of the expenses described in paragraph (4) from non-Federal 
sources. 
‘‘(6)(A) Amounts made available for a project under 
this title that are not used to pay for the administrative 
costs shall be used to pay for the costs of programmatic ac-
tivities, including— 
‘‘(i) participant wages, such benefits as are re-
quired by law (such as workers compensation or un-
employment compensation) the costs of physical ex-
aminations, compensation for scheduled work hours 
during which an employer is closed for a Federal hol-
iday, and necessary sick leave that is not part of an 
accumulated sick leave program, except that no 
amounts provided under this title may be used to pay 
the cost of pension benefits, annual leave, accumu-
lated sick leave, or bonuses; 
‘‘(ii) participant training (including the pay-
ment of reasonable costs of instructors, classroom 
rental, training supplies, materials, equipment, and 
tuition) which may be provided prior to or subsequent 
to placement and which may be provided on the job, 
in a classroom setting or pursuant to other appro-
priate arrangements; 
‘‘(iii) job placement assistance, including job de-
velopment and job search assistance;
‘‘(iv) participant supportive services to enable a 
participant to successfully participate in a project 
under this title, which may include the payment of 
reasonable costs of transportation, special job-related 
or personal counseling, incidentals (such as work 
shoes, badges, uniforms, eyeglasses, and tools), child 
and adult care, temporary shelter, and follow-up serv-
ices; and 
‘‘(v) outreach, recruitment, and selection, intake, 
orientation, and assessments. 
‘‘(B) Not less than 65 percent of the funds made avail-
able under a grant made under this title (excluding a grant 
made under subsection (d)) shall be used to pay wages and 
benefits for eligible individuals who are employed under 
projects carried out under this title. 
‘‘(d) PILOT, DEMONSTRATION, 
AND
EVALUATION 
PROJECTS.—The Secretary shall use funds reserved under 
section 506(a)(1) to carry out demonstration projects, pilot 
projects, and evaluation projects, for the purpose of devel-
oping and implementing techniques and approaches, and 
demonstrating the effectiveness of the specialized methods, 
in addressing the employment and training needs of eligible 
individuals. Such projects may include— 
‘‘(1) activities linking businesses and eligible in-
dividuals, 
including 
assistance 
to 
participants
transitioning from subsidized activities to private-sec-
tor employment; and 
‘‘(2) demonstration projects and pilot projects 
designed to— 
‘‘(A) attract more eligible individuals into 
the labor force; 
‘‘(B) improve the provision of services to el-
igible individuals under the One-Stop delivery 
system established in accordance with title I of 
the Workforce Investment Act of 1998; 
‘‘(C) enhance the technological skills of eligi-
ble individuals; and 
‘‘(D) provide incentives to grantees under 
this title for exemplary performance and incen-
tives to businesses to promote their participation 
in the program under this title; 
‘‘(3) demonstration projects and pilot projects, as 
described in paragraph (2), for older workers only if 
such demonstration projects and pilot projects are de-
signed to assist in developing and implementing tech-
niques and approaches in addressing the employment 
and training needs of eligible individuals; 
‘‘(4) training and technical assistance to support 
any project funded under this title; 
‘‘(5) dissemination of best practices; and
‘‘(6) evaluation of the activities authorized under 
this title. 
‘‘SEC. 503. ADMINISTRATION. 
‘‘(a) STATE PLAN.— 
‘‘(1) 
CHIEF
EXECUTIVE
OFFICER
SUBMITS 
PLAN.—For a State to be eligible to receive an allot-
ment under section, 506, the chief executive officer of 
the State shall submit to the Secretary for consider-
ation and approval, a single State plan (referred to 
in this title as the ‘State plan’) that outlines a 3-year 
strategy for the statewide provision of training and 
related activities for eligible individuals under this 
title. The plan shall contain such provisions as the 
Secretary may require, consistent with this title, in-
cluding a description of the process used to ensure the 
participation of individuals described in paragraph 
(2). 
‘‘(2) RECOMMENDATIONS.—In developing the 
State plan prior to its submission to the Secretary, 
the chief executive officer of the State shall seek the 
advice and recommendations of— 
‘‘(A) individuals representing the State 
agency and the area agencies on aging in the 
State, and the State and local workforce invest-
ment boards established under title I of the
Workforce Investment Act of 1998 (29 U.S.C. 
2801 et seq.); 
‘‘(B) individuals representing public and 
nonprofit private agencies and organizations 
providing employment services, including each 
grantee operating a project under this title in the 
State; and 
‘‘(C) individuals representing social service 
organizations providing services to older individ-
uals, grantees under title III of this Act, affected 
communities, unemployed older individuals, 
community-based organizations serving the needs 
of older individuals, business organizations, and 
labor organizations. 
‘‘(3) COMMENTS.—Any State plan submitted by 
the chief executive officer in accordance with para-
graph (1) shall be accompanied by copies of public 
comments relating to the plan received pursuant to 
paragraph (4) and a summary thereof. 
‘‘(4) PLAN PROVISIONS.—The State plan shall 
identify and address— 
‘‘(A) the relationship that the number of eli-
gible individuals in each area bears to the total 
number of eligible individuals, respectively, in 
the State;
‘‘(B) the relative distribution of eligible in-
dividuals residing in rural and urban areas in 
the State; and 
‘‘(C) the relative distribution of— 
‘‘(i) eligible individuals who are indi-
viduals with greatest economic need; 
‘‘(ii) eligible individuals who are mi-
nority individuals, including individuals 
who are limited English proficient; and 
‘‘(iii) eligible individuals who are in-
dividuals with greatest social need; 
‘‘(D) the current and projected employment 
opportunities in the State, by occupation, and 
the type of skills possessed by local eligible indi-
viduals; 
‘‘(E) the localities and populations for 
which projects of the type authorized by this title 
are most needed; and 
‘‘(F) plans for facilitating the coordination 
of activities of grantees in the State under this 
title with activities carried out in the State 
under title I of the Workforce Investment Act of 
1998. 
‘‘(5) 
CHIEF
EXECUTIVE
OFFICER’S
REC-
OMMENDATIONS
ON
GRANT
PROPOSALS.—Before a
proposal for a grant under this title for any fiscal 
year is submitted to the Secretary, the chief executive 
officer of each State in which projects are proposed to 
be conducted under such grant shall be afforded a rea-
sonable opportunity to submit recommendations to 
the Secretary— 
‘‘(A) regarding the anticipated effect of each 
such proposal upon the overall distribution of en-
rollment positions under this title in the State 
(including such distribution among urban and 
rural areas), taking into account the total num-
ber of positions to be provided by all grantees in 
the State; 
‘‘(B) any recommendations for redistribu-
tion of positions to under served areas as vacan-
cies occur in previously encumbered positions in 
other areas; and 
‘‘(C) in the case of any increase in funding 
that may be available for use in the State under 
this title for any fiscal year, any recommenda-
tions for distribution of newly available posi-
tions in excess of those available during the pre-
ceding year to underserved areas. 
‘‘(6) DISRUPTIONS.—In developing plans and 
considering recommendations under this subsection,