‘‘(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, dislocated workers, 
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 Workforce Investment Improvement Act of 
2011. 
‘‘(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, dis-
located workers, and statewide workforce investment 
activities— 
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‘‘(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 2013.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the amount referred to in paragraph 
(2)(A) shall be allotted for fiscal year 2013 
on the basis of allotment percentage of 
each State under section 6 of the Wagner- 
Peyser Act for fiscal year 2012. 
‘‘(ii) 
EXCESS
AMOUNTS.—If 
the 
amount referred to in paragraph (2)(A) for 
fiscal year 2013 exceeds the amount that 
was available for allotment to the States 
under the Wagner-Peyser Act for fiscal 
year 2012, 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. 
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‘‘(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 2012. 
‘‘(B) FISCAL
YEARS
2014
AND
THERE-
AFTER.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), the amount referred to in paragraph 
(2)(A) shall be allotted for fiscal year 2014 
and each fiscal year thereafter on the basis 
of the allotment percentage of each State 
under this paragraph for the preceding fis-
cal year. 
‘‘(ii) 
EXCESS
AMOUNTS.—If 
the 
amount referred to in paragraph (2)(A) for 
fiscal year 2014 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 
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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) 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-
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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). 
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‘‘(D) DEFINITIONS.—For the purposes of 
this paragraph: 
‘‘(i) ALLOTMENT PERCENTAGE.—The 
term ‘allotment percentage’, used with re-
spect to fiscal year 2013 or a subsequent 
fiscal year, means a percentage of the 
amounts described in paragraph (2)(B) 
that is received through an allotment made 
under this paragraph for the fiscal year. 
The term, with respect to fiscal year 2012, 
means the percentage of the amounts allot-
ted to States under this chapter (as in ef-
fect on the day before the date of enact-
ment of the Workforce Investment Im-
provement Act of 2011) and under reem-
ployment service grants received by the 
State involved for fiscal year 2012. 
‘‘(ii) DISADVANTAGED
ADULT.—The 
term ‘disadvantaged adult’ means an indi-
vidual who is age 22 through 72 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. 
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‘‘(iii) EXCESS
NUMBER.—The term 
‘excess number’ means, used with respect 
to the excess number of unemployed indi-
viduals within a State, the number that 
represents the number of unemployed indi-
viduals in excess of 41⁄2 percent of the ci-
vilian labor force in the State. 
‘‘(5) ADJUSTMENTS IN ALLOTMENTS BASED ON 
DIFFERENCES
WITH
UNCONSOLIDATED
FOR-
MULAS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
ensure that for any fiscal year no State has an 
allotment difference, as defined in subpara-
graph (C), that is less than zero. The Secretary 
shall adjust the amounts allotted to the States 
under this subsection in accordance with sub-
paragraph (B) if necessary to carry out this 
subparagraph. 
‘‘(B) ADJUSTMENTS IN ALLOTMENTS.— 
‘‘(i) REDISTRIBUTION
OF
EXCESS 
AMOUNTS.— 
‘‘(I) IN GENERAL.—If necessary 
to carry out subparagraph (A), the 
Secretary shall reduce the amounts 
that would be allotted under para-
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graphs (3) and (4) to States that have 
an excess allotment difference, as de-
fined in subclause (II), by the amount 
of such excess, and use such amounts 
to increase the allotments to States 
that have an allotment difference less 
than zero. 
‘‘(II) EXCESS
AMOUNTS.—For 
purposes of subclause (I), the term 
‘excess’ allotment difference means an 
allotment difference for a State that 
is— 
‘‘(aa) in excess of 3 percent 
of the amount described in sub-
paragraph (C)(i)(II); or 
‘‘(bb) in excess of a percent-
age established by the Secretary 
that is greater than 3 percent of 
the amount described in subpara-
graph (C)(i)(II) if the Secretary 
determines that such greater per-
centage is sufficient to carry out 
subparagraph (A). 
‘‘(ii) USE
OF
AMOUNTS
AVAILABLE 
UNDER NATIONAL RESERVE ACCOUNT.—If 
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the funds available under clause (i) are in-
sufficient to carry out subparagraph (A), 
the Secretary shall use funds reserved 
under section 132(a) in such amounts as 
are necessary to increase the allotments to 
States to meet the requirements of sub-
paragraph (A). Such funds shall be used in 
the same manner as the States use the 
other funds allotted under this subsection. 
‘‘(C) DEFINITION
OF
ALLOTMENT
DIF-
FERENCE.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph, the term ‘allotment dif-
ference’ means the difference between— 
‘‘(I) the total amount a State 
would receive of the amounts available 
for allotment under subsection (b)(2) 
for a fiscal year pursuant to para-
graphs (3) and (4); and 
‘‘(II) the total amount the State 
would receive of the amounts available 
for allotment under subsection (b)(2) 
for the fiscal year if such amounts 
were allotted pursuant to the uncon-
solidated formulas (applied as de-
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scribed in clause (iii)) that were used 
in allotting funds for fiscal year 2012. 
‘‘(ii) UNCONSOLIDATED FORMULAS.— 
For purposes of clause (i), the unconsoli-
dated formulas are: 
‘‘(I) The requirements for the al-
lotment of funds to the States con-
tained in section 132(b)(1)(B) of this 
Act (as in effect on the day before the 
date of enactment of the Workforce 
Investment Improvement Act of 2011) 
that were applicable to the allotment 
of funds under such section for fiscal 
year 2012. 
‘‘(II) The requirements for the 
allotment of funds to the States con-
tained in section 132(b)(2)(B) of this 
Act (as in effect on the day before the 
date of enactment of the Workforce 
Investment Improvement Act of 2011) 
that were applicable to the allotment 
of funds under such section for fiscal 
year 2012. 
‘‘(III) The requirements for the 
allotment of funds to the States that 
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were contained in section 6 of the 
Wagner-Peyser Act (as in effect on 
the day before the date of enactment 
of the Workforce Investment Improve-
ment Act of 2011) that were applica-
ble to the allotment of funds under 
such Act for fiscal year 2012. 
‘‘(IV) The requirements for the 
allotment of funds to the States that 
were established by the Secretary for 
Reemployment Services Grants that 
were applicable to the allotment of 
funds for such grants for fiscal year 
2012. 
‘‘(iii) PROPORTIONATE
APPLICATION 
OF
UNCONSOLIDATED
FORMULAS
BASED 
ON FISCAL YEAR 2012.—In calculating the 
amount under clause (i)(II), each of the 
unconsolidated 
formulas 
identified 
in 
clause (ii) shall be applied, respectively, 
only to the proportionate share of the total 
amount of funds available for allotment 
under subsection (b)(2) for a fiscal year 
that is equal to the proportionate share to 
which each of the unconsolidated formulas 
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srobinson on DSK4SPTVN1PROD with BILLS
applied with respect to the total amount of 
funds allotted to the States under all of 
the unconsolidated formulas in fiscal year 
2012. 
‘‘(iv) RULE OF CONSTRUCTION.—The 
amounts used to adjust the allotments to a 
State under subparagraph (B) for a fiscal 
year shall not be included in the calcula-
tion of the amounts under clause (i) for a 
subsequent fiscal year, including the cal-
culation of allocation percentages for a 
preceding fiscal year applicable to para-
graphs (3) and (4) and to the unconsoli-
dated formulas described in clause (ii).’’; 
and 
(3) in subsection (c)— 
(A) 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-
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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.’’; 
(B) in paragraph (3)— 
(i) by striking ‘‘for the prior program 
year’’ and inserting ‘‘for the program year 
in which the determination is made’’; and 
(ii) by striking ‘‘such prior program 
year’’ and inserting ‘‘such program year’’; 
(C) by amending paragraph (4) to read as 
follows: 
‘‘(4) ELIGIBILITY.—For purposes of this sub-
section, an eligible State means a State that 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 
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(D) in paragraph (5), by striking ‘‘obliga-
tion’’ and inserting ‘‘accrued expenditure’’. 
(d) WITHIN STATE ALLOCATIONS.—Section 133 (29 
U.S.C. 2863) is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) RESERVATION FOR STATEWIDE ACTIVITIES.— 
The Governor of a State may reserve up to 40 percent 
of the total amount allotted to the State under section 132 
for a fiscal year to carry out the statewide activities de-
scribed in section 134(a).’’; 
(2) by amending subsection (b) to read as fol-
lows: 
‘‘(b) ALLOCATIONS TO LOCAL AREAS.— 
‘‘(1) IN GENERAL.—Of the amounts allotted to 
the State under section 132(b)(2) and not reserved 
under subsection (a)— 
‘‘(A) 85 percent of such amounts shall be 
allocated by the Governor to local areas in ac-
cordance with paragraph (2); and 
‘‘(B) 15 percent of such amounts shall be 
allocated by the Governor to local areas in ac-
cordance with paragraph (3). 
‘‘(2) ESTABLISHED FORMULA.— 
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‘‘(A) IN GENERAL.—Of the amounts de-
scribed in paragraph (1)(A), the Governor shall 
allocate— 
‘‘(i) 60 percent on the basis of the rel-
ative number of unemployed individuals in 
each local area, compared to the total 
number of unemployed individuals in all 
local areas in the State; 
‘‘(ii) 25 percent on the basis of the 
relative excess number of unemployed indi-
viduals in each local area, compared to the 
total excess number of unemployed individ-
uals in all local areas in the State; and 
‘‘(iii) 15 percent shall be allotted on 
the basis of the relative number of dis-
advantaged adults in each local area, com-
pared to the total number of disadvantaged 
adults 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. 
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100 
‘‘(C) DEFINITIONS.— 
‘‘(i) ALLOCATION PERCENTAGE.—The 
term ‘allocation percentage’, used with re-
spect to fiscal year 2013 or a subsequent 
fiscal year, means a percentage of the 
amount described 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 2012, 
means the percentage of the amounts allo-
cated to local areas under this chapter (as 
in effect on the day before the date of en-
actment of the Workforce Investment Im-
provement Act of 2011) that is received by 
the local area involved for fiscal year 2012. 
‘‘(ii) DISADVANTAGED
ADULT.—The 
term ‘disadvantaged adult’ means an indi-
vidual who is age 22 through 72 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. 
‘‘(iii) EXCESS
NUMBER.—The term 
‘excess number’ means, used with respect 
to the excess number of unemployed indi-
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101 
viduals within a local area, the number 
that represents the number of unemployed 
individuals in excess of 4.5 percent of the 
civilian labor force in the local area. 
‘‘(3) DISCRETIONARY ALLOCATION.—The Gov-
ernor shall allocate to local areas the amounts de-
scribed in paragraph (1)(B) based on a formula de-
veloped in consultation with the State board and 
local boards. Such formula shall be objective and 
geographically equitable and may include such demo-
graphic 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 128(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 4. 
‘‘(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 
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102 
activities described in this chapter or chapter 4, 
regardless of whether the funds were allocated 
under this subsection or section 128(b).’’; 
(3) in subsection (c)— 
(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 
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103 
‘‘(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.’’. 
(e) USE OF FUNDS FOR EMPLOYMENT AND TRAIN-
ING ACTIVITIES.— 
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104 
(1) STATEWIDE EMPLOYMENT AND TRAINING 
ACTIVITIES.—Section 134(a) (29 U.S.C. 2864(a)) is 
amended to read as follows: 
‘‘(1) IN GENERAL.— 
‘‘(A) REQUIRED USE OF FUNDS.—Not less 
than 60 percent of the funds reserved by a Gov-
ernor under section 133(a) shall be used to sup-
port one-stop delivery systems and the provision 
of work ready services, and, in addition, may be 
used to support the provision of discretionary 
one-step delivery services, in local areas, con-
sistent with the local plan, through one-stop de-
livery systems by distributing funds to local 
areas in accordance with subparagraph (B). 
Such funds may be used by States to employ 
State personnel to provide such services in des-
ignated local areas in consultation with local 
boards. 
‘‘(B) 
METHOD
OF
DISTRIBUTING 
FUNDS.—The method of distributing funds 
under this paragraph shall be developed in con-
sultation with the State board and local boards. 
Such method of distribution, which may include 
the 
formula 
established 
under 
section 
121(h)(3), shall be objective and geographically 
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105 
equitable, and may include 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. 
‘‘(C) OTHER USE OF FUNDS.—Funds re-
served by a Governor for a State— 
‘‘(i) under section 133(a) and not 
used under subparagraph (A), may be used 
for statewide activities described in para-
graph (2); and 
‘‘(ii) under section 133(a) and not 
used under subparagraph (A), and under 
section 128(a) may be used to carry out 
any of the statewide employment and 
training activities described in paragraph 
(3). 
‘‘(2) STATEWIDE
RAPID
RESPONSE
ACTIVI-
TIES.—A State shall carry out statewide rapid re-
sponse activities using funds reserved as described in 
section 133(a). Such activities shall include— 
‘‘(A) provision of rapid response activities, 
carried out in local areas by the State or by an 
entity designated by the State, working in con-
junction with the local boards and the chief 
elected officials in the local areas; and 
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106 
‘‘(B) provision of additional assistance to 
local areas that experience disasters, mass lay-
offs or plant closings, or other events that pre-
cipitate substantial increases in the number of 
unemployed individuals, carried out in local 
areas by the State, working in conjunction with 
the local boards and the chief elected officials in 
the local areas. 
‘‘(3) STATEWIDE ACTIVITIES.—Funds reserved 
by a Governor for a State as described in sections 
133(a) and 128(a) may be used for statewide activi-
ties including— 
‘‘(A) supporting the provision of work 
ready services described in section 134(c)(2) in 
the one-stop delivery system; 
‘‘(B) implementing innovative programs 
and strategies designed to meet the needs of all 
businesses in the State, including small busi-
nesses, which may include incumbent worker 
training programs, sectoral and industry cluster 
strategies and partnerships, including regional 
skills alliances, sectoral skills partnerships (in 
which representatives of multiple employers for 
a specific industry sector or group of related oc-
cupations, economic development agencies, pro-
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srobinson on DSK4SPTVN1PROD with BILLS
107 
viders of training services described in sub-
section (c)(4), labor federations, and other enti-
ties that can provide needed supportive services 
tailored to the needs of workers in that sector 
or group, for a local area or region, identify 
gaps between the current and expected demand 
and supply of labor and skills in that sector or 
group for that area or region and develop a 
strategic skills gap action plan), career ladder 
programs, micro-enterprise and entrepreneurial 
training and support programs, utilization of ef-
fective business intermediaries, activities to im-
prove linkages between the one-stop delivery 
system in the State and all employers (includ-
ing small employers) in the State, and other 
business services and strategies that better en-
gage employers in workforce investment activi-
ties and make the workforce investment system 
more relevant to the needs of State and local 
businesses, consistent with the objectives of this 
title; 
‘‘(C) conducting evaluations under section 
136(e) of activities authorized under this chap-
ter and chapter 4 in coordination with evalua-
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108 
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); 
‘‘(G) carrying out monitoring and over-
sight of activities carried out under this chapter 
and chapter 4; 
‘‘(H) implementing innovative programs, 
such as incumbent worker training programs, 
programs and strategies designed to meet the 
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srobinson on DSK4SPTVN1PROD with BILLS
109 
needs of businesses in the State, including small 
businesses, and engage employers in workforce 
activities, and programs serving individuals 
with disabilities consistent with section 188; 
‘‘(I) developing strategies for effectively 
serving hard-to-serve populations and for inte-
grating programs and services among one-stop 
partners; and 
‘‘(J) carrying out activities to facilitate re-
mote access to services provided through a one- 
stop delivery system, including facilitating ac-
cess through the use of technology. 
‘‘(4) LIMITATION.—Not more than 5 percent of 
the funds allotted under section 132(b) shall be used 
by the State for administrative activities carried out 
under this subsection and section 128(a).’’. 
(2) LOCAL
EMPLOYMENT
AND
TRAINING
AC-
TIVITIES.—Section 134(b) (29 U.S.C. 2864(b)) is 
amended— 
(A) by striking ‘‘under paragraph (2)(A)’’ 
and 
all 
that 
follows 
through 
‘‘section 
133(b)(2)(B)’’ and inserting ‘‘under section 
133(b)’’; and 
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110 
(B) in paragraphs (1) and (2), by striking 
‘‘or dislocated workers, respectively’’ and insert-
ing ‘‘and dislocated workers’’. 
(3) CONFORMING
AMENDMENT.—Section 134 
(29 U.S.C. 2864) is further amended— 
(A) by striking subsection (c); and 
(B) by redesignating subsections (d) and 
(e) as subsections (c) and (d), respectively. 
(4) 
REQUIRED
LOCAL
EMPLOYMENT
AND 
TRAINING ACTIVITIES.— 
(A) 
ALLOCATED
FUNDS.—Section 
134(c)(1) (29 U.S.C. 2864(c)(1)) (as so redes-
ignated) is amended to read as follows: 
‘‘(1) IN GENERAL.—Funds allocated to a local 
area for adults under section 133(b) shall be used— 
‘‘(A) to establish a one-stop delivery sys-
tem as described in section 121(e); 
‘‘(B) to provide the work ready services de-
scribed in paragraph (2) through the one-stop 
delivery system in accordance with such para-
graph; 
‘‘(C) to provide training services described 
in paragraph (4) to adults described in such 
paragraph; and 
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111 
‘‘(D) to designate a dedicated business liai-
son in the local area who may be funded with 
funds provided under this title or from other 
sources to establish and develop relationships 
and networks with large and small employers 
and their intermediaries.’’. 
(B) WORK
READY
SERVICES.—Section 
134(c)(2) (29 U.S.C. 2864(c)(2)) (as so redes-
ignated) is amended— 
(i) in the heading, by striking ‘‘CORE 
SERVICES’’ and inserting ‘‘WORK
READY 
SERVICES’’; 
(ii) by striking ‘‘core services’’ and in-
serting ‘‘work ready services’’; 
(iii) by striking ‘‘who are adults or 
dislocated workers’’; 
(iv) in subparagraph (A), by inserting 
‘‘and assistance in obtaining eligibility de-
terminations under the other one-stop 
partner programs through such activities 
as assisting in the submission of applica-
tions, the provision of information on the 
results of such applications, the provision 
of intake services and information, and, 
where appropriate and consistent with the 
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112 
authorizing statute of the one-stop partner 
program, determinations of eligibility’’ 
after ‘‘subtitle’’; 
(v) by amending subparagraph (D) to 
read as follows: 
‘‘(D) labor exchange services, including— 
‘‘(i) job search and placement assist-
ance, and where appropriate career coun-
seling; 
‘‘(ii) appropriate recruitment services 
for employers, including small employers, 
in the local area, which may include serv-
ices described in this subsection, including 
information and referral to specialized 
business services not traditionally offered 
through the one-stop delivery system; and 
‘‘(iii) reemployment services provided 
to 
unemployment 
claimants, 
including 
claimants identified as in need of such 
services under the worker profiling system 
established under section 303(j) of the So-
cial Security Act (42 U.S.C. 503(j);’’; 
(vi) in subparagraph (E), by striking 
‘‘employment 
statistics’’ 
and 
inserting 
‘‘workforce and labor market information’’; 
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113 
(vii) in subparagraph (I), by inserting 
‘‘and the administration of the work test 
for the unemployment compensation sys-
tem’’ after ‘‘compensation’’; 
(viii) by amending subparagraph (J) 
to read as follows: 
‘‘(J) assistance in establishing eligibility 
for programs of financial aid assistance for 
training and education programs that are not 
funded under this Act and are available in the 
local area; and’’; and 
(ix) by redesignating subparagraph 
(K) as subparagraph (V); and 
(x) by inserting the following new sub-
paragraphs after subparagraph (J): 
‘‘(K) the provision of information from of-
ficial publications of the Internal Revenue Serv-
ice, regarding Federal tax credits available to 
individuals relating to education, job training 
and employment, including the Hope Scholar-
ship Credit and the Lifetime Learning Credit 
(26 U.S.C. 25A), and the Earned Income Tax 
Credit (26 U.S.C. 32); 
‘‘(L) services relating to the Work Oppor-
tunity Tax Credit (26 U.S.C. 51); 
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114 
‘‘(M) comprehensive and specialized assess-
ments of the skill levels and service needs of 
adults and dislocated workers, which may in-
clude— 
‘‘(i) diagnostic testing and use of 
other assessment tools; and 
‘‘(ii) in-depth interviewing and evalua-
tion to identify employment barriers and 
appropriate employment goals; 
‘‘(N) development of an individual employ-
ment plan, to identify the employment goals, 
appropriate achievement objectives, and appro-
priate combination of services for the participa-
tion to achieve the employment goals; 
‘‘(O) group counseling; 
‘‘(P) individual counseling and career plan-
ning; 
‘‘(Q) case management; 
‘‘(R) short-term pre-vocational services, in-
cluding development of learning skills, commu-
nications skills, interviewing skills, punctuality, 
personal maintenance skills, and professional 
conduct, to prepare individuals for unsubsidized 
employment or training; 
‘‘(S) internships and work experience; 
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srobinson on DSK4SPTVN1PROD with BILLS
115 
‘‘(T) literacy activities relating to basic 
work readiness, information and communication 
technology literacy activities, and financial lit-
eracy activities, if such activities are not avail-
able to participants in the local area under pro-
grams administered under the Adult Education 
and Family Literacy Act (20 U.S.C. 2901 et 
seq.); 
‘‘(U) out-of-area job search assistance and 
relocation assistance; and’’. 
(C) DELIVERY
OF
SERVICES.—Section 
134(c)(3) (29 U.S.C. 2864(c)(3)) (as so redes-
ignated) is amended to read as follows: 
‘‘(3) DELIVERY OF SERVICES.—The work ready 
services described in section 132(c)(2) shall be pro-
vided through the one-stop delivery system and may 
be provided through contracts with public, private 
for-profit, and private nonprofit service providers, 
approved by the local board.’’. 
(D) 
TRAINING
SERVICES.—Section 
134(c)(4) (29 U.S.C. 2864(c)(4)) (as so redes-
ignated) is amended— 
(i) by amending subparagraph (A) to 
read as follows: 
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116 
‘‘(A) IN GENERAL.—Funds allocated to a 
local area under section 133(b) shall be used to 
provide training services to adults who— 
‘‘(i) after an interview, evaluation, or 
assessment, and case management, have 
been determined by a one-stop operator or 
one-stop partner, as appropriate, to— 
‘‘(I) be in need of training serv-
ices to obtain or retain suitable em-
ployment; and 
‘‘(II) have the skills and quali-
fications to successfully participate in 
the selected program of training serv-
ices; 
‘‘(ii) select programs of training serv-
ices that are directly linked to the employ-
ment opportunities in the local area in-
volved or in another area in which the 
adults receiving such services are willing to 
commute or relocate; 
‘‘(iii) who meet the requirements of 
subparagraph (B); and 
‘‘(iv) who are determined eligible in 
accordance with the priority system in ef-
fect under subparagraph (E).’’; 
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117 
(ii) in subparagraph (B)(i), by strik-
ing ‘‘Except’’ and inserting ‘‘Notwith-
standing section 479B of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087uu) 
and except’’; 
(iii) by amending subparagraph (D) to 
read as follows: 
‘‘(D) TRAINING SERVICES.—Training serv-
ices authorized under this paragraph may in-
clude— 
‘‘(i) occupational skills training; 
‘‘(ii) on-the-job training; 
‘‘(iii) skill upgrading and retraining; 
‘‘(iv) entrepreneurial training; 
‘‘(v) education activities leading to a 
high school diploma or its equivalent, in-
cluding a General Educational Develop-
ment credential, in combination with, con-
currently or subsequently, occupational 
skills training; 
‘‘(vi) adult education and literacy ac-
tivities provided in conjunction with other 
training authorized under this subpara-
graph; 
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118 
‘‘(vii) workplace training combined 
with related instruction; and 
‘‘(viii) occupational skills training that 
incorporates English language acquisi-
tion.’’; 
(iv) by amending subparagraph (E) to 
read as follows: 
‘‘(E) PRIORITY.— 
‘‘(i) IN GENERAL.—A priority shall be 
given to unemployed individuals and em-
ployed workers who need training services 
to retain employment or to advance in a 
career for the provision of work ready and 
training services under this subsection. 
‘‘(ii) DETERMINATIONS.—The Gov-
ernor and the appropriate local board shall 
direct the one-stop operators in the local 
area with regard to making determinations 
with respect to the priority of service under 
this subparagraph.’’; 
(v) in subparagraph (F)— 
(I) in clause (ii)— 
(aa) in the matter preceding 
clause (I), by striking ‘‘sub-
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srobinson on DSK4SPTVN1PROD with BILLS
119 
section (c)’’ and inserting ‘‘sec-
tion 121’’; and 
(bb) in clause (II), by strik-
ing ‘‘subsections (e) and (h)’’ and 
inserting ‘‘subsection (i)’’; and 
(II) by striking clause (iii) and 
inserting the following: 
‘‘(iii) CAREER
ENHANCEMENT
AC-
COUNTS.—An individual who seeks train-
ing services and who is eligible pursuant to 
subparagraph (A), may, in consultation 
with a case manager, select an eligible pro-
vider of training services from the list or 
identifying information for providers de-
scribed in clause (ii)(I). Upon such selec-
tion, the one-stop operator involved shall, 
to the extent practicable, refer such indi-
vidual to the eligible provider of training 
services, and arrange for payment for such 
services through a career enhancement ac-
count. 
‘‘(iv) 
COORDINATION.—Each 
local 
board may, through one-stop centers, co-
ordinate career enhancement accounts with 
other Federal, State, local, or private job 
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120 
training programs or sources to assist the 
individual in obtaining training services. 
‘‘(v) ENHANCED
CAREER
ENHANCE-
MENT ACCOUNTS.—Each local board may, 
through one-stop centers, assist individuals 
receiving career enhancement accounts 
through the establishment of such accounts 
that include, in addition to the funds pro-
vided under this paragraph, funds from 
other programs and sources that will assist 
the individual in obtaining training serv-
ices.’’; and 
(vi) in subparagraph (G)— 
(I) in the subparagraph heading, 
by striking ‘‘INDIVIDUAL
TRAINING 
ACCOUNTS’’ and inserting ‘‘CAREER 
ENHANCEMENT ACCOUNTS’’; 
(II) in clause (i) by striking ‘‘in-
dividual training accounts’’ and in-
serting 
‘‘career 
enhancement 
ac-
counts’’; 
(III) in clause (ii)— 
(aa) by striking ‘‘an indi-
vidual training account’’ and in-
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121 
serting ‘‘a career enhancement 
account’’; 
(bb) in subclause (II), by 
striking ‘‘individual training ac-
counts’’ and inserting ‘‘career en-
hancement accounts’’; 
(cc) in subclause (II) by 
striking ‘‘or’’ after the semicolon; 
(dd) in subclause (III) by 
striking the period and inserting 
‘‘; or’’; and 
(ee) by adding at the end of 
the following: 
‘‘(IV) the local board determines 
that it would be most appropriate to 
award a contract to an institution of 
higher education in order to facilitate 
the training of multiple individuals in 
high-demand occupations, if such con-
tract does not limit customer choice.’’. 
(IV) in clause (iv)— 
(aa) by redesignating sub-
clause (IV) as subclause (V) and 
inserting after subclause (III) the 
following: 
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122 
‘‘(IV) Individuals with disabil-
ities.’’. 
(5) PERMISSIBLE ACTIVITIES.—Section 134(d) 
(as so redesignated) (29 U.S.C. 2864(d)) is amend-
ed— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) DISCRETIONARY ONE-STOP DELIVERY AC-
TIVITIES.— 
‘‘(A) IN GENERAL.—Funds allocated to a 
local area under section 133(b) may be used to 
provide, through the one-stop delivery system— 
‘‘(i) customized screening and referral 
of qualified participants in training serv-
ices to employers; 
‘‘(ii) customized employment-related 
services to employers on a fee-for-service 
basis; 
‘‘(iii) customer support to navigate 
among multiple services and activities for 
special participant populations that face 
multiple barriers to employment, including 
individuals with disabilities; 
‘‘(iv) employment and training assist-
ance provided in coordination with child 
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123 
support enforcement activities of the State 
agency carrying out subtitle D of title IV 
of the Social Security Act (42 U.S.C. 651 
et seq.); 
‘‘(v) activities to improve services to 
local employers, including small employers 
in the local area, and increase linkages be-
tween the local workforce investment sys-
tem and employers; 
‘‘(vi) activities to facilitate remote ac-
cess to services provided through a one- 
stop delivery system, including facilitating 
access through the use of technology; and 
‘‘(vii) activities to carry out business 
services and strategies that meet the work-
force investment needs of local area em-
ployers, as determined by the local board, 
consistent with the local plan under section 
118, which services— 
‘‘(I) may be provided through ef-
fective business intermediaries work-
ing in conjunction with the local 
board, and may also be provided on a 
fee-for-service basis or through the 
leveraging of economic development 
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124 
and other resources as determined ap-
propriate by the local board; and 
‘‘(II) may include— 
‘‘(aa) identifying and dis-
seminating 
to 
business, 
edu-
cators, and job seekers, informa-
tion related to the workforce, eco-
nomic and community develop-
ment needs, and opportunities of 
the local economy; 
‘‘(bb) development and deliv-
ery of innovative workforce in-
vestment services and strategies 
for area businesses, which may 
include sectoral, industry cluster, 
regional skills alliances, career 
ladder, skills upgrading, skill 
standard development and certifi-
cation, apprenticeship, and other 
effective initiatives for meeting 
the workforce investment needs 
of area employers and workers; 
‘‘(cc) participation in semi-
nars and classes offered in part-
nership with relevant organiza-
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125 
tions focusing on the workforce- 
related needs of area employers 
and job seekers; 
‘‘(dd) training consulting, 
needs analysis, and brokering 
services for area businesses, in-
cluding the organization and ag-
gregation of training (which may 
be paid for with funds other than 
those provided under this title), 
for individual employers and coa-
litions of employers with similar 
interests, products, or workforce 
needs; 
‘‘(ee) assistance to area em-
ployers in the aversion of layoffs 
and in managing reductions in 
force in coordination with rapid 
response activities; 
‘‘(ff) the marketing of busi-
ness services offered under this 
title, to appropriate area employ-
ers, including small and mid- 
sized employers; 
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126 
‘‘(gg) information referral 
on concerns affecting local em-
ployers; and 
‘‘(hh) other business services 
and strategies designed to better 
engage employers in workforce 
investment activities and to make 
the workforce investment system 
more relevant to the workforce 
investment needs of area busi-
nesses, as determined by the local 
board to be consistent with the 
objectives of this title. 
‘‘(B) WORK
SUPPORT
ACTIVITIES
FOR 
LOW-WAGE WORKERS.— 
‘‘(i) IN GENERAL.—Funds allocated to 
a local area under 133(b) may be used to 
provide, through the one-stop delivery sys-
tem and in collaboration with the appro-
priate programs and resources of the one- 
stop partners, work support activities de-
signed to assist low-wage workers in re-
taining and enhancing employment. The 
one stop partners shall coordinate the ap-
propriate programs and resources of the 
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127 
partners with the activities and resources 
provided under this subparagraph. 
‘‘(ii) ACTIVITIES.—The activities de-
scribed in clause (i) may include assistance 
in accessing financial supports for which 
such workers may be eligible and the provi-
sion of activities available through the one- 
stop delivery system in a manner that en-
hances the opportunities of such workers 
to participate, such as the provision of em-
ployment and training activities during 
nontraditional hours and the provision of 
on-site child care while such activities are 
being provided.’’; 
(B) in subparagraph 3(A), by striking 
‘‘Funds allocated’’ and all that follows through 
‘‘section 133(b)(2)(B)’’ and insert ‘‘Funds allo-
cated to a local area under section 133(b)’’; and 
(C) by adding at the end the following: 
‘‘(4) INCUMBENT
WORKER
TRAINING
PRO-
GRAMS.— 
‘‘(A) IN GENERAL.—The local board may 
use up to 10 percent of the funds allocated to 
a local area under section 133(b) to carry out 
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128 
incumbent worker training programs in accord-
ance with this paragraph. 
‘‘(B) TRAINING ACTIVITIES.—The training 
programs for incumbent workers under this 
paragraph shall be carried out by the local area 
in conjunction with the employers of such work-
ers for the purpose of assisting such workers in 
obtaining the skills necessary to retain employ-
ment and avert layoffs. 
‘‘(C) EMPLOYER MATCH REQUIRED.— 
‘‘(i) IN GENERAL.—Employers partici-
pating in programs under this paragraph 
shall be required to pay a proportion of the 
costs of providing the training to the in-
cumbent workers of the employers. The 
State board, in consultation with the local 
board as appropriate, shall establish the 
required portion of such costs, which may 
include in-kind contributions. The required 
portion shall not be less than— 
‘‘(I) 10 percent of the costs, for 
employers with 50 or fewer employees; 
‘‘(II) 25 percent of the costs, for 
employers with more than 50 employ-
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srobinson on DSK4SPTVN1PROD with BILLS
129 
ees but fewer than 100 employees; 
and 
‘‘(III) 50 percent of the costs, for 
employers with 100 or more employ-
ees. 
‘‘(ii) CALCULATION OF MATCH.—The 
wages paid by an employer to a worker 
while they are attending training may be 
included as part of the requirement pay-
ment of the employer.’’. 
(6) PRIORITY
FOR
PLACEMENT
IN
PRIVATE 
SECTOR
JOBS.—Section 134 (29 U.S.C. 2864) is 
further amended by adding at the end the following: 
‘‘(e) PRIORITY FOR PLACEMENT IN PRIVATE SECTOR 
JOBS.—In providing employment and training activities 
authorized under this section, the State and local board 
shall give priority to placing participants in jobs in the 
private sector.’’. 
SEC. 113. PERFORMANCE ACCOUNTABILITY SYSTEM. 
(a) STATE PERFORMANCE MEASURES.— 
(1) 
IN
GENERAL.—Section 
136(b)(1) 
(29 
U.S.C. 2871(b)(1)) is amended— 
(A) in subparagraph (A)(i), by striking 
‘‘and the customer satisfaction indicator of per-
formance described in paragraph (2)(B)’’; and 
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130 
(B) in subparagraph (A)(ii), by striking 
‘‘paragraph (2)(C)’’ and inserting ‘‘paragraph 
(2)(B)’’. 
(2) INDICATORS
OF
PERFORMANCE.—Section 
136(b)(2) (29 U.S.C. 2871(b)(2)) is amended— 
(A) in subparagraph (A)(i)— 
(i) by striking ‘‘(except for self-service 
and information activities) and (for partici-
pants who are eligible youth age 19 
through 21) for youth activities authorized 
under section 129’’; 
(ii) in subclause (II), by striking ‘‘6 
months after entry into the employment’’ 
and inserting ‘‘and’’ after the semicolon; 
and 
(iii) by striking subclause (III), and 
inserting the following: 
‘‘(III) average earnings from un-
subsidized employment.’’; 
(B) by striking subclause (IV) of subpara-
graph (A)(i); 
(C) by amending subparagraph (A)(ii) to 
read as follows: 
‘‘(ii) CORE INDICATORS FOR ELIGIBLE 
YOUTH.—The core indicators of perform-
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131 
ance for youth activities authorized under 
section 129 shall consist of— 
‘‘(I) entry into employment, edu-
cation or advanced training, or mili-
tary service; 
‘‘(II) attainment of secondary 
school diploma, General Educational 
Development credential (GED), or 
other State-recognized equivalent or 
certificate (including recognized alter-
native standards for individuals with 
disabilities); and 
‘‘(III) 
literacy 
or 
numeracy 
gains.’’; 
(D) by striking subparagraph (B); and 
(E) by redesignating subparagraph (C) as 
subparagraph (B), and by adding at the end of 
such subparagraph the following new sentence: 
‘‘Such indicators may include customer satisfac-
tion of employers and participants with services 
received from the workforce investment activi-
ties authorized under this subtitle.’’. 
(3) 
LEVELS
OF
PERFORMANCE.—Section 
136(b)(3)(A) (29 U.S.C. 2871(b)(3)(A)) is amend-
ed— 
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132 
(A) in clause (i), by striking ‘‘and the cus-
tomer satisfaction indicator described in para-
graph (2)(B)’’; 
(B) in clause (ii), by striking ‘‘and the cus-
tomer satisfaction indicator of performance, for 
the first 3’’ and inserting ‘‘for the 2’’; 
(C) in clause (iii)— 
(i) in the heading, by striking ‘‘FOR 
FIRST 3 YEARS’’; and 
(ii) by striking ‘‘and the customer sat-
isfaction indicator of performance, for the 
first 3’’ and inserting ‘‘for the 2’’; 
(D) in clause (iv)— 
(i) by striking subclause (I); 
(ii) by redesignating subclauses (II) 
and (III) as subclauses (I) and (II), re-
spectively; and 
(iii) in subclause (I) (as so redesig-
nated)— 
(I) by striking ‘‘taking into ac-
count’’ and inserting ‘‘which shall be 
adjusted based on’’; 
(II) by inserting ‘‘, such as un-
employment rates and job losses or 
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133 
gains in particular industries’’ after 
‘‘economic conditions’’; and 
(III) by inserting ‘‘, such as indi-
cators of poor work history, lack of 
work 
experience, 
dislocation 
from 
high-wage employment, low levels of 
literacy or English proficiency, dis-
ability status, including the number of 
veterans with disabilities, and welfare 
dependency’’ after ‘‘program’’; 
(E) by striking clause (v) and redesig-
nating clause (vi) as clause (v); and 
(F) in clause (vi) (as so redesignated)— 
(i) by striking ‘‘clause (iv)(II)’’ and 
inserting ‘‘subclause (iv)(I)’’; and 
(ii) striking ‘‘or (v)’’. 
(4) 
ADDITIONAL
INDICATORS.—Section 
136(b)(3)(B) is amended by striking ‘‘paragraph 
(2)(C)’’ and inserting ‘‘paragraph (2)(B)’’. 
(b) LOCAL
PERFORMANCE
MEASURES.—Section 
136(c) (29 U.S.C. 2871(c)) is amended— 
(1) in paragraph (1)(A)(i), by striking ‘‘, and 
the customer satisfaction indicator of performance 
described in subsection (b)(2)(B),’’; 
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152 
‘‘(c) DISCRETIONARY GRANTS FOR YOUTH ACTIVI-
TIES.— 
‘‘(1) IN GENERAL.—From the funds described 
in subsection(a)(2), the Secretary may award grants 
to eligible entities to provide activities that will as-
sist youth in preparing for, and entering and retain-
ing, employment. 
‘‘(2) ELIGIBLE ENTITIES.—Grants under this 
subsection may be awarded to public or private enti-
ties that the Secretary determines would effectively 
carry out activities relating to youth under this sub-
section. 
‘‘(3) PARTICIPANT
ELIGIBILITY.—Youth ages 
14 through 19 at the time the eligibility determina-
tion is made may be eligible to participate in activi-
ties under this subsection. 
‘‘(4) USE OF FUNDS.—Funds provided under 
this subsection may be used for activities that will 
assist youth in preparing for, and entering and re-
taining, employment, including activities to assist 
out-of-school youth, activities designed to assist in- 
school youth to stay in school and gain work experi-
ence, and such other activities that the Secretary de-
termines are appropriate. 
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176 
region identified under paragraph (2)(A), 
such as the chairpersons or executive direc-
tors of affected local workforce investment 
boards in such region; 
‘‘(ii) representatives of the education 
system in the region identified under para-
graph (2)(A), including representatives 
from each of the following: 
‘‘(I) The K–12 public school sys-
tems; 
‘‘(II) Community colleges; and 
‘‘(III) Four-year educational in-
stitutions; 
‘‘(iii) representatives of businesses 
and industry associations in the region 
identified under paragraph (2)(A); 
‘‘(iv) the chief elected officials from 
each of the affected local areas identified 
under paragraph (2)(A); and 
‘‘(v) representatives of local and re-
gional economic development agencies in 
the region identified under paragraph 
(2)(A); and 
‘‘(B) may include— 
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