‘‘(1) IN GENERAL.—In order to facilitate and 
assist participants under chapter 5 in choosing pro-
viders of training services, the Governor shall ensure 
that an appropriate list or lists of providers deter-
mined eligible under this section in the State, ac-
companied by such information as the Governor de-
termines is appropriate, is provided to the local 
boards in the State to be made available to such 
participants and to members of the public through 
the one-stop delivery system in the State. 
‘‘(2) SPECIAL
RULE.—An entity that carries 
out programs under the Act of August 16, 1937 
(commonly known as the ‘National Apprenticeship 
Act’, 50 Stat. 664, chapter 663; 29 U.S.C. 50 et 
seq.) shall be included on the list of eligible pro-
viders described in paragraph (1) for so long as such 
entity remains certified by the Department of Labor. 
‘‘(e) AGREEMENTS WITH OTHER STATES.—States 
may enter into agreements, on a reciprocal basis, to per-
mit eligible providers of training services to accept indi-
vidual training accounts provided in another State. 
‘‘(f) RECOMMENDATIONS.—In developing the criteria, 
procedures, and information required under this section, 
the Governor shall solicit and take into consideration the
recommendations of local boards and providers of training 
services within the State. 
‘‘(g) OPPORTUNITY TO SUBMIT COMMENTS.—During 
the development of the criteria, procedures, and informa-
tion required under this section, the Governor shall pro-
vide an opportunity for interested members of the public, 
including representatives of business and labor organiza-
tions, to submit comments regarding such criteria, proce-
dures, and information. 
‘‘(h) 
ON-THE-JOB
TRAINING
OR
CUSTOMIZED 
TRAINING EXCEPTION.—
‘‘(1) IN
GENERAL.—Providers of on-the-job 
training or customized training shall not be subject 
to the requirements of subsections (a) through (g). 
‘‘(2) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—A one-stop operator in a local area 
shall collect such performance information from on-
the-job training and customized training providers 
as the Governor may require, determine whether the 
providers meet such performance criteria as the Gov-
ernor may require, and disseminate information 
identifying providers that meet the criteria as eligi-
ble providers, and the performance information, 
through the one-stop delivery system. Providers de-
termined to meet the criteria shall be considered to
be identified as eligible providers of training serv-
ices.’’. 
SEC. 110. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 
(a) ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.— 
Section 123 (29 U.S.C. 2843) is amended to read as fol-
lows: 
‘‘SEC. 123. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES. 
‘‘(a) IN GENERAL.—From the funds allocated under 
section 128(b) to a local area, the local board for such 
area shall award grants or contracts on a competitive basis 
to providers of youth activities identified based on the cri-
teria in the State plan and shall conduct oversight with 
respect to such providers. 
‘‘(b) EXCEPTIONS.—A local board may award grants 
or contracts on a sole-source basis if such board deter-
mines there are an insufficient number of eligible pro-
viders of training services in the local area involved (such 
as rural areas) for grants to be awarded on a competitive 
basis under subsection (a).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) is amended by amending the item related 
to section 123 to read as follows: 
‘‘Sec. 123. Eligible providers of youth activities.’’. 
SEC. 111. YOUTH ACTIVITIES. 
(a) STATE ALLOTMENTS.—
(1) IN GENERAL.—Section 127(a) (29 U.S.C. 
2852(a)) is amended to read as follows: 
‘‘(a) ALLOTMENT AMONG STATES.— 
‘‘(1) YOUTH ACTIVITIES.— 
‘‘(A) YOUTH CHALLENGE GRANTS.— 
‘‘(i) RESERVATION
OF
FUNDS.—Of 
the amount appropriated under section 
137(a) for each fiscal year, the Secretary 
shall reserve 25 percent to provide youth 
challenge grants under section 169. 
‘‘(ii) 
LIMITATION.—Notwithstanding 
clause (i), if the amount appropriated 
under section 137(a) for a fiscal year ex-
ceeds $1,000,000,000, the Secretary shall 
reserve $250,000,000 to provide youth 
challenge grants under section 169. 
‘‘(B) OUTLYING AREAS AND NATIVE AMER-
ICANS.— 
‘‘(i) IN GENERAL.—After determining 
the amount to be reserved under subpara-
graph (A), of the remainder of the amount 
appropriated under section 137(a) for each 
fiscal year the Secretary shall— 
‘‘(I) reserve not more than 1⁄4 of 
one percent of such amount to provide
assistance to the outlying areas to 
carry out youth activities and state-
wide workforce investment activities; 
and 
‘‘(II) reserve not more than 1 
and 1⁄2 percent of such amount to 
provide youth activities under section 
166 (relating to Native Americans). 
‘‘(ii) RESTRICTION.—The Republic of 
Palau shall cease to be eligible to receive 
funding under this subparagraph upon en-
tering into an agreement for extension of 
United States educational assistance under 
the Compact of Free Association (approved 
by the Compact of Free Association 
Amendments Act of 2003 (Public Law 
108–188)) after the date of enactment of 
the Job Training Improvement Act of 
2005. 
‘‘(C) STATES.— 
‘‘(i) IN GENERAL.—Of the remainder 
of the amount appropriated under section 
137(a) for a fiscal year that is available 
after determining the amounts to be re-
served under subparagraphs (A) and (B), 
the Secretary shall allot— 
‘‘(I) the amount of the remainder 
that is less than or equal to the total 
amount that was allotted to States for 
fiscal 
year 
2003 
under 
section 
127(b)(1)(C) of this Act (as in effect 
on the day before the date of enact-
ment of the Job Training Improve-
ment Act of 2005) in accordance with 
the requirements of such section 
127(b)(1)(C); and 
‘‘(II) the amount of the remain-
der, if any, in excess of the amount 
referred to in subclause (I) in accord-
ance with clause (ii). 
‘‘(ii) 
FORMULAS
FOR
EXCESS 
FUNDS.—Subject to clauses (iii) and (iv), 
of 
the 
amounts 
described 
in 
clause 
(i)(II)— 
‘‘(I) 331⁄3 percent shall be allot-
ted on the basis of the relative num-
ber of individuals in the civilian labor 
force who are ages 16–19 in each 
State, compared to the total number