(i) by striking ‘‘subsection (d)’’ and
inserting ‘‘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 informa-
tion described in section 15(e) of the Wagner-
Peyser Act (29 U.S.C. 49l-2(e)).’’.
(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 for the purpose of awarding
the one-stop infrastructure funding described in sub-
section (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 em-
ployment needs of local employers and participants.
‘‘(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)(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.—
Subject to subparagraph (C), the Governor, in
consultation with the State board, shall deter-
mine the portion of funds to be provided under
subparagraph (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 de-
scribed in paragraph (3).
‘‘(C) LIMITATIONS.—
‘‘(i) PROVISION
FROM
ADMINISTRA-
TIVE 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 administra-
tion.
‘‘(ii) FEDERAL
DIRECT
SPENDING
PROGRAMS.—Programs that are Federal
direct spending under section 250(c)(8) of
the Balanced Budget and Emergency Def-
icit Control Act of 1985 (2 U.S.C.
900(c)(8)) shall not, for purposes of this
paragraph, be required to provide an
amount in excess of the amount deter-
mined to be equivalent to the proportionate
use of the one-stop centers by such pro-
grams in the State.
‘‘(iii) 
NATIVE
AMERICAN
PRO-
GRAMS.—Native American programs estab-
lished under section 166 shall not be sub-
ject to the provisions of this subsection.
The method for determining the appro-
priate portion of funds to be provided by
such Native American programs to pay for
the costs of infrastructure of a one-stop
center certified under subsection (g) shall
be determined as part of the development
of the memorandum of understanding
under subsection (c) for the one-stop cen-
ter and shall be stated in the memo-
randum.
‘‘(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 in-
frastructure 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 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)(1)(B) and participating partner pro-
grams described in subsection (b)(2)(B), or the
noncash resources available under such programs
shall be used to pay the costs relating to the oper-
ation 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 including—
‘‘(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
subsection (c). The State board shall provide guid-
ance 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 re-
ceive funds provided under section 133(b) for the provision
of such training services.
‘‘(b) CRITERIA.—
‘‘(1) IN
GENERAL.—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 con-
sideration the characteristics of the population
served and relevant economic conditions), and such
other factors as the Governor determines are appro-
priate to ensure the quality of services, the account-
ability of providers, how the centers ensure that
such providers meet the needs of local employers and
participants, whether providers of training allow par-
ticipants to attain a certification, certificate, or mas-
tery, and the informed choice of participants under
chapter 5. Such criteria shall require that the pro-
vider submit appropriate, accurate and timely infor-
mation 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 Gov-
ernor may authorize local areas in the State to es-
tablish 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
information regarding a student, including Social
Security 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 Edu-
cation 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 applica-
tions and in making determinations of eligibility based on
the criteria established under this section. The procedures
shall also establish a process for a provider of training
services to appeal a denial or termination of eligibility
under this section that includes an opportunity for a hear-
ing 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
assist 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, ac-
companied by such information as the Governor de-
termines 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.
‘‘(2) SPECIAL
RULE.—An entity that carries
out programs under the Act of August 16, 1937
(commonly 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 pro-
viders 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 per-
mit eligible providers of training services to accept indi-
vidual 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
recommendations of local boards and providers of training
services within the State.
‘‘(g) OPPORTUNITY TO SUBMIT COMMENTS.—During
the development of the criteria, procedures, and informa-
tion required under this section, the Governor shall pro-
vide an opportunity for interested members of the public,
including representatives of business and labor organiza-
tions, to submit comments regarding such criteria, proce-
dures, and information.
‘‘(h) 
ON-THE-JOB
TRAINING
OR
CUSTOMIZED
TRAINING EXCEPTION.—
‘‘(1) IN
GENERAL.—Providers of on-the-job
training or customized training shall not be subject
to the requirements of subsections (a) through (g).
‘‘(2) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—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
providers meet such performance criteria as the Gov-
ernor may require, and disseminate information
identifying providers that meet the criteria as eligi-
ble providers, and the performance information,
through the one-stop delivery system. Providers de-
termined to meet the criteria shall be considered to
be identified as eligible providers of training serv-
ices.’’.
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 fol-
lows:
‘‘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 cri-
teria 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 deter-
mines there are an insufficient number of eligible pro-
viders 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 reserve 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
reserve $250,000,000 to provide youth
challenge grants under section 169.
‘‘(B) OUTLYING AREAS AND NATIVE AMER-
ICANS.—
‘‘(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 (relating 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
Amendments 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
amount that was allotted to States for
fiscal 
year 
2005 
under 
section
127(b)(1)(C) of this Act (as in effect
on the day before the date of enact-
ment of the Job Training Improve-
ment Act of 2005) in accordance with
the requirements of such section
127(b)(1)(C); and
‘‘(II) the amount of the remain-
der, if any, in excess of the amount
referred to in subclause (I) in accord-
ance with clause (ii).
‘‘(ii) 
FORMULAS
FOR
EXCESS
FUNDS.—Subject to clauses (iii) and (iv),
of 
the 
amounts 
described 
in 
clause
(i)(II)—
‘‘(I) 331⁄3 percent shall be allot-
ted on the basis of the relative num-
ber of individuals in the civilian labor
force who are ages 16–19 in each
State, compared to the total number
of individuals in the civilian labor
force who are ages 16–19 in all
States;
‘‘(II) 331⁄3 percent shall be allot-
ted on the basis of the relative num-
ber of unemployed individuals in each
State, compared to the total number
of unemployed individuals in all
States; and
‘‘(III) 331⁄3 percent shall be allot-
ted on the basis of the relative num-
ber of disadvantaged youth who are
ages 16 through 21 in each 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 2006 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
2005, 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
Job Training Improvement Act of 2005) that is
received by the State involved for fiscal year
2005.
‘‘(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.
‘‘(3) SPECIAL RULE.—For purposes of the for-
mulas 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.’’.
(2) REALLOTMENT.—Section 127 (29 U.S.C.
2552) is further amended—
(A) by striking subsection (b);
(B) by redesignating subsection (c) as sub-
section (b);
(C) in subsection (b) (as so redesig-
nated)—
(i) by amending paragraph (2) to read
as follows:
‘‘(2) AMOUNT.—The amount available for real-
lotment for a program year is equal to the amount
by which the unexpended balance at the end of the
program year prior to the program year for which
the determination is made exceeds 30 percent of the
total amount of funds available to the State under
this section during such prior program year (includ-
ing amounts allotted to the State in all prior pro-
gram years that remained available). For purposes
of this paragraph, the expended balance is the
amount that is the difference between—
‘‘(A) the total amount of funds available to
the State under this section during the program
year prior to the program year for which the
determination is made (including amounts allot-
ted to the State in all prior program years that
remained available); and
‘‘(B) the accrued expenditures during such
prior program year.’’;
(ii) in paragraph (3)—
(I) by striking ‘‘for the prior pro-
gram year’’ and inserting ‘‘for the
program year in which the determina-
tion is made’’; and
(II) by striking ‘‘such prior pro-
gram year’’ and inserting ‘‘such pro-
gram year’’;
(iii) by amending paragraph (4) to
read as follows:
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible State means a State which does
not have an amount available for reallotment under
paragraph (2) for the program year for which the
determination under paragraph (2) is made.’’; and
(iv) in paragraph (5), by striking ‘‘ob-
ligation’’ and inserting ‘‘accrued expendi-
ture’’.
(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
ALLOCATIONS.—Section
128(b) is amended to read as follows:
‘‘(b) WITHIN STATE ALLOCATION.—
‘‘(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) 331⁄3 percent shall be allotted on
the basis of the relative number of individ-
uals in the civilian labor force who are ages
16–19 in each local area, compared to the
total number of individuals in the civilian
labor force who are ages 16–19 in all local
areas in the State;
‘‘(ii) 331⁄3 percent shall be allotted on
the basis of the relative number of unem-
ployed individuals in each local area, com-
pared to the total number of unemployed
individuals in all local areas in the State;
and
‘‘(iii) 331⁄3 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 dis-
advantaged 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 2006 or a subsequent fiscal year,
means a percentage of the amount de-
scribed 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 2005, 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 Job Training Improvement Act of
2005) that is received by the local area in-
volved for fiscal year 2005.
‘‘(ii) DISADVANTAGED
YOUTH.—The
term ‘disadvantaged youth’ means an indi-
vidual who is age 16 through 21 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.
‘‘(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).’’.
(3) 
REALLOCATION.—Section 
128(c) 
(29
U.S.C. 2853(c)) is amended—
(A) in paragraph (1), by striking ‘‘para-
graph (2)(A) or (3) of’’;
(B) by amending paragraph (2) to read as
follows:
‘‘(2) AMOUNT.—The amount available for re-
allocation for a program year is equal to the amount
by which the unexpended balance at the end of the
program year prior to the program year for which
the determination is made exceeds 30 percent of the
total amount of funds available to the local area
under this section during such prior program year,
(including amounts allotted to the local area in prior
program years that remain available). For purposes
of this paragraph, the unexpended balance is the
amount that is the difference between—
‘‘(A) the total amount of funds available to
the local area under this section during the pro-
gram year prior to the program year for which
the determination is made (including amounts
allocated to the local area in all prior program
years that remained available); and
‘‘(B) the accrued expenditures during such
prior program year.’’;
(C) by amending paragraph (3)—
(i) by striking ‘‘subsection (b)(3)’’ the
first two places it appears and inserting
‘‘subsection (b)’’;
(ii) by striking ‘‘the prior program
year’’ and inserting ‘‘the program year in
which the determination is made’’;
(iii) by striking ‘‘such prior program
year’’ and inserting ‘‘such program year’’;
and
(iv) by striking the last sentence; and
(D) by amending paragraph (4) to read as
follows:
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible local area means a local area
which does not have an amount available for re-
allocation under paragraph (2) for the program year
for which the determination under paragraph (2) is
made.’’.
(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 24; and
‘‘(B) one or more of the following:
‘‘(i) school dropouts;
‘‘(ii) recipients of a secondary school
diploma, General Educational Development
credential (GED), or other State-recog-
nized equivalent (including recognized al-
ternative standards for individuals with
disabilities) who are deficient in basic skills
and not attending any school;
‘‘(iii) court-involved youth attending
an alternative school;
‘‘(iv) youth in foster care or who have
been in foster care; or
‘‘(v) in school youth who are low-in-
come individuals and one or more of the
following:
‘‘(I) Deficient in literacy skills.
‘‘(II) Homeless, runaway, or fos-
ter children.
‘‘(III) Pregnant or parents.
‘‘(IV) Offenders.
‘‘(V) Individuals who require ad-
ditional assistance to complete an edu-
cational program, or to secure and
hold employment.
‘‘(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.
‘‘(3) LIMITATIONS
ON
ACTIVITIES
FOR
IN-
SCHOOL YOUTH.—
‘‘(A) PERCENTAGE OF FUNDS.—For any
program year, not more than 30 percent of the
funds available for statewide activities under
subsection (b), and not more than 30 percent of
funds available to local areas under subsection
(c), may be used to provide activities for in-
school youth meeting the requirements of para-
graph (1)(B)(v).
‘‘(B) NON-SCHOOL HOURS REQUIRED.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), activities carried out
under this chapter for in-school youth
meeting the requirements of paragraph
(1)(B)(v) shall only be carried out in non-
school hours or periods when school is not
in session (such as before and after school
or during recess).
‘‘(ii) EXCEPTION.—The requirements
of clause (i) shall not apply to activities
carried out for in-school youth meeting the
requirements of paragraph (1)(B)(v) dur-
ing school hours that are part of a pro-
gram that has demonstrated effectiveness
in high school youth attaining diplomas.’’.
(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
including—
‘‘(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(c)(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 matter preceding 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 before clause (ii) (as
so redesignated) the following:
‘‘(i) activities leading to the attain-
ment of a secondary school diploma, Gen-
eral Educational Development credential
(GED), or other State-recognized equiva-
lent 
(including 
recognized 
alternative
standards for individuals with disabil-
ities);’’;
(iii) in clause (ii) (as so redesignated),
by inserting ‘‘and advanced training’’ after
‘‘opportunities’’;
(iv) in clause (iii) (as so redesig-
nated), by inserting ‘‘that lead to the at-
tainment of recognized credentials’’ 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, General Educational Development cre-
dential (GED), or other State-recognized equiv-
alent (including recognized alternative stand-
ards for individuals with disabilities), including
dropout prevention strategies’’;
(B) in subparagraph (I), by striking ‘‘and’’
at the end;
(C) in subparagraph (J), by striking the
period at the end and inserting a semicolon;
and
(D) by adding at the end the following:
‘‘(K) on-the-job training opportunities; and
‘‘(L) financial literacy skills.’’.
(3) 
ADDITIONAL
REQUIREMENTS.—Section
129(c)(3)(A) (29 U.S.C. 2854(c)(3)(A)) is amended
in the matter preceding clause (i) by striking ‘‘or ap-
plicant who meets the minimum income 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 PROGRAMS FOR ADULTS.
(a) TITLE AMENDMENT.—
(1) The title heading of chapter 5 is amended
to read as follows:
‘‘CHAPTER 5—COMPREHENSIVE EMPLOY-
MENT AND TRAINING ACTIVITIES FOR
ADULTS’’.
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1(b) is amended by amending the
item related to the heading for chapter 5 to read as
follows:
‘‘CHAPTER 5—COMPREHENSIVE EMPLOYMENT 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 dislocated worker grants under sec-
tion 173, of which up to $125,000,000 may be
used to carry out section 171(d);
‘‘(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.—
‘‘(A) IN
GENERAL.—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
training activities for adults and statewide
workforce investment activities.
‘‘(B) 
RESTRICTION.—The 
Republic 
of
Palau shall cease to be eligible to receive fund-
ing under this paragraph upon entering into an
agreement for extension of United States edu-
cational assistance under the Compact of Free
Association (approved by the Compact of Free
Association Amendments Act of 2003 (Public
Law 108–188)) after the date of enactment of
the Job Training Improvement Act of 2005.
‘‘(2) STATES.—Subject to paragraph (5), of the
remainder of the amount referred to under sub-
section (a)(2) for a fiscal year that is available after
determining the amount to be reserved under para-
graph (1), the Secretary shall allot to the States for
employment and training activities for adults and for
statewide workforce investment activities—
‘‘(A) 26 percent in accordance with para-
graph (3); and
‘‘(B) 74 percent in accordance with para-
graph (4).
‘‘(3) BASE FORMULA.—
‘‘(A) FISCAL YEAR 2006.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), the amount referred to in paragraph
(2)(A) shall be allotted for fiscal year 2006
on the basis of allotment percentage of
each State under section 6 of the Wagner-
Peyser Act for fiscal year 2005.
‘‘(ii) 
EXCESS
AMOUNTS.—If 
the
amount referred to in paragraph (2)(A) for
fiscal year 2006 exceeds the amount that
was available for allotment to the States
under the Wagner-Peyser Act for fiscal
year 2005, such excess amount shall be al-
lotted on the basis of the relative number
of individuals in the civilian labor force in
each State, compared to the total number
of individuals in the civilian labor force in
all States, adjusted to ensure that no State
receives less than 3⁄10 of one percent of
such excess amount.
‘‘(iii) DEFINITION.—For purposes of
this subparagraph, the term ‘allotment
percentage’ means the percentage of the
amounts allotted to States under section 6
of the Wagner-Peyser Act that is received
by the State involved for fiscal year 2005.
‘‘(B) FISCAL
YEARS
2007
AND
THERE-
AFTER.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), the amount referred to in para-
graph(2)(A) shall be allotted for fiscal year
2007 and each fiscal year thereafter on the
basis of the allotment percentage of each
State under this paragraph for the pre-
ceding fiscal year.
‘‘(ii) 
EXCESS
AMOUNTS.—If 
the
amount referred to in paragraph (2)(A) for
fiscal year 2007 or any fiscal year there-
after exceeds the amount that was avail-
able for allotment under this paragraph for
the prior fiscal year, such excess amount
shall be allotted on the basis of the relative
number of individuals in the civilian labor
force in each State, compared to the total
number of individuals in the civilian labor
force in all States, adjusted to ensure that
no State receives less than 3⁄10 of one per-
cent of such excess amount.
‘‘(iii) DEFINITION.—For purposes of
this subparagraph, the term ‘allotment
percentage’ means the percentage of the
amounts allotted to States under this para-
graph in a fiscal year that is received by
the State involved for such fiscal year.
‘‘(4) CONSOLIDATED FORMULA.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), of the amount referred to
in paragraph (2)(B)—
‘‘(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) 25 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; and
‘‘(iii) 15 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.
‘‘(B) MINIMUM AND MAXIMUM PERCENT-
AGES.—
‘‘(i) 
MINIMUM
PERCENTAGE.—The
Secretary shall ensure that no State shall
receive an allotment under this paragraph
for a fiscal year that is less than 90 per-
cent of the allotment percentage of the
State under this paragraph for the pre-
ceding fiscal year.
‘‘(ii) MAXIMUM
PERCENTAGE.—Sub-
ject to clause (i), the Secretary shall en-
sure that no State shall receive an allot-
ment for a fiscal year under this para-
graph that is more than 130 percent of the
allotment of the State under this para-
graph for the preceding fiscal year.
‘‘(C) SMALL
STATE
MINIMUM
ALLOT-
MENT.—Subject to subparagraph (B), the Sec-
retary shall ensure that no State shall receive
an allotment under this paragraph that is less
than 2⁄10 of 1 percent of the amount available
under subparagraph (A).
‘‘(D) DEFINITIONS.—For the purposes of
this paragraph:
‘‘(i) ALLOTMENT PERCENTAGE.—The
term ‘allotment percentage’, used with re-
spect to fiscal year 2006 or a subsequent