‘‘(10) a description of the strategies and services 
that will be initiated in the local area to engage em-
ployers, including small employers, in workforce de-
velopment activities; 
‘‘(11) how the local area will serve the employ-
ment and training needs of individuals with disabil-
ities, consistent with section 188 and Executive Order 
13217 (42 U.S.C. 12131 note) including the provision 
of outreach, intake, assessments, and service delivery, 
the development of performance measures, the train-
ing of staff, and other aspects of accessibility to pro-
gram services, consistent with sections 504 and 508 of 
the Rehabilitation Act of 1973; and’’. 
SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYS-
TEMS. 
(a) ONE-STOP PARTNERS.—
(1) REQUIRED
PARTNERS.—Section 121(b)(1) 
(29 U.S.C. 2841(b)(1)) is amended—
(A) in subparagraph (B)—
(i) by striking clauses (ii) and (v); 
(ii) by redesignating clauses (iii) and 
(iv) as clauses (ii) and (iii), respectively, 
and by redesignating clauses (vi) through 
(xii) as clauses (iv) through (x), respec-
tively;
(iii) in clause (ix) (as so redesignated), 
by striking ‘‘and’’ at the end; 
(iv) in clause (x) (as so redesignated), 
by striking the period and inserting ‘‘; 
and’’; and 
(v) by inserting after clause (x)(as so 
redesignated) the following: 
‘‘(xi) programs authorized under part 
A of title IV of the Social Security Act (42 
U.S.C. 601 et. seq.), subject to subparagraph 
(C).’’; and 
(B) by adding after subparagraph (B) the 
following: 
‘‘(C) DETERMINATION BY THE GOVERNOR.—
The program referred to in clause (xi) of sub-
paragraph (B) shall be included as a required 
partner for purposes of this title in a State un-
less the Governor of the State notifies the Sec-
retary and the Secretary of Health and Human 
Services in writing of a determination by the 
Governor not to include such programs as re-
quired partners for purposes of this title in the 
State.’’. 
(2) 
ADDITIONAL
PARTNERS.—Section 
121(b)(2)(B) (29 U.S.C. 2841(b)(2)(B)) is amended—
(A) by striking clause (i) and redesignating 
clauses (ii) through (v) as clauses (i) through 
(iv) respectively; 
(B) in clause (iii) (as so redesignated) by 
striking ‘‘and’’ at the end; 
(C) in clause (iv) (as so redesignated) by 
striking the period and inserting a semicolon; 
and 
(D) by adding at the end the following new 
clauses: 
‘‘(v) employment and training pro-
grams administered by the Social Security 
Administration, including the Ticket to 
Work program (established by Public Law 
106–170); 
‘‘(vi) employment and training pro-
grams carried out by the Small Business 
Administration; 
‘‘(vii) programs under part D of title 
IV of the Social Security Act (42 U.S.C. 
451 et seq.) (relating to child support en-
forcement); 
‘‘(viii) employment, training, and lit-
eracy services carried out by public librar-
ies; and
‘‘(ix) programs carried out in the local 
area for individuals with disabilities, in-
cluding programs carried out by State 
agencies relating to mental health, mental 
retardation, and developmental disabilities, 
State Medicaid agencies, State Independent 
Living Councils, and Independent Living 
Centers.’’. 
(b) PROVISION OF SERVICES.—Subtitle B of title I is 
amended—
(1) in section 121(d)(2), by striking ‘‘section 
134(c)’’ and inserting ‘‘subsection (e)’’; 
(2) by striking subsection (e) of section 121; 
(3) by moving subsection (c) of section 134 from 
section 134, redesignating such subsection as sub-
section (e), and inserting such subsection (as so redes-
ignated) after subsection (d) of section 121; and 
(4) by amending subsection (e) of section 121 (as 
moved and redesignated by paragraph (2))—
(A) in paragraph (1)(A), by striking ‘‘sub-
section (d)(2)’’ and inserting ‘‘section 134(c)(2)’’; 
(B) in paragraph (1)(B)—
(i) by striking ‘‘subsection (d)’’ and in-
serting ‘‘section 134(c)’’; and
(ii) by striking ‘‘subsection (d)(4)(G)’’ 
and inserting ‘‘section 134(c)(4)(G)’’; 
(C) in paragraph (1)(C), by striking ‘‘sub-
section (e)’’ and inserting ‘‘section 134(d)’’; 
(D) in paragraph (1)(D), by striking ‘‘sec-
tion 121(b)’’ and inserting ‘‘subsection (b)’’; and 
(E) by amending paragraph (1)(E) to read 
as follows: 
‘‘(E) shall provide access to the information 
described in section 15(e) of the Wagner-Peyser 
Act (29 U.S.C. 49l-2(e)).’’. 
(c) CERTIFICATION AND FUNDING OF ONE-STOP CEN-
TERS.—Section 121 (as amended by subsection (b)) is fur-
ther amended by adding at the end the following new sub-
sections: 
‘‘(g) CERTIFICATION OF ONE-STOP CENTERS.—
‘‘(1) IN GENERAL.—The State board shall estab-
lish procedures and criteria for periodically certifying 
one-stop centers for the purpose of awarding the one-
stop infrastructure funding described in subsection 
(h). 
‘‘(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, and how the 
centers ensure that such providers meet the employ-
ment needs of local employers and participants. 
‘‘(3) EFFECT OF CERTIFICATION.—One-stop cen-
ters certified under this subsection shall be eligible 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)(1)(B) and participating addi-
tional partner programs described in (b)(2)(B) 
for a fiscal year shall be provided to the Gov-
ernor by such programs to carry out this sub-
section. 
‘‘(B) DETERMINATION OF GOVERNOR.—Sub-
ject to subparagraph (C), the Governor, in con-
sultation with the State board, shall determine 
the portion of funds to be provided under sub-
paragraph (A) by each one-stop partner and in
making such determination shall consider the 
proportionate use of the one-stop centers by each 
partner, the costs of administration for purposes 
not related to one-stop centers for each partner, 
and other relevant factors described in para-
graph (3). 
‘‘(C) LIMITATIONS.—
‘‘(i) PROVISION FROM ADMINISTRATIVE 
FUNDS.—The funds provided under this 
paragraph by each one-stop partner shall be 
provided only from funds available for the 
costs of administration under the program 
administered by such partner, and shall be 
subject to the limitations with respect to the 
portion of funds under such programs that 
may be used for administration. 
‘‘(ii) FEDERAL DIRECT SPENDING PRO-
GRAMS.—Programs that are Federal direct 
spending under section 250(c)(8) of the Bal-
anced Budget and Emergency Deficit Con-
trol Act of 1985 (2 U.S.C. 900(c)(8)) shall 
not, for purposes of this paragraph, be re-
quired to provide an amount in excess of 
the amount determined to be equivalent to
the proportionate use of the one-stop centers 
by such programs in the State. 
‘‘(iii) NATIVE AMERICAN PROGRAMS.—
Native 
American 
programs 
established 
under section 166 shall not be subject to the 
provisions of this subsection. The method for 
determining the appropriate portion of 
funds to be provided by such Native Amer-
ican programs to pay for the costs of infra-
structure of a one-stop center certified under 
subsection (g) shall be determined as part of 
the development of the memorandum of un-
derstanding under subsection (c) for the 
one-stop center and shall be stated in the 
memorandum. 
‘‘(2) ALLOCATION
BY
GOVERNOR.—From the 
funds provided under paragraph (1), the Governor 
shall allocate funds to local areas in accordance with 
the formula established under paragraph (3) for the 
purposes of assisting in paying the costs of the infra-
structure of One-Stop centers certified under sub-
section (g). 
‘‘(3) ALLOCATION FORMULA.—The State board 
shall develop a formula to be used by the Governor to 
allocate the funds described in paragraph (1). The
formula shall include such factors as the State board 
determines are appropriate, which may include fac-
tors 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 purposes 
of this subsection, the term ‘costs of infrastructure’ 
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 (including adaptive 
technology for individuals with disabilities), strategic 
planning activities for the center, and common out-
reach activities. 
‘‘(i) OTHER FUNDS.—
‘‘(1) IN GENERAL.—In addition to the funds pro-
vided to carry out subsection (h), a portion of funds 
made available under Federal law authorizing the 
one-stop partner programs described in subsection 
(b)(1)(B) and participating partner programs de-
scribed in subsection (b)(2)(B), or the noncash re-
sources available under such programs 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 subsection (h), to the extent not
inconsistent with the Federal law involved includ-
ing—
‘‘(A) infrastructure costs that are in excess 
of the funds provided under subsection (h); 
‘‘(B) common costs that are in addition to 
the costs of infrastructure; and 
‘‘(C) the costs of the provision of core serv-
ices applicable to each program. 
‘‘(2) 
DETERMINATION
AND
GUIDANCE.—The 
method for determining the appropriate portion of 
funds and noncash resources to be provided by each 
program under paragraph (1) shall be determined as 
part of the memorandum of understanding under sub-
section (c). The State board shall provide guidance to 
facilitate the determination of appropriate allocation 
of the funds and noncash resources in local areas.’’. 
SEC. 109. ELIGIBLE PROVIDERS OF TRAINING SERVICES. 
Section 122 (29 U.S.C. 2842) is amended to read as 
follows: 
‘‘SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF 
TRAINING SERVICES. 
‘‘(a) IN GENERAL.—The Governor shall establish cri-
teria and procedures regarding the eligibility of providers 
of training services described in section 134(c)(4) to receive
funds provided under section 133(b) for the provision of 
such training services. 
‘‘(b) CRITERIA.—
‘‘(1) IN GENERAL.—The criteria established pur-
suant to subsection (a) shall take into account the 
performance of providers of training services with re-
spect to the indicators described in section 136 or 
other appropriate indicators (taking into consider-
ation the characteristics of the population served and 
relevant economic conditions), and such other factors 
as the Governor determines are appropriate to ensure 
the quality of services, the accountability of providers, 
how the centers ensure that such providers meet the 
needs of local employers and participants, whether 
providers of training allow participants to attain a 
certification, certificate, or mastery, 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 pur-
poses of carrying out subsection (d). The criteria shall 
also provide for periodic review and renewal of eligi-
bility 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 criteria 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. 
‘‘(2) LIMITATION.—In carrying out the require-
ments of this subsection, no personally identifiable in-
formation regarding a student, including Social Secu-
rity number, student identification number, or other 
identifier, may be disclosed without the prior written 
consent of the parent or eligible student in compliance 
with section 444 of the General Education Provisions 
Act (20 U.S.C. 1232g). 
‘‘(c) PROCEDURES.—The procedures established under 
subsection (a) shall identify the application process for a 
provider of training services to become eligible to receive 
funds under section 133(b) for the provision of training 
services, and identify the respective roles of the State and 
local areas in receiving and reviewing applications and in 
making determinations of eligibility based on the criteria 
established under this section. The procedures shall also es-
tablish a process for a provider of training services to ap-
peal a denial or termination of eligibility under this section 
that includes an opportunity for a hearing and prescribes 
appropriate time limits to ensure prompt resolution of the 
appeal.
‘‘(d) INFORMATION
TO
ASSIST
PARTICIPANTS
IN 
CHOOSING PROVIDERS.—
‘‘(1) IN GENERAL.—In order to facilitate and as-
sist participants under chapter 5 in choosing pro-
viders of training services, the Governor shall ensure 
that an appropriate list or lists of providers deter-
mined eligible under this section in the State, accom-
panied by such information as the Governor deter-
mines 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 de-
livery system in the State. 
‘‘(2) SPECIAL RULE.—An entity that carries out 
programs under the Act of August 16, 1937 (com-
monly known as the ‘National Apprenticeship Act’, 
50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.) shall 
be included on the list of eligible providers described 
in paragraph (1) for so long as such entity remains 
certified by the Department of Labor. 
‘‘(e) AGREEMENTS WITH OTHER STATES.—States 
may enter into agreements, on a reciprocal basis, to permit 
eligible providers of training services to accept individual 
training 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 rec-
ommendations of local boards and providers of training 
services within the State. 
‘‘(g) OPPORTUNITY TO SUBMIT COMMENTS.—During 
the development of the criteria, procedures, and information 
required under this section, the Governor shall provide an 
opportunity for interested members of the public, including 
representatives of business and labor organizations, to sub-
mit comments regarding such criteria, procedures, and in-
formation. 
‘‘(h) ON-THE-JOB TRAINING OR CUSTOMIZED TRAIN-
ING EXCEPTION.—
‘‘(1) IN GENERAL.—Providers of on-the-job train-
ing or customized training shall not be subject to the 
requirements of subsections (a) through (g). 
‘‘(2) COLLECTION AND DISSEMINATION OF INFOR-
MATION.—A one-stop operator in a local area shall 
collect such performance information from on-the-job 
training and customized training providers as the 
Governor may require, determine whether the pro-
viders meet such performance criteria as the Governor 
may require, and disseminate information identifying 
providers that meet the criteria as eligible providers, 
and the performance information, through the one-
stop delivery system. Providers determined to meet the
criteria shall be considered to be identified as eligible 
providers of training services.’’. 
SEC. 110. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 
(a) ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.—
Section 123 (29 U.S.C. 2843) is amended to read as follows: 
‘‘SEC. 123. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 
‘‘(a) IN GENERAL.—From the funds allocated under 
section 128(b) to a local area, the local board for such area 
shall award grants or contracts on a competitive basis to 
providers of youth activities identified based on the criteria 
in the State plan and shall conduct oversight with respect 
to such providers. 
‘‘(b) EXCEPTIONS.—A local board may award grants 
or contracts on a sole-source basis if such board determines 
there are an insufficient number of eligible providers of 
training services in the local area involved (such as rural 
areas) for grants to be awarded on a competitive basis 
under subsection (a).’’. 
(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b) is amended by amending the item related to 
section 123 to read as follows:
‘‘Sec. 123. Eligible providers of youth activities.’’.
SEC. 111. YOUTH ACTIVITIES. 
(a) STATE ALLOTMENTS.—
(1) IN
GENERAL.—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.—
‘‘(i) RESERVATION OF FUNDS.—Of the 
amount appropriated under section 137(a) 
for each fiscal year, the Secretary shall re-
serve 25 percent to provide youth challenge 
grants under section 169. 
‘‘(ii) 
LIMITATION.—Notwithstanding 
clause (i), if the amount appropriated 
under section 137(a) for a fiscal year ex-
ceeds $1,000,000,000, the Secretary shall re-
serve $250,000,000 to provide youth chal-
lenge grants under section 169. 
‘‘(B) OUTLYING AREAS AND NATIVE AMERI-
CANS.—
‘‘(i) IN GENERAL.—After determining 
the amount to be reserved under subpara-
graph (A), of the remainder of the amount 
appropriated under section 137(a) for each 
fiscal year the Secretary shall—
‘‘(I) reserve not more than 1⁄4 of 
one percent of such amount to provide 
assistance to the outlying areas to 
carry out youth activities and state-
wide workforce investment activities; 
and 
‘‘(II) reserve not more than 1 and 
1⁄2 percent of such amount to provide 
youth activities under section 166 (re-
lating to Native Americans). 
‘‘(ii) RESTRICTION.—The Republic of 
Palau shall cease to be eligible to receive 
funding under this subparagraph upon en-
tering into an agreement for extension of 
United States educational assistance under 
the Compact of Free Association (approved 
by the Compact of Free Association Amend-
ments Act of 2003 (Public Law 108–188)) 
after the date of enactment of the Job 
Training Improvement Act of 2005. 
‘‘(C) STATES.—
‘‘(i) IN GENERAL.—Of the remainder of 
the amount appropriated under section 
137(a) for a fiscal year that is available 
after determining the amounts to be re-
served under subparagraphs (A) and (B), 
the Secretary shall allot—
‘‘(I) the amount of the remainder 
that is less than or equal to the total