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‘‘(2) EQUITABLE ACCESS.—Each eligible agency
awarding a grant under this section for adult edu-
cation and literacy activities shall ensure that the
providers described in subsection (b) will be provided
direct and equitable access to all Federal funds pro-
vided under this section.
‘‘(3) SPECIAL
RULE.—Each eligible agency
awarding a grant under this section shall not use
any funds made available under this title for adult
education and literacy activities for the purpose of
supporting or providing programs, services, or activi-
ties for individuals who are not individuals described
in subparagraphs (A) and (B) of section 303(1), ex-
cept that such agency may use such funds for such
purpose if such programs, services, or activities are
related to family literacy services.
‘‘(4) CONSIDERATIONS.—In awarding grants
under this section, the eligible agency shall con-
sider—
‘‘(A) the degree to which the provider will
establish measurable goals for client outcomes,
including the core indicators of performance
pertaining to adult education set forth in sec-
tion 154 of the Employment, Training, and Lit-
eracy Enhancement Act, that are tied to chal-
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lenging State performance standards for lit-
eracy proficiency;
‘‘(B) the past effectiveness of a provider in
improving the literacy skills of adults and fami-
lies, and, after the 1-year period beginning with
the adoption of a State’s core indicators and
benchmarks under the Employment, Training,
and Literacy Enhancement Act, the success of
a provider receiving funding under this Act in
meeting or exceeding such benchmarks, espe-
cially with respect to those adults with the low-
est levels of literacy;
‘‘(C) the degree to which the program is
staffed by well-trained instructors and adminis-
trators;
‘‘(D) the degree to which the provider will
coordinate with other available resources in the
community;
‘‘(E) the commitment of the provider to
serve individuals in the community who are
most in need of literacy services, including indi-
viduals who are low income, who have minimal
literacy skills, or both;
‘‘(F) whether or not the program is of suf-
ficient intensity and duration for participants to
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achieve substantial learning gains and uses in-
structional practices, such as phonemic aware-
ness and systematic phonics, that research has
proven to be effective in teaching individuals to
read; and
‘‘(G) the degree to which the provider will
offer flexible schedules and necessary support
services (such as child care and transportation)
to enable individuals, including individuals with
disabilities or other special needs, to participate
in adult education and literacy activities.
‘‘(d) LOCAL ADMINISTRATIVE COST LIMITS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), of the funds provided under this section
by an eligible agency to a provider described in sub-
section (b), not less than 95 percent shall be ex-
pended for provision of adult education and literacy
activities. The remainder shall be used for planning,
administration, personnel development, and inter-
agency coordination.
‘‘(2) SPECIAL RULE.—In cases where the cost
limits described in paragraph (1) will be too restric-
tive to allow for adequate planning, administration,
personnel development, and interagency coordination
supported under this section, the eligible agency
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shall negotiate with the provider described in sub-
section (b) in order to determine an adequate level
of funds to be used for noninstructional purposes.
‘‘SEC. 314. ADULT EDUCATION AND LITERACY ACTIVITIES.
‘‘(a) PERMISSIBLE AGENCY ACTIVITIES.—An eligible
agency may use funds made available to the eligible agen-
cy under section 313(a)(2) for activities that may in-
clude—
‘‘(1) the establishment or operation of profes-
sional development programs to improve the quality
of instruction provided pursuant to local activities
required under subsection (b), including instruction
incorporating phonemic awareness and systematic
phonics and instruction provided by volunteers or by
personnel of a State or outlying area;
‘‘(2) the provision of technical assistance to eli-
gible providers of activities authorized under this
section;
‘‘(3) the provision of technology assistance, in-
cluding staff training, to eligible providers of activi-
ties authorized under this section to enable the pro-
viders to improve the quality of such activities;
‘‘(4) the support of State or regional networks
of literacy resource centers;
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‘‘(5) the monitoring and evaluation of the qual-
ity of, and the improvement in, activities and serv-
ices authorized under this section;
‘‘(6) incentives for—
‘‘(A) program coordination and integra-
tion; and
‘‘(B) performance awards;
‘‘(7) developing and disseminating curricula, in-
cluding curricula incorporating phonemic awareness
±and systematic phonics;
‘‘(8) other activities of statewide significance
that promote the purposes of this title; and
‘‘(9) the provision of support services, such as
transportation, child care, and other assistance de-
signed to increase rates of enrollment in, and suc-
cessful completion of, adult education and literacy
activities, to adults enrolled in such activities.
‘‘(b) REQUIRED LOCAL ACTIVITIES.—The eligible
agency shall require that each eligible provider receiving
a grant under section 313 use the grant to establish or
operate 1 or more programs that provide instruction or
services in 1 or more of the following categories:
‘‘(1) Adult education and literacy services, in-
cluding services provided on the work site.
‘‘(2) Family literacy services.
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‘‘(3) English literacy programs.
‘‘(c) STATE-IMPOSED REQUIREMENTS.—Whenever a
State implements any rule or policy relating to the admin-
istration or operation of a program authorized under this
title that has the effect of imposing a requirement that
is not imposed under Federal law (including any rule or
policy based on a State interpretation of a Federal statute,
regulation, or guideline), it shall identify, to eligible pro-
viders, the rule or policy as being State-imposed.
‘‘SEC. 315. FISCAL REQUIREMENTS AND RESTRICTIONS RE-
LATED TO USE OF FUNDS.
‘‘(a) SUPPLEMENT
NOT SUPPLANT.—Funds made
available under this part for adult education and literacy
activities shall supplement, and may not supplant, other
public funds expended to carry out activities described in
section 314.
‘‘(b) MAINTENANCE OF EFFORT.—
‘‘(1) IN GENERAL.—
‘‘(A) DETERMINATION.—An eligible agency
may receive funds under this Act for any fiscal
year if the Secretary finds that the fiscal effort
per student or the aggregate expenditures of
such eligible agency for adult education and lit-
eracy, in the second preceding fiscal year, was
not less than 90 percent of the fiscal effort per
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student or the aggregate expenditures of such
eligible agency for adult education and literacy,
in the third preceding fiscal year.
‘‘(B) PROPORTIONATE REDUCTION.—Sub-
ject to paragraphs (2), (3), and (4), for any
program year with respect to which the Sec-
retary determines under subparagraph (A) that
the fiscal effort and the aggregate expenditures
of an eligible agency for the preceding program
year were less than such effort and expendi-
tures for the second preceding program year,
the Secretary—
‘‘(i) shall determine the percentage
decreases in such effort and in such ex-
penditures; and
‘‘(ii) shall decrease the payment made
under this part for such program year to
the agency for adult education and literacy
activities by the lesser of such percentages.
‘‘(2) COMPUTATION.—In computing the fiscal
effort and aggregate expenditures under paragraph
(1), the Secretary shall exclude capital expenditures
and special one-time project costs.
‘‘(3) DECREASE IN FEDERAL SUPPORT.—If the
amount made available for adult education and lit-
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eracy activities under this part for a fiscal year is
less than the amount made available for adult edu-
cation and literacy activities under this part for the
preceding fiscal year, then the fiscal effort per stu-
dent and the aggregate expenditures of an eligible
agency required in order to avoid a reduction under
paragraph (1)(B) shall be decreased by the same
percentage as the percentage decrease in the amount
so made available.
‘‘(4) WAIVER.—The Secretary may waive the
requirements of this subsection for 1 fiscal year
only, if the Secretary determines that a waiver would
be equitable due to exceptional or uncontrollable cir-
cumstances, such as a natural disaster or an unfore-
seen and precipitous decline in the financial re-
sources of the State of the eligible agency. If the
Secretary grants a waiver under the preceding sen-
tence for a fiscal year, the level of effort required
under paragraph (1) shall not be reduced in the sub-
sequent fiscal year because of the waiver.
‘‘(c) EXPENDITURES OF NON-FEDERAL FUNDS FOR
ADULT EDUCATION
AND LITERACY ACTIVITIES.—For
any program year for which a grant is made to an eligible
agency under this part, the eligible agency shall expend,
on programs and activities relating to adult education and
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literacy activities, an amount, derived from sources other
than the Federal Government, equal to 25 percent of the
amount made available to the eligible agency under this
part for adult education and literacy activities.
‘‘PART B—NATIONAL PROGRAMS
‘‘SEC. 321. NATIONAL INSTITUTE FOR LITERACY.
‘‘(a) PURPOSE.—The National Institute for Literacy
shall—
‘‘(1) provide national leadership with respect to
literacy in the United States;
‘‘(2) coordinate literacy services; and
‘‘(3) serve as a national resource for adult edu-
cation and family literacy by providing the best and
most current information available, including the
work of the National Institute of Child Health and
Human Development in the area of phonemic aware-
ness and systematic phonics, and supporting the cre-
ation of new ways to offer services of proven effec-
tiveness.
‘‘(b) ESTABLISHMENT.—
‘‘(1) IN
GENERAL.—There is established the
National Institute for Literacy (in this section re-
ferred to as the ‘Institute’). The Institute shall be
administered under the terms of an interagency
agreement entered into by the Secretary of Edu-
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cation with the Secretary of Labor and the Secretary
of Health and Human Services (in this section re-
ferred to as the ‘Interagency Group’). The Inter-
agency Group may include in the Institute any re-
search and development center, institute, or clear-
inghouse established within the Department of Edu-
cation, the Department of Labor, or the Department
of Health and Human Services whose purpose is de-
termined by the Interagency Group to be related to
the purpose of the Institute.
‘‘(2) OFFICES.—The Institute shall have offices
separate from the offices of the Department of Edu-
cation, the Department of Labor, and the Depart-
ment of Health and Human Services.
‘‘(3) BOARD RECOMMENDATIONS.—The Inter-
agency Group shall consider the recommendations of
the National Institute for Literacy Advisory Board
(in this section referred to as the ‘Board’) estab-
lished under subsection (d) in planning the goals of
the Institute and in the implementation of any pro-
grams to achieve such goals.
‘‘(4) DAILY OPERATIONS.—The daily operations
of the Institute shall be carried out by the Director
of the Institute appointed under subsection (g).
‘‘(c) DUTIES.—
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‘‘(1) IN GENERAL.—In order to provide leader-
ship for the improvement and expansion of the sys-
tem for delivery of literacy services, the Institute is
authorized—
‘‘(A) to establish, and make accessible, a
national electronic data base of information
that disseminates information to the broadest
possible audience within the literacy and basic
skills field, and that includes—
‘‘(i) effective practices in the provision
of literacy and basic skills instruction, in-
cluding instruction in phonemic awareness
and systematic phonics and the integration
of literacy and basic skills instruction with
occupational skills training;
‘‘(ii) public and private literacy and
basic skills programs and Federal, State,
and local policies affecting the provision of
literacy services at the national, State, and
local levels;
‘‘(iii) opportunities for technical as-
sistance, meetings, conferences, and other
opportunities that lead to the improvement
of literacy and basic skills services; and
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‘‘(iv) a communication network for lit-
eracy programs, providers, social service
agencies, and students;
‘‘(B) to coordinate support for the provi-
sion of literacy and basic skills services across
Federal agencies and at the State and local lev-
els;
‘‘(C) to coordinate the support of reliable
and replicable research and development on lit-
eracy and basic skills in families and adults
across Federal agencies, especially with the Of-
fice of Educational Research and Improvement
in the Department of Education, and to carry
out basic and applied research and development
on topics that are not being investigated by
other organizations or agencies, such as the
special literacy needs of individuals with learn-
ing disabilities;
‘‘(D) to collect and disseminate informa-
tion on methods of advancing literacy that show
great promise, including phonemic awareness
and systematic phonics based on the work of
the National Institute of Child Health and
Human Development;
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‘‘(E) funding a network of State or re-
gional adult literacy resource centers to assist
State and local public and private nonprofit ef-
forts to improve literacy by—
‘‘(i) encouraging the coordination of
literacy services;
‘‘(ii) carrying out evaluations of the
effectiveness of adult education and lit-
eracy activities;
‘‘(iii) enhancing the capacity of State
and local organizations to provide literacy
services; and
‘‘(iv) serving as a reciprocal link be-
tween the Institute and providers of adult
education and literacy activities for the
purpose of sharing information, data, re-
search, expertise, and literacy resources;
‘‘(F) to coordinate and share information
with national organizations and associations
that are interested in literacy and workforce de-
velopment;
‘‘(G) to inform the development of policy
with respect to literacy and basic skills; and
‘‘(H) to undertake other activities that
lead to the improvement of the Nation’s literacy
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delivery system and that complement other such
efforts being undertaken by public and private
agencies and organizations.
‘‘(2) 
GRANTS, 
CONTRACTS, 
AND
AGREE-
MENTS.—The Institute may make grants to, or
enter into contracts or cooperative agreements with,
individuals, public or private institutions, agencies,
organizations, or consortia of such institutions,
agencies, or organizations to carry out the activities
of the Institute. Such grants, contracts, or agree-
ments shall be subject to the laws and regulations
that generally apply to grants, contracts, or agree-
ments entered into by Federal agencies.
‘‘(d) LITERACY LEADERSHIP.—
‘‘(1) FELLOWSHIPS.—The Institute, in con-
sultation with the Board, may award fellowships,
with such stipends and allowances as the Director
considers necessary, to outstanding individuals pur-
suing careers in adult education or literacy in the
areas of instruction, management, reliable and
replicable research, or innovation.
‘‘(2) 
USE
OF
FELLOWSHIPS.—Fellowships
awarded under this subsection shall be used, under
the auspices of the Institute, to engage in research,
education, training, technical assistance, or other ac-
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tivities to advance the field of adult education or lit-
eracy, including the training of volunteer literacy
providers at the national, State, or local level.
‘‘(3) INTERNS AND VOLUNTEERS.—The Insti-
tute, in consultation with the Board, may award
paid and unpaid internships to individuals seeking to
assist the Institute in carrying out its mission. Not-
withstanding section 1342 of title 31, United States
Code, the Institute may accept and use voluntary
and uncompensated services as the Institute deter-
mines necessary.
‘‘(e) NATIONAL INSTITUTE FOR LITERACY ADVISORY
BOARD.—
‘‘(1) ESTABLISHMENT.—
‘‘(A) IN GENERAL.—There is established a
National Institute for Literacy Advisory Board.
The Board shall consist of 10 individuals, ap-
pointed by the Interagency Group, from individ-
uals who—
‘‘(i) are not otherwise officers or em-
ployees of the Federal Government; and
‘‘(ii) are representative of entities or
groups described in subparagraph (B).
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‘‘(B) ENTITIES OR GROUPS DESCRIBED.—
The entities or groups referred to in subpara-
graph (A) are—
‘‘(i) literacy organizations and provid-
ers of literacy services, including—
‘‘(I) nonprofit providers of lit-
eracy services;
‘‘(II) providers of programs and
services involving English language in-
struction; and
‘‘(III) providers of services re-
ceiving assistance under this title;
‘‘(ii) 
businesses 
that 
have 
dem-
onstrated interest in literacy programs;
‘‘(iii) literacy students;
‘‘(iv) experts in the area of literacy re-
search;
‘‘(v) State and local governments;
‘‘(vi) representatives of employees;
and
‘‘(vii) State directors of adult edu-
cation.
‘‘(2) DUTIES.—The Board—
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‘‘(A) shall make recommendations concern-
ing the appointment of the Director and staff
of the Institute;
‘‘(B) shall provide independent advice on
the operation of the Institute; and
‘‘(C) shall receive reports from the Inter-
agency Group and the Director.
‘‘(3) FEDERAL
ADVISORY
COMMITTEE
ACT.—
Except as otherwise provided, the Board established
by this subsection shall be subject to the provisions
of the Federal Advisory Committee Act (5 U.S.C.
App.).
‘‘(4) TERMS.—
‘‘(A) IN GENERAL.—Each member of the
Board shall be appointed for a term of 3 years,
except that the initial terms for members may
be 1, 2, or 3 years in order to establish a rota-
tion in which 1⁄3 of the members are selected
each year. Any such member may be appointed
for not more than 2 consecutive terms.
‘‘(B) 
VACANCY
APPOINTMENTS.—Any
member appointed to fill a vacancy occurring
before the expiration of the term for which the
member’s predecessor was appointed shall be
appointed only for the remainder of that term.
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A member may serve after the expiration of
that member’s term until a successor has taken
office. A vacancy in the Board shall be filled in
the manner in which the original appointment
was made. A vacancy in the Board shall not af-
fect the powers of the Board.
‘‘(5) QUORUM.—A majority of the members of
the Board shall constitute a quorum but a lesser
number may hold hearings. Any recommendation of
the Board may be passed only by a majority of the
Board’s members present.
‘‘(6) ELECTION
OF
OFFICERS.—The Chair-
person and Vice Chairperson of the Board shall be
elected by the members of the Board. The term of
office of the Chairperson and Vice Chairperson shall
be 2 years.
‘‘(7) MEETINGS.—The Board shall meet at the
call of the Chairperson or a majority of the members
of the Board.
‘‘(f) GIFTS, BEQUESTS, AND DEVISES.—The Insti-
tute may accept, administer, and use gifts or donations
of services, money, or property, both real and personal.
‘‘(g) MAILS.—The Board and the Institute may use
the United States mails in the same manner and under
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the same conditions as other departments and agencies of
the Federal Government.
‘‘(h) DIRECTOR.—The Interagency Group, after con-
sidering recommendations made by the Board, shall ap-
point and fix the pay of a Director.
‘‘(i) APPLICABILITY
OF CERTAIN CIVIL SERVICE
LAWS.—The Director and staff of the Institute may be
appointed without regard to the provisions of title 5,
United States Code, governing appointments in the com-
petitive service, and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53
of that title relating to classification and General Schedule
pay rates, except that an individual so appointed may not
receive pay in excess of the maximum rate payable under
section 5376 of title 5, United States Code.
‘‘(j) EXPERTS AND CONSULTANTS.—The Board and
the Institute may procure temporary and intermittent
services under section 3109(b) of title 5, United States
Code.
‘‘(k) REPORT.—The Institute shall submit a report
biennially to the committees of the United States House
of Representatives and the Senate having jurisdiction over
this title. Each report submitted under this subsection
shall include—
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‘‘(1) a comprehensive and detailed description
of the Institute’s operations, activities, financial con-
dition, and accomplishments in the field of literacy
for the period covered by the report;
‘‘(2) a description of how plans for the oper-
ation of the Institute for the succeeding two fiscal
years will facilitate achievement of the goals of the
Institute and the goals of the literacy programs
within the Department of Education, the Depart-
ment of Labor, and the Department of Health and
Human Services; and
‘‘(3) any additional minority, or dissenting
views submitted by members of the Board.
‘‘(l) FUNDING.—Any amounts appropriated to the
Secretary of Education, the Secretary of Labor, or the
Secretary of Health and Human Services for purposes
that the Institute is authorized to perform under this sec-
tion may be provided to the Institute for such purposes.
‘‘SEC. 322. NATIONAL LEADERSHIP ACTIVITIES.
‘‘The Secretary shall establish and carry out a pro-
gram of national leadership activities to enhance the qual-
ity of adult education and family literacy programs nation-
wide. Such activities may include the following:
‘‘(1) Providing technical assistance to recipients
of assistance under part A in developing and using
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benchmarks and performance measures for improve-
ment of adult education and literacy activities, in-
cluding family literacy services.
‘‘(2) Awarding grants, on a competitive basis,
to a postsecondary educational institution, a public
or private organization or agency, or a consortium of
such institutions, organizations, or agencies to carry
out research and technical assistance—
‘‘(A) for the purpose of developing, improv-
ing, and identifying the most successful meth-
ods and techniques for addressing the education
needs of adults, including instructional prac-
tices using phonemic awareness and systematic
phonics based on the work of the National In-
stitute of Child Health and Human Develop-
ment; and
‘‘(B) to increase the effectiveness of, and
improve the quality of, adult education and lit-
eracy activities, including family literacy serv-
ices.
‘‘(3) Providing for the conduct of an independ-
ent evaluation and assessment of adult education
and literacy activities, through studies and analyses
conducted independently through grants and con-
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tracts awarded on a competitive basis. Such evalua-
tion and assessment shall include descriptions of—
‘‘(A) the effect of benchmarks, perform-
ance measures, and other measures of account-
ability on the delivery of adult education and
literacy activities, including family literacy serv-
ices;
‘‘(B) the extent to which the adult edu-
cation and literacy activities, including family
literacy services, increase the literacy skills of
adults (and of children, in the case of family lit-
eracy services), lead the participants in such ac-
tivities to involvement in further education and
training, enhance the employment and earnings
of such participants, and, if applicable, lead to
other positive outcomes, such as reductions in
recidivism in the case of prison-based adult edu-
cation and literacy services;
‘‘(C) the extent to which the provision of
support services to adults enrolled in adult edu-
cation and family literacy programs increases
the rates of enrollment in, and successful com-
pletion of, such programs; and
‘‘(D) the extent to which eligible agencies
have distributed funds under part A to meet the
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needs of adults through community-based orga-
nizations.
‘‘(4) Carrying out demonstration programs,
replicating model programs, disseminating best prac-
tices information, and providing technical assistance,
for the purposes of developing, improving, and iden-
tifying the most successful methods and techniques
for providing the activities assisted under part A,
and based on scientific evidence, where available.
‘‘(5) Other activities designed to enhance the
quality of adult education and literacy nationwide,
such as providing incentive grants to States consist-
ent with section 156 of the Employment, Training,
and Literacy Enhancement Act.
‘‘SEC. 323. BUY-AMERICAN REQUIREMENTS.
‘‘(a) COMPLIANCE WITH BUY AMERICAN ACT.—
None of the funds made available in this Act may be ex-
pended by an entity unless the entity agrees that in ex-
pending the funds the entity will comply with the Buy
American Act (41 U.S.C. 10a–10c).
‘‘(b) SENSE OF CONGRESS; REQUIREMENT REGARD-
ING NOTICE.—
‘‘(1) PURCHASE
OF
AMERICAN-MADE
EQUIP-
MENT AND PRODUCTS.—In the case of any equip-
ment or product that may be authorized to be pur-
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chased with financial assistance provided using
funds made available in this Act, it is the sense of
the Congress that entities receiving the assistance
should, in expending the assistance, purchase only
American-made equipment and products.
‘‘(2) NOTICE TO RECIPIENTS OF ASSISTANCE.—
In providing financial assistance using funds made
available in this Act, the head of each Federal agen-
cy shall provide to each recipient of the assistance
a notice describing the statement made in paragraph
(1) by the Congress.
‘‘(c) PROHIBITION OF CONTRACTS WITH PERSONS
FALSELY LABELING PRODUCTS AS MADE IN AMERICA.—
If it has been finally determined by a court or Federal
agency that any person intentionally affixed a label bear-
ing a ‘Made in America’ inscription, or any inscription
with the same meaning, to any product sold in or shipped
to the United States that is not made in the United
States, the person shall be ineligible to receive any con-
tract or subcontract made with funds made available in
this Act, pursuant to the debarment, suspension, and ineli-
gibility procedures described in sections 9.400 through
9.409 of title 48, Code of Federal Regulations.’’.
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SEC. 503. REPEAL OF NATIONAL LITERACY ACT OF 1991.
The National Literacy Act of 1991 (Public Law 102–
73; 105 Stat. 333) is hereby repealed.
SEC. 504. CONFORMING AMENDMENTS.
(a) REFUGEE EDUCATION ASSISTANCE ACT.—Sub-
section (b) of section 402 of the Refugee Education Assist-
ance Act of 1980 (8 U.S.C. 1522 note) is hereby repealed.
(b) ELEMENTARY AND SECONDARY EDUCATION ACT
OF 1965.—
(1) 
SECTION
1206
OF
ESEA.—Section
1206(a)(1)(A) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6366(a)(1)(A)) is
amended by striking ‘‘an adult basic education pro-
gram’’ and inserting ‘‘adult education and literacy
activities’’.
(2) SECTION 3113 OF ESEA.—Section 3113(1)
of such Act (20 U.S.C. 6813(1)) is amended by
striking ‘‘section 312 of the Adult Education Act;’’
and inserting ‘‘section 303 of the Adult Education
and Family Literacy Act;’’.
(3) SECTION 9161 OF ESEA.—Section 9161(2)
of such Act (20 U.S.C. 7881(2)) is amended by
striking ‘‘section 312(2) of the Adult Education
Act.’’ and inserting ‘‘section 303 of the Adult Edu-
cation and Family Literacy Act.’’.
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TITLE VI—MISCELLANEOUS
PROVISIONS
SEC. 601. REPEALERS.
(a) AMENDMENTS TO THE WAGNER-PEYSER ACT.—
Section 601 of the Job Training Partnership Act is hereby
repealed.
(b) AMENDMENTS TO PART C OF TITLE IV OF THE
SOCIAL SECURITY ACT.—Section 602 of the Job Training
Partnership Act is hereby repealed.
(c) EARNINGS DISREGARD.—Section 603 of the Job
Training Partnership Act is hereby repealed.
(d) SAVINGS PROVISION.—The repeals made by sub-
sections (a), (b), and (c), of any provision of law described
in any such subsection that amended or repealed another
provision of law does not in any way affect that amend-
ment or repeal.
SEC. 602. CONFORMING AMENDMENTS.
(a) ENFORCEMENT OF MILITARY SELECTIVE SERV-
ICE ACT.—Section 604 of the Job Training Partnership
Act (29 U.S.C. 1504) is amended—
(1) by redesignating such section as section 182
of such Act; and
(2) by inserting such section after section 181
of such Act.
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(b) STATE JOB BANK SYSTEMS.—Section 605 of
such Act (29 U.S.C. 1505) is amended—
(1) by striking subsection (a);
(2) in subsection (b), by striking ‘‘shall make
such’’ and inserting ‘‘may make’’;
(3) by redesignating subsections (b) and (c) as
subsections (a) and (b), respectively;
(4) by redesignating such section as section 466
of such Act; and
(5) by adding such section after section 465 of
such Act.
(c) STATE LABOR MARKET INFORMATION PRO-
GRAMS.—Section 125 of such Act (29 U.S.C. 1535) is
amended—
(1) by redesignating such section as section
467; and
(2) by inserting such section after section 466.
TITLE 
VII—AMENDMENTS 
TO
STATE HUMAN RESOURCE IN-
VESTMENT COUNCIL
SEC. 701. AMENDMENTS TO COUNCIL.
(a) ESTABLISHMENT AND FUNCTIONS.—Section 701
of the Job Training Partnership Act (29 U.S.C. 1792) is
amended—
(1) in subsection (a)—
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(A) in paragraph (1)—
(i) by striking ‘‘shall review’’ and in-
serting ‘‘reviews’’; and
(ii) by striking ‘‘advise’’ and inserting
‘‘advises’’;
(B) in paragraph (2), by striking ‘‘shall
advise’’ and inserting ‘‘advises’’;
(C) in paragraph (3), by striking ‘‘shall
carry’’ and inserting ‘‘carries’’;
(D) by striking paragraph (4);
(E) in paragraph (5), by striking ‘‘may
recommend’’ and inserting ‘‘recommends’’;
(F) in paragraph (6), to read as follows:
‘‘(6) prepares and recommends to the Governor
a strategy to be included as part of the State plan
under section 101 that would accomplish the goals
developed pursuant to paragraph (4);’’;
(G) in paragraph (7)—
(i) by striking ‘‘may monitor’’ and in-
serting ‘‘monitors’’; and
(ii) by striking the period at the end
and inserting ‘‘; and’’;
(H) by adding at the end the following:
‘‘(8) may serve as the collaborative process de-
scribed in section 102.’’; and
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(I) 
by 
redesignating 
paragraphs 
(5)
through (8) (as amended or added, as the case
may be) as paragraphs (4) through (7), respec-
tively; and
(2) in subsection (b)—
(A) in paragraph (1)—
(i) in subparagraph (A), by striking
‘‘(A) Except as provided in subparagraph
(B), for purposes’’ and inserting ‘‘For pur-
poses’’; and
(ii) by striking subparagraph (B); and
(B) in paragraph (2)—
(i) by striking ‘‘applicable Federal
human resource programs’’ and all that
follows through ‘‘may include’’ and insert-
ing ‘‘applicable Federal human resource
programs may include’’;
(ii) in clause (v), by striking the
‘‘and’’ at the end;
(iii) in clause (vii)—
(I) by adding at the end before
the semicolon the following: ‘‘and title
I of the Personal Responsibility and
Work Opportunity Reconciliation Act
of 1996’’; and
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(II) by redesignating such clause
as clause (vi);
(iv) in subparagraph (B)—
(I) by striking ‘‘may not include
programs authorized under’’; and
(II) by redesignating such sub-
paragraph as clause (vii); and
(v) 
by 
redesignating 
clauses 
(i)
through 
(vii) 
as 
subparagraphs 
(A)
through (G), respectively, and moving the
margin for each such subparagraph two
ems to the left.
(b) COMPOSITION.—Section 702 of such Act (29
U.S.C. 1792a) is amended—
(1) by striking subsections (a), (b), and (c); and
(2) by inserting the following:
‘‘Each State Council shall be composed of the individ-
uals and entities described in section 102(a).’’.
(c) ADMINISTRATION.—Section 703 of such Act (29
U.S.C. 1792b) is amended—
(1) in subsection (a)(2)—
(A) by inserting ‘‘for State administrative
expenses’’ after ‘‘funds otherwise available’’;
and
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(B) by striking ‘‘, including funds avail-
able’’ and all that follows through ‘‘such Act’’;
(2) by striking subsection (c); and
(3) by redesignating subsection (d) as sub-
section (c).
SEC. 702. TRANSFER OF COUNCIL.
Title VII of the Job Training Partnership Act (29
U.S.C. 1792 et seq.), as amended by section 701, is trans-
ferred to the end of part A of title I of such Act, as amend-
ed by section 111 of this Act.
SEC. 703. CONFORMING AMENDMENTS.
(a) IN GENERAL.—Title VII of the Job Training
Partnership Act (29 U.S.C. 1792 et seq.), as transferred
to the end of part A of title I of such Act by section 702,
is amended—
(1) by amending the title heading to read as
follows:
‘‘SEC. 103. STATE HUMAN RESOURCE INVESTMENT COUN-
CIL.’’;
(2) by redesignating sections 701 through 703
as subsections (a) through (c), respectively, of sec-
tion 103 (as redesignated by paragraph (1)) and
conforming the subsection headings and margins ac-
cordingly;
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‘‘Sec. 142. Benefits.
‘‘Sec. 143. Labor standards.
‘‘Sec. 144. Grievance procedure.
‘‘Sec. 145. Prohibition against Federal control of education.
‘‘Sec. 146. Identification of additional imposed requirements.
‘‘Sec. 147. Authority of State legislature.
‘‘Sec. 148. Interstate agreements.
‘‘SUBPART 2—PERFORMANCE ACCOUNTABILITY PROVISIONS
‘‘Sec. 151. Performance accountability system.
‘‘Sec. 152. Indicators of performance.
‘‘Sec. 153. State adjusted benchmarks.
‘‘Sec. 154. Core indicators of performance.
‘‘Sec. 155. Report on performance.
‘‘Sec. 156. Incentive grants and sanctions.
‘‘SUBPART 3—OTHER PROVISIONS
‘‘Sec. 161. Program year.
‘‘Sec. 162. Prompt allocation of funds.
‘‘Sec. 163. Monitoring.
‘‘Sec. 164. Fiscal controls; sanctions.
‘‘Sec. 165. Reports; recordkeeping; investigations.
‘‘Sec. 166. Administrative Adjudication.
‘‘Sec. 167. Nondiscrimination.
‘‘Sec. 168. Administrative provisions.
‘‘Sec. 169. Utilization of services and facilities.
‘‘Sec. 170. Obligational authority.
‘‘Sec. 171. Limitation on certain costs.
‘‘Sec. 172. Buy-American requirements.
‘‘PART D—MISCELLANEOUS PROVISIONS
‘‘Sec. 181. Reference.
‘‘Sec. 182. Enforcement of Military Selective Service Act.
‘‘TITLE II—DISADVANTAGED YOUTH EMPLOYMENT AND
TRAINING OPPORTUNITIES GRANTS
‘‘Sec. 201. Statement of purpose.
‘‘Sec. 202. Authorization.
‘‘Sec. 203. Allotment and allocation among States.
‘‘Sec. 204. Allocation within States.
‘‘Sec. 205. Eligibility for services.
‘‘Sec. 206. Use of funds.
‘‘Sec. 207. Selection of service providers.
‘‘Sec. 208. Linkages.
‘‘TITLE III—ADULT EMPLOYMENT AND TRAINING
OPPORTUNITIES GRANTS
‘‘Sec. 301. Purpose.
‘‘PART A—ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS
‘‘Sec. 311. Authorization.
‘‘Sec. 312. Allotment among States.
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process, including the selection of providers of vocational
rehabilitation services.
‘‘(b) USE
OF FUNDS.—An entity that receives a
grant under this section shall use the grant only—
‘‘(1) for activities that are directly related to
planning, operating, and evaluating the demonstra-
tion projects; and
‘‘(2) to supplement, and not supplant, funds
made available from Federal and non-Federal
sources for such projects.
‘‘(c) APPLICATION.—Any eligible entity that desires
to receive a grant under this section shall submit an appli-
cation at such time, in such manner, and containing such
information and assurances as the Commissioner may re-
quire, including—
‘‘(1) a description of—
‘‘(A) how the applicant intends to promote
increased client choice in the rehabilitation
process, including a description, if appropriate,
of how an applicant will determine the cost of
any service or product offered to an eligible cli-
ent;
‘‘(B) how the applicant intends to ensure
that any vocational rehabilitation service or re-
lated service is provided by a qualified provider