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‘‘(B) establish guidelines to assure develop-
ment of a uniform set of standards and policies
for such programs;
‘‘(C) prepare and submit a report on the
pilot projects to the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate and
the Committee on Education and the Workforce
of the House of Representatives; and
‘‘(D) make available to the public both the
data and the report.
‘‘(10) AUTHORIZATION OF APPROPRIATIONS.—In
addition to amounts authorized to be appropriated
under section 174(b), there is authorized to be appro-
priated $30,000,000 for fiscal year 2004 to carry out
this subsection.’’.
(d) INTEGRATED WORKFORCE TRAINING PROGRAMS
FOR ADULTS WITH LIMITED ENGLISH PROFICIENCY.—Sec-
tion 171 (29 U.S.C. 2916), as amended by subsection (c),
is further amended by adding at the end the following:
‘‘(f) INTEGRATED WORKFORCE TRAINING PROGRAMS
FOR ADULTS WITH LIMITED ENGLISH PROFICIENCY.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) INTEGRATED WORKFORCE TRAINING.—
The term ‘integrated workforce training’ means
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training that integrates occupational skills
training with language acquisition.
‘‘(B) SECRETARY.—The term ‘Secretary’
means the Secretary of Labor in consultation
with the Secretary of Education.
‘‘(2) DEMONSTRATION PROJECT.—In accordance
with subsection (b) and from funds appropriated pur-
suant to paragraph (11), the Secretary shall establish
and implement a national demonstration project de-
signed to both analyze and provide data on workforce
training programs that integrate English language
acquisition and occupational training.
‘‘(3) GRANTS.—
‘‘(A) IN
GENERAL.—In carrying out the
demonstration project, the Secretary shall make
not less than 10 grants, on a competitive basis,
to eligible entities to provide the integrated work-
force training programs. In awarding grants
under this subsection the Secretary shall take
into consideration awarding grants to eligible
entities from diverse geographic areas, including
rural areas.
‘‘(B) PERIODS.—The Secretary shall make
the grants for periods of not less than 24 months
and not more than 48 months.
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‘‘(4) ELIGIBLE ENTITIES.—
‘‘(A) IN GENERAL.—To be eligible to receive
a grant under this subsection, an eligible entity
shall work in conjunction with a local board and
shall include as a principal participant one or
more of the following:
‘‘(i) An employer or employer associa-
tion.
‘‘(ii) A nonprofit provider of English
language instruction.
‘‘(iii) A provider of occupational or
skills training.
‘‘(iv) A community-based organization.
‘‘(v) An educational institution, in-
cluding a 2- or 4-year college, or a technical
or vocational school.
‘‘(vi) A labor organization.
‘‘(vii) A local board.
‘‘(B) EXPERTISE.—To be eligible to receive
a grant under this subsection, an eligible entity
shall have proven expertise in—
‘‘(i) serving individuals with limited
English proficiency, including individuals
with lower levels of oral and written
English; and
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‘‘(ii) providing workforce programs
with training and English language in-
struction.
‘‘(5) APPLICATIONS.—
‘‘(A) IN GENERAL.—To be eligible to receive
a grant under this subsection, an eligible entity
shall submit an application to the Secretary at
such time, in such manner, and containing such
information as the Secretary may require.
‘‘(B) CONTENTS.—Each application sub-
mitted under subparagraph (A) shall—
‘‘(i) contain information, including ca-
pability statements, that demonstrates that
the eligible entity has the expertise described
in paragraph (4)(B); and
‘‘(ii) include an assurance that the
program to be assisted shall—
‘‘(I) establish a generalized adult
bilingual workforce training and edu-
cation model that integrates English
language acquisition and occupational
training, and incorporates the unique
linguistic and cultural factors of the
participants;
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‘‘(II) establish a framework by
which the employer, employee, and
other relevant members of the eligible
entity can create a career development
and training plan that assists both the
employer and the employee to meet
their long-term needs;
‘‘(III) ensure that the framework
established under subclause (II) takes
into consideration the knowledge, skills,
and abilities of the employee with re-
spect to both the current and economic
conditions of the employer and future
labor market conditions relevant to the
local area; and
‘‘(IV) establish identifiable meas-
ures so that the progress of the em-
ployee and employer and the relative
efficacy of the program can be evalu-
ated and best practices identified.
‘‘(6) CRITERIA.—The Secretary shall establish
criteria for awarding grants under this subsection.
‘‘(7) INTEGRATED
WORKFORCE
TRAINING
PRO-
GRAMS.—
‘‘(A) PROGRAM COMPONENTS.—
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‘‘(i) REQUIRED
COMPONENTS.—Each
program that receives funding under this
subsection shall—
‘‘(I) test an individual’s English
language proficiency levels to assess
oral and literacy gains from the begin-
ning and throughout program enroll-
ment;
‘‘(II) combine training specific to
a particular occupation or occupa-
tional cluster, with—
‘‘(aa) English language in-
struction, 
such 
as 
instruction
through an English as a Second
Language program, or an English
for Speakers of Other Languages
program;
‘‘(bb) basic skills instruction;
and
‘‘(cc) supportive services;
‘‘(III) effectively integrate public
and private sector entities, including
the local workforce investment system
and its functions, to achieve the goals
of the program; and
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‘‘(IV) require matching or in-kind
resources from private and nonprofit
entities.
‘‘(ii) PERMISSIBLE COMPONENTS.—The
program may offer other services, as nec-
essary to promote successful participation
and 
completion, 
including 
work-based
learning, substance abuse treatment, and
mental health services.
‘‘(B) GOAL.—Each program that receives
funding under this subsection shall be designed
to prepare limited English proficient adults for,
and place such adults in employment in, grow-
ing industries with identifiable career ladder
paths.
‘‘(C) PROGRAM
TYPES.—In selecting pro-
grams to receive funding under this subsection,
the Secretary shall select programs that meet 1
or more of the following criteria:
‘‘(i) A program that—
‘‘(I) serves unemployed, limited
English proficient individuals with
significant work experience or substan-
tial education but persistently low
wages; and
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‘‘(II) aims to prepare such indi-
viduals for, and place such individuals
in, higher paying employment, defined
for purposes of this subparagraph as
employment that provides at least 75
percent of the median wage in the local
area.
‘‘(ii) A program that—
‘‘(I) serves limited English pro-
ficient individuals with lower levels of
oral and written fluency, who are
working but at persistently low wages;
and
‘‘(II) aims to prepare such indi-
viduals for, and place such individuals
in, higher paying employment, through
services provided at the worksite, or at
a location central to several work sites,
during work hours.
‘‘(iii) A program that—
‘‘(I) serves unemployed, limited
English proficient individuals with
lower levels of oral and written flu-
ency, who have little or no work expe-
rience; and
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‘‘(II) aims to prepare such indi-
viduals for, and place such individuals
in, employment through services that
include subsidized employment, in ad-
dition to the components required in
subparagraph (A)(i).
‘‘(iv) A program that includes funds
from private and nonprofit entities.
‘‘(D) PROGRAM APPROACHES.—In selecting
programs to receive funding under this sub-
section, the Secretary shall select programs with
different approaches to integrated workforce
training, in different contexts, in order to obtain
comparative data on multiple approaches to in-
tegrated workforce training and English lan-
guage instruction, to ensure programs are tai-
lored to characteristics of individuals with vary-
ing skill levels and to assess how different cur-
ricula work for limited English proficient popu-
lations. Such approaches may include—
‘‘(i) bilingual programs in which the
workplace language component and the
training are conducted in a combination of
an 
individual’s 
native 
language 
and
English;
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‘‘(ii) integrated workforce training
programs that combine basic skills, lan-
guage instruction, and job specific skills
training; or
‘‘(iii) sequential programs that provide
a progression of skills, language, and train-
ing to ensure success upon an individual’s
completion of the program.
‘‘(8) EVALUATION BY ELIGIBLE ENTITY.—Each
eligible entity that receives a grant under this sub-
section for a program shall carry out a continuous
program evaluation and an evaluation specific to the
last phase of the program operations.
‘‘(9) EVALUATION BY SECRETARY.—
‘‘(A) IN
GENERAL.—The Secretary shall
conduct an evaluation of program impacts of the
programs 
funded 
under 
the 
demonstration
project, with a random assignment, experimental
design impact study done at each worksite at
which such a program is carried out.
‘‘(B) DATA COLLECTION AND ANALYSIS.—
The Secretary shall collect and analyze the data
from the demonstration project to determine pro-
gram effectiveness, including gains in language
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proficiency, acquisition of skills, and job ad-
vancement for program participants.
‘‘(C) REPORT.—The Secretary shall prepare
and submit to the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate and
the Committee on Education and the Workforce
of the House of Representatives, and make avail-
able to the public, a report on the demonstration
project, including the results of the evaluation.
‘‘(10) TECHNICAL
ASSISTANCE.—The Secretary
shall provide technical assistance to recipients of
grants under this subsection throughout the grant pe-
riods.
‘‘(11) AUTHORIZATION OF APPROPRIATIONS.—In
addition to amounts authorized to be appropriated
under section 174(b), there is authorized to be appro-
priated $10,000,000 for fiscal year 2004 to carry out
this subsection.’’.
SEC. 147. NATIONAL DISLOCATED WORKER GRANTS.
(a) IN GENERAL.—Section 173 (29 U.S.C. 2918) is
amended—
(1) by striking the heading and inserting the fol-
lowing:
‘‘SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.’’;
and
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(2) in subsection (a)—
(A) by striking the matter preceding para-
graph (1) and inserting the following:
‘‘(a) IN GENERAL.—The Secretary is authorized to
award national dislocated worker grants—’’;
(B) in paragraph (1), by striking ‘‘sub-
section (c)’’ and inserting ‘‘subsection (b)’’;
(C) in paragraph (3), by striking ‘‘and’’
after the semicolon; and
(D) by striking paragraph (4) and insert-
ing the following:
‘‘(4) to a State or entity (as defined in sub-
section (b)(1)(B)) to carry out subsection (e), includ-
ing providing assistance to eligible individuals;
‘‘(5) to a State or entity (as defined in sub-
section (b)(1)(B)) to carry out subsection (f), includ-
ing providing assistance to eligible individuals;
‘‘(6) to provide additional assistance to a State
board or local board where a higher than average de-
mand for employment and training services for dis-
located members of the Armed Forces, or spouses, as
defined in section 101(9)(E), of members of the Armed
Forces as described in subsection (b)(2)(A)(iv), exceeds
State and local resources for providing such services,
and where such programs are to be carried out in
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partnership with the Department of Defense and De-
partment of Veterans Affairs transition assistance
programs; and
‘‘(7) to provide assistance to a State for state-
wide or local use in order to—
‘‘(A) address cases in which there have been
worker dislocations across multiple sectors or
across multiple local areas and such workers re-
main dislocated;
‘‘(B) coordinate the State plan described in
section 112 with emerging economic development
needs; and
‘‘(C) train eligible individuals who are dis-
located workers described in subparagraph (A).
The Secretary shall issue a final decision on an application
for a national dislocated worker grant under this subsection
not later than 60 calendar days after receipt of the applica-
tion. The Secretary shall issue a notice of obligation for
such a grant not later than 10 days after the award of the
grant.’’.
(b) ADMINISTRATION AND ADDITIONAL ASSISTANCE.—
Section 173 (29 U.S.C. 2918) is amended—
(1) by striking subsection (b);
(2) by redesignating subsections (c) through (g)
as subsections (b) through (f), respectively;
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(3) by striking subsection (d) (as redesignated by
paragraph (2)) and inserting the following:
‘‘(d) ADDITIONAL ASSISTANCE.—
‘‘(1) IN
GENERAL.—From the amount appro-
priated and made available to carry out this section
for any program year, the Secretary shall use not
more than $20,000,000 to make grants to States to
provide employment and training activities under
section 134, in accordance with subtitle B.
‘‘(2) ELIGIBLE
STATES.—The Secretary shall
make a grant under paragraph (1) to a State for a
program year if—
‘‘(A) the amount of the allotment that was
made to the State for the program year 2003
under 
the 
formula 
specified 
in 
section
132(b)(1)(B) as such section was in effect on
July 1, 2003, is greater than
‘‘(B) the amount of the allotment that
would be made to the State for the program year
under 
the 
formula 
specified 
in 
section
132(b)(1)(B).
‘‘(3) AMOUNT OF GRANTS.—Subject to paragraph
(1), the amount of the grant made under paragraph
(1) to a State for a program year shall be based on
the difference between—
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‘‘(A) the amount of the allotment that was
made to the State for the program year 2003
under 
the 
formula 
specified 
in 
section
132(b)(1)(B) as such section was in effect on
July 1, 2003; and
‘‘(B) the amount of the allotment that
would be made to the State for the program year
under 
the 
formula 
specified 
in 
section
132(b)(1)(B).’’;
(4) in subsection (e) (as redesignated by para-
graph (2))—
(A) in paragraph (1), by striking ‘‘para-
graph (4)(A)’’ and inserting ‘‘paragraph (4)’’;
(B) in paragraph (2), by striking ‘‘sub-
section (g)’’ and inserting ‘‘subsection (f)’’;
(C) in paragraph (4), by striking ‘‘sub-
section (g)’’ and inserting ‘‘subsection (f)’’;
(D) in paragraph (5), by striking ‘‘sub-
section (g)’’ and inserting ‘‘subsection (f)’’; and
(E) in paragraph (6)—
(i) by striking ‘‘subsection (g)’’ and in-
serting ‘‘subsection (f)’’; and
(ii) by striking ‘‘subsection (c)(1)(B)’’
and inserting ‘‘subsection (b)(1)(B)’’; and
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(5) in subsection (f)(1) (as redesignated by para-
graph (2))—
(A) by striking ‘‘paragraph (4)(B)’’ and in-
serting ‘‘paragraph (4)’’; and
(B) by striking ‘‘subsection (f)(1)(A)’’ and
inserting ‘‘subsection (e)(1)(A)’’.
SEC. 148. AUTHORIZATION OF APPROPRIATIONS FOR NA-
TIONAL ACTIVITIES.
(a) IN
GENERAL.—Section 174(a)(1) (29 U.S.C.
2919(a)(1)) is amended by striking ‘‘1999 through 2003’’
and inserting ‘‘2004 through 2009’’.
(b) RESERVATIONS.—Section 174(b) (29 U.S.C.
2919(b)) is amended to read as follows:
‘‘(b) TECHNICAL ASSISTANCE; DEMONSTRATION AND
PILOT PROJECTS, EVALUATIONS, INCENTIVE GRANTS.—
There are authorized to be appropriated to carry out sec-
tions 170 through 172 and section 136(i) such sums as may
be necessary for each of fiscal years 2004 through 2009.’’.
Subtitle E—Administration
SEC. 151. REQUIREMENTS AND RESTRICTIONS.
Section 181(e) (29 U.S.C. 2931(e)) is amended by
striking ‘‘economic development activities,’’.
SEC. 152. REPORTS.
Section 185(c) (29 U.S.C. 2935(c)) is amended—
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(1) in paragraph (2), by striking ‘‘and’’ after the
semicolon;
(2) in paragraph (3), by striking the period and
inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(4) shall have the option to submit or dissemi-
nate electronically any reports, records, plans, or any
other data that are required to be collected or dissemi-
nated under this title.’’.
SEC. 153. ADMINISTRATIVE PROVISIONS.
(a) ANNUAL REPORT.—Section 189(d) (29 U.S.C.
2939(d)) is amended—
(1) in paragraph (3), by striking ‘‘and’’ after the
semicolon;
(2) by redesignating paragraph (4) as para-
graph (5); and
(3) by inserting after paragraph (3) the fol-
lowing:
‘‘(4) the negotiated levels of performance of the
States, the States’ requests for adjustments of such
levels, and the adjustments of such levels that are
made; and’’.
(b) AVAILABILITY.—Section 189(g)(2) (29 U.S.C.
2939(g)(2)) is amended, in the first sentence—
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(1) by striking ‘‘Funds’’ and inserting ‘‘Except
as otherwise provided in this paragraph, funds’’; and
(2) by striking ‘‘each State receiving’’ and in-
serting ‘‘each recipient of’’.
(c) GENERAL WAIVERS.—Section 189(i)(4) (29 U.S.C.
2939(i)(4)) is amended—
(1) in subparagraph (A)(i), by inserting ‘‘the
funding of infrastructure costs for one-stop centers,’’
after ‘‘local boards,’’; and
(2) by adding at the end the following:
‘‘(D) EXPEDITED
REQUESTS.—The Sec-
retary shall expedite requests for waivers of stat-
utory or regulatory requirements that have been
approved for a State pursuant to subparagraph
(B), if the requirements of this paragraph have
been satisfied.’’.
SEC. 154. USE OF CERTAIN REAL PROPERTY.
Section 193 (29 U.S.C. 2943) is amended to read as
follows:
‘‘SEC. 193. TRANSFER OF FEDERAL EQUITY IN STATE EM-
PLOYMENT SECURITY AGENCY REAL PROP-
ERTY TO THE STATES.
‘‘(a) TRANSFER
OF
FEDERAL
EQUITY.—Notwith-
standing any other provision of law, any Federal equity
acquired in real property through grants to States awarded
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(2) by striking the item relating to section 123
and inserting the following:
‘‘Sec. 123. Eligible providers of youth activities.’’;
(3) by striking the item relating to section 169
and inserting the following:
‘‘Sec. 169. Youth challenge grants.’’;
(4) by striking the item relating to section 173
and inserting the following:
‘‘Sec. 173. National dislocated worker grants.’’;
(5) by striking the item relating to section 193
and inserting the following:
‘‘Sec. 193. Transfer of Federal equity in State employment security agency real
property to the States.’’;
and
(6) by inserting after the item relating to section
243 the following:
‘‘Sec. 244. Integrated English literacy and civics education.’’.
Subtitle F—Incentive Grants
SEC. 161. INCENTIVE GRANTS.
Section 503 (20 U.S.C. 9273) is amended—
(1) by striking subsection (a) and inserting the
following:
‘‘(a) IN GENERAL.—
‘‘(1) PRIOR TO JULY 1, 2005.—Prior to July 1,
2005, the Secretary shall award a grant to each State
in accordance with the provisions of this section as
this section was in effect on July 1, 2003.
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‘‘(2) BEGINNING ON JULY 1, 2005.—Beginning on
July 1, 2005, the Secretary shall award a grant to
each State on the basis—
‘‘(A) of the State’s exceeding the State ad-
justed levels of performance for title I, the ad-
justed levels of performance for title II, and the
levels of performance for programs under the
Carl D. Perkins Vocational and Technical Edu-
cation Act of 1998 (20 U.S.C. 2301 et seq.), for
the purpose of carrying out an innovative pro-
gram consistent with the requirements of any
one or more of the programs within title I, title
II, or such Act, respectively;
‘‘(B) of exemplary performance of the States
in serving hard-to-serve populations (as defined
in section 101) (including performance relating
to the levels of service provided and the perform-
ance outcomes on such performance measures
with respect to the populations);
‘‘(C) of States that are effectively—
‘‘(i) coordinating multiple systems into
a more effective workforce investment sys-
tem, including coordination of employment
services under the Wagner-Peyser Act and
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core activities under title I as well as part-
ner programs described in section 121;
‘‘(ii) expanding access to training, in-
cluding through increased leveraging of re-
sources other than those funded through pro-
grams under title I; or
‘‘(iii) implementing innovative busi-
ness and economic development initiatives;
or
‘‘(D) of such other factors relating to the
performance of the States under title I as the
Secretary determines are appropriate.’’; and
(2) in subsection (b)(2), by adding at the end the
following:
‘‘(D) USE OF FUNDS.—The funds awarded
to a State under this section may be used to
carry out any activities authorized for States
under chapters 4 and 5 of subtitle B of title I,
title II, and the Carl D. Perkins Vocational and
Technical Education Act of 1998, including dem-
onstration projects and innovative programs for
hard-to-serve populations (as defined in section
101).’’.
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TITLE II—AMENDMENTS TO THE
ADULT EDUCATION AND FAM-
ILY LITERACY ACT
SEC. 201. SHORT TITLE; PURPOSE.
(a) SHORT TITLE.—This title may be cited as the
‘‘Adult Education and Family Literacy Act Amendments
of 2003’’.
(b) PURPOSE.—Section 202 of the Adult Education
and Family Literacy Act (20 U.S.C. 9201) is amended—
(1) in paragraph (2), by striking ‘‘and’’ after the
semicolon;
(2) in paragraph (3), by striking ‘‘education.’’
and inserting ‘‘education and in the transition to
postsecondary education; and’’; and
(3) by adding at the end the following:
‘‘(4) assist immigrants and other individuals
with limited English proficiency in improving their
reading, writing, speaking, and mathematics skills
and acquiring an understanding of the American free
enterprise system, individual freedom, and the re-
sponsibilities of citizenship.’’.
SEC. 202. DEFINITIONS.
Section 203 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9202) is amended—
(1) in paragraph (1)—
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(A) in the matter preceding subparagraph
(A), by striking ‘‘services or instruction below
the postsecondary level’’ and inserting ‘‘academic
instruction and education services below the
postsecondary level that increase an individual’s
ability to read, write, and speak in English and
perform mathematics’’; and
(B) by striking subparagraph (C)(i) and in-
serting the following:
‘‘(i) are basic skills deficient as defined
in section 101;’’;
(2) in paragraph (2), by striking ‘‘activities de-
scribed in section 231(b)’’ and inserting ‘‘programs
and services which include reading, writing, speaking,
or mathematics skills, workplace literacy activities,
family literacy activities, English language acquisi-
tion activities, or other activities necessary for the at-
tainment of a secondary school diploma or its State
recognized equivalent’’;
(3) in paragraph (5)—
(A) by inserting ‘‘an organization that has
demonstrated effectiveness in providing adult
education, that may include’’ after ‘‘means’’;
(B) in subparagraph (B), by striking ‘‘of
demonstrated effectiveness’’;
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(C) in subparagraph (C), by striking ‘‘of
demonstrated effectiveness’’; and
(D) in subparagraph (I), by inserting ‘‘or
coalition’’ after ‘‘consortium’’;
(4) in paragraph (6)—
(A) by striking ‘‘LITERACY PROGRAM’’ and
inserting ‘‘LANGUAGE ACQUISITION PROGRAM’’;
(B) by striking ‘‘literacy program’’ and in-
serting ‘‘language acquisition program’’; and
(C) by inserting ‘‘reading, writing, and
speaking’’ after ‘‘competence in’’;
(5) by redesignating paragraphs (7) through (18)
as paragraphs (8) through (19), respectively;
(6) by inserting after paragraph (6) the fol-
lowing:
‘‘(7) ESSENTIAL COMPONENTS OF READING IN-
STRUCTION.—The term ‘essential components of read-
ing instruction’ has the meaning given the term in
section 1208 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 6368).’’; and
(7) by striking paragraph (19), as redesignated
by paragraph (4), and inserting the following:
‘‘(19) WORKPLACE
LITERACY
PROGRAM.—The
term ‘workplace literacy program’ means an edu-
cational program designed to improve the produc-
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tivity of the workforce through the improvement of lit-
eracy skills that is offered by an eligible provider in
collaboration with an employer or an employee orga-
nization at a workplace, at an off-site location, or in
a simulated workplace environment.’’.
SEC. 203. AUTHORIZATION OF APPROPRIATIONS.
Section 205 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9204) is amended—
(1) by striking ‘‘1999’’ and inserting ‘‘2004’’;
and
(2) by striking ‘‘2003’’ and inserting ‘‘2009’’.
SEC. 204. HOME SCHOOLS.
Section 204 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9203) is amended to read as follows:
‘‘SEC. 204. HOME SCHOOLS.
‘‘Nothing in this title shall be construed to affect home
schools, whether a home school is treated as a home school
or a private school under State law, or to compel a parent
engaged in home schooling to participate in an English lit-
eracy program, family literacy services, or adult edu-
cation.’’.
SEC. 205. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE
AGENCIES; ALLOTMENTS.
Section 211 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9211) is amended—
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(1) by striking subsection (a) and inserting the
following:
‘‘(a) RESERVATION OF FUNDS.—From the sum appro-
priated under section 205 for a fiscal year, the Secretary—
‘‘(1) shall reserve 1.5 percent to carry out section
242, except that the amount so reserved shall not ex-
ceed $10,000,000;
‘‘(2) shall reserve 1.5 percent to carry out section
243 and subsection (f)(4), except that the amount so
reserved shall not exceed $8,000,000;
‘‘(3) shall make available, to the Secretary of
Labor, 1.72 percent for incentive grants under section
136(i); and
‘‘(4) shall reserve 12 percent of the amount that
remains after reserving funds under paragraphs (1),
(2) and (3) to carry out section 244.’’;
(2) 
in 
subsection 
(c)(1)(B), 
by 
striking
‘‘$250,000’’ and inserting ‘‘$350,000’’;
(3) by striking subsection (d) and inserting the
following:
‘‘(d) QUALIFYING ADULT.—For the purpose of sub-
section (c)(2), the term ‘qualifying adult’ means an adult
who—
‘‘(1) is not less than 16 years of age;
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‘‘(2) is beyond the age of compulsory school at-
tendance under the law of the State or outlying area;
‘‘(3) does not have a secondary school diploma or
its recognized equivalent; and
‘‘(4) is not enrolled in secondary school.’’;
(4) in subsection (e)—
(A) by striking paragraph (2) and inserting
the following:
‘‘(2) AWARD BASIS.—The Secretary shall award
grants pursuant to paragraph (1) on a competitive
basis and pursuant to recommendations from the Pa-
cific Region Educational Laboratory in Honolulu,
Hawaii.’’; and
(B) in paragraph (3), by striking ‘‘shall’’
and all that follows through the period and in-
serting ‘‘shall be eligible to receive a grant under
this title until the date when an agreement for
the extension of the United States education as-
sistance under the Compact of Free Association
for each of the Freely Associated States becomes
effective.’’; and
(5) by striking subsection (f) and inserting the
following:
‘‘(f) HOLD-HARMLESS PROVISIONS.—
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‘‘(1) IN GENERAL.—Notwithstanding subsection
(c) and subject to paragraph (2), for fiscal year 2004
and each succeeding fiscal year, no eligible agency
shall receive an allotment under this section that is
less than 90 percent of the allotment the eligible agen-
cy received for the preceding fiscal year under this
section.
‘‘(2) 
100 
PERCENT
ALLOTMENT.—Notwith-
standing paragraphs (1) and (2) of subsection (e), an
eligible agency that receives only an initial allotment
under subsection (c)(1) (and no additional allotment
under subsection (c)(2)) shall receive an allotment
under this section that is equal to 100 percent of the
initial allotment under subsection (c)(1).
‘‘(3) RATABLE
REDUCTION.—If for any fiscal
year the amount available for allotment under this
subtitle is insufficient to satisfy the provisions of
paragraphs (1) and (2), the Secretary shall ratably
reduce the payments to all eligible agencies, as nec-
essary.
‘‘(4) ADDITIONAL ASSISTANCE.—
‘‘(A) IN GENERAL.—From amounts reserved
under subsection (a)(2), the Secretary shall make
grants to eligible agencies described in subpara-
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graph (B) to enable such agencies to provide ac-
tivities authorized under chapter 2.
‘‘(B) ELIGIBILITY.—An eligible agency is
eligible to receive a grant under this paragraph
for a fiscal year if the amount of the allotment
such agency receives under this section for the
fiscal year is less than the amount such agency
would have received for the fiscal year if the al-
lotment formula under this section as in effect on
September 30, 2003, were in effect for such year.
‘‘(C) AMOUNT OF GRANT.—The amount of a
grant made to an eligible agency under this
paragraph for a fiscal year shall be the difference
between—
‘‘(i) the amount of the allotment such
agency would have received for the fiscal
year if the allotment formula under this sec-
tion as in effect on September 30, 2003,
were in effect for such year; and
‘‘(ii) the amount of the allotment such
agency receives under this section for the
fiscal year.’’.
SEC. 206. PERFORMANCE ACCOUNTABILITY SYSTEM.
Section 212 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9212) is amended—
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(1) in subsection (b)—
(A) in paragraph (1)(A)(ii), by striking
‘‘additional indicators of performance (if any)’’
and inserting ‘‘employment performance indica-
tors’’;
(B) in paragraph (2)—
(i) in subparagraph (A)—
(I) in clause (i), by striking
‘‘Demonstrated’’ and inserting ‘‘Meas-
urable’’;
(II) by striking clause (ii) and in-
serting the following:
‘‘(ii) Placement in, retention in, or
completion of, postsecondary education or
other training programs.’’; and
(III) in clause (iii), by inserting
‘‘(including 
recognized 
alternative
standards for individuals with disabil-
ities)’’ after ‘‘equivalent’’;
(ii) by redesignating subparagraph (B)
as subparagraph (C);
(iii) by inserting after subparagraph
(A), the following:
‘‘(B) EMPLOYMENT PERFORMANCE INDICA-
TORS.—An eligible agency shall identify in the
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State plan individual participant employment
performance indicators, including entry into un-
subsidized employment, retention in unsub-
sidized employment, and career advancement.
The State workforce investment board shall assist
the eligible agency in obtaining and using quar-
terly wage records to collect data for such indica-
tors, consistent with applicable Federal and
State privacy laws.’’;
(iv) in subparagraph (C), as redesig-
nated by clause (ii), by inserting ‘‘relevant’’
after ‘‘additional’’; and
(v) by adding at the end the following:
‘‘(D) INDICATORS
FOR
WORKPLACE
LIT-
ERACY
PROGRAMS.—Special 
accountability
measures may be negotiated for workplace lit-
eracy programs.’’; and
(C) in paragraph (3)—
(i) in subparagraph (A)—
(I) in clause (i)(II), by striking
‘‘in performance’’ and inserting ‘‘the
agency’s performance outcomes in an
objective, quantifiable, and measurable
form’’;
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(II) in clause (ii), by striking ‘‘3
programs years’’ and inserting ‘‘2 pro-
gram years’’;
(III) in clause (iii), by striking
‘‘FIRST 3 YEARS’’ and inserting ‘‘FIRST
2 YEARS’’;
(IV) in clause (iii), by striking
‘‘first 3 program years’’ and inserting
‘‘first 2 program years’’;
(V) in clause (v), by striking ‘‘4TH
AND
5TH’’ and inserting ‘‘3RD
AND
4TH’’;
(VI) in clause (v), by striking ‘‘to
the fourth’’ and inserting ‘‘to the
third’’;
(VII) in clause (v), by striking
‘‘fourth and fifth’’ and inserting ‘‘third
and fourth’’; and
(VIII) in clause (vi), by striking
‘‘(II)’’ and inserting ‘‘(I)’’;
(ii) in subparagraph (B)—
(I) by striking the heading and
inserting ‘‘LEVELS
OF
EMPLOYMENT
PERFORMANCE’’;
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(II) by striking ‘‘may’’ and in-
serting ‘‘shall’’; and
(III) by striking ‘‘additional’’ and
inserting ‘‘employment’’; and
(iii) by adding at the end the fol-
lowing:
‘‘(C) 
ALTERNATIVE
ASSESSMENT
SYS-
TEMS.—Eligible agencies may approve the use of
assessment systems that are not commercially
available standardized systems if such systems
meet the Standards for Educational and Psycho-
logical Testing issued by the Joint Committee on
Standards for Educational and Psychological
Testing of the American Educational Research
Association, the American Psychological Associa-
tion, and the National Council on Measurement
in Education.’’;
(2) in subsection (c)—
(A) in paragraph (1)—
(i) by inserting ‘‘the Governor, the
State legislature, and the State workforce
investment board’’ after ‘‘Secretary’’; and
(ii) by striking ‘‘including’’ and all
that follows through the period and insert-
ing ‘‘including the following:
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‘‘(A) Information on the levels of perform-
ance achieved by the eligible agency with respect
to the core indicators of performance, and em-
ployment performance indicators.
‘‘(B) The number and type of each eligible
provider that receives funding under such grant.
‘‘(C) The number of enrollees 16 to 18 years
of age who enrolled in adult education not later
than 1 year after participating in secondary
school education.’’;
(B) in paragraph (2)(A), by inserting ‘‘eli-
gible providers and’’ after ‘‘available to’’; and
(C) by adding at the end the following:
‘‘(3) DATA ACCESS.—The report made available
under paragraph (2) shall indicate which eligible
agencies did not have access to State unemployment
insurance wage data in measuring employment per-
formance indicators.’’; and
(3) by adding at the end the following:
‘‘(d) PROGRAM IMPROVEMENT.—
‘‘(1) IN GENERAL.—If the Secretary determines
that an eligible agency did not meet its adjusted levels
of performance for the core indicators of performance
described in subsection (b)(2)(A) for any program
year, the eligible agency shall—
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‘‘(A) work with the Secretary to develop and
implement a program improvement plan for the
2 program years succeeding the program year in
which the eligible agency did not meet its ad-
justed levels of performance; and
‘‘(B) revise its State plan under section
224, if necessary, to reflect the changes agreed to
in the program improvement plan.
‘‘(2) FURTHER ASSISTANCE.—If, after the period
described in paragraph (1)(A), the Secretary has pro-
vided technical assistance to the eligible agency but
determines that the eligible agency did not meet its
adjusted levels of performance for the core indicators
of performance described in subsection (b)(2)(A), the
Secretary may require the eligible agency to make
further revisions to the program improvement plan
described in paragraph (1). Such further revisions
shall be accompanied by further technical assistance
from the Secretary.’’.
SEC. 207. STATE ADMINISTRATION.
Section 221(1) of the Adult Education and Family
Literacy Act (20 U.S.C. 9221(1)) is amended by striking
‘‘and implementation’’ and inserting ‘‘implementation, and
monitoring’’.
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SEC. 208. STATE DISTRIBUTION OF FUNDS; MATCHING RE-
QUIREMENT.
Section 222 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9222) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘82.5’’ the first place
such term appears and inserting ‘‘80’’; and
(ii) by striking ‘‘the 82.5 percent’’ and
inserting ‘‘such amount’’;
(B) in paragraph (2), by striking ‘‘not more
than 12.5 percent’’ and inserting ‘‘not more than
15 percent’’; and
(C) in paragraph (3), by striking ‘‘$65,000’’
and inserting ‘‘$75,000’’; and
(2) in subsection (b)(1), by striking ‘‘equal to’’
and inserting ‘‘that is not less than’’.
SEC. 209. STATE LEADERSHIP ACTIVITIES.
Section 223 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9223) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1),
by inserting ‘‘to develop or enhance the adult
education system of the State’’ after ‘‘activities’’;
(B) in paragraph (1), by striking ‘‘instruc-
tion incorporating’’ and all that follows through
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the period and inserting ‘‘instruction incor-
porating the essential components of reading in-
struction and instruction provided by volunteers
or by personnel of a State or outlying area.’’;
(C) in paragraph (2), by inserting ‘‘, in-
cluding development and dissemination of in-
structional and programmatic practices based on
the most rigorous research available in reading,
writing, speaking, mathematics, English lan-
guage acquisition programs, distance learning
and staff training’’ after ‘‘activities’’;
(D) in paragraph (5), by striking ‘‘moni-
toring and’’;
(E) by striking paragraph (6) and inserting
the following:
‘‘(6) The development and implementation of
technology applications, translation technology, or
distance learning, including professional development
to support the use of instructional technology.’’; and
(F) by striking paragraph (7) through
paragraph (11) and inserting the following:
‘‘(7) Coordination with—
‘‘(A) other partners carrying out activities
authorized under this Act;
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‘‘(B) existing support services, such as
transportation, child care, mental health services,
and other assistance designed to increase rates of
enrollment in, and successful completion of adult
education and literacy activities, for adults en-
rolled in such activities.
‘‘(8) Developing and disseminating curricula, in-
cluding curricula incorporating the essential compo-
nents of reading instruction as they relate to adults.
‘‘(9) The provision of assistance to eligible pro-
viders in developing, implementing, and reporting
measurable progress in achieving the objectives of this
subtitle.
‘‘(10) The development and implementation of a
system to assist in the transition from adult basic
education to postsecondary education, including link-
ages with postsecondary educational institutions.
‘‘(11) Integration of literacy and English lan-
guage instruction with occupational skill training,
and promoting linkages with employers.
‘‘(12) Activities to promote workplace literacy
programs.
‘‘(13) Activities to promote and complement local
outreach initiatives described in section 243(b)(3)(F).
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‘‘(14) In cooperation with efforts funded under
sections 242 and 243, the development of curriculum
frameworks and rigorous content standards that—
‘‘(A) specify what adult learners should
know and be able to do in the areas of reading
and language arts, mathematics, and English
language acquisition; and
‘‘(B) take into consideration the following:
‘‘(i) State academic standards estab-
lished under section 1111(b) of the Elemen-
tary and Secondary Education Act of 1965.
‘‘(ii) The current adult skills and lit-
eracy assessments used in the State.
‘‘(iii) The core indicators of perform-
ance established under section 212(b)(2)(A).
‘‘(iv) Standards and academic require-
ments for enrollment in non-remedial, for-
credit, courses in State supported postsec-
ondary education institutions.
‘‘(v) Where appropriate, the basic and
literacy skill content of occupational and
industry skill standards widely used by
business and industry in the State.
‘‘(15) In cooperation with efforts funded under
sections 242 and 243, development and piloting of—
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‘‘(A) new assessment tools and strategies
that identify the needs and capture the gains of
students at all levels, with particular emphasis
on—
‘‘(i) students at the lowest achievement
level;
‘‘(ii) 
students 
who 
have 
limited
English proficiency; and
‘‘(iii) adults with learning disabilities;
‘‘(B) options for improving teacher quality
and retention; and
‘‘(C) assistance in converting research into
practice.
‘‘(16) The development and implementation of
programs and services to meet the needs of adult
learners with learning disabilities or limited English
proficiency.
‘‘(17) Other activities of statewide significance
that promote the purpose of this title.’’; and
(2) in subsection (c), by striking ‘‘being State- or
outlying area-imposed’’ and inserting ‘‘being imposed
by the State or outlying area’’.
SEC. 210. STATE PLAN.
Section 224 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9224) is amended—
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(1) in subsection (a)—
(A) by striking the heading and inserting
‘‘4-YEAR PLANS’’; and
(B) in paragraph (1), by striking ‘‘5’’ and
inserting ‘‘4’’;
(2) in subsection (b)—
(A) in paragraph (1), by inserting ‘‘and the
role of provider and cooperating agencies in pre-
paring the assessment’’ after ‘‘serve’’;
(B) by striking paragraph (2) and inserting
the following:
‘‘(2) a description of how the eligible agency will
address the adult education and literacy needs identi-
fied under paragraph (1) in each workforce develop-
ment area of the State, using funds received under
this subtitle, as well as other Federal, State, or local
funds received in partnership with other agencies for
the purpose of adult literacy as applicable;’’;
(C) in paragraph (3)—
(i) by inserting ‘‘and measure’’ after
‘‘evaluate’’;
(ii) by inserting ‘‘and improvement’’
after ‘‘effectiveness’’; and
(iii) by striking ‘‘212’’ and inserting
‘‘212, including—
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‘‘(5) a description of how the eligible agency will
improve teacher quality, the professional development
of eligible providers, and instruction;’’;
(G) in paragraph (6) (as redesignated by
subparagraph (E)), by striking ‘‘who’’ and all
that follows through the semicolon and inserting
‘‘that—
‘‘(A) offers flexible schedules and coordinates
with necessary Federal, State, and local support
services (such as child care, transportation, men-
tal health services, and case management) to en-
able individuals, including individuals with dis-
abilities or individuals with other special needs,
to participate in adult education and literacy
activities; and
‘‘(B) attempts to coordinate with support
services that are not provided under this subtitle
prior to using funds for adult education and lit-
eracy activities provided under this subtitle for
support services;’’;
(H) in paragraph (10) (as redesignated by
subparagraph (E)), by striking ‘‘plan’’ and in-
serting ‘‘plan, which process—
‘‘(A) shall include the State Workforce In-
vestment Board, the Governor, State officials
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representing public schools, community colleges,
welfare agencies, agencies that provide services to
individuals with disabilities, other State agencies
that promote or operate adult education and lit-
eracy activities, and direct providers of such
adult literacy services;
‘‘(B) may include consultation with the
State agency for higher education, institutions
responsible for professional development of adult
education and literacy education program in-
structors, institutions of higher education, rep-
resentatives of business and industry, refugee as-
sistance programs, and community-based organi-
zations, as defined in section 101;’’;
(I) in paragraph (11) (as redesignated by
subparagraph (E))—
(i) by inserting ‘‘assess potential popu-
lation needs and’’ after ‘‘will’’;
(ii) in subparagraph (A), by striking
‘‘students’’ and inserting ‘‘individuals’’;
(iii) in subparagraph (C), by striking
‘‘and’’ after the semicolon; and
(iv) by adding at the end the following:
‘‘(E) the unemployed; and
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‘‘(F) those who are employed, but at levels
below self-sufficiency, as defined in section 101.’’;
(J) in paragraph (12) (as redesignated by
subparagraph (E))—
(i) by inserting ‘‘and how the plan
submitted under this subtitle is coordinated
with the plan submitted by the State under
title I’’ after ‘‘eligible agency’’; and
(ii) by striking ‘‘and’’ after the semi-
colon;
(K) in paragraph (13) (as redesignated by
subparagraph (E)), by striking ‘‘231(c)(1).’’ and
inserting ‘‘231(c)(1), including—
‘‘(A) how the State will build the capacity
of organizations that provide adult education
and literacy activities; and
‘‘(B) how the State will increase the partici-
pation of business and industry in adult edu-
cation and literacy activities;’’; and
(L) by adding at the end the following:
‘‘(14) a description of how the eligible agency
will consult with any State agency responsible for
postsecondary education to develop adult education
programs and services (including academic skill de-
velopment and support services) that prepare students
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to enter postsecondary education upon completion of
secondary school programs or their recognized equiva-
lent;
‘‘(15) a description of how the eligible agency
will consult with the State agency responsible for
workforce development to develop adult education pro-
grams and services that are designed to prepare stu-
dents to enter the workforce; and
‘‘(16) a description of how the eligible agency
will improve the professional development of eligible
providers of adult education and literacy activities.’’;
(3) in subsection (c), by adding at the end the
following: ‘‘At the end of the first 2-year period of the
4-year State plan, the eligible agency shall review
and, as needed, revise the 4-year State plan.’’; and
(4) in subsection (d)—
(A) in paragraph (1), by inserting ‘‘, the
chief State school officer, the State officer respon-
sible for administering community and technical
colleges, and the State Workforce Investment
Board’’ after ‘‘Governor’’; and
(B) in paragraph (2), by striking ‘‘com-
ments’’ and all that follows through the period
and inserting ‘‘comments regarding the State
plan by the Governor, the chief State school offi-
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cer, the State officer responsible for admin-
istering community and technical colleges, and
the State Workforce Investment Board, and any
revision to the State plan, are submitted to the
Secretary.’’.
SEC. 211. PROGRAMS FOR CORRECTIONS EDUCATION AND
OTHER INSTITUTIONALIZED INDIVIDUALS.
Section 225 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9225) is amended—
(1) in subsection (b)—
(A) in paragraph (1), by striking ‘‘basic
education’’ and inserting ‘‘adult education and
literacy activities’’;
(B) in paragraph (2), by inserting ‘‘and’’
after the semicolon;
(C) by striking paragraph (3); and
(D) by redesignating paragraph (4) as
paragraph (3); and
(2) in subsection (d), by striking ‘‘DEFINITION
OF CRIMINAL OFFENDER.—’’ and inserting ‘‘DEFINI-
TIONS.—In this section:’’.
SEC. 212. GRANTS AND CONTRACTS FOR ELIGIBLE PRO-
VIDERS.
Section 231 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9241) is amended—
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(1) in subsection (b)—
(A) in paragraph (1), by striking ‘‘work-
place literacy services’’ and inserting ‘‘workplace
literacy programs’’; and
(B) in paragraph (3), by striking ‘‘literacy’’
and inserting ‘‘language acquisition’’;
(2) in subsection (e)—
(A) in paragraph (1), by inserting ‘‘to be
achieved annually on the core indicators of per-
formance and employment performance indica-
tors described in section 212(b)(2)’’ after ‘‘out-
comes’’;
(B) by striking paragraph (3) and inserting
the following:
‘‘(3) the commitment of the eligible provider to
be responsive to local needs and to serve individuals
in the community who were identified by the assess-
ment as most in need of adult literacy services, in-
cluding individuals who are low-income, have mini-
mal literacy skills, have learning disabilities, or have
limited English proficiency;’’;
(C) in paragraph (4)(B), by striking ‘‘,
such as’’ and all that follows through the semi-
colon and inserting ‘‘that include the essential
components of reading instruction;’’;
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(D) in paragraph (5), by striking ‘‘re-
search’’ and inserting ‘‘the most rigorous re-
search available’’;
(E) in paragraph (7), by inserting ‘‘, when
appropriate and based on the most rigorous re-
search available,’’ after ‘‘real life contexts’’;
(F) in paragraph (9), by inserting ‘‘edu-
cation, job-training, and social service’’ after
‘‘other available’’;
(G) in paragraph (10)—
(i) by inserting ‘‘coordination with
Federal, State, and local’’ after ‘‘schedules
and’’; and
(ii) by striking ‘‘and transportation’’
and inserting ‘‘, transportation, mental
health services, and case management’’;
(H) in paragraph (11)—
(i) by inserting ‘‘measurable’’ after
‘‘report’’;
(ii) by striking ‘‘eligible agency’’;
(iii) by inserting ‘‘established by the el-
igible agency’’ after ‘‘performance meas-
ures’’; and
(iv) by striking ‘‘and’’ after the semi-
colon;
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(I) in paragraph (12), by striking ‘‘literacy
programs.’’ and inserting ‘‘language acquisition
programs and civics education programs;’’; and
(J) by adding at the end the following:
‘‘(13) the capacity of the eligible provider to
produce information on performance results, includ-
ing enrollments and measurable participant out-
comes;
‘‘(14) whether reading, writing, speaking, mathe-
matics, and English language acquisition instruction
provided by the eligible provider are based on the best
practices derived from the most rigorous research
available;
‘‘(15) whether the eligible provider’s applications
of technology and services to be provided are sufficient
to increase the amount and quality of learning and
lead to measurable learning gains within specified
time periods; and
‘‘(16) the capacity of the eligible provider to
serve adult learners with learning disabilities.’’.
SEC. 213. LOCAL APPLICATION.
Section 232 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9242) is amended—
(1) in paragraph (1)—
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(A) by inserting ‘‘consistent with the re-
quirements of this subtitle’’ after ‘‘spent’’; and
(B) by striking ‘‘and’’ after the semicolon;
(2) in paragraph (2), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(3) information that addresses each of the con-
siderations required under section 231(e).’’.
SEC. 214. LOCAL ADMINISTRATIVE COST LIMITS.
Section 233 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9243) is amended—
(1) in subsection (a)(2)—
(A) by inserting ‘‘and professional’’ after
‘‘personnel’’; and
(B) by inserting ‘‘development of measur-
able goals in reading, writing, and speaking the
English language, and in mathematical com-
putation,’’ after ‘‘development,’’; and
(2) in subsection (b)—
(A) by inserting ‘‘and professional’’ after
‘‘personnel’’; and
(B) by inserting ‘‘development of measur-
able goals in reading, writing, and speaking the
English language, and in mathematical com-
putation,’’ after ‘‘development,’’.
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SEC. 215. ADMINISTRATIVE PROVISIONS.
Section 241(b) of the Adult Education and Family
Literacy Act (20 U.S.C. 9251(b)) is amended—
(1) in paragraph (1)(A)—
(A) by striking ‘‘adult education and lit-
eracy activities’’ both places such terms appear
and inserting ‘‘activities under this subtitle’’;
and
(B) by striking ‘‘was’’ and inserting
‘‘were’’; and
(2) in paragraph (4)—
(A) by inserting ‘‘not more than’’ after
‘‘this subsection for’’; and
(B) by striking ‘‘only’’.
SEC. 216. NATIONAL INSTITUTE FOR LITERACY.
Section 242 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9252) is amended—
(1) in subsection (a)—
(A) in paragraph (1), by striking ‘‘literacy’’
and inserting ‘‘effective literacy programs for
children, youth, adults, and families’’;
(B) in paragraph (2), by inserting ‘‘and
disseminates information on’’ after ‘‘coordi-
nates’’; and
(C) by striking paragraph (3)(A) and in-
serting the following:
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‘‘(A) coordinating and participating in the
Federal effort to identify and disseminate infor-
mation on literacy that is derived from scientif-
ically based research, or the most rigorous re-
search available and effective programs that
serve children, youth, adults, and families; and’’;
(2) by striking subsection (b)(3) and inserting
the following:
‘‘(3) 
RECOMMENDATIONS.—The 
Interagency
Group, in consultation with the National Institute for
Literacy Advisory Board (in this section referred to
as the ‘Board’) established under subsection (e), shall
plan the goals of the Institute and the implementation
of any programs to achieve the goals. The Board may
also request a meeting of the Interagency Group to
discuss any recommendations the Board may make.’’;
(3) in subsection (c)—
(A) in paragraph (1)—
(i) in subparagraph (A)—
(I) by striking ‘‘to establish’’ and
inserting ‘‘to maintain’’;
(II) in clause (i), by striking
‘‘phonemic 
awareness, 
systematic
phonics, fluency, and reading com-
prehension’’ and inserting ‘‘the essen-
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tial components of reading instruc-
tion’’;
(III) in clause (iii), by striking
‘‘and’’ after the semicolon;
(IV) in clause (iv), by inserting
‘‘and’’ after the semicolon; and
(V) by adding at the end the fol-
lowing:
‘‘(v) a list of local adult education and
literacy programs;’’;
(ii) in subparagraph (C)—
(I) by striking ‘‘reliable and
replicable research’’ and inserting ‘‘re-
liable and replicable research as de-
fined by the Institute of Education
Sciences’’; and
(II) by striking ‘‘especially with
the Office of Educational Research and
Improvement in the Department of
Education,’’;
(iii) in subparagraph (D), by striking
‘‘phonemic awareness, systematic phonics,
fluency, and reading comprehension based
on’’ and inserting ‘‘the essential components
of reading instruction and’’;
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(iv) in subparagraph (H), by striking
‘‘and’’ after the semicolon;
(v) in subparagraph (I), by striking
the period at the end and inserting a semi-
colon; and
(vi) by adding at the end the following:
‘‘(J) to work cooperatively with the Depart-
ment of Education to assist States that are pur-
suing the implementation of standards-based
educational improvements for adults through the
dissemination of training, technical assistance,
and related support and through the development
and dissemination of related standards-based as-
sessment instruments; and
‘‘(K) to identify rigorous research on the ef-
fectiveness of instructional practices and organi-
zational strategies relating to literacy programs
on the acquisition of skills in reading, writing,
English acquisition, and mathematics.’’; and
(B) by adding at the end the following:
‘‘(3) COORDINATION.—In identifying the reliable
and replicable research the Institute will support, the
Institute shall use standards for research quality that
are consistent with those of the Institute of Education
Sciences.’’;
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(4) in subsection (e)—
(A) in paragraph (1)(B)—
(i) in clause (i), by striking ‘‘literacy
programs’’ and inserting ‘‘language acquisi-
tion programs’’;
(ii) in clause (ii), by striking ‘‘literacy
programs’’ and inserting ‘‘or have partici-
pated in or partnered with workplace lit-
eracy programs’’;
(iii) in clause (iv), by inserting ‘‘, in-
cluding adult literacy research’’ after ‘‘re-
search’’;
(iv) in clause (vi), by striking ‘‘and’’
after the semicolon;
(v) in clause (vii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(vi) by adding at the end the following:
‘‘(viii) institutions of higher edu-
cation.’’;
(B) in paragraph (2)—
(i) in subparagraph (B), by striking
‘‘and’’ after the semicolon;
(ii) in subparagraph (C), by striking
the period at the end and inserting ‘‘; and’’;
and
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(iii) by adding at the end the fol-
lowing:
‘‘(D) review the biennial report submitted to
Congress pursuant to subsection (k).’’; and
(C) in paragraph (5), by striking the second
sentence and inserting the following: ‘‘A rec-
ommendation of the Board may be passed only
by a majority of the Board’s members present at
a meeting for which there is a quorum.’’; and
(5) in subsection (k)—
(A) by striking ‘‘Labor and Human Re-
sources’’ and inserting ‘‘Health, Education,
Labor, and Pensions’’; and
(B) by striking ‘‘The Institute shall submit
a report biennially to’’ and inserting ‘‘Not later
than 1 year after the date of enactment of the
Adult Education and Family Literacy Act
Amendments of 2003, and biennially thereafter,
the Institute shall submit a report to’’.
SEC. 217. NATIONAL LEADERSHIP ACTIVITIES.
Section 243 of the Adult Education and Family Lit-
eracy Act (20 U.S.C. 9253) is amended to read as follows:
‘‘SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.
‘‘(a) IN GENERAL.—The Secretary shall establish and
carry out a program of national leadership activities to en-
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hance the quality of adult education and literacy programs
nationwide.
‘‘(b) PERMISSIVE ACTIVITIES.—The national leader-
ship activities described in subsection (a) may include the
following:
‘‘(1) Technical assistance, including—
‘‘(A) assistance provided to eligible pro-
viders in developing and using performance
measures for the improvement of adult education
and literacy activities, including family literacy
services;
‘‘(B) assistance related to professional devel-
opment activities, and assistance for the pur-
poses of developing, improving, identifying, and
disseminating the most successful methods and
techniques for providing adult education and lit-
eracy activities, including family literacy serv-
ices, based on scientific evidence where available;
‘‘(C) assistance in distance learning and
promoting and improving the use of technology
in the classroom;
‘‘(D) assistance in developing valid, meas-
urable, and reliable performance data, including
data around employment and employment out-
come, and using performance information for the
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improvement of adult education and literacy
programs; and
‘‘(E) assistance to help States, particularly
low-performing States, meet the requirements of
section 212.
‘‘(2) A program of grants, contracts, or coopera-
tive agreements awarded on a competitive basis to na-
tional, regional, or local networks of private nonprofit
organizations, public libraries, or institutions of high-
er education to build the capacity of such networks’
members to meet the performance requirements of eli-
gible providers under this title and involve adult
learners in program improvement.
‘‘(3) Funding national leadership activities that
are not described in paragraph (1), either directly or
through grants, contracts, or cooperative agreements
awarded on a competitive basis to or with postsec-
ondary educational institutions, public or private or-
ganizations or agencies, or consortia of such institu-
tions, organizations, or agencies, such as—
‘‘(A) developing, improving, and identifying
the most successful methods and techniques for
addressing the education needs of adults, includ-
ing instructional practices using the essential
components of reading instruction based on the
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work of the National Institute of Child Health
and Human Development;
‘‘(B) increasing the effectiveness of, and im-
proving the quality of, adult education and lit-
eracy activities, including family literacy serv-
ices;
‘‘(C) carrying out research on national lit-
eracy basic skill acquisition for adult learning,
including estimating the number of adults func-
tioning at the lowest levels of literacy pro-
ficiency;
‘‘(D)(i) carrying out demonstration pro-
grams;
‘‘(ii) disseminating best practices informa-
tion, including information regarding promising
practices resulting from federally funded dem-
onstration programs; and
‘‘(iii) developing and replicating best prac-
tices and innovative programs, including—
‘‘(I) the development of models for
basic skill certificates;
‘‘(II) the identification of effective
strategies for working with adults with
learning disabilities and with adults with
limited English proficiency;
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‘‘(III) integrated basic and workplace
skills education programs;
‘‘(IV) coordinated literacy and employ-
ment services; and
‘‘(V) postsecondary education transi-
tion programs;
‘‘(E) providing for the conduct of an inde-
pendent evaluation and assessment of adult edu-
cation and literacy activities through studies
and analyses conducted independently through
grants and contracts awarded on a competitive
basis, which evaluation and assessment shall in-
clude descriptions of—
‘‘(i) the effect of performance measures
and other measures of accountability on the
delivery of adult education and literacy ac-
tivities, including family literacy services;
‘‘(ii) the extent to which the adult edu-
cation and literacy activities, including
family literacy services, increase the lit-
eracy skills of adults (and of children, in
the case of family literacy services), lead the
participants in such activities to involve-
ment in further education and training, en-
hance the employment and earnings of such
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participants, and, if applicable, lead to
other positive outcomes, such as reductions
in recidivism in the case of prison-based
adult education and literacy activities;
‘‘(iii) the extent to which the provision
of support services to adults enrolled in
adult education and family literacy pro-
grams increase the rate of enrollment in,
and successful completion of, such pro-
grams; and
‘‘(iv) the extent to which different types
of providers measurably improve the skills
of participants in adult education and lit-
eracy programs;
‘‘(F) supporting efforts aimed at capacity
building of programs at the State and local levels
such as technical assistance in program plan-
ning, assessment, evaluation, and monitoring of
activities carried out under this subtitle;
‘‘(G) collecting data, such as data regarding
the improvement of both local and State data
systems, through technical assistance and devel-
opment of model performance data collection sys-
tems;
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‘‘(H) supporting the development of an enti-
ty that would produce and distribute technology-
based programs and materials for adult edu-
cation and literacy programs using an inter-
connection system (as defined in section 397 of
the Communications Act of 1934 (47 U.S.C.
397)) and expand the effective outreach and use
of such programs and materials to adult edu-
cation eligible providers;
‘‘(I) determining how participation in
adult education and literacy activities prepares
individuals for entry into postsecondary edu-
cation and employment and, in the case of pris-
on-based services, has an effect on recidivism;
and
‘‘(J) other activities designed to enhance the
quality of adult education and literacy activities
nationwide.’’.
SEC. 218. INTEGRATED ENGLISH LITERACY AND CIVICS
EDUCATION.
Chapter 4 of subtitle A of title II (29 U.S.C. 9251 et
seq.) is amended by adding at the end the following:
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‘‘SEC. 244. INTEGRATED ENGLISH LITERACY AND CIVICS
EDUCATION.
‘‘(a) IN GENERAL.—From funds made available under
section 211(a)(4) for each fiscal year the Secretary shall
award grants to States, from allotments under subsection
(b), for integrated English literacy and civics education.
‘‘(b) ALLOTMENT.—
‘‘(1) IN
GENERAL.—Subject to paragraph (2),
from amounts made available under section 211(a)(4)
for a fiscal year the Secretary shall allocate—
‘‘(A) 65 percent to the States on the basis
of a State’s need for integrated English literacy
and civics education as determined by calcu-
lating each State’s share of a 10-year average of
the Immigration and Naturalization Service
data for immigrants admitted for legal perma-
nent residence for the 10 most recent years; and
‘‘(B) 35 percent to the States on the basis
of whether the State experienced growth as meas-
ured by the average of the 3 most recent years
for which Immigration and Naturalization Serv-
ice data for immigrants admitted for legal per-
manent residence are available.
‘‘(2) MINIMUM.—No State shall receive an allot-
ment under paragraph (1) in an amount that is less
than $60,000.’’.
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SEC. 219. TRANSITION.
The Secretary shall take such steps as the Secretary
determines to be appropriate to provide for the orderly tran-
sition to the authority of the Adult Education and Family
Literacy Act (as amended by this title) from any authority
under provisions of the Adult Education and Family Lit-
eracy Act (as such Act was in effect on the day before the
date of enactment of the Adult Education and Family Lit-
eracy Act Amendments of 2003.
TITLE III—AMENDMENTS TO
OTHER PROVISIONS OF LAW
SEC. 301. WAGNER-PEYSER ACT.
(a) CONFORMING AMENDMENT.—Section 2(3) of the
Wagner-Peyser Act (29 U.S.C. 49a(3)) is amended by strik-
ing ‘‘section 134(c)’’ and inserting ‘‘section 121(e)’’.
(b) COLOCATION.—Section 3 of the Wagner-Peyser Act
(29 U.S.C. 49b) is amended by adding at the end the fol-
lowing:
‘‘(d) In order to avoid duplication of services and en-
hance integration of services, employment services offices in
each State shall be colocated with comprehensive one-stop
centers established under title I of the Workforce Investment
Act of 1998.’’.
(c) COOPERATIVE STATISTICAL PROGRAM.—Section
14 of the Wagner-Peyser Act (29 U.S.C. 49l–1) is amended
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by striking the section heading and all that follows through
‘‘There’’ and inserting the following:
‘‘SEC. 14. COOPERATIVE STATISTICAL PROGRAM.
‘‘There’’.
(d) WORKFORCE AND LABOR MARKET INFORMATION
SYSTEM.—Section 15 of the Wagner-Peyser Act (29 U.S.C.
49l–2) is amended—
(1) by striking the section heading and inserting
the following:
‘‘SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION
SYSTEM.’’;
(2) by striking ‘‘employment statistics system’’
each place it appears and inserting ‘‘workforce and
labor market information system’’;
(3) in subsection (a)(1), by striking ‘‘of employ-
ment statistics’’;
(4) in subsection (b)(2)(E)—
(A) in clause (i), by adding ‘‘and’’ at the
end;
(B) in clause (ii), by striking ‘‘; and’’ and
inserting a period; and
(C) by striking clause (iii);
(5) by striking subsections (c) and (d) and in-
serting the following:
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‘‘(c) NATIONAL ELECTRONIC TOOLS TO PROVIDE
SERVICES.—The Secretary, in consultation with States, is
authorized to assist in the development of national elec-
tronic tools that may be used to improve access to workforce
information for individuals through—
‘‘(1) the one-stop delivery systems established
under section 121(e); and
‘‘(2) such other delivery systems as the Secretary
determines to be appropriate.
‘‘(d) TWO-YEAR
PLAN.—The Secretary, working
through the Bureau of Labor Statistics, and in cooperation
with the States and with the assistance of the Employment
and Training Administration and other appropriate Fed-
eral agencies, shall prepare a 2-year plan which shall be
the mechanism for achieving cooperative management of the
nationwide workforce and labor market information system
described in subsection (a) and the statewide workforce and
labor market information systems that comprise the nation-
wide system. The plan shall—
‘‘(1) describe the steps the to be taken in the fol-
lowing 2 years to carry out the duties described in
subsection (b)(2);
‘‘(2) evaluate the performance of the system and
recommend needed improvements, with particular at-
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tention to the improvements needed at the State and
local levels; and
‘‘(3) describe the involvement of States in the de-
velopment of the plan, pursuant to a process estab-
lished by the Secretary in cooperation with the States
in accordance with subsection (i).’’;
(6) in subsection (e)(2)—
(A) in subparagraph (G), by adding ‘‘and’’
at the end;
(B) by striking subparagraph (H); and
(C) by redesignating subparagraph (I) as
subparagraph (H);
(7) in subsection (g), by striking ‘‘1999 through
2004’’ and inserting ‘‘2004 through 2009 to enable the
Secretary to carry out the provisions of this section
in a timely manner through grants or cooperative
agreements with the States’’;
(8) in subsection (g)—
(A) by striking ‘‘There are’’ and inserting
the following:
‘‘(1) IN GENERAL.—There are’’; and
(B) by adding at the end the following:
‘‘(2) DISTRIBUTION OF FUNDS.—With regard to
distributing funds appropriated under paragraph (1)
(relating to workforce and labor market information
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funding) for fiscal years 2004 through 2009, the Sec-
retary shall continue to distribute the funds to the
States in the manner in which the Secretary distrib-
uted funds to the States under this section for fiscal
years 1999 through 2003.’’; and
(9) by adding at the end the following:
‘‘(i) COORDINATION WITH THE STATES.—The Sec-
retary, working though the Bureau of Labor Statistics and
in coordination with the Employment and Training Ad-
ministration, shall consult at least annually with represent-
atives of each of the 10 Federal regions of the Department
of Labor, elected (pursuant to a process established by the
Secretary) by and from the State workforce and labor mar-
ket information directors affiliated with the State agencies
that perform the duties described in subsection (e)(2).’’.
TITLE IV—REHABILITATION ACT
AMENDMENTS
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘Rehabilitation Act
Amendments of 2003’’.
SEC. 402. TECHNICAL AMENDMENTS TO TABLE OF CON-
TENTS.
(a) INCENTIVE GRANTS.—Section 1(b) of the Rehabili-
tation Act of 1973 (29 U.S.C. 701 note) is amended by in-
serting after the item relating to section 112 the following:
‘‘Sec. 113. Incentive grants.’’.
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(b) INDEPENDENT LIVING SERVICES FOR OLDER INDI-
VIDUALS WHO ARE BLIND.—Section 1(b) of the Rehabilita-
tion Act of 1973 (29 U.S.C. 701 note) is amended by strik-
ing the items relating to sections 752 and 753 and inserting
the following:
‘‘Sec. 752. Training and technical assistance.
‘‘Sec. 753. Program of grants.
‘‘Sec. 754. Authorization of appropriations.’’.
SEC. 403. PURPOSE.
Section 2(b) of the Rehabilitation Act of 1973 (29
U.S.C. 701(b)) is amended—
(1) in paragraph (1)(F), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (2), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(3) to provide opportunities for employers and
rehabilitation service providers to provide meaningful
input at all levels of government to ensure successful
employment of individuals with disabilities.’’.
SEC. 404. DEFINITIONS.
Section 7 of the Rehabilitation Act of 1973 (29 U.S.C.
705) is amended—
(1) in paragraph (2)(B)—
(A) in the matter preceding clause (i), by
inserting ‘‘and literacy services’’ after ‘‘sup-
ported employment’’; and
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(B) in clause (iii), by inserting ‘‘and lit-
eracy skills’’ after ‘‘educational achievements’’;
(2) by striking paragraph (7) and inserting the
following:
‘‘(7) CONSUMER ORGANIZATION.—The term ‘con-
sumer organization’ means a membership organiza-
tion in which a majority of the organization’s mem-
bers and a majority of the organization’s officers are
individuals with disabilities.’’;
(3) in paragraph (17)—
(A) in subparagraph (C), by striking ‘‘and’’
after the semicolon;
(B) in subparagraph (D), by striking the
period at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(E) maintaining individuals with signifi-
cant disabilities in, or transitioning individuals
with significant disabilities to, community-based
living.’’;
(4) by redesignating paragraphs (24) through
(28), (29) through (34), and (35) through (39), as
paragraphs (25) through (29), (31) through (36), and
(38) through (42), respectively;
(5) by inserting after paragraph (23) the fol-
lowing:
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‘‘(24) LITERACY.—The term ‘literacy’ has the
meaning given the term in section 203 of the Adult
Education and Family Literacy Act (20 U.S.C.
9202).’’;
(6) by inserting after paragraph (29), as redesig-
nated by paragraph (4), the following:
‘‘(30) POST-EMPLOYMENT
SERVICE.—The term
‘post-employment’ service means a service identified
in section 103(a) that is—
‘‘(A) provided subsequent to the achievement
of an employment outcome; and
‘‘(B) necessary for an individual to main-
tain, regain, or advance in employment, con-
sistent with the individual’s strengths, resources,
priorities, concerns, abilities, capabilities, inter-
ests, and informed choice.’’;
(7) by inserting after paragraph (36), as redesig-
nated by paragraph (4), the following:
‘‘(37) STUDENT WITH A DISABILITY.—
‘‘(A) IN GENERAL.—The term ‘student with
a disability’ means an individual with a dis-
ability who attends an elementary school or sec-
ondary school and who—
‘‘(i) is not younger than 14 years of
age;
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‘‘(ii) is not older than 21 years of age;
‘‘(iii) has been determined to be eligible
under section 102(a) for assistance under
title I; and
‘‘(iv)(I) is eligible for, and receiving,
special education and related services under
part B of the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.); or
‘‘(II) is an individual with a dis-
ability, for purposes of section 504.
‘‘(B) STUDENTS WITH DISABILITIES.—The
term ‘students with disabilities’ means more
than 1 student with a disability.’’; and
(8) in paragraph (38)(A)(ii), as redesignated by
paragraph (4), by striking ‘‘paragraph (36)(C)’’ and
inserting ‘‘paragraph (39)(C)’’.
SEC. 405. ADMINISTRATION OF THE ACT.
Section 12(a)(1) of the Rehabilitation Act of 1973 (29
U.S.C. 709(a)(1)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’;
(2) by striking the semicolon and inserting ‘‘;
and’’; and
(3) by adding at the end the following:
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‘‘(B) provide technical assistance to the des-
ignated State units on developing successful partner-
ships with employers;’’.
SEC. 406. CARRYOVER.
Section 19 of the Rehabilitation Act of 1973 (29 U.S.C.
716) is amended—
(1) in subsection (a)(1)—
(A) by striking ‘‘, section 509 (except as
provided in section 509(b))’’;
(B) by striking ‘‘or (C)’’; and
(C) by striking ‘‘752(b)’’ and inserting
‘‘753(b)’’; and
(2) by adding at the end the following:
‘‘(c) PROTECTION
AND ADVOCACY
OF INDIVIDUAL
RIGHTS.—
‘‘(1) 
APPROPRIATED
AMOUNTS.—Notwith-
standing any other provision of law, any funds ap-
propriated for a fiscal year to carry out a grant pro-
gram under section 509 (except as provided in section
509(b)), including any funds reallotted under such
grant program, that are not obligated and expended
by recipients prior to the beginning of the succeeding
fiscal year shall remain available for obligation and
expenditure by such recipients during such succeeding
fiscal year.
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‘‘(2) PROGRAM
INCOME.—Notwithstanding any
other provision of law, any amounts of program in-
come received by recipients under a grant program
under section 509 in a fiscal year that are not obli-
gated and expended by recipients prior to the begin-
ning of the succeeding fiscal year, shall remain avail-
able until expended.’’.
Subtitle A—Vocational
Rehabilitation Services
SEC. 411. DECLARATION OF POLICY; AUTHORIZATION OF
APPROPRIATIONS.
Section 100(b)(1) of the Rehabilitation Act of 1973 (29
U.S.C. 720(b)(1)) is amended by striking ‘‘fiscal years 1999
through 2003’’ and inserting ‘‘fiscal years 2004 through
2009’’.
SEC. 412. STATE PLANS.
Section 101(a) of the Rehabilitation Act of 1973 (29
U.S.C. 721(a)) is amended—
(1) in paragraph (6)(B), by striking ‘‘to employ
and advance in employment’’ and inserting ‘‘to re-
cruit, employ, and advance in employment’’;
(2) in paragraph (7)(A)(v), by striking subclause
(I) and inserting the following:
‘‘(I) a system for the continuing
education 
of 
rehabilitation 
profes-
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sionals and paraprofessionals within
the designated State unit, particularly
with respect to rehabilitation tech-
nology, 
including 
training 
imple-
mented in coordination with State pro-
grams carried out under section 101 of
the Assistive Technology Act of 1998
(29 U.S.C. 3011); and’’;
(3) in paragraph (8)(A), by adding at the end
the following:
‘‘(iii) SERVICES IDENTIFIED IN INDI-
VIDUALIZED WORK PLAN.—For purposes of
clause (i), for an individual who receives
assistance under the Ticket to Work and
Self-Sufficiency Program established under
section 1148 of the Social Security Act (42
U.S.C. 1320b–19), comparable benefits and
services available under such program only
include those benefits and services identified
in the individual’s individualized work
plan developed by an employment network
pursuant to such section.’’;
(4) in paragraph (10)—
(A) in subparagraph (B), by striking ‘‘an-
nual reporting on the eligible individuals receiv-
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ing the services, on those specific data elements
described in section 136(d)(2) of the Workforce
Investment Act of 1998’’ and inserting ‘‘annual
reporting of information on eligible individuals
receiving services that is needed to assess per-
formance on the core indicators of performance
described in section 136(b)(2)(A)(i) of the Work-
force Investment Act of 1998’’;
(B) in subparagraph (C), by striking
clauses (iii) and (iv) and inserting the following:
‘‘(iii) the number of applicants and el-
igible recipients, including the number of
individuals with significant disabilities,
who exited the program carried out under
this title and the number of such individ-
uals who achieved employment outcomes
after receiving vocational rehabilitation
services; and
‘‘(iv) the number of individuals who
received vocational rehabilitation services
who entered and retained employment and
the increases in earnings of such individ-
uals, consistent with State reporting respon-
sibilities pursuant to section 136(b)(2)(A)(i)
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of the Workforce Investment Act of 1998.’’;
and
(C) in subparagraph (E)(ii), by striking
‘‘in meeting’’ and all that follows through the pe-
riod and inserting ‘‘in meeting the standards
and indicators established pursuant to section
106.’’;
(5) in paragraph (11)—
(A) by striking subparagraph (C) and in-
serting the following:
‘‘(C) INTERAGENCY
COOPERATION
WITH
OTHER AGENCIES.—The State plan shall include
descriptions of interagency cooperation with, and
utilization of the services and facilities of, Fed-
eral, State, and local agencies and programs, in-
cluding the State programs carried out under
section 101 of the Assistive Technology Act of
1998 (29 U.S.C. 3011), programs carried out by
the Under Secretary for Rural Development of
the Department of Agriculture, and State use
contracting programs, to the extent that such
agencies and programs are not carrying out ac-
tivities through the statewide workforce invest-
ment system.’’;
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(B) by striking subparagraph (D)(ii) and
inserting the following:
‘‘(ii) transition planning by personnel
of the designated State agency and the State
educational agency that will facilitate the
development and completion of the individ-
ualized education programs under section
614(d) of the Individuals with Disabilities
Education Act (20 U.S.C. 1414(d)) and, as
appropriate, the development and comple-
tion of the individualized plan for employ-
ment, in order to achieve post-school em-
ployment outcomes of students with disabil-
ities;’’; and
(C) by adding at the end the following:
‘‘(G) COORDINATION WITH TICKET TO WORK
AND
SELF-SUFFICIENCY
PROGRAM.—The State
plan shall provide that the designated State unit
will coordinate activities with any other State
agency that administers a Ticket to Work and
Self-Sufficiency Program established under sec-
tion 1148 of the Social Security Act (42 U.S.C.
1320b–19).’’; and
(6) in paragraph (20)—
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(A) by redesignating subparagraph (B) as
subparagraph (D);
(B) by inserting after subparagraph (A) the
following:
‘‘(B) INFORMATION
ON
ASSISTANCE
FOR
BENEFICIARIES OF ASSISTANCE UNDER TITLE II
OR
XVI
OF
THE
SOCIAL
SECURITY
ACT.—The
State plan shall include an assurance that the
designated State agency will make available to
individuals entitled to benefits under title II or
XVI of the Social Security Act (42 U.S.C. 401
et seq., 1381 et seq.) on the basis of a disability
or blindness, information on the availability
of—
‘‘(i) medical assistance under the State
medicaid program under title XIX of the
Social Security Act (42 U.S.C. 1396 et
seq.);
‘‘(ii) benefits under the medicare pro-
gram under title XVIII of the Social Secu-
rity Act (42 U.S.C. 1395 et seq.);
‘‘(iii) assistance through benefits plan-
ning and assistance programs under section
1149 of the Social Security Act (42 U.S.C.
1320b–20) and protection and advocacy
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programs under section 1150 of the Social
Security Act (42 U.S.C. 1320b–21); and
‘‘(iv) medical assistance under other
federally funded programs.
‘‘(C) 
INFORMATION
FOR
INDIVIDUALS
UNDER THE TICKET TO WORK PROGRAM.—The
State plan shall include an assurance that the
designated State agency will make available to
individuals entitled to benefits under title II or
XVI of the Social Security Act (42 U.S.C. 401
et seq., 1381 et seq.) on the basis of a disability
or blindness and eligible for assistance under the
Ticket to Work and Self-Sufficiency Program es-
tablished under section 1148 of the Social Secu-
rity Act (42 U.S.C. 1320b–19), general informa-
tion regarding the Ticket to Work and Self-Suffi-
ciency Program and specific information on how
to contact the program manager of the Ticket to
Work and Self-Sufficiency Program to obtain in-
formation on approved employment networks.’’;
and
(C) in subparagraph (D)(ii), as redesig-
nated by subparagraph (A)—
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(i) in subclause (II), by inserting ‘‘, to
the maximum extent possible,’’ after ‘‘point
of contact’’; and
(ii) in subclause (III), by striking ‘‘or
regain’’ and inserting ‘‘regain, or advance
in’’.
SEC. 413. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR EM-
PLOYMENT.
Section 102 of the Rehabilitation Act of 1973 (29
U.S.C. 722) is amended—
(1) in subsection (b)—
(A) in paragraph (1)—
(i) in subparagraph (A), by striking
the semicolon at the end and inserting ‘‘,
including a listing of all the community re-
sources (including resources from consumer
organizations), to the maximum extent pos-
sible, to assist in the development of such
individual’s individualized plan for em-
ployment to enable the individual to make
informed and effective choices in developing
the individualized plan for employment;’’;
and
(ii) in subparagraph (D)—
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(I) in clause (i), by striking
‘‘and’’ after the semicolon;
(II) in clause (ii), by striking the
period at the end and inserting a semi-
colon; and
(III) by adding at the end the fol-
lowing:
‘‘(iii) for individuals entitled to benefits
under title II or XVI of the Social Security Act
(42 U.S.C. 401 et seq., 1381 et seq.) on the basis
of a disability or blindness, information on the
availability of—
‘‘(I) medical assistance under the State
medicaid program under title XIX of the
Social Security Act (42 U.S.C. 1396 et
seq.);
‘‘(II) benefits under the medicare pro-
gram under title XVIII of the Social Secu-
rity Act (42 U.S.C. 1395 et seq.);
‘‘(III) assistance through benefits plan-
ning and assistance programs under section
1149 of the Social Security Act (42 U.S.C.
1320b–20) and protection and advocacy
programs under section 1150 of the Social
Security Act (42 U.S.C. 1320b–21); and
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‘‘(IV) medical assistance under other
federally funded programs; and
‘‘(iv) for individuals entitled to benefits
under title II or XVI of the Social Security Act
(42 U.S.C. 401 et seq., 1381 et seq.) on the basis
of a disability or blindness and eligible for as-
sistance under the Ticket to Work and Self-Suffi-
ciency Program established under section 1148 of
the Social Security Act (42 U.S.C. 1320b–19),
information—
‘‘(I) on the options under the Ticket to
Work and Self-Sufficiency Program; and
‘‘(II) on how to contact the program
manager of the Ticket to Work and Self-
Sufficiency Program who has contact infor-
mation on approved employment networks,
the benefits planning and assistance pro-
grams in the area, and the protection and
advocacy programs in the area.’’;
(B) in paragraph (2)(E)—
(i) in clause (i)(II), by striking ‘‘and’’
after the semicolon;
(ii) in clause (ii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
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(iii) by adding at the end the fol-
lowing:
‘‘(iii) amended, as necessary, to in-
clude the post-employment services and
service providers that are necessary for the
individual to maintain, regain, or advance
in employment, consistent with the individ-
ual’s strengths, resources, priorities, con-
cerns, abilities, capabilities, interests, and
informed choice.’’; and
(C) in paragraph (3)—
(i) in subparagraph (B)(i)(I), by strik-
ing ‘‘and personal assistance services’’ and
inserting ‘‘mentoring services, and personal
assistance services’’;
(ii) in subparagraph (F)(ii), by strik-
ing ‘‘and’’ after the semicolon;
(iii) in subparagraph (G), by striking
the period at the end and inserting a semi-
colon; and
(iv) by adding at the end the following:
‘‘(H) for a student with a disability, the
description—
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‘‘(i) in paragraph (3)(A), may be a de-
scription of the student’s projected post-
school employment outcome; and
‘‘(ii) in paragraph (3)(B), shall in-
clude the specific transition services (includ-
ing, as appropriate, work experience and
mentoring activities) needed to achieve the
student’s employment outcome or projected
employment outcome; and
‘‘(I) for an individual who is receiving as-
sistance under the Ticket to Work and Self-Suffi-
ciency Program established under section 1148 of
the Social Security Act (42 U.S.C. 1320b–19), a
list of services such individual receives from an
employment network other than the designated
State unit.’’; and
(2) in subsection (c)(7), by inserting ‘‘that take
into consideration the informed choice of the indi-
vidual,’’ after ‘‘plan development,’’.
SEC. 414. VOCATIONAL REHABILITATION SERVICES.
Section 103(a) of the Rehabilitation Act of 1973 (29
U.S.C. 723(a)) is amended—
(1) in paragraph (5), by inserting ‘‘literacy serv-
ices,’’ after ‘‘vocational adjustment services,’’;
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(2) in paragraph (17), by striking ‘‘and’’ after
the semicolon;
(3) in paragraph (18), by striking the period at
the end and inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(19) mentoring services.’’.
SEC. 415. STATE REHABILITATION COUNCIL.
Section 105(b) of the Rehabilitation Act of 1973 (29
U.S.C. 725(b)) is amended—
(1) in paragraph (1)(A), by striking clause (ix)
and inserting the following:
‘‘(ix) in a State in which 1 or more
projects provide services under section 121,
not less than 1 representative of the direc-
tors of the projects;’’; and
(2) by striking paragraph (5) and inserting the
following:
‘‘(5) CHAIRPERSON.—The Council shall select a
chairperson from among the voting membership of the
Council.’’.
SEC. 416. EVALUATION STANDARDS AND PERFORMANCE IN-
DICATORS.
Section 106(b)(2)(B)(i) of the Rehabilitation Act of
1973 (29 U.S.C. 726(b)(2)(B)(i)) is amended by striking
‘‘, if necessary’’ and all that follows through the semicolon
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and inserting ‘‘if the State has not improved its perform-
ance to acceptable levels, as determined by the Commis-
sioner, direct the State to make further revisions to the plan
to improve performance, which may include allocating a
higher proportion of the State’s resources for services to in-
dividuals with disabilities if the State’s spending on such
services is low in comparison to spending on such services
in comparable agencies in other States;’’.
SEC. 417. STATE ALLOTMENTS.
Section 110 of the Rehabilitation Act of 1973 (29
U.S.C. 730) is amended—
(1) by striking subsection (b) and inserting the
following:
‘‘(b) REALLOTMENT.—
‘‘(1) DETERMINATION.—Not later than 45 days
prior to the end of the fiscal year, the Commissioner
shall determine, after reasonable opportunity for the
submission to the Commissioner of comments by the
State agency administering or supervising the pro-
gram established under this title, that any payment
of an allotment to a State under section 111(a) for
any fiscal year will not be utilized by such State in
carrying out the purposes of this title.
‘‘(2) FORMULA.—
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services in accordance with this section. The amount of such
grants shall be the same amount as provided to territories
under subparagraph (B), as increased under clauses (i) and
(ii) of subparagraph (D).
‘‘(ii) In this subparagraph:
‘‘(I) The term ‘American Indian Consortium’
has the meaning given the term in section 102 of the
Developmental Disabilities Assistance and Bill of
Rights Act of 2000 (42 U.S.C. 15002).
‘‘(II) The term ‘protection and advocacy system’
means a protection and advocacy system established
under subtitle C of title I of the Developmental Dis-
abilities Assistance and Bill of Rights Act of 2000 (42
U.S.C. 15041 et seq.).
‘‘(F) For any fiscal year for which the amount appro-
priated to carry out this section equals or exceeds
$14,000,000, the Secretary shall reserve not less than 1.8
percent and not more than 2.2 percent of such amount to
provide training and technical assistance to the programs
established under this section. Such training and technical
assistance shall be coordinated with activities provided
under section 509(c)(1)(A).’’;
(B) in paragraph (2)—
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(i) by striking ‘‘State’’ each place such
term appears and inserting ‘‘designated
agency’’; and
(ii) by striking ‘‘States’’ each place
such term appears and inserting ‘‘des-
ignated agencies’’; and
(C) in paragraph (3), by striking ‘‘Except
as specifically prohibited by or as otherwise pro-
vided in State law, the Secretary shall pay’’ and
inserting ‘‘The Secretary shall pay directly’’;
(3) in subsection (f), by striking ‘‘State’’ and in-
serting ‘‘agency designated under subsection (c)’’; and
(4) in subsection (h), by striking ‘‘fiscal years
1999 through 2003’’ and inserting ‘‘fiscal years 2004
through 2009’’.
SEC. 419. INCENTIVE GRANTS.
Part B of title I of the Rehabilitation Act of 1973 (29
U.S.C. 730 et seq.) is amended by adding at the end the
following:
‘‘SEC. 113. INCENTIVE GRANTS.
‘‘(a) AUTHORITY.—The Commissioner is authorized to
make incentive grants to States that, based on the criteria
established under subsection (b)(1), demonstrate—
‘‘(1) a high level of performance; or