†
148
HR 27 EAS
enhancing employment. The one-stop part-
ners shall coordinate the appropriate pro-
grams and resources of the partners with
the activities and resources provided under
this subparagraph.
‘‘(ii) ACTIVITIES.—The activities de-
scribed in clause (i) may include the provi-
sion of activities described in this section
through the one-stop delivery system in a
manner that enhances the opportunities of
such workers to participate in the activities,
such as the provision of activities described
in this section during nontraditional hours
and the provision of onsite child care while
such activities are being provided.’’; and
(B) by adding at the end the following:
‘‘(4) 
INCUMBENT
WORKER
TRAINING
PRO-
GRAMS.—
‘‘(A) IN GENERAL.—The local board may
use up to 10 percent of the funds allocated to the
local area involved under section 133(b) to pay
for the Federal share of the cost of providing
training through an incumbent worker training
program carried out in accordance with this
paragraph. The Governor or State board may
†
149
HR 27 EAS
make recommendations to the local board regard-
ing incumbent worker training with statewide
impact.
‘‘(B) TRAINING ACTIVITIES.—The training
program for incumbent workers carried out
under this paragraph shall be carried out by the
local board in conjunction with the employers or
groups of employers of such workers for the pur-
pose of assisting such workers in obtaining the
skills necessary to retain employment or avert
layoffs.
‘‘(C) EMPLOYER SHARE REQUIRED.—
‘‘(i) IN GENERAL.—Employers partici-
pating in the program carried out under
this paragraph shall be required to pay the
non-Federal share of the costs of providing
the training to incumbent workers of the
employers. The local board shall establish
the non-Federal share of such costs, which
may include in-kind contributions. The
non-Federal share shall not be less than—
‘‘(I) 10 percent of the costs, for
employers with 50 or fewer employees;
†
150
HR 27 EAS
‘‘(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 employees.
‘‘(ii) 
CALCULATION
OF
EMPLOYER
SHARE.—The non-Federal share paid by
such an employer may include the amount
of the wages paid by the employer to a
worker while the worker is attending a
training program under this paragraph.’’.
SEC. 122. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) STATE PERFORMANCE MEASURES.—
(1) INDICATORS
OF
PERFORMANCE.—Section
136(b)(2)(A) (29 U.S.C. 2871(b)(2)(A)) is amended—
(A) in clause (i)—
(i) in the matter preceding subclause
(I), by striking ‘‘and (for participants who
are eligible youth age 19 through 21) for
youth activities authorized under section
129’’;
(ii) by striking subclause (III) and in-
serting the following:
‘‘(III) increases in earnings from
unsubsidized employment; and’’; and
†
151
HR 27 EAS
(iii) in subclause (IV), by striking ‘‘,
or by participants’’ and all that follows
through ‘‘unsubsidized employment’’; and
(B) by striking clause (ii) and inserting the
following:
‘‘(ii) CORE INDICATORS FOR ELIGIBLE
YOUTH.—The core indicators of performance
for youth activities authorized under section
129 shall consist of—
‘‘(I) entry into employment, edu-
cation or advanced training, or mili-
tary service;
‘‘(II) school retention, and attain-
ment of secondary school diplomas or
their recognized equivalents and of
postsecondary certificates; and
‘‘(III) 
literacy 
or 
numeracy
gains.’’.
(2) 
ADDITIONAL
INDICATORS.—Section
136(b)(2)(C) (29 U.S.C. 2871(b)(2)(C)) is amended to
read as follows:
‘‘(C) ADDITIONAL
INDICATORS.—A State
may identify in the State plan additional indi-
cators for workforce investment activities under
this subtitle, including indicators identified in
†
152
HR 27 EAS
collaboration with State business and industry
associations, with employee representatives where
applicable, and with local boards, to measure the
performance of the workforce investment system
in serving the workforce needs of business and
industry in the State.’’.
(3) 
LEVELS
OF
PERFORMANCE.—Section
136(b)(3)(A) (29 U.S.C. 2871(b)(3)(A)) is amended—
(A) 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 ‘‘described in clauses
(i) and (ii) of paragraph (2)(A) and the
customer satisfaction indicator of perform-
ance, for the first 2’’; and
(iii) by inserting at the end the fol-
lowing: ‘‘Agreements on levels of perform-
ance for each of the core indicators of per-
formance for the third and fourth program
years covered by the State plan shall be
reached prior to the beginning of the third
program year covered by the State plan,
†
153
HR 27 EAS
and incorporated as a modification to the
State plan.’’;
(B) in clause (iv)—
(i) in the matter preceding subclause
(I), by striking ‘‘or (v)’’;
(ii) in subclause (II)—
(I) by striking ‘‘taking into ac-
count’’ and inserting ‘‘and shall ensure
that the levels involved are adjusted,
using objective statistical methods,
based on’’;
(II) by inserting ‘‘(such as dif-
ferences in unemployment rates and
job losses or gains in particular indus-
tries)’’ after ‘‘economic conditions’’;
(III) by inserting ‘‘(such as indi-
cators of poor work history, lack of
work experience, lack of educational or
occupational skills attainment, disloca-
tion from high-wage and benefit em-
ployment, low levels of literacy or
English proficiency, disability status,
homelessness, ex-offender status, and
welfare dependency)’’ after ‘‘program’’;
and
†
154
HR 27 EAS
(IV) by striking ‘‘and’’ at the end;
(iii) in subclause (III), by striking the
period and inserting ‘‘; and’’; and
(iv) by adding at the end the following:
‘‘(IV) the extent to which the levels
involved will assist the State in meet-
ing the national goals described in
clause (v).’’;
(C) by striking clause (v) and inserting the
following:
‘‘(v) ESTABLISHMENT
OF
NATIONAL
GOALS.—In order to promote enhanced per-
formance outcomes on the performance
measures and to facilitate the process of
reaching agreements with the States under
clause (iii) and to measure systemwide per-
formance for the one-stop delivery systems
of the States, the Secretary shall establish
long-term national goals for the adjusted
levels of performance for that systemwide
performance to be achieved by the programs
assisted under chapters 4 and 5 on the core
indicators of performance described in sub-
paragraphs (A) and (B) of subsection
(b)(2). Such goals shall be established in ac-
†
155
HR 27 EAS
cordance with the Government Performance
and Results Act of 1993 in consultation
with the States and other appropriate par-
ties.’’; and
(D) in clause (vi)—
(i) by striking ‘‘or (v)’’; and
(ii) by striking ‘‘with the representa-
tives described in subsection (i)’’ and insert-
ing ‘‘with the States and other interested
parties’’.
(b) 
LOCAL
PERFORMANCE
MEASURES.—Section
136(c)(3) (29 U.S.C. 2871(c)(3)) is amended—
(1) by striking ‘‘shall take into account’’ and in-
serting ‘‘shall ensure that the levels involved are ad-
justed, using objective statistical methods, based on’’;
(2) by inserting ‘‘characteristics (such as unem-
ployment rates and job losses or gains in particular
industries)’’ after ‘‘economic’’; and
(3) by inserting ‘‘characteristics (such as indica-
tors of poor work history, lack of work experience,
lack of educational and occupational skills attain-
ment, dislocation from high-wage and benefit employ-
ment, low levels of literacy or English proficiency,
disability status, homelessness, ex-offender status, and
welfare dependency)’’ after ‘‘demographic’’.
†
156
HR 27 EAS
(c) REPORT.—Section 136(d) (29 U.S.C. 2871(d)) is
amended—
(1) in paragraph (1), by adding at the end the
following: ‘‘In the case of a State or local area that
chooses to expend funds for activities under subsection
(a)(3)(A)(i) or (e)(1)(A)(xi), respectively, of section
134, the report also shall include the amount of such
funds so expended and the percentage that such funds
are of the funds available for activities under section
134.’’;
(2) in paragraph (2)—
(A) in subparagraph (E)—
(i) by striking ‘‘(excluding partici-
pants who received only self-service and in-
formational activities)’’; and
(ii) by striking ‘‘and’’ after the semi-
colon;
(B) in subparagraph (F)—
(i) by inserting ‘‘noncustodial parents
with child support obligations, homeless in-
dividuals,’’ after ‘‘displaced homemakers,’’;
and
(ii) by striking the period and insert-
ing a semicolon; and
(C) by adding at the end the following:
†
157
HR 27 EAS
‘‘(G) the number of participants who have
received services, other than followup services,
authorized under this title;
‘‘(H) the number of participants who have
received services, other than followup services,
authorized under this title, in the form of core
services described in section 134(d)(2), intensive
services described in section 134(d)(3), and
training services described in section 134(d)(4),
respectively;
‘‘(I) the number of participants who have
received followup services authorized under this
title;
‘‘(J) the cost per participant for services au-
thorized under this title; and
‘‘(K) the amount of adult and dislocated
worker funds spent on—
‘‘(i) core, intensive, and training serv-
ices, respectively; and
‘‘(ii) services provided under subsection
(a)(3)(A)(i) or (e)(1)(A)(xi) of section 134,
if applicable.’’; and
(3) by adding at the end the following:
‘‘(4) DATA VALIDATION.—In preparing the re-
ports described in this subsection, the States shall es-
†
158
HR 27 EAS
tablish procedures, consistent with guidelines issued
by the Secretary, to ensure that the information con-
tained in the reports is valid and reliable.’’.
(d) EVALUATION
OF
STATE
PROGRAMS.—Section
136(e)(3) (29 U.S.C. 2871(e)(3)) is amended by inserting
‘‘, including information on promoting self-sufficiency and
comparable pay between men and women’’ after ‘‘employ-
ers’’.
(e) SANCTIONS FOR STATE.—Section 136(g)(1)(B) (29
U.S.C. 2871(g)(1)(B)) is amended by striking ‘‘If such fail-
ure continues for a second consecutive year’’ and inserting
‘‘If a State performs at less than 80 percent of the adjusted
level of performance for core indicators of performance de-
scribed in subsection (b)(2)(A) for 2 consecutive years’’.
(f) 
SANCTIONS
FOR
LOCAL
AREA.—Section
136(h)(2)(A) (29 U.S.C. 2871(h)(2)(A)) is amended—
(1) in the matter preceding clause (i), by strik-
ing ‘‘If such failure continues for a second consecutive
year’’ and inserting ‘‘If a local area performs at less
than 80 percent of the adjusted level of performance
for core indicators of performance described in sub-
section (b)(2)(A) for 2 consecutive years’’;
(2) in clause (ii), by striking ‘‘or’’ after the semi-
colon;
†
159
HR 27 EAS
(3) by redesignating clause (iii) as clause (iv);
and
(4) by inserting after clause (ii) the following:
‘‘(iii) redesignate the local area in ac-
cordance with section 116(b)(2); or’’.
(g) INCENTIVE GRANTS.—Section 136(i) (29 U.S.C.
2871(i)) is amended to read as follows:
‘‘(i) INCENTIVE GRANTS FOR LOCAL AREAS.—
‘‘(1) IN GENERAL.—From funds reserved under
sections 128(a) and 133(a)(1), the Governor involved
shall award incentive grants to local areas for per-
formance described in paragraph (2).
‘‘(2) BASIS.—The Governor shall award the
grants on the basis that the local areas—
‘‘(A) have exceeded the performance meas-
ures established under subsection (c)(2) relating
to 
indicators 
described 
in 
subsection
(b)(3)(A)(iii); or
‘‘(B) have—
‘‘(i) met the performance measures es-
tablished under subsection (c)(2) relating to
indicators 
described 
in 
subsection
(b)(3)(A)(iii); and
‘‘(ii) demonstrated—
†
160
HR 27 EAS
‘‘(I) exemplary coordination of
one-stop partner programs described in
section 121 with statewide economic
development or business needs;
‘‘(II) exemplary performance in
the one-stop partner programs in the
State in serving hard-to-serve popu-
lations; or
‘‘(III) effective—
‘‘(aa) coordination of mul-
tiple systems for the one-stop
partner programs into a com-
prehensive workforce investment
system, including coordination of
employment services under the
Wagner-Peyser Act (29 U.S.C. 49
et seq.) and core services under
section 134(d)(2);
‘‘(bb) expansion of access to
training 
through 
the 
one-stop
partner programs, including ex-
pansion of access through in-
creased leveraging of resources
other than those provided through
programs under this title;
†
161
HR 27 EAS
‘‘(cc) implementation of co-
ordination activities relating to
the one-stop partner programs,
through agreements with relevant
regional or local agencies and of-
fices, including those responsible
for programs under the Adult
Education and Family Literacy
Act (20 U.S.C. 9201 et seq.) and
the Rehabilitation Act of 1973 (29
U.S.C. 701 et seq.);
‘‘(dd) regional coordination
relating to the one-stop partner
programs, with other local boards
or local areas;
‘‘(ee) alignment of manage-
ment information systems to inte-
grate 
participant 
information
across the one-stop partner pro-
grams; or
‘‘(ff) integration of perform-
ance information systems and
common measures for account-
ability across the one-stop partner
programs.
†
162
HR 27 EAS
‘‘(3) USE OF FUNDS.—The funds awarded to a
local area under this subsection may be used to carry
out activities authorized for local areas in programs
carried out under this title, the Adult Education and
Family Literacy Act, and the Rehabilitation Act of
1973 (referred to in this subsection as ‘workforce and
education programs’), and such innovative projects or
programs that increase coordination and enhance
service to participants in such programs, particularly
hard-to-serve populations, as may be approved by the
Governor, including—
‘‘(A) activities that support business needs,
especially for incumbent workers and enhancing
opportunities for retention and advancement;
‘‘(B) activities that support linkages be-
tween the workforce and education programs,
and secondary, postsecondary, or career and
technical education programs, including activi-
ties under the Carl D. Perkins Vocational and
Technical Education Act of 1998 (20 U.S.C.
2301 et seq.), the Adult Education and Family
Literacy Act (20 U.S.C. 9201 et seq.), and the
Rehabilitation Act of 1973 (29 U.S.C. 701 et
seq.);
†
163
HR 27 EAS
‘‘(C) activities that support regional eco-
nomic development plans that support high-
wage, high-skill, or high-demand occupations
leading to self-sufficiency;
‘‘(D) activities that coordinate the workforce
and education programs with other Federal and
State programs related to the workforce and edu-
cation programs;
‘‘(E) activities that support the development
of an integrated performance information system
that includes common measures for one-stop
partner programs described in section 121;
‘‘(F) activities that align management in-
formation systems with integrated performance
information across the one-stop partner pro-
grams;
‘‘(G) activities that support activities to im-
prove performance in workforce and education
programs and program coordination of workforce
and education programs; or
‘‘(H) activities that leverage additional
training resources, other than those provided
through workforce and education programs, for
adults and youth.
†
164
HR 27 EAS
‘‘(4) TECHNICAL
ASSISTANCE.—The Governor
shall reserve 4 percent of the funds available for
grants under this subsection to provide technical as-
sistance to local areas—
‘‘(A) to replicate best practices for workforce
and education programs;
‘‘(B) to develop integrated performance in-
formation systems for the one-stop partner pro-
grams;
‘‘(C) to strengthen coordination between
workforce and education programs, and other
education programs; or
‘‘(D) to strengthen regional economic devel-
opment.’’.
(h) USE OF CORE MEASURES IN OTHER DEPARTMENT
OF LABOR PROGRAMS.—Section 136 (29 U.S.C. 2871) is
amended by adding at the end the following:
‘‘(j) USE OF CORE INDICATORS FOR OTHER PRO-
GRAMS.—In addition to the programs carried out under
chapters 4 and 5, and consistent with the requirements of
the applicable authorizing laws, the Secretary shall use the
indicators of performance described in subparagraphs (A)
and (B) of subsection (b)(2) to assess the effectiveness of the
programs described in clauses (i), (ii), and (vi) of section
121(b)(1)(B) that are carried out by the Secretary.’’.