such activities for such prior program year, as com-
pared to the total amount allocated to all eligible 
local areas in the State under subsection (b)(2) for 
such activities for such prior program year.’’; and 
(D) in paragraph (4), by striking ‘‘para-
graph (2)(A) or (3) of’’; and 
(4) by adding at the end the following new sub-
section: 
‘‘(d) LOCAL ADMINISTRATIVE COST LIMIT.—Of the 
amounts allocated to a local area under this section for 
a fiscal year, not more than 10 percent of the amount 
may be used by the local board involved for the adminis-
trative costs of carrying out local workforce investment ac-
tivities in the local area under this chapter.’’. 
SEC. 113. USE OF FUNDS FOR EMPLOYMENT AND TRAINING 
ACTIVITIES. 
Section 134 is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) STATEWIDE EMPLOYMENT AND TRAINING AC-
TIVITIES.— 
‘‘(1) IN GENERAL.— 
‘‘(A) DISTRIBUTION
OF
STATEWIDE
AC-
TIVITIES.—Funds reserved by a Governor for a 
State as described in section 133(a)(1)— 
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‘‘(i) shall be used to carry out the 
statewide employment and training activi-
ties described in paragraph (2); and 
‘‘(ii) may be used to carry out any of 
the statewide employment and training ac-
tivities described in paragraph (3). 
‘‘(B) STATEWIDE RAPID RESPONSE ACTIVI-
TIES.—Funds reserved by a Governor for a 
State as described in section 133(a)(2) shall be 
used to carry out the statewide rapid response 
activities described in paragraph (4). 
‘‘(C) STATEWIDE
GRANTS
FOR
INDIVID-
UALS
WITH
BARRIERS
TO
EMPLOYMENT.— 
Funds reserved by a Governor for a State as 
described in section 133(a)(3) shall be used to 
carry out the Statewide Grants for Individuals 
with Barriers to Employment competition de-
scribed in paragraph (5). 
‘‘(2) REQUIRED STATEWIDE EMPLOYMENT AND 
TRAINING ACTIVITIES.—A State shall use funds re-
served as described in section 133(a)(1) to carry out 
statewide employment and training activities, which 
shall include— 
‘‘(A) disseminating the State list of eligible 
providers of training described in section 
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122(d), information identifying eligible pro-
viders of on-the-job training and customized 
training described in section 122(i), and per-
formance information and program cost infor-
mation described in section 122(b)(2); 
‘‘(B) supporting the provision of work 
ready services described in subsection (c)(2) in 
the one-stop delivery system; 
‘‘(C) implementing strategies and services 
that will be used in the State to assist at-risk 
youth and out-of-school youth in acquiring the 
education and skills, recognized postsecondary 
credentials, and employment experience to suc-
ceed in the labor market; 
‘‘(D) conducting evaluations under section 
136(e) of activities authorized under this chap-
ter in coordination with evaluations carried out 
by the Secretary under section 172; 
‘‘(E) providing technical assistance to local 
areas that fail to meet local performance meas-
ures; 
‘‘(F) operating a fiscal and management 
accountability system under section 136(f); and 
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‘‘(G) carrying out monitoring and over-
sight of activities carried out under this chap-
ter. 
‘‘(3) ALLOWABLE
STATEWIDE
EMPLOYMENT 
AND TRAINING ACTIVITIES.—A State may use funds 
reserved as described in section 133(a)(1) to carry 
out statewide employment and training activities 
which may include— 
‘‘(A) implementing innovative programs 
and strategies designed to meet the needs of all 
employers in the State, including small employ-
ers, which may include incumbent worker train-
ing programs, sectoral and industry cluster 
strategies and partnerships, career ladder pro-
grams, micro-enterprise and entrepreneurial 
training and support programs, utilization of ef-
fective business intermediaries, activities to im-
prove linkages between the one-stop delivery 
system in the State and all employers (includ-
ing small employers) in the State, and other 
business services and strategies that better en-
gage employers in workforce investment activi-
ties and make the workforce investment system 
more relevant to the needs of State and local 
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businesses, consistent with the objectives of this 
title; 
‘‘(B) 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; 
‘‘(C) developing strategies for effectively 
integrating programs and services among one- 
stop partners; 
‘‘(D) carrying out activities to facilitate re-
mote access to services provided through a one- 
stop delivery system, including facilitating ac-
cess through the use of technology; 
‘‘(E) 
incorporating 
pay-for-performance 
contracting strategies as an element in funding 
activities under this section; 
‘‘(F) carrying out the State option under 
subsection (f)(8); and 
‘‘(G) carrying out other activities author-
ized under this section that the State deter-
mines to be necessary to assist local areas in 
carrying out activities described in subsection 
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(c) or (d) through the statewide workforce in-
vestment system. 
‘‘(4) STATEWIDE
RAPID
RESPONSE
ACTIVI-
TIES.—A State shall use funds reserved as described 
in section 133(a)(2) 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 or by an entity designated 
by the State, working in conjunction with the 
local boards and the chief elected officials in the 
local areas. 
‘‘(5) STATEWIDE
GRANTS
FOR
INDIVIDUALS 
WITH BARRIERS TO EMPLOYMENT.— 
‘‘(A) IN GENERAL.—Of the funds reserved 
as described in section 133(a)(3), the Governor 
of a State— 
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