142
‘‘(C) contain any other information that 
the Secretary determines to be appropriate. 
‘‘(g) EVALUATIONS.—The Secretary shall establish 
by rule and implement a process to evaluate, in accordance 
with section 513, the performance of projects carried out 
and services provided under this title. The Secretary shall 
report to Congress, and make available to the public, the 
results of each such evaluation and shall use such evalua-
tion to improve services delivered by, or the operation of, 
projects carried out under this title. 
‘‘SEC. 504. PARTICIPANTS NOT FEDERAL EMPLOYEES. 
‘‘(a) INAPPLICABILITY
OF
CERTAIN
PROVISIONS 
COVERING FEDERAL EMPLOYEES.—Eligible individuals 
who are participants in any project funded under this title 
shall not be considered to be Federal employees as a result 
of such participation and shall not be subject to part III 
of title 5, United States Code. 
‘‘(b) WORKERS’ COMPENSATION.—No grant or 
subgrant shall be made and no contract or subcontract 
shall be entered into under this title with an entity who 
is, or whose employees are, under State law, exempted 
from operation of the State workers’ compensation law, 
generally applicable to employees, unless the entity shall 
undertake to provide either through insurance by a recog-
nized carrier or by self-insurance, as authorized by State
143
law, that the persons employed under the grant, subgrant, 
contract, or subcontract shall enjoy workers’ compensation 
coverage equal to that provided by law for covered employ-
ment. 
‘‘SEC. 505. INTERAGENCY COOPERATION. 
‘‘(a) CONSULTATION WITH
THE ASSISTANT SEC-
RETARY.—The Secretary shall consult with and obtain the 
written views of the Assistant Secretary before issuing 
rules and before establishing general policy in the adminis-
tration of this title. 
‘‘(b) CONSULTATION WITH HEADS OF OTHER AGEN-
CIES.—The Secretary shall consult and cooperate with the 
Secretary of Health and Human Services (acting through 
officers including the Director of the Office of Community 
Services), and the heads of other Federal agencies that 
carry out programs related to the program carried out 
under this title, in order to achieve optimal coordination 
of the program carried out under this title with such re-
lated programs. Each head of a Federal agency shall co-
operate with the Secretary in disseminating information 
relating to the availability of assistance under this title 
and in promoting the identification and interests of indi-
viduals eligible for employment in projects assisted under 
this title. 
‘‘(c) COORDINATION.—
144
‘‘(1) IN GENERAL.—The Secretary shall pro-
mote and coordinate efforts to carry out projects 
under this title jointly with programs, projects, or 
activities carried out under other Acts, especially ac-
tivities provided under the Workforce Investment 
Act of 1998 (29 U.S.C. 2801 et seq.), including ac-
tivities provided through one-stop delivery systems 
established under section 134(c)) of such Act (29 
U.S.C. 2864(c)), that provide training and employ-
ment opportunities to eligible individuals. 
‘‘(2) COORDINATION
WITH
CERTAIN
ACTIVI-
TIES.—The Secretary shall consult with the Sec-
retary of Education to promote and coordinate ef-
forts to carry out projects under this title jointly 
with activities in which eligible individuals may par-
ticipate that are carried out under the Carl D. Per-
kins Career and Technical Education Act of 2006 
(20 U.S.C. 2301 et seq.). 
‘‘SEC. 506. DISTRIBUTION OF ASSISTANCE. 
‘‘(a) RESERVATIONS.—
‘‘(1) RESERVATION
FOR
PILOT
DEMONSTRA-
TION AND EVALUATION PROJECTS.—Of the funds 
appropriated to carry out this title for each fiscal 
year, the Secretary may first reserve not more than 
1.5 percent to carry out demonstration projects,
145
pilot projects, and evaluation projects under section 
502(e). 
‘‘(2) RESERVATION FOR TERRITORIES.—Of the 
funds appropriated to carry out this title for each 
fiscal year, the Secretary shall reserve 0.75 percent, 
of which—
‘‘(A) Guam, American Samoa, and the 
United States Virgin Islands shall each receive 
30 percent of the funds so reserved; and 
‘‘(B) the Commonwealth of the Northern 
Mariana Islands shall receive 10 percent of the 
funds so reserved. 
‘‘(3) RESERVATION
FOR
ORGANIZATIONS.—Of 
the funds appropriated to carry out this title for 
each fiscal year, the Secretary shall reserve such 
amount as may be necessary to make national 
grants to public or nonprofit national Indian aging 
organizations with the ability to provide community 
service employment and other authorized activities 
for eligible individuals who are Indians and to na-
tional public or nonprofit Pacific Island and Asian 
American aging organizations with the ability to 
provide community service employment and other 
authorized activities for eligible individuals who are 
Pacific Island and Asian Americans.
146
‘‘(b) STATE ALLOTMENTS.—The allotment for each 
State shall be the sum of the amounts allotted for national 
grants in such State under subsection (d) and for the 
grant to such State under subsection (e). 
‘‘(c) DIVISION BETWEEN NATIONAL GRANTS AND 
GRANTS TO STATES.—The funds appropriated to carry 
out this title for any fiscal year that remain after amounts 
are reserved under paragraphs (1), (2), and (3) of sub-
section (a) shall be divided by the Secretary between na-
tional grants and grants to States as follows: 
‘‘(1) RESERVATION
OF
FUNDS
FOR
FISCAL 
YEAR 2000 LEVEL OF ACTIVITIES.—
‘‘(A) IN
GENERAL.—The Secretary shall 
reserve the amount of funds necessary to main-
tain the fiscal year 2000 level of activities sup-
ported by grantees that operate under this title 
under national grants from the Secretary, and 
the fiscal year 2000 level of activities supported 
by State grantees under this title, in proportion 
to their respective fiscal year 2000 levels of ac-
tivities. 
‘‘(B) INSUFFICIENT APPROPRIATIONS.—If 
in any fiscal year the funds appropriated to 
carry out this title are insufficient to satisfy the 
requirement specified in subparagraph (A), then
147
the amount described in subparagraph (A) shall 
be reduced proportionally. 
‘‘(2) FUNDING IN EXCESS OF FISCAL YEAR 2000 
LEVEL OF ACTIVITIES.—
‘‘(A) UP TO $35,000,000.—The amount of 
funds remaining (if any) after the application of 
paragraph (1), but not to exceed $35,000,000, 
shall be divided so that 75 percent shall be pro-
vided to State grantees and 25 percent shall be 
provided to grantees that operate under this 
title under national grants from the Secretary. 
‘‘(B) OVER
$35,000,000.—The amount of 
funds remaining (if any) after the application of 
subparagraph (A) shall be divided so that 50 
percent shall be provided to State grantees and 
50 percent shall be provided to grantees that 
operate under this title under national grants 
from the Secretary. 
‘‘(d) ALLOTMENTS FOR NATIONAL GRANTS.—From 
funds available under subsection (c) for national grants, 
the Secretary shall allot for public and nonprofit private 
agency and organization grantees that operate under this 
title under national grants from the Secretary in each 
State, an amount that bears the same ratio to such funds 
as the product of the number of individuals age 55 or older
148
in the State and the allotment percentage of such State 
bears to the sum of the corresponding products for all 
States, except as follows: 
‘‘(1) MINIMUM ALLOTMENT.—No State shall be 
provided an amount under this subsection that is 
less than 1⁄2 of 1 percent of the amount provided 
under subsection (c) for public and nonprofit private 
agency and organization grantees that operate under 
this title under national grants from the Secretary 
in all of the States. 
‘‘(2) HOLD HARMLESS.—If such amount pro-
vided under subsection (c) is—
‘‘(A) equal to or less than the amount nec-
essary to maintain the fiscal year 2000 level of 
activities, allotments for grantees that operate 
under this title under national grants from the 
Secretary in each State shall be proportional to 
the amount necessary to maintain their fiscal 
year 2000 level of activities; or 
‘‘(B) greater than the amount necessary to 
maintain the fiscal year 2000 level of activities, 
no State shall be provided a percentage increase 
above the amount necessary to maintain the fis-
cal year 2000 level of activities for grantees 
that operate under this title under national
149
grants from the Secretary in the State that is 
less than 30 percent of the percentage increase 
above the amount necessary to maintain the fis-
cal year 2000 level of activities for public and 
private nonprofit agency and organization 
grantees that operate under this title under na-
tional grants from the Secretary in all of the 
States. 
‘‘(3) REDUCTION.—Allotments for States not 
affected by paragraphs (1) and (2)(B) shall be re-
duced proportionally to satisfy the conditions in such 
paragraphs. 
‘‘(e) ALLOTMENTS FOR GRANTS TO STATES.—From 
the amount provided for grants to States under subsection 
(c), the Secretary shall allot for the State grantee in each 
State an amount that bears the same ratio to such amount 
as the product of the number of individuals age 55 or older 
in the State and the allotment percentage of such State 
bears to the sum of the corresponding products for all 
States, except as follows: 
‘‘(1) MINIMUM ALLOTMENT.—No State shall be 
provided an amount under this subsection that is 
less than 1⁄2 of 1 percent of the amount provided 
under subsection (c) for State grantees in all of the 
States.
150
‘‘(2) HOLD HARMLESS.—If such amount pro-
vided under subsection (c) is—
‘‘(A) equal to or less than the amount nec-
essary to maintain the fiscal year 2000 level of 
activities, allotments for State grantees in each 
State shall be proportional to the amount nec-
essary to maintain their fiscal year 2000 level 
of activities; or 
‘‘(B) greater than the amount necessary to 
maintain the fiscal year 2000 level of activities, 
no State shall be provided a percentage increase 
above the amount necessary to maintain the fis-
cal year 2000 level of activities for State grant-
ees in the State that is less than 30 percent of 
the percentage increase above the amount nec-
essary to maintain the fiscal year 2000 level of 
activities for State grantees in all of the States. 
‘‘(3) REDUCTION.—Allotments for States not 
affected by paragraphs (1) and (2)(B) shall be re-
duced proportionally to satisfy the conditions in such 
paragraphs. 
‘‘(f) ALLOTMENT PERCENTAGE.—For purposes of 
subsections (d) and (e) and this subsection—
‘‘(1) the allotment percentage of each State 
shall be 100 percent less that percentage that bears
151
the same ratio to 50 percent as the per capita in-
come of such State bears to the per capita income 
of the United States, except that—
‘‘(A) the allotment percentage shall be not 
more than 75 percent and not less than 33 per-
cent; and 
‘‘(B) the allotment percentage for the Dis-
trict of Columbia and the Commonwealth of 
Puerto Rico shall be 75 percent; 
‘‘(2) the number of individuals age 55 or older 
in any State and in all States, and the per capita 
income in any State and in all States, shall be deter-
mined by the Secretary on the basis of the most sat-
isfactory data available to the Secretary; and 
‘‘(3) for the purpose of determining the allot-
ment percentage, the term ‘United States’ means 
the 50 States, and the District of Columbia. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) COST PER AUTHORIZED POSITION.—The 
term ‘cost per authorized position’ means the sum 
of—
‘‘(A) the hourly minimum wage rate speci-
fied in section 6(a)(1) of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 206(a)(1)), multi-
152
plied by the number of hours equal to the prod-
uct of 21 hours and 52 weeks; 
‘‘(B) an amount equal to 11 percent of the 
amount specified under subparagraph (A), for 
the purpose of covering Federal payments for 
fringe benefits; and 
‘‘(C) an amount determined by the Sec-
retary, for the purpose of covering Federal pay-
ments for the remainder of all other program 
and administrative costs. 
‘‘(2) FISCAL
YEAR
2000
LEVEL
OF
ACTIVI-
TIES.—The term ‘fiscal year 2000 level of activities’ 
means—
‘‘(A) with respect to public and nonprofit 
private agency and organization grantees that 
operate under this title under national grants 
from the Secretary, their level of activities for 
fiscal year 2000; and 
‘‘(B) with respect to State grantees, their 
level of activities for fiscal year 2000. 
‘‘(3) GRANTS TO STATES.—The term ‘grants to 
States’ means grants made under this title by the 
Secretary to the States.
153
‘‘(4) LEVEL OF ACTIVITIES.—The term ‘level of 
activities’ means the number of authorized positions 
multiplied by the cost per authorized position. 
‘‘(5) NATIONAL GRANTS.—The term ‘national 
grants’ means grants made under this title by the 
Secretary to public and nonprofit private agency and 
organization grantees that operate under this title. 
‘‘(6) STATE.—The term ‘State’ does not include 
Guam, American Samoa, the Commonwealth of the 
Northern Mariana Islands, and the United States 
Virgin Islands. 
‘‘SEC. 507. EQUITABLE DISTRIBUTION. 
‘‘(a) INTERSTATE ALLOCATION.—In making grants 
under section 502(b) from allotments made under section 
506, the Secretary shall ensure, to the extent feasible, an 
equitable distribution of activities under such grants, in 
the aggregate, among the States, taking into account the 
needs of underserved States. 
‘‘(b) INTRASTATE ALLOCATION.—The amount allo-
cated for projects within each State under section 506 
shall be allocated among areas in the State in an equitable 
manner, taking into consideration the State priorities set 
out in the State plan in effect under section 503(a).
154
‘‘SEC. 508. REPORT. 
‘‘To carry out the Secretary’s responsibilities for re-
porting in section 503(g), the Secretary shall require the 
State agency for each State that receives funds under this 
title to prepare and submit a report at the beginning of 
each fiscal year on such State’s compliance with section 
507(b). Such report shall include the names and geo-
graphic location of all projects assisted under this title and 
carried out in the State and the amount allocated to each 
such project under section 506. 
‘‘SEC. 509. EMPLOYMENT ASSISTANCE AND FEDERAL HOUS-
ING AND FOOD STAMP PROGRAMS. 
‘‘Funds received by eligible individuals from projects 
carried out under the program established under this title 
shall not be considered to be income of such individuals 
for purposes of determining the eligibility of such individ-
uals, or of any other individuals, to participate in any 
housing program for which Federal funds may be available 
or for any income determination under the Food Stamp 
Act of 1977 (7 U.S.C. 2011 et seq.). 
‘‘SEC. 510. ELIGIBILITY FOR WORKFORCE INVESTMENT AC-
TIVITIES. 
‘‘Eligible individuals under this title may be consid-
ered by local workforce investment boards and one-stop 
operators established under title I of the Workforce In-
vestment Act of 1998 (29 U.S.C. 2801 et seq.) to satisfy
155
the requirements for receiving services under such title I 
that are applicable to adults. 
‘‘SEC. 511. COORDINATION WITH THE WORKFORCE INVEST-
MENT ACT OF 1998. 
‘‘(a) PARTNERS.—Grantees under this title shall be 
one-stop partners as described in subparagraphs (A) and 
(B)(vi) of section 121(b)(1) of the Workforce Investment 
Act of 1998 (29 U.S.C. 2841(b)(1)) in the one-stop deliv-
ery system established under section 134(c) of such Act 
(29 U.S.C. 2864(c)) for the appropriate local workforce 
investment areas, and shall carry out the responsibilities 
relating to such partners. 
‘‘(b) COORDINATION.—In local workforce investment 
areas where more than 1 grantee under this title provides 
services, the grantees shall—
‘‘(1) coordinate their activities related to the 
one-stop delivery systems; and 
‘‘(2) be signatories of the memorandum of un-
derstanding established under section 121(c) of the 
Workforce Investment Act of 1998 (29 U.S.C. 
2841(c)). 
‘‘SEC. 512. TREATMENT OF ASSISTANCE. 
‘‘Assistance provided under this title shall not be con-
sidered to be financial assistance described in section
156
245A(h)(1)(A) of the Immigration and Nationality Act (8 
U.S.C. 1255a(h)(1)(A)). 
‘‘SEC. 513. PERFORMANCE. 
‘‘(a) MEASURES AND INDICATORS.—
‘‘(1) ESTABLISHMENT
AND
IMPLEMENTATION 
OF
MEASURES
AND
INDICATORS.—The Secretary 
shall establish and implement, after consultation 
with grantees, subgrantees, and host agencies under 
this title, States, older individuals, area agencies on 
aging, and other organizations serving older individ-
uals, core measures of performance and additional 
indicators of performance for each grantee for 
projects and services carried out under this title. 
The core measures of performance and additional in-
dicators of performance shall be applicable to each 
grantee under this title without regard to whether 
such grantee operates the program directly or 
through subcontracts, subgrants, or agreements with 
other entities. 
‘‘(2) CONTENT.—
‘‘(A) COMPOSITION OF MEASURES AND IN-
DICATORS.—
‘‘(i) MEASURES.—The core measures 
of performance established by the Sec-
retary in accordance with paragraph (1)
157
shall consist of core indicators of perform-
ance specified in subsection (b)(1) and the 
expected levels of performance applicable 
to each core indicator of performance. 
‘‘(ii) ADDITIONAL INDICATORS.—The 
additional indicators of performance estab-
lished by the Secretary in accordance with 
paragraph (1) shall be the additional indi-
cators of performance specified in sub-
section (b)(2). 
‘‘(B) CONTINUOUS
IMPROVEMENT.—The 
measures described in subparagraph (A)(i) shall 
be designed to promote continuous improvement 
in performance. 
‘‘(C) EXPECTED
LEVELS
OF
PERFORM-
ANCE.—The Secretary and each grantee shall 
reach agreement on the expected levels of per-
formance for each program year for each of the 
core indicators of performance specified in sub-
paragraph (A)(i). The agreement shall take into 
account the requirement of subparagraph (B) 
and the factors described in subparagraph (D), 
and other appropriate factors as determined by 
the Secretary, and shall be consistent with the 
requirements of subparagraph (E). Funds may
158
not be awarded under the grant until such 
agreement is reached. At the conclusion of ne-
gotiations concerning the levels with all grant-
ees, the Secretary shall make available for pub-
lic review the final negotiated expected levels of 
performance for each grantee, including any 
comments submitted by the grantee regarding 
the grantee’s satisfaction with the negotiated 
levels. 
‘‘(D) ADJUSTMENT.—The expected levels 
of performance described in subparagraph (C) 
applicable to a grantee shall be adjusted after 
the agreement under subparagraph (C) has 
been reached only with respect to the following 
factors: 
‘‘(i) High rates of unemployment or of 
poverty or participation in the program of 
block grants to States for temporary as-
sistance for needy families established 
under part A of title IV of the Social Secu-
rity Act (42 U.S.C. 601 et seq.), in the 
areas served by a grantee, relative to other 
areas of the State involved or Nation.
159
‘‘(ii) Significant downturns in the 
areas served by the grantee or in the na-
tional economy. 
‘‘(iii) Significant numbers or propor-
tions of participants with 1 or more bar-
riers to employment, including individuals 
described in subsection (a)(3)(B)(ii) or 
(b)(2) of section 518, served by a grantee 
relative to such numbers or proportions for 
grantees serving other areas of the State 
or Nation. 
‘‘(iv) Changes in Federal, State, or 
local minimum wage requirements. 
‘‘(v) Limited economies of scale for 
the provision of community service employ-
ment and other authorized activities in the 
areas served by the grantee. 
‘‘(E) PLACEMENT.—
‘‘(i) LEVEL OF PERFORMANCE.—For 
all grantees, the Secretary shall establish 
an expected level of performance of not 
less than the percentage specified in clause 
(ii) (adjusted in accordance with subpara-
graph (D)) for the entry into unsubsidized
160
employment core indicator of performance 
described in subsection (b)(1)(B). 
‘‘(ii) REQUIRED
PLACEMENT
PER-
CENTAGES.—The minimum percentage for 
the expected level of performance for the 
entry into unsubsidized employment core 
indicator of performance described in sub-
section (b)(1)(B) is—
‘‘(I) 21 percent for fiscal year 
2007; 
‘‘(II) 22 percent for fiscal year 
2008; 
‘‘(III) 23 percent for fiscal year 
2009; 
‘‘(IV) 24 percent for fiscal year 
2010; and 
‘‘(V) 25 percent for fiscal year 
2011. 
‘‘(3) LIMITATION.—An agreement to be evalu-
ated on the core measures of performance and to re-
port information on the additional indicators of per-
formance shall be a requirement for application for, 
and a condition of, all grants authorized by this 
title. 
‘‘(b) INDICATORS OF PERFORMANCE.—
161
‘‘(1) CORE INDICATORS.—The core indicators 
of performance described in subsection (a)(2)(A)(i) 
shall consist of—
‘‘(A) hours (in the aggregate) of commu-
nity service employment; 
‘‘(B) entry into unsubsidized employment; 
‘‘(C) retention in unsubsidized employment 
for 6 months; 
‘‘(D) earnings; and 
‘‘(E) the number of eligible individuals 
served, including the number of participating 
individuals described in subsection (a)(3)(B)(ii) 
or (b)(2) of section 518. 
‘‘(2) ADDITIONAL INDICATORS.—The additional 
indicators of performance described in subsection 
(a)(2)(A)(ii) shall consist of—
‘‘(A) retention in unsubsidized employment 
for 1 year; 
‘‘(B) satisfaction of the participants, em-
ployers, and their host agencies with their expe-
riences and the services provided; 
‘‘(C) any other indicators of performance 
that the Secretary determines to be appropriate 
to evaluate services and performance.
162
‘‘(3) DEFINITIONS OF INDICATORS.—The Sec-
retary, after consultation with national and State 
grantees, representatives of business and labor orga-
nizations, and providers of services, shall, by regula-
tion, issue definitions of the indicators of perform-
ance described in paragraphs (1) and (2). 
‘‘(c) EVALUATION.—The Secretary shall—
‘‘(1) annually evaluate, and publish and make 
available for public review information on, the actual 
performance of each grantee with respect to the lev-
els achieved for each of the core indicators of per-
formance, compared to the expected levels of per-
formance established under subsection (a)(2)(C) (in-
cluding any adjustments to such levels made in ac-
cordance with subsection (a)(2)(D)); and 
‘‘(2) annually publish and make available for 
public review information on the actual performance 
of each grantee with respect to the levels achieved 
for each of the additional indicators of performance. 
‘‘(d) TECHNICAL ASSISTANCE AND CORRECTIVE EF-
FORTS.—
‘‘(1) INITIAL DETERMINATIONS.—
‘‘(A) IN GENERAL.—As soon as practicable 
after July 1, 2007, the Secretary shall deter-
163
mine if a grantee under this title has, for pro-
gram year 2006—
‘‘(i) met the expected levels of per-
formance established under subsection 
(a)(2)(C) (including any adjustments to 
such levels made in accordance with sub-
section (a)(2)(D)) for the core indicators of 
performance described in subparagraphs 
(A), (C), (D), and (E) of subsection (b)(1); 
and 
‘‘(ii) achieved the applicable percent-
age specified in subsection (a)(2)(E)(ii) for 
the core indicator of performance described 
in subsection (b)(1)(B). 
‘‘(B) TECHNICAL
ASSISTANCE.—If the 
Secretary determines that the grantee, for pro-
gram year 2006—
‘‘(i) failed to meet the expected levels 
of performance described in subparagraph 
(A)(i); or 
‘‘(ii) failed to achieve the applicable 
percentage 
described 
in 
subparagraph 
(A)(ii), 
the Secretary shall provide technical assistance 
to assist the grantee to meet the expected levels
164
of performance and achieve the applicable per-
centage. 
‘‘(2) NATIONAL GRANTEES.—
‘‘(A) IN
GENERAL.—Not later than 120 
days after the end of each program year, the 
Secretary shall determine if a national grantee 
awarded a grant under section 502(b) in ac-
cordance with section 514 has met the expected 
levels of performance established under sub-
section (a)(2)(C) (including any adjustments to 
such levels made in accordance with subsection 
(a)(2)(D)) for the core indicators of perform-
ance described in subsection (b)(1). 
‘‘(B) TECHNICAL
ASSISTANCE
AND
COR-
RECTIVE ACTION PLAN.—
‘‘(i) IN
GENERAL.—If the Secretary 
determines that a national grantee fails to 
meet the expected levels of performance de-
scribed in subparagraph (A), the Secretary 
after each year of such failure, shall pro-
vide technical assistance and require such 
grantee to submit a corrective action plan 
not later than 160 days after the end of 
the program year.
165
‘‘(ii) CONTENT.—The plan submitted 
under clause (i) shall detail the steps the 
grantee will take to meet the expected lev-
els of performance in the next program 
year. 
‘‘(iii) RECOMPETITION.—Any grantee 
who has failed to meet the expected levels 
of performance for 4 consecutive years (be-
ginning with program year 2007) shall not 
be allowed to compete in the subsequent 
grant competition under section 514 fol-
lowing the fourth consecutive year of fail-
ure but may compete in the next such 
grant competition after that subsequent 
competition. 
‘‘(3) STATE GRANTEES.—
‘‘(A) IN
GENERAL.—Not later than 120 
days after the end of each program year, the 
Secretary shall determine if a State grantee al-
lotted funds under section 506(e) has met the 
expected levels of performance established 
under subsection (a)(2)(C) (including any ad-
justments to such levels made in accordance 
with subsection (a)(2)(D)) for the core indica-
166
tors of performance described in subsection 
(b)(1). 
‘‘(B) TECHNICAL
ASSISTANCE
AND
COR-
RECTIVE ACTION PLAN.—
‘‘(i) IN
GENERAL.—If the Secretary 
determines that a State fails to meet the 
expected levels of performance described in 
subparagraph (A), the Secretary, after 
each year of such failure, shall provide 
technical assistance and require the State 
to submit a corrective action plan not later 
than 160 days after the end of the pro-
gram year. 
‘‘(ii) CONTENT.—The plan submitted 
under clause (i) shall detail the steps the 
State will take to meet the expected levels 
of performance in the next program year. 
‘‘(iii) COMPETITION.—If the Secretary 
determines that the State fails to meet the 
expected levels of performance described in 
subparagraph (A) for 3 consecutive pro-
gram years (beginning with program year 
2007), the Secretary shall provide for the 
conduct by the State of a competition to 
award the funds allotted to the State
167
under section 506(e) for the first full pro-
gram year following the Secretary’s deter-
mination. 
‘‘(4) SPECIAL RULE FOR ESTABLISHMENT AND 
IMPLEMENTATION.—The Secretary shall establish 
and implement the core measures of performance 
and additional indicators of performance described 
in this section, including all required indicators de-
scribed in subsection (b), not later than July 1, 
2007. 
‘‘(e) IMPACT ON GRANT COMPETITION.—The Sec-
retary may not publish a notice announcing a grant com-
petition under this title, and solicit proposals for grants, 
until the day that is the later of—
‘‘(1) the date on which the Secretary imple-
ments the core measures of performance and addi-
tional indicators of performance described in this 
section; and 
‘‘(2) January 1, 2010. 
‘‘SEC. 514. COMPETITIVE REQUIREMENTS RELATING TO 
GRANT AWARDS. 
‘‘(a) PROGRAM AUTHORIZED.—
‘‘(1) INITIAL
APPROVAL
OF
GRANT
APPLICA-
TIONS.—From the funds available for national 
grants under section 506(d), the Secretary shall