 
the basis of the relative number of unem-
ployed individuals in each local area, com-
pared to the total number of unemployed 
individuals in all local areas in the State; 
and 
‘‘(iii) 331⁄3 percent on the basis of the 
relative number of disadvantaged youth 
who are ages 16 through 21 in each local 
area, compared to the total number of dis-
advantaged youth who are ages 16 through 
21 in all local areas in the State. 
‘‘(B) MINIMUM AND MAXIMUM PERCENT-
AGES.—The Governor shall ensure that no local 
area shall receive an allocation for a fiscal year 
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under this paragraph that is less than 90 per-
cent or greater than 130 percent of the alloca-
tion percentage of the local area for the pre-
ceding fiscal year. 
‘‘(C) DEFINITIONS.— 
‘‘(i) ALLOCATION PERCENTAGE.—For 
purposes of this paragraph, the term ‘allo-
cation percentage’, used with respect to fis-
cal year 2008 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 2007, 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 2007) that is received by the local 
area involved for fiscal year 2007. 
‘‘(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, 
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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-
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— 
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‘‘(V) Individuals who require ad-
ditional assistance to complete an edu-
cational program, or to secure and 
hold employment. 
‘‘(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) LIMITATIONS
ON
ACTIVITIES
FOR
IN- 
SCHOOL YOUTH.— 
‘‘(A) PERCENTAGE OF FUNDS.—For any 
program year, not more than 50 percent of the 
funds available for statewide activities under 
subsection (b), and not more than 50 percent of 
funds available to local areas under subsection 
(c), may be used to provide activities for in- 
school youth meeting the requirements of para-
graph (1)(B)(v). 
‘‘(B) EXCEPTION.—A State that receives a 
minimum allotment under section 127(b)(1) in 
accordance with section 127(b)(1)(C)(iv) or 
under section 132(b)(1) in accordance with sec-
tion 132(b)(1)(B)(iv)(II) may increase the per-
centage described in subparagraph (A) for a 
local area in the State, if— 
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‘‘(i) after an analysis of the eligible 
youth population in the local area, the 
State determines that the local area will be 
unable to use at least 50 percent of the 
funds available for activities under sub-
section (b) or (c) to serve out-of-school 
youth due to a low number of out-of-school 
youth; and 
‘‘(ii)(I) the State submits to the Sec-
retary, for the local area, a request includ-
ing a proposed increased percentage for 
purposes of subparagraph (A), and the 
summary of the eligible youth population 
analysis; and 
‘‘(II) the request is approved by the 
Secretary. 
‘‘(C) NON-SCHOOL HOURS REQUIRED.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), activities carried out 
under this chapter for in-school youth 
meeting the requirements of paragraph 
(1)(B)(v) shall only be carried out in non- 
school hours or periods when school is not 
in session (such as before and after school 
or during recess). 
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‘‘(ii) EXCEPTION.—The requirements 
of clause (i) shall not apply to activities 
carried out for in-school youth meeting the 
requirements of paragraph (1)(B)(v) dur-
ing school hours that are part of a pro-
gram that has demonstrated effectiveness 
in high school youth attaining diplomas. 
‘‘(4) 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; 
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‘‘(B) supporting the provision of work 
ready services described in section 134(c)(2) in 
the one-stop delivery system; 
‘‘(C) conducting evaluations under section 
136(e) of activities authorized under this chap-
ter and chapter 5 in coordination with evalua-
tions carried out by the Secretary under section 
172, research, and demonstration projects; 
‘‘(D) providing incentive grants to local 
areas for regional cooperation among local 
boards (including local boards in a designated 
region as described in section 116(c)), for local 
coordination of activities carried out under this 
Act, and for exemplary performance by local 
areas on the local performance measures; 
‘‘(E) providing technical assistance and ca-
pacity building to local areas, one-stop opera-
tors, one-stop partners, and eligible providers, 
including the development and training of staff, 
the development of exemplary program activi-
ties, and the provision of technical assistance to 
local areas that fail to meet local performance 
measures; 
‘‘(F) operating a fiscal and management 
accountability system under section 136(f); and 
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‘‘(G) carrying out monitoring and over-
sight of activities under this chapter and chap-
ter 5. 
‘‘(2) LIMITATION.—Not more than 5 percent of 
the funds allotted under section 127(b) shall be used 
by the State for administrative activities carried out 
under this subsection and section 133(a). 
‘‘(3) PROHIBITION.—No funds described in this 
subsection or in section 134(a) may be used to de-
velop or implement education curricula for school 
systems in the State.’’. 
(e) LOCAL ELEMENTS AND REQUIREMENTS.— 
(1) PROGRAM DESIGN.—Section 129(c)(1) (29 
U.S.C. 2854(c) (1)) is amended— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘paragraph (2)(A) or (3), as 
appropriate, of’’; 
(B) in subparagraph (B), by inserting ‘‘are 
directly linked to one or more of the perform-
ance measures relating to this chapter under 
section 136, and that’’ after ‘‘for each partici-
pant that’’; and 
(C) in subparagraph (C)— 
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(i) 
by 
redesignating 
clauses 
(i) 
through (iv) as clauses (ii) through (v), re-
spectively; 
(ii) by inserting before clause (ii) (as 
so redesignated) the following: 
‘‘(i) activities leading to the attain-
ment of a secondary school diploma, Gen-
eral Educational Development credential 
(GED), or other State-recognized equiva-
lent 
(including 
recognized 
alternative 
standards for individuals with disabil-
ities);’’; 
(iii) in clause (ii) (as so redesignated), 
by inserting ‘‘and advanced training’’ after 
‘‘opportunities’’; 
(iv) in clause (iii) (as so redesig-
nated), by inserting ‘‘that lead to the at-
tainment of recognized credentials’’ after 
‘‘learning’’; and 
(v) by amending clause (v) (as so re-
designated) to read as follows: 
‘‘(v) effective connections to employ-
ers, including small employers, in sectors 
of the local and regional labor markets ex-
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periencing high growth in employment op-
portunities.’’. 
(2) PROGRAM
ELEMENTS.—Section 129(c)(2) 
(29 U.S.C. 2854(c)(2)) is amended— 
(A) in subparagraph (A), by striking ‘‘sec-
ondary school, including dropout prevention 
strategies’’ and inserting ‘‘secondary school di-
ploma, General Educational Development cre-
dential (GED), or other State-recognized equiv-
alent (including recognized alternative stand-
ards for individuals with disabilities), including 
dropout prevention strategies’’; 
(B) in subparagraph (I), by striking ‘‘and’’ 
at the end; 
(C) in subparagraph (J), by striking the 
period at the end and inserting a semicolon; 
and 
(D) by adding at the end the following: 
‘‘(K) on-the-job training opportunities; and 
‘‘(L) financial literacy skills.’’. 
(3) 
ADDITIONAL
REQUIREMENTS.—Section 
129(c)(3)(A) (29 U.S.C. 2854(c)(3)(A)) is amended 
in the matter preceding clause (i) by striking ‘‘or ap-
plicant who meets the minimum income criteria to 
be considered an eligible youth’’. 
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(4) 
PRIORITY
AND
EXCEPTIONS.—Section 
129(c) (29 U.S.C. 2854(c)) is further amended— 
(A) by striking paragraphs (4) and (5) and 
redesignating paragraphs (6) through (8) as 
paragraphs (4) through (6), respectively; and 
(B) in paragraph (5) (as so redesignated), 
by striking ‘‘youth councils’’ and inserting 
‘‘local boards’’. 
SEC. 112. COMPREHENSIVE PROGRAMS FOR ADULTS. 
(a) TITLE AMENDMENT.— 
(1) The title heading of chapter 5 is amended 
to read as follows: 
‘‘CHAPTER 5—COMPREHENSIVE EMPLOY-
MENT AND TRAINING ACTIVITIES FOR 
ADULTS’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1(b) is amended by amending the 
item related to the heading for chapter 5 to read as 
follows: 
‘‘CHAPTER 5—COMPREHENSIVE EMPLOYMENT AND TRAINING ACTIVITIES 
FOR ADULTS’’. 
(b) GENERAL AUTHORIZATION.—Section 131 (29 
U.S.C. 2861) is amended— 
(1) by striking ‘‘paragraphs (1)(B) and (2)(B) 
of’’; and 
(2) by striking ‘‘, and dislocated workers,’’. 
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(c) STATE ALLOTMENTS.—Section 132 (29 U.S.C. 
2862) is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) IN GENERAL.—The Secretary shall— 
‘‘(1) reserve 7.5 percent of the amount appro-
priated under section 137 for a fiscal year, of 
which— 
‘‘(A) not less than 85 percent shall be used 
for national dislocated worker grants under sec-
tion 173; 
‘‘(B) not more than 10 percent may be 
used for demonstration projects under section 
171; and 
‘‘(C) not more than 5 percent may be used 
to provide technical assistance under section 
170; and 
‘‘(2) make allotments from 92.5 percent of the 
amount appropriated under section 137 for a fiscal 
year in accordance with subsection (b).’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) ALLOTMENT AMONG STATES FOR ADULT EM-
PLOYMENT AND TRAINING ACTIVITIES.— 
‘‘(1) RESERVATION FOR OUTLYING AREAS.— 
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‘‘(A) IN
GENERAL.—From the amount 
made available under subsection (a)(2) for a 
fiscal year, the Secretary shall reserve not more 
than 1⁄4 of 1 percent to provide assistance to 
outlying areas to carry out employment and 
training activities for adults and statewide 
workforce investment activities. 
‘‘(B) 
RESTRICTION.—The 
Republic 
of 
Palau shall cease to be eligible to receive fund-
ing under this paragraph upon entering into an 
agreement for extension of United States edu-
cational assistance under the Compact of Free 
Association (approved by the Compact of Free 
Association Amendments Act of 2003 (Public 
Law 108–188)) after the date of enactment of 
the Workforce Investment Improvement Act of 
2007. 
‘‘(2) STATES.—Subject to paragraph (5), of the 
remainder of the amount referred to under sub-
section (a)(2) for a fiscal year that is available after 
determining the amount to be reserved under para-
graph (1), the Secretary shall allot to the States for 
employment and training activities for adults and for 
statewide workforce investment activities— 
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‘‘(A) 26 percent in accordance with para-
graph (3); and 
‘‘(B) 74 percent in accordance with para-
graph (4). 
‘‘(3) BASE FORMULA.— 
‘‘(A) FISCAL YEAR 2008.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the amount referred to in paragraph 
(2)(A) shall be allotted for fiscal year 2008 
on the basis of allotment percentage of 
each State under section 6 of the Wagner- 
Peyser Act for fiscal year 2007. 
‘‘(ii) 
EXCESS
AMOUNTS.—If 
the 
amount referred to in paragraph (2)(A) for 
fiscal year 2008 exceeds the amount that 
was available for allotment to the States 
under the Wagner-Peyser Act for fiscal 
year 2007, such excess amount shall be al-
lotted on the basis of the relative number 
of individuals in the civilian labor force in 
each State, compared to the total number 
of individuals in the civilian labor force in 
all States, adjusted to ensure that no State 
receives less than 3⁄10 of one percent of 
such excess amount. 
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‘‘(iii) DEFINITION.—For purposes of 
this subparagraph, the term ‘allotment 
percentage’ means the percentage of the 
amounts allotted to States under section 6 
of the Wagner-Peyser Act that is received 
by the State involved for fiscal year 2007. 
‘‘(B) FISCAL
YEARS
2009
AND
THERE-
AFTER.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the amount referred to in para-
graph(2)(A) shall be allotted for fiscal year 
2009 and each fiscal year thereafter on the 
basis of the allotment percentage of each 
State under this paragraph for the pre-
ceding fiscal year. 
‘‘(ii) 
EXCESS
AMOUNTS.—If 
the 
amount referred to in paragraph (2)(A) for 
fiscal year 2009 or any fiscal year there-
after exceeds the amount that was avail-
able for allotment under this paragraph for 
the prior fiscal year, such excess amount 
shall be allotted on the basis of the relative 
number of individuals in the civilian labor 
force in each State, compared to the total 
number of individuals in the civilian labor 
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force in all States, adjusted to ensure that 
no State receives less than 3⁄10 of one per-
cent of such excess amount. 
‘‘(iii) DEFINITION.—For purposes of 
this subparagraph, the term ‘allotment 
percentage’ means the percentage of the 
amounts allotted to States under this para-
graph in a fiscal year that is received by 
the State involved for such fiscal year. 
‘‘(4) CONSOLIDATED FORMULA.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), of the amount referred to 
in paragraph (2)(B)— 
‘‘(i) 60 percent shall be allotted on the 
basis of the relative number of unemployed 
individuals in each State, compared to the 
total number of unemployed individuals in 
all States; 
‘‘(ii) 25 percent shall be allotted on 
the basis of the relative excess number of 
unemployed individuals in each State, com-
pared to the total excess number of unem-
ployed individuals in all States; and 
‘‘(iii) 15 percent shall be allotted on 
the basis of the relative number of dis-
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scribed in clause (iii)) that were used 
in allotting funds for fiscal year 2007. 
‘‘(ii) UNCONSOLIDATED FORMULAS.— 
For purposes of clause (i), the unconsoli-
dated formulas are: 
‘‘(I) The requirements for the al-
lotment of funds to the States con-
tained in section 132(b)(1)(B) of this 
Act (as in effect on the day before the 
date of enactment of the Workforce 
Investment Improvement Act of 2007) 
that were applicable to the allotment 
of funds under such section for fiscal 
year 2007. 
‘‘(II) The requirements for the 
allotment of funds to the States con-
tained in section 132(b)(2)(B) of this 
Act (as in effect on the day before the 
date of enactment of the Workforce 
Investment Improvement Act of 2007) 
that were applicable to the allotment 
of funds under such section for fiscal 
year 2007. 
‘‘(III) The requirements for the 
allotment of funds to the States that 
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were contained in section 6 of the 
Wagner-Peyser Act (as in effect on 
the day before the date of enactment 
of the Workforce Investment Improve-
ment Act of 2007) that were applica-
ble to the allotment of funds under 
such Act for fiscal year 2007. 
‘‘(IV) The requirements for the 
allotment of funds to the States that 
were established by the Secretary for 
Reemployment Services Grants that 
were applicable to the allotment of 
funds for such grants for fiscal year 
2007. 
‘‘(iii) PROPORTIONATE
APPLICATION 
OF
UNCONSOLIDATED
FORMULAS
BASED 
ON FISCAL YEAR 2007.—In calculating the 
amount under clause (i)(II), each of the 
unconsolidated 
formulas 
identified 
in 
clause (ii) shall be applied, respectively, 
only to the proportionate share of the total 
amount of funds available for allotment 
under subsection (b)(2) for a fiscal year 
that is equal to the proportionate share to 
which each of the unconsolidated formulas 
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applied with respect to the total amount of 
funds allotted to the States under all of 
the unconsolidated formulas in fiscal year 
2007. 
‘‘(iv) RULE OF CONSTRUCTION.—The 
amounts used to adjust the allotments to a 
State under subparagraph (B) for a fiscal 
year shall not be included in the calcula-
tion of the amounts under clause (i) for a 
subsequent fiscal year, including the cal-
culation of allocation percentages for a 
preceding fiscal year applicable to para-
graphs (3) and (4) and to the unconsoli-
dated formulas described in clause (ii).’’; 
and 
(3) in subsection (c)— 
(A) by amending paragraph (2) to read as 
follows: 
‘‘(2) AMOUNT.—The amount available for real-
lotment for a program year is equal to the amount 
by which the unexpended balance at the end of the 
program year prior to the program year for which 
the determination is made exceeds 30 percent of the 
total amount of funds available to the State under 
this section during such prior program year (includ-
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ing amounts allotted to the State in all prior pro-
gram years that remained available). For purposes 
of this paragraph, the expended balance is the 
amount that is the difference between— 
‘‘(A) the total amount of funds available to 
the State under this section during the program 
year prior to the program year for which the 
determination is made (including amounts allot-
ted to the State in all prior program years that 
remained available); and 
‘‘(B) the accrued expenditures during such 
prior program year.’’; 
(B) in paragraph (3)— 
(i) by striking ‘‘for the prior program 
year’’ and inserting ‘‘for the program year 
in which the determination is made’’; and 
(ii) by striking ‘‘such prior program 
year’’ and inserting ‘‘such program year’’; 
(C) by amending paragraph (4) to read as 
follows: 
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible State means a State that does 
not have an amount available for reallotment under 
paragraph (2) for the program year for which the 
determination under paragraph (2) is made.’’; and 
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(D) in paragraph (5), by striking ‘‘obliga-
tion’’ and inserting ‘‘accrued expenditure’’. 
(d) WITHIN STATE ALLOCATIONS.—Section 133 (29 
U.S.C. 2863) is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) RESERVATION FOR STATEWIDE ACTIVITIES.— 
The Governor of a State may reserve up to 40 percent 
of the total amount allotted to the State under section 132 
for a fiscal year to carry out the statewide activities de-
scribed in section 134(a).’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) ALLOCATIONS TO LOCAL AREAS.— 
‘‘(1) IN GENERAL.—Of the amounts allotted to 
the State under section 132(b)(2) and not reserved 
under subsection (a)— 
‘‘(A) 85 percent of such amounts shall be 
allocated by the Governor to local areas in ac-
cordance with paragraph (2); and 
‘‘(B) 15 percent of such amounts shall be 
allocated by the Governor to local areas in ac-
cordance with paragraph (3). 
‘‘(2) ESTABLISHED FORMULA.— 
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‘‘(A) IN GENERAL.—Of the amounts de-
scribed in paragraph (1)(A), the Governor shall 
allocate— 
‘‘(i) 60 percent on the basis of the rel-
ative number of unemployed individuals in 
each local area, compared to the total 
number of unemployed individuals in all 
local areas in the State; 
‘‘(ii) 25 percent on the basis of the 
relative excess number of unemployed indi-
viduals in each local area, compared to the 
total excess number of unemployed individ-
uals in all local areas in the State; and 
‘‘(iii) 15 percent shall be allotted on 
the basis of the relative number of dis-
advantaged adults in each local area, com-
pared to the total number of disadvantaged 
adults in all local areas in the State. 
‘‘(B) MINIMUM AND MAXIMUM PERCENT-
AGES.—The Governor shall ensure that no local 
area shall receive an allocation for a fiscal year 
under this paragraph that is less than 90 per-
cent or greater than 130 percent of the alloca-
tion percentage of the local area for the pre-
ceding fiscal year. 
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‘‘(C) DEFINITIONS.— 
‘‘(i) ALLOCATION PERCENTAGE.—The 
term ‘allocation percentage’, used with re-
spect to fiscal year 2008 or a subsequent 
fiscal year, means a percentage of the 
amount described in paragraph (1)(A) that 
is received through an allocation made 
under this paragraph for the fiscal year. 
The term, with respect to fiscal year 2007, 
means the percentage of the amounts allo-
cated to local areas under this chapter (as 
in effect on the day before the date of en-
actment of the Workforce Investment Im-
provement Act of 2007) that is received by 
the local area involved for fiscal year 2007. 
‘‘(ii) DISADVANTAGED
ADULT.—The 
term ‘disadvantaged adult’ means an indi-
vidual who is age 22 through 72 who re-
ceived an income, or is a member of a fam-
ily that received a total family income, 
that, in relation to family size, does not ex-
ceed the poverty line. 
‘‘(iii) EXCESS
NUMBER.—The term 
‘excess number’ means, used with respect 
to the excess number of unemployed indi-
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viduals within a local area, the number 
that represents the number of unemployed 
individuals in excess of 4.5 percent of the 
civilian labor force in the local area. 
‘‘(3) DISCRETIONARY ALLOCATION.—The Gov-
ernor shall allocate to local areas the amounts de-
scribed in paragraph (1)(B) based on a formula de-
veloped in consultation with the State board and 
local boards. Such formula shall be objective and 
geographically equitable and may include such demo-
graphic and economic factors as the Governor, after 
consultation with the State board and local boards, 
determines are appropriate. 
‘‘(4) LOCAL ADMINISTRATIVE COST LIMIT.— 
‘‘(A) IN GENERAL.—Of the amounts allo-
cated to a local area under this subsection and 
section 128(b) for a fiscal year, not more than 
10 percent of the amount may be used by the 
local boards for the administrative costs of car-
rying out local workforce investment activities 
under this chapter or chapter 4. 
‘‘(B) USE OF FUNDS.—Funds made avail-
able for administrative costs under subpara-
graph (A) may be used for the administrative 
costs of any of the local workforce investment 
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activities described in this chapter or chapter 4, 
regardless of whether the funds were allocated 
under this subsection or section 128(b).’’; 
(3) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘para-
graph (2)(A) or (3) of’’; 
(B) by amending paragraph (2) to read as 
follows: 
‘‘(2) AMOUNT.—The amount available for re-
allocation for a program year is equal to the amount 
by which the unexpended balance at the end of the 
program year prior to the program year for which 
the determination is made exceeds 30 percent of the 
total amount of funds available to the local area 
under this section during such prior program year 
(including amounts allotted to the local area in prior 
program years that remain available). For purposes 
of this paragraph, the unexpended balance is the 
amount that is the difference between— 
‘‘(A) the total amount of funds available to 
the local area under this section during the pro-
gram year prior to the program year for which 
the determination is made (including amounts 
allocated to the local area in all prior program 
years that remained available); and 
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‘‘(B) the accrued expenditures during such 
prior program year.’’; 
(C) by amending paragraph (3)— 
(i) by striking ‘‘subsection (b)(3)’’ the 
first two places it appears and inserting 
‘‘subsection (b)’’; 
(ii) by striking ‘‘the prior program 
year’’ and inserting ‘‘the program year in 
which the determination is made’’; 
(iii) by striking ‘‘such prior program 
year’’ and inserting ‘‘such program year’’; 
and 
(iv) by striking the last sentence; and 
(D) by amending paragraph (4) to read as 
follows: 
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible local area means a local area 
which does not have an amount available for re-
allocation under paragraph (2) for the program year 
for which the determination under paragraph (2) is 
made.’’. 
(e) USE OF FUNDS FOR EMPLOYMENT AND TRAIN-
ING ACTIVITIES.— 
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(1) STATEWIDE EMPLOYMENT AND TRAINING 
ACTIVITIES.—Section 134(a) (29 U.S.C. 2864(a) is 
amended to read as follows: 
‘‘(1) IN GENERAL.— 
‘‘(A) REQUIRED USE OF FUNDS.—Not less 
than 60 percent of the funds reserved by a Gov-
ernor under section 133(a) shall be used to sup-
port One-Stop delivery systems and the provi-
sion of work ready services, and, in addition, 
may be used to support the provision of discre-
tionary one-step delivery services, in local areas, 
consistent with the local plan, through one-stop 
delivery systems by distributing funds to local 
areas in accordance with subparagraph (B). 
Such funds may be used by States to employ 
State personnel to provide such services in des-
ignated local areas in consultation with local 
boards. 
‘‘(B) 
METHOD
OF
DISTRIBUTING 
FUNDS.—The method of distributing funds 
under this paragraph shall be developed in con-
sultation with the State board and local boards. 
Such method of distribution, which may include 
the 
formula 
established 
under 
section 
121(h)(3), shall be objective and geographically 
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100 
equitable, and may include factors such as the 
number of centers in the local area that have 
been certified, the population served by such 
centers, and the performance of such centers. 
‘‘(C) OTHER USE OF FUNDS.—Funds re-
served by a Governor for a State— 
‘‘(i) under section 133(a) and not 
used under subparagraph (A), may be used 
for statewide activities described in para-
graph (2); and 
‘‘(ii) under section 133(a) and not 
used under subparagraph (A), and under 
section 128(a) may be used to carry out 
any of the statewide employment and 
training activities described in paragraph 
(3). 
‘‘(2) STATEWIDE
RAPID
RESPONSE
ACTIVI-
TIES.—A State shall carry out statewide rapid re-
sponse activities using funds reserved as described in 
section 133(a). Such activities shall include— 
‘‘(A) provision of rapid response activities, 
carried out in local areas by the State or by an 
entity designated by the State, working in con-
junction with the local boards and the chief 
elected officials in the local areas; and 
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101 
‘‘(B) provision of additional assistance to 
local areas that experience disasters, mass lay-
offs or plant closings, or other events that pre-
cipitate substantial increases in the number of 
unemployed individuals, carried out in local 
areas by the State, working in conjunction with 
the local boards and the chief elected officials in 
the local areas. 
‘‘(3) STATEWIDE ACTIVITIES.—Funds reserved 
by a Governor for a State as described in sections 
133(a) and 128(a) may be used for statewide activi-
ties including— 
‘‘(A) supporting the provision of work 
ready services described in section 134(c)(2) in 
the one-stop delivery system; 
‘‘(B) implementing innovative programs 
and strategies designed to meet the needs of all 
businesses in the State, including small busi-
nesses, which may include incumbent worker 
training programs, sectoral and industry cluster 
strategies and partnerships, including regional 
skills alliances, sectoral skills partnerships (in 
which representatives of multiple employers for 
a specific industry sector or group of related oc-
cupations, economic development agencies, pro-
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102 
viders of training services described in sub-
section (d)(4), labor federations, and other enti-
ties that can provide needed supportive services 
tailored to the needs of workers in that sector 
or group, for a local area or region, identify 
gaps between the current and expected demand 
and supply of labor and skills in that sector or 
group for that area or region and develop a 
strategic skills gap action plan), career ladder 
programs, micro-enterprise and entrepreneurial 
training and support programs, utilization of ef-
fective business intermediaries, activities to im-
prove linkages between the one-stop delivery 
system in the State and all employers (includ-
ing small employers) in the State, and other 
business services and strategies that better en-
gage employers in workforce investment activi-
ties and make the workforce investment system 
more relevant to the needs of State and local 
businesses, consistent with the objectives of this 
title; 
‘‘(C) conducting evaluations under section 
136(e) of activities authorized under this chap-
ter and chapter 4 in coordination with evalua-
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103 
tions carried out by the Secretary under section 
172, research, and demonstration projects; 
‘‘(D) providing incentive grants to local 
areas for regional cooperation among local 
boards (including local boards in a designated 
region as described in section 116(c)), for local 
coordination of activities carried out under this 
Act, and for exemplary performance by local 
areas on the local performance measures; 
‘‘(E) providing technical assistance and ca-
pacity building to local areas, one-stop opera-
tors, one-stop partners, and eligible providers, 
including the development and training of staff, 
the development of exemplary program activi-
ties, and the provision of technical assistance to 
local areas that fail to meet local performance 
measures; 
‘‘(F) operating a fiscal and management 
accountability system under section 136(f); 
‘‘(G) carrying out monitoring and over-
sight of activities carried out under this chapter 
and chapter 4; 
‘‘(H) implementing innovative programs, 
such as incumbent worker training programs, 
programs and strategies designed to meet the 
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104 
needs of businesses in the State, including small 
businesses, and engage employers in workforce 
activities, and programs serving individuals 
with disabilities consistent with section 188; 
‘‘(I) developing strategies for effectively 
serving hard-to-serve populations and for inte-
grating programs and services among one-stop 
partners; and 
‘‘(J) carrying out activities to facilitate re-
mote access to services provided through a one- 
stop delivery system, including facilitating ac-
cess through the use of technology. 
‘‘(4) LIMITATION.—Not more than 5 percent of 
the funds allotted under section 132(b) shall be used 
by the State for administrative activities carried out 
under this subsection and section 128(a).’’. 
(2) LOCAL
EMPLOYMENT
AND
TRAINING
AC-
TIVITIES.—Section 134(b) (29 U.S.C. 2864(b)) is 
amended— 
(A) by striking ‘‘under paragraph (2)(A)’’ 
and 
all 
that 
follows 
through 
‘‘section 
133(b)(2)(B)’’ and inserting ‘‘under section 
133(b)’’; and 
(B) in paragraphs (1) and (2), by striking 
‘‘or dislocated workers, respectively’’. 
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105 
(3) TECHNICAL AMENDMENT.—Section 134 is 
further amended by redesignating subsections (d) 
and (e) as subsections (c) and (d), respectively. 
(4) 
REQUIRED
LOCAL
EMPLOYMENT
AND 
TRAINING ACTIVITIES.— 
(A) 
ALLOCATED
FUNDS.—Section 
134(c)(1) (29 U.S.C. 2864(c)(1)) (as redesig-
nated by paragraph (3)) is amended to read as 
follows: 
‘‘(1) IN GENERAL.—Funds allocated to a local 
area for adults under section 133(b) shall be used— 
‘‘(A) to establish a one-stop delivery sys-
tem as described in section 121(e); 
‘‘(B) to provide the work ready services de-
scribed in paragraph (2) through the one-stop 
delivery system in accordance with such para-
graph; 
‘‘(C) to provide training services described 
in paragraph (4) to adults described in such 
paragraph; and 
‘‘(D) to designate a dedicated business liai-
son in the local area who may be funded with 
funds provided under this title or from other 
sources to establish and develop relationships 
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106 
and networks with large and small employers 
and their intermediaries.’’. 
(B) WORK
READY
SERVICES.—Section 
134(c)(2) (29 U.S.C. 2864(c)(2)) (as redesig-
nated by paragraph (3)) is amended—— 
(i) in the heading, by striking ‘‘CORE 
SERVICES’’ and inserting ‘‘WORK
READY 
SERVICES’’; 
(ii) by striking ‘‘core services’’ and in-
serting ‘‘work ready services’’; 
(iii) by striking ‘‘paragraph (1)(A)’’ 
and inserting ‘‘paragraph (1)(A)(i)’’; 
(iv) by striking ‘‘who are adults or 
dislocated workers’’; 
(v) in subparagraph (A), by inserting 
‘‘and assistance in obtaining eligibility de-
terminations under the other one-stop 
partner programs through such activities 
as assisting in the submission of applica-
tions, the provision of information on the 
results of such applications, the provision 
of intake services and information, and, 
where appropriate and consistent with the 
authorizing statute of the one-stop partner 
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107 
program, determinations of eligibility’’ 
after ‘‘subtitle’’; 
(vi) by amending subparagraph (D) to 
read as follows: 
‘‘(D) labor exchange services, including— 
‘‘(i) job search and placement assist-
ance, and where appropriate career coun-
seling; 
‘‘(ii) appropriate recruitment services 
for employers, including small employers, 
in the local area, which may include serv-
ices described in this subsection, including 
information and referral to specialized 
business services not traditionally offered 
through the one-stop delivery system; and 
‘‘(iii) reemployment services provided 
to 
unemployment 
claimants, 
including 
claimants identified as in need of such 
services under the worker profiling system 
established under section 303(j) of the So-
cial Security Act (42 U.S.C. 503(j);’’; 
(vii) in subparagraph (I), by inserting 
‘‘and the administration of the work test 
for the unemployment compensation sys-
tem’’ after ‘‘compensation’’; and 
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108 
(viii) by striking subparagraph (H) 
and inserting the following: 
‘‘(H) provision of accurate information, in 
formats that are usable and understandable to 
all one-stop center customers, relating to the 
availability of supportive services or assistance, 
including child care, child support, medical or 
child health assistance under title XIX or XXI 
of the Social Security Act (42 U.S.C. 1396 et 
seq. and 1397aa et seq.), benefits under the 
Food Stamp Act of 1977 (7 U.S.C. 2011 et 
seq.), the earned income tax credit under sec-
tion 32 of the Internal Revenue Code of 1986, 
and assistance under a State program funded 
under part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.) and other sup-
portive services and transportation provided 
through funds made available under such part, 
available in the local area, and referral to such 
services or assistance as appropriate;’’; and 
(ix) by amending subparagraph (J) to 
read as follows: 
‘‘(J) assistance in establishing eligibility 
for programs of financial aid assistance for 
training and education programs that are not 
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109 
funded under this Act and are available in the 
local area; and’’; and 
(x) by redesignating subparagraph 
(K) as subparagraph (M); and 
(xi) by inserting the following new 
subparagraphs after subparagraph (J)): 
‘‘(K) the provision of information from of-
ficial publications of the Internal Revenue Serv-
ice, regarding federal tax credits available to in-
dividuals relating to education, job training and 
employment, including the Hope Scholarship 
Credit and the Lifetime Learning Credit (26 
U.S.C. 25A), and the Earned Income Tax 
Credit (26 U.S.C. 32); 
‘‘(L) services relating to the Work Oppor-
tunity Tax Credit (26 U.S.C. 51); 
‘‘(M) comprehensive and specialized assess-
ments of the skill levels and service needs of 
adults and dislocated workers, which may in-
clude— 
‘‘(i) diagnostic testing and use of 
other assessment tools; and 
‘‘(ii) in-depth interviewing and evalua-
tion to identify employment barriers and 
appropriate employment goals; 
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110 
‘‘(N) development of an individual employ-
ment plan, to identify the employment goals, 
appropriate achievement objectives, and appro-
priate combination of services for the participa-
tion to achieve the employment goals; 
‘‘(O) group counseling; 
‘‘(P) individual counseling and career plan-
ning; 
‘‘(Q) case management; 
‘‘(R) short-term prevocational services, in-
cluding development of learning skills, commu-
nications skills, interviewing skills, punctuality, 
personal maintenance skills, and professional 
conduct, to prepare individuals for unsubsidized 
employment or training; 
‘‘(S) internships and work experience; 
‘‘(T) literacy activities relating to basic 
work readiness, information and communication 
technology literacy activities, and financial lit-
eracy activities, if such activities are not avail-
able to participants in the local area under pro-
grams administered under the Adult Education 
and Family Literacy Act (20 U.S.C. 2901 et 
seq.); and 
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111 
‘‘(U) out-of-area job search assistance and 
relocation assistance.’’. 
(C) DELIVERY
OF
SERVICES.—Section 
134(c)(3) (29 U.S.C. 2864(c)(3) (as redesig-
nated by paragraph (3) of this subsection) is 
amended to read as follows: 
‘‘(3) DELIVERY OF SERVICES.—The work ready 
services described in paragraph (M) through (U) 
shall be provided through the one-stop delivery sys-
tem and may be provided through contracts with 
public, private for-profit, and private nonprofit serv-
ice providers, approved by the local board.’’. 
(D) 
TRAINING
SERVICES.—Section 
134(c)(4) (as redesignated by paragraph (3) of 
this subsection) is amended— 
(i) by amending subparagraph (A) to 
read as follows: 
‘‘(A) IN GENERAL.—Funds allocated to a 
local area under section 133(b) shall be used to 
provide training services to adults who— 
‘‘(i) after an interview, evaluation, or 
assessment, and case management, have 
been determined by a one-stop operator or 
one-stop partner, as appropriate, to— 
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112 
‘‘(I) be in need of training serv-
ices to obtain or retain suitable em-
ployment; and 
‘‘(II) have the skills and quali-
fications to successfully participate in 
the selected program of training serv-
ices; 
‘‘(ii) select programs of training serv-
ices that are directly linked to the employ-
ment opportunities in the local area in-
volved or in another area in which the 
adults receiving such services are willing to 
commute or relocate; 
‘‘(iii) who meet the requirements of 
subparagraph (B); and 
‘‘(iv) who are determined eligible in 
accordance with the priority system in ef-
fect under subparagraph (E).’’; 
(ii) in subparagraph (B)(i), by strik-
ing ‘‘Except’’ and inserting ‘‘Notwith-
standing section 479B of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087uu) 
and except’’; 
(iii) by amending subparagraph (D) to 
read as follows: 
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114 
‘‘(i) IN GENERAL.—A priority shall be 
given to unemployed individuals and em-
ployed workers who need training services 
to retain employment or to advance in a 
career for the provision of intensive and 
training services under this subsection. 
‘‘(ii) DETERMINATIONS.—The Gov-
ernor and the appropriate local board shall 
direct the one-stop operators in the local 
area with regard to making determinations 
with respect to the priority of service under 
this subparagraph.’’; 
(v) in subparagraph (F), by striking 
clause (iii) and inserting the following: 
‘‘(iii) CAREER
ENHANCEMENT
AC-
COUNTS.—An individual who seeks train-
ing services and who is eligible pursuant to 
subparagraph (A), may, in consultation 
with a case manager, select an eligible pro-
vider of training services from the list or 
identifying information for providers de-
scribed in clause (ii)(I). Upon such selec-
tion, the one-stop operator involved shall, 
to the extent practicable, refer such indi-
vidual to the eligible provider of training 
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115 
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 
ACCOUNTS’’ and inserting ‘‘CAREER 
ENHANCEMENT ACCOUNTS’’; 
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116 
(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 
higher education in order to facilitate 
the training of multiple individuals in 
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117 
high-demand occupations, if such con-
tract does not limit customer choice.’’. 
(IV) in clause (iv)— 
(aa) by redesignating sub-
clause (IV) as subclause (V) and 
inserting after subclause (III) the 
following: 
‘‘(IV) Individuals with disabil-
ities.’’. 
(5) PERMISSIBLE ACTIVITIES.—Section 134(d) 
(as redesignated by paragraph (3)) is amended— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) DISCRETIONARY ONE-STOP DELIVERY AC-
TIVITIES.— 
‘‘(A) IN GENERAL.—Funds allocated to a 
local area under section 133(b) may be used to 
provide, through the one-stop delivery system— 
‘‘(i) customized screening and referral 
of qualified participants in training serv-
ices to employers; 
‘‘(ii) customized employment-related 
services to employers on a fee-for-service 
basis; 
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118 
‘‘(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 improve services to 
local employers, including small employers 
in the local area, and increase linkages be-
tween the local workforce investment sys-
tem and employers; 
‘‘(vi) activities to facilitate remote ac-
cess to services provided through a one- 
stop delivery system, including facilitating 
access through the use of technology; and 
‘‘(vii) activities to carry out business 
services and strategies that meet the work-
force investment needs of local area em-
ployers, as determined by the local board, 
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119 
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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120 
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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tem and in collaboration with the appro-
priate programs and resources of the one- 
stop partners, work support activities de-
signed to assist low-wage workers in re-
taining and enhancing employment. The 
one stop partners shall coordinate the ap-
propriate programs and resources of the 
partners with the activities and resources 
provided under this subparagraph. 
‘‘(ii) ACTIVITIES.—The activities de-
scribed in clause (i) may include assistance 
in accessing financial supports for which 
such workers may be eligible and the provi-
sion of activities available through the one- 
stop delivery system in a manner that en-
hances the opportunities of such workers 
to participate, such as the provision of em-
ployment and training activities during 
nontraditional hours and the provision of 
on-site child care while such activities are 
being provided.’’; and 
(B) by adding after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) INCUMBENT
WORKER
TRAINING
PRO-
GRAMS.— 
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123 
‘‘(A) IN GENERAL.—The local board may 
use up to 10 percent of the funds allocated to 
a local area under section 133(b) to carry out 
incumbent worker training programs in accord-
ance with this paragraph. 
‘‘(B) TRAINING ACTIVITIES.—The training 
programs for incumbent workers under this 
paragraph shall be carried out by the local area 
in conjunction with the employers of such work-
ers for the purpose of assisting such workers in 
obtaining the skills necessary to retain employ-
ment and avert layoffs. 
‘‘(C) EMPLOYER MATCH REQUIRED.— 
‘‘(i) IN GENERAL.—Employers partici-
pating in programs under this paragraph 
shall be required to pay a proportion of the 
costs of providing the training to the in-
cumbent workers of the employers. The 
State board, in consultation with the local 
board as appropriate, shall establish the 
required portion of such costs, which may 
include in-kind contributions. The required 
portion shall not be less than— 
‘‘(I) 10 percent of the costs, for 
employers with 50 or fewer employees; 
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124 
‘‘(II) 25 percent of the costs, for 
employers with more than 50 employ-
ees but fewer than 100 employees; 
and 
‘‘(III) 50 percent of the costs, for 
employers with 100 or more employ-
ees. 
‘‘(ii) CALCULATION OF MATCH.—The 
wages paid by an employer to a worker 
while they are attending training may be 
included as part of the requirement pay-
ment of the employer.’’. 
SEC. 113. PERFORMANCE ACCOUNTABILITY SYSTEM. 
(a) STATE PERFORMANCE MEASURES.— 
(1) 
IN
GENERAL.—Section 
136(b)(1) 
(29 
U.S.C. 2871(b)(1)) is amended— 
(A) in subparagraph (A)(i), by striking 
‘‘and the customer satisfaction indicator of per-
formance described in paragraph (2)(B)’’; and 
(B) in subparagraph (A)(ii), by striking 
‘‘paragraph (2)(C)’’ and inserting ‘‘paragraph 
(2)(B)’’. 
(2) INDICATORS
OF
PERFORMANCE.—Section 
136(b)(2) (29 U.S.C. 2871(b)(2)) is amended— 
(A) in subparagraph (A)(i)— 
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125 
(i) by striking ‘‘(except for self-service 
and information activities) and (for partici-
pants who are eligible youth age 19 
through 21) for youth activities authorized 
under section 129’’; 
(ii) in subclause (II), by striking ‘‘6 
months after entry into the employment’’ 
and inserting ‘‘and’’ after the semicolon; 
and 
(iii) by striking subclause (III), and 
inserting the following: 
‘‘(III) average earnings from un-
subsidized employment.’’; 
(B) by striking subclause (IV) of subpara-
graph (A)(i); 
(C) by amending subparagraph (A)(ii) to 
read as follows: 
‘‘(ii) CORE INDICATORS FOR ELIGIBLE 
YOUTH.—The core indicators of perform-
ance for youth activities authorized under 
section 129 shall consist of— 
‘‘(I) entry into employment, edu-
cation or advanced training, or mili-
tary service; 
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‘‘(II) attainment of secondary 
school diploma, General Educational 
Development credential (GED), or 
other State-recognized equivalent or 
certificate (including recognized alter-
native standards for individuals with 
disabilities); and 
‘‘(III) 
literacy 
or 
numeracy 
gains.’’; 
(D) by striking subparagraph (B); and 
(E) by redesignating subparagraph (C) as 
subparagraph (B), and by adding at the end of 
such subparagraph the following new sentence: 
‘‘Such indicators may include customer satisfac-
tion of employers and participants with services 
received from the workforce investment activi-
ties authorized under this subtitle.’’. 
(3) 
LEVELS
OF
PERFORMANCE.—Section 
136(b)(3)(A) (29 U.S.C. 2871(b)(3)(A)) is amend-
ed— 
(A) in clause (i), by striking ‘‘and the cus-
tomer satisfaction indicator described in para-
graph (2)(B)’’; 
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127 
(B) in clause (ii), by striking ‘‘and the cus-
tomer satisfaction indicator of performance, for 
the first 3’’ and inserting ‘‘for the 2’’; 
(C) in clause (iii)— 
(i) in the heading, by striking ‘‘FOR 
FIRST 3 YEARS’’; and 
(ii) by striking ‘‘and the customer sat-
isfaction indicator of performance, for the 
first 3’’ and inserting ‘‘for the 2’’; 
(D) in clause (iv)— 
(i) by striking subclause (I); 
(ii) by redesignating subclauses (II) 
and (III) as subclauses (I) and (II), re-
spectively; and 
(iii) in subclause (I) (as so redesig-
nated)— 
(I) by striking ‘‘taking into ac-
count’’ and inserting ‘‘which shall be 
adjusted based on’’; 
(II) by inserting ‘‘, such as un-
employment rates and job losses or 
gains in particular industries’’ after 
‘‘economic conditions’’; and 
(III) by inserting ‘‘, such as indi-
cators of poor work history, lack of 
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128 
work 
experience, 
dislocation 
from 
high-wage employment, low levels of 
literacy or English proficiency, dis-
ability status, including the number of 
veterans with disabilities, and welfare 
dependency’’ after ‘‘program’’; 
(E) by striking clause (v) and redesig-
nating clause (vi) as clause (v). 
(4) 
ADDITIONAL
INDICATORS.—Section 
136(b)(3)(B) is amended by striking ‘‘paragraph 
(2)(C)’’ and inserting ‘‘paragraph (2)(B)’’. 
(b) LOCAL
PERFORMANCE
MEASURES.—Section 
136(c) (29 U.S.C. 2871(c)) is amended— 
(1) in paragraph (1)(A)(i), by striking ‘‘, and 
the customer satisfaction indicator of performance 
described in subsection (b)(2)(B),’’; 
(2) in paragraph (1)(A)(ii), by striking ‘‘sub-
section 
(b)(2)(C)’’ 
and 
inserting 
‘‘subsection 
(b)(2)(B)’’; and 
(3) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) DETERMINATIONS.—In determining such 
local levels of performance, the local board, the chief 
elected official, and the Governor shall ensure such 
levels are adjusted based on the specific economic 
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129 
characteristics (such as unemployment rates and job 
losses or gains in particular industries), demographic 
characteristics, or other characteristics of the popu-
lation to be served in the local area, such as poor 
work history, lack of work experience, dislocation 
from high-wage employment, low levels of literacy or 
English proficiency, disability status, including the 
number of veterans with disabilities, and welfare de-
pendency.’’. 
(c) REPORT.—Section 136(d) (29 U.S.C. 2871(d)) is 
amended— 
(1) in paragraph (1), by striking ‘‘and the cus-
tomer satisfaction indicator’’ in both places that it 
appears; 
(2) in paragraph (2)— 
(A) in subparagraph (E), by striking ‘‘(ex-
cluding participants who received only self-serv-
ice and informational activities); and’’ and in-
serting a semicolon; 
(B) in subparagraph (F), by striking the 
period and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(G) the number of participants who have 
received services other than followup services, 
authorized under this title, in the form of work 
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ready services described in section 134(d)(2), 
and training services described in section 
134(d)(4), respectively; 
‘‘(H) the number of participants who have 
received followup services authorized under this 
title; and 
‘‘(I) the cost per participant for services 
authorized under this title.’’; and 
(3) by adding at the end the following: 
‘‘(4) DATA VALIDATION.—In preparing the re-
ports described in this subsection, the States shall 
establish procedures, consistent with guidelines 
issued by the Secretary, to ensure the information 
contained in the report is valid and reliable.’’. 
(d) SANCTIONS
FOR STATE.—Section 136(g) (29 
U.S.C. 2871(g)) is amended— 
(1) in paragraph (1)(A), by striking ‘‘or (B)’’; 
and 
(2) in paragraph (2), by striking ‘‘section 503’’ 
and inserting ‘‘section 136(i)’’. 
(e) SANCTIONS FOR LOCAL AREAS.—Section 136(h) 
(29 U.S.C. 2871(h)) is amended— 
(1) in paragraph (1), by striking ‘‘or (B)’’; and 
(2) by amending paragraph (2)(B) to read as 
follows: 
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131 
‘‘(B) APPEAL TO GOVERNOR.—A local area 
that is subject to a reorganization plan under 
subparagraph (A) may, not later than 30 days 
after receiving notice of the reorganization plan, 
appeal to the Governor to rescind or revise such 
plan. In such case, the Governor shall make a 
final decision not later than 30 days after the 
receipt of the appeal.’’. 
(f) INCENTIVE GRANTS.—Section 136(i) (29 U.S.C. 
2871(i)) is amended to read as follows: 
‘‘(i) INCENTIVE GRANTS FOR STATES AND LOCAL 
AREAS.— 
‘‘(1) INCENTIVE GRANTS FOR STATES.— 
‘‘(A) IN
GENERAL.—From funds appro-
priated under section 174, the Secretary may 
award incentive grants to States for exemplary 
performance in carrying programs under chap-
ters 4 and 5 of this title. Such awards may be 
based on States meeting or exceeding the per-
formance measures established under this sec-
tion, on the performance of the State in serving 
special populations, including the levels of serv-
ice provided and the performance outcomes, and 
such other factors relating to the performance 
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132 
of the State under this title as the Secretary 
determines is appropriate. 
‘‘(B) USE OF FUNDS.—The funds awarded 
to a State under this paragraph may be used to 
carry out any activities authorized under chap-
ters 4 and 5 of this title, including— 
‘‘(i) activities that provide technical 
assistance to local areas to replicate best 
practices for workforce and education pro-
grams; 
‘‘(ii) activities that support the needs 
of businesses, especially for incumbent 
workers and enhancing opportunities for 
retention and advancement; 
‘‘(iii) activities that support linkages 
between the workforce and education pro-
grams, and secondary, postsecondary, or 
career and technical education programs, 
including activities under the Carl D. Per-
kins Career and Technical Education Act 
(20 U.S.C. 2301 et seq.), the Adult Edu-
cation and Family Literacy Act (20 U.S.C. 
9201 et seq.), and the Rehabilitation Act 
of 1973 (29 U.S.C. 701 et seq.); 
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133 
‘‘(iv) activities that support regional 
economic development plans that support 
high-wage, high-skill, or high-demand occu-
pations leading to self-sufficiency; 
‘‘(v) activities that coordinate the 
workforce and education programs with 
other Federal and State programs related 
to the workforce and education programs; 
‘‘(vi) activities that support the devel-
opment of an integrated performance in-
formation system that includes common 
measures for one-stop partner programs 
described in section 121; 
‘‘(vii) activities that support activities 
to improve performance in workforce and 
education programs and program coordina-
tion of workforce and education programs; 
or 
‘‘(viii) activities that leverage addi-
tional training resources, other than those 
provided through workforce and education 
programs, for adults and youth. 
‘‘(2) INCENTIVE GRANTS FOR LOCAL AREAS.— 
‘‘(A) IN GENERAL.—From funds reserved 
under sections 128(a) and 133(a), the Governor 
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134 
may award incentive grants to local areas for 
exemplary performance with respect to the 
measures established under this section and 
with the performance of the local area in serv-
ing special populations, including the levels of 
service and the performance outcomes. 
‘‘(B) USE OF FUNDS.—The funds awarded 
to a local area may be used to carry out activi-
ties authorized for local areas under chapters 4 
and 5 of this title, the Adult Education and 
Family Literacy Act, and the Rehabilitation Act 
of 1973 (referred to in this subsection as ‘work-
force and education programs’), and such inno-
vative projects or programs that increase co-
ordination and enhance service to participants 
in such programs, particularly hard-to-serve 
populations, as may be approved by the Gov-
ernor, including— 
‘‘(i) activities that support the needs 
of businesses, especially for incumbent 
workers and enhancing opportunities for 
retention and advancement; 
‘‘(ii) activities that support linkages 
between the workforce and education pro-
grams, and secondary, postsecondary, or 
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career and technical education programs, 
including activities under the Carl D. Per-
kins Career and Technical Education Act 
(20 U.S.C. 2301 et seq.), the Adult Edu-
cation and Family Literacy Act (20 U.S.C. 
9201 et seq.), and the Rehabilitation Act 
of 1973 (29 U.S.C. 701 et seq.); 
‘‘(iii) activities that support regional 
economic development plans that support 
high-wage, high-skill, or high-demand occu-
pations leading to self-sufficiency; 
‘‘(iv) activities that coordinate the 
workforce and education programs with 
other Federal and State programs related 
to the workforce and education programs; 
‘‘(v) activities that support the devel-
opment of an integrated performance in-
formation system that includes common 
measures for one-stop partner programs 
described in section 121; 
‘‘(vi) activities that support activities 
to improve performance in workforce and 
education programs and program coordina-
tion of workforce and education programs; 
or 
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136 
‘‘(vii) activities that leverage addi-
tional training resources, other than those 
provided through workforce and education 
programs, for adults and youth.’’. 
(g) USE OF CORE INDICATORS FOR OTHER PRO-
GRAMS.—Section 136 (29 U.S.C. 2871) is further amend-
ed by adding at the end the following subsection: 
‘‘(j) USE OF CORE INDICATORS FOR OTHER PRO-
GRAMS.—In addition to the programs carried out under 
chapters 4 and 5, and consistent with the requirements 
of the applicable authorizing laws, the Secretary shall use 
the core indicators of performance described in subsection 
(b)(2)(A) to assess the effectiveness of the programs de-
scribed under section 121(b)(1)(B) that are carried out 
by the Secretary.’’. 
(h) REPEAL OF DEFINITIONS.—Sections 502 and 
503 (and the items related to such sections in the table 
of contents) are repealed. 
SEC. 114. AUTHORIZATION OF APPROPRIATIONS. 
(a) YOUTH ACTIVITIES.—Section 137(a) (29 U.S.C. 
2872(a)) is amended by striking ‘‘such sums as may be 
necessary for each of fiscal years 1999 through 2003’’ and 
inserting ‘‘such sums as may be necessary for each of fis-
cal year 2008 through 2012’’. 
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137 
(b) ADULT EMPLOYMENT AND TRAINING ACTIVI-
TIES.—Section 137(b) (29 U.S.C. 2872(b)) is amended by 
striking ‘‘section 132(a)(1), such sums as may be nec-
essary for each of fiscal years 1999 through 2003’’ and 
inserting ‘‘section 132(a), such sums as may be necessary 
for each of fiscal years 2008 through 2012’’. 
(c) 
DISLOCATED
WORKER
EMPLOYMENT
AND 
TRAINING ACTIVITIES.—Section 137 is further amended 
by striking subsection (c). 
SEC. 115. JOB CORPS. 
(a) PROGRAM ACTIVITIES.—Section 148(a) is amend-
ed by striking paragraph (1) and inserting the following: 
‘‘(1) IN
GENERAL.—Each Job Corps Center 
shall provide enrollees with an intensive, well orga-
nized, and fully supervised program of education, ca-
reer training, work experience, recreational activities, 
physical rehabilitation and development, and coun-
seling. Each Job Corps center shall provide enrollees 
assigned to the center with access to work ready 
services described in section 134(c)(2).’’. 
(b) INDUSTRY
COUNCILS.—Section 154(b) (29 
U.S.C. 2894(b)) is amended— 
(1) in paragraph (1)(A), by striking ‘‘local and 
distant’’; and 
(2) by adding after paragraph (2) the following: 
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138 
‘‘(3) EMPLOYERS OUTSIDE OF LOCAL AREAS.— 
The industry council may include, or otherwise pro-
vide for consultation with, employers from outside 
the local area who are likely to hire a significant 
number of enrollees from the Job Corps center. 
‘‘(4) SPECIAL RULE FOR SINGLE LOCAL AREA 
STATES.—In the case of a single local area State 
designated under section 116(b), the industry coun-
cil shall include a representative of the State 
Board.’’. 
(c) INDICATORS OF PERFORMANCE AND ADDITIONAL 
INFORMATION.—Section 159(c) (29 U.S.C. 2893(c)) is 
amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) CORE INDICATORS.—The Secretary shall 
annually establish expected levels of performance for 
Job Corps centers and the Job Corps program relat-
ing to each of the following core indicators of per-
formance for youth— 
‘‘(A) entry into education, employment, 
military service or advanced training; 
‘‘(B) attainment of a secondary school di-
ploma, General Educational Development cre-
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139 
dential (GED), or other State-recognized equiv-
alent; and 
‘‘(C) literacy or numeracy gains.’’; and 
(2) in paragraph (2), by striking ‘‘measures’’ 
each place it appears and inserting ‘‘indicators’’. 
(d) AUTHORIZATION OF APPROPRIATIONS.—Section 
161 (29 U.S.C. 2901) is amended by striking ‘‘1999 
through 2003’’ and inserting ‘‘2008 through 2012’’. 
(e) REPEAL OF REQUIREMENT RELATING TO FED-
ERAL ADMINISTRATION.—Section 102 of the Departments 
of Labor, Health and Human Services, and Education, 
and Related Agencies Appropriations Act, 2006 (Public 
Law 109–149) is repealed. 
SEC. 116. NATIVE AMERICAN PROGRAMS. 
(a) ADVISORY COUNCIL.—Section 166(h)(4)(C) (29 
U.S.C. 2911(h)(4)(C)) is amended to read as follows: 
‘‘(C) DUTIES.—The Council shall advise 
the Secretary on the operation and administra-
tion of the programs assisted under this sec-
tion.’’. 
(b) ASSISTANCE
TO AMERICAN SAMOANS
IN HA-
WAII.—Section 166 (29 U.S.C. 2911) is further amended 
by striking subsection (j). 
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140 
SEC. 117. MIGRANT AND SEASONAL FARMWORKER PRO-
GRAMS. 
Section 167(d) is amended by inserting ‘‘(including 
permanent housing)’’ after ‘‘housing’’. 
SEC. 118. VETERANS’ WORKFORCE INVESTMENT PRO-
GRAMS. 
Section 168(a)(3)(C) (29 U.S.C. 2913 (a)(3)(C)) is 
amended by striking ‘‘section 134(c)’’ and inserting ‘‘sec-
tion 121(e)’’. 
SEC. 119. YOUTH CHALLENGE GRANTS. 
(a) IN GENERAL.—Section 169 (29 U.S.C. 2914) is 
amended to read as follows: 
‘‘SEC. 169. YOUTH CHALLENGE GRANTS. 
‘‘(a) IN GENERAL.—Of the amounts reserved by the 
Secretary under section 127(a)(1)(A) for a fiscal year— 
‘‘(1) the Secretary shall use not less than 80 
percent to award competitive grants under sub-
section (b); and 
‘‘(2) the Secretary may use not more than 20 
percent to award discretionary grants under sub-
section (c). 
‘‘(b) COMPETITIVE GRANTS TO STATES AND LOCAL 
AREAS.— 
‘‘(1) ESTABLISHMENT.—From the funds de-
scribed in subsection (a)(1), the Secretary shall 
award competitive grants to eligible entities to carry 
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141 
out activities authorized under this section to assist 
eligible youth in acquiring the skills, credentials and 
employment experience necessary to succeed in the 
labor market. 
‘‘(2) ELIGIBLE ENTITIES.—Grants under this 
subsection may be awarded to States, local boards, 
recipients of grants under section 166 (relating to 
Native American programs), and public or private 
entities (including consortia of such entities) apply-
ing in conjunction with local boards. 
‘‘(3) GRANT
PERIOD.—The Secretary may 
make a grant under this section for a period of 1 
year and may renew the grants for each of the 4 
succeeding years. 
‘‘(4) AUTHORITY
TO
REQUIRE
MATCH.—The 
Secretary may require that grantees under this sub-
section provide a non-Federal share of the cost of 
activities carried out under a grant awarded under 
this subsection. 
‘‘(5) PARTICIPANT
ELIGIBILITY.—Youth ages 
14 through 19 as of the time the eligibility deter-
mination is made may be eligible to participate in 
activities provided under this subsection. 
‘‘(6) USE OF FUNDS.—Funds under this sub-
section may be used for activities that are designed 
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142 
to assist youth in acquiring the skills, credentials 
and employment experience that are necessary to 
succeed in the labor market, including the activities 
identified in section 129. The activities may include 
activities such as— 
‘‘(A) training and internships for out-of- 
school youth in sectors of the economy experi-
encing or projected to experience high growth; 
‘‘(B) after-school dropout prevention activi-
ties for in-school youth; 
‘‘(C) activities designed to assist special 
youth populations, such as court-involved youth 
and youth with disabilities; and 
‘‘(D) activities combining remediation of 
academic skills, work readiness training, and 
work experience, and including linkages to post-
secondary education, apprenticeships, and ca-
reer-ladder employment. 
‘‘(7) APPLICATIONS.—To be eligible to receive a 
grant under this subsection, an eligible entity shall 
submit an application to the Secretary at such time, 
in such manner, and containing such information as 
the Secretary may require, including— 
‘‘(A) a description of the activities the eli-
gible entity will provide to eligible youth under 
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this subsection and how the eligible entity will 
collaborate with State and local workforce in-
vestment systems established under this title in 
the provisions of such activities; 
‘‘(B) a description of the programs of dem-
onstrated effectiveness on which the provision 
of the activities under subparagraph (A) are 
based, and a description of how such activities 
will expand the base of knowledge relating to 
the provision of activities for youth; 
‘‘(C) a description of the private and pub-
lic, and local and State resources that will be le-
veraged to provide the activities described under 
subparagraph (A) in addition to the funds pro-
vided under this subsection and a description of 
the extent of the involvement of employers in 
the activities; and 
‘‘(D) the levels of performance the eligible 
entity expects to achieve with respect to the in-
dicators of performance for youth specified in 
section 136(b)(2)(A)(ii). 
‘‘(8) FACTORS FOR AWARD.— 
‘‘(A) IN
GENERAL.—In awarding grants 
under this subsection the Secretary shall con-
sider— 
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‘‘(i) the quality of the proposed activi-
ties; 
‘‘(ii) the goals to be achieved; 
‘‘(iii) the likelihood of successful im-
plementation; 
‘‘(iv) the extent to which the proposed 
activities are based on proven strategies or 
the extent to which the proposed activities 
will expand the base of knowledge relating 
to the provision of activities for eligible 
youth; 
‘‘(v) the extent of collaboration with 
the State and local workforce investment 
systems in carrying out the proposed ac-
tivities; 
‘‘(vi) the extent of employer involve-
ment in the proposed activities; 
‘‘(vii) whether there are other Federal 
and non-Federal funds available for similar 
activities to the proposed activities, and the 
additional State, local, and private re-
sources that will be provided to carry out 
the proposed activities; 
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‘‘(viii) the quality of the proposed ac-
tivities in meeting the needs of the eligible 
youth to be served; and 
‘‘(ix) the extent to which the proposed 
activities will expand on services provided 
under section 127. 
‘‘(B) EQUITABLE GEOGRAPHIC DISTRIBU-
TION.—In awarding grants under this sub-
section the Secretary shall ensure an equitable 
distribution of such grants across geographi-
cally diverse areas. 
‘‘(9) EVALUATION.—The Secretary may reserve 
up to 5 percent of the funds described in sub-
section(a)(1) to provide technical assistance to, and 
conduct evaluations of the projects funded under 
this subsection (using appropriate techniques as de-
scribed in section 172(c)). 
‘‘(c) DISCRETIONARY GRANTS FOR YOUTH ACTIVI-
TIES.— 
‘‘(1) IN GENERAL.—From the funds described 
in subsection(a)(2), the Secretary may award grants 
to eligible entities to provide activities that will as-
sist youth in preparing for, and entering and retain-
ing, employment. 
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‘‘(2) ELIGIBLE ENTITIES.—Grants under this 
subsection may be awarded to public or private enti-
ties that the Secretary determines would effectively 
carry out activities relating to youth under this sub-
section. 
‘‘(3) PARTICIPANT
ELIGIBILITY.—Youth ages 
14 through 19 at the time the eligibility determina-
tion is made may be eligible to participate in activi-
ties under this subsection. 
‘‘(4) USE OF FUNDS.—Funds provided under 
this subsection may be used for activities that will 
assist youth in preparing for, and entering and re-
taining, employment, including the activities de-
scribed in section 129 for out-of-school youth, activi-
ties designed to assist in-school youth to stay in 
school and gain work experience, and such other ac-
tivities that the Secretary determines are appro-
priate. 
‘‘(5) APPLICATIONS.—To be eligible to receive a 
grant under this subsection, an eligible entity shall 
submit an application to the Secretary at such time, 
in such manner, and containing such information as 
the Secretary may require. 
‘‘(6) ADDITIONAL
REQUIREMENTS.—The Sec-
retary may require the provision of a non-Federal 
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share for projects funded under this subsection and 
may require participation of grantees in evaluations 
of such projects, including evaluations using the 
techniques as described in section 172(c).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) is amended by amending the item related 
to section 169 to read as follows: 
‘‘Sec. 169. Youth challenge grants.’’. 
SEC. 120. TECHNICAL ASSISTANCE. 
Section 170 (29 U.S.C. 2915) is amended— 
(1) by striking subsection (b); 
(2) by striking 
‘‘(a) GENERAL TECHNICAL ASSISTANCE.—’’; 
(3) by redesignating paragraphs (1), (2), and 
(3) as subsections (a), (b), and (c) respectively, and 
moving such subsections 2 ems to the left; 
(4) in subsection (a) (as redesignated by para-
graph (3))— 
(A) by inserting ‘‘the training of staff pro-
viding rapid response services, the training of 
other staff of recipients of funds under this 
title, peer review activities under this title, as-
sistance regarding accounting and program op-
eration practices (when such assistance would 
not be duplicative to assistance provided by the 
State), technical assistance to States that do 
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148 
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 2007’’; and 
(5) by inserting, after subsection (c) (as redes-
ignated by paragraph (3)), the following: 
‘‘(d) BEST PRACTICES COORDINATION.—The Sec-
retary shall— 
‘‘(1) establish a system through which States 
may share information regarding best practices with 
regard to the operation of workforce investment ac-
tivities under this Act; 
‘‘(2) evaluate and disseminate information re-
garding best practices and identify knowledge gaps; 
and 
‘‘(3) commission research under section 171(c) 
to address knowledge gaps identified under para-
graph (2).’’. 
SEC. 121. DEMONSTRATION, PILOT, MULTISERVICE, RE-
SEARCH AND MULTI-STATE PROJECTS. 
(a) DEMONSTRATION AND PILOT PROJECTS.—Sec-
tion 171(b) (29 U.S.C. 2916(b)) is amended— 
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(1) in paragraph (1)— 
(A) by striking ‘‘Under a’’ and inserting 
‘‘Consistent with the priorities specified in the’’; 
(B) 
by 
amending 
subparagraphs 
(A) 
through (D) to read as follows: 
‘‘(A) projects that assist national employ-
ers in connecting with the workforce investment 
system established under this title in order to 
facilitate the recruitment and employment of 
needed workers and to provide information to 
such system on skills and occupations in de-
mand; 
‘‘(B) projects that promote the develop-
ment of systems that will improve the effective-
ness and efficiency of programs carried out 
under this title; 
‘‘(C) projects that focus on opportunities 
for employment in industries and sectors of in-
dustries that are experiencing or are likely to 
experience high rates of growth, including those 
relating to information technology; 
‘‘(D) projects carried out by States and 
local areas to test innovative approaches to de-
livering employment-related services;’’; 
(C) by striking subparagraph (E); 
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(D) by redesignating subparagraphs (F) 
and (G) as subparagraphs (E) and (F), respec-
tively; 
(E) in subparagraph (F) (as so redesig-
nated, by striking ‘‘; and’’ and inserting a semi-
colon; 
(F) by inserting after subparagraph (F) 
(as so redesignated) the following: 
‘‘(G) projects carried out by States and 
local areas to assist adults or out of school 
youth in starting a small business, including 
training and assistance in business or financial 
management or in developing other skills nec-
essary to operate a business;’’; and 
(G) by amending subparagraph (H) to 
read as follows: 
‘‘(H) projects that focus on opportunities 
for employment in industries and sectors of in-
dustries that are being transformed by tech-
nology and innovation requiring new knowledge 
or skill sets for workers, including advanced 
manufacturing; and’’; and 
(2) in paragraph (2)— 
(A) by striking subparagraph (B); and 
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(B) by redesignating subparagraph (C) as 
subparagraph (B). 
(b) 
MULTISERVICE
PROJECTS.—Section 
171(c)(2)(B) (29 U.S.C. 2916(c)(2)(B)) is amended to 
read as follows: 
‘‘(B) NET
IMPACT
STUDIES
AND
RE-
PORTS.—The Secretary shall conduct studies to 
determine the net impacts of programs, serv-
ices, and activities carried out under this title. 
The Secretary shall prepare and disseminate to 
Congress and the public reports containing the 
results of such studies.’’. 
SEC. 122. COMMUNITY-BASED JOB TRAINING. 
Section 171(d) is amended to read as follows: 
‘‘(d) COMMUNITY-BASED JOB TRAINING.— 
‘‘(1) DEMONSTRATION
PROJECT.—In addition 
to the demonstration projects under subsection (b), 
the Secretary may establish and implement a na-
tional demonstration project designed to develop 
local solutions to the workforce challenges facing 
high-growth, high-skill industries with labor short-
ages, and increase opportunities for workers to gain 
access to employment in high-growth, high-demand 
occupations by promoting the establishment of part-
nerships among education entities, the workforce in-
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vestment system, and businesses in high-growth, 
high-skill industries. 
‘‘(2) GRANTS.—In carrying out the demonstra-
tion project under this subsection, the Secretary 
shall award competitive grants, in accordance with 
generally applicable Federal requirements, to eligible 
entities to carry out activities authorized under this 
subsection. 
‘‘(3) DEFINITIONS.— 
‘‘(A) ELIGIBLE
ENTITY.—In this sub-
section, the term ‘eligible entity’ means a com-
munity college or consortium of community col-
leges that shall work in conjunction with— 
‘‘(i) the local workforce investment 
system; and 
‘‘(ii) business or businesses in a quali-
fied industry or an industry association in 
a qualified industry. 
‘‘(B) QUALIFIED INDUSTRY.—In this sub-
section, the term ‘qualified industry’ means an 
industry or economic sector that is projected to 
experience significant growth, such as an indus-
try and economic sector that— 
‘‘(i) is projected to add substantial 
numbers of new jobs to the economy; 
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‘‘(ii) has significant impact on the 
economy; 
‘‘(iii) impacts the growth of other in-
dustries and economic sectors; 
‘‘(iv) is being transformed by tech-
nology 
and 
innovation 
requiring 
new 
knowledge or skill sets for workers; 
‘‘(v) is a new or emerging industry or 
economic sector that is projected to grow; 
or 
‘‘(vi) has high-skilled occupations and 
significant labor shortages in the local 
area. 
‘‘(C) COMMUNITY COLLEGE.—As used in 
this subsection, the term ‘community college’ 
means an institution of higher education, as de-
fined in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001), that provides 
not less than a 2-year program that is accept-
able for full credit toward a bachelor’s degree, 
or is a tribally controlled college or university. 
‘‘(4) AUTHORITY
TO
REQUIRE
NON-FEDERAL 
SHARE.—The Secretary may require that recipients 
of grants under this subsection provide a non-Fed-
eral share, from either cash or noncash resources, of 
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the costs of activities carried out under a grant 
awarded under this subsection. 
‘‘(5) USE OF FUNDS.—Grants awarded under 
this subsection may be used for— 
‘‘(A) the development, by a community col-
lege, in consultation with representatives of 
qualified industries, of rigorous training and 
education programs related to employment in a 
qualified industry identified in the eligible enti-
ty’s application; 
‘‘(B) training of adults and dislocated 
workers in the skills and competencies needed 
to obtain or upgrade employment in a qualified 
industry identified in the eligible entity’s appli-
cation; 
‘‘(C) disseminating to adults and dis-
located workers, through the one-stop delivery 
system, information on high-growth, high-de-
mand occupations in qualified industries; 
‘‘(D) placing, through the one-stop delivery 
system, trained individuals into employment in 
qualified industries; and 
‘‘(E) increasing the integration of commu-
nity colleges with activities of businesses and 
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the one-stop delivery system to meet the train-
ing needs for qualified industries. 
‘‘(6) APPLICATIONS.—To be eligible to receive a 
grant under this subsection, an eligible entity shall 
submit an application to the Secretary at such time, 
in such manner, and containing such information as 
the Secretary may require, including— 
‘‘(A) a description of the eligible entity 
that will offer training under the grant; 
‘‘(B) an economic analysis of the local 
labor market to identify high-growth, high-de-
mand industries, identify the workforce issues 
faced by those industries, and potential partici-
pants in programs funded under this sub-
section; 
‘‘(C) a description of the qualified industry 
for which training will occur and the availability 
of competencies on which training will be based 
and how the grant will help workers acquire the 
competencies and skills necessary for employ-
ment; 
‘‘(D) an assurance that the application was 
developed in consultation with the local board 
or boards and businesses, including small busi-
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nesses, in the geographic area or areas where 
the proposed grant will be used; 
‘‘(E) performance measures for the grant, 
including expected number of individuals to be 
trained in a qualified industry, the employment 
and retention rates for such individuals in a 
qualified industry, and earnings increases for 
such individuals; 
‘‘(F) a description of how the activities 
funded by the proposed grant will be coordi-
nated with activities provided through the one- 
stop delivery system in the local area or areas; 
and 
‘‘(G) a description of any local or private 
resources that will support the activities carried 
out under this subsection and allow the entity 
to carry out and expand such activities after 
the expiration of the grant. 
‘‘(7) FACTORS FOR AWARD OF GRANT.— 
‘‘(A) IN
GENERAL.—In awarding grants 
under this subsection the Secretary shall con-
sider— 
‘‘(i) the extent of public and private 
collaboration, including existing partner-
ships among industries, community col-
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leges, and the public workforce investment 
system; 
‘‘(ii) the extent to which the grant will 
provide job seekers with employment op-
portunities in high-growth, high-demand 
occupations; 
‘‘(iii) the extent to which the grant 
will expand the eligible entity and local 
one-stop delivery system’s capacity to be 
demand-driven and responsive to local eco-
nomic needs; 
‘‘(iv) the extent to which local busi-
nesses commit to hire or retain individuals 
who receive training through the grant; 
and 
‘‘(v) the extent to which the eligible 
entity commits to make any newly devel-
oped products, such as competencies or 
training curriculum, available for distribu-
tion nationally. 
‘‘(B) LEVERAGING
OF
RESOURCES.—In 
awarding grants under this subsection, the Sec-
retary shall also consider— 
‘‘(i) the extent to which local or pri-
vate resources, in addition to the funds 
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provided under this subsection, will be 
made available to support the activities 
carried out under this subsection; and 
‘‘(ii) the ability of an eligible entity to 
continue to carry out and expand such ac-
tivities after the expiration of the grant. 
‘‘(C) 
DISTRIBUTION
OF
GRANTS.—In 
awarding grants under this subsection the Sec-
retary shall ensure an equitable distribution of 
such grants across geographically diverse areas. 
‘‘(8) PERFORMANCE
ACCOUNTABILITY
AND 
EVALUATION.— 
‘‘(A) PERFORMANCE
ACCOUNTABILITY.— 
The Secretary shall require an eligible entity 
that receives a grant under this subsection to 
report to the Secretary on the employment out-
comes obtained by individuals receiving training 
under this subsection using the indicators of 
performance identified in the eligible entity’s 
grant application. 
‘‘(B) EVALUATION.—The Secretary may 
require that an eligible entity that receives a 
grant under this subsection participate in an 
evaluation of activities carried out under this 
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subsection, including an evaluation using the 
techniques described in section 172(c).’’. 
SEC. 123. EVALUATIONS. 
(a) IMPACT
ANALYSIS.—Section 172(a)(4) (29 
U.S.C. 2917(a)(4)) is amended to read as follows: 
‘‘(4) the impact of receiving services and not re-
ceiving services under such programs and activities 
on the community, businesses, and individuals;’’; and 
(b) 
TECHNIQUES.—Section 
172(c) 
(29 
U.S.C. 
2917(c)) is amended to read as follows: 
‘‘(c) TECHNIQUES.—Evaluations conducted under 
this section shall utilize appropriate and rigorous method-
ology and research designs, including the use of control 
groups chosen by scientific random assignment methodolo-
gies, quasi-experimental methods, impact analysis and the 
use of administrative data. The Secretary shall conduct 
an impact analysis, as described in subsection (a)(4), of 
the formula grant programs under subtitle B not later 
than 2010, and thereafter shall conduct such an analysis 
not less than once every four years.’’. 
SEC. 124. NATIONAL DISLOCATED WORKER GRANTS. 
(a) IN GENERAL.—Section 173 (29 U.S.C. 2916) is 
amended— 
(1) by amending the designation and heading to 
read as follows: 
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‘‘SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.’’; 
and 
(2) in subsection (a)— 
(A) 
by 
striking 
‘‘national 
emergency 
grants’’ in the matter preceding paragraph (1) 
and inserting ‘‘national dislocated worker 
grants’’; and 
(B) in paragraph (1), by striking ‘‘sub-
section (c)’’ and inserting ‘‘subsection (b)’’. 
(3) by striking subsections (b) and (e) and re-
designating subsections (c), (d), (f), and (g) as sub-
sections (b) through (e), respectively; 
(4) in subsection (b)(1)(B) as so redesignated), 
by striking ‘‘, and other entities’’ and all that follows 
and inserting a period; and 
(5) in subsection (b)(2)(A) (as so redesig-
nated)— 
(A) in clause (iii), by striking ‘‘; or’’ and 
inserting a semicolon; 
(B) in clause (iv)(IV) by striking the pe-
riod and inserting ‘‘; or’’; and 
(C) by inserting at the end the following: 
‘‘(v) is the spouse of a member of the 
Armed Forces who is on active duty or 
full-time National Guard duty, or who was 
recently separated from such duties, and 
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161 
such spouse is in need of employment and 
training assistance to obtain or retain em-
ployment.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents in section 1(b) is amended by amending the item 
related to section 173 to read as follows: 
‘‘Sec. 173. National dislocated worker grants.’’. 
SEC. 125. AUTHORIZATION OF APPROPRIATIONS FOR NA-
TIONAL ACTIVITIES. 
(a) IN GENERAL.—Section 174(a)(1) (29 U.S.C. 
2919(a)(1)) is amended by striking ‘‘1999 through 2003’’ 
and inserting ‘‘2008 through 2012’’. 
(b) RESERVATIONS.—Section 174(b) is amended to 
read as follows: 
‘‘(b) TECHNICAL ASSISTANCE; DEMONSTRATION AND 
PILOT PROJECTS; EVALUATIONS; INCENTIVE GRANTS.— 
‘‘(1) DEMONSTRATION AND PILOT PROJECTS.— 
There are authorized to be appropriated to carry out 
section 171, such sums as may be necessary for fis-
cal years 2008 through 2012. 
‘‘(2) TECHNICAL ASSISTANCE, EVALUATIONS.— 
There are authorized to be appropriated to carry out 
section 170, section 172, and section 136 such sums 
as may be necessary for each of fiscal years 2008 
through 2012.’’. 
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SEC. 126. REQUIREMENTS AND RESTRICTIONS. 
(a) IN GENERAL.—Section 181(c)(2)(A) (29 U.S.C. 
2931(c)(2)(A)) is amended in the matter preceding clause 
(i) by striking ‘‘shall’’ and inserting ‘‘may’’. 
(b) 
LIMITATIONS.—Section 
181(e) 
(29 
U.S.C. 
2931(e)) is amended by striking ‘‘training for’’ and insert-
ing ‘‘the entry into employment, retention in employment, 
or increases in earnings of’’. 
(c) SALARY CAP.—Section 181 (29 U.S.C. 2931) is 
further amended by adding at the end the following new 
subsection: 
‘‘(g) SALARY AND BONUS LIMITATION.—No funds 
provided under this title shall be used by a recipient or 
subrecipient of such funds to pay the salary and bonuses 
of an individual, either as direct costs or indirect costs, 
at a rate in excess of Level II of the Federal Executive 
Pay Schedule (5 U.S.C. 5313). This limitation shall not 
apply to vendors providing goods and services as defined 
in OMB Circular A–133. Where States are recipients of 
such funds, States may establish a lower limit for salaries 
and bonuses of those receiving salaries and bonuses from 
subrecipients of such funds, taking into account factors 
including the relative cost-of-living in the State, the com-
pensation levels for comparable State or local government 
employees, and the size of the organizations that admin-
ister the programs.’’. 
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(d) REPORTS
TO
CONGRESS.—Section 185 (29 
U.S.C. 2935) is amended— 
(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 paragraph (e)(2), by inserting ‘‘and the 
Secretary shall submit to the Committee on Edu-
cation and Labor of the House of Representatives 
and the Committee on Health, Education, Labor, 
and Pensions of the Senate,’’ after ‘‘Secretary,’’. 
SEC. 127. NONDISCRIMINATION. 
Section 188(a)(2) (29 U.S.C. 2931(a)(2)) is amended 
to read as follows: 
‘‘(2) PROHIBITION
OF
DISCRIMINATION
RE-
GARDING PARTICIPATION, BENEFITS, AND EMPLOY-
MENT.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), no individual shall be ex-
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cluded from participation in, denied the benefits 
of, subjected to discrimination under, or denied 
employment in the administration of or in con-
nection with, any such program or activity be-
cause of race, color, religion, sex (except as oth-
erwise permitted under title IX of the Edu-
cation Amendments of 1972), national origin, 
age, disability, or political affiliation or belief. 
‘‘(B) EXEMPTION FOR RELIGIOUS ORGANI-
ZATIONS.—Subparagraph (A) shall not apply to 
a recipient of financial assistance under this 
title that is a religious corporation, association, 
educational institution, or society, with respect 
to the employment of individuals of a particular 
religion to perform work connected with the 
carrying on by such corporation, association, 
educational institution, or society of its activi-
ties. Such recipients shall comply with the other 
requirements contained in subparagraph (A).’’. 
SEC. 128. ADMINISTRATIVE PROVISIONS. 
(a) PROGRAM YEAR.—Section 189(g)(1) (29 U.S.C. 
2939(g)(1)) is amended to read as follows: 
‘‘(1) IN GENERAL.—Appropriations for any fis-
cal year for programs and activities carried out 
under this title shall be available for obligation only 
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on the basis of a program year. The program year 
shall begin on July 1 in the fiscal year for which the 
appropriation is made.’’. 
(b) AVAILABILITY.—Section 189(g)(2) (29 U.S.C. 
2939(g)(2)) is amended by striking ‘‘each State’’ and in-
serting ‘‘each recipient’’. 
(c) GENERAL
WAIVERS.—Section 189(i)(4) (29 
U.S.C. 2939(i)(4)) is amended— 
(1) in subparagraph (A)— 
(A) in the matter preceding clause (i), by 
inserting ‘‘, or in accordance with subparagraph 
(D)’’ after ‘‘subparagraph (B)’’; and 
(B) by striking clause (ii), the clause (i) 
designation and the dash preceding such des-
ignation, and moving the remaining text flush 
with the preceding matter; and 
(2) by adding the following subparagraph: 
‘‘(D) EXPEDITED PROCESS FOR EXTEND-
ING
APPROVED
WAIVERS
TO
ADDITIONAL 
STATES.—In lieu of the requirements of sub-
paragraphs (B) and (C), the Secretary may es-
tablish an expedited procedure for the purpose 
of extending to additional States the waiver of 
statutory or regulatory requirements that have 
been approved for a State pursuant to a request 
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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. 129. STATE LEGISLATIVE AUTHORITY. 
Section 191is amended— 
(1) in subsection (a), by striking ‘‘consistent 
with the provisions of this title’’ and inserting ‘‘con-
sistent with State law and the provisions of this 
title’’; and 
(2) in subsection (a), by striking ‘‘consistent 
with the terms and conditions required under this 
title’’ and inserting ‘‘consistent with State law and 
the terms and conditions required under this title’’. 
SEC. 130. WORKFORCE INNOVATION IN REGIONAL ECO-
NOMIC DEVELOPMENT. 
(a) WORKFORCE INNOVATION IN REGIONAL ECO-
NOMIC DEVELOPMENT.—Section 192 (29 U.S.C. 2942) is 
amended to read as follows: 
‘‘SEC. 192. WORKFORCE INNOVATION IN REGIONAL ECO-
NOMIC DEVELOPMENT. 
‘‘(a) WORKFORCE INNOVATION IN REGIONAL ECO-
NOMIC DEVELOPMENT PLANS.— 
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‘‘(1) IN GENERAL.—The Secretary, in coopera-
tion with other federal agency heads responsible for 
the administration of programs included in plans 
submitted under this subsection, may approve Work-
force Innovation in Regional Economic Development 
(in this subsection referred to as WIRED) plans 
submitted by a State pursuant to paragraph (2) to 
support the development of regional economies in 
order to foster economic development, expand em-
ployment, and advancement opportunities for work-
ers and to promote the creation of high-skill and 
high-wage opportunities. 
‘‘(2) CONTENTS OF PLAN.—To have a WIRED 
plan approved under this subsection, a State and the 
region or regions identified in subparagraph (A) 
shall jointly submit a plan to the Secretary at such 
time, in such manner, and containing such informa-
tion as the Secretary may require, including— 
‘‘(A) the identification of the multi-county 
region or regions that is to be the focus of the 
activities provided under the plan, including 
identification of the communities in the region 
that share common characteristics, and a de-
scription of why the selected area comprises a 
regional economy; 
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‘‘(B) a description of the broad-based re-
gional partnership that has been created for the 
region identified in subparagraph (A) rep-
resenting the major assets of the region, con-
sistent with the requirements of paragraph (3), 
and that will assist in developing the economic 
vision described in subparagraph (D), the strat-
egies described in subparagraph (E), and pro-
vide a forum for regional economic decision- 
making, including a description of the partner-
ship’s involvement, particularly that of rep-
resentatives of affected local boards and chief 
elected officials, in the development of the plan; 
‘‘(C) a description of the assets of the re-
gion identified in subparagraph (A), based on a 
regional assessment, and identification of the 
strengths, weaknesses, opportunities, and risks 
based on those assets; 
‘‘(D) a description of an economic vision 
for the region identified in subparagraph (A), 
based on the identified strengths and assets de-
scribed in subparagraph (C), and evidence of 
support for that vision from the broad-based re-
gional partnership described in subparagraph 
(B); 
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‘‘(E) a description of the talent develop-
ment and related strategies that provide a blue-
print for how to achieve the economic vision for 
the region as described in subparagraph (D), 
including the activities to be carried out under 
this subsection, consistent with paragraphs (5) 
and (6), and the identification of specific goals 
associated with those strategies; 
‘‘(F) information on the workforce develop-
ment programs to be integrated in the region, 
in accordance with the requirements of para-
graph (4), into an integrated workforce develop-
ment program, including— 
‘‘(i) identification of the programs to 
be integrated; 
‘‘(ii) the amount and proportion of the 
resources available to the region under 
each of the integrated programs to carry 
out the strategies described in subpara-
graph (E); 
‘‘(iii) a description of how these re-
sources will be used to accomplish the vi-
sion identified in subparagraph (D), in-
cluding the services to be provided and 
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how such services will be provided, con-
sistent with clause (iv) and paragraph (5); 
‘‘(iv) assurances that in carrying out 
the wired plan— 
‘‘(I) the region, through the inte-
grated workforce development pro-
gram, will maintain a local workforce 
investment board, or a regional work-
force investment board, that is sub-
stantially similar to the local work-
force 
investment 
boards 
required 
under section 117 of this Act, that 
such board will carry out functions 
that are substantially similar to those 
described under section 117(d), and, 
that such region shall submit to the 
State for approval a local plan for the 
region that is substantially similar to 
the local plans required under section 
118 of this Act; 
‘‘(II) the region, through the in-
tegrated workforce development pro-
gram, will maintain a one-stop deliv-
ery system that is consistent with the 
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requirements of section 121 of this 
Act; 
‘‘(III) the region, through the in-
tegrated workforce development pro-
gram, will serve populations consistent 
with the populations served by the 
programs being integrated, and will 
provide universal access to work ready 
services 
as 
described 
in 
section 
134(d)(2) of this Act; 
‘‘(IV) the region, in carrying out 
the integrated workforce development 
program, will comply with the vet-
erans’ priority of service requirement 
under section 4215 of title 38, United 
States Code; 
‘‘(V) of the funds expended 
under the integrated workforce devel-
opment program each year, not more 
than 10 percent of such funds will be 
expended on the costs of administra-
tion (as defined by the Secretary); 
‘‘(VI) the services provided under 
the integrated workforce development 
program will be coordinated with em-
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‘‘(ii) the amount and proportion of the 
resources available to the State under each 
such program that will be used in the re-
gion to carry out the strategies described 
in subparagraph (E); 
‘‘(iii) a description of how these re-
sources will be used to assist in accom-
plishing the vision identified in subpara-
graph (D), including the activities to be 
carried out; 
‘‘(I) in addition to the resources described 
under subparagraphs (F) and (G), identifica-
tion of other resources that will be used to sup-
port the strategies of the region described in 
subparagraph (E), from a wide range of 
sources, including foundations, private invest-
ment such as venture capital, and federal, state, 
and local governments. 
‘‘(3) BROAD-BASED REGIONAL PARTNERSHIP.— 
For purposes of this subsection, a broad-based re-
gional partnership— 
‘‘(A) shall include— 
‘‘(i) representatives from each of the 
local workforce investment systems in the 
region identified under paragraph (2)(A), 
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such as the chairpersons or executive direc-
tors of affected local workforce investment 
boards in such region; 
‘‘(ii) representatives of the education 
system in the region identified under para-
graph (2)(A), including representatives 
from each of the following: 
‘‘(I) The K–12 public school sys-
tems; 
‘‘(II) Community colleges; and 
‘‘(III) Four-year educational in-
stitutions; 
‘‘(iii) representatives of businesses 
and industry associations in the region 
identified under paragraph (2)(A); 
‘‘(iv) the chief elected officials from 
each of the affected local areas identified 
under paragraph (2)(A); and 
‘‘(v) representatives of local and re-
gional economic development agencies in 
the region identified under paragraph 
(2)(A); and 
‘‘(B) may include— 
‘‘(i) representatives of the philan-
thropic community; 
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‘‘(ii) representatives of postsecondary 
education and training providers in addi-
tion to those described in subparagraph 
(A)(ii); 
‘‘(iii) representatives of private invest-
ment entities such as seed and venture 
capital organizations; investor networks; 
and entrepreneurs; 
‘‘(iv) representatives of faith and com-
munity-based organizations; and 
‘‘(v) representatives of such other 
Federal, state or local entities and organi-
zations that may enhance the carrying out 
of the activities of the partnership. 
‘‘(4) INTEGRATION OF WORKFORCE DEVELOP-
MENT SERVICES AUTHORIZED.— 
‘‘(A) 
AUTHORIZATION
FOR
INTEGRA-
TION.—In carrying out this subsection, the Sec-
retary of Labor, in cooperation with the federal 
agency heads responsible for the administration 
of the workforce development programs de-
scribed in subparagraph (D) that are included 
in the WIRED plan submitted by the State, 
shall, upon the approval of the plan submitted 
under paragraph (2), authorize the State to in-
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tegrate programs as described in subparagraph 
(B). 
‘‘(B) INTEGRATION.—The authorization 
shall give the State the authority to integrate, 
in accordance with such approved plan, the fed-
erally-funded programs described in subpara-
graph (D) that are included in the approved 
plan, in a manner that integrates those pro-
grams into a single, coordinated, comprehensive 
workforce development program to achieve the 
economic vision identified in such plan for the 
region. 
‘‘(C) EFFECT
ON
PROGRAM
REQUIRE-
MENTS.—The provisions of the approved grant 
application and the requirements of this sub-
section shall supersede the requirements of the 
statutes authorizing the programs included for 
integration in such approved plan, except as 
otherwise specified in this subsection. 
‘‘(D) INCLUDED
WORKFORCE
DEVELOP-
MENT PROGRAMS.— 
‘‘(i) 
MANDATORY
PROGRAMS.—A 
WIRED plan authorized under this sub-
section shall include the workforce invest-
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ment activities for adults authorized under 
chapter 5 of subtitle B. 
‘‘(ii) ADDITIONAL PROGRAMS.—In ad-
dition to the integration of the programs 
described in clause (i) into a single pro-
gram, a WIRED plan may include integra-
tion of one or more of the following pro-
grams as part of such single program— 
‘‘(I) the program of workforce in-
vestment activities for youth author-
ized under chapter 4 of subtitle B; or 
‘‘(II) any of the other required 
one-stop partner programs and activi-
ties described in section 121(b)(1)(B) 
of this Act. 
‘‘(5) WORKFORCE
DEVELOPMENT
ACTIVITIES 
TO
BE
CARRIED
OUT
UNDER
WIRED
PLAN.—The 
workforce development activities carried out under a 
WIRED plan may include— 
‘‘(A) job training and related activities for 
workers to assist them in gaining the skills and 
competencies needed to obtain or upgrade em-
ployment in industries or economic sectors pro-
jected to experience significant growth in the 
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region identified in paragraph (2)(A), includ-
ing— 
‘‘(i) activities supporting talent devel-
opment related to entrepreneurship and 
small business development; and 
‘‘(ii) the purchase of equipment to 
train job seekers and workers for high- 
growth occupations; 
‘‘(B) activities to enhance the training and 
related activities described in subparagraph (A) 
and to promote workforce development in the 
region identified in paragraph (2)(A), includ-
ing— 
‘‘(i) the development and implementa-
tion of model activities, such as developing 
appropriate curricula to build core com-
petencies and train workers in the region; 
‘‘(ii) identifying and disseminating ca-
reer and skill information relating to the 
region; 
‘‘(iii) developing or purchasing re-
gional data tools or systems to deepen un-
derstanding of the regional economy and 
labor market; and 
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‘‘(iv) integrated regional planning, 
such as increasing the integration of com-
munity and technical college activities with 
activities of businesses and the public 
workforce investment system to meet the 
training needs of high growth industries in 
the region. 
‘‘(C) appropriate employment-related ac-
tivities and services authorized under the work-
force development programs that are integrated 
under the plan in accordance with paragraphs 
(2)(F) and (4) that will assist achieving the 
economic vision described in paragraph (2)(D) 
and in implementing the strategies described in 
paragraph (2)(E). 
‘‘(6) INTEGRATION OF COMMUNITY AND ECO-
NOMIC DEVELOPMENT FUNDS AUTHORIZED.— 
‘‘(A) AUTHORIZATION
FOR
INTEGRATION 
OF
FUNDS.—In carrying out this subsection, 
the Secretary of Labor, in cooperation with the 
federal agency heads responsible for the admin-
istration of the community and economic devel-
opment programs described in subparagraph 
(D) that are included in the WIRED plan sub-
mitted by the State, shall, upon the approval of 
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the plan submitted under paragraph (2), au-
thorize the State to integrate the portion of the 
funds from such programs to assist in imple-
menting such plans. 
‘‘(B) INTEGRATION.—The authorization 
shall give the State the authority to integrate, 
in accordance with such approved plan, funds 
provided under programs identified from sub-
paragraph (D) to carry out the community and 
economic development activities described in 
paragraph (2)(G). 
‘‘(C) EFFECT
ON
PROGRAM
REQUIRE-
MENTS.—The integrated funds may be used, 
consistent with the description contained in 
paragraph (2)(G), to carry out any of the ac-
tivities authorized under any the programs de-
scribed in subparagraph (D) that are included 
in the plan. 
‘‘(D) INCLUDED
COMMUNITY
AND
ECO-
NOMIC DEVELOPMENT PROGRAMS.—The funds 
that may be integrated under this paragraph 
are funds provided under— 
‘‘(i) Community Development Block 
Grants authorized under title I of the 
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Housing and Community Development Act 
of 1974 (42 U.S.C. 5301–5321); 
‘‘(ii) grants authorized under the 
Community Services Block Grant Act (42 
U.S.C. 9901 et seq.); 
‘‘(iii) Public Works and Economic De-
velopment Grants authorized under section 
201 of the Public Works and Economic 
Development Act of 1965 (42 U.S.C. 
3141); 
‘‘(iv) 
Rural 
Business 
Enterprise 
Grants authorized under the Consolidated 
Farm and Rural Development Act (7 
U.S.C. 1932); 
‘‘(v) 
Rural 
Business 
Opportunity 
Grants 
authorized 
under 
section 
741(a)(11) of the Federal Agriculture Im-
provement and Reform Act of 1996 (42 
U.S.C. 1926(a)(11); 
‘‘(vi) grants authorized under the 
Brownfields Economic Development Initia-
tive; and 
‘‘(vii) Rural Housing and Economic 
Development grants. 
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‘‘(7) SPECIAL RULE.—If a State elects not to 
submit a WIRED plan described in paragraph (2) 
for approval or does not have a plan approved under 
paragraph (2), the Secretary may approve a WIRED 
plan submitted by a local workforce investment 
board or a regional workforce investment board that 
serves a region within such State, if the plan meets 
all other requirements of this section. 
‘‘(8) PERFORMANCE MEASURES AND REPORT-
ING.— 
‘‘(A) 
PERFORMANCE
MEASURES.—The 
Secretary shall establish performance measures 
that will be used to evaluate the effectiveness of 
activities carried out under this subsection and 
shall require such entities to report to the Sec-
retary on the employment outcomes obtained by 
individuals receiving training under this sub-
section using those core indicators of perform-
ance described in section 136(b)(2). 
‘‘(B) REPORTING.—Each State with an 
approved plan under this subsection shall en-
sure that records are maintained and reports 
are submitted, in such form and containing 
such information, as the Secretary may require 
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183 
regarding the performance of programs and ac-
tivities carried out under this subsection. 
‘‘(9) TECHNICAL
ASSISTANCE
AND
EVALUA-
TION.— 
‘‘(A) TECHNICAL ASSISTANCE.—The Sec-
retary shall provide such staff training, tech-
nical assistance, and other activities as the Sec-
retary deems appropriate to support the imple-
mentation of this subsection. 
‘‘(B) EVALUATION.—The Secretary may 
require that States with an approved plan 
under this subsection to participate in an eval-
uation of activities carried out under this sub-
section, including an evaluation using the tech-
niques described in section 172(c). 
‘‘(10) PLAN
REVIEW.—Upon receipt of a 
WIRED plan from the Governor, the Secretary shall 
consult with the Federal agency head responsible for 
the administration of any of the programs included 
in the plan pursuant to paragraph (4) or (6). 
‘‘(11) FEDERAL RESPONSIBILITIES.— 
‘‘(A) INTERAGENCY MEMORANDUM OF UN-
DERSTANDING.—Within 90 days following the 
date of enactment of this subsection, the Sec-
retary and the federal agency heads responsible 
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for programs that could be included in a plan 
approved under this subsection pursuant to 
paragraph (4) or (6) shall enter into an inter-
departmental memorandum of agreement pro-
viding for the implementation of WIRED plans 
with respect to the integration of programs and 
funds administered by each Secretary. 
‘‘(B) INTERAGENCY
FUNDS
TRANSFERS 
AUTHORIZED.—The Secretary and the federal 
agency heads responsible for the programs that 
are included in a plan approved under para-
graph (4) or (6) are authorized to take such ac-
tion as may be necessary to provide for intra- 
agency or interagency transfers of funds other-
wise available to a State in order to further the 
purposes of this subsection. 
‘‘(12) ADMINISTRATION OF FUNDS.— 
‘‘(A) 
SEPARATE
RECORDS
NOT
RE-
QUIRED.—Nothing in this subsection shall be 
construed as requiring the region to maintain 
separate records tracing any services or activi-
ties conducted under an approved WIRED plan 
to the programs under which funds were origi-
nally authorized, nor shall the State be required 
to allocate expenditures among such programs. 
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185 
‘‘(B) SINGLE AUDIT ACT.—Nothing in this 
section shall be construed to interfere with the 
ability of the Secretary to fulfill the responsibil-
ities for the safeguarding of Federal funds pur-
suant to the Single Audit Act of 1984. 
‘‘(b) AUTHORITY
TO
CARRY
OUT
ADDITIONAL 
WIRED ACTIVITIES UNDER WIA.— 
‘‘(1) AUTHORIZATION
FOR
USE
OF
CERTAIN 
FUNDS UNDER WIA.—Funds available under sections 
128(a), 133(a), 171, and 173 of this Act may be 
used by recipients and subrecipients of those funds 
for WIRED activities, as defined in paragraph (2), 
in addition to the other activities for which such 
funds are authorized to be used. 
‘‘(2) DEFINITION.—For purposes of this sub-
section, WIRED activities include— 
‘‘(A) WIRED planning activities, includ-
ing— 
‘‘(i) defining the regional economy; 
‘‘(ii) creating a broad-based regional 
partnership that assists in developing the 
economic vision described in clause (iv), 
the strategies described in clause (v), and 
that provides a forum for regional eco-
nomic decision-making; 
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186 
‘‘(iii) conducting an assessment of the 
regional economy to map the assets of a 
region and identify the strengths, weak-
nesses, opportunities and risks based on 
those assets; 
‘‘(iv) developing an economic vision 
based on those strengths and assets; 
‘‘(v) developing strategies and cor-
responding 
implementation 
plans 
that 
identify specific goals and tasks and pro-
vides a blueprint for how to achieve the 
economic vision for the region; and 
‘‘(vi) identifying resources to support 
the plan of the region; 
‘‘(B) job training and related activities for 
workers to assist them in gaining the skills and 
competencies needed to obtain or upgrade em-
ployment in industries or economic sectors pro-
jected to experience significant growth in the 
region, including— 
‘‘(i) activities supporting talent devel-
opment related to entrepreneurship and 
small business development in the region; 
and 
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