I 
108TH CONGRESS 
1ST SESSION H. R. 1261
To enhance the workforce investment system of the Nation by strengthening 
one-stop career centers, providing for more effective governance arrange-
ments, promoting access to a more comprehensive array of employment, 
training, and related services, establishing a targeted approach to serving 
youth, and improving performance accountability, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 13, 2003
Mr. MCKEON (for himself and Mr. BOEHNER) introduced the following bill; 
which was referred to the Committee on Education and the Workforce 
A BILL 
To enhance the workforce investment system of the Nation 
by strengthening one-stop career centers, providing for 
more effective governance arrangements, promoting ac-
cess to a more comprehensive array of employment, 
training, and related services, establishing a targeted ap-
proach to serving youth, and improving performance ac-
countability, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Workforce Reinvest-
ment and Adult Education Act of 2003’’.
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 program for adults. 
Sec. 113. Personal reemployment accounts. 
Sec. 114. Performance accountability system. 
Sec. 115. Authorization of appropriations. 
Sec. 116. Job Corps. 
Sec. 117. Native American programs. 
Sec. 118. Youth challenge grants. 
Sec. 119. Technical assistance. 
Sec. 120. Demonstration, pilot, multiservice, research and multistate projects. 
Sec. 121. Evaluations. 
Sec. 122. Authorization of appropriations for national activities. 
Sec. 123. Requirements and restrictions. 
Sec. 124. Nondiscrimination. 
Sec. 125. Administrative provisions. 
TITLE II—ADULT EDUCATION 
Sec. 201. Table of contents. 
Sec. 202. Amendment. 
TITLE III—AMENDMENTS TO OTHER PROVISIONS OF LAW 
Sec. 301. Repeal of Wagner-Peyser provisions. 
TITLE IV—AMENDMENTS TO THE REHABILITATION ACT OF 1973
Sec. 401. Chairperson. 
Sec. 402. Rehabilitation Services Administration. 
Sec. 403. Director. 
Sec. 404. State goals. 
Sec. 405. Authorizations of appropriations. 
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) in paragraph (8)(C), by striking ‘‘not less 
than 50 percent of the cost of training’’ and insert-
ing ‘‘a significant portion of the cost of training, as 
determined by the local board’’; 
(2) by striking paragraph (13) and redesig-
nating paragraphs (14) through (23) as paragraphs 
(13) through (22), respectively; 
(3) by striking paragraph (24) and redesig-
nating paragraphs (25) through (32) as paragraphs 
(23) through (30), respectively; and
(4) by striking paragraph (33) and redesig-
nating paragraphs (34) through (53) as paragraphs 
(31) through (50), respectively. 
SEC. 102. PURPOSE. 
Section 106 (29 U.S.C. 2811) is amended to insert 
the following sentence after the period: ‘‘It is also the pur-
pose of this subtitle to provide workforce investment ac-
tivities in a manner that promotes the informed choice of 
participants and actively involves participants in decisions 
affecting their participation in such activities.’’. 
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
ness organizations and business trade 
associations; 
‘‘(iv) chief elected officials (rep-
resenting both cities and counties, where 
appropriate; 
‘‘(v) representatives of labor organiza-
tions, who have been nominated by State 
labor federations; 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 
‘‘section 
(b)(1)(C)(i)’’ 
and 
inserting 
‘‘section 
(b)(1)(C)(iii)’’. 
(b) 
FUNCTIONS.—Section 
111(d) 
(29 
U.S.C. 
2811(d)) is amended— 
(1) 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, including—
‘‘(A) the development of criteria for, and 
the issuance of, certifications of one-stop cen-
ters; 
‘‘(B) the criteria for the allocation of one-
stop center infrastructure funding under section 
121(g), and oversight of the use of such funds; 
‘‘(C) approaches to facilitating equitable 
and efficient cost allocation in one-stop delivery 
systems; and 
‘‘(D) such other matters that may promote 
statewide objectives for, and enhance the per-
formance of, one-stop delivery systems within 
the State;’’; 
(2) 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’’; 
(3) in paragraph (5), by striking ‘‘sections 
128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec-
tions 128(b)(3) and 133(b)(3)’’; 
(4) in paragraph (8), by striking ‘‘section 15(e) 
of the Wagner-Peyser Act’’ and inserting ‘‘section 
302(e)’’; and
(5) in paragraph (9), by striking ‘‘section 503’’ 
and inserting ‘‘section 136(i)’’. 
(c) ELIMINATION
OF ALTERNATIVE ENTITY
AND 
PROVISION
OF AUTHORITY TO HIRE STAFF.—Section 
111(e) (29 U.S.C. 2811(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).’’. 
SEC. 104. STATE PLAN. 
(a) PLANNING CYCLE.—Section 112(a) (29 U.S.C. 
2822(a)) is amended by striking ‘‘5-year strategy’’ and in-
serting ‘‘2-year strategy’’. 
(b) CONTENTS.—Section 112(b)(17)(A) (29 U.S.C. 
2822(b)(17(A)) is amended— 
(1) in clause (iii) by striking ‘‘and’’; 
(2) in clause (iv)— 
(A) by inserting ‘‘homeless individuals,’’ 
after ‘‘public assistance),’’; and 
(B) by striking ‘‘and individuals with dis-
abilities’’; and 
(3) by adding the following new clause after 
clause (iv): 
‘‘(v) how the State will serve the em-
ployment and training needs of individuals, 
consistent with section 188 and Executive
Order 13217 (relating to community-based 
alternatives for individuals with disabil-
ities) including the provision of outreach, 
intake, assessments, and service delivery, 
the development of performance measures, 
and the training of staff; and’’. 
(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’’. 
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)(2), the Governor shall approve a re-
quest for designation as a local area from any
unit of general local government with a popu-
lation of 500,000 or more 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.’’. 
(3) REPEAL OF APPEALS.—Section 116(a) is 
further amended by striking paragraph (5). 
(b) 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)(A) (29 U.S.C. 
2832(a)) is amended—
(1) in clause (i)(II), by inserting ‘‘, businesses 
that are in the leading industries in the local area, 
and large and small businesses in the local area’’ 
after ‘‘local area’’; 
(2) by amending clause (ii) to read as follows: 
‘‘(ii) superintendents of the local sec-
ondary school systems and the presidents 
of community colleges;’’; 
(3) in clause (iv), by striking the semicolon and 
inserting ‘‘and faith-based organizations; and’’; and 
(4) by striking clause (vi). 
(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 ‘‘local 
area’’ and all that follows and inserting ‘‘local 
area.’’;
(2) in paragraph (3)(B)(i)(I), by striking ‘‘sec-
tions 128 and 133’’ and inserting ‘‘sections 128, 
133, and 135D’’; and 
(3) in paragraph (4)—
(A) by inserting ‘‘, activities authorized 
under section 135F’’ after ‘‘section 134’’; and 
(B) by inserting ‘‘and ensure the appro-
priate use and management of the funds pro-
vided under this title for such programs, activi-
ties, and system’’ after ‘‘area’’. 
(d) AUTHORITY
TO
ESTABLISH
COUNCILS
AND 
ELIMINATION
OF REQUIREMENT
FOR YOUTH COUN-
CILS.—Section 117(h) (29 U.S.C. (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.’’.
(e) REPEAL OF ALTERNATIVE ENTITY PROVISION.—
Section 117(i) (29 U.S.C. 2832(i)) is repealed. 
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 meets the employment needs of 
local employers and participants.’’; and 
(2) in paragraph (4), by striking ‘‘and dis-
located worker’’. 
SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYS-
TEMS. 
(a) ONE-STOP PARTNERS.—Section 121(b)(2)(B) 
(29 U.S.C. 2841(b)(2)(B)) is amended—
(1) in clause (iv) by striking ‘‘; and’’ and insert-
ing ‘‘;’’;
(2) in clause (v) by striking the period; and 
(3) by adding at the end the following new 
clauses: 
‘‘(vi) employment and training pro-
grams administered by the Social Security 
Administration, including the Ticket to 
Work program; 
‘‘(vii) programs under part D of title 
IV of the Social Security Act (relating to 
child support enforcement); and 
‘‘(viii) programs carried out in the 
local area for individuals with disabilities, 
including 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;’’. 
(b) PROVISION OF SERVICES.—Subtitle B of title I 
is amended—
(1) by striking subsection (e) of section 121; 
(2) 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;
(3) by amending subsection (e) (as moved and 
redesignated by paragraph (3))—
(A) in paragraph (1)(A), by striking ‘‘sub-
section 
(d)(2)’’ 
and 
inserting 
‘‘section 
134(d)(2)’’; 
(B) in paragraph (1)(B)—
(i) by striking ‘‘subsection (d)’’ and 
inserting ‘‘section 134(d)’’; and 
(ii) by striking ‘‘subsection (d)(4)(G)’’ 
and inserting ‘‘section 134(d)(4)(G)’’; 
(C) in paragraph (1)(C), by striking ‘‘sub-
section (e)’’ and inserting ‘‘section 134(e)’’; 
(D) in paragraph (1)(D)—
(i) by striking ‘‘section 121(b)’’ and 
inserting ‘‘subsection (b)’’; and 
(ii) by striking ‘‘; and’’ at the end and 
inserting ‘‘;’’; 
(E) by amending paragraph (1)(E) to read 
as follows: 
‘‘(E) shall provide access to the informa-
tion described in section 302(e); and’’; and 
(F) by adding at the end the following: 
‘‘(F) shall provide access to personal reem-
ployment accounts in accordance with section 
135E.’’.
(c) CERTIFICATION
AND FUNDING
OF ONE-STOP 
CENTERS.—Section 121 (as amended by subsection (b)) 
is further amended by adding at the end the following new 
subsections: 
‘‘(g) CERTIFICATION OF ONE-STOP CENTERS.—
‘‘(1) IN GENERAL.—The State board shall es-
tablish procedures and criteria for periodically certi-
fying one-stop centers. 
‘‘(2) CRITERIA.—The criteria for certification 
under this subsection shall include minimum stand-
ards relating to the scope and degree of service inte-
gration achieved by the centers involving the pro-
grams provided by the one-stop partners. 
‘‘(3) EFFECT
OF
CERTIFICATION.—one-stop 
centers certified under this subsection shall be eligi-
ble to receive the infrastructure grants authorized 
under subsection (h). 
‘‘(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) for a fiscal year shall be pro-
vided to the Governor by such programs to 
carry out this subsection. 
‘‘(B) DETERMINATION.—The portion of 
funds to be provided under subparagraph (A) 
by each one-stop partner shall be determined by 
the Governor, after consultation with the State 
board. 
‘‘(2) ALLOCATION
BY
GOVERNOR.—From the 
funds provided under paragraph (1), the Governor 
shall allocate funds to local areas for the purposes 
of assisting in paying the costs of the infrastructure 
of One-Stop centers certified under subsection (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, equipment (in-
cluding adaptive technology for individuals with dis-
abilities), strategic planning activities for the center, 
and common outreach activities. 
‘‘(i) OTHER FUNDS.—
‘‘(1) IN GENERAL.—In addition to the funds 
provided to carry out subsection (h), a portion of 
funds made available under Federal law authorizing 
the one-stop partner programs described in sub-
section (b) shall be used to pay the costs relating to 
the operation of the one-stop delivery system that 
are not paid for from the funds provided under sub-
section (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 (g); 
‘‘(B) common costs that are in addition to 
the costs of infrastructure; and 
‘‘(C) the costs of the provision of core serv-
ices applicable to each program. 
‘‘(2) DETERMINATION
AND
GUIDANCE.—The 
method for determining the appropriate portion of 
funds to be provided by each program under para-
graph (1) shall be determined as part of the memo-
randum of understanding under subsection (c). The 
State board shall provide guidance to facilitate the 
determination of appropriate funding allocation in 
local areas.’’. 
SEC. 109. ELIGIBLE PROVIDERS OF TRAINING SERVICES. 
Section 122 (29 U.S.C. 2842) is amended to read as 
follows: 
‘‘SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF 
TRAINING SERVICES. 
‘‘(a) IN GENERAL.—The Governor shall establish cri-
teria and procedures regarding the eligibility of providers 
of training services described in section 134(b)(4) to re-
ceive funds provided under section 133(b) for the provision 
of such training services. 
‘‘(b) CRITERIA.—The criteria established pursuant to 
subsection (a) shall take into account the performance of 
providers of training services with respect to the indicators 
described in section 136 or other appropriate indicators 
(taking into consideration the characteristics of the popu-
lation served and relevant economic conditions), and such 
other factors as the Governor determines are appropriate 
to ensure the quality of services, the accountability of pro-
viders, and the informed choice of participants under 
chapter 5. Such criteria shall require that the provider
submit appropriate, accurate and timely information to 
the State for purposes of carrying out subsection (d). The 
criteria shall also provide for periodic review and renewal 
of eligibility under this section for providers of training 
services. The Governor may authorize local areas in the 
State to establish additional criteria or to modify the cri-
teria established by the Governor under this section for 
purposes of determining the eligibility of providers of 
training services to provide such services in the local area. 
‘‘(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), and identify the re-
spective roles of the State and local areas in receiving and 
reviewing applications and in making determinations of 
eligibility based on the criteria established under this sec-
tion. The procedures shall also establish a process for a 
provider of training services to appeal a denial or termi-
nation of eligibility under this section that includes an op-
portunity for a hearing 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, accompanied by such information 
as the Governor determines is appropriate, 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. 
‘‘(e) AGREEMENTS WITH OTHER STATES.—States 
may enter into agreements, on a reciprocal basis, to per-
mit eligible providers of training services to accept career 
scholarship accounts provided in another State. 
‘‘(f) RECOMMENDATIONS.—In developing the criteria, 
procedures, and information required under this section, 
the Governor shall solicit and take into consideration the 
recommendations of local boards and providers of training 
services within the State. 
‘‘(g) OPPORTUNITY TO SUBMIT COMMENTS.—Dur-
ing the development of the criteria, procedures, and infor-
mation required under this section, the Governor shall 
provide an opportunity for interested members of the pub-
lic, including representatives of business and labor organi-
zations, to submit comments regarding such criteria, pro-
cedures, and information.’’. 
SEC. 110. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 
Section 123 (29 U.S.C. 2843) and the item relating 
to such section in the table of contents are repealed.
SEC. 111. YOUTH ACTIVITIES. 
(a) STATE
ALLOTMENTS.—Section 127(a) (29 
U.S.C. 2852(a)) is amended to read as follows: 
‘‘(a) ALLOTMENT AMONG STATES.—
‘‘(1) YOUTH ACTIVITIES.—
‘‘(A) YOUTH CHALLENGE GRANTS.—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. 
‘‘(B) OUTLYING AREAS AND NATIVE AMER-
ICANS.—After determining the amount to be re-
served under subparagraph (A), of the remain-
der 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 assist-
ance to the outlying areas to carry out 
youth activities and statewide workforce in-
vestment activities; and 
‘‘(ii) reserve not more than 1 and 1⁄2 
percent of such amount to provide youth 
activities under section 166 (relating to 
Native Americans). 
‘‘(C) STATES.—
‘‘(i) IN GENERAL.—After determining 
the amounts to be reserved under subpara-
graphs (A) and (B), the Secretary shall 
allot the remainder of the amount appro-
priated under section 137(a) for each fiscal 
year to the States pursuant to clause (ii) 
for youth activities and statewide work-
force investment activities. 
‘‘(ii) FORMULA.—Subject to clauses 
(iii) and (iv), of the remainder—
‘‘(I) 33 and 1⁄3 percent shall be 
allotted on the basis of the relative 
number of high school dropouts who 
are ages 16 through 21 in the State, 
compared to the total number of high 
school dropouts who are ages 16 
through 21 in all States; 
‘‘(II) 33 and 1⁄3 percent shall be 
allotted on the basis of the relative 
number of jobless out-of-school youth 
who are ages 16 through 21 in the 
State, compared to the total number 
of jobless out-of-school youth who are 
ages 16 through 21 in all States; and
‘‘(III) 33 and 1⁄3 percent shall be 
allotted on the basis of the relative 
number of disadvantaged youth who 
are ages 16 through 21 in the State, 
compared to the total number of dis-
advantaged youth who are ages 16 
through 21 in all States. 
‘‘(iii) MINIMUM AND MAXIMUM PER-
CENTAGES.—The Secretary shall ensure 
that no State shall receive an allotment for 
a fiscal year that is less than 90 percent 
or greater than 130 percent of the allot-
ment percentage of that State for the pre-
ceding fiscal year. 
‘‘(iv) SMALL STATE MINIMUM ALLOT-
MENT.—Subject to clause (iii), the Sec-
retary shall ensure that no State shall re-
ceive an allotment under this paragraph 
that is less than 3⁄10 of 1 percent of the 
amount available under subparagraph (A). 
‘‘(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 2004 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 
2003, 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 Act Amendments of 
2003) that is received by the State involved for 
fiscal year 2003. 
‘‘(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. 
‘‘(C) NUMBER
OF
HIGH
SCHOOL
DROP-
OUTS.—The term ‘number of high school drop-
outs’ means the number of high school dropouts 
as is determined by the Secretary based on the 
Current Population Survey. 
‘‘(D) 
NUMBER
OF
JOBLESS
OUT-OF-
SCHOOL YOUTH.—The term ‘number of jobless 
out-of-school youth’ means the number of job-
less out-of-school youth as is determined by the
Secretary based on the Current Population Sur-
vey. 
‘‘(3) SPECIAL RULE.—For purposes of the for-
mula 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.’’. 
(b) WITHIN STATE ALLOCATIONS.—
(1) RESERVATION
FOR
STATEWIDE
ACTIVI-
TIES.—Section 128(a) is amended to read as follows: 
‘‘(a) RESERVATION FOR STATEWIDE ACTIVITIES.—
‘‘(1) IN GENERAL.—The Governor of a State 
shall reserve not more than 10 percent of the 
amount 
allotted 
to 
the 
State 
under 
section 
127(a)(1)(C) for a fiscal year for statewide activi-
ties. 
‘‘(2) USE OF FUNDS.—Regardless of whether 
the amounts are allotted under section 127(a)(1)(C) 
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 ALLOCATION.—Paragraphs 
(1), (2), and (3) of section 128(b) are amended to 
read as follows: 
‘‘(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) 80 percent of such amounts shall be 
allocated by the Governor to local areas in ac-
cordance with paragraph (2); and 
‘‘(B) 20 percent of such amounts shall be 
allocated by the Governor to local areas in ac-
cordance with paragraph (3). 
‘‘(2) ESTABLISHED FORMULA.—
‘‘(A) IN GENERAL.—Of the amounts de-
scribed in paragraph (1)(A), the Governor shall 
allocate—
‘‘(i) percent on the basis of the rel-
ative number of high school dropouts who 
are ages 16 through 21 in each local area, 
compared to the total number of high 
school dropouts who are ages 16 through 
21 in all local areas in the State; 
‘‘(ii) 33 and 1⁄3 percent on the basis 
of the relative number of jobless out-of-
school youth who are ages 16 through 21
in each local area, compared to the total 
number of jobless out-of-school youth who 
are ages 16 through 21 in all local areas 
in the State; and 
‘‘(iii) 33 and 1⁄3 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 
disadvantaged 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 
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 2004 or a subsequent fiscal year, 
means a percentage of 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 2003, 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 Work-
force Investment Act Amendments of 
2003) that is received by the local area in-
volved for fiscal year 2003. 
‘‘(ii) OTHER TERMS.—For purposes of 
this paragraph, all other terms shall have 
the meaning given such terms in section 
127(a)(2). 
‘‘(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 and 
section 133(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 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).’’. 
(c) YOUTH
PARTICIPANT
ELIGIBILITY.—Section 
129(a) (29 U.S.C. 2854(a)) is amended to read as follows: 
‘‘(a) YOUTH PARTICIPANT ELIGIBILITY.—
‘‘(1) IN
GENERAL.—The individuals partici-
pating in activities carried out under this chapter by 
a local area during any program year shall be indi-
viduals who, at the time the eligibility determination 
is made, are—
‘‘(A) not younger than age 16 or older 
than age 21; and 
‘‘(B) one or more of the following: 
‘‘(i) school dropouts; 
‘‘(ii) recipients of a secondary school 
diploma or its equivalent, but are basic 
skills deficient and are not attending any 
school;
‘‘(iii) court-involved youth attending 
an alternative school; or 
‘‘(iv) youth aging out of foster care. 
‘‘(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.’’. 
(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; 
‘‘(B) supporting the provision of core serv-
ices described in section 134(d)(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 
‘‘(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 text that precedes 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 outcomes relating to this chapter under 
section 136, and that’’ after ‘‘for each partici-
pant that’’; and 
(C) in subparagraph (C)—
(i) 
by 
redesignating 
clauses 
(i) 
through (iv) as clauses (ii) through (v), re-
spectively; 
(ii) by inserting the following new 
clause (i): 
‘‘(i) activities leading to the attain-
ment of a secondary school diploma or its 
recognized equivalent;’’;
(iii) in clause (ii) (as redesignated by 
this subparagraph), by inserting ‘‘and ad-
vanced training’’ after ‘‘opportunities’’; 
(iv) in clause (iii) (as redesignated by 
this subparagraph), by inserting ‘‘that lead 
to the attainment of recognized creden-
tials’’ after ‘‘learning’’; and 
(v) by amending clause (v) (as redes-
ignated by this subparagraph) to read as 
follows: 
‘‘(v) effective connections to employers 
in sectors of the local labor market experi-
encing high growth in employment oppor-
tunities.’’. 
(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 or its recognized equivalent’’; and 
(B) by amending subparagraph (C) to read 
as follows: 
‘‘(C) on-the-job training opportunities;’’. 
(3) 
ADDITIONAL
REQUIREMENTS.—Section 
129(c)(3) (29 U.S.C. 2854(c)(3)) is amended by
striking ‘‘or applicant who meets the minimum in-
come criteria to be considered an eligible youth’’; 
(4) 
PRIORITY
AND
EXCEPTIONS.—Section 
129(c) (29 U.S.C. 2854(c)) is further amended—
(A) by striking paragraphs (4) and (5); 
(B) by redesignating paragraph (6) as 
paragraph (4); 
(C) by redesignating paragraph (7) as 
paragraph (5), and in such redesignated para-
graph (5) by striking ‘‘youth councils’’ and in-
serting ‘‘local boards’’; and 
(D) by redesignating paragraph (8) as 
paragraph (6). 
SEC. 112. COMPREHENSIVE PROGRAM FOR ADULTS. 
(a) TITLE OF CHAPTER 5.— The title of chapter 5 
is amended to read as follows: 
‘‘CHAPTER 5—COMPREHENSIVE EMPLOY-
MENT 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,’’. 
(c) STATE ALLOTMENTS.—
(1) IN GENERAL.—Section 132(a) (29 U.S.C. 
2862(a)) is amended to read as follows: 
‘‘(a) IN GENERAL.—The Secretary shall—
‘‘(1) reserve 10 percent of the amount appro-
priated under section 137(b) for a fiscal year, of 
which—
‘‘(A) not less than 75 percent shall be used 
for national emergency grants under section 
173; 
‘‘(B) not more than 20 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 90 percent of the 
amount appropriated under section 137(b) for a fis-
cal year in accordance with subsection (b).’’. 
(2) 
ALLOTMENT
AMONG
STATES.—Section 
132(b) (29 U.S.C. 2862(b)) is amended to read as 
follows: 
‘‘(b) ALLOTMENT AMONG STATES FOR ADULT EM-
PLOYMENT AND TRAINING ACTIVITIES.—
‘‘(1) RESERVATION
FOR
OUTLYING
AREAS.—
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 train-
ing activities for adults and statewide workforce in-
vestment activities. 
‘‘(2) STATES.—
‘‘(A) IN GENERAL.—After determining the 
amount to be reserved under paragraph (1), the 
Secretary shall allot the remainder of the 
amount referred to under subsection (a)(2) for 
a fiscal year to the States pursuant to subpara-
graph (B) for employment and training activi-
ties for adults and statewide workforce invest-
ment activities. 
‘‘(B) 
FORMULA.—Subject 
to 
subpara-
graphs (C) and (D), of the remainder— 
‘‘(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) 15 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; 
‘‘(iii) 15 percent shall be allotted on 
the basis of the relative number of individ-
uals in the civilian labor force in each 
State, compared to the total number of in-
dividuals in the civilian labor force in all 
States; and 
‘‘(iv) 10 percent shall be allotted on 
the basis of the relative number of dis-
advantaged adults in each State, compared 
to the total number of disadvantaged 
adults in all States. 
‘‘(C) MINIMUM AND MAXIMUM PERCENT-
AGES.—The Secretary shall ensure that no 
State shall receive an allotment for a fiscal year 
that is less than 90 percent or greater than 130 
percent of the allotment percentage of the State 
for the preceding fiscal year. 
‘‘(D) SMALL
STATE
MINIMUM
ALLOT-
MENT.—Subject to subparagraph (C), the Sec-
retary shall ensure that no State shall receive 
an allotment under this paragraph that is less 
than 3⁄10 of 1 percent of the amount available 
under subparagraph (A).
‘‘(E) DEFINITIONS.—For the purposes of 
this paragraph, the following definitions apply: 
‘‘(i) ALLOTMENT PERCENTAGE.—The 
term ‘allotment percentage’, used with re-
spect to fiscal year 2004 or a subsequent 
fiscal year, means a percentage of the re-
mainder described in subparagraph (A) 
that is received through an allotment made 
under this paragraph for the fiscal year. 
The term, with respect to fiscal year 2003, 
means the percentage of the amounts allot-
ted to States under this chapter (as in ef-
fect on the day before the date of enact-
ment of the Workforce Investment Act 
Amendments of 2003) and under section 6 
of the Wagner-Peyser Act that is received 
by the State involved for fiscal year 2003. 
‘‘(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-
viduals within a State, the number that 
represents the number of unemployed indi-
viduals in excess of 4.5 percent of the civil-
ian labor force in the State.’’. 
(d) WITHIN STATE ALLOCATIONS.—
(1) RESERVATION
FOR
STATE
ACTIVITIES.—
Section 133(a) (29 U.S.C. 2863(a)) is amended to 
read as follows: 
‘‘(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) ALLOCATIONS TO LOCAL AREAS.—Section 
133(b) (29 U.S.C. 2863(b)) is amended to read as 
follows: 
‘‘(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) 80 percent of such amounts shall be 
allocated by the Governor to local areas in ac-
cordance with paragraph (2); and 
‘‘(B) 20 percent of such amounts shall be 
allocated by the Governor to local areas in ac-
cordance with paragraph (3). 
‘‘(2) ESTABLISHED FORMULA.—
‘‘(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) 15 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; 
‘‘(iii) 15 percent on the basis of the 
relative number of individuals in the civil-
ian labor force in each local area, com-
pared to the total number of individuals in
the civilian labor force in all local areas in 
the State; and 
‘‘(iv) 10 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 States. 
‘‘(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. 
‘‘(C) DEFINITIONS.—
‘‘(i) ALLOCATION PERCENTAGE.—The 
term ‘allocation percentage’, used with re-
spect to fiscal year 2004 or a subsequent 
fiscal year, means a percentage of amount 
described in paragraph (1)(A) that is re-
ceived through an allocation made under 
this paragraph for the fiscal year. The 
term, with respect to fiscal year 2003, 
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 Act 
Amendments of 2003) that is received by 
the local area involved for fiscal year 2003. 
‘‘(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-
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) in accordance 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 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 
activities described in this chapter or chapter 4, 
regardless of whether the funds were allocated 
under this subsection or section 128(b).’’. 
(e) USE OF FUNDS FOR EMPLOYMENT AND TRAIN-
ING ACTIVITIES.—
(1) STATEWIDE EMPLOYMENT AND TRAINING 
ACTIVITIES.—
(A) IN GENERAL.—Section 134(a)(1) (29 
U.S.C. 2864(a)) is amended to read as follows: 
‘‘(1) IN GENERAL.—Funds reserved by a Gov-
ernor for a State—
‘‘(A) under section 133(a) shall be used for 
statewide rapid response activities described in 
paragraph (2); and
‘‘(B) under section 133(a) and section 
128(a) may be used to carry out any of the 
statewide employment and training activities 
described in paragraph (3).’’. 
(B) STATEWIDE RAPID RESPONSE ACTIVI-
TIES.—Section 134(a)(2) is amended to read as 
follows: 
‘‘(2) STATEWIDE
RAPID
RESPONSE
ACTIVI-
TIES.—A State shall use funds reserved as described 
in section 133(a) to carry out statewide rapid re-
sponse activities, which 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 
‘‘(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.’’.
(C) STATEWIDE EMPLOYMENT AND TRAIN-
ING ACTIVITIES.—Section 134(a)(3) is amended 
to read as follows: 
‘‘(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 core serv-
ices described in section 134(d)(2) in the one-
stop delivery system; 
‘‘(B) conducting evaluations under section 
136(e) of activities authorized under this chap-
ter and chapter 4 in coordination with evalua-
tions carried out by the Secretary under section 
172, research, and demonstration projects; 
‘‘(C) 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; 
‘‘(D) 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; 
‘‘(E) operating a fiscal and management 
accountability system under section 136(f); 
‘‘(F) carrying out monitoring and oversight 
of activities carried out under this chapter and 
chapter 4; 
‘‘(G) implementing innovative programs, 
such as incumbent worker training programs, 
programs serving individuals with disabilities 
consistent with section 188; and 
‘‘(H) developing strategies for effectively 
serving hard-to-serve populations and for inte-
grating programs and services among one-stop 
partners.’’. 
(D) LIMITATION ON STATE ADMINISTRA-
TIVE EXPENDITURES.—Section 134(a) is fur-
ther amended by adding the following new 
paragraph: 
‘‘(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) 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)’’; 
(B) in paragraphs (1) and (2), by striking 
‘‘or dislocated workers’’ both places it appears; 
and 
(C) by redesignating subsections (d) and 
(e) as subsections (c) and (d), respectively. 
(3) 
REQUIRED
LOCAL
EMPLOYMENT
AND 
TRAINING ACTIVITIES.—
(A) 
ALLOCATED
FUNDS.—Section 
134(c)(1) (as redesignated by paragraph (2)) is 
amended to read as follows: 
‘‘(1) IN GENERAL.—Funds allocated to a local 
area for adults under paragraph 2(A) or (3), as ap-
propriate, of section 133(b) and funds allocated to 
the local area for dislocated workers under section 
133(b)(2)(B), shall be used—
‘‘(A) to establish a one-stop delivery sys-
tem as described in section 121(e);
‘‘(B) to provide the core services described 
in paragraph (2) to adults and dislocated work-
ers, respectively, through the one-stop delivery 
system in accordance with such paragraph; 
‘‘(C) to provide the intensive services de-
scribed in paragraph (3) to adults and dis-
located workers, respectively, described in such 
paragraph; and 
‘‘(D) to provide training services described 
in paragraph (4) to adults and dislocated work-
ers, respectively, described in such paragraph.’’. 
(B) CORE
SERVICES.—Section 134(c)(2) 
(as redesignated by paragraph (2)) is amend-
ed—
(i) by striking ‘‘who are adults or dis-
located workers’’; 
(ii) in subparagraph (A), by striking 
‘‘under this subtitle’’ and inserting ‘‘under 
the one-stop partner programs described in 
section 121(b)’’; 
(iii) in subparagraph (D), by inserting 
‘‘and appropriate recruitment services for 
employers’’ after ‘‘counseling’’; 
(iv) in subparagraph (I), by inserting 
‘‘and the administration of the work test
for the unemployment compensation sys-
tem’’ after ‘‘compensation’’; and 
(v) 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 
funded under this Act and are available in the 
local area; and’’. 
(C) 
INTENSIVE
SERVICES.—Section 
134(b)(3) (as redesignated by paragraph (2) of 
this subsection) is amended—
(i) by amending subparagraph (A) to 
read as follows: 
‘‘(A) IN GENERAL.—
‘‘(i) ELIGIBILITY.—Funds allocated to 
a local area under section 133(b) shall be 
used to provide intensive services for 
adults who—
‘‘(I) are unemployed and who 
have been determined by the one-stop 
operator to be—
‘‘(aa) unlikely or unable to 
obtain 
suitable 
employment
through core services provided; 
and 
‘‘(bb) in need of intensive 
services in order to obtain suit-
able employment; or 
‘‘(II) are employed, but who are 
determined by a one-stop operator to 
be in need of intensive services to ob-
tain or retain suitable employment. 
‘‘(ii) 
DEFINITION.—The 
Governor 
shall define the term ‘suitable employment’ 
for purposes of this subparagraph.’’; 
(ii) in subparagraph (C)—
(I) in clause (v), by striking ‘‘for 
participants seeking training services 
under paragraph (4)’’; and 
(II) by adding the following 
clauses after clause (vi): 
‘‘(vii) Internships and work experi-
ence. 
‘‘(viii) Literacy activities relating to 
basic work readiness, and financial literacy 
activities. 
‘‘(ix) Out-of-area job search assistance 
and relocation assistance.’’.
(D) 
TRAINING
SERVICES.—Section 
134(b)(4) (as redesignated by paragraph (2) of 
this subsection) is amended—
(i) by amending subparagraph (A) to 
read as follows: 
‘‘(A) IN GENERAL.—
‘‘(i) ELIGIBILITY.—Funds allocated to 
a local area under section 133(b) shall be 
used to provide training services to adults 
who—
‘‘(I) after an interview, evalua-
tion, or assessment, and case manage-
ment, have been determined by a one-
stop operator or one-stop partner, as 
appropriate, to—
‘‘(aa) be unlikely or unable 
to obtain or retain suitable em-
ployment through intensive serv-
ices under paragraph (3)(A); 
‘‘(bb) be in need of training 
services to obtain or retain suit-
able employment; and 
‘‘(cc) have the skills and 
qualifications to successfully par-
ticipate in the selected program 
of training services; 
‘‘(II) select programs of training 
services that are directly linked to the 
employment opportunities in the local 
area involved or in another area in 
which the adults receiving such serv-
ices are willing to commute or relo-
cate; 
‘‘(III) who meet the requirements 
of subparagraph (B); and 
‘‘(IV) who are determined eligible 
in accordance with the priority system 
in effect under subparagraph (E). 
‘‘(ii) The Governor shall define the 
term ‘suitable employment’ for purposes of 
this subparagraph.’’; 
(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. 1077uu) 
and except’’; 
(iii) by amending subparagraph (E) to 
read as follows: 
‘‘(E) PRIORITY.—
‘‘(i) IN GENERAL.—A priority shall be 
given to unemployed individuals for the 
provision of intensive and training services 
under this subsection. 
‘‘(ii) ADDITIONAL
PRIORITY.—If the 
funds in the local area, including the funds 
allocated under section 133(b), for serving 
recipients of public assistance and other 
low-income individuals is limited, the pri-
ority for the provision of intensive and 
training services under this subsection 
shall include such recipients and individ-
uals. 
‘‘(iii) 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.’’; 
(iv) in subparagraph (F), by adding 
the following clause after clause (iii): 
‘‘(iv) ENHANCED INDIVIDUAL TRAIN-
ING
ACCOUNTS.—Each local board may, 
through one-stop centers, assist individuals 
receiving 
individual 
training 
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 
(v) in subparagraph (G)(iv), by redes-
ignating subclause (IV) as subclause (V) 
and inserting the following new subclause 
(IV): 
‘‘(IV) Individuals with disabil-
ities.’’. 
(4) PERMISSIBLE ACTIVITIES.—Section 134(d) 
(as redesignated by paragraph (2)) 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 on a fee-for-service basis;
‘‘(ii) customized employment-related 
services to employers on a fee-for-service 
basis; 
‘‘(iii) customer support to navigate 
among multiple services and activities for 
special participant populations that face 
multiple barriers to employment, including 
individuals with disabilities; and 
‘‘(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. 
‘‘(B) WORK
SUPPORT
ACTIVITIES
FOR 
LOW-WAGE WORKERS.—
‘‘(i) IN GENERAL.—Funds allocated to 
a local area under section 133(b) may be 
used to provide, through the one-stop deliv-
ery system and in collaboration with the 
appropriate programs and resources of the 
one-stop partners, work support activities 
designed to assist low-wage workers in re-
taining and enhancing employment. 
‘‘(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.—
‘‘(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. The Governor shall es-
tablish, or may authorize the local board to 
establish, the required portion of such 
costs, which shall not be less than—
‘‘(I) 10 percent of the costs, for 
employers with 50 or fewer employees; 
‘‘(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. PERSONAL REEMPLOYMENT ACCOUNTS. 
Subtitle B of title I (29 U.S.C. 2811 et seq.) is 
amended by inserting after chapter 5 the following new 
chapter: 
‘‘CHAPTER 5A—PERSONAL 
REEMPLOYMENT ACCOUNTS 
‘‘SEC. 135A. PURPOSES. 
‘‘The purposes of this chapter are to provide for the 
establishment of personal reemployment accounts for cer-
tain individuals identified as likely to exhaust their unem-
ployment compensation in order to—
‘‘(1) accelerate the reemployment of such indi-
viduals; 
‘‘(2) promote the retention in employment of 
such individuals; and 
‘‘(3) provide such individuals with enhanced 
flexibility, choice, and control in obtaining intensive 
reemployment, training, and supportive services. 
‘‘SEC. 135B. DEFINITION. 
‘‘In this chapter, the term ‘State’ means each of the 
several States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, and the United 
States Virgin Islands. 
‘‘SEC. 135C. GRANTS TO STATES. 
‘‘(a) GRANTS.—The Secretary shall—
‘‘(1) reserve 2⁄10 of 1 percent of the amount ap-
propriated under section 137(d) for use under sec-
tion 135I; and 
‘‘(2) use the remainder of the amount appro-
priated under section 137(d) to make allotments in 
accordance with subsection (b). 
‘‘(b) ALLOTMENT AMONG STATES.—
‘‘(1) IN
GENERAL.—From the amount made 
available under subsection (a)(2), the Secretary shall 
allot to each State an amount that is proportionate 
to the relative number of unemployed individuals in 
the State as compared to the total number of unem-
ployed individuals in all States in order to provide 
assistance for eligible individuals in accordance with 
this chapter. 
‘‘(2) SMALL
STATE
MINIMUM
ALLOTMENT.—
The Secretary shall ensure that—
‘‘(A) each State (other than the United 
States Virgin Islands) shall receive an allotment 
under paragraph (1) that is not less than 3⁄10 
of 1 percent of the amount made available 
under subsection (a)(2) for the fiscal year; and 
‘‘(B) the United States Virgin Islands shall 
receive an allotment under paragraph (1) that 
is not less than 1⁄10 of 1 percent of the amount
made available under subsection (a)(2) for the 
fiscal year. 
‘‘(c) 
AVAILABILITY.—Notwithstanding 
section 
189(g)(1), amounts made available under subsection (a) 
to carry out this chapter shall be available for obligation 
and expenditure beginning on the date of the enactment 
of the Back to Work Incentive Act of 2003. 
‘‘SEC. 135D. WITHIN STATE ALLOCATION. 
‘‘(a) ALLOCATION.—Of the amount allotted to a 
State under section 135C—
‘‘(1) not more than 2 percent of the amount 
may be reserved by the Governor of the State to en-
hance the system of worker profiling described in 
section 303(j) of the Social Security Act and to es-
tablish and operate a data management system, as 
necessary, and carry out other appropriate activities 
to implement this chapter; 
‘‘(2) 5 percent of the amount shall be allocated 
by the State to local areas in accordance with the 
formula described in subsection (b) for start-up 
costs and other operating costs related to the provi-
sion of assistance under this chapter; and 
‘‘(3) the remainder of the amount shall be pro-
vided to local areas consistent with the methods and 
procedures described in section 135G(a)(4) for the
establishment of personal reemployment accounts 
described in section 135E for eligible individuals in 
such local areas. 
‘‘(b) FORMULA.—A State shall allocate funds to local 
areas in the State under subsection (a)(2) in an amount 
that is proportionate to the relative number of unemployed 
individuals in the local area as compared to the total num-
ber of unemployed individuals in the State. 
‘‘(c) 
AVAILABILITY.—Notwithstanding 
section 
189(g)(2), amounts allotted to a State under section 
135C, and amounts subsequently provided to a local area 
under this section, shall be available for obligation and ex-
penditure only for the 3-year period beginning on the date 
of the enactment of the Back to Work Incentive Act of 
2003. 
‘‘SEC. 135E. PERSONAL REEMPLOYMENT ACCOUNTS. 
‘‘(a) ACCOUNTS.—
‘‘(1) IN GENERAL.—Funds provided to a local 
area under section 135D shall be used to provide eli-
gible individuals with personal reemployment ac-
counts to be used in accordance with section 135F. 
An eligible individual may receive only one personal 
reemployment account. 
‘‘(2) AMOUNT.—The State shall establish the 
amount of a personal reemployment account, which
shall be uniform throughout the State, and shall not 
exceed $3,000. 
‘‘(b) ELIGIBLE INDIVIDUALS.—
‘‘(1) IN GENERAL.—Each State shall establish 
eligibility criteria for individuals for personal reem-
ployment accounts in accordance with this sub-
section. 
‘‘(2) ELIGIBILITY CRITERIA REQUIREMENTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), an individual shall be eligible to re-
ceive assistance under this chapter if, beginning 
after the date of enactment of the Back to 
Work Incentive Act of 2003, the individual— 
‘‘(i) is identified by the State pursu-
ant to section 303(j)(1) of the Social Secu-
rity Act as likely to exhaust regular unem-
ployment compensation and in need of job 
search assistance to make a successful 
transition to new employment or an indi-
vidual’s unemployment can be attributed in 
substantial part to unfair competition from 
Federal Prison Industries, Inc.; 
‘‘(ii) is receiving regular unemploy-
ment compensation under any State or
Federal unemployment compensation pro-
gram administered by the State; and 
‘‘(iii) is eligible for not less than 20 
weeks of regular unemployment compensa-
tion described in clause (ii). 
‘‘(B) ADDITIONAL ELIGIBILITY AND PRI-
ORITY CRITERIA.—A State may establish cri-
teria that is in addition to the criteria described 
in subparagraph (A) for the eligibility of indi-
viduals to receive assistance under this chapter. 
A State may also establish criteria for priority 
in the provision of assistance to such eligible in-
dividuals under this chapter. 
‘‘(3) TRANSITION RULE.—
‘‘(A) PREVIOUSLY IDENTIFIED AS LIKELY 
TO
EXHAUST
UNEMPLOYMENT
COMPENSA-
TION.—
‘‘(i) IN GENERAL.—At the option of 
the State, and subject to clause (ii), an in-
dividual may be eligible to receive assist-
ance under this chapter if the individual—
‘‘(I) during the 13-week period 
ending the week prior to the date of 
the enactment of the Back to Work 
Incentive Act of 2003, was identified
by the State pursuant to section 
303(j)(1) of the Social Security Act as 
likely to exhaust regular unemploy-
ment compensation and in need of job 
search assistance to make a successful 
transition to new employment; and 
‘‘(II) otherwise meets the re-
quirements of clauses (ii) and (iii) of 
paragraph (2)(A). 
‘‘(ii) ADDITIONAL
ELIGIBILITY
AND 
PRIORITY CRITERIA.—A State may estab-
lish criteria that is in addition to the cri-
teria described in clause (i) for the eligi-
bility of individuals to receive assistance 
under this chapter. A State may also es-
tablish criteria for priority in the provision 
of assistance to such eligible individuals 
under this chapter. 
‘‘(B) PREVIOUSLY
EXHAUSTED
UNEM-
PLOYMENT COMPENSATION.—At the option of 
the State, an individual may be eligible to re-
ceive assistance under this chapter if the indi-
vidual—
‘‘(i) during the 26-week period ending 
the week prior to the date of the enact-
ment of the Back to Work Incentive Act of 
2003, exhausted all rights to any unem-
ployment compensation; and 
‘‘(ii)(I) is enrolled in training and 
needs additional support to complete such 
training, with a priority of service to be 
provided to such individuals who are train-
ing for shortage occupations or high-
growth industries; or 
‘‘(II) is separated from employment in 
an industry or occupation that has experi-
enced declining employment, or no longer 
provides any employment, in the local labor 
market during the two-year period ending 
on the date of the determination of eligi-
bility of the individual under this subpara-
graph. 
‘‘(4) NO INDIVIDUAL ENTITLEMENT.—Nothing 
in this chapter shall be construed to entitle any indi-
vidual to receive a personal reemployment account. 
‘‘(c) LOCAL ADMINISTRATION.—
‘‘(1) INFORMATION AND ATTESTATION.—Prior 
to the establishment of a personal reemployment ac-
count for an eligible individual under this chapter,
the local board, through the one-stop delivery sys-
tem, shall ensure that the individual—
‘‘(A) is informed of the requirements appli-
cable to the personal reemployment account, in-
cluding the allowable uses of funds from the ac-
count, the limitations on access to services de-
scribed under section 135F(a)(3)(C) and a de-
scription of such services, and the conditions for 
receiving a reemployment bonus; 
‘‘(B) has the option to develop a personal 
reemployment plan which will identify the em-
ployment goals and appropriate combination of 
services selected by the individual to achieve the 
employment goals; and 
‘‘(C) signs an attestation that the indi-
vidual has been given the option to develop a 
personal reemployment plan in accordance with 
subparagraph (B), will comply with the require-
ments relating to the personal reemployment 
accounts under this chapter, and will reimburse 
the account or, if the account has been termi-
nated, the program under this chapter, for any 
amounts expended from the account that are 
not allowable.
‘‘(2) PERIODIC INTERVIEWS.—If a recipient ex-
hausts his or her rights to any unemployment com-
pensation, and the recipient has a remaining balance 
in his or her personal reemployment account, the 
one-stop delivery system shall conduct periodic inter-
views with the recipient to assist the recipient in 
meeting his or her individual employment goals. 
‘‘SEC. 135F. USE OF FUNDS. 
‘‘(a) ALLOWABLE ACTIVITIES.—
‘‘(1) IN
GENERAL.—Subject to the require-
ments contained in paragraphs (2) and (3), a recipi-
ent may use amounts in a personal reemployment 
account to purchase one or more of the following: 
‘‘(A) Intensive services, including those 
types 
of 
services 
specified 
in 
section 
134(d)(3)(C). 
‘‘(B) Training services, including those 
types 
of 
services 
specified 
in 
section 
134(d)(4)(D). 
‘‘(C) Supportive services, except for needs-
related payments. 
‘‘(D) Assistance to purchase or lease an 
automobile, if such assistance is necessary to 
allow the recipient to accept a bona fide offer
of employment for which there is a reasonable 
expectation of long-term duration. 
‘‘(2) DELIVERY OF SERVICES.—The following 
requirements relating to delivery of services shall 
apply to the program under this chapter: 
‘‘(A) Recipients may use funds from the 
personal reemployment account to purchase the 
services described in paragraph (1) through the 
one-stop delivery system on a fee-for-service 
basis, or through other providers, consistent 
with safeguards described in the State and local 
plans under section 135G. 
‘‘(B) The local board, through the one-stop 
delivery system, may pay costs for such services 
directly on behalf of the recipient, through a 
voucher system, or by reimbursement to the re-
cipient upon receipt of appropriate cost docu-
mentation, consistent with safeguards described 
in the State plan under section 135G. 
‘‘(C) Each local board, through the one-
stop delivery system, shall make available to re-
cipients information on training providers speci-
fied in section 134(d)(4)(F)(ii), information 
available to the one-stop delivery system on pro-
viders of the intensive and supportive services
described in paragraph (1), and information re-
lating to occupations in demand in the local 
area. 
‘‘(3) LIMITATIONS.—The following limitations 
shall apply with respect to personal reemployment 
accounts under this chapter: 
‘‘(A)(i) Amounts in a personal reemploy-
ment account may be used for up to one year 
from the date of the establishment of the ac-
count. 
‘‘(ii) No personal reemployment account 
may be established beginning 2 years after the 
date of the enactment of the Back to Work In-
centive Act of 2003. 
‘‘(B) Each recipient shall submit cost doc-
umentation as required by the one-stop delivery 
system. 
‘‘(C) For the 1-year period following the 
establishment of the account, recipients may 
not receive intensive, supportive, or training 
services funded under this title except on a fee-
for-services basis as specified in paragraph 
(2)(A). 
‘‘(D) Amounts in a personal reemployment 
account shall be nontransferable.
‘‘(b) INCOME SUPPORT.—A State may authorize re-
cipients determined eligible under section 135E(b)(3)(B) 
to withdraw amounts from the personal reemployment ac-
count on a weekly basis for purposes of income support 
in amounts up to the average weekly amount of unemploy-
ment compensation that the individual received prior to 
his or her exhaustion of rights to unemployment com-
pensation if the individual is engaged in job search, inten-
sive services, or training that is expected to lead to em-
ployment. 
‘‘(c) REEMPLOYMENT BONUS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2)—
‘‘(A) if a recipient determined eligible 
under section 135E(b)(2) obtains full-time em-
ployment before the end of the 13th week of 
unemployment for which unemployment com-
pensation is paid, the balance of his or her per-
sonal reemployment account shall be provided 
directly to the recipient in cash; and 
‘‘(B) if a recipient determined eligible 
under section 135E(b)(3) obtains full-time em-
ployment before the end of the 13th week after 
the date on which the account is established, 
the balance of his or her personal reemployment
account shall be provided directly to the recipi-
ent in cash. 
‘‘(2) LIMITATIONS.—The following limitations 
shall apply with respect to a recipient described in 
paragraph (1): 
‘‘(A) 60 percent of the remaining personal 
reemployment account balance shall be paid to 
the recipient at the time of reemployment. 
‘‘(B) 40 percent of the remaining personal 
reemployment account balance shall be paid to 
the recipient after 26 weeks of employment re-
tention. 
‘‘(3) EXCEPTION REGARDING SUBSEQUENT UN-
EMPLOYMENT.—If a recipient described in para-
graph (1) subsequently becomes unemployed due to 
a lack of work after receiving the portion of the re-
employment bonus specified under paragraph (2)(A), 
the individual may use the amount remaining in the 
personal reemployment account for the purposes de-
scribed in subsection (a) but may not be eligible for 
additional cash payments under this subsection. 
‘‘SEC. 135G. STATE AND LOCAL PLANS. 
‘‘(a) STATE PLAN.—In order for a State to receive 
an allotment under section 135C, the Governor of the 
State shall submit to the Secretary a plan for approval
that includes a description of how the State intends to 
carry out the personal reemployment accounts authorized 
under this chapter, including—
‘‘(1) the criteria and methods to be used for de-
termining eligibility for the personal reemployment 
accounts, including whether the State intends to in-
clude the optional categories described in section 
135E(b)(3), and the additional criteria and priority 
for service that the State intends to apply, if any, 
pursuant to section 135E(b)(2)(B); 
‘‘(2) the methods or procedures, developed in 
consultation with local boards and chief elected offi-
cials, to be used to provide eligible individuals infor-
mation relating to services and providers, and safe-
guards, developed in consultation with such boards 
and officials, to ensure that funds from the personal 
reemployment accounts are used for purposes au-
thorized under this chapter and to ensure the quality 
and integrity of services and providers, consistent 
with the purpose of providing such individuals with 
enhanced flexibility, choice, and control in obtaining 
intensive reemployment, training, and supportive 
services; 
‘‘(3) how the State will coordinate the activities 
carried out under this chapter with the employment
and training activities carried out under section 134 
and other activities carried out by each local board 
through the one-stop delivery system in the State; 
and 
‘‘(4) the methods and procedures for providing 
funds to local areas under section 135D(a)(3). 
‘‘(b) LOCAL PLAN.—In order for a local area to re-
ceive an allocation under section 135D, the local board, 
in partnership with the chief elected official for the local 
area involved, shall submit to the Governor a plan for ap-
proval that includes a description of how the local board 
intends to carry out the personal reemployment accounts, 
consistent with the requirements of this chapter and with 
the State plan established under subsection (a), includ-
ing—
‘‘(1) a description of how the local board will 
coordinate the activities carried out under this chap-
ter with the employment and training activities car-
ried out in the local area under section 134; and 
‘‘(2) a description of the methods or procedures 
to be used to provide eligible individuals information 
relating to the jobs that are available in the local 
area in high demand occupations and information on 
services and providers, and the safeguards the local 
area will initiate to ensure that funds from the per-
sonal reemployment accounts are used for purposes 
authorized under this chapter and to ensure the 
quality and integrity of services and providers, con-
sistent with the purpose of providing such individ-
uals with enhanced flexibility, choice, and control in 
obtaining intensive reemployment, training, and sup-
portive services, and consistent with the State plan. 
‘‘(c) STATE PLAN SUBMISSION AND APPROVAL.—A 
State plan submitted to the Secretary under subsection 
(a) by a Governor shall be considered to be approved by 
the Secretary at the end of the 30-day period beginning 
on the date the Secretary receives the plan, unless the Sec-
retary makes a written determination during such period 
that the plan is incomplete or otherwise inconsistent with 
the provisions of this chapter. 
‘‘SEC. 135H. PROGRAM INFORMATION. 
‘‘The Secretary may require from States the collec-
tion and reporting on such financial, performance, and 
other program-related information as the Secretary deter-
mines is appropriate to carry out this chapter, including 
the evaluation described in section 135I. 
‘‘SEC. 135I. EVALUATION. 
‘‘(a) EVALUATION.—From the amount made avail-
able under section 135C(a)(1), the Secretary, pursuant to 
the authority provided under section 172, shall, directly
or through grants, contracts, or cooperative agreements 
with appropriate entities, conduct an evaluation of the ac-
tivities carried out under this chapter. 
‘‘(b) CONDUCT
OF EVALUATION.—The evaluation 
shall examine the effectiveness of such activities in achiev-
ing the purposes described in section 135A and such other 
purposes as the Secretary determines are appropriate. 
‘‘(c) REPORT.—The report to Congress under section 
172(e) relating to the results of the evaluations required 
under section 172 shall include the recommendation of the 
Secretary with respect to the use of personal reemploy-
ment accounts as a mechanism to assist individuals in ob-
taining and retaining employment.’’. 
SEC. 114. 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), by striking 
‘‘(except for self-service and information activi-
ties) and (for participants who are eligible 
youth age 19 through 21) for youth activities 
authorized under section 129’’; 
(B) by amending subparagraph (A)(i)(IV) 
to read as follows: 
‘‘(IV) the efficiency of the pro-
gram in obtaining the outcomes de-
scribed in subclauses (I) through 
(III).’’; 
(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; 
‘‘(II) attainment of secondary 
school diplomas or their recognized 
equivalents; 
‘‘(III) attainment of literacy or 
numeracy skills; and
‘‘(IV) the efficiency of the pro-
gram in obtaining the outcomes de-
scribed in subclauses (I) through 
(III).’’; 
(D) by striking subparagraph (B); and 
(E) by redesignating subparagraph (C) as 
subparagraph (B). 
(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)’’; 
(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’’; 
(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 inserting ‘‘such as unem-
ployment rates and job losses or gains 
in particular industries’’ after ‘‘eco-
nomic conditions’’; and 
(II) by inserting ‘‘such as indica-
tors of poor work history, lack of work 
experience, low levels of literacy or 
English proficiency, and welfare de-
pendency’’ after ‘‘program’’; 
(E) by striking clause (v); and 
(F) by redesignating 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 
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, low levels of 
literacy or English proficiency, and welfare depend-
ency.’’. 
(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; and 
(2) in paragraph (1)(E), by striking ‘‘(excluding 
participants who received only self-service and infor-
mational activities)’’.
(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 fol-
lows: 
‘‘(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 grants to States for exemplary perform-
ance in carrying programs under chapters 4 
and 5 of this title. Such awards may be based 
on States meeting or exceeding the performance 
measures established under this section, on the 
performance of the State in serving special pop-
ulations, including the levels of service provided 
and the performance outcomes, and such other 
factors relating to the performance 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 demonstra-
tions and innovative programs for special popu-
lations. 
‘‘(2) INCENTIVE GRANTS FOR LOCAL AREAS.—
‘‘(A) IN GENERAL.—From funds reserved 
under sections 128(a) and 133(a), the Governor 
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, and such demonstration or 
other innovative programs to serve special pop-
ulations as may be approved by the Governor.’’. 
(g) REPEAL OF DEFINITIONS.—Sections 502 and 
503 are repealed. 
SEC. 115. AUTHORIZATION OF APPROPRIATIONS. 
(a) YOUTH ACTIVITIES.— Section 137(a) is amended 
by striking ‘‘such sums as may be necessary for each of 
fiscal 
years 
1999 
through 
2003’’ 
and 
inserting 
‘‘$1,001,000,000 for fiscal year 2004 and such sums as 
may be necessary for each of fiscal years 2005 through 
2009’’. 
(b) ADULT EMPLOYMENT AND TRAINING ACTIVI-
TIES.—Section 137(b) is amended by striking ‘‘section 
132(a)(1), such sums as may be necessary for each of fis-
cal years 1999 through 2003’’ and inserting ‘‘132(a), 
$3,079,800,000 for fiscal year 2004 and such sums as 
may be necessary for each of fiscal years 2005 through 
2009’’.
(c) 
DISLOCATED
WORKER
EMPLOYMENT
AND 
TRAINING ACTIVITIES.—Section 137 is further amended 
by striking subsection (c), and adding the following new 
subsection: 
‘‘(c) PERSONAL REEMPLOYMENT ACCOUNTS.—Out 
of any money in the Treasury of the United States not 
otherwise 
appropriated, 
there 
are 
appropriated 
$3,600,000 for fiscal year 2003 to carry out chapter 5A.’’. 
SEC. 116. JOB CORPS. 
(a) COMMUNITY PARTICIPATION.— Section 153 (29 
U.S.C. 2983) is amended—
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) BUSINESS AND COMMUNITY PARTICIPATION.—
The director of each Job Corps center shall ensure the 
establishment and development of the business and com-
munity relationships and networks described in subsection 
(b) in order to enhance the effectiveness of such center.’’; 
(2) in subsection (b)—
(A) in the heading, by striking ‘‘RESPON-
SIBILITIES’’ and inserting ‘‘NETWORKS’’; and 
(B) by striking ‘‘The responsibilities of the 
Liaison’’ and inserting ‘‘The activities carried 
out by each Job Corps center under this sec-
tion’’; and
(3) in subsection (c), by striking ‘‘The Liaison 
for’’ and inserting ‘‘The director of’’. 
(b) INDUSTRY
COUNCILS.—Section 154(b) (29 
U.S.C. 2894) is amended—
(1) in paragraph (1)(A), by striking ‘‘local and 
distant’’; and 
(2) by adding the following new paragraph (3): 
‘‘(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.’’. 
(c) INDICATORS OF PERFORMANCE AND ADDITIONAL 
INFORMATION.—Section 159(c) (29 U.S.C. 2983(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 core indicators for youth identified 
in section 136(b)(2)(A)(ii).’’; and 
(2) in paragraph (2), by striking ‘‘measures’’ in 
each place it appears and inserting ‘‘indicators’’.
SEC. 117. NATIVE AMERICAN PROGRAMS. 
(a) AUTHORIZED ACTIVITIES.—Section 166(d)(2) 
(29 U.S.C. 2911(d)(2)) is amended to read as follows: 
‘‘(2) WORKFORCE INVESTMENT ACTIVITIES AND 
SUPPLEMENTAL
SERVICES.—Funds made available 
under subsection (c) shall be used for—
‘‘(A) comprehensive workforce investment 
activities for Indians or Native Hawaiians; or 
‘‘(B) supplemental services for Indian or 
Native Hawaiian youth on or near Indian res-
ervations and in Oklahoma, Alaska, or Ha-
waii.’’. 
(b) 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.’’. 
(c) ASSISTANCE
TO AMERICAN SAMOANS
IN HA-
WAII.—Section 166(j) (29 U.S.C. 2911(j)) is repealed. 
SEC. 118. YOUTH CHALLENGE GRANTS. 
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 
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 
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 economy experiencing 
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 
this subsection; 
‘‘(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 the funds pro-
vided under this subsection; 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.—In awarding 
grants under this subsection the Secretary may con-
sider the quality of the proposed project, the goals 
to be achieved, the likelihood of successful implemen-
tation, the extent to which the project is based on 
proven strategies or the extent to which the project 
will expand the knowledge base on activities for 
youth, and the additional State, local or private re-
sources that will be provided. 
‘‘(9) EVALUATION.—The Secretary may reserve 
up to 5 percent of the funds described in subsection 
(a)(1) to conduct evaluations of the projects funded 
under this subsection. 
‘‘(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 assist youth in preparing for, and entering and 
retaining, employment.
‘‘(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
share for projects funded under this subsection and 
may require participation of grantees in evaluations 
of such projects’’. 
SEC. 119. TECHNICAL ASSISTANCE. 
Section 170 (29 U.S.C. 2915) is amended—
(1) by striking subsection (b); 
(2) by striking ‘‘(a) GENERAL TECHNICAL AS-
SISTANCE’’; 
(3) by redesignating paragraphs (1), (2), and 
(3) as subsections (a), (b), and (c) respectively; and 
(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,’’ 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 Act Amendments 
of 2003’’.
SEC. 120. DEMONSTRATION, PILOT, MULTISERVICE, RE-
SEARCH AND MULTISTATE PROJECTS. 
(a) DEMONSTRATION AND PILOT PROJECTS.—Sec-
tion 171(b) (29 U.S.C. 2916(b)(1)) is amended—
(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;
‘‘(D) projects carried out by States and 
local areas to test innovative approaches to de-
livering employment-related services;’’; 
(C) by striking subparagraph (E); 
(D) by redesignating subparagraphs (F) 
and (G) as subparagraphs (E) and (F), respec-
tively; and 
(E) by striking subparagraph (H); and 
(2) in paragraph (2)—
(A) by striking subparagraph (B); and 
(B) by redesignating subparagraph (C) as 
subparagraph (B). 
(b) 
MULTISERVICE
PROJECTS.—Section 
171(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 
the public reports containing the results of such 
studies.’’. 
(c) WAIVER AUTHORITY TO CARRY OUT DEM-
ONSTRATIONS
AND
EVALUATIONS.—Section 171 (29 
U.S.C. 2916(d)) is further amended by striking subsection 
(d).
SEC. 121. EVALUATIONS. 
(a) IN GENERAL.—Section 173 (29 U.S.C. 2916) is 
amended—
(1) by amending the heading to read as follows: 
‘‘NATIONAL 
DISLOCATED 
WORKER 
GRANTS’’; 
(2) in subsection (a)—
(A) 
by 
striking 
‘‘national 
emergency 
grants’’ and inserting ‘‘national dislocated 
worker grants’’; 
(B) in paragraph (1), by striking ‘‘sub-
section (c)’’ and inserting ‘‘subsection (b)’’; and 
(C) in paragraph (4), by striking the mat-
ter that precedes subparagraph (A). 
(b) ADMINISTRATION.—Section 173 (29 U.S.C. 
2916) is further amended—
(1) by striking subsection (b) and redesignating 
subsections (c) and (d) as subsections (b) and (c), 
respectively; and 
(2) by striking subsection (e) and redesignating 
subsections (f) and (g) as subsections (d) and (e), 
respectively. 
(c) ELIGIBLE ENTITIES.—Section 173(b)(1)(B) (as 
redesignated by subsection (b) of this section) is amended 
by striking ‘‘, and other entities’’ and all that follows up 
to the period.
SEC. 122. AUTHORIZATION OF APPROPRIATIONS FOR NA-
TIONAL ACTIVITIES. 
(a) IN GENERAL.—Section 174(a)(1) is amended by 
striking ‘‘1999 through 2003’’ and inserting ‘‘2004 
through 2009’’. 
(b) RESERVATIONS.—Section 174(b) is amended to 
read as follows: 
‘‘(b) TECHNICAL ASSISTANCE; DEMONSTRATION AND 
PILOT PROJECTS; EVALUATIONS; INCENTIVE GRANTS.—
There are authorized to be appropriated to carry out sec-
tions 170 through 172 and section 136 such sums as may 
be necessary for each of fiscal years 2004 through 2009.’’. 
SEC. 123. REQUIREMENTS AND RESTRICTIONS. 
(a) IN GENERAL.—Section 181(c)(2)(A) is amended 
by striking ‘‘shall’’ and inserting ‘‘may’’. 
(b) LIMITATIONS.—Section 181(e) is amended by 
striking the first sentence. 
SEC. 124. NONDISCRIMINATION. 
Section 188(a)(2) is amended—
(1) by striking ‘‘No’’ and inserting ‘‘(A) IN 
GENERAL.—Except as provided in subparagraph 
(B), no’’; and 
(2) by adding the following subparagraph: 
‘‘(B) EXEMPTION
FOR
RELIGIOUS
ORGANIZA-
TIONS.—Subparagraph (A) shall not apply to recipi-
ents of financial assistance under this title that is a
religious corporation, association, educational insti-
tution, 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 
activities. Such recipients shall comply with the 
other requirements contained in subparagraph (A).’’. 
SEC. 125. ADMINISTRATIVE PROVISIONS. 
(a) PROGRAM YEAR.—Section 189(g)(1) (29 U.S.C. 
2939(g)(1)) is amended—
(1) by striking ‘‘(A) PROGRAM YEAR.—Except’’ 
and inserting ‘‘Except’’; and 
(2) by striking subparagraph (B) 
(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), by inserting ‘‘, or in 
accordance with subparagraph (D),’’ after ‘‘subpara-
graph (B)’’; 
(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 
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.’’. 
TITLE II—ADULT EDUCATION 
SEC. 201. TABLE OF CONTENTS. 
The table of contents at section 1 is amended by 
amending the items relating to title II to read as follows:
‘‘TITLE II—ADULT BASIC SKILLS EDUCATION 
‘‘Sec. 201. Short title. 
‘‘Sec. 202. Purpose. 
‘‘Sec. 203. Definitions. 
‘‘Sec. 204. Home schools. 
‘‘Sec. 205. Authorization of appropriations. 
‘‘CHAPTER 1—FEDERAL PROVISIONS 
‘‘Sec. 211. Reservation of funds; grants to eligible agencies; allotments. 
‘‘Sec. 212. Performance accountability system. 
‘‘CHAPTER 2—STATE PROVISIONS 
‘‘Sec. 221. State administration. 
‘‘Sec. 222. State distribution of funds; matching requirement. 
‘‘Sec. 223. State leadership activities. 
‘‘Sec. 224. State plan. 
‘‘Sec. 225. Programs for corrections education and other institutionalized indi-
viduals. 
‘‘CHAPTER 3—LOCAL PROVISIONS 
‘‘Sec. 231. Grants and contracts for eligible providers. 
‘‘Sec. 232. Local application.
‘‘Sec. 233. Local administrative cost limits. 
‘‘CHAPTER 4—GENERAL PROVISIONS 
‘‘Sec. 241. Administrative provisions. 
‘‘Sec. 242. National leadership activities.’’.
SEC. 202. AMENDMENT. 
Title II is amended to read as follows: 
‘‘TITLE II—ADULT BASIC SKILLS 
EDUCATION 
‘‘SEC. 201. SHORT TITLE. 
‘‘This title may be cited as the ‘Adult Basic Skills 
Education Act’. 
‘‘SEC. 202. PURPOSE. 
‘‘It is the purpose of this title to provide instructional 
opportunities for adults seeking to improve their basic 
reading, writing, speaking, and math skills, and support 
States and local communities in providing, on a voluntary 
basis, adult basic skills and literacy education, in order 
to—
‘‘(1) increase the basic reading, writing, speak-
ing, and math skills necessary for adults to obtain 
employment and self-sufficiency and to successfully 
advance in the workforce; 
‘‘(2) assist adults in the completion of a sec-
ondary school education (or its equivalent) and the 
transition to postsecondary education;
100
‘‘(3) increase the basic reading, writing, speak-
ing, and math skills of parents to enable them to 
support the educational development of their chil-
dren and make informed choices regarding their 
children’s education; and 
‘‘(4) assist immigrants who are not proficient in 
English in improving their reading, writing, speak-
ing, and math skills and acquiring an understanding 
of the American free enterprise system, individual 
freedom, and the responsibilities of citizenship. 
‘‘SEC. 203. DEFINITIONS. 
‘‘In this title: 
‘‘(1) ADULT EDUCATION.—The term ‘adult edu-
cation’ means a sequence of academic instruction 
and educational services below the postsecondary 
level that increase an individual’s ability to read, 
write, and speak in English and perform mathe-
matical computations leading to a level of proficiency 
equivalent to secondary school completion that is 
provided for individuals—
‘‘(A) who are at least 16 years of age; 
‘‘(B) who are not enrolled or required to be 
enrolled in secondary school under State law; 
and 
‘‘(C) who—
101
‘‘(i) lack sufficient mastery of basic 
reading, writing, speaking, and math skills 
to enable the individuals to function effec-
tively in society; 
‘‘(ii) do not have a secondary school 
diploma or its recognized equivalent, and 
have not achieved an equivalent level of 
education; or 
‘‘(iii) are unable to read, write, or 
speak the English language. 
‘‘(2) ADULT EDUCATION AND BASIC SKILLS AC-
TIVITIES.—The term ‘adult education and basic 
skills activities’ means activities described in section 
231(b). 
‘‘(3) ELIGIBLE
AGENCY.—The term ‘eligible 
agency’—
‘‘(A) means the sole entity or agency in a 
State or an outlying area responsible for admin-
istering or supervising policy for adult edu-
cation and basic skills activities in the State or 
outlying area, respectively, consistent with the 
law of the State or outlying area, respectively; 
and 
‘‘(B) may be the State educational agency, 
the State agency responsible for administering
102
workforce investment activities, or the State 
agency responsible for administering community 
or technical colleges. 
‘‘(4) ELIGIBLE PROVIDER.—The term ‘eligible 
provider’ means—
‘‘(A) a local educational agency; 
‘‘(B) a community-based or faith-based or-
ganization of demonstrated effectiveness; 
‘‘(C) a volunteer literacy organization of 
demonstrated effectiveness; 
‘‘(D) an institution of higher education; 
‘‘(E) a public or private agency; 
‘‘(F) a library; 
‘‘(G) a public housing authority; 
‘‘(H) an institution that is not described in 
any of subparagraphs (A) through (G) and has 
the ability to provide adult basic education and 
basic skills activities to adults and families; or 
‘‘(I) a consortium of the agencies, organi-
zations, institutions, libraries, or authorities de-
scribed in any of subparagraphs (A) through 
(H). 
‘‘(5) ENGLISH
LANGUAGE
ACQUISITION
PRO-
GRAM.—The term ‘English language acquisition pro-
gram’ means a program of instruction designed to
103
help individuals with limited English proficiency 
achieve competence in reading, writing, and speaking 
the English language. 
‘‘(6) ESSENTIAL COMPONENTS OF READING IN-
STRUCTION.—The term ‘essential components of 
reading instruction’ has the meaning given to that 
term in section 1208 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6368). 
‘‘(7) FAMILY LITERACY PROGRAMS.—The term 
‘family literacy programs’ means educational pro-
grams that—
‘‘(A) assist parents and students, on a vol-
untary basis, in achieving the purposes of this 
title as described in section 202; and 
‘‘(B) are of sufficient intensity in terms of 
hours, of sufficient duration, and based upon 
scientific research-based principles, so as to 
substantially increase the ability of both parents 
and children to read, write, and speak English 
and perform mathematical computations. 
‘‘(8) GOVERNOR.—The term ‘Governor’ means 
the chief executive officer of a State or outlying 
area. 
‘‘(9) INDIVIDUAL WITH A DISABILITY.—
104
‘‘(A) IN GENERAL.—The term ‘individual 
with a disability’ means an individual with any 
disability (as defined in section 3 of the Ameri-
cans with Disabilities Act of 1990 (42 U.S.C. 
12102)). 
‘‘(B) INDIVIDUALS WITH DISABILITIES.—
The term ‘individuals with disabilities’ means 
more than one individual with a disability. 
‘‘(10) INDIVIDUAL
WITH
LIMITED
ENGLISH 
PROFICIENCY.—The term ‘individual with limited 
English proficiency’ means an adult or out-of-school 
youth who has limited ability in reading, writing, 
speaking, or understanding the English language, 
and—
‘‘(A) whose native language is a language 
other than English; or 
‘‘(B) who lives in a family or community 
environment where a language other than 
English is the dominant language. 
‘‘(11) INSTITUTION OF HIGHER EDUCATION.—
The term ‘institution of higher education’ has the 
meaning given to that term in section 101 of the 
Higher Education Act of 1965 (20 U.S.C. 1001).
105
‘‘(12) LITERACY.—The term ‘literacy’ means 
the ability to read and write the English language 
with competence, knowledge, and comprehension. 
‘‘(13) LOCAL
EDUCATIONAL
AGENCY.—The 
term ‘local educational agency’ has the meaning 
given to that term in section 9101 of the Elemen-
tary and Secondary Education Act of 1965 (20 
U.S.C. 7801). 
‘‘(14) OUTLYING
AREA.—The term ‘outlying 
area’ has the meaning given to that term in section 
101 of this Act. 
‘‘(15) POSTSECONDARY EDUCATIONAL INSTITU-
TION.—The term ‘postsecondary educational institu-
tion’ means—
‘‘(A) an institution of higher education 
that provides not less than a 2-year program of 
instruction that is acceptable for credit toward 
a bachelor’s degree; 
‘‘(B) a tribally controlled community col-
lege; or 
‘‘(C) a nonprofit educational institution of-
fering certificate or apprenticeship programs at 
the postsecondary level. 
‘‘(16) READING.—The term ‘reading’ has the 
meaning given to that term in section 1208 of the
106
Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6368). 
‘‘(17) SCIENTIFICALLY
BASED
READING
RE-
SEARCH.—The term ‘scientifically based reading re-
search’ has the meaning given to that term in sec-
tion 1208 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6368). 
‘‘(18) 
SECRETARY.—The 
term 
‘Secretary’ 
means the Secretary of Education. 
‘‘(19) STATE.—The term ‘State’ means each of 
the several States of the United States, the District 
of Columbia, and the Commonwealth of Puerto Rico. 
‘‘(20) STATE
EDUCATIONAL
AGENCY.—The 
term ‘State educational agency’ has the meaning 
given to that term in section 9101 of the Elemen-
tary and Secondary Education Act of 1965 (20 
U.S.C. 7801). 
‘‘(21) WORKPLACE LITERACY PROGRAM.—The 
term ‘workplace literacy program’ means an edu-
cational program that is offered for the purpose of 
improving the productivity of the workforce through 
the improvement of reading, writing, speaking, and 
math skills.
107
‘‘SEC. 204. HOME SCHOOLS. 
‘‘Nothing in this title shall be construed to affect 
home schools, or to compel a parent engaged in home 
schooling to participate in an English literacy program, 
family literacy services, or adult education. 
‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to carry out 
this title $584,300,000 for fiscal year 2004 and such sums 
as may be necessary for fiscal years 2005 through 2009. 
‘‘CHAPTER 1—FEDERAL PROVISIONS 
‘‘SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE 
AGENCIES; ALLOTMENTS. 
‘‘(a) RESERVATION OF FUNDS.—From the sums ap-
propriated under section 205 for a fiscal year, the Sec-
retary—
‘‘(1) shall make available, to the Secretary of 
Labor, 1.72 percent for incentive grants under sec-
tion 503; and 
‘‘(2) shall reserve up to 1.55 percent to carry 
out section 242. 
‘‘(b) GRANTS TO ELIGIBLE AGENCIES.—
‘‘(1) IN
GENERAL.—From the sums appro-
priated under section 205 and not reserved under 
subsection (a) for a fiscal year, the Secretary shall 
award a grant to each eligible agency having a State 
plan approved under section 224 in an amount equal
108
to the sum of the initial allotment under subsection 
(c)(1) and the additional allotment under subsection 
(c)(2) for the eligible agency for the fiscal year, sub-
ject to subsections (f) and (g). 
‘‘(2) PURPOSE
OF
GRANTS.—The Secretary 
may award a grant under paragraph (1) only if the 
eligible agency involved agrees to expend the grant 
in accordance with the provisions of this title. 
‘‘(c) ALLOTMENTS.—
‘‘(1) INITIAL
ALLOTMENTS.—From the sums 
appropriated under section 205 and not reserved 
under subsection (a) for a fiscal year, the Secretary 
shall allot to each eligible agency having a State 
plan approved under section 224—
‘‘(A) $100,000, in the case of an eligible 
agency serving an outlying area; and 
‘‘(B) $250,000, in the case of any other el-
igible agency. 
‘‘(2) ADDITIONAL
ALLOTMENTS.—From the 
sums appropriated under section 205, not reserved 
under subsection (a), and not allotted under para-
graph (1), for a fiscal year, the Secretary shall allot 
to each eligible agency that receives an initial allot-
ment under paragraph (1) an additional amount 
that bears the same relationship to such sums as the
109
number of qualifying adults in the State or outlying 
area served by the eligible agency bears to the num-
ber of such adults in all States and outlying areas. 
‘‘(d) QUALIFYING ADULT.—For the purpose of sub-
section (c)(2), the term ‘qualifying adult’ means an adult 
who—
‘‘(1) is at least 16 years of age; 
‘‘(2) is beyond the age of compulsory school at-
tendance under the law of the State or outlying 
area; 
‘‘(3) does not have a secondary school diploma 
or its recognized equivalent; and 
‘‘(4) is not enrolled in secondary school. 
‘‘(e) SPECIAL RULE.—
‘‘(1) IN GENERAL.—From amounts made avail-
able under subsection (c) for the Republic of the 
Marshall Islands, the Federated States of Micro-
nesia, and the Republic of Palau, the Secretary shall 
award grants to Guam, American Samoa, the Com-
monwealth of the Northern Mariana Islands, the Re-
public of the Marshall Islands, the Federated States 
of Micronesia, or the Republic of Palau to carry out 
activities described in this title in accordance with 
the provisions of this title as determined by the Sec-
retary.
110
‘‘(2) TERMINATION OF ELIGIBILITY.—Notwith-
standing any other provision of law, the Republic of 
the Marshall Islands, the Federated States of Micro-
nesia, and the Republic of Palau shall be eligible to 
receive a grant under this title until an agreement 
for the extension of United States education assist-
ance under the Compact of Free Association for 
each of the Freely Associated States becomes effec-
tive. 
‘‘(3) ADMINISTRATIVE COSTS.—The Secretary 
may provide not more than 5 percent of the funds 
made available for grants under this subsection to 
pay the administrative costs of the Pacific Region 
Educational Laboratory regarding activities assisted 
under this subsection. 
‘‘(f) HOLD-HARMLESS PROVISIONS.—
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(c), for fiscal year 2004 and each succeeding fiscal 
year, no eligible agency shall receive an allotment 
under this title that is less than 90 percent of the 
allotment the eligible agency received for the pre-
ceding fiscal year under this title. 
‘‘(2) RATABLE REDUCTION.—If for any fiscal 
year the amount available for allotment under this 
title is insufficient to satisfy the provisions of para-
111
graph (1), the Secretary shall ratably reduce the 
payments to all eligible agencies, as necessary. 
‘‘(g) REALLOTMENT.—The portion of any eligible 
agency’s allotment under this title for a fiscal year that 
the Secretary determines will not be required for the pe-
riod such allotment is available for carrying out activities 
under this title, shall be available for reallotment from 
time to time, on such dates during such period as the Sec-
retary shall fix, to other eligible agencies in proportion to 
the original allotments to such agencies under this title 
for such year. 
‘‘SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM. 
‘‘(a) PURPOSE.—The purpose of this section is to es-
tablish a comprehensive performance accountability sys-
tem, composed of the activities described in this section, 
to assess the effectiveness of eligible agencies in achieving 
continuous improvement of adult education and basic 
skills activities funded under this title, in order to optimize 
the return on investment of Federal funds in adult edu-
cation and basic skills activities. 
‘‘(b) ELIGIBLE
AGENCY
PERFORMANCE
MEAS-
URES.—
‘‘(1) IN GENERAL.—For each eligible agency, 
the eligible agency performance measures shall con-
sist of—
112
‘‘(A)(i) the core indicators of performance 
described in paragraph (2)(A); and 
‘‘(ii) employment performance indicators 
identified by the eligible agency under para-
graph (2)(B); and 
‘‘(B) an eligible agency adjusted level of 
performance for each indicator described in 
subparagraph (A). 
‘‘(2) INDICATORS OF PERFORMANCE.—
‘‘(A) CORE
INDICATORS
OF
PERFORM-
ANCE.—The core indicators of performance 
shall include the following: 
‘‘(i) 
Measurable 
improvements 
in 
basic skill levels in reading, writing, and 
speaking the English language and math, 
and English language acquisition leading 
to proficiency in each skill. 
‘‘(ii) Receipt of a secondary school di-
ploma or its recognized equivalent. 
‘‘(iii) Placement in postsecondary edu-
cation. 
‘‘(B) EMPLOYMENT
PERFORMANCE
INDI-
CATORS.—An eligible agency shall identify in 
the State plan the following individual partici-
pant employment performance indicators—
113
‘‘(i) entry into employment; 
‘‘(ii) retention in employment; and 
‘‘(iii) increase in earnings. 
‘‘(3) LEVELS OF PERFORMANCE.—
‘‘(A) ELIGIBLE AGENCY ADJUSTED LEVELS 
OF PERFORMANCE FOR CORE INDICATORS.—
‘‘(i) IN GENERAL.—For each eligible 
agency submitting a State plan, there shall 
be established, in accordance with this sub-
paragraph, levels of performance for each 
of the core indicators of performance de-
scribed in paragraph (2)(A) for adult edu-
cation and basic skills activities authorized 
under this title. The levels of performance 
established under this subparagraph shall, 
at a minimum—
‘‘(I) be expressed in an objective, 
quantifiable, and measurable form; 
and 
‘‘(II) show the progress of the el-
igible agency toward continuously and 
significantly improving its perform-
ance outcomes in an objective, quan-
tifiable, and measurable form.
114
‘‘(ii) 
IDENTIFICATION
IN
STATE 
PLAN.—Each eligible agency shall identify, 
in the State plan submitted under section 
224, expected levels of performance for 
each of the core indicators of performance 
for the first 3 program years covered by 
the State plan. 
‘‘(iii) 
AGREEMENT
ON
ELIGIBLE 
AGENCY ADJUSTED LEVELS OF PERFORM-
ANCE FOR FIRST 3 YEARS.—In order to en-
sure an optimal return on the investment 
of Federal funds in adult education and 
basic skills activities authorized under this 
title, the Secretary and each eligible agen-
cy shall reach agreement on levels of stu-
dent proficiency for each of the core indi-
cators of performance, for the first 3 pro-
gram years covered by the State plan, tak-
ing into account the levels identified in the 
State plan under clause (ii) and the factors 
described in clause (iv). The levels agreed 
to under this clause shall be considered to 
be the eligible agency adjusted levels of 
performance for the eligible agency for 
such years and shall be incorporated into
115
the State plan prior to the approval of 
such plan. 
‘‘(iv) FACTORS.—The agreement de-
scribed in clause (iii) or (v) shall take into 
account—
‘‘(I) how the levels involved com-
pare with the eligible agency’s ad-
justed levels of performance, taking 
into account factors including the 
characteristics of participants when 
the participants entered the program; 
and 
‘‘(II) the extent to which such 
levels promote continuous and signifi-
cant improvement in performance on 
the student proficiency measures used 
by such eligible agency and ensure op-
timal return on the investment of 
Federal funds. 
‘‘(v) AGREEMENT ON ELIGIBLE AGEN-
CY ADJUSTED LEVELS OF PERFORMANCE 
FOR SECOND 3 YEARS.—Prior to the fourth 
program year covered by the State plan, 
the Secretary and each eligible agency 
shall reach agreement on levels of perform-
116
ance for each of the core indicators of stu-
dent proficiency for the fourth, fifth, and 
sixth program years covered by the State 
plan, taking into account the factors de-
scribed in clause (iv). The levels agreed to 
under this clause shall be considered to be 
the eligible agency adjusted levels of per-
formance for the eligible agency for such 
years and shall be incorporated into the 
State plan. 
‘‘(vi) REVISIONS.—If unanticipated 
circumstances arise in a State resulting in 
a significant change in the factors de-
scribed in clause (iv)(I), the eligible agency 
may request that the eligible agency ad-
justed levels of performance agreed to 
under clause (iii) or (v) be revised. 
‘‘(B) LEVELS OF EMPLOYMENT PERFORM-
ANCE.—The eligible agency shall identify, in the 
State plan, eligible agency levels of performance 
for each of the employment performance indica-
tors described in paragraph (2)(B). Such levels 
shall be considered to be eligible agency ad-
justed levels of performance for purposes of this 
title.
117
‘‘(c) REPORT.—
‘‘(1) IN GENERAL.—Each eligible agency that 
receives a grant under section 211(b) shall annually 
prepare and submit to the Secretary, the Governor, 
the State legislature, eligible providers, and the gen-
eral public within the State, a report on the progress 
of the eligible agency in achieving eligible agency 
performance measures, including the following: 
‘‘(A) Information on the levels of perform-
ance achieved by the eligible agency with re-
spect to the core indicators of performance and 
employment performance indicators. 
‘‘(B) The number and type of each eligible 
provider that receives funding under such 
grant. 
‘‘(2) INFORMATION DISSEMINATION.—The Sec-
retary—
‘‘(A) shall make the information contained 
in such reports available to the general public 
through publication and other appropriate 
methods; 
‘‘(B) shall disseminate State-by-State com-
parisons of the information; and 
‘‘(C) shall provide the appropriate commit-
tees of Congress with copies of such reports.
118
‘‘CHAPTER 2—STATE PROVISIONS 
‘‘SEC. 221. STATE ADMINISTRATION. 
‘‘Each eligible agency shall be responsible for the fol-
lowing activities under this title: 
‘‘(1) The development, submission, implementa-
tion, and monitoring of the State plan. 
‘‘(2) Consultation with other appropriate agen-
cies, groups, and individuals that are involved in, or 
interested in, the development and implementation 
of activities assisted under this title. 
‘‘(3) Coordination and avoidance of duplication 
with other Federal and State education, training, 
corrections, public housing, and social service pro-
grams. 
‘‘(4) Assisting eligible providers in providing 
sufficiently rigorous instructional practices for con-
tinuous and significant improvement and in imple-
menting and reporting measurable progress in 
achieving the objectives of this title. 
‘‘SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING RE-
QUIREMENT. 
‘‘(a) STATE DISTRIBUTION OF FUNDS.—Each eligi-
ble agency receiving a grant under this title for a fiscal 
year—
119
‘‘(1) shall use an amount not less than 82.5 
percent of the grant funds to award grants and con-
tracts under section 231 and to carry out section 
225, of which not more than 10 percent of such 
amount shall be available to carry out section 225; 
‘‘(2) shall use not more than 12.5 percent of 
the grant funds to carry out State leadership activi-
ties under section 223; and 
‘‘(3) shall use not more than 5 percent of the 
grant funds, or $65,000, whichever is greater, for 
the administrative expenses of the eligible agency. 
‘‘(b) MATCHING REQUIREMENT.—
‘‘(1) IN GENERAL.—In order to receive a grant 
from the Secretary under section 211(b), each eligi-
ble agency shall provide, for the costs to be incurred 
by the eligible agency in carrying out the adult edu-
cation and basic skills activities for which the grant 
is awarded, a non-Federal contribution in an amount 
at least equal to— 
‘‘(A) in the case of an eligible agency serv-
ing an outlying area, 12 percent of the total 
amount of funds expended for adult education 
and literacy activities in the outlying area, ex-
cept that the Secretary may decrease the
120
amount of funds required under this subpara-
graph for an eligible agency; and 
‘‘(B) in the case of an eligible agency serv-
ing a State, 25 percent of the total amount of 
funds expended for adult education and basic 
skills activities in the State. 
‘‘(2) NON-FEDERAL CONTRIBUTION.—An eligi-
ble agency’s non-Federal contribution required under 
paragraph (1) may be provided in cash or in kind, 
fairly evaluated, and shall include only non-Federal 
funds that are used for adult education and basic 
skills activities in a manner that is consistent with 
the purpose of this title. 
‘‘SEC. 223. STATE LEADERSHIP ACTIVITIES. 
‘‘(a) IN GENERAL.—Each eligible agency may use 
funds made available under section 222(a)(2) for any of 
the following adult education and basic skills activities: 
‘‘(1) The establishment or operation of profes-
sional development programs to improve the quality 
of instruction provided pursuant to local activities 
required under section 231(b), including instruction 
incorporating the essential components of reading 
instruction and instruction provided by volunteers or 
by personnel of a State or outlying area.
121
‘‘(2) The provision of technical assistance to eli-
gible providers of adult education and basic skills ac-
tivities for development and dissemination of sci-
entific research-based instructional practices in read-
ing, writing, speaking, math, and English language 
acquisition programs. 
‘‘(3) The provision of assistance to eligible pro-
viders in developing, implementing, and reporting 
measurable progress in achieving the objectives of 
this title. 
‘‘(4) The provision of technology assistance, in-
cluding staff training, to eligible providers of adult 
education and basic skills activities, including dis-
tance learning activities, to enable the eligible pro-
viders to improve the quality of such activities. 
‘‘(5) The development and implementation of 
technology applications or distance learning, includ-
ing professional development to support the use of 
instructional technology. 
‘‘(6) Coordination with other public programs, 
including welfare-to-work, workforce development, 
and job training programs. 
‘‘(7) Coordination with existing support serv-
ices, such as transportation, child care, and other 
assistance designed to increase rates of enrollment
122
in, and successful completion of, adult education and 
basic skills activities, for adults enrolled in such ac-
tivities. 
‘‘(8) The development and implementation of a 
system to assist in the transition from adult basic 
education to postsecondary education. 
‘‘(9) Activities to promote workplace literacy 
programs. 
‘‘(10) Other activities of statewide significance, 
including assisting eligible agencies in achieving 
progress in improving the skill levels of adults who 
participate in programs under this title. 
‘‘(b) COORDINATION.—In carrying out this section, 
eligible agencies shall coordinate where possible, and avoid 
duplicating efforts, in order to maximize the impact of the 
activities described in subsection (a). 
‘‘(c) STATE-IMPOSED REQUIREMENTS.—Whenever a 
State or outlying area implements any rule or policy relat-
ing to the administration or operation of a program au-
thorized under this title that has the effect of imposing 
a requirement that is not imposed under Federal law (in-
cluding any rule or policy based on a State or outlying 
area interpretation of a Federal statute, regulation, or 
guideline), the State or outlying area shall identify, to eli-
123
gible providers, the rule or policy as being imposed by the 
State or outlying area. 
‘‘SEC. 224. STATE PLAN. 
‘‘(a) 6-YEAR PLANS.—
‘‘(1) IN GENERAL.—Each eligible agency desir-
ing a grant under this title for any fiscal year shall 
submit to, or have on file with, the Secretary a 6-
year State plan. 
‘‘(2) COMPREHENSIVE
PLAN
OR
APPLICA-
TION.—The eligible agency may submit the State 
plan as part of a comprehensive plan or application 
for Federal education assistance. 
‘‘(b) PLAN CONTENTS.—The eligible agency shall in-
clude in the State plan or any revisions to the State plan—
‘‘(1) an objective assessment of the needs of in-
dividuals in the State or outlying area for adult edu-
cation and basic skills activities, including individ-
uals most in need or hardest to serve; 
‘‘(2) a description of the adult education and 
basic skills activities that will be carried out with 
funds received under this title; 
‘‘(3) a description of how the eligible agency 
will evaluate and measure annually the effectiveness 
and improvement of the adult education and basic
124
skills activities based on the performance measures 
described in section 212 including—
‘‘(A) how the eligible agency will evaluate 
and measure annually such effectiveness on a 
grant-by-grant basis; and 
‘‘(B) how the eligible agency—
‘‘(i) will hold eligible providers ac-
countable regarding the progress of such 
providers 
in 
improving 
the 
academic 
achievement of participants in adult edu-
cation programs under this title and re-
garding the core indicators of performance 
described in section 212(b)(2)(A); and 
‘‘(ii) will use technical assistance, 
sanctions, and rewards (including alloca-
tion of grant funds based on performance 
and termination of grant funds based on 
nonperformance); 
‘‘(4) a description of the performance measures 
described in section 212 and how such performance 
measures have significantly improved adult edu-
cation and basic skills activities in the State or out-
lying area; 
‘‘(5) an assurance that the eligible agency will, 
in addition to meeting all of the other requirements
125
of this title, award not less than one grant under 
this title to an eligible provider that—
‘‘(A) offers flexible schedules and necessary 
support services (such as child care and trans-
portation) to enable individuals, including indi-
viduals with disabilities, or individuals with 
other special needs, to participate in adult edu-
cation and basic skills activities; and 
‘‘(B) attempts to coordinate with support 
services that are not provided under this title 
prior to using funds for adult education and 
basic skills activities provided under this title 
for support services; 
‘‘(6) an assurance that the funds received under 
this title will not be expended for any purpose other 
than for activities under this title; 
‘‘(7) a description of how the eligible agency 
will fund local activities in accordance with the 
measurable goals described in section 231(d); 
‘‘(8) an assurance that the eligible agency will 
expend the funds under this title only in a manner 
consistent with fiscal requirements in section 241; 
‘‘(9) a description of the process that will be 
used for public participation and comment with re-
spect to the State plan, which process—
126
‘‘(A) shall include consultation with the 
State workforce investment board, the State 
board responsible for administering community 
or technical colleges, the Governor, the State 
educational agency, the State board or agency 
responsible for administering block grants for 
temporary assistance to needy families under 
title IV of the Social Security Act, the State 
council on disabilities, the State vocational re-
habilitation agency, other State agencies that 
promote the improvement of adult basic edu-
cation and literacy levels, and direct providers 
of adult basic skills education programs; and 
‘‘(B) may include consultation with the 
State agency on higher education, institutions 
responsible for professional development of 
adult basic education and reading instructors, 
representatives of business and industry, ref-
ugee assistance programs, and faith-based orga-
nizations; 
‘‘(10) a description of the eligible agency’s 
strategies for serving populations that include, at a 
minimum—
‘‘(A) low-income individuals; 
‘‘(B) individuals with disabilities;
127
‘‘(C) the unemployed; 
‘‘(D) the underemployed; and 
‘‘(E) individuals with multiple barriers to 
educational enhancement, including individuals 
with limited English proficiency; 
‘‘(11) a description of how the adult education 
and basic skills activities that will be carried out 
with any funds received under this title will be inte-
grated with other adult education, career develop-
ment, and employment and training activities in the 
State or outlying area served by the eligible agency; 
‘‘(12) a description of the steps the eligible 
agency will take to ensure direct and equitable ac-
cess, as required in section 231(c)(1), including—
‘‘(A) how the State will build the capacity 
of community-based and faith-based organiza-
tions to provide adult basic and literacy edu-
cation; and 
‘‘(B) how the State will increase the par-
ticipation of business and industry in adult 
basic and literacy education; and 
‘‘(13) a description of how the eligible agency 
will consult with any State agency responsible for 
postsecondary education to develop adult education 
that prepares students to enter postsecondary edu-
128
cation without the need for remediation upon com-
pletion of secondary school equivalency programs. 
‘‘(c) PLAN REVISIONS.—When changes in conditions 
or other factors require substantial revisions to an ap-
proved State plan, the eligible agency shall submit the re-
visions to the State plan to the Secretary. 
‘‘(d) CONSULTATION.—The eligible agency shall—
‘‘(1) submit the State plan, and any revisions to 
the State plan, to the Governor of the State or out-
lying area for review and comment; and 
‘‘(2) ensure that any comments regarding the 
State plan by the Governor, the chief State school 
officer, or the State officer responsible for admin-
istering community or technical colleges, and any re-
vision to the State plan, are submitted to the Sec-
retary. 
‘‘(e) PLAN APPROVAL.—A State plan submitted to 
the Secretary shall be approved by the Secretary only if 
the plan is consistent with the specific provisions of this 
title. 
‘‘(f) TRANSITION.—The provisions of this section 
shall be subject to section 506(b).
129
‘‘SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND 
OTHER INSTITUTIONALIZED INDIVIDUALS. 
‘‘(a) PROGRAM AUTHORIZED.—From funds made 
available under section 222(a)(1) for a fiscal year, each 
eligible agency shall carry out corrections education and 
education for other institutionalized individuals. 
‘‘(b) USES OF FUNDS.—The funds described in sub-
section (a) shall be used for the cost of educational pro-
grams for criminal offenders in correctional institutions 
and for other institutionalized individuals, including aca-
demic programs for—
‘‘(1) basic skills education; 
‘‘(2) special education programs as determined 
by the eligible agency; 
‘‘(3) reading, writing, speaking, and math pro-
grams; and 
‘‘(4) secondary school credit or diploma pro-
grams or their recognized equivalent. 
‘‘(c) PRIORITY.—Each eligible agency that is using 
assistance provided under this section to carry out a pro-
gram for criminal offenders within a correctional institu-
tion shall give priority to serving individuals who are likely 
to leave the correctional institution within 5 years of par-
ticipation in the program. 
‘‘(d) DEFINITION OF CRIMINAL OFFENDER.—
130
‘‘(1) CRIMINAL OFFENDER.—The term ‘crimi-
nal offender’ means any individual who is charged 
with, or convicted of, any criminal offense. 
‘‘(2) CORRECTIONAL INSTITUTION.—The term 
‘correctional institution’ means any—
‘‘(A) prison; 
‘‘(B) jail; 
‘‘(C) reformatory; 
‘‘(D) work farm; 
‘‘(E) detention center; or 
‘‘(F) halfway house, community-based re-
habilitation center, or any other similar institu-
tion designed for the confinement or rehabilita-
tion of criminal offenders. 
‘‘CHAPTER 3—LOCAL PROVISIONS 
‘‘SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PRO-
VIDERS. 
‘‘(a) GRANTS AND CONTRACTS.—From grant funds 
made available under section 211(b), each eligible agency 
shall award multiyear grants or contracts, on a competi-
tive basis, to eligible providers within the State or outlying 
area that meet the conditions and requirements of this 
title to enable the eligible providers to develop, implement, 
and improve adult education and basic skills activities 
within the State.
131
‘‘(b) LOCAL ACTIVITIES.—The eligible agency shall 
require eligible providers receiving a grant or contract 
under subsection (a) to establish or operate one or more 
programs of instruction that provide services or instruc-
tion in one or more of the following categories: 
‘‘(1) Adult basic skills education and literacy 
programs, including essential workplace skills (in-
cluding proficiency in reading, writing, speaking, 
and math). 
‘‘(2) Workplace literacy programs. 
‘‘(3) English language acquisition programs. 
‘‘(4) Family literacy programs. 
‘‘(c) DIRECT AND EQUITABLE ACCESS; SAME PROC-
ESS.—Each eligible agency receiving funds under this title 
shall ensure that— 
‘‘(1) all eligible providers have direct and equi-
table access to apply for grants or contracts under 
this section; and 
‘‘(2) the same grant or contract announcement 
process and application process is used for all eligi-
ble providers in the State or outlying area. 
‘‘(d) MEASURABLE GOALS.—The eligible agency shall 
require eligible providers receiving a grant or contract 
under subsection (a) to demonstrate—
132
‘‘(1) the eligible provider’s measurable goals for 
participant outcomes to be achieved annually on the 
core indicators of performance and employment per-
formance indicators described in section 212(b)(2); 
‘‘(2) the past effectiveness of the eligible pro-
vider in improving the basic academic skills of adults 
and, for eligible providers receiving grants in the 
prior year, the success of the eligible provider receiv-
ing funding under this title in meeting or exceeding 
its performance goals in the prior year; 
‘‘(3) the commitment of the eligible provider to 
serve individuals in the community who are the most 
in need of basic academic skills instruction services, 
including individuals who are low-income or have 
minimal reading, writing, speaking, and math skills, 
or limited English proficiency. 
‘‘(4) whether or not the program—
‘‘(A) is of sufficient intensity and duration 
for participants to achieve substantial learning 
gains; and 
‘‘(B) uses instructional practices that in-
clude the essential components of reading in-
struction; 
‘‘(5) whether educational practices are based on 
scientifically based research;
133
‘‘(6) whether the activities of the eligible pro-
vider effectively employ advances in technology, as 
appropriate, including the use of computers; 
‘‘(7) whether the activities provide instruction 
in real-life contexts, to ensure that an individual has 
the skills needed to compete in the workplace and 
exercise the rights and responsibilities of citizenship; 
‘‘(8) whether the activities are staffed by well-
trained instructors, counselors, and administrators; 
‘‘(9) whether the activities are coordinated with 
other available resources in the community, such as 
through strong links with elementary schools and 
secondary schools, postsecondary educational institu-
tions, one-stop centers, job training programs, com-
munity-based and faith-based organizations, and so-
cial service agencies; 
‘‘(10) whether the activities offer flexible sched-
ules and support services (such as child care and 
transportation) that are necessary to enable individ-
uals, including individuals with disabilities or other 
special needs, to attend and complete programs; 
‘‘(11) whether the activities include a high-qual-
ity information management system that has the ca-
pacity to report measurable participant outcomes 
and to monitor program performance against the
134
performance measures established by the eligible 
agency; 
‘‘(12) whether the local communities have a 
demonstrated need for additional English language 
acquisition programs; 
‘‘(13) the capacity of the eligible provider to 
produce valid information on performance results, 
including enrollments and measurable participant 
outcomes; and 
‘‘(14) whether there is a sequence of rigorous 
courses in reading, writing, speaking, and math, in-
structional practices based on scientific research, ap-
plications of technology, and services to be provided 
by the eligible provider, of sufficient intensity and 
duration to increase the amount and quality of 
learning and lead to measurable learning gains with-
in specified time periods. 
‘‘SEC. 232. LOCAL APPLICATION. 
‘‘Each eligible provider desiring a grant or contract 
under this title shall submit an application to the eligible 
agency containing such information and assurances as the 
eligible agency may require, including—
‘‘(1) a description of how funds awarded under 
this title will be spent consistent with the require-
ments of this title;
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‘‘(2) a description of any cooperative arrange-
ments the eligible provider has with other agencies, 
institutions, or organizations for the delivery of 
adult education and basic skills activities; and 
‘‘(3) each of the demonstrations required by 
section 231(d). 
‘‘SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS. 
‘‘(a) IN GENERAL.—Subject to subsection (b), of the 
amount that is made available under this title to an eligi-
ble provider—
‘‘(1) at least 95 percent shall be expended for 
carrying out adult education and basic skills activi-
ties; and 
‘‘(2) the remaining amount shall be used for 
planning, administration, personnel and professional 
development, development of measurable goals in 
reading, writing, speaking, and math, and inter-
agency coordination. 
‘‘(b) SPECIAL RULE.—In cases where the cost limits 
described in subsection (a) are too restrictive to allow for 
adequate planning, administration, personnel develop-
ment, and interagency coordination, the eligible provider 
may negotiate with the eligible agency in order to deter-
mine an adequate level of funds to be used for noninstruc-
tional purposes.
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‘‘CHAPTER 4—GENERAL PROVISIONS 
‘‘SEC. 241. ADMINISTRATIVE PROVISIONS. 
‘‘(a) SUPPLEMENT NOT SUPPLANT.—Funds made 
available for adult education and basic skills activities 
under this title shall supplement and not supplant other 
State or local public funds expended for adult education 
and basic skills activities. 
‘‘(b) MAINTENANCE OF EFFORT.—
‘‘(1) IN GENERAL.—
‘‘(A) DETERMINATION.—An eligible agency 
may receive funds under this title for any fiscal 
year if the Secretary finds that the fiscal effort 
per student or the aggregate expenditures of 
such eligible agency for activities under this 
title, in the second preceding fiscal year, were 
not less than 90 percent of the fiscal effort per 
student or the aggregate expenditures of such 
eligible agency for adult education and basic 
skills activities, in the third preceding fiscal 
year. 
‘‘(B) PROPORTIONATE REDUCTION.—Sub-
ject to paragraphs (2), (3), and (4), for any fis-
cal year with respect to which the Secretary de-
termines under subparagraph (A) that the fiscal 
effort or the aggregate expenditures of an eligi-
137
ble agency for the preceding program year were 
less than such effort or expenditures for the 
second preceding program year, the Secretary—
‘‘(i) shall determine the percentage 
decreases in such effort or in such expendi-
tures; and 
‘‘(ii) shall decrease the payment made 
under this title for such program year to 
the agency for adult education and basic 
skills activities by the lesser of such per-
centages. 
‘‘(2) COMPUTATION.—In computing the fiscal 
effort and aggregate expenditures under paragraph 
(1), the Secretary shall exclude capital expenditures 
and special one-time project costs. 
‘‘(3) DECREASE IN FEDERAL SUPPORT.—If the 
amount made available for adult education and basic 
skills activities under this title for a fiscal year is 
less than the amount made available for adult edu-
cation and basic skills activities under this title for 
the preceding fiscal year, then the fiscal effort per 
student and the aggregate expenditures of an eligible 
agency required in order to avoid a reduction under 
paragraph (1)(B) shall be decreased by the same
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percentage as the percentage decrease in the amount 
so made available. 
‘‘(4) WAIVER.—The Secretary may waive the 
requirements of this subsection for not more than 1 
fiscal year, if the Secretary determines that a waiver 
would be equitable due to exceptional or uncontrol-
lable circumstances, such as a natural disaster or an 
unforeseen and precipitous decline in the financial 
resources of the State or outlying area of the eligible 
agency. If the Secretary grants a waiver under the 
preceding sentence for a fiscal year, the level of ef-
fort required under paragraph (1) shall not be re-
duced in the subsequent fiscal year because of the 
waiver. 
‘‘SEC. 242. NATIONAL LEADERSHIP ACTIVITIES. 
‘‘The Secretary shall establish and carry out a pro-
gram of national leadership activities that may include the 
following: 
‘‘(1) Technical assistance, on request, including 
assistance—
‘‘(A) to volunteer community- and faith-
based organizations, including but not limited 
to, improving their fiscal management, re-
search-based instruction, and reporting require-
ments, and the development of measurable ob-
139
jectives to carry out the requirements of this 
title; 
‘‘(B) in developing valid, measurable, and 
reliable performance data, and using perform-
ance information for the improvement of adult 
basic and literacy education programs; 
‘‘(C) on adult education professional devel-
opment; and 
‘‘(D) in using distance learning and im-
proving the application of technology in the 
classroom. 
‘‘(2) Providing for the conduct of research on 
basic skills acquisition among adults, including the 
number of adults functioning at different levels of 
reading proficiency. 
‘‘(3) Improving the coordination, efficiency, and 
effectiveness of adult education and workforce devel-
opment services at the national, State, and local lev-
els. 
‘‘(4) Determining how participation in adult 
basic and literacy education programs prepares indi-
viduals for entry into and success in postsecondary 
education and employment, and in the case of pris-
on-based services, the effect on recidivism.
140
‘‘(5) Evaluating how different types of pro-
viders, including community and faith-based organi-
zations or private for-profit agencies measurably im-
prove the skills of participants in adult basic and lit-
eracy education programs. 
‘‘(6) Identifying model integrated basic and 
workplace skills education programs, coordinated lit-
eracy and employment services, and effective strate-
gies for serving adults with disabilities. 
‘‘(7) Initiating other activities designed to im-
prove the measurable quality and effectiveness of 
adult education and literacy programs nationwide.’’. 
TITLE III—AMENDMENTS TO 
OTHER PROVISIONS OF LAW 
SEC. 301. REPEAL OF WAGNER-PEYSER PROVISIONS. 
Sections 1 through 13 of the Wagner-Peyser Act (29 
U.S.C. 49 et. seq.) are repealed. 
TITLE IV—AMENDMENTS TO THE 
REHABILITATION ACT OF 1973
SEC. 401. CHAIRPERSON. 
Section 705(b)(5) of the Rehabilitation Act of 1973 
(29 U.S.C. 796d(b)(5)) is amended to read as follows: 
‘‘(5) CHAIRPERSON.—The Council shall select a 
chairperson from among the voting membership of 
the Council.’’.
141
SEC. 402. REHABILITATION SERVICES ADMINISTRATION. 
Section 3(a) of the Rehabilitation Act of 1973 (29 
U.S.C. 702(a)) is amended—
(1) by striking ‘‘Office of the Secretary’’ and 
inserting ‘‘Department of Education’’; 
(2) by striking ‘‘President of the United States 
by and with the advice and consent of the Senate’’ 
and inserting ‘‘Secretary’’; and 
(3) by striking ‘‘, and the Commissioner shall 
be the principal officer,’’. 
SEC. 403. DIRECTOR. 
The Rehabilitation Act of 1973 (29 U.S.C. 701 et 
seq.) is amended by striking ‘‘Commissioner’’ each place 
it appears and inserting ‘‘Director’’. 
SEC. 404. STATE GOALS. 
Section 101(a)(29 U.S.C. 721(a)) is amended—
(1) in paragraph (11)(D)(i) by inserting ‘‘, 
which may be provided using alternative means of 
meeting participation (such as video conferences and 
conference calls),’’ before the semicolon; and 
(2) in paragraph (15)—
(A) in subparagraph (A), by redesignating 
clauses (ii) and (iii) as clauses (iii) and (iv), re-
spectively, and inserting the following new 
clause:
142
‘‘(ii) include an assessment of the 
transition services provided under this Act, 
and coordinated with transition services 
under the Individuals with Disabilities 
Education Act, as to those services meet-
ing the needs of individuals with disabil-
ities.’’; and 
(B) by amending subparagraph (D)(i) to 
read as follows: 
‘‘(i) the methods to be used to expand 
and improve the services to individuals 
with disabilities including—
‘‘(I) how a broad range of assist-
ive technology services and assistive 
technology devices will be provided to 
such individuals at each stage of the 
rehabilitative process and how such 
services and devices will be provided 
to such individuals on a statewide 
basis; and 
‘‘(II) how transition services will 
be better coordinated with those serv-
ices under the Individuals with Dis-
abilities Education Act in order to im-
prove transition services for individ-
143
uals with disabilities served under this 
Act;’’. 
SEC. 405. AUTHORIZATIONS OF APPROPRIATIONS. 
The Rehabilitation Act of 1973 is further amended—
(1) in section 100(b)(1) by striking ‘‘fiscal 
years 1999 through 2003’’ and inserting ‘‘fiscal 
years 2004 through 2009’’; 
(2) in section 100(d)(B) by striking ‘‘fiscal year 
2003’’ and inserting ‘‘fiscal year 2009’’; 
(3) in section 110(c) by amending paragraph 
(2) to read as follows: 
‘‘(2) The sum referred to in paragraph (1) shall 
be, as determined by the Secretary, not less than 1 
percent and not more than 1.5 percent of the 
amount referred to in paragraph (1) for each of fis-
cal years 2003 through 2009.’’; 
(4) in section 112(h) by striking ‘‘fiscal years 
1999 through 2003’’ and inserting ‘‘fiscal years 
2004 through 2009’’; 
(5) in section 201 by striking ‘‘fiscal years 
1999 through 2003’’ and inserting ‘‘fiscal years 
2004 through 2009’’ each place it appears; 
(6) in section 302(i) by striking ‘‘fiscal years 
1999 through 2003’’ and inserting ‘‘fiscal years 
2004 through 2009’’;
144
(7) in section 303(e) by striking ‘‘fiscal years 
1999 through 2003’’ and inserting ‘‘fiscal years 
2004 through 2009’’; 
(8) in section 304(b) by striking ‘‘fiscal years 
1999 through 2003’’ and inserting ‘‘fiscal years 
2004 through 2009’’; 
(9) in section 305(b) by striking ‘‘fiscal years 
1999 through 2003’’ and insert ‘‘fiscal years 2004 
through 2009’’; 
(10) in section 405 by striking ‘‘fiscal years 
1999 through 2003’’ and inserting ‘‘fiscal years 
2004 through 2009’’; 
(11) in section 502(j) by striking ‘‘fiscal years 
1999 through 2003’’ and inserting ‘‘fiscal years 
2004 through 2009’’; 
(12) in section 509(l) by striking ‘‘fiscal years 
1999 through 2003’’ and inserting ‘‘fiscal years 
2004 through 2009’’; 
(13) in section 612 by striking ‘‘fiscal years 
1999 through 2003’’ and inserting ‘‘fiscal years 
2004 through 2009’’; 
(14) in section 628 by striking ‘‘fiscal years 
1999 through 2003’’ and inserting ‘‘fiscal years 
2004 through 2009’’;